Urbanise.com Annual Report 2019

29. Share-based payments (continued) Financial Year 2018 Grant Date Expiry Date Exercise Price Balance at beginning of year Granted during year Exercised during year Expired/ forfeited during year Balance at end of year Balance vested at end of year 29/09/17 (i)a 30/6/19 $0.00 – 1,684,375 – (337,500) 1,346,875 – 21/11/17 (i)a 30/6/19 $0.00 – 1,867,500 – (1,867,500) – – 29/09/17 (i)b 30/6/19 $0.00 – 1,684,375 – (337,500) 1,346,875 – 21/11/17 (i)b 30/6/19 $0.00 – 1,867,500 – (1,867,500) – – 29/09/17 (ii)a 30/6/20 $0.00 – 1,312,486 – (478,328) 834,158 – 21/11/17 (ii)a 30/6/20 $0.00 – 1,833,332 – (1,583,332) 250,000 – 29/09/17 (ii)b 30/6/20 $0.00 – 1,312,504 – (478,337) 834,167 – 21/11/17 (ii)b 30/6/20 $0.00 – 1,833,334 – (1,583,334) 250,000 – 29/09/17 (ii)c 30/6/20 $0.00 – 1,312,510 – (478,335) 834,175 – 21/11/17 (ii)c 30/6/20 $0.00 – 1,833,334 – (1,583,334) 250,000 – Total – 16,541,250 – (10,595,000) 5,946,250 – On 21 November 2017, a resolution was passed at the Annual General Meeting to issue 16,541,250 performance share rights to Urbanise employees and Directors. There is no issue or exercise price on these performance rights. (i) Vesting condition: Share price a. Tranche 1 – The Share Price of the Company’s shares is to be greater than 20 cents per share (based upon the Volume Weighted Average Price of shares for the last 5 days of trading prior to 30 June 2018). b. Tranche 2 – The Share Price of the Company’s shares is to be greater than 30 cents per share (based upon the Volume Weighted Average Price of shares for the last 5 days of trading prior to 30 June 2019). In the event that the performance criteria applicable to tranche 1 performance rights are not met, the tranche may vest subject to achievement of the tranche 2 performance criteria. In June 2018 and June 2019 vesting conditions were not met. (ii) Vesting condition: Revenue a. Tranche 1 – Reported revenue of greater than AUD12 million in the financial year ending 30 June 2018. b. Tranche 2 – Reported revenue of greater than AUD15 million in the financial year ending 30 June 2019. c. Tranche 3 – Reported revenue of greater than AUD17 million in the financial year ending 30 June 2020. In the event that the performance criteria applicable to tranche 1 and tranche 2 Performance Rights are not achieved, the tranches may vest subject to achievement of the tranche 2 or tranche 3 performance criteria. In June 2018 and June 2019 vesting conditions were not met. Fair value of Performance share rights at grant date Financial Year 2019 Grant Date Fair value of performance shares at grant date No. of performance shares granted Expiry date Share price at grant date Expected volatility of shares Expected dividend yield Risk-free interest rate 24/10/18 $0.028 6,000,000 31/08/19 $0.028 85% 0% 1.95% 24/10/18 $0.028 6,000,000 31/08/20 $0.028 85% 0% 1.95% 24/10/18 $0.028 6,000,000 31/08/21 $0.028 85% 0% 1.95% 21/11/18 $0.046 4,000,000 31/08/19 $0.046 85% 0% 1.95% 21/11/18 $0.046 4,000,000 31/08/20 $0.046 85% 0% 1.95% 21/11/18 $0.046 4,000,000 31/08/21 $0.046 85% 0% 1.95% (i) Expected volatility was determined based on historical volatility over the expected life of the shares. (ii) No share options were excisable at 30 June 2019. Notes to the Consolidated Financial Statements for the year ended 30 June 2019 (continued) 77