Company: VGASW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001628280-25-015480
Chunk: 143

Company: Verde Clean Fuels, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 8
Chunk 143
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 and RSUs, the 2023 Plan authorizes for the future potential grant of stock appreciation rights, restricted stock, performance awards, stock awards, dividend equivalents, other stock-based awards, cash awards and substitute awards to certain employees (including executive officers), consultants and non-employee directors, and is intended to align the interests of the Company’s service providers with those of the stockholders.Stock OptionsStock options represent the contingent right of award holders to purchase shares of the Company’s common stock at a stated price for a limited time. The stock options granted in 2023 have an exercise price of $11.00 per share and will expire 7 years from the date of grant. The stock options granted in 2024 have an exercise price equal to $5.99 per share and will expire on May 29, 2031. Stock options granted to employees and officers will vest at a rate of 25% on each of the first, second, third and fourth anniversaries of the date of grant, subject to continued service through the vesting dates. Stock options granted to non-employee directors will vest one year from the date of grant, subject to continued service through the vesting date.The Company estimates the fair value of stock options on the date of grant using the Black-Scholes model and the following underlying assumptions. Expected volatility was based on historical volatility for public company peers that operate in the Company’s industry. The expected term of awards granted represents management’s estimate for the number of years until a liquidity event as of the grant date. The risk-free rate for the period of the expected term was based on the U.S. Treasury yield curve in effect at the time of grant.The fair value of stock options granted during the years ended December 31, 2024 and 2023 were determined using the following assumptions as of the grant date:For the Year EndedDecember 31,2024December 31,2023Risk-free interest rate4.5 %3.4 %Expected term3.5 years7 yearsVolatility50.1 %48.2 %Dividend yieldZeroZeroDiscount for lack of marketability- employee and officer awards19 %10 %Discount for lack of marketability – non-employee director awards14 %N/AThe weighted average grant date fair value of options granted for the years ended December 31, 2024 and 2023 was $1.40 per share and $1.50 per share, respectively.

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