Company: FECOF
Filing Date: 2025-07-15
Form Type: 20-F
Source: 0001477932-25-005053
Chunk: 72

Company: FEC Resources Inc.
Filing Date: 2025-07-15
Form: 20-F
Item: Item 18
Chunk 72
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 adequately provided for the probable outcome of these matters; however, the final outcome may result in a materially different outcome than the amount included in the tax liabilities.

ii) Going Concern

These financial statements have been prepared on the basis of the accounting principles applicable to a going concern, which assumes that the Company will be able to continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of operations because the Company’s parent company has agreed to fund the operations of the Company for the foreseeable future. These material uncertainties may cast substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence. Such adjustment could be material

Note 6 Cash

Cash held at banks earns interest at floating rates based on daily bank deposit rates.

Note 7Investment in Forum Energy Limited (“ FEL”)

i) Investment in FEL

The investment in FEL is summarized as follows:

                                 Number of shares held          Amount  
  Balance December 31, 2022                  6,117,238      $1,835,111  
  Additions                                  2,089,400         626,820  
  Balance December 31, 2023                  8,206,638      $2,461,931  
  Change in fair value                               -       6,106,163  
  Balance December 31, 2024                  8,206,638      $8,568,094  

As at December 31, 2024, the Company’s interest in FEL was6.80% (2023 - 6.80%).

On October 31, 2023 and November 29, 2023, the Company advanced $68,000and $136,000respectively to FEL representing6.8% of a $3,000,000financing being undertaken by FEL bringing the total advances by the Company to $627,020. The advances made to FEL are due on demand and non-interest bearing.

On December 21, 2023, $626,820of advances made to FEL by the Company were converted to shares in FEL at a price of $0.30per share. The $626,820conversion into FEL shares represented6.8% of $9,217,939of debt settled