2022 Q4 Form 10-Q Financial Statement

#000121390022071229 Filed on November 10, 2022

View on sec.gov

Income Statement

Concept 2022 Q4 2022 Q3 2021 Q3
Revenue $0.00 $0.00 $0.00
YoY Change
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $2.338M $2.355M $2.298M
YoY Change 29.6% 2.48% 35.02%
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $201.0K $201.0K $188.0K
YoY Change 7.49% 6.91% 1780.0%
% of Gross Profit
Operating Expenses $2.338M $2.355M $2.298M
YoY Change 29.6% 2.48% 35.02%
Operating Profit -$2.355M -$2.298M
YoY Change 2.48%
Interest Expense $13.00K -$17.00K -$5.000K
YoY Change 550.0% 240.0% -94.68%
% of Operating Profit
Other Income/Expense, Net -$17.00K
YoY Change
Pretax Income -$47.94M -$2.374M -$2.303M
YoY Change 2560.38% 3.08% 28.23%
Income Tax $0.00 $0.00
% Of Pretax Income
Net Earnings -$47.94M -$2.374M -$2.303M
YoY Change 2560.38% 3.08% 28.23%
Net Earnings / Revenue
Basic Earnings Per Share -$0.01 -$0.01
Diluted Earnings Per Share -$0.09 -$0.01 -$8.041K
COMMON SHARES
Basic Shares Outstanding 514.6M shares 475.2M shares 286.4M shares
Diluted Shares Outstanding 484.7M shares 286.4M shares

Balance Sheet

Concept 2022 Q4 2022 Q3 2021 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.735M $3.079M $4.564M
YoY Change -62.95% -32.54% -75.49%
Cash & Equivalents $1.735M $3.079M $4.564M
Short-Term Investments
Other Short-Term Assets $483.0K $544.0K $2.337M
YoY Change -21.72% -76.72% -29.88%
Inventory
Prepaid Expenses
Receivables
Other Receivables $143.0K
Total Short-Term Assets $4.607M $6.067M $9.050M
YoY Change -46.68% -32.96% -58.85%
LONG-TERM ASSETS
Property, Plant & Equipment $112.0K $123.0K $46.92M
YoY Change -18.84% -99.74% 279.7%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $424.0K $410.0K $503.0K
YoY Change -21.63% -18.49% -90.02%
Total Long-Term Assets $22.91M $66.42M $47.43M
YoY Change -58.19% 40.04% 172.61%
TOTAL ASSETS
Total Short-Term Assets $4.607M $6.067M $9.050M
Total Long-Term Assets $22.91M $66.42M $47.43M
Total Assets $27.52M $72.48M $56.48M
YoY Change -56.62% 28.34% 43.37%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.147M $1.786M $2.212M
YoY Change -22.85% -19.26% 1240.61%
Accrued Expenses $1.032M $1.544M $1.866M
YoY Change -42.06% -17.26% 101.73%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00
YoY Change -100.0%
Total Short-Term Liabilities $3.946M $4.128M $4.649M
YoY Change -26.08% -11.21% -1.46%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $469.0K $488.0K $717.0K
YoY Change -34.59% -31.94% -6.76%
Total Long-Term Liabilities $469.0K $488.0K $717.0K
YoY Change -34.59% -31.94% -6.76%
TOTAL LIABILITIES
Total Short-Term Liabilities $3.946M $4.128M $4.649M
Total Long-Term Liabilities $469.0K $488.0K $717.0K
Total Liabilities $4.415M $4.616M $5.366M
YoY Change -27.09% -13.98% -2.21%
SHAREHOLDERS EQUITY
Retained Earnings -$278.6M -$230.7M
YoY Change 24.64%
Common Stock $301.7M $298.5M
YoY Change 7.41%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $23.10M $67.87M $51.11M
YoY Change
Total Liabilities & Shareholders Equity $27.52M $72.48M $56.48M
YoY Change -56.62% 28.34% 43.37%

Cashflow Statement

Concept 2022 Q4 2022 Q3 2021 Q3
OPERATING ACTIVITIES
Net Income -$47.94M -$2.374M -$2.303M
YoY Change 2560.38% 3.08% 28.23%
Depreciation, Depletion And Amortization $201.0K $201.0K $188.0K
YoY Change 7.49% 6.91% 1780.0%
Cash From Operating Activities -$985.0K -$1.295M -$1.922M
YoY Change 6.49% -32.62% -12.24%
INVESTING ACTIVITIES
Capital Expenditures $27.00K -$29.00K -$20.00K
YoY Change -140.3% 45.0% -37.5%
Acquisitions
YoY Change
Other Investing Activities -$2.907M -$4.856M -$6.934M
YoY Change -58.21% -29.97% 1858.76%
Cash From Investing Activities -$2.934M -$4.885M -$6.954M
YoY Change -58.23% -29.75% 1701.55%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $4.383M
YoY Change -66.33%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 2.660M 3.479M 4.383M
YoY Change -67.03% -20.63% -66.32%
NET CHANGE
Cash From Operating Activities -985.0K -1.295M -1.922M
Cash From Investing Activities -2.934M -4.885M -6.954M
Cash From Financing Activities 2.660M 3.479M 4.383M
Net Change In Cash -1.259M -2.701M -4.493M
YoY Change -1157.98% -39.88% -143.04%
FREE CASH FLOW
Cash From Operating Activities -$985.0K -$1.295M -$1.922M
Capital Expenditures $27.00K -$29.00K -$20.00K
Free Cash Flow -$1.012M -$1.266M -$1.902M
YoY Change 17.95% -33.44% -11.86%

Facts In Submission

