| Share-based Payments |
| Note 19 | Share-based Payments |
The Company has an Incentive Option Plan which
was re-adopted following Shareholder approval in November 2019. Options over unissued shares are issued at the discretion of the Board.
| a) | Options granted, issued, exercised and lapsed during the
year |
During the year ended June 30, 2022 the Company issued 700,000 unlisted
Director options (following shareholder approval) and 140,000 unlisted placement options, details of which can be found at Note 19 b). During the financial year the following options
vested, but were not exercised:
| Date granted |
|
Number of
options Vested |
|
Exercise price |
|
Vesting date |
|
Expiry date |
| N/A |
|
Nil |
|
Nil |
|
N/A |
|
N/A |
| Total |
|
Nil |
|
|
During the reporting period the following options
were exercised:
| Grant Date |
|
Number of
options
exercised |
|
|
Exercise price A$ |
|
|
Vesting date |
|
Expiry date |
| 21 Dec 2016 |
|
|
750,000 |
|
|
$ |
0.10 |
|
|
31 Dec 2018 |
|
31 Dec 2021 |
| 21 Dec 2016 |
|
|
500,000 |
|
|
$ |
0.10 |
1 |
|
26 Oct 2019 |
|
30 Dec 2021 |
| 31 Jul 2018 |
|
|
250,000 |
|
|
$ |
0.50 |
1 |
|
31 Dec 2019 |
|
31 Dec 2022 |
| 31 Jul 2018 |
|
|
250,000 |
|
|
$ |
0.50 |
1 |
|
31 Dec 2020 |
|
31 Dec 2023 |
| 12 Feb 2019 |
|
|
58,333 |
|
|
$ |
0.60 |
|
|
5 Mar 2019 |
|
20 Feb 2022 |
| 27 Nov 2019 |
|
|
500,000 |
|
|
$ |
0.60 |
|
|
4 Dec 2020 |
|
4 Dec 2022 |
| 24 Feb 2020 |
|
|
100,000 |
|
|
$ |
0.50 |
2 |
|
31 Jan 2021 |
|
31 Jan 2022 |
| Total |
|
|
2,408,333 |
|
|
|
|
|
|
|
|
|
| 1 | Options exercised utilising the cashless exercise provisions
of the Option Incentive Scheme. This resulted in the issue of 787,999 ordinary shares. |
| 2 | Options exercised utilising the cashless exercise provisions
of the Option Incentive Scheme. This resulted in the issue of 9,090 ordinary shares. |
| b) | Options on issue at balance date |
The number of options issued as share-based payments outstanding over
unissued ordinary shares at 30 June 2022 is 3,240,000 as follows:
| Grant Date | |
Number of
options
granted | | |
Exercise price
A$ | | |
Vesting date | |
Expiry date |
| 1 Feb 2019 | |
| 200,000 | | |
$ | 0.65 | | |
31 Dec 2019 | |
31 Dec 2022 |
| 1 Feb 2019 | |
| 200,000 | | |
$ | 0.65 | | |
31 Dec 2020 | |
31 Dec 2023 |
| 27 Nov 2019 | |
| 1,000,000 | | |
$ | 0.60 | | |
4 Dec 2020 | |
4 Dec 2022 |
| 19 Oct 2020 | |
| 1,000,000 | | |
$ | 1.60 | | |
19 Oct 2020 | |
19 Oct 2023 |
| 7 Feb 2022 | |
| 140,000 | | |
$ | 1.10 | | |
7 Feb 2022 | |
18 Jan 2025 |
| 7 Feb 2022 | |
| 700,000 | | |
$ | 1.50 | | |
7 Feb 2022 | |
7 Feb 2025 |
| Total | |
| 3,240,000 | | |
| | | |
| |
|
During the current year the following movements
in options over unissued shares occurred for share-based payments:
| | |
2022 | | |
2022 | | |
2021 | | |
2021 | |
| | |
No. | | |
WAEP A$ | | |
No | | |
WAEP A$ | |
| Outstanding at 1 July | |
| 4,873,333 | | |
$ | 1.041 | | |
| 11,450,000 | | |
$ | 0.366 | |
| Granted during the year | |
| 840,000 | | |
$ | 1.433 | | |
| 1,000,000 | | |
$ | 1.200 | |
| Exercised during the year | |
| (2,408,333 | ) | |
$ | 0.316 | | |
