Unaudited Condensed Consolidated Statement of Cash Flows

For the six months to 30 June 2021

 

 

				Notes		Unaudited six months ended 30 Jun 2021		Unaudited six months ended 30 Jun 2020		Audited period ended 31 Dec 2020
						€		€		€
Cash flows from operating activities
		Loss for the period				(427,590)		(487,441)		(852,042)
	Adjustments for:
		Depreciation				-		2,803		3,733
		Interest receivable and similar income				(113)		(180)		(228)
		Movement in trade and other receivables				(164,078)		17,386		(4,961)
		Movement in trade and other payables				56,619		(57,657)		(72,067)
		Equity settled share-based payment				25,606		79,599		151,294
	Net cash flows from operating activities					(509,556)		(445,490)		(774,271)
Cash flow from investing activities
		Expenditure on intangible assets				(263,497)		(35,393)		(196,982)
		Interest received				113		180		228
	Net cash from investing activities					(263,384)		(35,213)		(196,754)
Cash flow from financing activities
		Proceeds from the issue of new shares				1,250,449		638,409		3,130,705
		Commission paid from the issue of new shares				(69,206)		(32,443)		(140,490)
	Net cash from financing activities					1,181,243		605,966		2,990,215
Increase in cash and cash equivalents						408,303		125,263		2,019,190
Exchange rate adjustment on cash and
cash equivalents						19,473		(986)		(38,693)
Cash and cash equivalents at beginning
of the period				10		2,287,172		306,675		306,675
Cash and cash equivalents at end of
the period				10		2,714,948		430,952		2,287,172

 

 

 

Unaudited Notes to the Condensed Financial Statements

For the six months to 30 June 2021

 

1.         General information

 

Great Western Mining Corporation PLC ("the Company") is a company domiciled in the Republic of Ireland. The Half Yearly Report and Unaudited Condensed Consolidated Financial Statements ('the half yearly financial statements') of the Company for the six months ended 30 June 2021 comprise the results and financial position of company and its subsidiaries ("the Group").

 

The Group half yearly financial statements were authorised for issue by the Board of Directors on 29 September 2021.

 

Basis of preparation

The half yearly financial statements for the six months ended 30 June 2021 are unaudited. The financial information presented herein does not amount to statutory financial statements that are required by Chapter 4 part 6 of the Companies Act 2014 to be annexed to the annual return of the company. The statutory financial statements for the financial year ended 31 December 2020 were annexed to the annual return and filed with the Registrar of Companies. The audit report on those financial statements was unqualified.

 

The Group half yearly financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union ("EU").

 

The financial information contained in the half yearly financial statements have been prepared on the historical cost basis, except for the decommissioning provision, share-based payments and warrants, which are based on fair values determined at the grant date. The accounting policies have been applied consistently in accordance with the accounting policies set out in the annual report and financial statements for the year ended 31 December 2020 except as outlined below.

 

Accounting policies

The accounting policies adopted are consistent with those of the annual Financial Statements for the year ended 31 December 2020. New and amended standards that became applicable for the Group in the current reporting period have not resulted in changes to accounting policies or retrospective adjustments.

 

Use of estimates and judgements

The preparation of half-yearly financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources.

 

In particular, significant areas of estimation uncertainty in applying accounting policies that have the most significant effect on the amount recognised in the financial statements are in the following area:

 

•          Note 13 - Share based payments

•          Note 14 - Share warrants - financial liability

 

In particular, significant areas of critical judgements in applying accounting policies that have the most significant effect on the amount recognised in the financial statements are in the following areas:

 

•          Note 7 - Property, plant and equipment; consideration of impairment

•          Note 8 - Intangible asset; consideration of impairment

•          Note 11 - Trade and other payables - Decommissioning provision.

2.         Going concern

 

The financial statements of the Group are prepared on a going concern basis.

 

In order to assess the appropriateness of the going concern basis in preparing the financial statements for the six months ended 30 June 2021, the Directors have considered a time period of at least twelve months from the date of approval of these financial statements. 

