Announcement PDF Appendix 4D Half Year report Period Ending 31 December 2023 Rule 4.2A.3 APPENDIX 4D Half Year report 1. Company Details Name of entity Energy Technologies Limited ABN or equivalent company reference Reporting Period (‘current period’) Previous corresponding period (‘previous period’) 38 002 679 469 31 December 2023 31 December 2022 2. Results for announcement to the market % $A'000 2.1 Revenues from ordinary activities Down 0% to 7,434 2.2 Loss from ordinary activities after tax attributable to members Up 11% to (5,146) 2.3 Loss for the period attributable to members Up 11% to (5,146) 2.4 Dividends Amount per security Franked amount per security Final dividend -¢ -¢ Interim dividend -¢ -¢ 2.5 Record date for determining entitlements to No dividend proposed or paid. the dividend 31/12/23 Appendix 4D Page 1 Appendix 4D Half Year report Period Ending 31 December 2023 Brief explanation of any of the figures in 2.1 to 2.4 necessary to enable the figures to be understood. REVIEW AND RESULTS OF OPERATIONS Half-year results The consolidated net loss after tax and excluding minorities of the Group for the half year ended 31 December 2023 was $5,145,877 (31 December 2022 Loss was $5,754,353). EGY’s wholly owned subsidiary Bambach Wires and Cables Pty Ltd (the company) reported a loss after tax of $4,445,620 compared to December 2022 Half Year loss of $5,136,521. During this period, the company underwent a comprehensive strategic evaluation of its operations, aimed at optimising its business approach. This review, coupled with thorough due diligence, led to the establishment of the Purchased Sales Division, marking a significant milestone as the company secured its inaugural overseas order. While maintaining its core identity as an Australian manufacturer, the company strategically refines its profit margins by leveraging its newfound ability to offer complementary products alongside low-margin items. This strategic shift enables the manufacturing division to prioritise high-margin contracts and projects, positioning the company favourably to pursue larger opportunities in the infrastructure sector. Furthermore, the company is actively exploring additional avenues to drive growth within the Purchased Sales Division. EGY during the period raised $5,356,500 via convertible note issues for working capital. 31/12/23 Appendix 4D Page 2 Appendix 4D Half Year report Period Ending 31 December 2023 3.1 Net Tangible security Assets per Net tangible assets per security. Intangible assets have been excluded from the calculation of net tangible assets per security. Current period Previous corresponding period (0.47) cents 2.02 cents 4. Details of entities over which control has been gained or lost during the period 14.1 A Name of entity 4.2 A Date from which control was gained 4.3 A Where material to an understanding of the report – the contribution of such entity to the reporting entity’s profit from ordinary activities during the period and the profit or loss of such entities during the whole of the previous corresponding period 4.1 B Name of entities 4.2 B Date from which control was lost 4.3 B Where material to an understanding of the report – the contribution of such entities to the reporting entity’s profit from ordinary activities during the period and the profit or loss of such entities during the whole of the previous corresponding period 31/12/23 N/A N/A Appendix 4D Page 3 Appendix 4D Half Year report Period Ending 31 December 2023 5. Details of Individual and Total Dividends Date dividend is payable Amount per security Franked amount per security at 30% tax Amount per security of foreign source dividend ¢ ¢ ¢ Dividend 1 Total dividend per security: Current year Previous year Ordinary securities ¢ ¢ Preference securities ¢ ¢ 6. Dividend reinvestment plan Details of any dividend reinvestment plans in operation: None The last date for the receipt of an election notice for participation in any dividend or distribution reinvestment plan: N/A 7. Details of Associates and Joint Ventures: Name of entity Percentage holding 31/12/23 Percentage holding 31/12/22 7.1 Where material to an understanding of the report - aggregate share of profits (losses) of these entities, details of contributions to net profit for each of these entities, and with comparative figures for each of these disclosures for the previous corresponding period: N/A 31/12/23 Appendix 4D Page 4 Appendix 4D Half Year report Period Ending 31 December 2023 8. For foreign entities, details of origin of accounting standards used in compiling the report (e.g. International Financial Reporting Standards) Dulhunty Engineering Limited (formerly Dulhunty Power International Limited) adopts Australian Accounting Standards. 