Company: FECOF
Filing Date: 2025-07-15
Form Type: 20-F
Source: 0001477932-25-005053
Chunk: 38

Company: FEC Resources Inc.
Filing Date: 2025-07-15
Form: 20-F
Item: Item 5
Chunk 38
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4 (2023 - $356,500; 2022 - $80,000) under the same terms and conditions as the PXP Loan. As at December 31, 2024, the outstanding PXP Loan balance was $895,637 (2023 - $678,155), which included accrued interest of $105,431 (2023 - $43,235; 2022 - $10,642). Total interest expense amounted to $62,196 for the year ended December 31, 2024 (2023 - 32,593; 2022 - 10,642).

On December 21, 2023, $626,820 of advances made to FEL by us were converted to shares in FEL at a price of $0.30 per share. The $626,820 conversion into FEL shares represented 6.8% of $9,217,939 of debt settled by FEL.

Capital Resources

We currently own 6.80% of Forum Energy. If Forum Energy is required to raise additional funds through equity issuances, we would have to purchase our proportionate share of these equity issuances to maintain our current equity position.

We anticipate that we will require additional funds for working capital in 2025 and we are evaluating options in order to raise the additional funds. If we are unable to raise additional funds, there is significant doubt that we will be able to continue as a going concern. Currently, PXP has agreed to fund our operations until August 31, 2025, under the same terms and conditions as the PXP Loan.

Since the delisting of FEL from the London Stock Exchange, there is no liquidity via a public market for the FEL shares. As we are wholly reliant on the information disclosed by PXP concerning the business of FEL, we may not be able to obtain information necessary to facilitate a wider sales process and may be reliant on significant shareholders of PXP for the disposition of any of our FEL shares. We have looked at all options, including raising funds to operate and participate in future FEL financings by way of debt or equity financings.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements.

Contractual Obligations

None

Critical Accounting Policies and Estimates

Basis of preparation and accounting policies

We have prepared our consolidated financial statements in accordance with IFRS Accounting Standars as issued by the IASB. IFRS Accounting Standards represents standards and interpretations