Company: COOT
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001493152-25-005620
Chunk: 73

Company: Australian Oilseeds Holdings Ltd
Filing Date: 2025-02-10
Form: 10-Q
Item: Item 2
Chunk 73
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 for as liability instruments under IFRS 9 due to the rights of the grantee to require cash settlement.

Private
Warrants and Representative Warrants to purchase units accounted for as liability instruments represent the warrants issued to significant
shareholders and related parties.

Penny
Warrants are a contingently issuable instrument to issue the Company’s shares and are accounted for as a financial liability.

Public
Warrants are accounted for as equity instruments due to our ability to settle the warrants through the issuance of units.

In
order to calculate warrant charges, we used the Monte Carlo simulations, which required key inputs including volatility and risk-free
interest rate and certain unobservable inputs for which there is little or no market data, requiring us to develop our own assumptions.
We estimated the fair value of unvested warrants, considered to be probable to be vesting, at the time. Based on that estimated fair
value, we determined warrant charges, which were recorded as a reduction of the transaction price.

Off-Balance
Sheet Arrangements

As
of 30 September 2024 and 30 June 2024, we had no off-balance sheet arrangements as defined in Instruction 8 to Item 303(b) of Regulation
S-K.

Item
7A. Quantitative and Qualitative Disclosures About Market Risk

We
are exposed to market risk, including changes to interest rates and foreign currency exchange rates.

 40 

Interest
Rate Sensitivity

We
had cash and cash equivalents totaling AUD$2,127,738 and AUD$514,140 as of 30 September 2024, and 30 June 2024, respectively. Cash and
cash equivalents include cash on hand and investments with original maturities of three months or less, are stated at cost, and approximate
fair value. Our investment policy and strategy are focused on preservation of capital, supporting our liquidity requirements, and delivering
competitive returns subject to prevailing market conditions. We were not exposed to material risks due to changes in market interest
rates given the liquidity of the cash and investments with original maturity of three months.

Foreign
Currency Risk

Although
we are exposed to foreign currency risk from our international operations, we do not consider it to have a material impact. Certain transactions
of the Company and its subsidiaries are denominated in currencies other than the functional currency. Foreign currency transactions totaled
$24,009 and $28,097 for the three months ended 30 September 2024 and the year ended 30 June