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IncreaseDecreaseInAccruedLiabilities
-760000 usd
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-4719000 usd
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-4888000 usd
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
17000 usd
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
46000 usd
zn Payments To Investment In Unproved Oil And Gas Properties
PaymentsToInvestmentInUnprovedOilAndGasProperties
12943000 usd
zn Acquisition Of Drilling Rig And Related Equipment
AcquisitionOfDrillingRigAndRelatedEquipment
373000 usd
zn Acquisition Of Drilling Rig And Related Equipment
AcquisitionOfDrillingRigAndRelatedEquipment
115000 usd
zn Payments To Investment In Unproved Oil And Gas Properties
PaymentsToInvestmentInUnprovedOilAndGasProperties
21837000 usd
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-13333000 usd
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-21998000 usd
us-gaap Payments Of Stock Issuance Costs
PaymentsOfStockIssuanceCosts
115000 usd
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
3000 usd
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
15000 usd
us-gaap Proceeds From Issuance Of Warrants
ProceedsFromIssuanceOfWarrants
16470000 usd
us-gaap Proceeds From Issuance Of Warrants
ProceedsFromIssuanceOfWarrants
18157000 usd
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
16473000 usd
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
18057000 usd
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Excluding Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseExcludingExchangeRateEffect
-1579000 usd
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Excluding Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseExcludingExchangeRateEffect
-8829000 usd
CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
5952000 usd
CY2020Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
14662000 usd
CY2022Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
4373000 usd
CY2021Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
5833000 usd
zn Cost Of Options Issued To Employees Attributed To Oil And Gas Properties
CostOfOptionsIssuedToEmployeesAttributedToOilAndGasProperties
17000 usd
zn Convertible Bond Interest Paid In Shares
ConvertibleBondInterestPaidInShares
321000 usd
zn Convertible Bond Principal Paid In Shares
ConvertibleBondPrincipalPaidInShares
3214000 usd
us-gaap Noncash Or Part Noncash Acquisition Other Assets Acquired1
NoncashOrPartNoncashAcquisitionOtherAssetsAcquired1
2723000 usd
us-gaap Noncash Or Part Noncash Acquisition Other Assets Acquired1
NoncashOrPartNoncashAcquisitionOtherAssetsAcquired1
3114000 usd
zn Convertible Shares Related To Senior Convertible Bonds
ConvertibleSharesRelatedToSeniorConvertibleBonds
9000 usd
zn Capitalized Convertible Bond Interest Attributed To Oil And Gas Properties
CapitalizedConvertibleBondInterestAttributedToOilAndGasProperties
104000 usd
zn New Lease Accounted For As A Right Of Use Lease Asset
NewLeaseAccountedForAsARightOfUseLeaseAsset
136000 usd
zn New Lease Accounted For As A Right Of Use Lease Asset
NewLeaseAccountedForAsARightOfUseLeaseAsset
128000 usd
CY2022Q3 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
3079000 usd
CY2021Q4 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
4683000 usd
CY2021Q3 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
4564000 usd
CY2020Q4 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
11708000 usd
CY2022Q3 zn Restricted Cash Included In Fixed Shortterm Bank Deposits
RestrictedCashIncludedInFixedShorttermBankDeposits
1294000 usd
CY2021Q4 zn Restricted Cash Included In Fixed Shortterm Bank Deposits
RestrictedCashIncludedInFixedShorttermBankDeposits
1269000 usd
CY2021Q3 zn Restricted Cash Included In Fixed Shortterm Bank Deposits
RestrictedCashIncludedInFixedShorttermBankDeposits
1269000 usd
CY2020Q4 zn Restricted Cash Included In Fixed Shortterm Bank Deposits
RestrictedCashIncludedInFixedShorttermBankDeposits
2954000 usd
CY2022Q3 us-gaap Restricted Cash And Investments
RestrictedCashAndInvestments
4373000 usd
CY2021Q4 us-gaap Restricted Cash And Investments
RestrictedCashAndInvestments
5952000 usd
CY2021Q3 us-gaap Restricted Cash And Investments
RestrictedCashAndInvestments
5833000 usd
CY2020Q4 us-gaap Restricted Cash And Investments
RestrictedCashAndInvestments
14662000 usd
us-gaap Nature Of Operations
NatureOfOperations
