# EDGAR Filing Document

**Accession Number:** 0001855474
**File Stem:** 0001193125-25-282910
**Filing Date:** 2025-11
**Character Count:** 186505
**Document Hash:** c8e73d88c9a2f453944855dbadd89014
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-25-282910.hdr.sgml**: 20251114

**ACCESSION NUMBER**: 0001193125-25-282910

**CONFORMED SUBMISSION TYPE**: 424B3

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20251114

**DATE AS OF CHANGE**: 20251114

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** AirJoule Technologies Corp.
- **CENTRAL INDEX KEY:** 0001855474
- **STANDARD INDUSTRIAL CLASSIFICATION:** AIR COND & WARM AIR HEATING EQUIP & COMM & INDL REFRIG EQUIP [3585]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 424B3
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-278633
- **FILM NUMBER:** 251485829

**BUSINESS ADDRESS:**
- **STREET 1:** 34361 INNOVATION DRIVE
- **CITY:** RONAN
- **STATE:** MT
- **ZIP:** 59864
- **BUSINESS PHONE:** 800-942-3083

**MAIL ADDRESS:**
- **STREET 1:** 34361 INNOVATION DRIVE
- **CITY:** RONAN
- **STATE:** MT
- **ZIP:** 59864

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Montana Technologies Corp.
- **DATE OF NAME CHANGE:** 20241104

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** AirJoule Technologies Corp.
- **DATE OF NAME CHANGE:** 20241104

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Montana Technologies Corp.
- **DATE OF NAME CHANGE:** 20240315

**Filed pursuant to Rule 424(b)(3)**

**Registration Statement No. 333-278633**

**Prospectus Supplement No. 6**

**(To Prospectus dated July 12, 2024)**

**AIRJOULE TECHNOLOGIES CORPORATION**

![img19799479_0.jpg](img19799479_0.jpg)

This prospectus supplement updates, amends and supplements the prospectus dated July 12, 2024 (the "Prospectus"), which forms a part of our Registration Statement on Form S-1 (Registration No. 333-278633). Capitalized terms used in this prospectus supplement and not otherwise defined herein have the meanings specified in the Prospectus.

This prospectus supplement is being filed to update, amend and supplement the information included in the Prospectus with the information contained in our Quarterly Report on Form 10-Q for the period ended September 30, 2025, filed with the Securities and Exchange Commission on November 14, 2025, which is set forth below.

This prospectus supplement is not complete without the Prospectus. This prospectus supplement should be read in conjunction with the Prospectus, which is to be delivered with this prospectus supplement, and is qualified by reference thereto, except to the extent that the information in this prospectus supplement updates or supersedes the information contained in the Prospectus. Please keep this prospectus supplement with your Prospectus for future reference.

AirJoule Technologies' Common Stock and Warrants are quoted on NASDAQ under the symbols "AIRJ" and "AIRJW." On November 12, 2025, the closing price of our Common Stock and Warrants was $4.62 and $1.03, respectively.

WE ARE AN "EMERGING GROWTH COMPANY" UNDER FEDERAL SECURITIES LAWS AND ARE SUBJECT TO REDUCED PUBLIC REPORTING REQUIREMENTS. INVESTING IN OUR SECURITIES INVOLVES CERTAIN RISKS. SEE "RISK FACTORS" BEGINNING ON PAGE 6 OF THE PROSPECTUS.

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if the Prospectus or this prospectus supplement is truthful or complete. Any representation to the contrary is a criminal offense.

The date of this prospectus supplement is November 14, 2025.

------

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q**

**(Mark One)**

☒ **QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended September 30, 2025**

**☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from ______________ to ______________**

**Commission File Number 001-41151**

**AIRJOULE TECHNOLOGIES CORPORATION**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **86-2962208** |
| (State or other jurisdiction of<br>incorporation or organization) | (IRS Employer<br>Identification No.) |

---

---

| | |
|:---|:---|
| **34361 Innovation Drive**<br>**Ronan, Montana** | **59864** |
| (Address of principal executive offices) | (Zip Code) |

---

**(800) 942-3083**

(Registrant's telephone number, including area code)

**N/A**

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Class A common stock, par value $0.0001 per share | AIRJ | The Nasdaq Stock Market LLC |
| Warrants to purchase Class A common stock | AIRJW | The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act:

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
|  |  | Emerging growth company | ☒ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 1, 2025, there were 60,679,706 shares of the registrant's Class A common stock, par value $0.0001 per share, issued and outstanding.

