NOTES TO FINANCIAL STATEMENTS 31 December 2025 4 FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL MANAGEMENT (cont’d) Non-derivative financial assets All the financial assets of the Group and Company as at 31 December 2025 and 2024 are repayable on demand or due within one year from the end of the reporting period, except for restricted cash deposits, non-current trade and other receivables, and non-current deposits as disclosed in Notes 7(d), 8 and 9 to the financial statements respectively. (vi) Fair value of financial assets and financial liabilities Some of the Group’s financial assets are measured at fair value as at each reporting date. The following table gives information about how the fair value of the financial assets is determined (in particular, the valuation technique and inputs used). Financial assets Fair value at 31 December Fair value hierarchy Valuation technique and key inputs Significant unobservable inputs Relationship of unobservable inputs to fair value 2025 US$ 2024 US$ Group Trade and other receivables measured at FVTPL [Note 8(b)] 4,759,182 4,965,330 Level 3 Discounted cash flow. Future cash flows are estimated based on present value of expected payments, discounted using the entity’s discount rate. The expected payments are determined based on the coal sold from the underlying coal mines under the Cooperation Agreement. Forecasted coal prices : US$74 to US$116 (2024 : US$73 to US$104) per tonne. Discount rate : 13.1% (2024 : 12.6%) per annum. 3% decrease in forecasted coal prices will result in decrease in fair value of US$1,337,000 (2024 : US$1,914,000). 80 basis points increase in discount rate will result in decrease in fair value of US$131,000 (2024 : US$268,000). The equivalent increase in forecasted coal price and decrease in discount rate will result in the changes in fair value of the opposite direction. Convertible Loan (Note 14) - 5,685,151 Level 3 Binomial Option Pricing Model. Volatility of publicly listed comparable companies share price for the year ended 31 December 2024: 61%. 10% increase in volatility would have resulted in an increase in fair value of US$108,000 for the year ended 31 December 2024. 10% decrease in volatility would have resulted in a decrease in fair value of US$47,000 for the year ended 31 December 2024. 83 GEO ENERGY | ANNUAL REPORT 2025
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