Company: COOT
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001493152-25-005620
Chunk: 31

Company: Australian Oilseeds Holdings Ltd
Filing Date: 2025-02-10
Form: 10-Q
Item: Item 8
Chunk 31
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 Company’s Fair Value on a Recurring Basis

    30
    September

    30
    June 

    Description:
     
    Level

    2024

    2024

    AUD$

    AUD$

    Liabilities:

    Warrant
    liability—Private and Representative Warrants

    3

    12,676

    12,676

    Warrant
    liability – Penny Warrants 

    3

    146,730

    146,730

    Warrant
    liability – Arena Ordinary Share Warrants

    3

    79,207

    79,207

    Total

    238,613

    238,613

The
Private Warrants, Representative’s Warrants, Penny Warrants, and Arena Ordinary Share Warrants are accounted for as liabilities
and are measured at fair value as of each reporting period. Changes in the fair value of the Warrants are recorded in the statements
of operations for each period.

The
Private Warrants, Representative Warrants, Penny Warrants, and Arena Ordinary Share Warrants were valued using a Montel Carlo simulation
model, which is considered to be a Level 3 fair value measurement. Inherent in an options pricing model are assumptions related to expected
share-price volatility, expected life, risk-free interest rate and dividend yield. The Company estimates the volatility of its ordinary
shares based on historical volatility that matches the expected remaining life of the warrants. The risk-free interest rate is based
on the U.S. Treasury zero-coupon yield curve on the grant date for a maturity similar to the expected remaining life of the warrants.
The expected life of the warrants is assumed to be equivalent to their remaining contractual term. The dividend rate is based on the
historical rate, which the Company anticipates remaining at zero.

There
were no transfers between Levels 1, 2 or 3 during the three months ended 30 September 2024 and the year ended 30 June 2024.

The
following table provides quantitative information regarding Level 3 fair value measurements for Private Warrants as of 30 September 2024
and 30 June 2024. The Representative Warrants were valued using similar information, except for the strike price which is USD$12.

 Schedule
of Fair Value Measurements for Private Warrants

    30
    September and 30 June 

    2024

    $USD

    Exercise
    price