------

**AIRJOULE TECHNOLOGIES CORPORATION**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| [**<u>Part 1 - Financial Information</u>**](#part_1_financial_information) | [**<u>Part 1 - Financial Information</u>**](#part_1_financial_information) | 1 |
| Item 1. | [<u>Condensed Consolidated Financial Statements (Unaudited)</u>](#condensed_consolidated_financial_stateme) | 1 |
|  | [<u>Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 (Unaudited)</u>](#consolidated_balance_sheets) | 1 |
|  | [<u>Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2025 and 2024 (Unaudited)</u>](#statements_of_operations_unaudited) | 2 |
|  | [<u>Condensed Consolidated Statements of Changes in Members' and Stockholders' Equity (Deficit) for the Three and Nine Months Ended September 30, 2025 and 2024 (Unaudited)</u>](#stockholders_equity) | 3 |
|  | [<u>Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024 (Unaudited)</u>](#cash_flows_unaudited) | 5 |
|  | [<u>Notes to the Unaudited Condensed Consolidated Financial Statements</u>](#notes_to_the_unaudited_condensed) | 6 |
| Item 2. | [<u>Management's Discussion and Analysis of Financial Condition And Results of Operations</u>](#management_discussion_and_ana) | 30 |
| Item 3. | [<u>Quantitative and Qualitative Disclosures About Market Risk</u>](#quantitative_and_qualitative_disclosures) | 38 |
| Item 4. | [<u>Controls and Procedures</u>](#controls_and_procedures) | 38 |
| [**<u>Part II - Other Information</u>**](#part_ii_other_information) | [**<u>Part II - Other Information</u>**](#part_ii_other_information) | 39 |
| Item 1. | [<u>Legal Proceedings</u>](#legal_proceedings) | 39 |
| Item 1A. | [<u>Risk Factors</u>](#risk_factors) | 39 |
| Item 2. | [<u>Unregistered Sales of Equity Securities and Use of Proceeds</u>](#unregistered_sales_of_equity_securities) | 39 |
| Item 3. | [<u>Defaults Upon Senior Securities</u>](#defaults_upon_senior_securities) | 39 |
| Item 4. | [<u>Mine Safety Disclosures</u>](#mine_safety_disclosures) | 39 |
| Item 5. | <u>Other Information</u> | 39 |
| Item 6. | [<u>Exhibits</u>](#exhibits) | 40 |
| [<u>Signatures</u>](#signatures) | [<u>Signatures</u>](#signatures) | 41 |

---

i

------

**PART 1 - FINANCIAL INFORMATION**

**Item 1. Condensed Consolidated Financial Statements**

**AIRJOULE TECHNOLOGIES CORPORATION**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **September 30,** | **December 31,** |
|  | **2025** | **2024** |
|  | **(unaudited)** |  |
| **Assets** |  |  |
| Current assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash, cash equivalents and restricted cash | $26007725 | $28021748 |
| &nbsp;&nbsp;&nbsp;&nbsp;Due from related party | 1031635 | 2820129 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 823808 | 613754 |
| Total current assets | 27863168 | 31455631 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease right-of-use asset | 123215 | 147001 |
| &nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net | 27633 | 16373 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment in AirJoule, LLC | 344660102 | 338178633 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | 55723 | 54482 |
| Total assets | $372729841 | $369852120 |
| **Liabilities and stockholders' equity** |  |  |
| Current liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $143075 | $79202 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other accrued expenses | 1792779 | 1720318 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liability, current | 33657 | 30227 |
| &nbsp;&nbsp;&nbsp;&nbsp;True Up Shares liability |  | 2189000 |
| Total current liabilities | 1969511 | 4018747 |
| &nbsp;&nbsp;&nbsp;&nbsp;Earnout Shares liability | 7144000 | 24524000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Subject Vesting Shares liability | 1506000 | 7819000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liability, non-current | 98390 | 124002 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax liability | 75658539 | 81256047 |
| Total liabilities | 86376440 | 117741796 |
| Commitments and contingencies (Note 12) |  |  |
| Stockholders' equity |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, $0.0001 par value; 25,000,000 authorized shares and 0 shares issued<br> and outstanding as of September 30, 2025 and December 31, 2024 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Class A common stock, $0.0001 par value; 600,000,000 authorized shares and<br> 60,538,813 and 55,928,661 shares issued and outstanding as of September 30, 2025<br> and December 31, 2024, respectively | 6054 | 5593 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 74440174 | 53577270 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 211907173 | 198527461 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 286353401 | 252110324 |
| **Total liabilities and stockholders' equity** | $372729841 | $369852120 |

