Company: COOT
Filing Date: 2025-03-31
Form Type: 10-Q
Source: 0001641172-25-001552
Chunk: 16

Company: Australian Oilseeds Holdings Ltd
Filing Date: 2025-03-31
Form: 10-Q
Item: Item 2
Chunk 16
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 31 December 2024 compared to AUD$10.0 million
for the three months ended 31 December 2023, 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 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 31 December 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