Company: CCIXW
Filing Date: 2025-12-05
Form Type: S-4/A
Source: 0001193125-25-309933
Chunk: 678

Company: Churchill Capital Corp IX/Cayman
Filing Date: 2025-12-05
Form: S-4/A
Chunk 678
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recognized are recorded as a reduction to research and development expenses in the consolidated statements of operations and comprehensive loss.

Research and development expenses consist primarily of compensation expenses for engineering and technical employee, depreciation expenses, equipment-related expenses and professional services fees primarily related to consulting and outsourcing services for developing self-driving technology and other research and development expenses. Research and development expenses are offset by amounts received under NRE arrangements. Research and development costs are expensed when incurred.

Sales, marketing, general and administrative expenses consist primarily of compensation expenses, office leases, professional services, depreciation expenses and other expenses which are related to the sales and marketing departments or the Company’s management and administrative departments. The Company’s sales and marketing related costs are comprised of tradeshows, marketing materials, and advertising costs that are expensed as incurred and were $0.5 million for the five months ended December 31, 2023, $1.2 million for the year ended December 31, 2024, and $0.9 million for the six months ended June 30, 2025. Advertising costs included as part of the Company’s sales and marketing were $25,000 for the five months ended December 31, 2023, $0.1 million for the year ended December 31, 2024, and $0.1 million for the six months ended June 30, 2025.

Other expense, net consists primarily of disposal loss (gain) of property and equipment, discounted options liability expense, and other various miscellaneous expenses. These other expense, net amounts are expensed as incurred in the Company’s consolidated statements of operations and comprehensive loss.

Stock-Based Compensation

Types of Equity-Based Awards

The Company’s outstanding equity-based awards include the following categories: (1) restricted stock units with service conditions only (“RSUs”), (2) restricted stock units with service and performance conditions based on the occurrence of a liquidity event, which is required to be met for any awards to vest (“PRSUs”), (3) restricted share awards financed through non-recourse notes (“RSAs”), which are treated as common stock options for accounting purposes, (4) common stock options granted to third parties with the exercise price equal to the par value of the underlying share and fully vested at issuance (“Penny Options”), and (5) common stock options with service conditions (“Options”). The Company recognizes stock-based compensation expense based on the estimated fair values for all share-based payment awards.

Equity-Classified Share-Based Awards

The fair value of equity-classified