Company: CCIXW
Filing Date: 2025-12-05
Form Type: S-4/A
Source: 0001193125-25-309933
Chunk: 680

Company: Churchill Capital Corp IX/Cayman
Filing Date: 2025-12-05
Form: S-4/A
Chunk 680
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. For the awards that do not qualify as plain-vanilla options, such as those with intrinsic value on their grant date, the Company assessed the expected term using the contractual term and the anticipated requisite service period, which reflected its expectations for the liquidity event.

Expected Equity Volatility . The Company has computed expected volatility based on the historical volatility of a representative group of public companies with similar characteristics to the Company (e.g., public entities of similar size, complexity, stage of development, and industry focus). The historical volatility is commensurate with the expected term assumption.

Risk-Free Interest Rate . The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of award grant for the expected term of the award.

Expected Dividend Yield . The Company has historically paid no dividends and does not anticipate paying dividends in the future.

Liability-Classified Share-Based Awards

In connection with the Restructuring, the unvested RSUs, PRSUs, and Options (“PRC Awards”) held by the grantees employed with Plus PRC (“PRC Holders”) were expected to be forfeited pursuant to their original terms. In July 2023, the Company modified the PRC Awards to allow their continuous vesting based on their initial terms, contingent on the service to Plus PRC (“Plus PRC Service Requirement”). The Company determined that the Plus PRC Service Requirement is a condition that is not a service, performance, or market condition from the award related to the Company’s operations. As such, the unvested PRC Awards became liability-classified upon completion of the Restructuring. Since the Company anticipates that the liability-classified PRC Awards will be settled in equity, the associated liability is presented as noncurrent in the consolidated balance sheets.

The service-based awards held by the PRC Holders, including RSUs and Options, became vested from the Company’s standpoint, and the variability in the number of shares issuable is based solely on the Plus PRC Service Requirement. As such, the Company reclassifies the liability to equity as the Plus PRC Service Requirement is met. Since the service-based awards held by the PRC Holders were expected to vest before the Restructuring, total stock-based compensation for these awards is at least equal to the grant-date fair value per share.

The PRSUs held by the PRC Holders are also subject to the performance condition, and no liability is recognized until the underlying liquidity event becomes probable. The Company re