Cydar Limited has a Share Option Plan (the 'Option Plan'). Under the Option Plan, the maximum amount of options that the company may issue is 15% of the company's issued share capital from time to time. Options are exerciseable at a price specified by the directors at date of grant and the vesting period varies depending on the nature of the option.
The company issues approved EMI options to its UK employees. The exercise price of the EMI options is subject to approval by HMRC. The vesting period is 3 years and these options vest in equal tranches on an annual basis. EMI options may only be exercised in specific conditions and are settled in equity once exercised. The Board of Directors also has the power to allow employees deemed to be 'good leavers' to exercise their options as they leave the company. Otherwise, any unvested options lapse upon the employee leaving the company. Vested options are subject to lapse and cease to be exerciseable, to the extent not exercised, at the end of the relevant period defined by the Option Plan.
The company issues unapproved options to the US staff employed by Cydar Inc, the wholly owned US subsidiary. Apart from the exercise price which is set at the same of which ordinary shares are issued, all other conditions are the same as the EMI options.
The company can also issue unapproved options to other parties. The exercise price and vesting conditions are determined by the directors.
Details of the number and weighted average exercise prices (WAEP) of share options during the period are as follows:
Outstanding at the beginning of the year: 50,436; WAEP (pence): 499
Outstanding at the end of the year: 100,890; WAEP (pence): 386
Exerciseable at the end of the year: 44,499; WAEP (pence): 564
The company has assessed the fair value of the options at grant date using the Black Scholes valuation model, which is considered to be the most appropriate generally accepted method of measuring fair value. The associated expense is recognised over the vesting period, with a corresponding credit to equity. During the year, a credit of £454,085 (2024 - charge of £45,261) was recognised in the profit and loss account in respect of the share option scheme.