Company: AIRJW
Filing Date: 2025-03-27
Form Type: S-1
Source: 0001013762-25-002897
Chunk: 206

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-27
Form: S-1
Chunk 206
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 4.2 |   |     |   |       5.0 |   |

____________

(1)

The following table presents the changes in the fair value of the Earnout Shares liability:

| Earnout Shares Liability as of December 31, 2023      |     | Year Ended   
 December 31, 
 2024         |           — |   |
|:------------------------------------------------------|:----|:-------------|------------:|:--|
| Expensed as transaction costs of business combination |     |              |  53,721,000 |   |
| Change in fair value                                  |     |              | (29,197,000 | ) |
| Balance as of December 31, 2024                       |     | $            |  24,524,000 |   |

As of December 31, 2024 and March 14, 2024, the estimated fair value of all the Earnout Shares ($ million and $ million, respectively) represents and Earnout Shares, respectively. The Earnout Shares liability in the preceding table represents the fair value of the contingent obligation to issue Earnout Shares to Legacy Montana Equityholders (excluding the shares to employees accounted for under ASC 718) upon the achievement of certain Earnout Milestones. For the year ended December 31, 2024, the change in the fair value of the earnout liability primarily relates to a decrease in the stock price, changes in the timing of cash flows and an increase in the volatility.

True Up Shares liability

As discussed in Note 4 — Recapitalization, on March 8, 2024, XPDB and an investor entered into a Subscription Agreement pursuant to which XPDB agreed to sell shares of Class A common stock to the investor for an aggregate purchase price of approximately $ million, contingent on the Closing of the Business Combination. The Subscription Agreement provides that, subject to certain conditions set forth therein, the Company may be required to issue to the investor up to an additional shares of Class A common stock if the trading price of the Class A common stock falls below the per share purchase price within one year of the Closing of the Business Combination. During the year ended December 31, 2024, the Company’s volume-weighted average price of the Class A common stock on the Nasdaq as reported by Bloomberg was less than $ (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for 15 consecutive trading days. As a result of this triggering event