9. For all entities, if the accounts contain an independent audit report or review that is subject to a modified opinion, emphasis of matter or other matter paragraph, a description of the modified opinion, emphasis of matter or other matter paragraph: Material Uncertainty paragraph in relation to Going Concern. Signed on behalf of the Board of Directors: Matthew Driscoll Chairman 29 February 2024 31/12/23 Appendix 4D Page 5 ENERGY TECHNOLOGIES LIMITED (ASX: EGY) ABN 38 002 679 469 Half-Year Financial Report for the half-year ended 31 December 2023 Corporate Information ABN 38 002 679 469 Directors Matthew Driscoll (Chairman, Non-Executive Director) Anthony L Smith (Non-Executive Director) Alfred J Chown (Executive Director) Company Secretary Gregory R. Knoke Registered Office Unit J, 134 - 140 Old Pittwater Road Brookvale NSW 2100 Telephone:- (02) 8978 2600 Bankers National Australia Bank Limited NAB House, 255 George Street Sydney NSW 2000 Share Register Computershare Investor Services Pty Ltd Level 3, 60 Carrington Street Sydney NSW 2000 Telephone:- (02) 8234 5000 Facsimile:- (02) 8235 8150 Auditors Crowe Audit Australia Level 42, 600 Bourke Street Melbourne VIC 3000 Telephone: - (03) 9258 6700 2 Energy Technologies Limited – Half-year Report Contents Directors’ Report ............................................................................................................................. 4 Auditor’s Independence Declaration ................................................................................................ 5 Condensed Consolidated Statement of Profit or Loss ....................................................................... 6 Condensed Consolidated Statement of Other Comprehensive Income .............................................. 7 Condensed Consolidated Statement of Financial Position ................................................................. 8 Condensed Consolidated Statement of Changes in Equity ................................................................ 9 Condensed Consolidated Statement of Cash Flows......................................................................... 10 Notes to the Half –Year Financial Statements................................................................................. 11 Directors’ Declaration .................................................................................................................... 23 Independent Auditor’s Review Report............................................................................................ 24 3 Energy Technologies Limited – Half-year Report Directors’ Report Your Directors submit their report for the half-year ended 31 December 2023 DIRECTORS The names and details of the Company's Directors in office during the half-year and until the date of this report are as follows. Directors were in office for this entire period unless otherwise stated. Matthew Driscoll (Chairman, Non-Executive Director) Appointed 20 December 2016. Anthony L Smith (Non-Executive Director) Appointed on 24 December 2020. Alfred J Chown (Executive Director) Appointed on 10 August 2023. Brian Jamieson (Chairman, Non-Executive Director) Appointed 24 December 2020. Deceased 7 August 2023. PRINCIPAL ACTIVITIES AND SIGNIFICANT CHANGES IN NATURE OF ACTIVITIES The principal activities during the half-year of entities within the economic entity were the manufacture and sale of specialist industrial cables. REVIEW AND RESULTS OF OPERATIONS The consolidated net loss after tax and excluding non-controlling interest of the Group for the half year ended 31 December 2023 was $5,145,877 (31 December 2022: Loss was $5,754,353). EGY’s wholly owned subsidiary Bambach Wires and Cables Pty Ltd reported a loss after tax of $4,445,620 compared to December 2022 Half Year loss of $5,136,521. During this period, the company underwent a comprehensive strategic evaluation of its operations, aimed at optimising its business approach. This review, coupled with thorough due diligence, led to the establishment of the Purchased Sales Division, marking a significant milestone as the company secured its inaugural overseas order. While maintaining its core identity as an Australian manufacturer, the company strategically refines its profit margins by leveraging its newfound ability to offer complementary products alongside low-margin items. This strategic shift enables the manufacturing division to prioritise high-margin contracts and projects, positioning the company favourably to pursue larger opportunities in the infrastructure sector. Furthermore, the company is actively exploring additional avenues to drive growth within the Purchased Sales Division. EGY during the period raised $5,356,500 via convertible note issues for working capital. AUDITOR’S INDEPENDENCE DECLARATION The lead auditor’s independence declaration under Section 307C of