v3.26.1
Note 7 - Operating Segments
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

Note 7 - Operating Segments

 

The Company has one operating segment and its Chief Operating Decision Maker (“CODM”) is its CEO.  Consistent with its mission and vision, the Company explores for hydrocarbons in onshore Israel. The CODM manages exploration activities considering the following areas, at a minimum: (1) geological prospects within its license area and related feasibility to produce hydrocarbons, (2) the regulatory, administrative and political climate in Israel, (3) competition in Israel, (4) equipment and labor sourcing and (5) operational financing.

 

Within unproved oil and gas properties costs, the CODM monitors the costs of permitting and regulatory compliance, logistics and supply chain considerations associated with importation of labor and equipment, including managing the amounts and timing of prepayments to international service providers. The CODM works closely with its vice president of operations and CFO on capital expenditures to ensure adequate capital is available when needed.

 

Within our Statement of Operations, the Company has two primary categories of expenses: (1) “General and Administrative” costs, which consists primarily of salaries, payroll taxes and benefits, and a broad range of non-compensation related expenses, including fees for directors, accounting, legal , as well as other professional fees, and (2) "Other Operating expenses" category which includes costs for various lines of insurance, information technology services, investor relations activities, office facilities, depreciation and annual meeting expenses.  Zion has had very low employee turnover in recent years and our CODM monitors the salaries paid to its existing workforce.  Additionally, the CODM is the decision maker in its annual insurance renewals for directors and officers, cybersecurity, rig and third-party liability insurance, both in Dallas and in Israel.

 

General and Administrative expenses and Other Operating expenses, are comprised as follows:

 

  

For the Three Months Ended

  

For the Six Months Ended

 
  

June 30,

  

June 30,

 
  

2026

  

2025

  

2026

  

2025

 
  

US$

  

US$

  

US$

  

US$

 

General and administrative expenses

 

thousands

  

thousands

  

thousands

  

thousands

 

Salaries and wages

  675   661   1,428   1,317 

Payroll taxes

  111   122   234   238 

Employee Benefits

  128   124   268   248 

Legal and professional Fees

  83   71   403   144 

Accounting Fees

  69   65   136   138 

Director's Fees

  54   58   112   117 

Total General and administrative expenses

  1,120   1,101   2,581   2,202 
                 

Other Operating expenses

                

Depreciation

  264   179   504   363 

IT and maintenance

  160   125   306   287 

Annual meeting

  238   306   238   306 

Office facilities and rent

  100   85   200   153 

Insurance

  87   105   192   227 

Other

  91   95   161   158 

Total Other Operating expenses

  940   895   1,601   1,494