Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 348

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1A
Chunk 348
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 March 14, 2024, the $10.00 price represents the Business Combination price. 

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

    Year
    Ended December 31, 2024 
  
    Earnout Shares Liability as
    of December 31, 2023 
    $— 
  
    Expensed
    as transaction costs of business combination 
     53,721,000 
  
    Change
    in fair value 
     (29,197,000)
  
    Balance
    as of December 31, 2024 
    $24,524,000 

As of December 31, 2024 and March 14, 2024, the estimated fair value
of all the Earnout Shares ($24.5 million and $53.7 million, respectively) represents 2,115,227 and 4,627,294 Earnout Shares, respectively.
The Earnout Shares liability in the preceding table represents the fair value of the contingent obligation to issue Earnout Shares to
Legacy Montana Equityholders (excluding the shares to employees accounted for under ASC 718) upon the achievement of certain Earnout Milestones.
For the year ended December 31, 2024, the change in the fair value of the earnout liability primarily relates to a decrease in the stock
price, changes in the timing of cash flows and an increase in the volatility.

True
Up Shares liability

As
discussed in Note 4 - Recapitalization, on March 8, 2024, XPDB and an investor entered into a Subscription Agreement pursuant
to which XPDB agreed to sell 588,235 shares of Class A common stock to the investor for an aggregate purchase price of approximately
$5.0 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 840,336 shares of Class
A common stock 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. During the year ended December 31, 2024, the Company’s volume-weighted average price of the Class
A common stock on the Nasdaq as reported by Bloomberg was less than $8.50 (as adjusted for stock splits, stock dividends, reorganizations,
rec