the Corporations Act 2001 is set out on page 5 and forms part of the Directors’ Report for the half-year ended 31 December 2023. Signed in accordance with a resolution of the Directors. Matthew Driscoll Chairman 29 February 2024 4 Crowe Audit Australia ABN 13 969 921 386 Level 42, 600 Bourke Street Melbourne VIC 3000 Australia c/o Findex Mail Processing Team PO Box 1608 Mildura VIC 3502 Australia Main +61 (03) 9258 6700 Fax +61 (03) 9258 6722 www.crowe.com.au Auditor’s Independence Declaration To the Directors of Energy Technologies Limited In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the review of Energy Technologies Limited for the half-year ended 31 December 2023, I declare that, to the best of my knowledge and belief, there have been: (i) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and (ii) no contraventions of any applicable code of professional conduct in relation to the review. Crowe Audit Australia Antony Barnett Partner 29 February 2024 Melbourne Some of the Crowe personnel involved in preparing this document may be members of a professional scheme approved under Professional Standards Legislation such that their occupational liability is limited under that Legislation. To the extent that applies, the following disclaimer applies to them. If you have any questions about the applicability of Professional Standards Legislation to Crowe’s personnel involved in preparing this document, please speak to your Crowe adviser. Liability limited by a scheme approved under Professional Standards Legislation. The title ‘Partner’ conveys that the person is a senior member within their respective division and is among the group of persons who hold an equity interest (shareholder) in its parent entity, Findex Group Limited. The only professional service offering which is conducted by a partnership is external audit, conducted via the Crowe Australasia external audit division and Unison SMSF Audit. All other professional services offered by Findex Group Limited are conducted by a privately-owned organisation and/or its subsidiaries. Findex (Aust) Pty Ltd, trading as Crowe Australasia is a member of Crowe Global, a Swiss verein. Each member firm of Crowe Global is a separate and independent legal entity. Findex (Aust) Pty Ltd and its affiliates are not responsible or liable for any acts or omissions of Crowe Global or any other member of Crowe Global. Crowe Global does not render any professional services and does not have an ownership or partnership interest in Findex (Aust) Pty Ltd. Services are provided by Crowe Audit Australia, an affiliate of Findex (Aust) Pty Ltd. © 2024 Findex (Aust) Pty Ltd 5 Energy Technologies Limited – Half-year Report Condensed Consolidated Statement of Profit or Loss for the half-year ended 31 December 2023 CONSOLIDATED 31 December 2023 31 December 2022 Note $ $ Sales revenue 2(i) 7,411,052 7,449,000 Other revenues 2(i) 22,602 389 Total revenue from continuing operations 7,433,654 7,449,389 Cost of sales (7,961,580) (7,126,831) Marketing expenses (17,760) (2,584) Occupancy expenses (74,601) (54,156) Administration expenses (2,483,966) (2,505,184) Share based payments 10 9,478 (33,992) Finance costs 2(ii) (1,070,185) (1,082,446) (852,810) (1,317,533) - (958,156) (127,667) (116,690) (5,145,437) (5,748,183) (5,098) (6,749) (5,150,535) (5,754,932) (5,145,877) (5,754,353) (4,658) (579) (5,150,535) (5,754,932) Depreciation and Amortisation expenses Impairment of intangible assets 2(iii) Other expenses LOSS BEFORE INCOME TAX INCOME TAX EXPENSE LOSS AFTER INCOME TAX LOSS ATTRIBUTABLE TO: Owners of the parent Non-controlling interest The condensed consolidated statement of profit or loss should be read in conjunction with the accompanying notes. 6 Energy Technologies Limited – Half-year Report Condensed Consolidated Statement of Other Comprehensive Income for the half-year ended 31 December 2023 CONSOLIDATED 31 December 2023 $ 31 December 2022 $ (5,150,535) (5,754,932) Movement in foreign exchange relating to translation of controlled foreign entities 3,058 (1,601) Exchange differences on foreign exchange relating to minorities 3,057 (1,601) 6,115 (3,202) TOTAL COMPREHENSIVE LOSS (5,144,420) (5,758,134) TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE TO: Owners of the parent (5,142,819) (5,755,954) (1,601) (2,180) (5,144,420) (5,758,134) (1.52) (1.52) (3.34) (3.34) LOSS FOR THE PERIOD OTHER COMPREHENSIVE INCOME (LOSS) Items that may be reclassified subsequently to profit or loss Non-controlling interest Earnings per Share From continuing operations:   Basic loss per ordinary share (cents) Diluted loss per ordinary share (cents) The condensed consolidated statement of other comprehensive income should be read in conjunction with the accompanying notes. 