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 1 - Nature of Operations, Basis of Presentation and Going Concern</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><b>A. Nature of Operations</b> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Zion Oil &amp; Gas, Inc., a Delaware corporation (“we,” “our,” “Zion” or the “Company”) is an oil and gas exploration company with a history of 22 years of oil &amp; gas exploration in Israel. As of September 30, 2022, the Company has no revenues from its oil and gas operations.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Zion maintains its corporate headquarters in Dallas, Texas. The Company also has branch offices in Caesarea, Israel and Geneva, Switzerland. The purpose of the Israel branch is to support the Company’s operations in Israel, and the purpose of the Switzerland branch is to operate a foreign treasury center for the Company.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 24, 2020, Zion incorporated a wholly owned subsidiary, Zion Drilling, Inc., a Delaware corporation, for the purpose of owning a drilling rig, related equipment and spare parts. On January 31, 2020, Zion incorporated another wholly owned subsidiary, Zion Drilling Services, Inc., a Delaware corporation, to act as the contractor providing such drilling services. When Zion is not using the rig for its own exploration activities, Zion Drilling Services may contract with other operators in Israel to provide drilling services at market rates then in effect.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Zion has the trademark “ZION DRILLING” filed with the United States Patent and Trademark Office. Zion has the trademark filed with the World Intellectual Property Organization in Geneva, Switzerland, pursuant to the Madrid Agreement and Protocol. In addition, Zion has the trademark filed with the Israeli Trademark Office in Israel.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><span style="text-decoration:underline">Exploration Rights/Exploration Activities</span></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Megiddo-Jezreel Petroleum License, No. 401 (“MJL 401”) and New Megiddo License 428 (“NML 428”)</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Megiddo-Jezreel License 401 was awarded on December 3, 2013 for a three-year primary term through December 2, 2016 with the possibility of additional one-year extensions up to a maximum of seven years or December 3, 2020. The Megiddo-Jezreel License 401 lies onshore, south and west of the Sea of Galilee, and we continue our exploration focus here based on our studies as it appears to possess the key geologic ingredients of an active petroleum system with significant exploration potential.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The NML 428 (covering the same area as MJL 401) was awarded on December 3, 2020 for a nine-month term with the possibility of an additional six-month extension. On April 29, 2021, Zion submitted a request to the Ministry of Energy for a six-month extension to December 2, 2021. On May 30, 2021, the Ministry of Energy approved our request for extension to December 2, 2021. On November 29, 2021, the Ministry of Energy approved our request for extension to August 1, 2022. On July 25, 2022, Zion submitted a request to the Ministry of Energy for a six-month extension to February 1, 2023. On July 31, 2022, the Ministry of Energy approved our request for extension to February 1, 2023. This license effectively replaced the Megiddo-Jezreel License 401 as it has the same area and coordinates.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Zion spudded its MJ-02 exploratory well on January 6, 2021. On November 23, 2021, Zion announced via a press release that it completed drilling the MJ-02 well to a total depth of 5,531 meters (~18,141 feet) with a 6 inch open hole at that depth.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A full set of detailed and comprehensive tests including neutron-density, sonic, gamma, and resistivity logs were acquired in December 2021, as a result of which we identified encouraging zones of interest.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the third quarter of 2022, Zion perforated and stimulated two deep zones.