Notes to the Consolidated Financial Statements for the year ended 30 June 2025 34 Icon Energy Annual Report 2025 ICON ENERGY LIMITED AND ITS CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2025 The Group holds the following financial instruments: NOTE 30 June 2025 30 June 2024 $ $ Financial Assets Cash and cash equivalents 5 431,413 448,747 Performance guarantee bonds 743,481 743,481 Amortised cost - Trade and other receivables 9,134 9,948 Financial Liabilities Non-interest bearing borrowings 729,570 445,389 Held at amortised cost - Trade and other payables 121,371 172,693 Capital Risk Management Financial Risk Management (a) Market Risk Interest rate risk The Consolidated Entity’s financial instruments consist mainly of deposits with banks, short-term investments, receivables, payables and non-interest beaqring borrowings. No financial assets are pledged as collateral for liabilities. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS At the end of the reporting period, the Consolidated Entity’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of changes in market interest rates, and the effective weighted average interest rates on those financial assets and financial liabilities, are set out below: The Consolidated Entity manages interest rate risk by monitoring levels of exposure to interest rate. CONSOLIDATED ENTITY The Board reviews the capital structure regularly, assessing the cost of capital and the risks associated with each class of capital. There have been no changes to the Consolidated Entity’s capital risk management strategy since the prior year. The Consolidated Entity does not hold or issue derivative financial instruments at 30 June 2025 (30 June 2024: Nil). The Consolidated Entity manages its capital to ensure that it is able to continue as a going concern and provide optimal return to shareholders through an optimal balance of debt and equity. The capital structure of the Consolidated Entity consists of cash and cash equivalents and equity comprising issued capital, net of reserves and accumulated losses as disclosed in notes 5 and 10 respectively. NOTE 17 - FINANCIAL INSTRUMENTS The Consolidated Entity operates in a single business segment, being the oil and gas exploration within Queensland. This is consistent with reporting to the Group's chief operating decision maker, who is the Board of Directors. The Board reviews internal management reports on the performance of the Consolidated Entity at least on a monthly basis. Accordingly, the financial results presented in the consolidated financial statements represent the results of this sole operating segment. NOTE 16 - SEGMENT INFORMATION The carrying values of financial assets and financial liabilities held at amortised cost approximate their fair value. The Consolidated Entity's interest rate risk arises mainly from the term deposits and cash and cash equivalents earning ineterst at variable rates.The Consolidated Entity does not have any interest bearing borrowing facilities. Therefore, it has not been exposed to the interest rate risk through borrowing funds. The Group is not exposed to material currency or price risk. Market risk primarily arises from interest rate fluctuations on cash balances. The Board of Directors oversees the risk management framework. The main risks the Consolidated Entity is exposed to through its financial assets and liabilities are market risk (interest rates), credit risk and liquidity risk. The main purpose of the financial instruments is to fund operations and manage working capital.
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