Company: SRFM
Filing Date: 2025-05-02
Form Type: PRE 14A
Source: 0001140361-25-017136
Chunk: 48

Company: SURF AIR MOBILITY INC.
Filing Date: 2025-05-02
Form: PRE 14A
Chunk 48
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 the Plan is not approved, we may not be able to provide potential new hires with compensation packages necessary to attract and motivate them. If approved, the Board believes that the 3,500,000 shares requested under this proposal, along with the projected increases pursuant to the evergreen provision under the Plan, will be sufficient to fund the Company’s equity compensation needs for approximately one to two years. Key Data When approving the Plan, the Board considered the burn rate with respect to the equity awards granted by the Company, as well as the Company’s overhang. The burn rate is equal to the total number of equity awards the Company granted in a fiscal year divided by the weighted average common stock outstanding during the year. Overhang is equal to the total number of equity awards outstanding plus the total number of shares available for grant under the Company’s equity plans divided by the total common stock outstanding. The Company’s three-year average burn rate for the last three fiscal years was approximately 12.04% and the Company’s overhang as of April 28, 2025 was 26.8%. If the Plan is approved, the Company’s overhang would increase to 44.9%. As of April 28, 2025, equity awards outstanding under the Original Plan and the 2016 Equity Plan, the only equity plans maintained by the Company, were approximately: 2,563,275 stock options 36,907 unvested restricted shares, 1,173,030 restricted stock units and 1,386,070 performance-based restricted stock units (at target). As of April 28, 2025, the Company had 19,279,660 shares of common stock outstanding. No new awards may be granted under the 2016 Plan. As of April 28, 2025, the average weighted per share exercise price of all outstanding stock options was $8.02 and the weighted average remaining contractual term was 8.9 years. Promotion of Good Corporate Governance Practices The Plan provides for the following:

| • | stock options and stock appreciation rights may not have a term in excess of ten years and may not be granted at a discount to the fair market value of our common stock on the grant date; |

| • | other than in connection with a change in the Company’s capitalization, the Company may not, without stockholder approval, (i) amend a stock option or stock appreciation right to reduce the exercise or grant price of such outstanding |

| Surf Air Mobility Inc. |     |