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 3, 2022, Zion sent a database email update to its supporters announcing the following: (1) We are encouraged by the results of our recent testing operations, especially the lower zone (approximately 20 meters in thickness), which is our primary zone of interest, (2) We are currently facing a downhole obstacle in the form of heavy water influx from the upper zone inhibiting the potential flow of hydrocarbons from the lower zone and (3) After consultation with outside experts, we plan to isolate and neutralize the heavy water influx by procuring a 4.5” packer and installing it below the heavy water zone and above our primary zone.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Zion suspended its operations at the MJ-02 pad site during October 2022 due to several Jewish holidays during the month. Beginning in early November 2022, Zion resumed its testing operations after procuring the necessary equipment and personnel.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><b>B. Basis of Presentation</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying unaudited interim consolidated condensed financial statements of Zion Oil &amp; Gas, Inc. have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with Article 8-03 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring accruals necessary for a fair statement of financial position, results of operations and cash flows, have been included. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the financial statements and the accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The year-end balance sheet data presented for comparative purposes was derived from audited financial statements, but does not include all disclosures required by GAAP. The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the operating results for the year ending December 31, 2022 or for any other subsequent interim period.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><b>C. Going Concern</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company incurs cash outflows from operations, and all exploration activities and overhead expenses to date have been financed by way of equity or debt financing. The recoverability of the costs incurred to date is uncertain and dependent upon achieving significant commercial production of hydrocarbons. </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company’s ability to continue as a going concern is dependent upon obtaining the necessary financing to undertake further exploration and development activities and ultimately generating profitable operations from its oil and natural gas interests in the future. The Company’s current operations are dependent upon the adequacy of its current assets to meet its current expenditure requirements and the accuracy of management’s estimates of those requirements. Should those estimates be materially incorrect, the Company’s ability to continue as a going concern may be impaired. The consolidated financial statements have been prepared on a going concern basis, which contemplates realization of assets and liquidation of liabilities in the ordinary course of business. During the nine months ended September 30, 2022, the Company incurred a net loss of approximately $7.1 million and had an accumulated deficit of approximately $230.7 million. These factors raise substantial doubt about the Company’s ability to continue as a going concern.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To carry out planned operations, the Company must raise additional funds through additional equity and/or debt issuances or through profitable operations. There can be no assurance that this capital or positive operational income will be available to the Company, and if it is not, the Company may be forced to curtail or cease exploration and development activities. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty </p>
us-gaap Intercompany Agreements Description
IntercompanyAgreementsDescription
(1) We are encouraged by the results of our recent testing operations, especially the lower zone (approximately 20 meters in thickness), which is our primary zone of interest, (2) We are currently facing a downhole obstacle in the form of heavy water influx from the upper zone inhibiting the potential flow of hydrocarbons from the lower zone and (3) After consultation with outside experts, we plan to isolate and neutralize the heavy water influx by procuring a 4.5” packer and installing it below the heavy water zone and above our primary zone.
