Icon Energy Annual Report 2025 27 ICON ENERGY LIMITED AND ITS CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2025 NOTE 1 - MATERIAL ACCOUNTING POLICY INFORMATION Corporate Information Basis of Preparation - - 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 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. Icon Energy Limited is a for-profit company limited by shares, incorporated and domiciled in Australia. The Company is a listed public company, is listed on the Australian Securities Exchnage (ASX: ICN). The Company's registered office is located at Level 3, 2 Corporate Court, Bundall Queensland 4217 and principal place of business is Unit 2/3 William Banks Drive, Burleigh Heads Queensland 4220. The primary activity during the financial year was the ongoing management and renewal of Authority to Prospect (ATP) 855. The financial statements have been prepared on an accrual and historical cost basis, except for provisions that have been measured at the present value of board of directors' best estimate of the expenditure required to settle the present obligation at the end of the reporting period. All amounts are presented in Australian dollars, unless otherwise noted. This is also the functional currency of the parent. Details of Icon Energy Limited material accounting policies are included in Note 22. Going concern Significant events and critical assumptions impacting the directors' assessment of going concern include: It is a requirement of the Australian Accounting Standards, that ‘when preparing financial statements, management shall make an assessment of an entity’s ability to continue as a going concern. An entity shall prepare financial statements on a going concern basis unless management either intends to liquidate the entity or to cease trading or has no realistic alternative but to do so. When management is aware, in making its assessment, of material uncertainties related to events or conditions that may cast significant doubt upon the entity’s ability to continue as a going concern, the entity shall disclose those uncertainties. The 30 June 2025 end of year financial statements have been prepared on a going concern basis as management do not intend to liquidate the entity nor cease operations and have determined that the Company does not meet the threshold of having no realistic alternative but to do so. The going concern basis of preparation contemplates continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business and at the amounts stated in the financial report. The Group recorded an operating loss for the year ended 30 June 2025 of $1,078,503 (2024: $1,156,056) and net operating cash outflows for the 12 months ended 30 June 2025 was $915,505 (2024: $1,049,919). The Group’s current liabilities exceeded its current assets by $4,064,979. These conditions indicate there are material uncertainties that may cast significant doubt on the Group's ability to continue as a going concern, and therefore, it may be unable to realise its assets and discharge its liabilities in the normal course of business. The consolidated financial statements of Icon Energy Limited (the “Company”) and its controlled entities (together referred to as the “Group” or “Consolidated Entity”) for the financial year ended 30 June 2026 were authorised for issue in accordance with a resolution of the Board of Directors on 29 September 2025. Renewal of ATP 855 and PL-1144 Aplication: On 4 October 2022, the Company applied to the Queensland Department of Resources to renew ATP 855. The Department initially rejected this application on 17 October 2022. The Company successfully challenged the decision in the Supreme Court of Queensland, which ruled in the Company’s favour on 5 September 2023 and directed the Department to process the application. As at the date of this report, the renewal application remains under review. Under section 83 of the Petroleum and Gas (Production and Safety) Act 2004, ATP 855 remains in force while the renewal application is under assessment. On 6 February 2025, the Department issued a Notice of Proposed Grant of Petroleum Lease (PL-1144). The application is progressing through the approval process, and the Company expects to be able to meet the requirements under the approval process. On 8 August 2025 the Department requested the Company to provide additional information with respect to the application. The Company has requested an extension to be able to provide the necessary information by 16 December 2025. Decommissioning and Rehabilitation Costs: The Company has estimated that the cost for decommissioning and rehabilitation related to ATP 855 is $4,935,858. The Directors’ assessment is based on the expectation that neither the Department of Resources nor the Department of Environment and Science will require these works to commence before a determination is made on the ATP 855 renewal and PL-1144 application approval process. Notes to the Consolidated Financial Statements for the year ended 30 June 2025
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