Company: IBTA
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001628280-25-051720
Chunk: 98

Company: Ibotta, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 1
Chunk 98
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 grant date fair value of the Walmart Warrant was $35.3 million. To factor in the various terms and conditions of the Walmart Warrant, including the potential adjustments if certain pricing thresholds were not met upon an initial public offering or other liquidity event (i.e., considered a market condition), the fair value was determined based on probability weighted estimated fair values determined under both a Black-Scholes option pricing valuation model (assuming no liquidity event) and a Monte Carlo simulation valuation model (assuming a potential liquidity event) with the following assumptions:Black-Scholes Option Pricing ModelMonte Carlo SimulationRisk-free interest rate1.64 %1.64 %Expected dividend yield——Expected volatility50 %50% / 65%Expected term (in years)10.010.0

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Table of ContentsIbotta, Inc.Notes to Condensed Financial Statements(unaudited)

The adjustment under the anti-dilution provision on April 22, 2024 represented a modification under ASC 718. The aggregate grant date fair value of the 592,457 additional shares granted under the anti-dilution provision was $37.2 million. The fair value was determined based on a Black-Scholes option pricing valuation model with the following assumptions:Black-Scholes Option Pricing ModelRisk-free interest rate4.61 %Expected dividend yield—Expected volatility65 %Expected term (in years)7.1The fair value of the portion of the Walmart Warrant that vests upon achievement of the performance conditions is recognized as sales and marketing expense when the performance conditions are considered probable of achievement, and the fair value of the remaining portion is recognized as sales and marketing expense over time beginning upon achievement of certain performance conditions through the remainder of the Commercial Agreement term, subject to acceleration if certain operating goals are achieved, and subject to certain forfeiture and repurchase terms. In September 2023, the performance conditions required for vesting were deemed probable, and the Company began to recognize stock-based compensation expense. During the three and nine months ended September 30, 2024, we recognized stock-based compensation of $2.2 million and $27.1 million, respectively, in sales and marketing expense associated with the Walmart Warrant. During the three and nine months ended September 30, 2025, we recognized stock-based compensation of $2.3 million and $6.6 million, respectively, in sales and marketing expense associated with the Walmart Warrant. All expense for the periods