Review of Operations Directors’ Report Chairman’s Letter CEO’s Report Financial Report Shareholder Information 28 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) (B) INTEREST RATE RISK - CONSOLIDATED The Group’s exposure to interest rate risks and the effective interest rates of financial assets (excluding investments in controlled entities and associates) and financial liabilities are as follows: Financial Instrument Floating Interest Rate Fixed Interest Rate Non-Interest Bearing Total 30 June 2026 $ 30 June 2025 $ 30 June 2026 $ 30 June 2025 $ 30 June 2026 $ 30 June 2025 $ 30 June 2026 $ 30 June 2025 $ (i) Financial Assets Cash and cash equivalents1 9,353,441 6,520,923 – – – – 9,353,441 6,520,923 Trade and other receivables – – – – 2,022,882 1,578,781 2,022,882 1,578,781 Total Financial Assets 9,353,441 6,520,923 – – 2,022,882 1,578,781 11,376,323 8,099,704 Trade and other payables – – – – 761,119 880,221 761,119 880,221 Lease liabilities2 – – – 167,987 – – – 167,987 Borrowings – Equipment loan3 – – 340,726 256,534 – – 340,726 256,534 Total Financial Liabilities – – 340,726 424,521 761,119 880,221 1,101,845 1,304,742 1 Weighted average interest rate on cash and cash equivalents in the 2026 Financial Year was 5.04% (2025: 5.23%) 2 Fixed interest rate on the Groups lease liability in the 2026 Financial Year was 7.00% (2025: 7.00%) 3 Fixed interest rate on the Groups Equipment Loan in the 2026 Financial Year was 7.64% (2025: 7.64%) A reasonably possible change in interest rates would not have a material impact on the financial position or performance of the Group. (C) FAIR VALUES The fair values of financial assets and financial liabilities are an approximate estimation of their carrying value in the Statement of Financial Position. The fair values have been determined based on the following methodologies: - Cash and cash equivalents, trade and other receivables, and trade and other payables are short term instruments in nature whose carrying value is equivalent to fair value. (D) CREDIT RISK The Group’s maximum exposure to credit risk at balance date in relation to each class of recognised financial asset is the carrying amount, net of any allowance for expected credit loss, of those assets as indicated in the Statement of Financial Position. Exposure arises from the potential non-performance by counterparties of contract obligations that could lead to a financial loss to the Group. Credit risk is managed through maintaining procedures ensuring, to the extent possible, that members and counterparties to transactions are of sound credit worthiness. Credit risk exposures Cash reserves form the majority of the Group’s financial assets. At 30 June 2026, cash was deposited with two financial institutions, including one large Australian bank and a U.S. bank account maintained with a Canadian bank. At 30 June 2026, the Group did not have a material credit risk exposure to a single trade debtor. (E) LIQUIDITY RISK Liquidity risk arises from the financial liabilities of the Group and the subsequent ability to meet the obligations to repay the financial liabilities as and when they fall due. The Group’s objective is to maintain consistency of funding via the raising of equity or short-term loans as and when required. All liabilities (other than equipment loans) are contractually due and payable in the next six months. 59 Annual Report 2026
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