Company: ZNOG
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001437749-25-025943
Chunk: 9

Company: ZION OIL & GAS INC
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 3
Chunk 9
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 excess cash in short-term bank deposits and money market funds that may invest in high quality debt instruments.

ITEM 4. CONTROLS AND PROCEDURES

We maintain disclosure controls and procedures designed to ensure that information required to be disclosed in the reports that we file or submit under the Securities Exchange Act of 1934, is recorded, processed, summarized and reported within the time period specified in the SEC’s rules and forms. As of June 30, 2025, our chief executive officer and our chief financial officer conducted an evaluation of the effectiveness of our disclosure controls and procedures. Based on this evaluation, our chief executive officer and our chief financial officer concluded that our disclosure controls and procedures were not effective as of June 30, 2025, due to a significant deficiency in our controls and procedures related solely to the prohibited advance by the Company of a hardship loan to an officer referred to in Note 2G of the financial statements accompanying this report. The chief executive officer and the chief financial officer intend to consult with an external advisor to take steps to avoid any future recurrence of a prohibited action.

Changes in Internal Control over Financial Reporting

There were no changes in internal controls over financial reporting that occurred during the quarter ended June 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

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PART II—OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Litigation

From time to time, the Company may be subject to routine litigation, claims or disputes in the ordinary course of business. The Company defends itself vigorously in all such matters. However, we cannot predict the outcome or effect of any of the potential litigation, claims or disputes.

On June 3, 2025, the Company received a notification via summons that it is being sued in the Superior Court of California, County of Los Angeles under the state’s “Trap and Trace” law.  The company has retained counsel in the state of California and this case is ongoing.  No recognition of legal expenses has been made in 2025, but the company has made an immaterial prepayment to our outside legal firm. Our outside counsel in California advises that the California courts are backlogged with similar cases and that a resolution to our case is not expected for months.  However, we believe we have a strong case based on the facts.

ITEM 1A. RISK FACTORS

During the quarter ended June 30, 2025