zn Net Loss Attributable To Parent
NetLossAttributableToParent
7100000 usd
CY2022Q3 us-gaap Accumulated Amortization Deferred Finance Costs
AccumulatedAmortizationDeferredFinanceCosts
230700000 usd
CY2022Q3 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.01
CY2022Q3 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
53985877 shares
us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
41395169 shares
CY2022Q3 zn Common Stock Equivalents
CommonStockEquivalents
21810891 shares
zn Common Stock Equivalents
CommonStockEquivalents
17471772 shares
us-gaap Use Of Estimates
UseOfEstimates
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><b>B. Use of Estimates</b> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The preparation of the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of expenses. Such estimates include the valuation of unproved oil and gas properties, deferred tax assets, asset retirement obligations, borrowing rate of interest consideration for leases accounting and legal contingencies. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Illiquid credit markets, volatile equity, foreign currency, and energy markets have combined to increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the consolidated financial statements in future periods.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The full extent to which the COVID-19 pandemic may directly or indirectly impact our business, results of operations and financial condition, will depend on future developments that are uncertain, including as a result of new information that may emerge concerning COVID-19 and the actions taken to contain it or treat COVID-19, as well as the economic impact on local, regional, national and international markets. We have made estimates of the impact of COVID-19 within our consolidated financial statements, and although there is currently no major impact, there may be changes to those estimates in future periods. Actual results may differ from these estimates.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
us-gaap Costs Incurred Exploration Costs
CostsIncurredExplorationCosts
59169000 usd
CY2021 us-gaap Costs Incurred Exploration Costs
CostsIncurredExplorationCosts
46950000 usd
CY2020Q1 zn Remaining Amount Held In Escrow Deposit
RemainingAmountHeldInEscrowDeposit
250000 usd
CY2020Q1 us-gaap Supplemental Deferred Purchase Price
SupplementalDeferredPurchasePrice
4350000 usd
CY2020Q1 us-gaap Escrow Deposit
EscrowDeposit
1000000 usd
CY2020Q1 zn Purchase Price Of Drilling Ring
PurchasePriceOfDrillingRing
5600000 usd
CY2020Q1 zn Consumable Inventory
ConsumableInventory
540000 usd
CY2020Q1 us-gaap Other Inventories Spare Parts
OtherInventoriesSpareParts
48000 usd
us-gaap Finite Lived Intangible Asset Useful Life
FiniteLivedIntangibleAssetUsefulLife
P10Y
CY2021Q4 zn Drilling Rig Associatedand Equipment
DrillingRigAssociatedandEquipment
6834000 usd
zn Asset Additions
AssetAdditions
372000 usd
zn Asset Depreciation
AssetDepreciation
-560000 usd
zn Asset Disposals For Self Consumption
AssetDisposalsForSelfConsumption
-202000 usd
CY2022Q3 zn Drilling Rig Associatedand Equipment
DrillingRigAssociatedandEquipment
6444000 usd
CY2022Q3 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.01
CY2022Q3 zn Option To Purchase Shares Of Common Stock
OptionToPurchaseSharesOfCommonStock
25000 shares
CY2022Q3 zn Exercise Price Per Share
ExercisePricePerShare
0.235
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Terms Of Award
ShareBasedCompensationArrangementByShareBasedPaymentAwardTermsOfAward
August 1, 2032
zn Share Based Compensation Arrangement By Sharebased Payment Award Options Grants In Period Grant Date Fair Value
ShareBasedCompensationArrangementBySharebasedPaymentAwardOptionsGrantsInPeriodGrantDateFairValue
5000 usd
zn Unrecognized Compensation Cost
UnrecognizedCompensationCost
1354000 usd
CY2022Q3 us-gaap Origination Of Loan To Purchase Common Stock
OriginationOfLoanToPurchaseCommonStock
3477000 usd
us-gaap Origination Of Loan To Purchase Common Stock
OriginationOfLoanToPurchaseCommonStock
16470000 usd
CY2021Q3 us-gaap Origination Of Loan To Purchase Common Stock
OriginationOfLoanToPurchaseCommonStock
4369000 usd
us-gaap Origination Of Loan To Purchase Common Stock
OriginationOfLoanToPurchaseCommonStock
18157000 usd
CY2018Q2 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.01
CY2018Q2 zn Right Subscription Price Per Share
RightSubscriptionPricePerShare
5
CY2018Q2 us-gaap Class Of Warrant Or Right Exercise Price Of Warrants Or Rights1
ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1
