Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 969

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 5
Chunk 969
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 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,
recapitalizations and the like) for 15 consecutive trading days. As a result of this triggering event, the Company shall issue to the
investor a number of shares of Class A common stock within two business days of the one-year anniversary of the Closing Date. The True
Up Shares 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.

F-28

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

    Year
    Ended December 31, 2024 
  
    True Up Share Liability as
    of December 31, 2023 
    $— 
  
    Assumed
    in the Business Combination 
     555,000 
  
    Change
    in fair value 
     1,634,000 
  
    Balance
    as of December 31, 2024 
    $2,189,000 

The
estimated fair value of the true up share liability was determined utilizing a Monte Carlo simulation, with underlying forecast mathematics
based on geometric Brownian motion in a risk-neutral framework. The Calculation of the value of the True Up Shares considered the 15-day
average price over the one-year period following the Closing Date.

Subject
Vesting Shares liability

In
connection with the execution of the Merger Agreement and pursuant to the terms of the sponsor support agreement (the “Sponsor
Support Agreement”) entered into among the XPDB sponsor (the “Sponsor”), XPDB, Legacy Montana and other holders of
XPDB’s Class B common