Icon Energy Limited Annual Report 2023

Notes to the Consolidated Financial Statements for the year ended 30 June 2023 50 Icon Energy Annual Report 2023 ICON ENERGY LIMITED AND ITS CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2023 30 June 2023 30 June 2022 $ $ - 4,296,230 4,296,230 3,910,950 (285,955) 678,262 (73,246) (292,983) (3,937,029) - - 4,296,230 NOTE 8 - LEASES Right‐of‐use asset ‐ Building 37,905 118,905 Depreciation charge for the year (37,905) (75,394) Reassessment to right-of-use assets - (5,605) - 37,905 Lease liabilities Current - 41,315 Non-current - - - 41,315 Depreciation charge of right‐of‐use assets (included in depreciation expenses) Building 37,905 75,394 37,905 75,394 Interest expense (included in finance cost) 560 5,211 The total cash outflow for leases 41,315 82,579 Less: Exploration and evaluation asset write off CONSOLIDATED ENTITY Exploration and Evaluation expenditure at cost Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below: At each reporting date, the Directors undertake an assessment of the carrying amount of its explorations and evaluation assets. During the period, the Directors identified that as a result of ATP 855 expiring on 1 November 2022, the exploration and evaluation asset ATP 855 that was recorded as a non-current asset, has to be completely written off in accordance with the Australian Accounting Standard AASB 6 Exploration and Evaluation of Mineral Resources. Therefore, an exploration asset write off totalling $3,937,029 has been recognised in the statement of profit or loss. The Group leases its head office building. A renewal of the current lease contract was signed for a month to month agreement commencing 27 August 2023. Increase/(decrease) in the restoration asset This note provides information for leases where the group is a lessee. The consolidated interim statement of financial position shows the following amounts relating to leases: Balance at beginning of the year The consolidated statement of profit or loss shows the following amounts relating to leases: Balance at the end of the year NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 7 - EXPLORATION AND EVALUATION EXPENDITURE Less: Depreciation of restoration asset Consolidated Entity Balance at the end of the year Exploration and evaluation expenditure is only carried forward if it is expected to be recovered which is dependent on the successful development and commercial exploration or sale of area of interest. Balance at beginning of the year Reconciliations