Investor Presentaiton
Armour Energy and controlled entities
armourenergy.com.au
Financial report continued
Notes to the consolidated financial statements continued
NOTE 38. SHARE-BASED PAYMENTS CONTINUED
TYPES OF SHARE-BASED PAYMENTS CONTINUED
Performance shares
The fair value of tranche 2 of the above performance shares at grant date was $28,980. This value was calculated using a Monte
Carlo simulation pricing model applying the following inputs:
Balance at the start of the year
Granted during the year (ii)
Expired during the year
Ajuo osri tuoslód
Consolidated
30 June
2020
$
30 June
Number of performance shares
Exercise price
Share price on grant date
2019
$
Grant date
7,200,000
7,200,000
Expiry date
Volatility
Dividend yield
Risk-free interest rate
Weighted average fair value at grant date
Tranche 2
1,800,000
$-
$0.02
12/06/2020
n/a
103%
0%
0.39%
$0.0161
During the year ended 30 June 2020, 7,200,000 performance shares were awarded to Chief Executive Officer, Mr Bradley Lingo, in
six tranches. The performance shares expire on termination of employment. Grant date for each tranche was 12 June 2020. The fair
value of these performance shares at grant date was $173,160. This value was calculated based on the share price at the date the
performance shares were granted multiplied by the number of performance shares expected to vest, with the exception of tranche
2, which was valued using a Monte Carlo simulation model. Refer below for the key inputs to the model.
Performance Criteria
Number of
Performance
Vesting date
% vested
Fair value at
grant date
Shares
SHARE BASED PAYMENT EXPENSE
Equity settled share-based payments
For the year ended 30 June 2020 $67,534 of other employment benefits were taken as ordinary shares in lieu of cash (2019:
$99,961).
OPTION EXPENSE
There was no share option expense recognised in the statement of profit or loss and other comprehensive income for the year
ended 30 June 2020 (2019: $42,136).
ACCOUNTING POLICY FOR SHARE-BASED PAYMENTS
$0.027
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
4.
5.
On the first Commercial Discovery in the Co-Era Assets
being determined in accordance with recognised standards
in the oil and gas industry and announced by the Company
The VWAP for Shares trading on ASX for 20 consecutive
days is not less than 500% over the closing price for Shares
on the last trading day before the Commencement Date.
The Board approving the entering into of a farm- out or
other commercial agreement in respect of the NT Assets.
The Board approving a refinancing of the FIIG Notes.
The Company achieving a stabilised flow rate of in excess of
14TJ's per day from the Kincora Gas Project
900,000
30/06/2020
1,800,000
12/06/2025
$0.016
1,350,000
31/03/2021
$0.027
1,350,000
31/12/2021
$0.027
900,000
31/12/2021
$0.027
On the first Commercial Discovery on any Licences other
than
6.
900,000
30/06/2023
$0.027
(a) The Kincora Gas Project; and
(b)
The CoEra Assets.
108
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the
rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of cash is
determined by reference to the share price.
The cost of equity-settled transactions is measured at fair value on grant date. Fair value is independently determined using the
Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the
share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest
rate for the term of the option, together with non-vesting conditions that do not determine whether the Group receives the services
that entitle the employees to receive payment. No account is taken of any other vesting conditions.
The cost of equity-settled transactions is recognised as an expense with a corresponding increase in equity over the vesting period.
The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate of the number
of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit or loss for the period
is the cumulative amount calculated at each reporting date less amounts already recognised in previous periods.
109View entire presentation