INNO HOLDINGS INC. Stock Compensation Disclosure
For the Years Ended September 30, | ||||||||
| 2025 | 2024 | |||||||
| Restricted stock: | ||||||||
| – Stock awards | $ | 2,185,205 | $ | 146,333 | ||||
| Total | $ | 2,185,205 | $ | 146,333 | ||||
On January 16, 2025, pursuant to the Omnibus Incentive Plan, the Company granted shares of our common stock to our Chief Executive Officer Ding Wei, and shares of our common stock to our Chief Financial Officer Mengshu Shao. The stock grant does not have vesting period. The price of the granted stocks is based on the closing price of the Company’s stock on grant date, which is $ per share. As of September 30, 2025, there was no outstanding restricted shares under the Omnibus Incentive Plan.
On May 28, 2025, pursuant to 2025 Omnibus Incentive Plan, the Company granted shares of its common stock to the Company’s employees. The stock grant does not have vesting period. The price of the granted stocks is based on the closing price of the Company’s stock on grant date, which is $ per share. As of September 30, 2025, there was no outstanding restricted shares under the 2025 Omnibus Incentive Plan.
About Stock Compensation Disclosures
Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.
Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.