Note 6 - Commitments and Contingencies A. Litigat
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Posted On: 05/09/2024 2:55:02 AM
Note 6 - Commitments and Contingencies
A. 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.
The Company is not subject to any litigation at the present time.
Note 7 - Subsequent Events
(i) Approximately $1,959,000 was collected through the Company’s DSPP program during the period April 1 through May 7, 2024 .
Israel-Hamas War
On October 7, 2023, Hamas, a militant terrorist organization in Gaza, infiltrated southern Israel, killing and injuring at least one thousand Israeli citizens. Roughly 250 Israeli hostages were then taken back to Gaza. This unprovoked attack led the nation of Israel to declare war on Hamas approximately one week later. As of the date of this report, Israel remains at war and there are daily battles inside the Gaza strip. Israel’s stated goals are to completely dismantle the terror infrastructure of Gaza, including its extensive tunnel network and to bring back safely all of the hostages.
There is uncertainty as to how long the war inside the Gaza strip will last and whether the war will expand to other hostile parties in the region. While we acknowledge that uncertainty and its potential adverse effects on Zion’s business, the Company is moving forward with its planning and logistics activities. We are working with our international service providers on projected availability timelines and other details. All of these key vendors have expressed willingness to assist Zion in its exploration activities. It is important to note that Zion’s license area is not located near any current combat zones.
Revenue. We currently have no revenue generating operations.
Operating costs and expenses. Operating costs and expenses for the three months ended March 31, 2024 were $1,774,000 compared to $2,131,000 for the three months ended March 31, 2023.
General and administrative expenses. General and administrative expenses for the three months ended March 31, 2024 were $1,175,000, compared to $1,503,000 for the three months ended March 31, 2023. This is a variance of $328,000 or 28%. The decrease in General and administrative expenses during the three months ended March 31, 2024 is primarily attributable to lower non-cash expenses recorded in connection with stock option grants.
Other expense. Other expense during the three months ended March 31, 2024 was $599,000 compared to $583,000 for the three months ended March 31, 2023. This is a variance of $16,000 or 3%. Other general and administrative expenses are comprised of non-compensation and non-professional expenses incurred. The increase in other expenses is an immaterial difference compared to 2023.
A. 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.
The Company is not subject to any litigation at the present time.
Note 7 - Subsequent Events
(i) Approximately $1,959,000 was collected through the Company’s DSPP program during the period April 1 through May 7, 2024 .
Israel-Hamas War
On October 7, 2023, Hamas, a militant terrorist organization in Gaza, infiltrated southern Israel, killing and injuring at least one thousand Israeli citizens. Roughly 250 Israeli hostages were then taken back to Gaza. This unprovoked attack led the nation of Israel to declare war on Hamas approximately one week later. As of the date of this report, Israel remains at war and there are daily battles inside the Gaza strip. Israel’s stated goals are to completely dismantle the terror infrastructure of Gaza, including its extensive tunnel network and to bring back safely all of the hostages.
There is uncertainty as to how long the war inside the Gaza strip will last and whether the war will expand to other hostile parties in the region. While we acknowledge that uncertainty and its potential adverse effects on Zion’s business, the Company is moving forward with its planning and logistics activities. We are working with our international service providers on projected availability timelines and other details. All of these key vendors have expressed willingness to assist Zion in its exploration activities. It is important to note that Zion’s license area is not located near any current combat zones.
Revenue. We currently have no revenue generating operations.
Operating costs and expenses. Operating costs and expenses for the three months ended March 31, 2024 were $1,774,000 compared to $2,131,000 for the three months ended March 31, 2023.
General and administrative expenses. General and administrative expenses for the three months ended March 31, 2024 were $1,175,000, compared to $1,503,000 for the three months ended March 31, 2023. This is a variance of $328,000 or 28%. The decrease in General and administrative expenses during the three months ended March 31, 2024 is primarily attributable to lower non-cash expenses recorded in connection with stock option grants.
Other expense. Other expense during the three months ended March 31, 2024 was $599,000 compared to $583,000 for the three months ended March 31, 2023. This is a variance of $16,000 or 3%. Other general and administrative expenses are comprised of non-compensation and non-professional expenses incurred. The increase in other expenses is an immaterial difference compared to 2023.
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