| (7,476,667 | ) | |
$ | 0.471 | |
| Forfeited/cancelled during the year | |
| (65,000 | ) | |
$ | 0.600 | | |
| (100,000 | ) | |
$ | 0.500 | |
| Outstanding at 30 June | |
| 3,240,000 | | |
$ | 1.131 | | |
| 4,873,333 | | |
$ | 1.041 | |
| Exercisable at 30 June | |
| 3,240,000 | | |
$ | 1.131 | | |
| 4,873,333 | | |
$ | 1.041 | |
The range of exercise prices for options outstanding at the end of
the year was A$0.60 to A$1.50 (2021: A$0.10 to A$1.60). The weighted average contractual life for unexercised options is 14.6
months (2021: 21.4 months). During the current year the following movements
in options over unissued shares occurred for share-based payments:
| | |
2022 | | |
2022 | | |
2021 | | |
2021 | |
| | |
No. | | |
WAEP A$ | | |
No | | |
WAEP A$ | |
| Outstanding at 1 July | |
| 4,873,333 | | |
$ | 1.041 | | |
| 11,450,000 | | |
$ | 0.366 | |
| Granted during the year | |
| 840,000 | | |
$ | 1.433 | | |
| 1,000,000 | | |
$ | 1.200 | |
| Exercised during the year | |
| (2,408,333 | ) | |
$ | 0.316 | | |
| (7,476,667 | ) | |
$ | 0.471 | |
| Forfeited/cancelled during the year | |
| (65,000 | ) | |
$ | 0.600 | | |
| (100,000 | ) | |
$ | 0.500 | |
| Outstanding at 30 June | |
| 3,240,000 | | |
$ | 1.131 | | |
| 4,873,333 | | |
$ | 1.041 | |
| Exercisable at 30 June | |
| 3,240,000 | | |
$ | 1.131 | | |
| 4,873,333 | | |
$ | 1.041 | |
The range of exercise prices for options outstanding at the end of
the year was A$0.60 to A$1.50 (2021: A$0.10 to A$1.60). The weighted average contractual life for unexercised options is 14.6
months (2021: 21.4 months).
| c) | Subsequent to balance date |
Since the end of the financial year and the date
of this report, no options have been exercised. No options have been cancelled, issued or vested between the end of the financial year
and the date of this report.
| d) | Basis and assumptions used in the valuation of options |
840,000 options (excluding free attaching placement options) were issued
during the financial year and have been valued and expensed in the financial statements over the periods that they vest. The share-based
payments expense for the period of A$138,012 (2021: A$826,769) relates to the fair value of options apportioned over their respective
vesting periods. The options issued during the current reporting
period were valued using the Black-Scholes option valuation methodology, as follows:
| Date granted |
|
Number of
options
granted |
|
|
Exercise
price
A$ |
|
|
Expiry date |
|
Risk free
interest rate
used |
|
|
Volatility
applied |
|
|
Value per
Option
A$ |
|
| 7 Feb 2022 |
|
|
700,000 |
|
|
$ |
1.50 |
|
|
7 Feb 2025 |
|
|
1.39 |
% |
|
|
95.8 |
% |
|
$ |
0.160 |
|
| 7 Feb 2022 |
|
|
140,000 |
|
|
$ |
1.10 |
|
|
18 Jan 2025 |
|
|
1.39 |
% |
|
|
95.8 |
% |
|
$ |
0.184 |
|
Historical volatility at the time of issue has
been used as the basis for determining expected share price volatility, as it is assumed that this is an indicator of future share price
performance, which may not eventuate. (ii) Performance Rights The Company’s Performance Rights Plan was
re-approved by shareholders in December 2020.
