Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 1175

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 7
Chunk 1175
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 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 stock, $0.0001 par value per share (the “XPDB Class B common stock”), the Sponsor and the other
holders of XPDB Class B common stock agreed to, among other things, (i) vote any XPDB Class A common stock, $0.0001 par value per share
(the “Class A common stock”), of XPDB or XPDB Class B common stock (collectively, the “Sponsor Securities”),
held of record or thereafter acquired in favor of the proposals presented by XPDB at a special meeting to approve the proposed Business
Combination, (ii) be bound by certain other covenants and agreements related to the