Company: FTCI
Filing Date: 2025-07-25
Form Type: DEF 14A
Source: 0001193125-25-164759
Chunk: 14

Company: FTC Solar, Inc.
Filing Date: 2025-07-25
Form: DEF 14A
Chunk 14
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 a profitable and cash flow                                                                                                                                                          
 positive business. To accomplish these objectives and to continue to drive sales growth and profitability, we need to carefully conserve cash and use our cash for investments and other activities that we believe will accomplish these objectives. In 
 addition to aligning the interests of our stockholders and our employees and creating a culture of ownership among our employees, we use equity-based compensation (instead of cash-based incentives) to conserve our cash.                              |

| • |     | Equity-Based Compensation Needed to Attract Talent: The competition for talented employees in our                                                                                                                                                     
 industry is intense, and we do not believe that we have the cash resources to create cash-based incentive programs sufficient enough to attract the employees and talent levels required to drive the growth of our business. Accordingly, we believe 
 that our use of equity-based compensation is an essential component of our compensation programs and that equity awards are central to our employment value proposition and are needed for us to retain existing talent and to compete for top talent 
 going forward.                                                                                                                                                                                                                                        |

Employees Have Borne Significant Dilution; Retention of Key Employees To accomplish our business objectives, including profitability, the Company requires a significant investment to expand our marketing and sales operations, to invest in our R&D and product development initiatives, and to 7

bolster our balance sheet to secure new customers. This has required significant investment in FTC since December 2024, including the $15 million financing provided by AV Securities in December 2024, and the further financing provided under the Credit Agreement during July 2025. In order to secure this financing, though, we have been required to provide significant equity inducements to our financing partners. However, as a result of these financings and the related warrant issuances, the equity ownership of our employees has been significantly diluted. Specifically, we have issued Common Stock warrants exercisable for a total of 8,586,237 shares of our Common Stock (including warrants issued to AV Securities in December 2024 and which were exercised for 1,750,000 shares of Common Stock), and these warrants have exercise prices ranging from $0.01 per share to $0.10 per share. The 6,836,237 shares of Common Stock issuable upon exercise of the Warrants issued in July 2025, together with the 1,750,000 shares of Common Stock issued upon exercise of the AV Securities warrant issued in December 2024, represent approximately 39.6% of our outstanding Common Stock as of July