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Note 23 - Other Reserves
 12 Months Ended
Jun. 30, 2020
Statement Line Items [Line Items]  
Disclosure of reserves within equity [text block]
2
3
.
       
 Other reserves
 
   
As at June 30
    
As at March 31
  
(US dollars in thousands)
  
20
20
    
2019
    
2019
    
201
8
  
Equity instruments
    
27,057
      
26,087
      
26,090
      
25,072
  
Share option reserve
    
-
      
3,713
      
3,713
      
3,713
  
Capital raising costs
    
(6,009
)
    
(9,722
)
    
(9,722
)
    
(9,722
)
Treasury shares
    
-
      
(13
)
    
(246
)
    
(592
)
Equity incentive costs
    
344
      
-
      
-
      
-
  
Foreign exchange
    
16
      
11
      
11
      
(88
)
Total
  
 
21,408
      
20,076
      
19,846
      
18,383
  
 
Equity instruments are convertible preference shares and convertible loan notes in Aevitas Group Limited (“Aevitas Group”) which must convert to shares of VivoPower at
$10.20
per share
no
later than
June 30, 2021.
The Company has classified these instruments as equity under the “fixed-for-fixed” rule meaning that both the amount of consideration received/receivable and the number of equity instruments to be issued is fixed.
 
There are
2,473,367
convertible preference shares outstanding with a face value of
AU$3.00
per share and mature on
June 30, 2021.
The value held in reserves of
AU$11,059,348
represents their face value plus the dividends accrued to
June 30, 2020.
Convertible preference shares are subordinated to all creditors of Aevitas Group, rank equally amongst themselves, and rank in priority to ordinary shares of Aevitas Group.
 
There are
2,473,367
convertible loan notes outstanding with a face value of
AU$7.00
per share and mature on
June 30, 2021.
The value held in reserves of
AU$25,075,203
represents their face value plus the dividends accrued to
June 30, 2020.
The convertible loan notes rank equally with the unsecured creditors of Aevitas Group.
 
Dividends or interest is payable quarterly in arrears at a rate of
7%
on the capitalized value to
December 29, 2016,
the date at which they became convertible to VivoPower shares. At maturity, or if a trigger event such as a change of control of Aevitas Group or VivoPower, a listing event, or a disposal of substantially all of the assets of Aevitas Group has occurred, the convertible preference shares and convertible loan notes in Aevitas Group convert to VivoPower ordinary shares at a price of
US$10.20
per share
 
In connection with the acquisition of Aevitas Group, the Company entered into a guarantee of the obligations of Aevitas Group under the terms of the preference shares and loan notes.
 
As disclosed more fully in Note
29,
on
July 10, 2020,
a proposal to reconstitute the Aevitas convertible preference shares and convertible loan notes as an Aevitas preference share was approved at an extraordinary meeting of the ordinary shareholders, exchangeable preference shareholders and exchangeable noteholders of Aevitas Group Limited.
 
The share option reserve represents
828,000
share options granted to Early Bird Capital as part of the initial public share offering. The options entitled the holder to buy VivoPower ordinary shares at
US$8.70
at any time before
April 30, 2020.
The options were originally accounted for as a share-based award and accordingly, the cost of the award was recognized directly in equity and was applied against capital raising costs. The fair value of the options was determined at the grant date, using the Black Scholes Model, and
not
remeasured subsequently. The options lapsed in
April 2020,
accordingly the reserve has been released and credited against capital raising costs
 
On
March 30, 2017,
the Company repurchased
129,805
shares at a price of
$4.50
for a total sum of
$591,911,
including commission, and held them as treasury shares. During the year ended
March 31, 2019,
75,805
of these shares were awarded to employees under the Company's
2017
Omnibus Incentive Plan. Based on the closing market value of these shares on the day of award,
$85,660
was expensed as employee compensation and remaining cost of
$260,011
was charged against retained earnings.
 
During the year ended
June 30, 2020,
share incentives were granted to employees and directors of the Company, under the Company's
2017
Omnibus Incentive Plan. Of the share awards granted,
$344,000
of shares fully vested or had a vesting period commencing in the year ended
June 30, 2020.