Company: COOT
Filing Date: 2025-05-30
Form Type: 10-Q
Source: 0001641172-25-013065
Chunk: 83

Company: Australian Oilseeds Holdings Ltd
Filing Date: 2025-05-30
Form: 10-Q
Item: Item 2
Chunk 83
---
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.

33

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 March 31, 2025, 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 March, 2025, three customers accounted for 57.8% of the Company’s accounts receivable balance, and three customers
accounted for more than 45.5% of the Company’s accounts receivable balance as of 31 March 2024.

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 (as defined in Rule 13a-15(e) under the Exchange Act). Disclosure controls and procedures
refer to controls and other procedures designed to ensure that information required to be disclosed in the reports we file or submit
under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules