Company: AIRJW
Filing Date: 2025-05-16
Form Type: POS AM
Source: 0001213900-25-044504
Chunk: 156

Company: AirJoule Technologies Corp.
Filing Date: 2025-05-16
Form: POS AM
Chunk 156
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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 (the “True Up Shares”) 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. The True Up Shares are
considered a variable-share obligation under ASC 480-10-25-14, and as a result were accounted for as a liability recognized at fair
value at each reporting period with changes in fair value included in earnings. See Note 12 — Fair Value Measurements.

As discussed in Note 1 — Organization and Business Operations, 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. |

F-18 AIRJOULE TECHNOLOGIES CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 4 — RECAPITALIZATION(cont.)

Transaction Proceeds

Upon closing of the Business Combination, the
Company received gross proceeds of $ million inclusive of $ million from the PIPE investment, offset by total transaction
costs and other fees totaling