Company: CCIXW
Filing Date: 2025-12-05
Form Type: S-4/A
Source: 0001193125-25-309933
Chunk: 497

Company: Churchill Capital Corp IX/Cayman
Filing Date: 2025-12-05
Form: S-4/A
Chunk 497
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. We do not receive any additional consideration or royalties upon completion of NRE projects and the counterparty does not commit to purchase any specific product in the future. The participation reimbursement received by us does not depend on whether there are future benefits from the project. All proprietary intellectual property generated by us under these arrangements is exclusively owned by the Company.

We analyze NRE arrangements to determine whether such arrangements involve joint operating activities performed by parties that are both active participants and exposed to significant risks and rewards based on the commercial success of the activities. Based on this assessment, we have concluded NRE arrangements fall within the scope of ASC Topic 808:Collaborative Arrangements. For NRE arrangements within the scope of ASC Topic 808, we first determine whether the collaborative arrangement is entirely or partially a contract with a customer or falls entirely within the scope of other GAAP. For NRE agreements with multiple deliverables, we would assess the units of account by applying the separation and initial measurement requirements of the applicable authoritative accounting literature. If there are no separation or initial measurement requirements in those other standards, the requirements in ASC Topic 606:Revenue from Contracts with Customers, are applied. For each unit of account identified, we determine the accounting treatment based on the relevant authoritative guidance that can be directly applied or reasonably analogized to, or make an accounting policy election based on the nature if no reasonable analogy found.

We have determined that for each NRE arrangement, there is one unit of account for participation in research and development programs. Participation reimbursements are recognized over time using a cost-to-cost input method (i.e., costs incurred to date relative to total estimated costs), which reflects our progress toward satisfying the performance obligation under the development activities. Participation reimbursements recognized are recorded as a reduction to research and development expenses in the consolidated statements of operations and comprehensive loss.

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Stock-Based Compensation

Types of Equity-Based Awards

Our outstanding equity-based awards include the following categories: (1) restricted stock units with service conditions only (“RSUs”), (2) restricted stock units with service conditions and performance conditions based on the occurrence of a liquidity event, which are required to be met for any awards to vest (“PRSUs”), (3) restricted share awards financed through non-recourse notes (“RSAs”), which are treated as common stock options for accounting purposes, (4) common stock options granted to third parties with the exercise price equal to the par value of the underlying share and fully vested at issuance (“Penny Options”), and (