7 Energy Technologies Limited – Half-year Report Condensed Consolidated Statement of Financial Position as at 31 December 2023 Note CONSOLIDATED 31 December 30 June 2023 2023 $ $ CURRENT ASSETS Cash and cash equivalents Trade and other receivables Inventories Other current assets 193,204 2,525,471 5,479,632 360,256 8,558,563 49,440 2,790,633 5,279,393 252,295 8,371,761 9,332,102 2,645,395 154,649 200,417 102,051 9,804,681 2,782,211 12,498 205,515 100,665 TOTAL NON-CURRENT ASSETS 12,434,614 12,905,570 TOTAL ASSETS 20,993,177 21,277,331 2,620,495 5,856,619 668,677 898,404 10,044,195 2,325,469 10,228,240 820,484 859,071 14,233,264 TOTAL NON-CURRENT LIABILITIES 10,678,562 1,672,064 25,973 12,376,599 1,469,124 1,823,648 25,014 3,317,786 TOTAL LIABILITIES 22,420,794 17,551,050 NET (LIABILITIES)/ASSETS (1,427,617) 3,726,281 45,239,038 5,781,151 486,658 (52,309,279) (802,432) (625,185) (1,427,617) 45,239,038 5,778,093 496,136 (47,163,402) 4,349,865 (623,584) 3,726,281 4 5 TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant & equipment Right of use assets Intangible assets Deferred tax asset Other non-current assets 3 6 8 5 CURRENT LIABILITIES Trade and other payables Borrowings Lease liabilities Employee provisions 7 6 TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES 7 6 Borrowings Lease liabilities Employee provisions EQUITY Issued capital Reserves Share based payment reserve Accumulated losses Parent interest Non-controlling interest 9 10 TOTAL (DEFICENCY IN EQUITY)/EQUITY The condensed consolidated statement of financial position should be read in conjunction with the accompanying notes. 8 Energy Technologies Limited – Half-year Report Condensed Consolidated Statement of Changes in Equity for the half-year ended 31 December 2023 Share Based Payment Reserve $ NonControlling Interest $ Total Equity/ (Deficiency in Equity) $ (31,818,405) (621,216) 15,791,292 - (5,754,353) (579) (5,754,932) (1,601) - - (1,601) (3,202) - (1,601) - (5,754,353) (2,180) (5,758,134) Unlisted share options - - 33,992 - - 33,992 Total transactions with owners, in their capacity as owners, and other transfers - - 33,992 - - 33,992 Balance at 31.12.2022 41,768,876 5,780,172 714,256 (37,572,758) (623,396) 10,067,150 Balance at 1.7.2023 45,239,038 5,778,093 496,136 (47,163,402) (623,584) 3,726,281 Loss for the period - - - (5,145,877) (4,658) (5,150,535) Other comprehensive gain for the period, net of income tax - 3,058 - - 3,057 6,115 Total comprehensive loss for the period - 3,058 - (5,145,877) (1,601) (5,144,420) Unlisted share options - - (9,478) - - (9,478) Total transactions with owners, in their capacity as owners, and other transfers - - (9,478) - - (9,478) 45,239,038 5,781,151 486,658 (52,309,279) (625,185) (1,427,617) Issued Capital $ Reserves $ 41,768,876 5,781,773 680,264 Loss for the period - - Other comprehensive loss for the period, net of income tax - Total comprehensive loss for the period Balance at 1.7.2022 Accumulated Losses $ Comprehensive income Transactions with owners in their capacity as owners and other transfers Comprehensive income Transactions with owners in their capacity as owners and other transfers Balance at 31.12.2023 The condensed consolidated statement of changes in equity should be read in conjunction with the accompanying notes. 9 Energy Technologies Limited - Half-Year Report Condensed Consolidated Statement of Cash Flows for the half-year ended 31 December 2023 CONSOLIDATED 31 December 2023 31 December 2022 $ $ CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 8,388,913 6,951,268 453 389 - 1,122,055 22,148 - (11,487,264) (11,388,763) (993,504) (1,004,584) (4,069,254) (4,319,635) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of property, plant and equipment 30,909 - Purchase of property, plant and equipment (62,117) (320,133) - 77,000 (31,208) (243,133) - 8,281,493 Repayment of lease liabilities (382,556) (382,217) Proceeds from issue of convertible notes 5,356,500 4,600,000 - (515,480) Repayment of borrowings (729,718) (7,140,711) NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 4,244,226 4,843,085 NET INCREASE IN CASH HELD 143,764 280,317 Cash at beginning of the financial period 49,440 82,066 CLOSING CASH BALANCE AT END OF FINANCIAL PERIOD 193,204 362,383 Interest received Receipts from government subsidies – R&D grant Receipts from government subsidies – Others Payments to suppliers and employees Finance costs NET CASH FLOWS (USED IN) OPERATING ACTIVITIES Proceeds from Government Grants – Regional Development Victoria NET CASH FLOWS (USED IN) INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings Repayment of Director’s loan 10 Energy Technologies Limited – Half-year Report Notes to the Half –Year Financial Statements 31 December 2023 1. BASIS OF PREPARATION OF THE HALF-YEAR FINANCIAL REPORT (a) Basis of Preparation These general-purpose