Cue Energy Resources Limited Shareholder information 30 June 2023 34 The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using either the Binomial or Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the Consolidated Entity receives the services that entitle the employees to receive payment. No account is taken of any other vesting conditions. The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous periods. If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value of the share-based compensation benefit as at the date of modification. If the non-vesting condition is within the control of the Consolidated Entity or employee, the failure to satisfy the condition is treated as a cancellation. If the condition is not within the control of the Consolidated Entity or employee and is not satisfied during the vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the award is forfeited. If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award is treated as if they were a modification. Notes to the financial statements 32 Note 24. Reconciliation of profit after income tax to net cash from operating activities Consolidated 2023 2022 $'000 $'000 Profit after income tax expense for the year 15,211 16,068 Adjustments for: Share-based payments 96 188 Finance costs associated with abandonment provision 1,703 259 Exploration expenses 913 - Depreciation 94 82 Amortisation 6,005 5,415 Net gain on foreign currency conversion 879 520 Change in operating assets and liabilities: Decrease/(increase) in trade and other receivables (3,918) 498 Increase in contract assets (3,282) (1,836) Decrease/(increase) in inventories 56 (468) Increase in deferred tax assets (5,362) (2,283) Increase/(decrease) in trade and other payables (721) 570 Decrease in contract liabilities (1,271) (810) (Decrease)/increase in tax liabilities 1,332 551 Increase/(decrease) in deferred tax liabilities 880 (1,052) Increase/(decrease) in provisions 38 (40) Net cash from operating activities 12,653 17,662 Note 25. Earnings per share Consolidated 2023 2022 $'000 $'000 Profit after income tax attributable to the owners of Cue Energy Resources Limited 15,211 16,068 Number Number Weighted average number of ordinary shares used in calculating basic earnings per share 698,119,720 698,119,720 Weighted average number of ordinary shares used in calculating diluted earnings per share 698,119,720 698,119,720 Cents Cents Basic earnings per share 2.18 2.30 Diluted earnings per share 2.18 2.30 Accounting policy for earnings per share Basic earnings per share Basic earnings per share is calculated by dividing the earnings attributable to the owners of Cue Energy Resources Limited, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year. Diluted earnings per share Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares. 80 Cue Energy Resources Limited Annual Report 2023
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