For the year ended 30 June 2006
The company has brought to account the amount of $600,000 as revenue during the financial years ended 30 June 2004 and 30 June 2005 in relation to agreements reached with Excalibur Mining Corporation Limited (“Excalibur”). The company has received $75,000 in part payment of this amount and the balance remains the subject of Federal Court proceedings for recovery.
If the company is unsuccessful in its claims against Excalibur, the company may have to reverse the remaining balance of $525,000 previously recorded as income and recorded as a current receivable in this financial report. This would result in a reduction of both net profit and net assets by $525,000 in the financial period in which the claims are judged unsuccessful.
The company has brought to account the amount of $600,000 as revenue during the financial years ended 30 June 2004 and 30 June 2005 in relation to agreements reached with Excalibur Mining Corporation Limited (“Excalibur”). The company has received $75,000 in part payment of this amount and the balance remains the subject of Federal Court proceedings for recovery.
If the company is unsuccessful in its claims against Excalibur, the company may have to reverse the remaining balance of $525,000 previously recorded as income and recorded as a current receivable in this financial report. This would result in a reduction of both net profit and net assets by $525,000 in the financial period in which the claims are judged unsuccessful.