3
CY2020Q2 us-gaap Class Of Warrant Or Right Exercise Price Of Warrants Or Rights1
ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1
3
CY2022Q2 srt Future Net Cash Flows Relating To Proved Oil And Gas Reserves Cash Inflows
FutureNetCashFlowsRelatingToProvedOilAndGasReservesCashInflows
364979 usd
CY2022Q3 us-gaap Restructuring Settlement And Impairment Provisions
RestructuringSettlementAndImpairmentProvisions
5350000 usd
CY2021Q3 us-gaap Restructuring Settlement And Impairment Provisions
RestructuringSettlementAndImpairmentProvisions
6727000 usd
us-gaap Restructuring Settlement And Impairment Provisions
RestructuringSettlementAndImpairmentProvisions
10666000 usd
us-gaap Restructuring Settlement And Impairment Provisions
RestructuringSettlementAndImpairmentProvisions
21319000 usd
CY2022Q3 zn Capitalized Salary Costs Unproved Properties
CapitalizedSalaryCostsUnprovedProperties
30000 usd
CY2021Q3 zn Capitalized Salary Costs Unproved Properties
CapitalizedSalaryCostsUnprovedProperties
38000 usd
zn Capitalized Salary Costs Unproved Properties
CapitalizedSalaryCostsUnprovedProperties
151000 usd
zn Capitalized Salary Costs Unproved Properties
CapitalizedSalaryCostsUnprovedProperties
155000 usd
us-gaap Interest Costs Capitalized
InterestCostsCapitalized
104000 usd
CY2022Q3 zn Legal And Seismic Costs License Fees And Other Preparation Costs
LegalAndSeismicCostsLicenseFeesAndOtherPreparationCosts
586000 usd
CY2021Q3 zn Legal And Seismic Costs License Fees And Other Preparation Costs
LegalAndSeismicCostsLicenseFeesAndOtherPreparationCosts
573000 usd
zn Legal And Seismic Costs License Fees And Other Preparation Costs
LegalAndSeismicCostsLicenseFeesAndOtherPreparationCosts
1402000 usd
zn Legal And Seismic Costs License Fees And Other Preparation Costs
LegalAndSeismicCostsLicenseFeesAndOtherPreparationCosts
2335000 usd
CY2022Q3 zn Inclusive Non Cash Amount
InclusiveNonCashAmount
1032000 usd
CY2021Q3 zn Inclusive Non Cash Amount
InclusiveNonCashAmount
316000 usd
zn Inclusive Non Cash Amount
InclusiveNonCashAmount
2740000 usd
zn Inclusive Non Cash Amount
InclusiveNonCashAmount
3218000 usd
CY2022Q3 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P1Y29D
CY2022Q3 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.039 pure
CY2022Q3 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
70000 usd
CY2022Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
199000 usd
CY2022Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
12000 usd
CY2022Q3 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
281000 usd
CY2022Q3 zn Lessee Operating Lease Liability Portion Representing Imputed Interest
LesseeOperatingLeaseLiabilityPortionRepresentingImputedInterest
7000 usd
CY2022Q3 us-gaap Operating Lease Liability
OperatingLeaseLiability
274000 usd
CY2022Q3 us-gaap Operating Lease Cost
OperatingLeaseCost
69000 usd
us-gaap Operating Lease Cost
OperatingLeaseCost
206000 usd
CY2021Q3 us-gaap Operating Lease Cost
OperatingLeaseCost
68000 usd
us-gaap Operating Lease Cost
OperatingLeaseCost
196000 usd
CY2022Q3 us-gaap Operating Lease Payments
OperatingLeasePayments
71000 usd
us-gaap Operating Lease Payments
OperatingLeasePayments
214000 usd
CY2021Q3 us-gaap Operating Lease Payments
OperatingLeasePayments
72000 usd
us-gaap Operating Lease Payments
OperatingLeasePayments
215000 usd
us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
136000 usd
us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
128000 usd
CY2022Q3 zn Bank Guarantee To Government
BankGuaranteeToGovernment
1218000 usd
CY2022Q3 zn Bank Guarantees To Other
BankGuaranteesToOther
63000 usd
CY2022Q3 us-gaap Other Commitment
OtherCommitment
1281000 usd
us-gaap Foreign Currency Transactions Description
ForeignCurrencyTransactionsDescription
A portion of our expenses, primarily labor expenses and certain supplier contracts, are denominated in New Israeli Shekels (“NIS”). As a result, we have significant exposure to the risk of fluctuating exchange rates with the U.S. Dollar (“USD”), our primary reporting currency. During the period January 1, 2022 through September 30, 2022, the USD has fluctuated by approximately 13.9% against the NIS (the USD strengthened relative to the NIS). By contrast, during the period January 1, 2021 through December 31, 2021, the USD fluctuated by approximately 3.3% against the NIS (the USD weakened relative to the NIS). Continued strengthening of the US dollar against the NIS will result in lower operating costs from NIS denominated expenses. To date, we have not hedged any of our currency exchange rate risks, but we may do so in the future.
