Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 1507

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 9B
Chunk 1507
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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,
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