Company: WLTH
Filing Date: 2025-12-11
Form Type: S-1/A
Source: 0001628280-25-056439
Chunk: 211

Company: WEALTHFRONT CORP
Filing Date: 2025-12-11
Form: S-1/A
Chunk 211
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, the aggregate intrinsic value of stock options outstanding as of July 31, 2025 was $308.0 million, of which $306.7 million related to vested stock options and $1.3 million related to unvested stock options, and the aggregate intrinsic value of RSUs outstanding as of July 31, 2025 was $445.2 million. In addition, we granted RSUs settleable for 2,153,262 shares of our common stock subsequent to July 31, 2025.

#### Quantitative

#### and Qualitative Disclosures of Market Risk
Market risk generally represents the risk of loss that may result from the potential change in the value of a financial instrument as a result of fluctuations in interest rates and market prices. Information relating to quantitative and qualitative disclosures about these market risks is described below.

#### Interest Rate Risk
Our cash and cash equivalents as of the fiscal year ended July 31, 2025, were held primarily in cash deposits and money market funds. The fair value of our cash and cash equivalents would not be significantly affected by either an increase or decrease in interest rates due mainly to the short-term nature of these instruments. A hypothetical 100 basis point increase or decrease in interest rates would not have a material effect on our financial results.

Future borrowings under the Revolving Credit Facility will bear interest based on an applicable margin over underlying index rates. Because the interest rates applicable to borrowings under the Revolving Credit Facility are variable, we are exposed to market risk from changes in the underlying index rates, which affect our cost of borrowing.

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#### Market-Related Credit Risk
We are indirectly exposed to equity securities risk in connection with securities collateralizing margin loan receivables, as well as risk related to our securities lending activities. We manage risks associated with margin activities by requiring clients to maintain collateral in compliance with internal and, as applicable, regulatory guidelines. We monitor required margin levels daily and require our clients to deposit additional collateral, or to reduce positions, when necessary. We continuously monitor client accounts to detect increased risk to us.

We manage risks associated with our securities lending activities by requiring credit approvals for counterparties, by monitoring the market value of securities loaned and collateral values for securities borrowed on a daily basis and requiring additional cash as collateral for securities loaned or return of collateral for securities borrowed when necessary.

#### JOBS Act Accounting Election
We are an EGC, as defined in the JOBS Act. The JOBS Act provides that