| a) | Performance rights granted, vested and lapsed during the
year |
During the financial year ended June 30,
2022, no new performance rights were granted by the Company. 2,000,000 performance rights vested in Mr Vlado Bosanac and were
exercised on 1 March 2022 for 2,000,000 ordinary shares in the Company. 100,000 performance rights, which were due to vest on 6
November 2022 and 6 November 2023 respectively lapsed, due to the employee holding those performance rights resigning from the
Company in June 2022. During the financial year ended 30 June 2021,
the following performance rights were granted:
| Grant Date | |
No of
Rights | | |
Expiry Date | |
Fair Value per
Right at Grant
Date | | |
Vesting |
| 6 Nov 2020 | |
| 50,000 | | |
6 Nov 2026 | |
A$ | 0.85 | | |
6 Nov 2021 |
| 11 Dec 2020 | |
| 10,000,000 | | |
16 Dec 2025 | |
A$ | 0.68-$0.93 | | |
Performance based with 5 milestones |
| Total | |
| 10,050,000 | | |
| |
| | | |
|
During the financial year ended June 30, 2022 the following performance
rights vested and were exercised:
| Grant Date | |
No of
Rights | | |
Expiry Date | |
Fair Value per
Right at Grant
Date | | |
Vesting |
| 3 Mar 2017 | |
| 2,000,000 | | |
3 Mar 2022 | |
A$ | 0.72 | | |
Vested and exercised |
| 3 Sep 2018 | |
| 3,000,000 | | |
3 Sep 2021 | |
A$ | 0.185 | | |
Vested and exercised |
| b) | Performance rights on issue at balance date |
The number of performance rights outstanding over unissued ordinary
shares at 30 June 2022 is as follows:
| Grant Date | |
No of
Rights | | |
Expiry Date | |
Fair Value per
Right at Grant
Date | | |
Vesting |
| 6 Nov 2020 | |
| 50,000 | | |
6 Nov 2026 | |
A$ | 0.85 | | |
Vested, not exercised |
| 11 Dec 2020 | |
| 2,000,000 | | |
16 Dec 2025 | |
A$ | 0.68 | | |
Vested, not exercised |
| 11 Dec 2020 | |
| 2,000,000 | | |
16 Dec 2025 | |
A$ | 0.79 | | |
Vested, not exercised |
| 11 Dec 2020 | |
| 2,000,000 | | |
16 Dec 2025 | |
A$ | 0.85 | | |
Vested, not exercised |
| 11 Dec 2020 | |
| 2,000,000 | | |
16 Dec 2025 | |
A$ | 0.90 | | |
Vested, not exercised |
| 11 Dec 2020 | |
| 2,000,000 | | |
16 Dec 2025 | |
A$ | 0.93 | | |
Vested, not exercised |
| Total | |
| 10,050,000 | | |
| |
| | | |
|
| c) | Subsequent to balance date |
Subsequent to balance date no performance rights
have been granted, exercised, expired or cancelled.
| d) | Basis and assumptions used in the valuation of performance
rights |
Performance rights with vesting criteria based
on length of service were valued using the Company’s share price on the date of grant. The 10,000,000 performance rights subject
to performance-based vesting criteria were independently valued using the Hoadley’s Hybrid ESO Model (a Monte Carlo simulation model)
using the following parameters:
| Milestone | |
Number of
rights granted | | |
Share price
target | | |
Risk free
interest rate
used | | |
Volatility
applied | | |
Value per
Right (cents) | |
| 1 | |
| 2,000,000 | | |
A$ | 1.20 | | |
| 0.04 | % | |
| 125 | % | |
| 67.8 | |
| 2 | |
| 2,000,000 | | |
A$ | 1.30 | | |
| 0.09 | % | |
| 125 | % | |
| 78.7 | |
| 3 | |
| 2,000,000 | | |
A$ | 1.40 | | |
| 0.10 | % | |
| 125 | % | |
| 85.1 | |
| 4 | |
| 2,000,000 | | |
A$ | 1.50 | | |
| 0.22 | % | |
| 125 | % | |
| 90.5 | |
| 5 | |
| 2,000,000 | | |
A$ | 1.70 | | |
| 0.35 | % | |
| 125 | % | |
| 93.1 | |
| e) | Expenses arising from share-based payment transactions |
Total expenses arising from share-based payment
transactions recognised during the year ended 30 June 2022 were as follows:
| | |
A$ | |
| Shares issued for services rendered in relation to the NASDAQ listing | |
| 979,638 | |
| Shares issued to directors as remuneration | |
| 920,000 | |
| Performance rights issued to directors and employees as remuneration | |
| 6,394,571 | |
| Options issued to directors as remuneration | |
| 112,188 | |
| Options issued to advisers as remuneration | |
| 25,824 | |
| | |
| 8,432,221 | |
|