Company: CCIXW
Filing Date: 2025-12-05
Form Type: S-4/A
Source: 0001193125-25-309933
Chunk: 702

Company: Churchill Capital Corp IX/Cayman
Filing Date: 2025-12-05
Form: S-4/A
Chunk 702
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 receives a reduced number of shares by the number of shares with a fair market value equal to the aggregate exercise price on the date of exercise.

Under the terms of Amazon Warrant, (1) 84.1 million Warrant Shares were vested and were immediately exercisable (“Initial Warrant Shares”) on the issuance date; and (2) the balance of Warrant Shares will vest and will be immediately exercisable based upon payments by Amazon on the Company's products or services until the total payments from Amazon equal to $200 million (“Remaining Warrant Shares”).

Accounting for Amazon Warrant

The Amazon Warrant is determined to be a freestanding financial instrument that represents consideration payable to a customer in the form of the equity instrument issued not in exchange for distinct goods and services. The Company assessed the accounting treatment for Amazon Warrantunder ASC Topic 718.

Prior to the consummation of a de-SPAC transaction, the underlying shares for the Amazon Warrants are Series C-1 Shares which are contingently redeemable outside of the Company’s control (Note 11). The Amazon Warrants are therefore classified as a liability and subsequently measured at fair value with the change of fair value being recorded in the consolidated statements of operations and comprehensive loss. In accordance with ASC Topic 718, the fair value of each tranche of the Amazon Warrant is determined at the grant date, which is the date of the warrant agreement, when the Company becomes contingently obligated to issue share-based payment awards to Amazon. Upon the consummation of the Qualified IPO, the securities to be issued upon exercise of the Amazon Warrant will be shares of the Company’s Class A common stock that are not redeemable. Therefore, the Amazon Warrant will be reclassified as equity upon the completion of a Qualified IPO or de-SPAC Transaction.

The Initial Warrant Shares vested and were immediately exercisable on the issuance date with the grant date fair value of the Warrant Shares recognized as an upfront payment to the customer, which resulted in reduction of revenue over the contract term. TheRemaining Warrant Shares vest upon a specific amount of future revenue from Amazon. Accordingly, the Remaining Warrant Shares are considered as payments to a customer and therefore will be recorded as a reduction of revenue based on the grant date fair value. The vested portion of the Remaining Warrant Shares are recorded as liability originally based on the grant date fair value and subsequently measured at the fair value until the

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NOTES TO CONSOLIDATED FINANC