financial statements for the interim half-year reporting period ended 31 December 2023 have been prepared in accordance with requirements of the Corporations Act 2001 and Australian Accounting Standard AASB 134 “Interim Financial Reporting”. The group is a for-profit entity for financial reporting purposes under Australian Accounting Standards. The half-year financial report is intended to provide users with an update on the latest annual financial statements of Energy Technologies Limited and its controlled entities (the Group). As such, it does not contain information that represents relatively insignificant changes occurring during the half-year within the Group. It is therefore recommended that this financial report be read in conjunction with the Annual Financial Report of Energy Technologies Limited for the year ended 30 June 2023 together with any public announcements made during the half-year. The same accounting policies and methods of computation have been followed in this interim financial report as were applied in the most recent annual financial statements, except in relation to some of the matters discussed at Note 1(c) below. The interim financial statements have been approved and authorised for issue by the Board of Directors on 29 February 2024. (b) Going Concern This report has been prepared on the going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and settlement of liabilities in the normal course of business. The consolidated entity incurred a loss after tax and excluding non-controlling interest of $5,145,877 (December 2022: loss of $5,754,353). During the period the group generated negative cash flows from operations of $4,069,254 (December 2022: negative $4,319,635). At 31 December 2023 the consolidated entity had a deficiency in net assets of $1,427,617 (June 2023: net assets of $3,726,281) including the recognition of deferred tax asset of $200,417 and intangible assets of $154,649. However, the consolidated current liabilities exceeded current assets by $1,485,632 (June 2023 $5,861,503). These matters give rise to a material uncertainty that may cast doubt on the Group’s ability to continue as a going concern. The Directors believe, notwithstanding the above financial performance, position and operating cash outflows, that along with the post period end funding raised (refer to note 13 on subsequent events), as well as its track record of raising capital, indications are that the group can continue to operate as a going concern. The results to 31 December 2023 remain affected by the continuing transitional issues in the relocation, expansion and then fully commissioning of the new manufacturing facility in Rosedale, Victoria. Notwithstanding the loss for the year and the Consolidated Entity’s deficiency in net current assets, the financial report has been prepared on the going concern basis. The ability to continue as a going concern is dependent upon a number of factors, that being achieving forecast sales and/or raising additional funds. The Directors believe that the Group will be able to continue as a going concern for the following reasons: 11 Energy Technologies Limited – Half-year Report Notes to the Half –Year Financial Statements 31 December 2023 1. BASIS OF PREPARATION OF THE HALF-YEAR FINANCIAL REPORT (Continued) (b) Going Concern (Continued)  Revenue remains consistent with the previous corresponding period and based on this and the company’s additional new strategy of purchasing imported product to deliver into the domestic market, expectations are that revenues will improve;  Further initiatives in place to raise further working capital;  The potential to raise additional capital (as and when required);  The potential to renegotiate and or extend debt facilities including but not limited to convertible notes;  In the event that the forecast growth in revenue is slower than anticipated, the Directors are confident they have the ability to raise additional funds through share issues and placements to sophisticated investors;  Given the recent shift in Business Planning and the addition of the Purchased Sales division, the company has formally engaged the services of a corporate adviser under a written executed mandate to assist it with corporate finance planning including future capital raising; and  Management have prepared a cash flow projection (including the above assumptions) for the period to 30 June 2025 and a FY2024-25 budget that supports the ability of the consolidated entity to continue as a going concern. As a consequence of these matters, the Directors believe the consolidated entity will continue as a going concern and it is appropriate to prepare these financial statements on that basis. In the event that the consolidated entity is unable to achieve the matters detailed above, it may not be able to continue as a going concern and therefore the consolidated entity may not be able to realise its assets and extinguish its liabilities in the ordinary course of operations and at the amounts stated in the financial statements. No adjustments have been made to the recoverability and classification of recorded asset values and the amount and classification of liabilities that might be necessary should the consolidated entity and company not continue as going concerns. (c) New or amended Accounting Standards and Interpretations adopted The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. 