Company: AIRJW
Filing Date: 2025-05-05
Form Type: 424B3
Source: 0001213900-25-039770
Chunk: 218

Company: AirJoule Technologies Corp.
Filing Date: 2025-05-05
Form: 424B3
Chunk 218
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”), which brought in
approximately $61.8 million in gross proceeds. The Company issued and sold 5,807,647 shares of the Class A common stock to investors
upon the Closing in exchange for equity interests issued by Legacy Montana pursuant to Subscription Agreements entered into by Legacy
Montana with such investors in the first quarter of 2024, which resulted in gross proceeds of approximately $49.4 million, comprised
of approximately $43.4 million received in the first quarter of 2024 and approximately $6.0 million in the second quarter of
2024. Of this total, TEP Montana purchased an aggregate of 5,116,176 shares in exchange for approximately $43.5 million pursuant
to Subscription Agreements between Legacy Montana and TEP Montana. During the second quarter of 2024, the Company issued and sold an additional
1,238,500 shares of Class A common stock to investors pursuant to Subscription Agreements executed in the second quarter, which resulted
in additional gross proceeds of approximately $12.4 million.

Equity financing

Legacy Montana completed a preferred equity financing
during February 2023 with TEP Montana and issued 4,426 Series B Preferred Units in conjunction with this transaction. Upon
close of the Business combination, these shares were converted to 105,331 Class A common stock of the Company.

Note 11 — SHARE-BASED COMPENSATION

Legacy Montana Options

On April 5, 2023, Legacy Montana granted
383,151 options, as converted, exercisable for Class A common stock to key team members of Legacy Montana. The options immediately
vested, had an exercise price of $0.49, as converted, a term of seven years, and a grant date fair value of $0.14, as converted.
The Company used the Black-Scholes option pricing model to estimate the fair value of stock options. Fair value was estimated at the date
of grant.

In January, February and March 2024, 13 Legacy
Montana option holders exercised their options to purchase a total of 2,141,839 shares of Class A common stock, as converted, for
a total purchase price of $56,250. In June 2024, one Legacy Montana option holder exercised its options to purchase a total of 8,000
shares of Class A common stock, as converted, for a total purchase price of $3,920.

In September 2024, three Legacy Montana option