17. SHARE CAPITAL (CONTINUED) Vesting condition (i) Vesting condition (ii) Vesting condition (iii) Fair value per share option $5.36 $5.93 $4.78 Expected life (years) 3.19 3.94 2.52 July 2025 Number of shares under option 210,000 Grant date 9 July 2025 Exercise price per share option1 $14.10 Share price on date of valuation $14.18 Estimated future volatility 55.91% Annual risk-free rate 3.4%-3.55% Expiration 5 years from issue date Vesting condition (i) Vesting condition (ii) Vesting condition (iii) Fair value per share option $5.78 $6.43 $5.12 Expected life (years) 3.02 3.77 2.35 September 2025 Number of shares under option 165,000 Grant date 19 Sept 2025 Exercise price per share option1 $19.63 Share price on date of valuation $19.82 Estimated future volatility 55.16% Annual risk-free rate 3.36%-3.61% Expiration 5 years from issue date Vesting condition (i) Vesting condition (ii) Vesting condition (iii) Fair value per share option $7.75 $8.71 $6.80 Expected life (years) 2.82 3.57 2.16 1 The exercise price for the options to acquire ordinary shares is the 5-day weighted average price at which the shares were traded on the ASX in the 5 days preceding the issue of the options. In addition, the Board resolved to issue options to acquire 360,000 ordinary shares for CEO & Managing Director Jon Pilcher which are subject to shareholder approval and will not be issued prior to receiving approval at a future meeting of shareholders. If approved, the options to acquire ordinary shares will be subject to the same vesting conditions as the above options to acquire 1,800,000 ordinary shares issued on 23 May 2025. As the services received from Jon Pilcher in respect of the proposed grant of options have commenced, the fair value of the share options has been estimated using the Black-Scholes model. The significant inputs into the model were the same assumptions as the above options to acquire 1,800,000 ordinary shares granted on 23 May 2025, with the exception of the share price on date of valuation which was updated to $18.61 at 31 December 2025. The fair value estimate will be revised once the grant date has been established, subject to shareholder approval. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED Neuren Pharmaceuticals Limited Annual Report 2025 51
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