---

*The accompanying notes are an integral part of these condensed consolidated financial statements.*

------

**AIRJOULE TECHNOLOGIES CORPORATION**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>September 30,** | **Three Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Cost and expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | $2962759 | $2438227 | $9500454 | $6462671 |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | (8476) | (87147) | 781066 | 1809814 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 50473 | 23639 | 72476 | 136205 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transaction costs incurred in connection with business combination |  |  |  | 54693103 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 2871 | 2136 | 6748 | 4437 |
| Loss from operations | (3007627) | (2376855) | (10360744) | (63106230) |
| Other income (expense): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | 272899 | 374051 | 799656 | 616677 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on contribution to AirJoule, LLC |  |  |  | 333500000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity loss from investment in AirJoule, LLC | (1948586) | (2336554) | (6268531) | (2943724) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of Earnout Shares liability | (1728000) | 31759000 | 17380000 | 37151000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of True Up Shares liability |  | (1866000) | 106106 | (1733000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of Subject Vesting Shares liability | (95000) | 8188000 | 6313000 | 7522000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on settlement of legal fees |  |  |  | 2207445 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income (expense), net | 98187 | 6921 | (187283) | 6921 |
| Total other income (loss), net | (3400500) | 36125418 | 18142948 | 376327319 |
| Income (loss) before income taxes | (6408127) | 33748563 | 7782204 | 313221089 |
| Income tax benefit (expense) | 2395968 | 1268295 | 5597508 | (83219044) |
| **Net income (loss)** | $(4012159) | $35016858 | $13379712 | $230002045 |
| Weighted average Class A common stock outstanding, basic | 60452978 | 51026682 | 58598923 | 45981155 |
| Basic net income (loss) per share, Class A common stock | $(0.07) | $0.63 | $0.23 | $4.53 |
| Weighted average Class A common stock outstanding, diluted | 60452978 | 52586743 | 59608314 | 47372900 |
| Diluted net income (loss), per share, Class A common stock | $(0.07) | $0.61 | $0.22 | $4.41 |
| Weighted average Class B common stock outstanding, basic and diluted |  | 4759642 |  | 4759642 |
| Basic net income per share, Class B common stock | $— | $0.63 | $— | $4.53 |
| Diluted net income per share, Class B common stock | $— | $0.61 | $— | $4.41 |

---

*The accompanying notes are an integral part of these condensed consolidated financial statements.*

------

**AIRJOULE TECHNOLOGIES CORPORATION**

**CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN MEMBERS' AND STOCKHOLDERS' EQUITY (DEFICIT) (UNAUDITED)**

**For the Three and Nine Months Ended September 30, 2025**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Class A<br>Common Stock** | **Class A<br>Common Stock** | **Additional<br>Paid-In** |  |  |
|  | **Shares** | **Amount** | **Capital** | **Retained Earnings (Accumulated Deficit)** | **Total Stockholders' Equity (Deficit)** |
| Balance at December 31, 2024 | 55928661 | $5593 | $53577270 | $198527461 | $252110324 |
| Exercise of options | 147579 | 15 | 41745 |  | 41760 |
| Share-based compensation |  |  | 1069076 |  | 1069076 |
| Issuance of True up Shares | 275880 | 28 | 2082866 |  | 2082894 |
| Net income |  |  |  | 14878658 | 14878658 |
| Balance at March 31, 2025 | 56352120 | $5636 | $56770957 | $213406119 | $270182712 |
| Exercise of options | 148486 | 15 | 57943 |  | 57958 |
| Share-based compensation |  |  | 1571980 |  | 1571980 |
| PIPE offering proceeds, net | 3775126 | 377 | 14243353 |  | 14243730 |
| Issuance of common stock upon vesting of restricted stock units | 163861 | 16 | (16) |  |  |
| Net income |  |  |  | 2513213 | 2513213 |
| Balance at June 30, 2025 | 60439593 | $6044 | $72644217 | $215919332 | $288569593 |
| Share-based compensation |  |  | 1298924 |  | 1298924 |
| Purchases pursuant to employee stock purchase plan | 11756 | 1 | 41168 |  | 41169 |
| Equity Line Purchase Agreement proceeds, net | 87464 | 9 | 457035 |  | 457044 |
| Issuance costs for PIPE offering |  |  | (1170) |  | (1170) |
| Net loss |  |  |  | (4012159) | (4012159) |
| Balance at September 30, 2025 | 60538813 | $6054 | $74440174 | $211907173 | $286353401 |

---

*The accompanying notes are an integral part of these condensed consolidated financial statements.*

