Icon Energy Annual Report 2024 31 ICON ENERGY LIMITED AND ITS CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2024 30 June 2024 30 June 2023 $ $ - - - 4,296,230 - (285,955) - (73,246) - (3,937,029) - - NOTE 7 - LEASES Right-of-use asset - Building - 37,905 Depreciation charge for the year - (37,905) Reassessment to right-of-use assets - - - - Lease liabilities Current - - Non-current - - - - Depreciation charge of right-of-use assets (included in depreciation expenses) Building - 37,905 - 37,905 Interest expense (included in finance cost) - 560 The total cash outflow for leases - 41,315 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 last reporting 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, had 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 was recognised in the statement of profit or loss as at 30 June 2023. The Group has a month-to-month lease agreement for its office building with an entity in which Mr. R. James, a director of the Company, has a controlling interest. The lease commenced on 8 December 2023. Under the terms of the lease agreement, no rent is payable by the Group. The Group is responsible for all outgoings associated with the leased premises. In accordance with AASB 16 Leases, due to its short-term duration this lease is not recognised on the Statement of Financial Position. However, the related outgoings are recorded as expenses in the period in which they are incurred. Given the month-to-month nature of the lease, there are no future minimum lease commitments beyond the current month. Increase/(decrease) in the restoration asset This note provides information for leases where the group is a lessee. The consolidated 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 6 - 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. For the year ended 30 June 2024, the Group incurred outgoings and maintenance expenses totaling $1,008.42 related to this lease. These costs are included under Occupancy expense in the Statement of Profit or Loss and Other Comprehensive Income. Balance at beginning of the year Reconciliations
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