Company: AIRJW
Filing Date: 2025-05-16
Form Type: POS AM
Source: 0001213900-25-044504
Chunk: 168

Company: AirJoule Technologies Corp.
Filing Date: 2025-05-16
Form: POS AM
Chunk 168
---
 in fair value are not recognized as long as the contracts continue to be classified in equity. Subscription Agreements During the year ended December 31, 2024, the Company entered into subscription agreements with various investors (the “Subscription Agreements”), which brought in approximately $ 61.8million in gross proceeds. The Company issued and sold 5,807,647shares of the Class A common stock to investors upon the Closing in exchange for equity interests issued by Legacy Montana pursuant to Subscription Agreements entered into by Legacy Montana with such investors in the first quarter of 2024, which resulted in gross proceeds of approximately $ 49.4million, comprised of approximately $ 43.4million received in the first quarter of 2024 and approximately $ 6.0million in the second quarter of 2024. Of this total, TEP Montana purchased an aggregate of 5,116,176shares in exchange for approximately $ 43.5million pursuant to Subscription Agreements between Legacy Montana and TEP Montana. During the second quarter of 2024, the Company issued and sold an additional 1,238,500shares of Class A common stock to investors pursuant to Subscription Agreements executed in the second quarter, which resulted in additional gross proceeds of approximately $ 12.4million. Equity financing Legacy Montana completed a preferred equity financing during February 2023 with TEP Montana and issued 4,426Series B Preferred Units in conjunction with this transaction. Upon close of the Business combination, these shares were converted to 105,331Class A common stock of the Company. Note 11 — SHARE-BASED COMPENSATION Legacy Montana Options On April 5, 2023, Legacy Montana granted 383,151options, as converted, exercisable for Class A common stock to key team members of Legacy Montana. The options immediately vested, had an exercise price of $ 0.49, as converted, a term of seven years, and a grant date fair value of $ 0.14, as converted. The Company used the Black-Scholes option pricing model to estimate the fair value of stock options. Fair value was estimated at the date of grant. In January, February and March 2024, 13 Legacy Montana option holders exercised their options to purchase a total of 2,141,839shares of Class A common stock, as converted, for a total purchase price of $ 56,250. In June 2024, one Legacy Montana option holder exercised its options to purchase a total