CY2022Q3 us-gaap Cash Cash Equivalents And Short Term Investments
CashCashEquivalentsAndShortTermInvestments
4373000 usd
us-gaap Subsequent Event Description
SubsequentEventDescription
$2,235,000
CY2022Q3 us-gaap Commitments And Contingencies
CommitmentsAndContingencies
usd
CY2022Q3 us-gaap Impairment Of Oil And Gas Properties
ImpairmentOfOilAndGasProperties
usd
CY2022Q3 zn Gainloss On Derivative Liability
GainlossOnDerivativeLiability
usd
zn Gainloss On Derivative Liability
GainlossOnDerivativeLiability
usd
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.02
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
454890000 shares
us-gaap Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
usd
us-gaap Derivative Gain Loss On Derivative Net
DerivativeGainLossOnDerivativeNet
usd
us-gaap Payments Of Stock Issuance Costs
PaymentsOfStockIssuanceCosts
usd
zn Cost Of Options Issued To Employees Attributed To Oil And Gas Properties
CostOfOptionsIssuedToEmployeesAttributedToOilAndGasProperties
usd
zn Convertible Bond Interest Paid In Shares
ConvertibleBondInterestPaidInShares
usd
zn Convertible Bond Principal Paid In Shares
ConvertibleBondPrincipalPaidInShares
usd
zn Convertible Shares Related To Senior Convertible Bonds
ConvertibleSharesRelatedToSeniorConvertibleBonds
usd
zn Capitalized Convertible Bond Interest Attributed To Oil And Gas Properties
CapitalizedConvertibleBondInterestAttributedToOilAndGasProperties
usd
CY2022Q3 us-gaap Capitalized Costs Of Unproved Properties Excluded From Amortization
CapitalizedCostsOfUnprovedPropertiesExcludedFromAmortization
usd
CY2021Q3 us-gaap Capitalized Costs Of Unproved Properties Excluded From Amortization
CapitalizedCostsOfUnprovedPropertiesExcludedFromAmortization
usd
us-gaap Capitalized Costs Of Unproved Properties Excluded From Amortization
CapitalizedCostsOfUnprovedPropertiesExcludedFromAmortization
usd
us-gaap Capitalized Costs Of Unproved Properties Excluded From Amortization
CapitalizedCostsOfUnprovedPropertiesExcludedFromAmortization
usd
CY2022Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Four
LesseeOperatingLeaseLiabilityPaymentsDueYearFour
usd
CY2022Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Five
LesseeOperatingLeaseLiabilityPaymentsDueYearFive
usd
CY2022Q3 us-gaap Lessee Operating Lease Liability Payments Due After Year Five
LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive
usd
CY2022Q3 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
usd
CY2021Q3 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
usd
zn License Cost
LicenseCost
usd
CY2021 zn License Cost
LicenseCost
usd
dei Amendment Flag
AmendmentFlag
false
dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q3
dei Entity Central Index Key
EntityCentralIndexKey
0001131312
dei Entity File Number
EntityFileNumber
001-33228

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