Company: CCIXW
Filing Date: 2025-12-05
Form Type: S-4/A
Source: 0001193125-25-309933
Chunk: 732

Company: Churchill Capital Corp IX/Cayman
Filing Date: 2025-12-05
Form: S-4/A
Chunk 732
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 in cash or shares. The number of shares issuable is determined as a fixed dollar amount based on the services that the Company elects to settle in shares (“TAS Costs”), up to $10.0 million (“Threshold”). If the Company executes Series D financing, the shares subject to the TAS Costs will be issued in the form of Series D redeemable convertible preferred stock.

Upon the de-SPAC Transaction discussed in Note 1, the Company will be required to issue all shares subject to the Threshold in the form of common stock of the successor entity based on the implied fair value per share of the Company’s common stock. These shares will become vested only to the extent that there are outstanding TAS Costs, and will vest in the future, as the Company consumes additional TAS Costs, up to the Threshold amount. The Company is required to use reasonable efforts to reach the Threshold by December 31, 2029. As of September 30, 2025, the outstanding TAS Costs liability was $0.2 million.

Repurchase of Executive RSA and Settlement of the RSA Loans

As of December 31, 2024, the Company had 17,000,000 outstanding restricted shares (“Executive RSAs”), which were purchased by two executives using loans issued by the Company (“RSA Loans”). The Company previously determined that the RSA Loans were substantively issued on a non-recourse basis, and treated this arrangement as an option on the 17,000,000 Executive RSAs. These Executive RSAs are presented as unvested for accounting purposes while the underlying RSA Loans are outstanding.

In September 2025, the Company executed a stock repurchase agreement to repurchase 2,971,825 Executive RSAs from an executive officer at $0.48 per share for approximately $1.4 million. The repurchase price did not exceed the estimated fair value per share on the repurchase date. The proceeds from this transaction were fully applied to settle the outstanding principal amount and accrued interest for the RSA Loans initially used by this executive officer to purchase 15,000,000 Executive RSAs. The constructive cash flows from the repayment of the RSA Loans and the repurchase of the Executive RSA are presented as the proceeds from stock option exercises and the repurchase of restricted common stock awards, respectively, in the unaudited condensed consolidated statement of cash flows for the nine months ended September 30, 2025.

As of September 30, 2025, the 2,000,000 Executive RSAs are held by a