Icon Energy Annual Report 2025 31 ICON ENERGY LIMITED AND ITS CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2025 30 June 2025 30 June 2024 $ $ - - NOTE 7 - LEASES Non-interest bearing borrowings - unsecured NOTE Current 4c 281,810 - Non-current 4c 447,760 445,389 729,570 445,389 Exploration and Evaluation expenditure at cost The Group maintains a month-to-month lease arrangement for its office building with an entity controlled by Mr. R. James, a director of the Company. The lease commenced on 8 December 2023. Under the lease agreement, no rent is payable, but the Group is responsible for all outgoings and maintenance expenses associated with the leased premises. In accordance with AASB 16 Leases, this arrangement qualifies as a short-term lease due to its short-term duration and is therefore not recognised as a right-of-use asset or lease libility in the Statement of Financial Position. Instead, the Group recognises the related outgoings as an expense 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. In accordance with AASB 6 Exploration for and Evaluation of Mineral Resources, exploration and evaluation expenditure is only carried forward where the rights to explore are current, and it is expected that the expenditure will be recouped through successful development or sale of the area of interest, or where activities have not yet reached a stage to allow a reasonable assessment of economically recoverable reserves. No exploration expenditure was incurred during the year ended 30 June 2025, and no amounts were capitalised as exploration and evaluation assets. While tenure remains valid and the Company continues to progress toward potential development, no capitalisation of exploration costs was recognised as at 30 June 2025. The Directors will reassess the accounting treatment of ATP 855 in future reporting periods once formal tenure is granted and qualifying activities recommence. Short-Term Lease - Office Building Refer to Note 4(d) for further information regarding this lease arrangement. Consolidated Entity Non-current unsecured non-interest bearing borrowing is a loan from related party. Further information relating to loans from related parties is set out in note 4(d). This note provides information for leases where the group is a lessee. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 6 - EXPLORATION AND EVALUATION EXPENDITURE NOTE 8 - NON-INTEREST BEARING BORROWINGS For the year ended 30 June 2025, the Group incurred $10,703.83 in outgoings and maintenance expenses under this lease (30 June 2024: $1,008.42). These costs are included under Occupancy expense in the Statement of Profit or Loss and Other Comprehensive Income. Following a favourable ruling by the Supreme Court of Queensland in October 2023, Icon Energy’s application to renew ATP 855 was accepted by the Queensland Department of Resources, with the permit remaining valid under section 83 of the Petroleum and Gas (Production and Safety) Act 2004 (Qld) while the renewal is under assessment. CONSOLIDATED ENTITY
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