Share Options Shares issued as a result of the exercise of options During the financial year the Company issued no new ordinary shares from the exercise of options (2022: 83,778). Proceeds received in the prior year from the exercise of options totalled $50,272. Options issued 650,000 options were issued to staff members under the terms of the IIQ Incentive Option Plan (IOP) during the financial year as follows: – Mr. Mark Edwards was awarded 150,000 upon his appointment to the role of Chief Financial Officer and Company Secretary. These options were granted on 2 November 2022. The options are exercisable at $0.82 per option, vest in three equal tranches – 12, 24 and 36 months from grant date – and expire 2 November 2026. The fair value per option at grant date was $0.2816 (calculated using a Binomial option pricing model). Options are forfeited if Mr. Edwards leaves the employment of INOVIQ before vesting. There are no performance conditions attached to these options. The options were however issued at an exercise price that represented a 57.6% premium to IIQ’s share price at the time of issue. – Dr. Leearne Hinch was awarded 500,000 in her role as Chief Executive Officer. These options were granted on 15 December 2022. The options are exercisable at $1.08 per option, vest in three equal tranches – 12, 24 and 36 months from grant date – and expire 15 December 2026. The fair value per option at grant date was $0.3734 (calculated using a Binomial option pricing model). Options are forfeited if Dr. Hinch leaves the employment of INOVIQ before vesting. There are no performance conditions attached to these options. The options were however issued at an exercise price that represented a 56.5% premium to IIQ’s share price at the time of issue. In the comparative period the below option issues occurred – Investors who took part in the share placement and SPP received one free quoted option for every two shares issued, resulting in 5,909,965 options issued. These options are exercisable at $2.32 and expire 24 August 2023. – At the Company’s 2021 Annual General Meeting (AGM), on 29 November 2021 (option grant date), shareholders approved the issue of 500,000 options to each of the Non-executive Directors. The options were issued under the IIQ IOP. The options were issued in two equal tranches of 250,000 options. The first tranche is exercisable at $2.32 per option and vests (becomes exercisable) when the 7-day volume weighted price of the company’s ordinary shares reaches $2.32 and expire on 30 September 2023. The fair value per option at grant date was $0.193 (calculated using a Monte Carlo option pricing model). The second tranche is exercisable at $3.00 per option and vests (becomes exercisable) when the 7-day volume weighted price of the company’s ordinary shares reaches $3.00 and expire on 30 September 2024. The fair value per option at grant date was $0.234 (calculated using a Monte Carlo option pricing model). There are no performance conditions attached to these options and are subject to continuation of employment except in the event of forced resignation due to illness/death. The options were however issued at an exercise price that represented a 116% and 179% premium, respectively, to IIQ’s share price at the time of issue. – A further 200,000 options were issued to staff members under the terms of the IIQ IOP during the 2022 financial year. Dr. Greg Rice was awarded 150,000 upon his appointment to the role of Chief Scientific Officer (CSO). These options were granted on 4 January 2022. The options are exercisable at $1.73 per option, vest in three equal tranches – 12, 24 and 36 months from issue – and expire 20 September 2025. The fair value per option at grant date was $0.659 (calculated using a Binomial option pricing model). Options are forfeited if Dr. Rice leaves the employment of INOVIQ before vesting. There are no performance conditions attached to these options. The options were however issued at an exercise price that represented a 39% premium to IIQ’s share price at the time of issue. – Dr Peter French was awarded 50,000 options upon his appointment to the role Strategic Technology Advisor. These options were granted on 19 November 2021. The options are exercisable at $1.46 per option, vest 19 November 2022 and expire 19 November 2025. The fair value per option at grant date was $0.801 (calculated using a Binomial option pricing model). These options later lapsed, as vesting conditions were not met. There were no performance conditions attached to these options. The options were however issued at an exercise price that represented a 39% premium to IIQ’s share price at the time of issue. Directors’ Report 32 INOVIQ Limited
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