Icon Energy Limited Annual Report 2023

Notes to the Consolidated Financial Statements for the year ended 30 June 2023 48 Icon Energy Annual Report 2023 ICON ENERGY LIMITED AND ITS CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2023 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 2023 30 June 2022 $ $ Interest received 40,726 1,948 40,726 1,948 Proceeds on disposal of inventory 5,535 40,043 Written down value of inventory - (18,965) 5,535 21,078 Superannuation 21,034 18,590 Audit and review of financial statements - Crowe 64,700 56,900 NOTE 3 - INCOME TAX EXPENSE (5,537,787) (1,468,076) Prima facie tax payable on loss before income tax at 30% (2022: 30%) (1,661,336) (440,423) Increase/(decrease) in income tax expense due to: - 341 1,661,336 440,082 - - 68,061,959 66,295,776 20,418,588 19,888,733 66,971 67,796 4,851,736 5,225,154 1,867,314 - 2,035,806 1,587,885 22,454,394 21,476,618 (1,867,314) 2,231,698 1,867,314 - - 669,509 22,454,394 20,807,109 CONSOLIDATED ENTITY Loss before tax expense c. Other expenses The end of year financial statements do not include any adjustment relating to the recoverability or classification of recorded asset amounts or to the amounts or classification of liabilities that may be necessary should the Company not be able to continue as a going concern. If any of these critical assumptions are incorrect, then there is material uncertainty whether the Group will continue as a going concern and therefore whether it will realise its assets and discharge its liabilities in the normal course of business and at the amounts stated in the financial statements. the Department of Resources nor the Department of Environment & Science will not seek commencement of outstanding decommissioning or rehabilitation requirements in respect to ATP 855 prior to the outcome of the JR Application being known; the likelihood of a successful outcome of the JR Application is no lower than 50%; Income Tax attributable to loss before tax a. Other income Total deferred tax assets not brought to account - net 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. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Deferred tax benefits not brought to account b. Gain on sale of current assets Total deferred tax liabilities not brought to account Deferred Tax Liabilities Non deductible expenses Tax losses Potential tax benefit Provisions Total deferred tax benefits not brought to account Potential tax benefit In preparing the end of year financial statements on the going concern basis the critical assumptions used by the directors are: being able to meet all the necessary requirements as prescribed by the Petroleum and Gas (Production and Safety) Act 2004 for a successful outcome in respect to the Renewal Application; the management of cash through tight control of administrative expenses. Transfer to Deferred Tax Asset Transfer to Deferred Tax Asset Mining and exploration costs Temporary differences Other