ANNUAL REPORT FY2025 57 22. Financial instruments Capital management The Consolidated Entity manages its capital to ensure entity's in the Consolidated Entity will be able to continue as going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance. The Company is not subject to any externally imposed capital requirements, except for Chapter 6 of the Corporations Act 2001 in relation to take over provisions and Chapter 7 of ASX listing rules including a 15% placement capacity on new equity raising. At the 2024 Annual General Meeting held on 12 November 2024, shareholders approved additional 10% capacity to issue equity securities under ASX Listing Rule 7.1A. Given the nature of the business, the Consolidated Entity monitors capital on the basis of current business operations and cash flow requirements. Categories of financial instruments 2025 2024 $ $ Financial assets Cash and cash equivalents 2,930,601 4,769,374 Trade and other receivables 2,340,496 1,104,975 5,271,097 5,874,349 2025 2024 $ $ Financial liabilities Trade and other payables 1,481,750 658,003 The fair value of the above financial instruments approximates their carrying values. Financial risk management objectives For the year, the only material financial risk of the Consolidated Entity was liquidity risk. In common with all other businesses, the Consolidated Entity is exposed to risks that arise from its use of financial instruments. This note describes the consolidated entity's objectives, policies and processes for managing those risks and the methods used to measure them. Further quantitative information in respect of those risks is presented throughout these financial statements. There have been no substantive changes in the Consolidated Entity's exposure to financial instrument risks, its objectives, policies and processes for managing those risks or the methods used to measure them from previous periods unless otherwise stated in this note. The Board has overall responsibility for the determination of the consolidated entity's risk management objectives and policies and, whilst retaining ultimate responsibility for them, it has delegated the authority for designing and operating processes that ensure the effective implementation of the objectives and policies to the consolidated entity's finance function. The Consolidated Entity's risk management policies and objectives are therefore designed to minimise the potential impacts of these risks on the Consolidated Entity where such impacts may be material. The Board receives monthly financial reports through which it reviews the effectiveness of the processes put in place and the appropriateness of the objectives and policies it sets. The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the Consolidated Entity's competitiveness and flexibility.
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