Company: COOT
Filing Date: 2025-03-31
Form Type: 10-Q
Source: 0001641172-25-001552
Chunk: 17

Company: Australian Oilseeds Holdings Ltd
Filing Date: 2025-03-31
Form: 10-Q
Item: Item 2
Chunk 17
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 Qualitative Disclosures About Market Risk

We
are exposed to market risk, including changes to interest rates and foreign currency exchange rates.

Interest
Rate Sensitivity

We
had cash and cash equivalents totaling AUD$1,437,667 and AUD$514,140 as of 31 December 2024, and 30 June 2024, respectively. Cash and
cash equivalents include cash on hand and investments with original maturities of three months or less, are stated at cost, and approximate
fair value. Our investment policy and strategy are focused on preservation of capital, supporting our liquidity requirements, and delivering
competitive returns subject to prevailing market conditions. We were not exposed to material risks due to changes in market interest
rates given the liquidity of the cash and investments with original maturity of three months.

31

Foreign
Currency Risk

Although
we are exposed to foreign currency risk from our international operations, we do not consider it to have a material impact. Certain transactions
of the Company and its subsidiaries are denominated in currencies other than the functional currency.

Credit
Risk

Financial
instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts
receivable.

The
Company’s cash and cash equivalents are generally held with large financial institutions. Although the Company’s deposits
may exceed federally insured limits, the financial institutions that the Company uses have high investment-grade credit ratings and,
as a result, the Company believes that, as of June 30, 2024, its risk relating to deposits exceeding federally insured limits was not
significant.

The
Company has no significant off-balance sheet risk such as foreign exchange contracts, options contracts, or other hedging arrangements.

The
Company believes its credit policies are prudent and reflect normal industry terms and business risk. The Company generally does not
require collateral from its customers and generally requires payment from zero to 90 days from the invoice date with typical terms of
30 days. As of 31 December, 2024, three customers accounted for 40.0% of the Company’s accounts receivable balance, and three customers
accounted for more than 34% of the Company’s accounts receivable balance as of 31 December 2023.

ITEM
3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not
applicable.

ITEM
4. CONTROLS AND PROCEDURES.

Evaluation
of Disclosure Controls and Procedures

We
maintain disclosure controls and procedures (