Company: AIRJW
Filing Date: 2025-05-05
Form Type: 424B3
Source: 0001213900-25-039770
Chunk: 226

Company: AirJoule Technologies Corp.
Filing Date: 2025-05-05
Form: 424B3
Chunk 226
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whether as an employee, director or individual independent contractor) to the Post-Combination Company or one of its subsidiaries through
the date on which such Earnout Shares are issued, as determined by a majority of the independent members of the Post-Combination Company
Board.

If the conditions for payment of the Earnout Shares
are satisfied and assuming all originally designated employees are then still providing services to the Post-Combination Company on the
date such condition is met, approximately 21% of the aggregate Earnout Shares will be payable to the employees and 79% of the aggregate
Earnout Shares will be payable to the holders of Legacy Montana common units, in accordance with their respective pro rata share immediately
following the Closing.

The settlement of the Earnout Shares to the holders
of Legacy Montana common units contains variations in something other than the fair value of the issuer’s equity shares. As such,
management determined that they should be classified as a liability and recognized at fair value at each reporting period with changes
in fair value included in earnings. The Earnout Shares are subject to ASC 718 and are accounted for as post-combination compensation
cost.

<div align='center'>F-31

AIRJOULE TECHNOLOGIES CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS</div>

Note 12 — FAIR VALUE MEASUREMENTS(cont.)

The estimated fair value of the Earnout
Shares was determined with a Monte Carlo simulation using a distribution of potential outcomes for expected EBITDA and stock price
at expected commission dates, utilizing a correlation coefficient for EBITDA and stock price, and assuming $50.0 million of
Annualized EBITDA per production line, with each of the production lines commissioned over a five-year period. EBITDA was discounted
to the valuation date with a weighted average cost of capital estimate and forecasted to each estimated commission date. Earnout
mechanics at each estimated commission date were assessed, and if the Earnout Thresholds were achieved, the future value of the
Earnout Shares was discounted to the valuation date utilizing a risk-free rate commensurate with the overall term. The commission
dates used reflected XPDB’s management’s best estimates regarding the time to complete full construction and operational
viability of a production line, including all permitting, regulatory approvals and necessary or useful inspections. The Earnout term
of 5 years and the Earnout mechanics which impact the timing of future cash flows represent contractual inputs. Assumptions