 

The Group incurred an operating loss during the half-year ended 30 June 2021. As the Group is not generating revenues, an operating loss is expected for the next twelve months.  However at the balance sheet date, the Group had cash and cash equivalents amounting to €2.71 million which includes approximately €1.18 million raised in the period which the Board considers will enable the Group to meet continuing operating expenditure and the planned work programme.

 

The future of the Company is dependent on the successful outcome of its exploration activities and implementation of revenue-generating operations. The Directors believe that the Group's ability to make additional capital expenditure on its claims interests in Nevada can be assisted if necessary by raising additional capital or from future revenues. The Directors have taken into consideration the Company's successful completion of placings and the exercise of warrants by warrant holders during 2020 and 2021 to provide additional cash resources. 

 

The Directors have concluded that the Group will have sufficient resources to continue as a going concern for the period of assessment period of not less than 12 months from the date of approval of the unaudited condensed consolidated financial statements without material uncertainties. Accordingly, the unaudited condensed consolidated financial statements have been prepared on a going concern basis and do not include any adjustments that would be necessary if this basis were inappropriate.

 

3.         Segment information

 

The Group has one principal reportable segment, Nevada, USA, which represents the exploration for and development of copper, silver, gold and other minerals in Nevada, USA.

 

Other operations are disclosed under "Corporate Activities" which includes cash resources held by the Group and other operational expenditure incurred by the Group. These assets and activities are not within the definition of an operating segment.

 

In the opinion of the Directors the operations of the Group comprise one class of business, being the exploration and development of copper, silver, gold and other minerals. The Group's main operations are located within Nevada, USA. The information reported to the Group's chief executive officer (the Executive Chairman), who is the chief operating decision maker, for the purposes of resource allocation and assessment of segmental performance is particularly focussed on the exploration activity in Nevada.

 

It is the opinion of the Directors, therefore, that the Group has only one reportable segment under IFRS 8 'Operating Segments', which is exploration carried out in Nevada. Other operations "Corporate Activities" includes cash resources held by the Group and other operational expenditure incurred by the Group. These assets and activities are not within the definition of an operating segment.

 

Information regarding the Group's results, assets and liabilities is presented below.

 

Segment results

 

		Unaudited 6 months ended 30 Jun 2021 €		Unaudited 6 months ended 30 Jun 2020 €		Audited year ended 31 Dec 2020 €
Exploration activities - Nevada		(5,382)		(8,598)		(12,865)
Corporate activities		(422,208)		(478,843)		(839,177)
Consolidated loss before tax		(427,590)		(487,441)		(852,042)

 

Segment assets

 

		Unaudited 6 months ended 30 Jun 2021 €		Unaudited 6 months ended 30 Jun 2020 €		Audited year ended 31 Dec 2020 €
Exploration activities - Nevada		6,986,794		6,287,461		6,615,904
Corporate activities		2,509,019		455,034		2,036,724
Consolidated total assets		9,495,813		6,742,495		8,352,628

 

Segment liabilities

 

		Unaudited 6 months ended 30 Jun 2021 €		Unaudited 6 months ended 30 Jun 2020 €		Audited year ended 31 Dec 2020 €
Exploration activities - Nevada		225,372		4,111		86,571
Corporate activities		559,317		288,666		346,432
Consolidated total liabilities		784,689		292,777		433,003

 

The Group operates in three principal geographical areas - Republic of Ireland (country of residence of Great Western Mining Corporation PLC), Nevada, U.S.A. (country of residence of Great Western Mining Corporation, Inc., a wholly owned subsidiary of Great Western Mining Corporation PLC) and the United Kingdom (country of residence of GWM Operations Limited, a wholly owned subsidiary of Great Western Mining Corporation PLC).

