備註 1 – 組織和主要活動

印度尼西亞能源有限公司（以下簡稱“公司”、“IEC”、“我們”和類似術語），透過在香港和印尼的子公司，是一家專注於印尼市場的石油和燃料幣勘探和生產公司。公司目前透過在印尼的子公司持有兩個石油和燃料幣資產：一個生產區塊（“Kruh區塊”）和一個勘探區塊（“Citarum區塊”）。公司還確定了一個潛在的第三個勘探區塊，稱為“Rangkas區域”。2024年6月，公司在其Kruh區塊展開了新的3D地震勘探作業。重要的是，公司預計這項地震工作的結果將使其能夠在2025年在Kruh區塊鑽探一口新的生產井，其餘13口井將於2025年至2028年間鑽探，取決於進行此類活動所需的資金。63,000 英畝Kruh區塊的地震工作已經開始。公司預期這項地震工作的結果將使其能夠在2025年在Kruh區塊鑽探一口新的生產井，其餘13口井將於2025年至2028年間鑽探，前提是有足夠的資金進行此類活動。 所需資金的可用性是否充分，需要進行此項活動。

注意 2 - 重要會計政策摘要

注意 3 – 預付款和其他資產

在 截至2023年12月31日，公司將某些鑽井設備賣給第三方Pt Andam Resorsis Nusantara。截至本6-k表格報告日期，公司尚有$未償還的餘額550,000，預計將在2025年12月前收到。考慮到違約風險，公司截至2023年12月31日記錄了對懷疑賬款的$59,604 備抵金額。 不 對截至2024年6月30日的懷疑賬款提供或撤銷了備抵金額。

注意事項 4 - 石油和天然氣資產，淨值

在截至2024年6月30日的六個月期間，公司發生了總計的發展成本、廢棄和場地恢復準備金，這些費用被資本化為$1,208,284，主要用於發展管理成本以及地質和地球物理研究、地震研究和廢棄和場地恢復(ASR)重新計算。

自2024年和2023年6月30日結束的六個月中，對已擔受耗竭支出的產權進行記錄，金額為$258,850 15.1551,225，分別為7月31日和4月30日的未清餘額。

此外，在截至2024年6月30日的六個月中，公司根據進行的天花板測試，並未記錄任何對油氣資產的減損情況，該測試顯示油氣資產產生的未來淨收入的現值超過了攜帶餘額。

備註 5 - 資產 售後服務和支援財產 淨額

折舊 計提至費用總額為$46,240 15.146,239 分別為2024年6月30日和2023年6月30日結束的六個月。

注意 6 – 營運資本貸款

開啟 2024 年 5 月 10 日，公司借出六個月貸款 在 $ 的金額248,447 與 到期日 二零二四年十一月九日 來自第三方, 努桑塔拉集團科莫迪塔斯 PT, 為 營運資金目的。貸款的利率為百分之十二（12百分比) 每年，根據貸款日期至到期日之主要貸款金額計算。貸款被記錄在其他流動 負債。截至二零二四年六月三十日和二零二三年十二月三十一日，有 $283,295 和 零 該等貸款被分類 分別在其他流動負債下。

註： 7 – 財務負債

於2022年1月21日（「初期結束日期」），公司完成了首期 $ 的初次結算。5,000,000 私募定向增發合共計 $ 的第一批款項（「首批款項」）7,000,000 與L1 Capital全球貨幣機會主基金（「L1 Capital」）根據2022年1月21日與公司和L1 Capital之間的證券購買協議（「購買協議」）的條款，結束了一項私募定向增發。 6% 原始發行折扣高級可轉換票據，金額最高可達 $ （「票據」）和7,000,000 五年期普通股認購權證（「初始認購權證」）的發行價格為每股 $ 的至多股份 383,620 股份的行使價為每股 $，須受調整。截至原購買協議簽署日期，預計在 $ 下將進行票據增資的第二批款項（「第二批款項」）。票據應扣除 6.00 為 $身2,000,000 第二批款項金額為 $）已考慮在各種條件下決定。該票據受到 6.0原始發行折扣為%。除非發生違約事件（如債券中所定義），否則該債券不支付利息。

