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Share-based payments
 12 Months Ended
Jun. 30, 2023
Text block [abstract]  
Share-based payments
Note 3
3
.
Share-based
payments
All of the options set out below have been issued to employees and directors under the ESOP. During the financial year an expense of $1,159,125 (30 June 2022: $1,674,581) was recognized.
 
    
Number of
options
2023
     
Weighted
average
exercise price
2023
     
Number of
options
2022
     
Weighted
average
exercise price
2022
  
         
Outstanding at the beginning of the financial year
      8,655,500      $ 1.2826        4,219,000      $ 0.8911  
Granted
      7,930,000      $ 0.1785        4,800,000      $ 1.6115  
Forfeited
      (1,550,000 )     $ 1.8977        —        $ 0.0000  
Exercised
      —        $ 0.0000        (25,000 )     $ 0.6700  
Expired
      (255,500 )     $ 1.8977        (338,500 )     $ 1.1123  
    
 
 
              
 
 
           
Outstanding at the end of the financial year
      14,780,000      $ 0.6292        8,655,500      $ 1.2826  
    
 
 
              
 
 
           
Exercisable at the end of the financial year
      6,483,333      $ 0.9572        3,180,500      $ 0.8770  
2023
 
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
      07/08/2017        07/08/2022      $ 0.6700        15,500        —          —          (15,500 )      —    
2
      05/02/2018        05/02/2023      $ 0.7802        240,000        —          —          (240,000 )      —    
3
      13/11/2019        04/01/2024      $ 0.4925        1,200,000        —          —          —         1,200,000  
4
      13/01/2020        13/01/2025      $ 0.8812        200,000        —          —          (12,500 )      187,500  
5
      09/11/2020        09/11/2024      $ 1.1320        1,200,000        —          —          —         1,200,000  
6
      09/11/2020        13/01/2025      $ 0.8812        800,000        —          —          (200,000 )      600,000  
7
      04/01/2021        04/01/2025      $ 1.6900        200,000        —          —          (12,500 )      187,500  
8
      09/09/2021        26/06/2026      $ 1.3650        100,000        —          —          —         100,000  
9
      16/11/2021        16/11/2025      $ 1.6900        1,000,000        —          —          (250,000 )      750,000  
10
      16/11/2021        16/11/2025      $ 2.2400        1,500,000        —          —          (1,000,000 )      500,000  
11
      16/11/2021        16/11/2026      $ 1.5600        800,000        —          —          —         800,000  
12
      01/02/2022        01/02/2027      $ 0.9400        800,000        —          —          —         800,000  
13
      01/02/2022        01/02/2027      $ 0.9400        500,000        —          —          (75,000 )      425,000  
14
      24/05/2022        24/05/2027      $ 0.7800        100,000        —          —          —         100,000  
15
      03/03/2023        03/03/2027      $ 0.1500        —          3,930,000        —          —         3,930,000  
16
      03/05/2023        03/05/2027      $ 0.1870        —          4,000,000        —          —         4,000,000  
                               
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
                                  8,655,500        7,930,000        —          (1,805,500 )      14,780,000  
                               
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Weighted average exercise price
 
    $ 1.2826      $ 0.1785      $ 0.0000      $ 1.8977     $ 0.6292  
At the end of the period the following outstanding options were vested and exercisable:
- Options
in tranches
1 - 2 expired during the year
- Options
in tranches
3 & 6 were vested and exercisable
- Options
in tranches
4, 5, 7 & 9 were vested and exercisable to 75%, apart from those in the above table which have expired
- Options
in tranche
8 were vested and exercisable to 50%, apart from those in the above table which have expired
- Options
in tranches
10 & 16 were vested and exercisable as to 33%, apart from those in the above table which have expired
- Options
in tranches
11, 12, 13 & 14 were vested and exercisable as to 25%, apart from those in the above table which have expired
- Options in tranche 15 were unvested
- Options in tranche 16 were 33% vested
The
weighted average remaining contractual life of options outstanding at 30 June 2023 is 2.995 years.
 
