TYRATECH • ANNUAL REPORT 2014 • PAGE 35
SAR activity during the period indicated as follows:
Weighted Weighted
Weighted average average
average remaining Aggregate grant-
Number of exercise contractual intrinsic date fair
shares price term value value
Balance at 31 December 2012 8,656,909 $0.37 8.52 - $0.47
Granted 2,505,000 0.15 - - 0.05
Exercised - - - - -
Expired - - - - -
Forfeited (875,000) 0.45 - - 0.33
Balance at 31 December 2013 10,286,909 $0.31 8.28 - $0.37
Granted 4,355,000 0.21 - - 0.11
Exercised (65,000) 0.10 - - 0.07
Expired - - - - -
Forfeited (365,000) 0.15 - - 0.09
Balance at 31 December 2014 14,211,909 $0.28 8.89 - $0.30
Exercisable at 31 December 2013 7,494,409 $0.20 7.96 - $0.34
Exercisable at 31 December 2014 8,853,576 $0.24 7.84 - $0.30
The weighted average grant date fair value of SARs granted
during the year ended 31 December 2014 was $0.4 million (2013:
$0.1 million). During the year ended 31 December 2014 1,294,167
SARS vested (2013: 3,716,784) with a fair value of $0.1 million (2013:
$0.3 million). During 2014, 65,000 SARS were exercised (2013: 0)
with a fair value of $4,738 (2013: $0.0 million). The SARs issued
through 31 December 2014 have a maximum contract term of
ten years.
As of 31 December 2014, there was $0.5 million (2013: $0.2 million)
of total unrecognised compensation cost related to non-vested
SAR arrangements granted under the plan. That cost is expected
to be recognised over a weighted average period of 2.4 years.
The total fair value of shares vested during the year was $0.01
million (2013: $0.3 million). The compensation recognised in
operating expenses for SARS for the year ended 31 December
2014 was $0.2 million (2013: $0.2 million). During the year ended
31 December 2014, the Company used an estimated forfeiture
rate of 5% the SARs vesting in one year and a rate of 12% for
SARs vesting over a four year term. These forfeiture rates were
developed based upon actual forfeiture rates for SARs forfeited
between 2009 and 2013.
The Company plans to use authorised and un issued shares to
satisfy SAR exercises.
(11) RESEARCH AND DEVELOPMENT COLLABORATIONS
The Company has the following significant research and
development collaborative agreement outstanding at 31
December 2014 and 2013:
Mondelez Global, LLC
Agreement Summary
On 5 December 2006, the Company entered into a technology
sublicense agreement with Mondelez Global, LLC ("Mondelez"
– formally Kraft Foods, Inc.). Pursuant to this agreement,
Mondelez was granted a limited exclusive sublicense to use the
Company's know-how and related license and patents relating