 

The Group has no revenue. Information about the Group's non-current assets by geographical location are detailed below:

 

		Unaudited 6 months ended 30 Jun 2021 €		Unaudited 6 months ended 30 Jun 2020 €		Audited year ended 31 Dec 2020 €
Nevada - exploration activities		6,516,883		6,233,986		5,965,552
Republic of Ireland		-		-		-
United Kingdom		-		-		-
		6,516,883		6,233,986		5,965,552

 

4.         Finance income

 

		Unaudited 6 months ended 30 Jun 2021 €		Unaudited 6 months ended 30 Jun 2020 €		Audited year ended 31 Dec 2020 €
Bank interest receivable		113		180		228
		113		180		228

 

5.         Income tax

 

The Group has not provided any tax charge for the six months periods ended 30 June 2021 and 30 June 2020 or the year ended 31 December 2020. The Group has accumulated losses which are expected to exceed profits earned for the foreseeable future.

 

6.         Loss per share

 

Basic earnings per share

The basic and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows:

 

		Unaudited 6 months ended 30 Jun 2021 €		Unaudited 6 months ended 30 Jun 2020 €		Audited year ended 31 Dec 2020 €
Loss for the period		(427,590)		(487,441)		(852,042)
Number of ordinary shares at start of period		3,070,714,550		1,122,055,459		1,122,055,459
Number of ordinary shares issued during the period		506,795,455		535,909,091		1,948,659,091
Number of ordinary shares at end of period		3,577,510,005		1,657,964,550		3,070,714,550
Weighted average number of ordinary shares for the purposes of basic earnings per share		3,458,536,520		1,365,161,520		1,844,253,806
Basic loss per ordinary share (cent)		(0.0001)		(0.0004)		(0.001)

 

Diluted earnings per share

There were no potentially dilutive ordinary shares that would increase the basic loss per share.

 

7.         Property, plant and equipment

 

		Unaudited 6 months ended 30 Jun 2021 €		Unaudited 6 months ended 30 Jun 2020 €		Audited year ended 31 Dec 2020 €
Cost
Opening cost		86,432		94,410		94,410
Exchange rate adjustment		2,814		303		(7,978)
		89,246		94,713		86,432
Depreciation
Opening depreciation		19,820		17,854		17,854
Charge for period		-		2,803		3,733
Exchange rate adjustment		645		57		(1,767)
		20,465		20,714		19,820
Net book value
Opening net book value		66,612		76,556		76,556
Closing net book value		68,781		73,999		66,612

 

8.         Intangible assets

 

		Unaudited 6 months ended 30 Jun 2021 €		Unaudited 6 months ended 30 Jun 2020 €		Audited year ended 31 Dec 2020 €
Cost
Opening cost		5,898,940		6,106,347		6,106,347
Additions		368,557		35,393		196,982
Increase in decommissioning cost		4,969		-		75,287
Exchange rate adjustment		175,636		18,247		(479,676)
		6,448,102		6,159,987		5,898,940
Amortisation
Opening amortisation		-		-		-
Charge for period		-		-		-
Exchange rate adjustment		-		-		-
		-		-		-
Net book value
Opening net book value		5,898,940		6,106,347		6,106,347
Closing net book value		6,448,102		6,159,987		5,898,940

 

The Directors have reviewed the carrying value of the exploration and evaluation assets. These assets are carried at historical cost and have been assessed for impairment in particular with regards to the requirements of IFRS 6 'Exploration for and Evaluation of Mineral Resources' relating to remaining licence or claim terms, likelihood of renewal, likelihood of further expenditures, possible discontinuation of activities over specific claims and available data which may suggest that the recoverable value of an exploration and evaluation asset is less than carrying amount. The Directors also considered other factors in assessing potential impairment including cash available to the Group, commodity prices and markets, taxation and regulatory regime, access to equipment and services and the impact of Covid-19 restrictions.  The Directors are satisfied that no impairment is required as at 30 June 2021. The realisation of the intangible assets is dependent on the successful identification and exploitation of copper, silver, gold and other mineral in the Group's licence area. This is dependent on several variables including the existence of commercial mineral deposits, availability of finance and mineral prices.

