Company: MRCY
Filing Date: 2025-08-11
Form Type: 10-K
Source: 0001049521-25-000024
Chunk: 133

Company: MERCURY SYSTEMS INC
Filing Date: 2025-08-11
Form: 10-K
Item: Item 8
Chunk 133
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$— Cancelled— $— Outstanding at June 27, 2025934 $12.71 $45.00 2.75 years$— Exercisable at June 27, 2025— $— $— — $— There were no options vested or exercised during fiscal year 2025. Non-vested stock options are subject to the risk of forfeiture until the fulfillment of specified conditions. As of June 27, 2025, there was $5,822 of total unrecognized compensation cost related to non-vested options granted that is expected to be recognized over a weighted-average period 1.75 years from June 27, 2025. The Company uses the Black-Scholes valuation model for estimating the fair value on the date of grant of stock options. The Company calculated the fair values of the options grants using the following weighted-average assumptions:Fiscal Year EndedJune 27, 2025Expected volatility45 %Expected term4 yearsRisk-free interest rate4.44 %Expected dividend yield— %Weighted-average grant date fair value per share$12.71 

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The expected volatility of options granted has been determined using a weighted average of the historical volatility of the Company’s stock for a period equal to the expected term of the option. The expected term of options has been determined using the average of the contractual term and the weighted average vesting term of the options. The risk-free interest rate is based on a zero-coupon U.S. treasury instrument whose term is consistent with the expected term of the stock options. The Company has not paid and does not anticipate paying cash dividends on its shares of common stock; therefore, the expected dividend yield is assumed to be zero. The Company applied an estimated annual forfeiture rate based on historical averages in determining the expense recorded in each period. The following table summarizes the status of the Company’s non-vested restricted stock awards and deferred stock awards since June 30, 2023: Non-Vested Restricted Stock Awards Number ofSharesWeighted AverageGrant DateFair ValueOutstanding at June 30, 20231,339 $54.45 Granted1,334 36.38 Vested(476)56.04 Forfeited(671)47.14 Outstanding at June 28, 20241,526 $41.35 Granted939 41.47 Vested(409