Company: FECOF
Filing Date: 2025-07-15
Form Type: 20-F
Source: 0001477932-25-005053
Chunk: 34

Company: FEC Resources Inc.
Filing Date: 2025-07-15
Form: 20-F
Item: Item 5
Chunk 34
---
ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS.

We have experienced significant operating losses over the last few years, and as a result, our ability to continue as a going concern is dependent on achieving profitable operations and/or upon obtaining additional financing.

Our audited financial statements were prepared in accordance with IFRS as issued by the IASB, which are different from US GAAP (refer to the Auditors’ Report dated July 14, 2025).

The Company is exposed to foreign currency fluctuations for general and administrative transactions denominated in Canadian Dollars. The majority of the Company’s cash is kept in U. S. dollars. Cash held in Canadian dollars is subject to exchange rate fluctuations between the Canadian dollars and the U. S. dollars.

The following discussion and analysis of financial results should be read in conjunction with our Audited Financial Statements for the year ended December 31, 2024, together with the notes related thereto. The discussion contains forward-looking statements that involve risks and uncertainties. Such information, although considered reasonable by our management at the time of preparation, may prove to be inaccurate and actual results may differ materially from those anticipated in the statements made.

Fiscal year ended December 31, 2024 versus December 31, 2023

Our accounts show a loss for the year ended December 31, 2024, of $244,437, or $0.00 per share, versus a loss of $191,795 for the same period in 2023. General and administration expense were $182,241 for the year ended December 31, 2024 versus $159,202 for the same period in 2023. Overall general and administrative expenses were higher than those experienced in the previous year. Higher professional fees and higher interest expense on the PXP Loan mainly accounted for the difference. Professional fees were $54,310 for the year ended December 31, 2024 versus $23,841 for the same period in the previous year as we engaged professional advice with respect to our strategic options going forward in 2025. Office and miscellaneous costs were $19,219 for the year ended December 31, 2024 versus $22,572 for the same period in the previous year. The difference was a result of our ongoing effort to reduce costs where possible. Consulting fees for the year ended December 31, 2024 were $86,397 versus $86,749 for the previous year. The difference was not material. Listing and