 

9.         Trade and other receivables

 

		Unaudited 6 months ended 30 Jun 2021 €		Unaudited 6 months ended 30 Jun 2020 €		Audited year ended 31 Dec 2020 €
Amounts falling die within one year:
Other debtors		191,782		30,453		61,399
Prepayments		72,200		47,104		38,505
		263,982		77,557		99,904

All amounts above are current and there have been no impairment losses during the period (30 June 2019: €Nil, 31 December 2020: €Nil).

 

10.       Cash and cash equivalents

 

For the purposes of the consolidated statement of cash flows, cash and cash equivalents include cash in hand, in bank and bank deposits with maturity of less than three months.

 

		Unaudited 6 months ended 30 Jun 2021 €		Unaudited 6 months ended 30 Jun 2020 €		Audited year ended 31 Dec 2020 €
Cash in bank and in hand		355,498		29,585		307,658
Short term bank deposits		2,359,450		401,367		1,979,514
		2,714,948		430,952		2,287,172

 

11.       Trade and other payables

		Unaudited 6 months ended 30 Jun 2021 €		Unaudited 6 months ended 30 Jun 2020 €		Audited year ended 31 Dec 2020 €
Amounts falling die within one year:
Trade payables		50,773		24,439		8,285
Other payables		3,995		755		670
Accruals		196,093		58,267		80,235
Other taxation and social security		12,880		8,862		12,872
Share warrant provision		440,691		164,396		255,654
Share option provision		-		36,058		-
Decommissioning provision		80,257		-		75,287
		784,689		292,777		433,003

The Group has financial risk management policies in place to ensure that payables are paid within the pre-agreed credit terms.

 

12.       Share capital

 

 

		No of shares		Value of shares
				€
Authorised at 1 January 2020		2,700,000,000		270,000
Authorised at 30 June 2020		2,700,000,000		270,000
Authorised at 1 July 2020		2,700,000,000		270,000
Increase in authorised share capital		2,300,000,000		230,000
Authorised at 1 December 2020		5,000,000,000		500,000
Authorised at 1 January 2021		5,000,000,000		500,000
Increase in authorised share capital		2,000,000,000		200,000
Authorised at 30 June 2021		7,000,000,000		700,000

 

		Number of ordinary shares of €0.0001 each		Share capital		Share premium		Total capital
				€		€		€
Issued, called up and fully paid:
At 1 January 2020		1,122,055,459		112,205		9,687,151		9,799,356
Ordinary shares issued		535,909,091		53,591		584,818		638,409
At 30 June 2020		1,657,964,550		165,796		10,271,969		10,437,765
Issued, called up and fully paid:
At 1 July 2020		1,657,964,550		165,796		10,271,969		10,437,765
Ordinary shares issued		1,000,000,000		100,000		1,379,386		1,479,386
Ordinary shares issued on exercise of warrants		412,750,000		41,275		716,717		757,992
Released on exercise of warrants		-		-		175,534		175,534
At 31 December 2020		3,070,714,550		307,071		12,543,606		12,850,677
Issued, called up and fully paid:
At 1 January 2021		3,070,714,550		307,071		12,543,606		12,850,677
Ordinary shares issued		454,545,455		45,455		916,611		962,066
Ordinary shares issued on exercise of warrants		46,250,000		4,625		86,203		90,828
Ordinary shares issued on exercise of options		6,000,000		600		5,591		6,191
Released on exercise of warrants		-		-		20,016		20,016
At 30 June 2021		3,577,510,005		357,751		13,572,027		13,929,778

 

On 5 February 2020, the Company completed a placing of 12,500,000 new ordinary shares of €0.0001 at a price of £0.0011 (€0.0013) per ordinary share, raising gross proceeds of £13,750 (€16,283) and increasing share capital by €1,250. The premium arising on the issue amounted to €15,033.

 

On 12 March 2020, the Company completed a placing of 290,909,091 new ordinary shares of €0.0001 at a price of £0.0011 (€0.0012) per ordinary share, raising gross proceeds of £320,000 (€361,080) and increasing share capital by €29,091. The premium arising on the issue amounted to €331,989.