2022
 
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
      05/09/2016        05/09/2021      $ 1.6300        50,000        —          —         (50,000 )      —    
2
      12/10/2016        17/10/2021      $ 1.5600        62,000        —          —         (62,000 )      —    
3
      31/10/2016        01/11/2021      $ 1.3800        12,500        —          —         (12,500 )      —    
4
      21/11/2016       
23/11/2021
      $ 1.3800        50,000        —          —         (50,000 )      —    
5
      07/08/2017        07/08/2022      $ 0.6700        87,000        —          (25,000 )      (46,500 )      15,500  
6
      05/02/2018        05/02/2023      $ 0.7800        320,000        —          —         (80,000 )      240,000  
7
      04/01/2019        04/01/2024      $ 0.4925        37,500        —          —         (37,500 )      —    
8
      13/11/2019       
13/11/2023
      $ 0.4925        1,200,000        —          —         —         1,200,000  
9
      13/01/2020       
13/01/2025
      $ 0.8812        200,000        —          —         —         200,000  
10
      09/11/2020        09/11/2024      $ 1.1320        1,200,000        —          —         —         1,200,000  
11
      09/11/2020        09/11/2024      $ 0.8812        800,000        —          —         —         800,000  
12
      04/01/2021        04/01/2026      $ 1.6900        200,000                 —         —         200,000  
13
      09/09/2021       
26/06/2026
      $ 1.3700        —          100,000        —         —         100,000  
14
      16/11/2021       
16/11/2025
      $ 1.6900        —          1,000,000        —         —         1,000,000  
15
      16/11/2021       
16/11/2025
      $ 2.2400        —          1,500,000        —         —         1,500,000  
16
      16/11/2021       
16/11/2025
      $ 1.5600        —          800,000        —         —         800,000  
17
      01/02/2022        01/02/2027      $ 0.9400        —          800,000        —         —         800,000  
18
      01/02/2022        01/02/2027      $ 0.9400        —          500,000        —         —         500,000  
19
      24/05/2022       
24/05/2027
      $ 0.7800        —          100,000        —         —         100,000  
                               
 
 
     
 
 
     
 
 
    
 
 
    
 
 
  
                                  4,219,000        4,800,000        (25,000 )      (338,500 )      8,655,500  
                               
 
 
     
 
 
     
 
 
    
 
 
    
 
 
  
Weighted average exercise price
 
    $ 0.8911      $ 1.6110      $ 0.6700     $ 1.1123     $ 1.2826  
At the end of the period the following outstanding options
were
vested and exercisable:
- Options in tranche
1-
4 expired during the year
- Options in tranches 1 - 8 were vested and exercisable, apart from those in the above table which have expired
- Options in tranche 9
-10
were vested and exercisable to 50%
- Options in tranche 11 were vested and exercisable to 75%
- Options in tranche
12-14
were vested and exercisable to 25%
- Options in tranche
15-19
were unvested
The weighted average remaining contractual life of options outstanding at 30 June 2022 is 3.048 years.
Employee share options
During the year ended 30 June 2023, 7,930,000 options have been issued to directors and employees by the consolidated entity pursuant to the Company’s Employee Share Option Plan.
 
•  
Tranches 12 & 13 vests 25% 6 months from issue date and then in 3 amounts at 6 monthly intervals from the date of issue.
 
•  
Tranches 14 vests 33% immediately then in two equal amounts annually from the date of grant.
 
•
 
Tranches 15 vests 6 months from issue date then in two equal amounts annually from the date of grant.
 
•
 
Tranches 16 vests 33% immediately then in two equal amounts annually from the date of grant.
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 4 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 2023.
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
 
               
13/11/2019    04/01/2024    $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    13/11/2024    $0.8900    $1.1320    90.00%   —    0.10%   $ 0.413  
09/11/2020    13/01/2025    $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    16/11/2026    $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  
03/01/2023    03/03/2027    $0.1700    $0.1500    80.00%   —    3.64%   $ 0.10137  
03/03/2023    03/03/2027    $0.1700    $0.1500    80.00%   —    3.64%   $ 0.10137  
03/05/2023    03/05/2027    $0.1900    $0.1870    80.00%   —    3.22%   $ 0.11110