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**AIRJOULE TECHNOLOGIES CORPORATION**

**CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN MEMBERS' AND STOCKHOLDERS' EQUITY (DEFICIT) (UNAUDITED)**

**For the Three and Nine Months Ended September 30, 2024**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Members'** | **Preferred** | **Class A<br>Common Stock** | **Class A<br>Common Stock** | **Class B <br>Common Stock** | **Class B <br>Common Stock** |  |  |  |  |
|  | **Contribution** | **Units** | **Shares** | **Amount** | **Shares** | **Amount** | **Subscription Receivable** | **Additional<br>Paid-In Capital** | **Retained Earnings (Accumulated Deficit)** | **Total Stockholders' Equity (Deficit)** |
| Balance at December 31, 2023 | $2109310 | $9158087 |  | $— |  | $— | $— | $— | $(17168101) | $(5900704) |
| Retroactive application of recapitalization | (2109310) | (9158087) | 32731583 | 3274 | 4759642 | 476 |  | 11263647 |  |  |
| Balance at December 31, 2023 | $— | $— | 32731583 | $3274 | 4759642 | $476 | $— | $11263647 | $(17168101) | $(5900704) |
| Issuance of common stock |  |  | 5807647 | 581 |  |  | (6000000) | 49364419 |  | 43365000 |
| Exercise of warrants |  |  | 380771 | 38 |  |  |  | 45722 |  | 45760 |
| Exercise of options |  |  | 2141839 | 214 |  |  |  | 56036 |  | 56250 |
| Reverse capitalization, net of transaction costs |  |  | 8001930 | 800 |  |  |  | (21028277) |  | (21027477) |
| Net income |  |  |  |  |  |  |  |  | 181555292 | 181555292 |
| Balance at March 31, 2024 | $— | $— | 49063770 | $4907 | 4759642 | $476 | $(6000000) | $39701547 | $164387191 | $198094121 |
| Issuance of common stock pursuant to June 2024 subscription agreement |  |  | 1238500 | 124 |  |  |  | 12384876 |  | 12385000 |
| Exercise of warrants |  |  | 705758 | 71 |  |  |  | (71) |  |  |
| Exercise of options |  |  | 8000 |  |  |  |  | 3920 |  | 3920 |
| Subscription proceeds received |  |  |  |  |  |  | 6000000 |  |  | 6000000 |
| Share-based compensation |  |  |  |  |  |  |  | 150519 |  | 150519 |
| Net income |  |  |  |  |  |  |  |  | 13429895 | 13429895 |
| Balance at June 30, 2024 | $— | $— | 51016028 | $5102 | 4759642 | $476 | $— | $52240791 | $177817086 | $230063455 |
| Exercise of options |  |  | 67495 | 7 |  |  |  | 33066 |  | 33073 |
| Share-based compensation |  |  |  |  |  |  |  | 587951 |  | 587951 |
| Net income |  |  |  |  |  |  |  |  | 35016858 | 35016858 |
| Balance at September 30, 2024 | $— | $— | 51083523 | $5109 | 4759642 | $476 | $— | $52861808 | $212833944 | $265701337 |

---

*The accompanying notes are an integral part of these condensed consolidated financial statements.*

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**AIRJOULE TECHNOLOGIES CORPORATION**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)**

