IGO Interactive Annual Report 2019

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2019 Notes to the consolidated financial statements 30 June 2019 (continued) 25 Share-based payments (continued) Vesting conditions of performance rights granted (continued) Service rights - short-term incentive (STI) scheme (continued) 2019 2018 Number of share rights Weighted average fair value Number of share rights Weighted average fair value Outstanding at the beginning of the year 290,202 3.51 - - Rights issued during the year 320,780 4.21 423,357 3.51 Rights vested during the year (152,650) 3.51 (99,560) 3.51 Rights lapsed during the year (20,646) 3.87 (33,595) 3.51 Outstanding at the end of the year 437,686 4.01 290,202 3.51 The share-based payments expense relating to service rights included in profit or loss for the year totalled $1,116,176 (2018: $956,481). Employee Share Ownership Award In accordance with the terms of the EIP, the Employee Share Ownership Award (ESOA) provides for shares to be issued by the Company to employees for no cash consideration. All employees (excluding executive directors, senior management and other employees entitled to participate in the LTI scheme and non-executive directors) who have been continuously employed by the Group for a period of at least three months prior to 1 July are eligible to participate in the ESOA. Under the ESOA, eligible employees may be granted up to $1,000 worth of fully paid ordinary shares in Independence Group NL annually for no cash consideration. The number of shares issued to participants in the scheme is the offer amount divided by the weighted average price at which the Company's shares are traded on the Australian Securities Exchange for the 20 days up to and including the date of grant. 2019 Number 2018 Number Number of shares issued under the plan to participating employees 25,338 76,452 Each participant was issued with shares worth $1,000 based on the weighted average market price of $4.85 (2018: $3.61). The share-based payments expense relating to EOSA included in profit or loss for the year totalled $122,889 (2018: $275,991). The performance rights will not be subject to any further escrow restrictions once they have vested to the employees. Share trading policy The trading of shares issued to participants under the Company’s EIP is subject to, and conditional upon, compliance with the Company’s employee share trading policy. Non-executive Directors The EIP permits non-executive directors to be eligible employees and therefore to participate in the plan. It is not currently intended that non-executive directors will be issued with performance rights under the EIP and any such issue would be subject to all necessary shareholder approvals. (b) Recognition and measurement Equity-settled transactions The fair values of equity settled awards are recognised in share-based payments expense, together with a corresponding increase in share-based payments reserve within equity, over the period in which the performance conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award (vesting date). Independence Group NL 54 Notes to the consolidated financial statements 30 June 2019 (continued) 25 Share-based payments (continued) Vesting conditions of p rformance rights granted (continued) S rv ce rights - short-term ince tive (STI) scheme ( ti ) 2019 2018 Number of share rights Weighted average fair value Number of share rights Weighted average fair value Outstanding at the beginning of the year 290,202 3.51 - - Rights issued during the year 320,780 4.21 423,357 3.51 Rights vested during the year (152,650) 3.51 (99,560) 3.51 Rights lapsed during the year (20,646) 3.87 (33,595) 3.51 Outstanding at the end of the year 437, 8 4.01 290,202 . The share-based payments expense relating to service rights included in profit or loss for the year totalled $1,116,176 (2018: $956,481). Employee Share Ownership Award In accordance with the terms of the EIP, the Employee Share Ownership Award (ESOA) provides for shares to be issued by the Company to employees for no cash consideration. All employees (excluding executive directors, senior management and other employees entitled to participate in the LTI scheme and non-executive directors) who have been continuously employed by the Group for a period of at least three months prior to 1 July are eligible to participate in the ESOA. Under the ESOA, eligible employees may be granted up to $1,000 worth of fully paid ordin ry shar s in Independence Group NL annually for no cash consideration. The number of shares issued to participants in the scheme is the offer amount divided by the weighted average price at which the Company's shares are traded on the Australian Securities Exchange for the 20 days up to and including the date of grant. 2019 Number 2018 Number Number of shares issued under the plan to participating employees 25,338 76,452 Each participant was issued with shares worth $1,000 based on the weighted average market price of $4.85 (2018: $3.61). The share-based payments expense relating to EOSA included in profit or loss for the year totalled $122,889 (2018: $275,991). The performance rights will not be subject to any further escrow restrictions once they have vested to the employees. Share trading pol cy The trading of shares issued to participants under the Company’s EIP is subject to, and conditional upon, compliance with the Company’s employee share trading policy. Non-executive Directors The EIP permits non-executive directors to be eligible employees and therefore to participate in the plan. It is not currently intended that non-executive directors will be issued with performance rights under the EIP and any such issue would be subject to all necessary shareholder approvals. (b) Rec gnition and me surem nt Equity-settled transaction The fair values of equity settled awards