Company: AIRJW
Filing Date: 2025-05-27
Form Type: POS AM
Source: 0001213900-25-047828
Chunk: 155

Company: AirJoule Technologies Corp.
Filing Date: 2025-05-27
Form: POS AM
Chunk 155
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DB agreed to sell 588,235shares of Class A common stock to the investor for an aggregate purchase price of approximately $ 5.0million, 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 840,336shares 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 11 – 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.

F-17

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

| ● | Following                                                                                          
 Closing, the Legacy Montana Equityholders 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 $ 7.5million inclusive of $ 5.0million from the PIPE investment, offset by total transaction costs and other fees totaling of $ 7.5million. The following table reconciles the elements of the Business Combination to the condensed consolidated statements of cash flows and the condensed consolidated statement of changes in stockholders’