Company: CCIXW
Filing Date: 2025-12-05
Form Type: S-4/A
Source: 0001193125-25-309933
Chunk: 499

Company: Churchill Capital Corp IX/Cayman
Filing Date: 2025-12-05
Form: S-4/A
Chunk 499
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 simplified method, which uses the midpoint between the vesting date and the contractual term. For the awards that do not qualify as plain-vanilla options, such as those with intrinsic value on their grant date, we have assessed the expected term using the contractual term and the anticipated requisite service period, which reflected its expectations for the liquidity event.

Expected Equity Volatility — We have computed expected volatility based on the historical volatility of a representative group of public companies with similar characteristics to us (e.g., public entities of similar size, complexity, stage of development, and industry focus). The historical volatility is commensurate with the expected term assumption.

Risk-Free Interest Rate — The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of award grant for the expected term of the award.

Expected Dividend Yield — We have historically paid no dividends and do not anticipate paying dividends in the future.

These assumptions involve inherent uncertainties and the application of significant judgment. As a result, if factors or expected outcomes change and we use significantly different assumptions or estimates, our stock-based compensation expense could be materially different.

Liability-Classified Share-Based Awards

In July 2023, in connection with the Restructuring, we divested operations in Plus PRC. As a result of the Restructuring, the unvested RSUs, PRSUs, and Options (“PRC Awards”) held by the grantees employed with Plus PRC (“PRC Holders”) were expected to be forfeited pursuant to their original terms. In July 2023, we modified the PRC Awards to allow their continuous vesting based on their initial terms, contingent on the service to Plus PRC (“Plus PRC Service Requirement”). We determined that the Plus PRC Service Requirement is a condition that is not a service, performance, or market condition related to our operations. As such, the unvested PRC Awards became liability-classified upon completion of the Restructuring. Since we anticipate that the liability-classified PRC Awards will be settled in equity, the associated liability is presented as noncurrent in the consolidated balance sheets.

As of the Restructuring date, the service-based awards held by the PRC Holders, including RSUs and Options, became vested from our standpoint, and the variability in the number of shares issuable is based solely on the Plus PRC Service Requirement. As such, we reclassify the liability to equity as the Plus PRC Service Requirement is met. Since the service-based