Company: CCIXW
Filing Date: 2025-12-05
Form Type: S-4/A
Source: 0001193125-25-309933
Chunk: 500

Company: Churchill Capital Corp IX/Cayman
Filing Date: 2025-12-05
Form: S-4/A
Chunk 500
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 awards held by the PRC Holders were expected to vest before the Restructuring, total stock-based compensation for these awards is at least equal to the grant-date fair value per share.

The PRSUs held by the PRC Holders are also subject to the performance condition, and no liability is recognized until the underlying liquidity event becomes probable. We reclassify the liability-classified RSUs held by the PRC holders to equity as the Plus PRC Service Requirement is met and remeasure the per-share basis of these awards at fair value.

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Impairment of Long-Term Investment

Subsequent to the Restructuring, the assets and liabilities of Plus PRC are not consolidated under the variable interest entity model as we have not been determined to be the primary beneficiary, and we do not have control over Plus PRC. We do not account for our Plus PRC investment under the equity method as we do not have the ability to exercise significant influence after the Restructuring. Since we have no significant influence and our investment in Plus PRC does not have a readily determinable fair value, we have elected to account for the investment at cost less impairments, adjusted by observable price changes in orderly transactions for similar investments. The retained interest in Plus PRC was initially measured at a fair value of $30.6 million upon the closing of the Restructuring. The assessment of the recoverability of the long-term investment includes inputs that are supported by little or no market activity and have a significant impact on determining the carrying value of the long-term investment. During the nine months ended September 30, 2025, we recorded an impairment of $9.3 million in connection with the disposal of Plus PRC, reflected in the unaudited condensed consolidated statement of operations and comprehensive loss. As of September 30, 2025, we completed the sale of the investment in Plus PRC for $20.0 million. During the three months ended September 30, 2025, we received $18.0 million in cash from FTA. The remaining $2.0 million initially withheld for taxes was recorded in prepaid expenses and other current assets in the unaudited condensed consolidated balance sheet as of September 30, 2025, as we anticipate receiving this amount.

Valuation of Financial Instruments

We have issued certain financial instruments, such as redeemable convertible preferred stock warrant liabilities, SAFEs, and the estimated fair value of the redeemable convertible preferred stock accret