DNA X, Inc. Approves Substitute Cash Grants for Board Members

What Happened
DNA X, Inc. announced on August 21, 2026 that its compensation committee approved cash awards ("Substitute Cash Grants") to all members of the board of directors, including CEO Mike Mulica, because shares under the Company’s 2019 Equity Incentive Plan (EIP) were unavailable. The cash awards are structured to replicate the value and vesting of restricted stock units (RSUs) that would have been granted under the EIP.

Key Details

• Approval date: August 21, 2026 (compensation committee meeting).
• Notional RSU value: Phantom RSUs sized to $60,000 per director, based on the fair market value on August 21, 2026.
• Vesting trigger: Phantom RSUs (and the corresponding cash payout) vest at the earlier of the Company’s 2027 annual meeting of stockholders or a change in control.
• Payout method: The Substitute Cash Grant equals the fair market value of the Company’s common stock underlying the Phantom RSUs at the Vesting Event and will be paid at that time.

Why It Matters
For investors, this filing shows the company is substituting cash for planned equity grants because EIP shares aren’t available. That means future director compensation likely will be a cash outflow (when the Vesting Event occurs) rather than additional share dilution at grant time. The filing does not disclose total cash liability, number of recipients beyond "all board members," or specific accounting treatment, so investors should watch future filings for any cash expense or balance-sheet impact.