are recognised in share-based payments expense, together with a corresponding increase in share-based payments reserve within equity, over the period in which the performance conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award (vesting date). Independence Group NL 54 Notes to the consolidated financial statements 30 June 2019 (continued) 25 Share-based paym nts (continued) Vesting conditions of performance righ s granted (continued) Employee S lary Sacrifice Share Plan During the current year, and in accordance with the terms of the EIP, the Company introduced an Employee Salary Sacrifice Plan whereby employees, excluding KMP, can purchase up to $5,000 of shares in the Company via salary sacrifice. The C mpany will match any two shares purchased with one share, up to a maximum of $2,500. The number of shares acquired on-market by the Company during the year for the purposes of this plan were 69,970 shares with an average price per share of $4.50. The share rights i ued under the EIP will not be subject to any further escrow restrictions once they have vested to the employees. Share trading policy The trading of shares issued to participants under the Company’s EIP is subject to, and conditional upon, compliance with the Company’s employee share trading policy. Non-executive Directors The EIP permits non-executive directors to be eligible employees and therefore to participate in the plan. It is not currently intended that non-executive directors will be issued with performance rights under the EIP and any such issue would be subject to all necessary shareholder approvals. (b) Recognition and measurement Equity-settled transactions The fair values of equity settled awards are recognised in share-based payments expense, together with a corresponding increase in share-based payments reserve within equity, over the period in which the performance conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award (vesting date). The cost of these equity-settled transactions is measured by reference to the fair value at the date at which they are granted. The fair value is determined with the assistance of a valuation software using a trinomial tree which has been adopted by the Boyle and Law (1994) node alignment algorithm to improve accuracy. In valuing equity-settled transactions, no account is taken of any performance conditions, other than conditions linked to the price of the shares of Independence Group NL (market conditions). The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects: (i) the extent to which the vesting period has expired, and (ii) the number of awards that, in the opinion of the Directors of the Company, will ultimately vest. This opinion is formed based on the best available information at the reporting date. Notes to the consolidated financial statements 30 June 2019 (continued) 25 Share-based payments (continued) Vesting con itions of perfo mance rights granted (continued) Service rights - short-term incentive (STI) scheme (continued) 2019 2018 Number of share rights Weighted average fair value Number of s are rights Weighted average fair value Outstanding at the beginning of the year 290,202 3.51 - - Rights issued during th year 320,780 4.21 423,357 3.51 Rights vested during the year (152,650) 3.51 (99,560) 3.51 Rights lapsed during the year (20,646) 3.87 (33,595) 3.51 Outstanding at the nd of the year 437,686 4.01 290,202 3.51 The share-based payments expense relating to service rights included in profit or loss for the year totalled $1,116,176 (2018: $956,481). Employee Share Ownership Award In accordance with the terms of the EIP, the Employee Share Ownership Award (ESOA) provides for shares to be issued by the Company to employees for no cash consideration. All employees (excluding executive directors, senior management and other employee ntitle to participate in the LTI scheme and non-executive directors) who have been continuously employed by the Group for a period of at least three months prior to 1 July are eligible to participate in the ESOA. Under the ESOA, eligible employees may be granted up to $1,000 worth of fully paid ordinary shares in Independence Group NL annually for no cash consideration. The number of shares issued to participants in the scheme is the offer amount divided by the weighted average price at which the Company's shares are traded on the Australian Securities Exchange for th 20 days up t and including the dat of gr t. 2019 Number 2018 Number Number of shares is ued under the plan to participating e ployees 25,338 76,452 Each participant was issued with shares worth $1,000 based on the weight d average mark t price of $4.85 (2018: $3.61). Th share-based payments expense relating to EOSA included in profit or loss for the year totalled $122,889 (2018: $275,991). The performance rights will not be subject to any further escrow restrictions once they have vested to the employees. Share trading policy The trading of shares issued to participants under the o pany’s EIP is subject to, and conditional upon, co pliance ith the Co pany’s e ployee share trading policy. Non-executive Directors The EIP permits non-executive directors to be eligible e ployees and therefore to participate in the plan. It is not currently intended that non-executive directors ill be issued ith perfor ance rights under the EIP and any such issue ould be subject to all necessary shareholder approvals. (b) ecognition and measure ent Equity-settled transactions The fair values of equity settled a ards are recognised in share-based pay ents expense, together ith a corresponding increase in share-based pay ents reserve ithin equity, over the period in hich the perfor ance conditions are fulfilled, ending on the date on hich the relevant e ployees beco e fully entitled to the a ard (vesting date). Independence Group NL 54 114 — IGO ANNUAL REPORT 2019