Company: WLTH
Filing Date: 2025-07-28
Form Type: DRS/A
Source: 0001628279-25-000486
Chunk: 159

Company: WEALTHFRONT CORP
Filing Date: 2025-07-28
Form: DRS/A
Chunk 159
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 of this prospectus, the aggregate intrinsic value of stock options outstanding as of January 31, 2025 was $ million, of which $ million related to vested stock options and $ million related to unvested stock options, and the aggregate intrinsic value of RSUs outstanding as of January 31, 2025 was $ million. In addition, we granted RSUs settleable for shares of our common stock subsequent to January 31, 2025.

#### Convertible Note Valuations
As permitted under the Accounting Standards Codification 825, Financial Instruments , we elected to account for the convertible note at fair value at inception and at each subsequent reporting date. Subsequent changes in fair value were recorded within other expense (income), net in our consolidated statements of operations. Changes in fair value due to instrument-specific credit risk were immaterial for the years ended January 31, 2025 and 2024. As a result of electing the fair value option, direct costs and fees related to the convertible note were expensed as incurred.

The fair value of the convertible note was determined using the bond plus call framework. The framework consists of: (a) a bond component—the payoff akin to a straight debt and (b) a call component—the payoff over and above the bond component.

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The fair value of the convertible note used inputs such as:

• estimates for the credit spread;

• fair value of our Series H-1 redeemable convertible preferred stock;

• the volatility of our Series H-1 redeemable convertible preferred stock;

• the time to expiration of the convertible note, and;

• the risk-free interest rate for a period that approximates the time to expiration.

The credit spread was estimated using movement in market benchmark indices data and the implied discount rate as of the issuance date.

The fair value and class volatility of Series H-1 redeemable convertible preferred stock was estimated by interpolating from the respective 409A analyses performed close to the valuation analysis.

The risk-free interest rate was determined by reference to the U.S. Treasury yield curve in effect at the time of measurement for time periods approximately equal to the time to expiration/prepayment.

The assumptions used in determining the fair value of the convertible note represented reasonable estimates, but the estimates involved inherent uncertainties and the application of judgment. As a result, if factors changed and we used significantly different assumptions or estimates, the change in the fair value of the convertible note recorded to other expense (income), net could be materially different. We performed