12 Energy Technologies Limited – Half-year Report Notes to the Half –Year Financial Statements 31 December 2023 2. REVENUE, INCOME AND EXPENSES (i) Revenue from continuing operations Sale of goods transferred at a point in time Other Revenue: Finance revenue Other income Total Other Revenue 2(v) 31 December 2023 $ 31 December 2022 $ 7,411,052 7,449,000 453 22,149 22,602 7,433,654 389 389 7,449,389 61,655 1,008,530 1,070,185 68,444 1,014,002 1,082,446 36,873 25,000 65,794 127,667 116,690 116,690 (ii) Finance costs Leasing finance cost Borrowing costs (iii) Other expenses Loss on disposal of property, plant and equipment Provision for expected credit loss Other expenses (iv) The Group’s revenue is entirely within Australia. (v) The Group’s revenue disaggregated by pattern of revenue is all from manufacturing activities in Australia. 13 Energy Technologies Limited – Half-year Report Notes to the Half –Year Financial Statements 31 December 2023 3. PROPERTY, PLANT AND EQUIPMENT Acquisitions and disposals During the half-year ended 31 December 2023 the group acquired fixed assets at a cost of $62,117 (December 2022: $320,133). Plant and equipment disposals during the half year ended 31 December 2023 provided net proceeds of $30,909 (December 2022: $NIL). Movements in Carrying Amounts Movements in carrying amounts for each class of property, plant and equipment between the beginning and the end of the current period: Consolidated: Capital Work In Progress $ Carrying amount at the beginning of the year Leasehold Improvements $ Plant and Equipment $ Total $ 545,235 472,165 8,787,281 9,804,681 9,980 - 52,137 62,117 Depreciation expense - (23,608) (443,306) (466,914) Loss on disposal - - (36,873) (36,873) Proceeds on disposal - - (30,909) (30,909) Carrying amount at the end of the period 555,215 448,557 8,328,330 9,332,102 Additions 4. TRADE AND OTHER RECEIVABLES 31 December 2023 $ 30 June 2023 $ CURRENT Trade receivables 2,378,856 2,646,225 Other receivables 171,615 144,408 2,550,471 2,790,633 (25,000) - 2,525,471 2,790,633 360,256 252,295 360,256 252,295 102,051 100,665 102,051 100,665 Provision for expected credit loss 5. OTHER ASSETS CURRENT Prepayments – general NON-CURRENT Deposits 14 Energy Technologies Limited – Half-year Report Notes to the Half –Year Financial Statements 31 December 2023 6. RIGHT OF USE ASSETS AND LEASE LIABILITIES 31 December 2023 $ 30 June 2023 $ Right of Use Assets $ $ Office and factory premises 4,058,852 4,058,852 Less: Accumulated Amortisation (2,261,583) (1,961,582) 1,797,269 2,097,270 Forklifts 213,520 - Less: Accumulated Amortisation (16,088) - 197,432 - Plant and equipment 964,062 964,062 Less: Accumulated Amortisation (313,368) (279,121) 650,694 684,941 2,645,395 2,782,211 Total Right of Use Assets The consolidated entity has leased office premises under operating leases with various expiry dates, some with options to extend. The leases have various escalation clauses. On renewal, the terms of the leases are renegotiated. Reconciliations Reconciliations of the written down values at the beginning and end of the current financial half-year are set out below: Consolidated: Office and factory premises $ Balance at 1 July 2023 Plant and equipment $ Forklifts $ Total $ 2,097,270 - 684,941 2,782,211 - 213,520 - 213,520 Amortisation expense (300,001) (16,088) (34,247) (350,336) Balance at 31 December 2023 1,797,269 197,432 650,694 2,645,395 Additions 15 Energy Technologies Limited – Half-year Report Notes to the Half –Year Financial Statements 31 December 2023 6. RIGHT OF USE ASSETS AND LEASE LIABILITIES (continued) 31 December 2023 $ 30 June 2023 $ Lease Liabilities CURRENT Office and factory premises Forklifts Hire Purchase agreements* 610,307 43,232 15,138 668,677 699,422 121,062 820,484 1,510,841 161,223 1,672,064 2,340,741 1,715,722 107,926 1,823,648 2,644,132 783,761 941,933 1,891,640 2,110,212 2,675,401 3,052,145 NON-CURRENT Office and factory premises Forklifts Hire Purchase agreements* Total payments in relation to the above on an undiscounted basis: 1 year or less Between 1 and 5 years * Lease liabilities on Hire purchase agreements are secured by the underlying financed assets included in property, pla