Ann: Renounceable Entitlements Offer to Fund Phase 1 Development, page-69

Edit note to my last post with additional audit info from the annual report:

Key Audit Matters (continued)
Related Party Transactions & Share Based Payments to Key Management Personnel
Refer to Remuneration Report, Note 18 b) Share Based Payments, Note 24 Related Party Transactions
During the year ended 30 June 2022, the Group
transacted with Key Management Personnel and
their related entities including:
• Awarded share-based payments amounting
to $1,822,500 in the form of share options, to
Key Management Personnel
• Paid $2,609,905 in development and
consulting costs related to the L-Max
Technology
As these transactions are made with related
parties, there are additional inherent risks
associated with these transactions, including the
potential for these transactions to be made on
terms and conditions more favourable than if they
had been with an independent third party.
The value of the share-based payments is a key
audit matter due to it being a key material
transaction with members of key management
personnel, the valuation of which involves
significant judgement and accounting estimation.
Our procedures included, amongst others the following:
• Enquiring and obtaining confirmations from Key Management
Personnel regarding related party transactions occurring
during the period.
• Reviewing minutes of meetings, ASX announcements and
agreements, and considered other transactions undertaken
during the financial year.
• Reviewing payments, receipts and general journals
throughout the year, and examining transactions with known
related parties, or those that appear large or unusual for the
Group.
• Evaluating, based on supporting documentation, whether
related party transactions were on an arms-length basis.
• Assessing the valuation methodology used by management
to estimate fair value of share options issued, including testing
the integrity of the information provided, assessing the
appropriateness of the key assumptions input into the
valuation model and recalculating the valuation using the
Black Scholes Model.
• Assessing whether the share-based payments have been
appropriately classified and accounted for in the financial
statements.
• Assessing the appropriateness of the relevant disclosures in
the financial statements