Company: MOBBW
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001013762-25-003365
Chunk: 130

Company: Mobilicom Ltd
Filing Date: 2025-03-27
Form: 20-F
Item: Item 19
Chunk 130
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 have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed
below.

Share-based payments

The Company has a share-based remuneration scheme
for employees. The fair value of share options is estimated by using the Black-Scholes option pricing model, on the date of grant based
on certain assumptions. Those assumptions are described in the share-based payments note and include, among others, the dividend growth
rate, expected share price volatility and expected life of the options. The fair value of the equity settled options granted is charged
to statement of comprehensive income over the vesting period of each tranche and the credit is taken to equity, based on the Company’s
estimate of shares that will eventually vest.

Financial Liability

The Company measures the fair value of the warrants
issued under August 2022 Nasdaq IPO & listing, and warrants issued under January 2024 registered direct offering on Nasdaq. The fair
value of the warrants is estimated by using the Hull-White option pricing model (trinomial Lattice model), on the date of each grant
and remeasured at each reporting period (December 31, 2024 and 2023) and is based on certain assumptions. Those assumptions include,
among others, the dividend growth rate, expected share price, volatility and expected life of the warrants, early exercise / exercise
multiple, capital structure effects and trinomial steps.

On June 30, 2023, the Company reassessed the valuation
methodology applied to the valuation of the August 2022 warrants, in conjunction with an independent valuation from a third party. August
2022 warrants are trading on Nasdaq and based on current market activity, it was deemed to be in an active market. The directors believe
the quoted share price trading on the Nasdaq (ticker “ MOBBW”) represents a more accurate valuation of the warrants based on
the guidance of IFRS 13 Fair Value Measurement where the fair value hierarchy gives the highest priority to quoted prices in active markets
for identical assets or liabilities. This has resulted in a change of valuation methodology (moving from Level 2 fair value measurement
type to Level 1) that was applied on December 31, 2022, as a change in accounting estimates.

Lease term

The lease term is a significant component in
the measurement of both the right-of-use asset and lease liability. Judgement is exercised