Company: FTCI
Filing Date: 2025-07-15
Form Type: PRE 14A
Source: 0001193125-25-159376
Chunk: 15

Company: FTC Solar, Inc.
Filing Date: 2025-07-15
Form: PRE 14A
Chunk 15
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 (based on 14,872,017 shares of Common Stock outstanding on the record date for this Special Meeting and assuming the full exercise of the Warrants). As discussed above, our Board of Directors does not believe it is prudent to use significant amounts of our cash resources for employee salaries and bonuses, and we have a limited ability to provide cash-based inducements or cash-based retention bonuses to our key employees. Our Board of Directors believes that the equity incentives we have provide to our employees are among the key ways that we can retain our employees and the talent required to drive FTC toward its business objectives, including profitability. Accordingly, to strengthen organizational continuity and to secure and retain our key employees and top talent during a period of strategic transition and growth for the Company, we are seeking approval of the Plan Amendment in order to have the available share reserve to design and implement an equity-based retention program for our key employees. We believe this strategic initiative underscores our commitment to recognizing high-performing individuals whose contributions are critical to our long-term success. We believe that retaining our key employees is critical to our success and will increase shareholder value. Further, we believe that an equity-based retention program provides significant alignment between the interests of our key employees and our stockholders and will reinforce a culture of loyalty recognition and long-term engagement by our key employees. We believe the Plan Amendment and the increase in available shares under the 2021 Plan is critical to our ability to drive our business objectives by ensure we are able to provide meaningful equity retention awards to our employees. Historical Share Usage and Dilution The following table sets forth information regarding awards granted and the burn rate for each of the last three fiscal years and the average burn rate over such period relating to the 2021 Plan. For each fiscal year, the burn rate has been calculated as the quotient of (1) the sum of (i) restricted stock units (“RSUs”) granted in such year, (ii) performance stock units (“PSUs”) granted in such year, and (iii) stock options granted in such year, divided by (2) the weighted average number of shares of our Common Stock outstanding at the end of such year.

|                                        |     | Fiscal Year Ended December 31 |       2024 |   |     |   |       2023 |   |     |   |       2022 |   |     |   | Three-Year 
    Average |   |
|:---------------------------------------|:----|:------------------------------|-----------:|:--|:----|:--|