Company: DLO
Filing Date: 2025-04-24
Form Type: 20-F
Source: 0000950170-25-058197
Chunk: 134

Company: dLocal Ltd
Filing Date: 2025-04-24
Form: 20-F
Item: Item 16K
Chunk 134
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 necessary to settle the present obligation at the end of each reporting period. The present value of the obligation is derived using a pre-tax rate discount rate that reflects current market information and risks specific to the applicable obligation. Increases in provisions resulting from the passage of time are recognized through “ Finance cost”. Provisions are disclosed in the statement of financial position based on their nature.

2.11. Share-based payments and warrants contracts

2.11.1. Share-based payments

Certain key employees have been awarded share-based compensation (“ Participants”) pursuant to the "DLocal Limited amended and restated 2020 Global Share Incentive Plan" discussed in Note 1.2, which consists of the “ Share Option Award Agreements”, “ Restricted Stock Unit Agreements” and “ Performance Share Unit Agreements” (together referred to as the “ Agreements”. For all plans, management commits to grant shares of dLocal to the defined participants.

Under these Agreements, certain employees and members of dLocal’s executive management team were granted share options, restricted stock units (“ RSU”) or ordinary shares that are subject to service-based vesting conditions. PSUs vest in a manner similar to the service conditions of the RSUs, however, vesting is also contingent upon achievement of performance targets (non-market performance conditions) as determined by the Board. The holders of the Options, RSUs or PSUs shall have no right to vote or right to receive dividends or any other rights as a shareholder of the Company in respect of any Shares purchasable upon the exercise of any part of an Option, RSU or PSU nor shall they be deemed to be a class of shareholders or creditors of the Company, until the Participant exercises the Option.

The Group is under no obligation to cash-settle any of the equity awards issued. The awards have been classified within shareholders’ equity.

The cost of share-based compensation is measured using the fair value at the grant date. The cost is expensed together with a corresponding increase in equity over the service period or on the grant date when the grant relates to past services.

The total amount to be expensed is determined by reference to the fair value of the tranche shares granted at the grant date, which is also based on:

• Including any market performance conditions;

• Including the impact of any non-market performance vesting conditions (i. e. remaining an employee of the entity over a specified time), and;

• Including the impact of any non-vesting conditions (i. e. the requirement for participants to save