 

On 3 June 2020, the Company completed a placing of 217,500,000 new ordinary shares of €0.0001 at a price of £0.0010 (€0.0011) per ordinary share, raising gross proceeds of £217,500 (€244,204) and increasing share capital by €21,750. The premium arising on the issue amounted to €222,454. In addition, on 3 June 2020, the Company issued 15,000,000 new ordinary shares of €0.0001 at the placing price of £0.0010 for services provided to the Company. The issue increased share capital by €1,500 and share premium by €15,342.

 

On 30 July 2020, the Company completed a placing of 450,000,000 new ordinary shares of €0.0001 at a price of £0.0010 (€0.0011) per ordinary share, raising gross proceeds of £450,000 (€498,516) and increasing share capital by €45,000. The premium arising on the issue amounted to €368,519. The share issue included warrants granted giving the right to acquire 225,000,000 Ordinary shares of €0.0001 at an exercise price of £0.0020 with a fair value of €84,997. Details of issues of shares during the period ended 30 June 2021 arising from the exercise of these warrants are detailed within this note.

 

On 24 September 2020, the Company completed the issue of 50,000,000 new ordinary shares following the exercise of warrants granted in conjunction with the placing in November 2019. The exercise price was £0.0016 (€0.0018) per ordinary share, raising gross proceeds of £80,000 (€87,692) and increasing share capital by €5,000. The premium arising on the issue amounted to €82,692.

 

On 28 September 2020, the Company completed the issue of 200,000,000 new ordinary shares following the exercise of warrants granted in conjunction with the placing in November 2019. The exercise price was £0.0016 (€0.0018) per ordinary share, raising gross proceeds of £320,000 (€353,560) and increasing share capital by €20,000. The premium arising on the issue amounted to €333,560.

 

On 8 October 2020, the Company completed the issue of 27,000,000 new ordinary shares following the exercise of broker warrants granted in conjunction with the placing in July 2020. The exercise price was £0.0010 (€0.0011) per ordinary share, raising gross proceeds of £27,000 (€29,659) and increasing share capital by €2,700. The premium arising on the issue amounted to €26,959. In addition the Company issued 10,000,000 new ordinary shares following the exercise of warrants granted in conjunction with the placing in July 2020. The exercise price was £0.0020 (€0.0011) per ordinary share, raising gross proceeds of £20,000 (€21,969) and increasing share capital by €1,000. The premium arising on the issue amounted to €20,969.

 

On 14 October 2020, the Company completed the issue of 25,000,000 new ordinary shares following the exercise of warrants granted in conjunction with the placing in July 2020. The exercise price was £0.0020 (€0.0022) per ordinary share, raising gross proceeds of £50,000 (€55,313) and increasing share capital by €2,500. The premium arising on the issue amounted to €52,813.

 

On 30 October 2020, the Company completed the issue of 31,250,000 new ordinary shares following the exercise of warrants granted in conjunction with the placing in November 2019. The exercise price was £0.0016 (€0.0018) per ordinary share, raising gross proceeds of £50,000 (€55,427) and increasing share capital by €3,125. The premium arising on the issue amounted to €52,302.

 

On 3 November 2020, the Company completed the issue of 69,500,000 new ordinary shares following the exercise of warrants granted in conjunction with the placing in July 2020. The exercise price was £0.0020 (€0.0022) per ordinary share, raising gross proceeds of £139,000 (€154,372) and increasing share capital by €6,950. The premium arising on the issue amounted to €147,422.

 

On 24 November 2020, the Company completed a placing of 550,000,000 new ordinary shares of €0.0001 at a price of £0.0020 (€0.0022) per ordinary share, raising gross proceeds of £1,100,000 (€1,235,788) and increasing share capital by €55,000. The premium arising on the issue amounted to €1,010,867. The share issue included warrants granted giving the right to acquire 275,000,000 Ordinary shares of €0.0001 at an exercise price of £0.0030 with a fair value of €169,921, which remain unexercised at period end 30 June 2021.

