60 INOVIQ Limited 21 SHARE-BASED PAYMENTS (CONTINUED) Movement in the number of share options on issue: 2022 2021 Number of Options Weighted Average Exercise Price ($) Number of Options Weighted Average Exercise Price ($) Total Options Outstanding at the beginning of the year 1,668,145 $ 1 . 4 1 2 566,667 $1.209 Granted 8,109,965* $2.388 1,426,512 $1.323 Forfeited (184,311) $0.610 (86,091) $2.212 Exercised (83,778) $0.600 (238,943) $1 .199 Expired (173,043) $2 . 813 - - Outstanding at year-end 9,336,978* $2.229 1,668,145 $1.257 Exercisable at year-end 7,076,311* $2 . 136 1,273,523 $1 .412 * Includes 5,909,965 options issued to shareholders pursuant to the share placement and SPP completed in August 2021. Options Reserve The number of options granted during the year pursuant to the ESOPwas 2,200,000 (2021: 1,426,512), while 83,778 employee share options were exercised (2021: 238,943) and 357,354 either expired or were forfeited during the financial year (2021: 86,091). The value of employee share options issued during the financial year has been calculated by using either a modified binomial or Monte Carlo option pricing model applying the following inputs: Exercise prices $1.46 and $3.00 Underlying share prices Between $1.075 and $1.245 Days to expiration 662 to 1,461 Days to vesting 259 to 990 Expected share price volatility Between 85% and 109.01% Risk free interest rate Between 0.52% and 4.31% Historical volatility is assumed to be indicative of future volatility however future volatility may not replicate historical volatility. The life of the options is based on the contracted expiry date. Recognised share-based payment transactions Share based payment transactions recognised as operating expenses in the statement of comprehensive income during the financial years were as follows: For the year ended 30 June 2022 $ For the year ended 30 June 2021 $ Reversal of option expense for forfeited options that had not vested(i) (104,013) (5,465) Value of options issued to Sienna Option holders requiring post-merger service - 48,079 Options grant expense for options issued during the year (ii) 335,480 642,783 231,467 685,397 (i) Reversal of option expense for forfeited options that had not vested 184,311 options lapsed without vesting during the financial year (2021: 41,890). (ii) Options grant expense for options issued during the year During the 2022 financial year, the Company issued 2,200,000 options under INOVIQ’s Incentive Option Plan. Of these, 2,000,000 were issued to Non-executive Directors. The options issued to Directors were granted following the approval of shareholders at the 2021 Annual General Meeting. During the 2021 financial year, 166,667 options were issued to the CEO, Dr Leearne Hinch, under the Company’s Incentive Option Plan, in consideration for services provided by Dr Hinch in her role as CEO. Notes to the Financial Statements for the year ended 30 June 2022
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