17. SHARE CAPITAL (CONTINUED) Options to acquire ordinary shares Movements in the number of Share Options were as follows: Share options Weighted average exercise price Outstanding at 31 December 2023 1,500,000 $3.57 Granted during the year 700,000 $23.09 Forfeited during the year (370,000) $23.09 Exercised during the year (400,000) $3.46 Outstanding at 31 December 2024 1,430,000 $8.11 Granted during the year 2,175,000 $13.53 Forfeited during the year (70,000) $23.09 Exercised during the year (650,000) $3.46 Outstanding at 31 December 2025 2,885,000 $12.88 Vested and exercisable at 31 December 2025 450,000 $3.83 The weighted average exercise price for the options to acquire ordinary shares is $12.88. At 31 December 2025, there are 2,885,000 options to acquire ordinary shares on issue to employees and consultants. During the year ended 31 December 2025, 650,000 vested options to acquire ordinary shares were exercised, and 70,000 options to acquire ordinary shares were forfeited due to service conditions not being met. During year ended 31 December 2025, options to acquire 2,175,000 ordinary shares were granted to employees and consultants. Options to acquire ordinary shares vest subject to remaining an employee or consultant if and when the following non-market performance vesting conditions are met in respect of NNZ-2591: i. One third of the Options shall vest on the last patient dosing in a Phase 3 clinical trial ii. One third of the Options shall vest on the acceptance for filing of a marketing application, or execution of a material partnering transaction iii. One third of the Options shall vest on the first patient dosing in a pivotal clinical trial for a second indication Each of these vesting conditions shall be tested separately from the other vesting conditions. The estimated fair value of the options to acquire ordinary shares has been determined using the Black-Scholes valuation model. The significant inputs into the model were the share price on date of valuation, the estimated future volatility of the share price, the risk-free rate, the expected life and a dividend yield of 0%. The estimated future volatility of the share price was derived by analysing the historic volatility of the share price on a daily basis over a period consistent with the expected life of the options, as this period is reflective of the anticipated volatility in the future. Details of the options to acquire ordinary shares issued during the year ended 31 December 2025, the estimated fair value and variable inputs into the valuation model are shown in the following tables: May 2025 Number of shares under option 1,800,000 Grant date 23 May 2025 Exercise price per share option1 $12.91 Share price on date of valuation $12.87 Estimated future volatility 55.73% Annual risk-free rate 3.69% Expiration 5 years from issue date NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED Neuren Pharmaceuticals Limited Annual Report 2025 50
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