ANNUAL Report June 2024 Notes to the Consolidated Financial Statements 40 Accounting Policy The component of convertible notes that exhibits characteristics of a liability is recognised as a liability in the Statement of Financial Position, net of transaction costs. The increase in liability due to the passage of time is recognised as a finance cost. The remainder of the proceeds are included in shareholders’ equity, net of transaction costs. The carrying amount of the conversion option is not remeasured in subsequent years. Transaction costs are apportioned between the liability and equity components of the convertible notes based on the allocation of proceeds to the liability and equity components when the instruments are first recognised. The liability component of the convertible notes has been classified as a current liability in accordance with AASB 101 Amendments to Australian Accounting Standards – Classification of Liabilities as Current or NonCurrent due to the Company not having a right to defer settlement for at least twelve months after the reporting period. 15. EARNINGS PER SHARE 2024 $ 2023 $ Loss after income tax attributable to the owners of the Company used in calculating basic and diluted earnings per share (2,129,588) (3,716,846) Number Number Weighted average number of ordinary shares on issue used in the calculation of basic loss per share 1,696,757,002 1,420,196,670 Weighted average number of ordinary shares used in calculating diluted earnings per share. Note options outstanding at the reporting date have not been brought to account as they are antidilutive. 1,886,732,213 1,547,960,515 Basic loss per share (cents) (0.13) (0.26) Diluted loss per share (cents) (0.11) (0.24) 16. KEY MANAGEMENT PERSONNEL COMPENSATION 2024 $ 2023 $ Short-term employee benefits 543,647 533,652 Post-employment benefits - - Share based payments 29,651 120,830 573,298 654,482 17 CONTINGENT LIABILITIES The Group has provided guarantees totalling $1,172,598 in respect of mining exploration tenements and environmental bonds. These guarantees in respect of mining and exploration tenements are secured against deposits with the relative State Department of Mines. The Company does not expect to incur any material liability in respect of the guarantees. 18. COMMITMENTS Exploration Licence Expenditure Requirements Queensland The Queensland Government has approved a number of changes to Exploration Permits under the Natural Resources and Other Legislation Amendment Act 2019 (known as NROLA Act). This Act commenced in May 2020, resulting in a change from an expenditure-based approach upon which a company’s compliance with its licence conditions will be assessed on an outcomes-based approach. Notes to the Consolidated Financial Statements continued 106 EQ Resources Limited Annual Report 2024
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