Ann: Sale of Shares by Directors to Institutional Investors, page-146

The tax office calculate the benefit on the value of the shares when the options are exercised, which was roughly 27c. What you subsequently dispose of them for is not something the tax office cares about. They might be able to book the 5c difference as a capital loss at the end of the financial year.

I included the exercise cost in my calculations of what the directors would have had to recover because unless they collectively had $1.8 million lying around in a bank account somewhere they would have had to borrow the money. Carrying a debt like that long-term would be a massive cost and risk when the funds have been used to obtain shares in a pre-revenue, speculative, micro-cap company.