Company: CCIXW
Filing Date: 2025-12-05
Form Type: S-4/A
Source: 0001193125-25-309933
Chunk: 706

Company: Churchill Capital Corp IX/Cayman
Filing Date: 2025-12-05
Form: S-4/A
Chunk 706
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2025. The RSA Loans were used to finance the purchase of 17,000,000 RSAs issued to these two executives (“ Executive RSAs ”). The purchase price of the Executive RSAs was equal to the fair value of the underlying shares on the grant date. The Executive RSAs are subject to service-based vesting, which occurs between two and four years from their grant dates. The unvested Executive RSAs are subject to repurchase at the applicable purchase price. The Executive RSAs remained outstanding between August 1, 2023 and June 30, 2025 and are included in the outstanding Class A common stock.

<div align='center'>F-78

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

The Company determined that the RSA Loans were substantively issued to the executives on a non-recourse basis, as it has a history of not demanding principal amounts when due and plans to settle the RSA Loans by repurchasing part of the Executive RSAs. As such, the Executive RSAs are treated as common stock options, which are initially exercisable on or before the contractual maturities of the RSA Loans. The principal and interest of the RSA Loans are viewed as part of the exercise price and are not recognized in these consolidated financial statements until they are repaid. The Executive RSAs are treated as nonvested shares for accounting purposes, since the grantees are not exposed to the risks associated with the share ownership while the RSA Loans remain outstanding. In February 2024 and December 2024, two out of the four RSA Loans, with a principal amount of $0.7 million, reached maturity and were not called by the Company. The Company determined that this represented an expiration and substantive extension of the option on the underlying 10,000,000 Executive RSAs through the anticipated liquidity event. Since the required service period was fully met at the time of the extension, during the year ended December 31, 2024, the Company recognized $1.5 million in stock-based compensation, representing the fair value of the replacement option on the Executive RSAs for which the RSA Loans reached their market value. The replacement option was measured using the BSM with the following assumptions:

| Time to settlement (in years) |     | 2.1 - 3.1  |
| Volatility                    |     | 62% - 79%  |
| Risk-Free Interest Rate       |     | 4.1 - 4.3% |