Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 516

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1C
Chunk 516
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ger Sub”), and AirJoule Technologies LLC, formerly
known as Montana Technologies LLC (“Legacy Montana”). On March 14, 2024, pursuant to the Merger Agreement, Merger Sub was
merged with and into Legacy Montana, with Legacy Montana surviving the merger as a wholly-owned subsidiary of XPDB (the “Merger”
and, together with the other transactions contemplated by the Merger Agreement, the “Business Combination”). In connection
with closing the Business Combination (the “Closing”), XPDB changed its name from “Power & Digital Infrastructure
Acquisition II Corp.” to “Montana Technologies Corporation.”

In November 2024, to better align the Company’s name with its
business operations and AirJoule units, the Company changed its name from Montana Technologies Corporation to AirJoule Technologies Corporation,
and its wholly-owned subsidiary changed its name from Montana Technologies LLC to AirJoule Technologies LLC.

Prior to the Business Combination, all of the outstanding preferred
units of Legacy Montana were converted into Class B common units. As a result of the Business Combination, (i) each issued and outstanding
Class B common unit and Class C common unit of Legacy Montana was converted into the right to receive approximately 23.8 shares of newly
issued shares of Class A common stock of the Company, (ii) each issued and outstanding class A common unit of Legacy Montana converted
into the right to receive approximately 23.8 shares of newly issued shares of Class B common stock of the Company and (iii) each option
to purchase common units of Legacy Montana converted into the right to receive an option to purchase Class A common stock of the Company
having substantially similar terms to the corresponding option, including with respect to vesting and termination-related provisions,
except that such options represented the right to receive a number of shares of Class A common stock equal to the number of common units
subject to the corresponding option immediately prior to the Closing multiplied by approximately 23.8.

The Business Combination was accounted for as a reverse recapitalization
in accordance with U.S. generally accepted accounting principles (“GAAP”). Under this method of accounting, although
XPDB acquired the outstanding equity interest in Legacy Montana in the Business Combination, XPDB is treated as the acquired company and
Legacy Montana was treated as the accounting acquirer for financial statement purposes. Accordingly, the Business Combination was treated
as the equivalent of Legacy Montana issuing stock for the net assets of XPDB, accompanied by a recapitalization.

Furthermore, the