Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 1509

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 9B
Chunk 1509
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 Sponsor Support Agreement provides that as of immediately
prior to (but subject to) the Closing, the Subject Vesting Shares will be subject to an earnout, with the Subject Vesting Shares vesting
during the period beginning on the date of Closing and ending five (5) years following the date of Closing (i) simultaneously with the
issuance of the Earnout Shares made to the Legacy Montana Equityholders in a proportionate amount to the payment achieved in relation
to the maximum issuance of Earnout Shares of equity interests of $200.0 million (the “Performance Vesting Trigger”) and (ii)
up to 50% of the Subject Vesting Shares (including any vested Subject Vesting Shares from the Performance Vesting Trigger) vesting on
any day following the Closing when the closing price of a share of Combined Company Class A common stock on the Nasdaq (the “Closing
Share Price”) equals or exceeds $12.00 (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the
like) and all remaining Subject Vesting Shares vesting when the Closing Share Price equals or exceeds $14.00 (as adjusted for stock splits,
stock dividends, reorganizations, recapitalizations and the like).

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

    Year
    Ended December 31, 2024 
  
    Subject Vesting Shares liability
    as of December 31, 2023 
    $— 
  
    Assumed
    in the Business Combination 
     11,792,000 
  
    Change
    in fair value 
     (3,973,000)
  
    Balance
    as of December 31, 2024 
    $7,819,000 

The
estimated fair value of the Subject Vesting Share liability was determined utilizing a Monte Carlo simulation, with underlying forecast
mathematics based on geometric Brownian motion in a risk-neutral framework. The calculation of the value of the Subject Vesting Shares
considered the $12.00 and $14.00 vesting conditions in addition to the vesting related to the Earnout Milestone Amount.

Items
Measured at Fair Value on a Nonrecurring Basis

In
addition to items that are measured at fair value on a recurring basis, the Company measures certain assets and liabilities at fair value
on a nonrecurring basis, which are not included in the table above. As these nonre