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 (Continued) NOTE 2 - LOSS FROM OPERATING ACTIVITIES Loss from operating activities before income tax includes the following items 30 June 2022 30 June 2021 $ $ Interest received 1,948 13,067 Government grant income (COVID-19 cash flow boost) - 50,000 Insurance refund received - 40,676 Other income - 10,000 1,948 113,744 Proceeds on disposal of inventory 40,043 - Written down value of inventory (18,965) - Cost of sale - - 21,078 - Impairment of exploration expenditure - 1,662,567 Impairment of exploration asset - 4,144,990 - 5,807,557 Superannuation 18,590 16,771 Audit and review of financial statements - Crowe 56,900 60,000 NOTE 3 - INCOME TAX EXPENSE (1,468,076) (6,919,302) Prima facie tax payable on loss before income tax at 30% (2020: 30%) (440,423) (2,075,791) Increase/(decrease) in income tax expense due to: 341 87 - (15,000) - 12,172 440,082 2,078,532 - - 66,295,776 65,160,006 19,888,733 19,548,002 67,796 42,122 5,225,154 4,589,232 1,587,885 1,389,406 21,476,618 20,937,407 2,231,698 3,614,558 669,509 1,084,367 20,807,109 19,853,041 Loss before tax expense Details of Icon Energy Limited accounting policies are included in Note 23. The deductible temporary differences and tax losses do not expire under current tax legislation. Deferred tax assets have not been recognised in respect of these items because it is not probable that future taxable profit will be available against which the Group can utilise the tax benefits. The matters detailed above indicate a material uncertainty which may cast significant doubt over the Group’s ability to continue as a going concern, and therefore whether the Group will realise its assets and settle its liabilities in the ordinary course of business at the amounts recorded in the financial statements. The financial statements do not include any adjustments relating to the recoverability and classification of assets carrying amount or the amount of liabilities that might result should the Group be unable to continue as a going concern and meet its debts as and when they fall due. The Group’s ability to carry out its business plan will be dependent upon the Group being successful with its renewal of ATP 855, and subsequently being able to fund its planned $4m seismic program. Non-assessable income Under/(over) provision in prior year The financial report was authorised for issue by the Board of Directors on 30 September 2022. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Deferred tax benefits not brought to account c. Impairment expense CONSOLIDATED ENTITY Income Tax attributable to loss before tax a. Other income Total deferred tax assets not brought to account - net Mining and exploration costs b. Gain on sale of current assets Total deferred tax liabilities not brought to account Temporary differences Deferred Tax Liabilities Non deductible expenses Tax losses Potential tax benefit Provisions d. Other expenses Total deferred tax benefits not brought to account Potential tax benefit Other 42 Icon Energy Annual Report 2022