Company: COOT
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001493152-25-005620
Chunk: 72

Company: Australian Oilseeds Holdings Ltd
Filing Date: 2025-02-10
Form: 10-Q
Item: Item 2
Chunk 72
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 is inherent in the financial reporting process, actual results could differ from those estimates.

We
believe that the assumptions and estimates associated with the following material accounting policies involve significant judgment and
thus have the most significant potential impact on our Consolidated Financial Statements.

Revenue
Recognition

We
generate revenue from the sale of products and services. There has been no change on our revenue recognition policies is included in
the Form 10-K for the financial year ended 30 June 2024.

Although
most of our sales agreements contain standard terms and conditions, certain agreements contain multiple performance obligations or non-standard
terms and conditions. For customer contracts that contain more than one performance obligation, we allocate the total transaction consideration
to each performance obligation based on the relative stand-alone selling price of each performance obligation within the contract. 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 30 September 2024 and 2023, revenue from the sales of our products
increased by AUD$0.5 million or 6.1% to AUD$10.3 million for the three months ended on 30 September 2024 compared to AUD$9.7 million
for the three months ended 30 September 2023, primarily due to favorable market conditions resulting from an increase in the demand for
cold pressed canola oil.

 39 

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