 

On 21 January 2021, the Company completed the issue of 15,000,000 new ordinary shares following the exercise of warrants granted in conjunction with the placing in July 2020. The exercise price was £0.0020 (€0.0023) per ordinary share, raising gross proceeds of £30,000 (€33,850) and increasing share capital by €1,500. The premium arising on the issue amounted to €32,350.

 

On 12 February 2021, the Company completed the issue of 31,250,000 new ordinary shares following the exercise of warrants granted in conjunction with the placing in November 2019. The exercise price was £0.0016 (€0.0018) per ordinary share, raising gross proceeds of £50,000 (€56,978) and increasing share capital by €3,125. The premium arising on the issue amounted to €53,853.

 

On 15 February 2021, the Company completed the issue of 6,000,000 new ordinary shares following the exercise of options granted in April 2020. The exercise price was £0.0009 (€0.0010) per ordinary share, raising gross proceeds of £5,400 (€6,191) and increasing share capital by €600. The premium arising on the issue amounted to €5,591.

 

On 13 April 2021, the Company completed a placing of 454,545,455 new ordinary shares of €0.0001 at a price of £0.0022 (€0.0025) per ordinary share, raising gross proceeds of £1,000,000 (€1,153,429) and increasing share capital by €45,455. The premium arising on the issue amounted to €916,610. The share issue included warrants granted giving the right to acquire 227,272,727 Ordinary shares of €0.0001 at an exercise price of £0.0030 with a fair value of €191,364, which remain unexercised at period end 30 June 2021.

 

Transaction expenses including commission arising on the issue of new shares amounted to €69,206 during the year (30 June 2020: €32,443 and 31 December 2020: €140,490). A total of €175,534 was released from the share warrant financial liability following the exercise of warrants during the year ended 31 December 2020.

 

13.       Share based payments

 

Share options

Great Western Mining Corporation PLC operates a share option scheme, "Share Option Plan 2014", which entitles Directors and employees of Great Western Mining Corporation PLC and its subsidiary companies to purchase ordinary shares in the Company at the market value of a share on the award date, subject to a maximum aggregate of 10% of the issued ordinary share capital of the Company on that date.

 

Options are granted at market price, in accordance with the rules, with reference to the average closing price for the ten dealing days prior to the grant of options. Options granted prior to 2020 vest if the option holder remains in service for three years from the date of grant. Options granted in 2020 vest immediately. All options expire at a date seven years after their date of grant.

 

Measure of fair values of options

No options were granted In the six months ended 30 June 2021.  The fair values of options granted in the comparative periods in accordance with the terms of the Share Option Plan 2014 were calculated using the following inputs into the binomial option-pricing model:

 

 

		22 April 2020
Fair value at grant date		Stg 0.070 p
Share price at grant date		Stg 0.095 p
Exercise price		Stg 0.090 p
Number of options granted		47,000,000
Expected volatility		137%
Expected life		7 Years
Expected dividend		0%
Risk free interest rate		0.1%

 

During the period an expense of €25,606 (30 June 2020: €79,599 and 31 December 2020: €151,294) was recognised in the statement of profit and loss related to share options vesting during the period.  An amount of €4,777 was released from the share options reserve to retained earnings on the exercise of 6,000,000 options granted in April 2020.  An amount of €306,826 was released from the share options reserve to retained earnings on the termination of certain options.

 

On 30 June 2021, there were options outstanding over 67,666,67 (30 June 2020: 112,000,000 and 31 December 2020: 112,000,000) Ordinary Shares which are exercisable at prices ranging from Stg 0.09 pence to Stg 1.6 pence per share and which expire at various dates up to 22 April 2027.

 

Equity-settled warrants

In July 2020, the Group granted warrants to Novum Securities Limited in connection with a share placing. 27,000,000 warrants were granted exercisable at £0.0010 (€0.0011) each with immediate vesting and a contractual life of 2 years.

