Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 1236

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 7A
Chunk 1236
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,
the Business Combination was consummated on March 14, 2024, which, for accounting purposes, was treated as the equivalent of Legacy Montana
issuing stock for the net assets of XPDB, accompanied by a recapitalization. Under this method of accounting, XPDB was treated as the
acquired company for financial accounting and reporting purposes under US GAAP.

Legacy Montana was determined to be the accounting
acquirer based on evaluation of the following facts and circumstances:

●Following Closing, the Legacy
Montana Equity holders had the greatest voting interest in the Post-Combination Company;

●The Post-Combination Company
Board immediately after Closing had six members, and Legacy Montana nominated the majority of the members of the Post-Combination Company
Board at Closing;

●The ongoing operations of the
Post-Combination Company was comprised of Legacy Montana operations;

●Legacy Montana’s existing
senior management became the senior management of the Post-Combination Company; and

●The intended strategy and operations
of the Post-Combination Company continued Legacy Montana’s prior strategy and operations.

Transaction Proceeds

Upon closing of the Business Combination, the Company received gross
proceeds of $7.5 million inclusive of $5.0 million from the PIPE investment, offset by total transaction costs and other fees totaling
of $7.5 million. The following table reconciles the elements of the Business Combination to the consolidated statements of cash flows
and the consolidated statement of changes in stockholders’ equity (deficit) for the year ended December 31, 2024:

    Cash-trust and cash, net of redemptions 
    $2,455,361 
  
    Add: proceeds from PIPE investment 
     4,999,998 
  
    Less: transaction costs and advisory fees, paid 
     (7,455,359)
  
    Net proceeds from the Business Combination 
     — 
  
    Less: Subject Vesting Shares liability 
     (11,792,000)
  
    Less: True Up Shares liability 
     (555,000)
  
    Less: accounts payable and accrued liabilities combined 
     (9,054,854)
  
    Add: other, net 
     374,377 
  
    Reverse recapitalization, net 
    $(21,027,477)

F-16

The number of shares of Common Stock issued immediately
following the consummation of the Business Combination were:

    XPDB Class A