
Tranche	Grant date	Expiry date		Exercise price		Balance at the start of the year		Granted		Exercised			Expired / lapsed on termination of employment			Balance at the end of the year

1	16/11/2015		16/11/2020	$	2.2000		236,667		—		—			(236,667	)		—
2	05/09/2016		05/09/2021	$	1.6300		50,000		—		—			—			50,000
3	12/10/2016		17/10/2021	$	1.5600		62,000		—		—			—			62,000
4	31/10/2016		01/11/2021	$	1.3800		12,500		—		—			—			12,500
5	21/11/2016		23/11/2021	$	1.3800		50,000		—		—			—			50,000
6	07/08/2017		07/08/2022	$	0.6700		224,000		—		(121,500	)		(15,500	)		87,000
7	05/02/2018		05/02/2023	$	0.7800		440,000		—		(120,000	)		—			320,000
8	04/01/2019		04/01/2024	$	0.4925		250,000		—		(200,000	)		(12,500	)		37,500
9	13/11/2019		13/11/2023	$	0.4925		1,200,000		—		—			—			1,200,000
10	13/01/2020		13/01/2025	$	0.8812		250,000		—		—			(50,000	)		200,000
11	09/11/2020		09/11/2024	$	1.1320		—		1,200,000		—			—			1,200,000
12	09/11/2020		09/11/2024	$	0.8812		—		800,000		—			—			800,000
13	04/01/2021		04/01/2025	$	1.6900		—		200,000		—			—			200,000

							2,775,167		2,200,000		(441,500	)		(314,667	)		4,219,000

Weighted average exercise price						$	0.7970	$	1.0915	$	0.6195		$	1.8473		$	0.8911

At the end of the period the following outstanding options were vested and exercisable:

- Options in tranche 1 have expired during the year

- Options in tranches 2 - 8 were vested and exercisable except for tranche 6 which was vested as to 53%

- Options in tranche 9 were vested as to 1million of the 1.2million options on issue

- Options in tranches

10-12

were 25% vested

- Options in tranche 13 were unvested at year end

The weighted average remaining contractual life of options outstanding at 30 June 2021 is 2.6 years.

Employee share options

During the year ended 30 June 2022, 4,800,000 options have been issued to directors and employees by the consolidated entity pursuant to the Company’s Employee Share Option Plan.

•

Tranche 14 vests as to 25% immediately on issue and then in three equal annual amounts from one year from the date of issue.

•

Tranches 13 & 15 - 19 vest in four equal annual amounts from one year of the date of issue

Vesting conditions for options within all tranches, is based on service period only; i.e. options will only vest if the option holder continues to be a full-time employee with the Company or an Associated Company during the vesting period relating to the option.

Conditions for an option to be exercised:

•

The option must have vested;

•

Option holder must have provided the Company with an Exercise Notice and have paid the Exercise Price for the option;

•

The Exercise Notice must be for the exercise of at least the Minimum Number of Options; and

•

The Exercise Notice must have been provided to the Company and Exercise Price paid before the expiry of 5 years from the date the Option is issued.

Options Valuation

In order to obtain a fair valuation of these options, the following assumptions have been made:

The Black Scholes option valuation methodology has been used with the expectation that the majority of these options would be exercised towards the end of the option term. Inputs into the Black Scholes model includes the share price at grant date, exercise price, volatility, and the risk free rate of a five year Australian Government Bond on grant date.

Risk-free rate and grant date

For all tranches, the risk-free rate of a five-year Australian Government bond on grant date was used. Please refer to the table below for details.

The abovementioned options have various vesting periods and exercising conditions. These options are unlisted as at 30 June 2022.

No dividends are expected to be declared or paid by the consolidated entity during the terms of the options.

The underlying expected volatility was determined by reference to historical data of the Company’s shares over a period of time. No special features inherent to the options granted were incorporated into measurement of fair value.

Based on the above assumptions, the table

below

sets out the valuation for each tranche of options:


Grant date	Expiry date	Share price at Grant Date	Exercise price	Volatility (%)	Dividend yield (%)	Risk free Rate (%)	Fair value per option

07/08/2017	07/08/2022	$0.4300	$0.6700	74.50%	—	1.95%	$0.206
05/02/2018	05/02/2023	$0.5000	$0.7800	74.50%	—	1.95%	$0.200
13/11/2019	13/11/2023	$0.4100	$0.4925	74.50%	—	1.95%	$0.180
13/01/2020	13/01/2025	$0.6200	$0.8812	74.50%	—	1.95%	$0.340
09/11/2020	09/11/2024	$0.8900	$1.1320	90.00%	—	0.10%	$0.413
09/11/2020	09/11/2024	$0.8900	$0.8812	90.00%	—	0.10%	$0.503
04/01/2021	04/01/2025	$1.1850	$1.6900	90.00%	—	0.19%	$0.600
09/09/2021	21/06/2026	$1.4200	$1.3700	76.00%	—	1.50%	$0.880
16/11/2021	16/11/2025	$1.5700	$1.6900	76.00%	—	1.50%	$0.850
16/11/2021	16/11/2025	$1.5700	$2.2400	76.00%	—	1.50%	$0.750
16/11/2021	16/11/2025	$1.5700	$1.5600	76.00%	—	1.50%	$0.970
01/02/2022	01/02/2027	$0.9600	$0.9400	79.00%	—	1.50%	$0.590
24/05/2022	24/05/2027	$0.8000	$0.7800	44.00%	—	2.95%	$0.630