Icon Energy Limited Annual Report 2022

Notes to the Consolidated Financial Statements for the year ended 30 June 2022 ICON ENERGY LIMITED AND ITS CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2022 NOTE 1 - BASIS OF ACCOUNTING - - - - - - - - - - - The $4m seismic program will be funded through a capital raising, Farmee contribution or debt financing expected around March April 2023. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS The consolidated financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards (including Australian Accounting Interpretations) and other authorative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. The consolidated financial statements have been prepared on a going concern basis which contemplates the realisation of assets and settlement of liabilities in the ordinary course of business. The financial statements cover Icon Energy Limited (the "Company") and its controlled entities as a Consolidated Entity (together referred to as the "Consolidated Entity" or the "Group"). Icon Energy Limited is a listed public company, incorporated and domiciled in Australia. The Group is a for-profit entity, primarily engaged in the acquisiton, exploration and development of oil and gas assets in Australia. The financial statements have been prepared on the historical cost basis. All amounts are presented in Australian dollars, unless otherwise noted. This is also the functional currency of the parent. The financial statements of Icon Energy Limited and its controlled entities comply with all International Financial Reporting Standards (IFRS) and interpretations adopted by the International Accounting Standards Board. As at the date of this report, the Group has not secured a joint venturer for any of its tenements. Authority to Prospect (ATP 855) expires on 31 October 2022. An application for renewal will be made on 4 October 2022 , the directors expect that ATP 855 will be renewed. The financial report and director’s cashflow forecast for the period 1 July 2022 to 30 September 2023 are based on the key assumption that the Group succeds in renewing ATP 855. The Company made a Rights Issue Offer as announced on 29 November 2021 with the closing date of 5 January 2022 and received valid acceptances to issue 97,150,302 ordinary shares at an issue price of $0.01 per share raising $971,503. The Rights Issue also included a listed bonus option for every share taken up at $0.05 per share expiring on 12 September 2022. 12,750 listed options were progressively exercised during the year and 13,243,677 listed options were exercised after the 30 June 2022 but before the expiry date of 12 September 2022. Option conversion raised a total of $662,821.35. $616,000 Directors Fees and Employees Salaries; $707,000 corporate administration costs; and $4,000,000 300 km2 of new 3D seismic acquisition in ATP 855. The cashflow forecast for the period is based on the following key assumptions: the Group being successful in its renewal application in respect to ATP 855 which will be submitted on 4 October 2022 ; and the Group not being required to perform any significant rehabilitation work in respect to its recent surrender of ATP 594. In adopting the cashflow forecast, the Directors are confident of : complying with all the necessary requirements under the Petroleum and Gas (Production and Safety) Act 2004 for the successful renewal of ATP 855, with no significant additional expenditure being required above that currently budgeted in the cashflow forecast period; and no significant expenditure being required for the above matters in respect to the surrender of ATP 594. The Group has cash of $1,845,450 at 30 June 2022 and used $1,121,841 of cash in operations for the year ended 30 June 2022. On 29 September 2021, the Company made a placement to sophisticated investors of 60,000,000 ordinary shares at an issue price of $0.01 per share raising $600,000. At 30 June 2022, the Group’s current assets exceed its current liabilities by $1,703,000. Included in non-current liabilities are restoration provisions of $5,031,976 whilst the corresponding exploration and evaluation assets, totaling $4,296,230 are recorded as non-current assets. The Group has a surplus in net assets of $1,781,068 (30 June 2021: $1,775,870) at 30 June 2022. During the financial period ended 30 June 2022 and/or subsequent to year end, the Group implemented the following working capital management steps: $764,000 care and maintenance costs in respect to ATP 855; Going concern The Directors have prepared a cash flow forecast for the period from 1 July 2022 to 30 September 2023 based on the following expenditure: Icon Energy Annual Report 2022 41