View anything as a price to the company. This is a lesson you pay to not identify the problem and fire them early. Putting generosity aside, as an early startup

View anything as a price to the company. This is a lesson you pay to not identify the problem and fire them early. Putting generosity aside, as an early startup, you cannot afford legal battles and ex-early-employee badmouthing you afterwards. And for an employee this early, they get what, at most 1% of the equity with a vesting schedule of 4 years? So at most 0.25%, which is nothing in the long run regarding the company's success. So, have a chat with them, negotiate at least 6 months equity, ask them to sign an agreement, and let them go asap.