起始 初步收盤日後120天，公司須開始進行償還債券的月付分期付款，直至到期（或者14期）（"月付款"），這些月付款可以根據公司的選擇以現金或普通股（或現金和普通股的組合）支付，這些普通股的發行價值不得超過兩者中較低者：（i）每股＄6.00 每股或（ii） 90%，取其所規定的十（10）個交易日中最低收盤買盤價的平均值的$每股，並設有每股＄1.20 底價。此外，在適用於債券基礎上的相關普通股的登記聲明生效後的任何時候（該等登記聲明於2022年6月1日宣告生效），該債券可以隨時（全部或部分）由L1 Capital選擇，轉換為通過將L1 Capital選擇轉換的債券未清償本金額部分除以$每股確定的已全額支付和無需徵稅的普通股數目，而該價格按照債券條款的規定進行調整。在出現未糾正的任何違約事件時，公司將有義務在第一次違約事件發生的日期支付給L1 Capital等於修訂債券未清償本金額的百分之一百二十（6.00 ％）的金額。120

在2022年3月4日，公司與L1 Capital簽訂了關於購買協議的首次修訂和一份經修訂與重訂的購股票據（“修訂據”），條款包括增加了第二部分金額從$2,000,000 $5,000,000。在第二部分金額的資金到位後，L1 Capital有權獲得額外的五年期普通股購買權證（“第二授權證”），以$ 383,620 每股購買6.00 美元的普通股（需調整）。

2022年5月16日，該公司和L1 Capital簽署了第二份修訂及重訂資本可轉換擔保票據，修改和重訂了完整的修訂票據（“第二次修訂票據”及與票據和修訂票據一起簡稱為“票據”）。第二次修訂票據規定了二期款項的優先資助，該款項於2022年5月23日資助給該公司，同時將第二份認股權證發給L1 Capital。

會計處理 可轉換票據

領用 2020-06年ASU

2020年8月，FASb發佈ASU No. 2020-06《債務-具轉換及其他期權的債務（主題470-20）和衍生品及避險-實體自身權益合同（主題815-40）》（“ASU 2020-06”）。此更新取消了對帶現金轉換功能的可轉債務和具有有利轉換功能的可轉換工具的分開模型。根據ASU 2020-06的規定，這些功能將與母合同合併。ASU 2020-06對於按照主題815中的衍生品處理的轉換功能沒有影響。此更新還要求應對可轉換工具使用按換股計算法，並在可能以現金或股份結算的工具時，將潛在股份結算的效應包含在稀釋每股盈餘計算中。此更新的修訂對於從2021年12月15日後開始的公眾公司的財政年度以及這些財政年度內的中期期間生效。修訂應通過在實體財政年度開始時通過全面回顧法或修改後回顧法進行適用。允許提前採用。公司已選擇於2022年1月1日生效該標準。

公司評估了與L1 Capital的債券條款，並得出該工具不需要分開，也沒有其他需要分開的衍生工具。公司根據ASC 815-15-25評估了債券的內嵌特徵，並確定最重要的特徵是類似股權的轉換選擇權，這不明確而且不緊密關聯到債務主工具。公司進一步確定它不符合衍生工具的定義，因此不需要分割並單獨以公允價值計量。因此，沒有權益組件，公司將債券記錄為合併資產負債表中長期負債的一個單一負債。

最初的認股權證和第二個認股權證（統稱爲「認股權證」）是與票據有關聯發行的，並且行使這些認股權證不取決於票據的轉換；因此，收入首先根據其公允價值分配給認股權證，剩餘部分分配給票據。

公司發行債券時產生了與債券金額相關的債務發行成本。811,000這些成本根據認定的權證公允價值分配給權證，並將剩餘收益分配給債券，與所收到的總收益進行比較。衍生權證責任相關的債務發行成本視爲發生時支出，在合併利潤表中列爲其他費用。與債券相關的發行成本作爲直接從債券本金中扣除。債務發行和發行成本被記錄爲債務貼現，按照可轉換債務工具期限使用有效利率方法攤銷爲利息費用。

就第二批次而言，由於2022年5月23日（第二批次認股權證發行日期）普通股的收盤價格相對較高，第二批次認股權證的公允價值爲$4,833,325 超過了淨收益（有關認股權的會計處理詳情請見下文）。$133,325 保險損失額度被確認，未分配剩餘款項用於票據。截至2022年12月31日的財政年度，票據兩個批次的總收益支持了K-27和K-28井的石油開採以及供運營資本等一般公司用途。

During the year ended December 31, 2022, $9,900,000 of the total $10,000,000 principal amount of the Notes has been converted into ordinary shares at $6.00 per share at L1 Capital’s election. On July 21, 2023, the Company repaid the remaining $100,000 principal amount of the Notes to L1 Capital in cash. As of June 30, 2024 and December 31, 2023, the carrying value balance of the convertible note was $0.

