Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 1747

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 11
Chunk 1747
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2024 is June 6, 2024. Per ASC 718-10-35-2, compensation cost for an award of share-based compensation is recognized over the requisite service period. The service period for these awards begins on grant date. The Company considered the requirement in ASC 718-10-35-8 when recognizing current period expense. 

F-26

Note
12 — FAIR VALUE MEASUREMENTS

Items
Measured at Fair Value on a Recurring Basis:

The
Company accounts for certain liabilities at fair value on a recurring basis and classifies these liabilities within the fair value hierarchy
(Level 1, Level 2, or Level 3).

Liabilities
subject to fair value measurements are as follows:

    As
    of December 31, 2024 

    Level
    1  
    Level
    2  
    Level
    3  
    Total 
  
    Liabilities 

    Earnout
    Shares liability 
    $—  
    $—  
    $24,524,000  
    $24,524,000 
  
    True
    Up Shares liability 
     —  
     —  
     2,189,000  
     2,189,000 
  
    Subject
    Vesting Shares liability 
     —  
     —  
     7,819,000  
     7,819,000 
  
    Total
    liabilities 
    $—  
    $—  
    $34,532,000  
    $34,532,000 

Earnout
Shares

The
Legacy Montana Equityholders have the opportunity to receive additional equity consideration (in each case, in accordance with their
respective pro rata share) through the Earnout Shares. The maximum value of the Earnout Shares is capped at $200.0 million (“Maximum
Earnout Milestone Amount”) and the ability to receive Earnout Shares expires on the fifth anniversary of the Closing. A majority
of the independent members of the Post-Combination Company Board then serving has sole discretion in determining, among other things,
the achievement of the applicable milestones, the calculations of payments of Earnout Shares to the applicable Legacy Montana Equityholders,
the dates on which construction and operational viability of new production capacity is deemed completed and whether to consent to a
transfer of the applicable Legacy Montana Equityholder’s right to receive Earnout Shares