Notes to the Consolidated Financial Statements continued ANNUAL Report June 2025 Notes to the Consolidated Financial Statements 32 Debt Component – Convertible Notes 2025 $ Opening balance at 1 July 2024 544,637 Convertible note issue on 29 November 2024 2,100,000 Accrued interest at an effective interest rate 188,358 Interest paid at coupon rate (67,500) Capitalised borrowing costs 13,125 Liability derecognition upon conversion - Balance as at 30 June 2025 2,778,620 2024 Debt Component – Convertible Notes $ Opening balance at 1 July 2023 3,494,215 Convertible note issue on 6 November 2023 525,000 Accrued interest at an effective interest rate 199,828 Interest paid at coupon rate (280,000) Capitalised borrowing costs 32,525 Liability derecognition upon conversion (3,422,556) Balance as at 30 June 2024 549,012 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. 16. EARNINGS PER SHARE 2025 $ 2024 $ Loss after income tax attributable to the owners of the Company used in calculating basic and diluted earnings per share (39,228,351) (14,425,051) Number Number Weighted average number of ordinary shares on issue used in the calculation of basic loss per share 2,313,669,320 1,696,757,002 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. 2,656,746,092 1,886,732,213 Basic loss per share (cents) (1.70) (0.85) Diluted loss per share (cents) (1.48) (0.77) 98 EQ Resources Limited Annual Report 2025
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