Accounting for warrants

The Warrants were issued in conjunction with the convertible note by a separate contract, and legally detachable and separately transferrable. The Warrants were exercisable via “cashless” exercise if there is not an effective registration statement covering resale of the ordinary share under the Warrants. The exercise price per ordinary share under the Warrants was $6.00 and subject to certain adjustments which do not meet the criteria for equity treatment in accordance with the guidance contained in ASC 815-40-15-7E. Accordingly at initial recognition, the Company classifies such warrants as liabilities at their fair value. This warrant liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the consolidated statements of operations.

The Company recognized $915,644 for warrant liabilities upon issuance of the Initial Warrant on January 24, 2022. The Company recognized $4,833,325 for warrant liabilities upon issuance of the Second Warrant on May 23, 2022.

The Company utilizes the Black-Scholes option-pricing model to estimate the fair value of the Warrants at each reporting period since the Warrants are not actively traded. The estimated fair value of the Warrant liabilities is determined using Level 3 inputs in accordance with ASC 820, “Fair Value Measurement”. Inherent in the Black-Scholes model are assumptions related to expected stock-price volatility, expected life, risk-free interest rate and dividend yield. The Company estimates the volatility of its ordinary shares based on historical volatility of its own stock price during the period that matches the expected remaining life of the Warrants. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve on the grant date for a maturity similar to the expected remaining life of the Warrants. The expected life of the Warrants is assumed to be equivalent to their remaining contractual term. The dividend rate is based on the historical rate, which the Company anticipates remaining at zero.

During the year ended December 31, 2022, L1 Capital has exercised 325,000 of the Initial Warrant at $6.00 per share while the Company has received $1,950,000 proceeds from exercise of these warrants. During six months ended June 30, 2024, no warrant was exercised. As of June 30, 2024 and December 31, 2023, there were 442,240 warrants issued and outstanding.

NOTE 8 – OPERATING LEASES

The Company accounts for leases in accordance with ASC Topic 842, Leases (“ASC 842”). All contracts are evaluated to determine whether or not they represent a lease. A lease conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company has operating leases primarily consisting of facilities with remaining lease terms of one year to three years. The lease term represents the period up to the early termination date unless it is reasonably certain that the Company will not exercise the early termination option.

Leases are classified as finance or operating in accordance with the guidance in ASC 842. The Company does not hold any finance leases as of June 30, 2024 and December 31, 2023.

The Company also has certain short-term leases related to equipment and tools. A short-term lease is a lease with a term of 12 months or less and does not include the option to purchase the underlying asset that the Company would expect to exercise. The Company has elected to adopt the short-term lease exemption in ASC 842 and as such has not recognized a “right of use” asset or lease liability for these short-term leases.

The Company’s lease agreements generally do not provide an implicit borrowing rate, therefore the incremental borrowing rate (“IBR”) on a collateralized basis for a similar term as the underlying lease was used at lease commencement date for purposes of determining the present value of lease payments. As of June 30, 2024, there was no update to an incremental borrowing rate at 10%, which was a 3-year tenure secured borrowing rate as quoted by a local bank.

NOTE 9 – TAXES

The current and deferred components of the income tax provision which are substantially attributable to the Company’s subsidiaries in Indonesia. Due to the unrecovered expenditures on the Company’s Kruh Block operations, there was no provision for income taxes for the six months ended June 30, 2024 and 2023, respectively.

The effective tax rate is based on expected income and statutory tax rates. For interim financial reporting, the Company estimates the annual tax rate based on projected taxable income for the full year and records an interim income tax provision in accordance with guidance on accounting for income taxes in an interim period. As the year progresses, the Company refines the estimates of the year’s taxable income as new information becomes available. The Company’s effective tax rates for the six months ended June 30, 2024 and 2023 were 0% and 0%, respectively.

The Company did not incur any interest and penalties related to potential underpaid income tax expenses.

NOTE 10 – SHARE BASED COMPENSATION EXPENSES

On January 30, 2024, the Company issued 60,000 of the Company’s restricted ordinary shares to Frank Ingriselli, the Company’s President, pursuant to his employment agreement with the Company, with 30,000 shares vesting on July 1, 2024 and 30,000 shares vesting on January 1, 2025. Such ordinary shares were valued at $2.70 per share, which was based on the closing price of the shares traded on the NYSE American exchange on January 30, 2024.

NOTE 11 – EQUITY

As of June 30, 2024 and December 31, 2023, there were 10,349,266 and 10,142,694 of ordinary shares, $0.00267 par value per share, issued and outstanding.

