Company: COOT
Filing Date: 2025-05-30
Form Type: 10-Q
Source: 0001641172-25-013065
Chunk: 56

Company: Australian Oilseeds Holdings Ltd
Filing Date: 2025-05-30
Form: 10-Q
Item: Item 8
Chunk 56
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 We
rely on either observable standalone sales or an expected cost plus a margin approach to determine the standalone selling price of offerings,
depending on the nature of the performance obligation.

For
contracts with customers entered into during the three months ended 31 March 2025 and 2024, revenue from the sales of our products increased
by AUD$3.1 million or 48.9% to AUD$9.4 million for the three months ended on 31 March 2025 compared to AUD$6.3 million for the three
months ended 31 March 2024, primarily due to favorable market conditions resulting from an increase in the demand for cold pressed canola
oil.

Stock-based
Compensation

Following
the Business Combination, the Company has authorized 555,000,000 shares including 500,000,000 Class A Ordinary Shares, 50,000,000 Class
B Ordinary Shares, and 5,000,000 Preference Shares, each of par value $0.0001 per share. In addition, the Company has three classes of
warrants (i.e., Public Warrants, Private Warrants and PIPE Warrants) issued and outstanding.

The
assumptions used in calculating the fair value of stock-based compensation awards represent management’s best estimates, but these
estimates involve inherent uncertainties and the application of management’s judgment. As a result, if factors change and we use
different assumptions, our stock-based compensation expense could be materially different in the future.

Warrant
transactions

PIPE
Warrants to purchase our Ordinary Shares are accounted for as liability or instruments based on the terms of the warrant agreements.
The warrants issued by us are accounted 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