Cue Energy Resources Limited Notes to the financial statements 30 June 2024 Note 14. Financial instruments (continued) 51 The following table analyses the contractual maturities of the Group’s financial liabilities into relevant groupings based on the remaining period at the reporting date to the contractual undiscounted cash flows comprising principal and interest repayments. 30 June 2024 12 months or less 1 to 2 years 2 to 5 years More than 5 years Non-derivative financial liabilities $'000 $'000 $'000 $'000 Trade and other payables 2,986 - - - Lease liabilities 43 174 - - Borrowings - - - - 30 June 2023 12 months or less 1 to 2 years 2 to 5 years More than 5 years Non-derivative financial liabilities $'000 $'000 $'000 $'000 Trade and other payables 3,929 - - - Borrowings 4,398 - - - Lease liabilities 91 45 - - On 23 June 2022, the Consolidated Entity entered into a two-year, unsecured loan agreement with Echelon for $7.0 million. The loan is unsecured, with an interest rate of 10% p.a. fixed for the term of the loan and an establishment fee of 1.5% of the loan amount. The term of the loan is two years from inception date in June 2022 and early repayments are allowed with no penalty. During the year ended 30 June 2023, $3 million in loan repayments were made, the balance being settled in full during the year ended 30 June 2024. (f) Credit risk Credit risk arises from the financial assets of the Group, which comprise cash and cash equivalents and restricted cash and trade and other receivables. The Group’s exposure to credit risk arises from potential default by the counter-party, with maximum exposure equal to the carrying amount of these instruments. Exposure at the reporting date is addressed in each applicable note. The Group does not hold any credit derivatives to offset its credit exposure. The Group trades only with recognised, creditworthy third parties, and as such collateral is not requested nor is it the Group’s policy to securitize its trade and other receivables. It is the Group’s policy that all customers who wish to trade on credit terms are subject to credit verification procedures which could include an assessment of their independent credit rating, financial position, past experience and industry reputation. The risks are regularly monitored. Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Consolidated Entity. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements. The Consolidated Entity does not hold any collateral. Generally, trade receivables are written off when there is no reasonable expectation of recovery. Indicators of this include the failure of a debtor to engage in a repayment plan, no active enforcement activity and a failure to make contractual payments for a period greater than 1 year. 65 Cue Energy Resources Limited Annual Report 2024
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