NOTE 12 – COMMITMENTS AND CONTINGENCIES

Litigation

From time to time, the Company may be subject to routine litigation, claims, or disputes in the ordinary course of business. Litigation or any other legal or administrative proceeding, regardless of the outcome, is likely to result in substantial cost and diversion of our resources, including our management’s time and attention. The Company defends itself vigorously in all such matters. In the opinion of management, no pending or known threatened claims, actions or proceedings against the Company are expected to have a material adverse effect on its financial position, results of operations or cash flows. However, the Company cannot predict with certainty the outcome or effect of any such litigation or investigatory matters or any other pending litigation or claims. There can be no assurance as to the ultimate outcome of any such lawsuits and investigations. The Company has no significant pending litigation as of June 30, 2024.

Commitments

As a requirement to acquire and maintain the operatorship of oil and gas blocks in Indonesia, the Company follows a work program and budget that includes firm capital commitments.

Currently, Kruh Block is operated under a KSO until May 2030, which was extended to 2035 in August 2023. The Company has material commitments related to its development and exploration activities in the Kruh Block and material commitments in regard to the exploration activity in the Citarum Block under a Production Sharing Contract with the Indonesian Special Task Force for Upstream Oil and Gas Business Activities (known as SKK Migas) (the “PSC”). The following table summarizes future commitments amounts on an undiscounted basis as of June 30, 2024 for all the planned expenditures to be carried out in Kruh Block and Citarum Block (this table takes into account the Company’s updated seismic and drilling plans for Kruh Block):

NOTE 13 – LIQUIDITY AND GOING CONCERN

The Company reported a net loss of $2,099,146 and net cash used in operating activities of $700,941 for the six months ended June 30, 2024. In addition, the Company had an accumulated deficit of $41,682,583 and working capital of $2,432,159 as of June 30, 2024. The Company’s operating results for future periods are subject to numerous uncertainties and it is uncertain if the Company will be able to reduce or eliminate its net losses and achieve profitability for the foreseeable future. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

The Company has financed the operations primarily through cash flow from operations, loans from banks, and proceeds from equity instrument financing, where necessary. On July 22, 2022, the Company entered into an At The Market Offering Agreement (the “ATM Agreement”) with H.C. Wainwright & Co., LLC (the “Sales Agent”), acting as its sales agent, pursuant to which the Company may offer and sell, from time to time, to or through the Sales Agent, ordinary shares having an aggregate gross offering price of up to $20,000,000. The ATM Agreement was amended on March 22, 2024 (“ATM Amendment No.1”), pursuant to which the Company may sell ordinary shares with an aggregate gross offering price of up to $9,600,000. The Company received net proceeds of $323,934 through issuance of ordinary shares by such ATM offering as of June 30, 2024. See Note 14 for information on additional funds raised via the ATM Agreement.

As of October 24, 2024, the Company had approximately $5.61 million of cash which is placed with financial institutions and is unrestricted as to withdrawal or use. Management’s plan for mitigating the conditions of substantial doubt about the Company’s ability to continue as a going concern includes a combination of improving operational efficiency, cost reductions, debt and equity. In June 2024, new 3D seismic exploratory operations at the Company’s 63,000 acre Kruh Block commenced. Importantly, the Company anticipates that the results of this seismic work will allow it to drill one new production well at Kruh Block in early 2025, with the remaining 13 wells to be drilled between 2025 and 2028, subject to the availability of funding necessary to conduct such activity. The Company currently does not have any outstanding short-term or long-term bank borrowings balance. Management expects that it will be able to obtain new bank loans based on past experience and the Company’s good credit history. The Company intends to meet its cash requirements for the 12 months following the date of the issuance of the condensed consolidated financial statements through operations and the foregoing potential funding opportunities.

The Company believes that the Company’s current cash and cash equivalents and anticipated cash flows from operating and financing activities will be sufficient to meet its anticipated working capital requirements and commitments for at least the next 12 months after the issuance of the Company’s unaudited condensed consolidated financial statements. The Company has prepared the condensed consolidated financial statements on a going concern basis. If the Company encounters unforeseen circumstances that place constraints on its capital resources, management will be required to take various measures to conserve liquidity. Management cannot provide any assurance that the Company will be able to raise additional capital if needed.

NOTE 14 – SUBSEQUENT EVENTS

The Company evaluated all events that occurred up to October 24, 2024 and determined that no events that would have required adjustment or disclosure in the condensed consolidated financial statements except the following.

On August 22, 2024, 60,000 restricted ordinary shares that were issued to Frank Ingriselli, the Company’s President, as compensation became unrestricted.

As of the date of these interim condensed financial statements, a total of 2,981,253 ordinary shares have been issued through ATM and the Company has received aggregate net proceeds of $7,794,843 from January to September 2024   through issuance of ordinary shares through the ATM offering. A significant majority of these ordinary shares were issued subsequent to June 30, 2024. As such, as of October 24, 2024, the Company has approximately $5.61 million in cash and cash equivalents.