ANNUAL Report June 2022 Notes to the Consolidated Financial Statements 36 Terms and Conditions of Contributed Equity Ordinary Shares Ordinary shares have the right to receive dividends as declared and in the event of winding up the Company, to participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up, on the shares held. Ordinary shares entitle their holder to one vote, either in person or by proxy, at a meeting of the Company. Option holders have no voting rights until the options are exercised. (b) Movements in Share Options The following table illustrates the share-based payments expense, number and weighted average exercise prices (WAEP) of, and movements in, share options during the year: Number WAEP $ Balance at 1 July 2021 84,000,000 0.055 782,831 Options recognised as share-based payments expense 2,000,000 0.060 43,097 Options recognised as share issue costs 7,250,000 0.065 146,962 Options recognised as capitalised borrowing costs 17,750,000 0.065 359,802 Amortisation share based payments - - 368,551 Forfeited / cancelled - - - Exercised - - - Expired - - - Balance at 30 June 2022 111,000,000 0.056 1,701,243 The following table illustrates outstanding options that have vested and are exercisable at year end: Number outstanding Number vested and exercisable Exercise price Expiry Date Remaining Contractual Life (Years) Employee Options Issue EQRAB 2,000,000 2,000,000 0.040 05/05/23 0.85 Issue EQRAC 3,000,000 3,000,000 0.060 05/05/23 0.85 Issue EQRAD 2,000,000 2,000,000 0.040 01/07/23 1.00 Issue EQRAE 3,000,000 3,000,000 0.060 01/07/23 1.00 Issue EQRAF 2,000,000 2,000,000 0.040 01/02/24 1.59 Issue EQRAI 12,000,000 6,000,000 0.060 23/06/24 1.98 Issue EQRAJ 10,000,000 5,000,000 0.060 23/06/24 1.98 Issue EQRAH 22,000,000 11,000,000 0.060 25/05/24 1.90 Issue EQRAG 30,000,000 30,000,000 0.432 19/03/24 1.72 Issue EQRAK 25,000,000 25,000,000 0.065 17/09/23 1.22 Outstanding at 30 June 2022 111,000,000 89,000,000 (c) Movements in Performance Rights No performance rights were issued nor outstanding at the end of the reporting period. 13. CONVERTIBLE NOTES On 17 September 2021 the Company issued 6,000,000 convertible notes with an aggregate principal value of $6,000,000. The notes are convertible at the option of the noteholders into ordinary shares at a conversion price of $0.065 per share at any time after issuance and up to the close of business on the maturity date. EQ Resources Limited Annual Report 2022 67
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