Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 1049

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 6
Chunk 1049
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 have vested simultaneously with the Earnout Stock Payment, then (x) if the
number of Subject Vesting Shares that have vested exceeds 690,368, then no additional Subject Vesting Shares shall vest and (y) if
the number of Subject Vesting Shares that have vested is less than 690,368 (the “Deficit Amount”), then a number of Subject
Vesting Shares equal to 690,368 less the Deficit Amount shall vest; and

    ● Any remaining Subject Vesting Shares shall vest in full at the same time that the volume weighted average price of Class A common stock on the Nasdaq as reported by Bloomberg L.P. equals or exceeds $14.00 per share (as adjusted for extraordinary transactions, stock splits, extraordinary stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30 consecutive trading day period. 

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 (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