Page 92 - Beeks Financial Cloud Group Annual Report 2021

90 Beeks Financial Cloud Group PLC For the year ended 30 June 2021

Notes to the Consolidated Financial Statements

The Group granted a total of 1,071,429 share options to members of its management team on 9th October 2020.

These share options outstanding at the end of the year have the following expiry dates and exercise prices:

Grant 1 Grant 3 Grant 4 Total

Shares 264,706 1,580,838 1,071,429 2,916,973
Date of grant 6th September 2018 17th October 2019 9th October 2020
Exercise price £0.00125 £0.00125 £0.00125

Vesting date 6th September 2021 17th October 2022 9th October 2023

These share options vest under challenging performance conditions based on underlying profitability growth during
the three year period.

The Black Scholes model was used to calculate the fair value of these options, the resulting fair value is expensed over
the vesting period. The following table lists the range of assumptions used in the model:

Grant 1 Grant 3 Grant 4 Total

Shares 264,706 1,580,838 1,071,429 2,916,973
Share price (£) 1.02 0.84 0.945
Volatility 5% 5% 5%
Annual risk free rate 4% 4% 4%
Exercise strike price (£) 0.00125 0.00125 0.00125
Time to maturity (yrs) 1.1667 1.3333 2.3333

The total expense recognised from difference between the nominal value The other reserve arose on the
FINANCE
share based payments transactions of the share capital in Beeks Financial share for share exchange and
on the group’s profit for the year was Cloud Group Limited and the value reflects the difference between
£546,363 (2020: £311,713). of The Group being acquired, Beeks the value of Beeks Financial Cloud
Financial Cloud Limited. Group Limited and the share capital
These share options vest on the of The Group being acquired
achievement of challenging During the prior year £333,000 through the share for share
growth targets. It is management’s was recognised within the merger exchange. Also included in the
intention that the Company will meet reserve, which arose on the share other reserve is the fair value of the
these challenging growth targets for share exchange reflecting the warrants issued on the acquisition
therefore, based on management’s difference between the nominal of VDIWare LLC.
expectations, the share options value of the share capital issued
are included in the calculation of from Beeks Financial Group Plc and Any transaction costs associated
underlying diluted EPS in note 24. the value of the shares issued to with the issuing of shares are
the owners of Velocimetrics Ltd at deducted from share premium, net
21. EQUITY - RESERVES the date of acquisition. of any related income tax benefits.
The foreign currency retranslation
reserve represents exchange gains Share premium represents the 22. CAPITAL AND OTHER
and losses on retranslation of excess over nominal value of the COMMITMENTS
foreign operations. Included in this fair value of consideration received Excluding the contingent liabilities
is revaluation of opening balances for equity shares, net of expenses of associated with the contingent
from prior years. the share issue. consideration (Note 1), there are
no contingent assets or contingent
The merger reserve arose on the share Retained earnings represents liabilities as at 30 June 2021
for share exchange reflecting the retained profits. (2020: nil).