QUANTUM CORP /DE/

NOTE 7: COMMON STOCK

Stock Options

During the six months ended September 30, 2026, the Company granted options to purchase shares of the Company's common stock as follows:1,508,650 options on April 1, 2026,20,000 options on August 1, 2026, and 80,000 options on September 1, 2026. The stock options were valued using the Black-Scholes option pricing model on the grant date. There wereno options granted during the three or six months ended September 30, 2025.

The significant assumptions used by the Company to estimate the fair value of the option awards are summarized below:

1 Volatility is based off of the Company's historical stock price over a period of the expected term of the options.

2 Dividend yield is set to 0.00% as the Company has not historically paid dividends.

3 Risk-free interest rate is based on the Treasury yield for the expected term of the options.

Stock-based Compensation Expense

The following table details the Company's stock-based compensation expense (in thousands):

Private Placement

On June 1, 2026, the Company entered into Securities Purchase Agreements with certain accredited investors, pursuant to which the Company, in a private placement (the “Private Placement”), agreed to issue and sell to the investors an aggregate of 10,615,712 shares of the Company’s common stock, par value $0.01 per share, at a price of $9.42 per share, for aggregate gross proceeds to the Company of $100.0 million. After deducting placement agent fees and other offering expenses payable by the Company, the Company received net proceeds of approximately $94.3 million. The Private Placement closed June 4, 2026.

Standby Equity Purchase Agreement

On January 25, 2025, the Company entered into the SEPA with YA II PN, Ltd., a Cayman Islands exempt limited partnership ("YA") in which pursuant to which the Company had the right, but not the obligation, to sell up to $200.0 million of its common stock to YA.

On June 4, 2026, in accordance with the terms of the SEPA, the Company provided a notice to YA regarding its termination of the SEPA, effective June 11, 2026. There were no amounts owed to YA under the SEPA at the time the termination notice was provided.

The Company did not make any sales under the SEPA during fiscal 2027, prior to termination. Comparatively, the Company had sales of 6.32 million shares for net proceeds of approximately $67 million in the first half of fiscal 2026.