 

In November 2020, the Group granted warrants to Monecor (London) Limited in connection with a share placing. 20,000,000 warrants were granted exercisable at £0.0020 (€0.0022) each with immediate vesting and a contractual life of 2 years.

 

In April 2021, the Group granted warrants to Novum Securities Limited in connection with a share placing. 22,727,272 warrants were granted exercisable at £0.0022 (€0.0025) each with immediate vesting and a contractual life of 2 years.

 

Measure of fair values of warrants

The fair value of the warrants issued has been measured using the binomial lattice option pricing model. There are no service or non-market performance conditions attached to the arrangement and the warrants are considered to have vested immediately.

 

The inputs used in the measurement of the fair values at grant date of the warrants were as follows:

 

	Apr 2021	Nov 2020	Jul 2020
Fair value at grant date	€0.0009	€0.0007	€0.0004
Share price at grant date	€0.0029	€0.0022	€0.0014
Exercise price	€0.0022	€0.0022	€0.0011
Number of warrants granted	22,727,272	20,000,000	27,000,000
Sub-optimal exercise factor	1.5x	1.5x	1.5x
Expected volatility	109%	112%	120%
Expected life	2 Years	2 Years	2 Years
Expected dividend	0%	0%	0%
Risk free interest rate	0.1%	0.1%	0.1%

 

In October 2020, the warrants over 27,000,000 shares granted in July 2020 were exercised and the amount of €11,816 released from the share-based payment reserve to share premium.

 

In July 2020, warrants granted in July 2017 over 4,687,500 shares lapsed unexercised and an amount of €41,542 released from the share-based payment reserve to retained earnings.

 

At 30 June 2021, the balance on the share-based payment reserve amounted to €605,735 (30 June 2020: €515,561 and 31 December 2020: €559,420).

 

14.       Share warrants - financial liability

 

Warrants granted during the year

In July 2020, the Group granted warrants in connection with a share placing. 225,000,000 warrants were granted exercisable at £0.0020 each with immediate vesting and a contractual life of 2 years.

 

In November 2020, the Group granted warrants in connection with a share placing. 275,000,000 warrants were granted exercisable at £0.0030 each with immediate vesting and a contractual life of 2 years.

 

In March 2021, the Group granted warrants in connection with a share placing. 227,272,727 warrants were granted exercisable at £0.0030 each with immediate vesting and a contractual life of 2 years.

 

No warrants were granted during the period ending 30 June 2020.  In November 2019, the Group granted warrants in connection with a share placing. 375,000,000 warrants were granted exercisable at £0.0016 (€0.0019) each with immediate vesting and a contractual life of 3 years. The inputs used in the measurement of the fair values at grant date of the warrants were as follows:

 

Measure of fair values of warrants

The fair value of the warrants issued has been measured using the binomial option pricing model. There are no service or non-market performance conditions attached to the arrangement and the warrants are considered to have vested immediately.

 

The inputs used in the measurement of the fair values at grant date of the warrants were as follows:

 

	Apr 2021	Nov 2020	Jul 2020
Fair value at grant date	£0.0007	£0.0006	£0.0004
Share price at grant date	£0.0025	£0.0020	£0.0012
Exercise price	£0.0030	£0.0030	£0.0020
Number of warrants granted	227,272,727	275,000,000	225,000,000
Sub-optimal exercise factor	1.5x	1.5x	1.5x
Expected volatility	109%	112%	120%
Expected life	2 Years	2 Years	2 Years
Expected dividend	0%	0%	0%
Risk free interest rate	0.1%	0.1%	0.1%

 

Expected volatility has been based on an evaluation of the historical volatility of the Company's share price. The expected life is based on the contractual life of the warrants.

 

13.       Related party transactions

 

In accordance with International Accounting Standards 24 - Related Party Disclosures, transactions between group entities that have been eliminated on consolidation are not disclosed.

 

14.       Events after the reporting date

 

There were no significant post balance sheet events which would require amendment to or disclosure in the half yearly financial statements.

 

15.       Approval of financial statements

 

The half yearly financial statements were approved by the Board of Directors on 29 September 2021.