2013 Apr 15 Annual Report 2012 - Phosphagenics

Notes to the consolidated fi nancial statements
5. SHARE BASED PAYMENTS
The Group provides benefi ts to service providers in the form of share-based payments. Employees render
services in exchange for rights over shares (equity-settled transactions). There are currently two schemes
in place to provide these benefi ts to employees, being the Employee Share Option Plan (ESOP) and the
Employee Conditional Rights Scheme (ECRS).
• The ESOP is designed to align participants’ interests with those of shareholders by increasing
the value of the Company’s shares. Share options carry no rights to dividends and no voting rights.
For options granted under the terms of the ESOP a service period was determined as the most
appropriate criteria to attach to the options given Phosphagenics is still commercialising its products.
There are no other services or performance criteria attached to share based payment options issued
under the terms of the ESOP.
• The ECRS allows eligible employees to be granted Rights to acquire Shares at no cost. The purpose
of the Scheme is to provide a long term incentive to staff as part of a focus to more closely link overall
remuneration to the achievement of performance benchmarks, to encourage direct involvement
and interest in the performance of the Company and to enable the acquisition of a long term equity
interest in the Company by its staff. All employees, including executive and non-executive Directors,
and any individual whom the Board determines to be an eligible participant for the purposes of the
Scheme, are eligible to participate in the Scheme.
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Options held by directors of the parent and its subsidiaries were acquired as part of the original
subscriptions for shares in Phosphagenics Limited in 1999. Subsequently, all options granted to key
management personnel have been issued in accordance with the provisions of the Employee Share
Option Plan (ESOP). All rights granted to key management personnel have been issued in accordance
with the provisions of the Employee Conditional Rights Scheme (ECRS).
Summary of options granted as share based payments
The following table illustrates the number (No.) and weighted average exercise prices (WAEP) of, and
movements in, share options issued during the year.
Item
2012
Options
No.
2012
WAEP
$
2011
Options
No.
2011
WAEP
$
Outstanding at beginning of the year 13,150,000 $0.17 25,450,000 $0.17
Granted during the year - - 1,000,000 $0.17
Forfeited during the year - - (11,100,000) $0.14
Exercised during the year (2,650,000) $0.13 - -
Expired during the year (1,100,000) $0.26 (2,200,000) $0.24
Outstanding at end of the year 9,400,000 $0.15 13,150,000 $0.15
Exercisable at end of the year 9,400,000 $0.15 13,150,000 $0.15
When a participant in the employee share option plan ceases employment prior to the vesting of their share
options, the share options are forfeited unless cessation of employment is due to retirement or death.
A service period was determined as the most appropriate criteria to attach to the options given
Phosphagenics is still developing its products for commercialisation. There is no other service or
performance criteria attached to share based payment options.
PHOSPHAGENICS ANNUAL REPORT 2012