The share-based compensation awards issued under the Company’s 2023 Omnibus Incentive Plan (the "Incentive Plan") to the Company’s employees, officers and directors, are all equity-classified instruments. Restricted stock units ("RSUs") outstanding as of September 30, 2024 have service vesting conditions up to March 2027. Compensation expenses are based on the grant-date fair value of the awards and recognized over the requisite service period using a straight-line method for stock options and a graded vesting method for RSUs. The Company has elected to account for forfeitures of employee stock awards as they occur.

Share-based compensation is in the form of RSUs. The fair value per RSU is calculated using the Black-Scholes option valuation model.



Fair value per share (as of grant date)	$	10.83
Exercise price	$	0
Assumptions:
Volatility		30.82	%
Expected dividends		0.00	%
Expected term (in years)	1.5
Risk free rate		5.24	%

        RSU vesting schedule for year ended

        As of
September 30,
2024

March 2025

79,995

March 2026

9,579,589

March 2027

63,336

Stock-based compensation expense related to RSUs granted to employees was $20,746,267 and $46,977,256 for three months and six months ended September 30, 2024 respectively. As of September 30, 2024, the unrecognized compensation expense related to unvested RSUs was approximately $494,822 which is expected to be recognized over the remaining unvested period of RSUs.

On September 18, 2023, prior to the business combination, Roadzen DE granted 9,903,500 Restricted Stock Units (RSUs) under the 2023 Omnibus Incentive Plan. These RSUs were initially scheduled to vest on the one-year anniversary of the grant date, specifically on September 17, 2024. However, prior to this date, the Board of Directors of Roadzen decided to extend the vesting period by an additional year to September 17, 2025.

Based on the current market price of the shares, management has assessed that this revised vesting timeline will not result in any additional RSU compensation expense being recognized in the Company's financial statements for the above stated outstanding RSUs