Company: CCIXW
Filing Date: 2025-12-05
Form Type: S-4/A
Source: 0001193125-25-309933
Chunk: 719

Company: Churchill Capital Corp IX/Cayman
Filing Date: 2025-12-05
Form: S-4/A
Chunk 719
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Us, and Penny Options is determined using the estimated fair value of the Company’s common stock on the grant date. The grant date fair value of the RSUs is recognized ratably over the requisite service periods, which typically range from two to four years. The grant date fair value for the equity-classified PRSUs is recognized once it becomes probable that the performance condition will be satisfied, which is

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generally upon the consummation of a liquidity event. The grant date fair value for the equity-classified Penny Options was recognized at their issuance, as these awards were fully vested at the time of issuance.

The fair value of the Company’s common stock was determined by the Board of Directors with input from management and consideration of third-party valuation reports. In the absence of a public trading market, and as a development-stage company with no significant revenues, the Company believes that it is appropriate to consider a range of factors to determine the fair market value of the common stock at each grant date. The Company considered various objective and subjective factors, along with inputs from the independent third-party valuation firm. The factors included (1) the progress of the development activities by the Company; (2) the significant risks associated with the Company’s stage of development; (3) capital market conditions for comparable, privately held, technology companies; (4) the Company’s available liquidity, financial condition, and results of operations; (5) the historical issuances of the Company’s shares to third parties; and (6) the preferential rights of the redeemable convertible preferred stockholders.

The fair value of the Options and RSAs is determined using the Black-Scholes option-pricing model (“BSM”). The grant date fair value of the equity-classified Options and RSAs is recognized as an expense over the requisite service periods, generally ranging from two to four years. Forfeitures are recognized as they occur.

The BSM requires the use of certain assumptions as of each grant date, including the fair value of the Company’s common stock, expected term, expected volatility, risk-free interest rate, and expected dividends:

Expected Term. The Company does not have sufficient historical exercise data to provide a reasonable basis for estimating the expected term. For the awards that qualify as plain-vanilla options, the Company uses the expected term calculated based on the 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