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| | | |
|:---|:---|:---|
|  | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** |
| **Cash flows from operating activities** |  |  |
| Net income | $13379712 | $230002045 |
| Adjustment to reconcile net income to cash used in operating activities: |  |  |
| Depreciation and amortization | 6748 | 4437 |
| Deferred tax expense (benefit) | (5597508) | 83219044 |
| Amortization of operating lease right-of-use assets | 23786 | 21512 |
| Change in fair value of Earnout Shares liability | (17380000) | (37151000) |
| Change in fair value of True Up Shares liability | (106106) | 1733000 |
| Change in fair value of Subject Vesting Shares liability | (6313000) | (7522000) |
| Change in fair value of Equity Line Obligation liability | 148495 |  |
| Change in accrued royalties | (250000) |  |
| Gain on contribution to AirJoule, LLC |  | (333500000) |
| Equity loss from investment in AirJoule, LLC | 6268531 | 2943724 |
| Non-cash transaction costs in connection with business combination |  | 53721000 |
| Gain on settlement of legal fees |  | (2207445) |
| Share-based compensation | 3592085 | 738470 |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Due from related party | 2136390 | (1962873) |
| &nbsp;&nbsp;&nbsp;&nbsp;Due to related party |  | (1440000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (129214) | (515214) |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | (22181) | (16453) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 49742 | (1971156) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses, accrued transaction costs and other liabilities | 156789 | (7658315) |
| **Net cash used in operating activities** | (4035731) | (21561224) |
| **Cash flows from investing activities** |  |  |
| Purchases of fixed assets | (18008) | (16031) |
| Investment in AirJoule, LLC | (12750000) | (10000000) |
| **Net cash used in investing activities** | (12768008) | (10016031) |
| **Cash flows from financing activities** |  |  |
| Proceeds from the exercise of warrants |  | 45760 |
| Proceeds from the exercise of options and purchases pursuant to employee stock purchase plan | 140887 | 93243 |
| Proceeds from the PIPE offering, net | 14243731 |  |
| Proceeds from the issuance of common stock |  | 61750000 |
| Proceeds from the issuance of common stock pursuant to Equity Line Purchase Agreement | 405098 |  |
| **Net cash provided by financing activities** | 14789716 | 61889003 |
| Net increase (decrease) in cash, cash equivalents and restricted cash | (2014023) | 30311748 |
| Cash, cash equivalents and restricted cash, beginning of period | 28021748 | 375796 |
| **Cash, cash equivalents and restricted cash, end of the period** | $26007725 | $30687544 |
| **Supplemental non-cash investing and financing activities:** |  |  |
| Issuance of True Up Shares | $2082894 | $— |
| Deferred offering costs included in accrued expenses and other current liabilities | $82081 | $— |
| Initial recognition of True Up Shares liability | $— | $555000 |
| Initial recognition of Subject Vesting Shares liability | $— | $11792000 |
| Initial recognition of ROU asset and operating lease liability | $— | $172649 |
| Liabilities combined in recapitalization, net | $— | $8680477 |
| Contribution to AirJoule, LLC of license to technology | $— | $333500000 |
| **Supplemental cash flow information:** |  |  |
| Taxes paid | $— | $— |

---

*The accompanying notes are an integral part of these condensed consolidated financial statements.*

------

**AIRJOULE TECHNOLOGIES CORPORATION**

**NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**Note 1 — ORGANIZATION AND BUSINESS OPERATIONS**

We are an advanced technology company whose purpose is to free the world from its water and energy constraints by delivering groundbreaking sorption technologies. Our vision is to be the leading technology platform that unleashes the power of water from air. AirJoule produces pure distilled water from air, and our proprietary AirJoule platform, at commercial scale, will mitigate water scarcity through distributed water generation for businesses and consumers around the world. Our products are especially valuable for industrial users, which generate significant amounts of waste heat that can be used to power our sorption technologies to produce low cost pure distilled water and dehumidified air – two key inputs for a variety of industrial activities, including data centers and advanced manufacturing. In HVAC applications, AirJoule is designed to reduce energy consumption, minimize or even eliminate the use of environmentally-harmful refrigerants, and generate material cost efficiencies for air conditioning systems. We are focused on commercialization and scaling manufacturing of our AirJoule products through our global collaborations, including with GE Vernova and Carrier Global Corporation ("Carrier"), and we believe that deploying AirJoule units worldwide will serve our purpose of freeing the world of its water and energy constraints.

Power & Digital Infrastructure Acquisition II Corp ("XPDB") entered into an Agreement and Plan of Merger (the "Merger Agreement"), dated June 5, 2023, as amended on February 5, 2024, with XPDB Merger Sub, LLC, a direct wholly-owned subsidiary of XPDB ("Merger Sub"), and AirJoule Technologies LLC, formerly known as Montana Technologies LLC ("Legacy Montana"). On March 14, 2024, pursuant to the Merger Agreement, Merger Sub was merged with and into Legacy Montana, with Legacy Montana surviving the merger as a wholly-owned subsidiary of XPDB (the "Merger" and, together with the other transactions contemplated by the Merger Agreement, the "Business Combination"). In connection with closing the Business Combination (the "Closing"), XPDB changed its name from "Power & Digital Infrastructure Acquisition II Corp." to "Montana Technologies Corporation."

In November 2024, to better align the Company's name with its business operations and AirJoule technology, the Company changed its name from Montana Technologies Corporation to AirJoule Technologies Corporation, and its wholly-owned subsidiary changed its name from Montana Technologies LLC to AirJoule Technologies LLC.

Prior to the Business Combination, all of the outstanding preferred units of Legacy Montana were converted into Class B common units. As a result of the Business Combination, (i) each issued and outstanding Class B common unit and Class C common unit of Legacy Montana was converted into the right to receive approximately 23.8 shares of newly issued shares of Class A common stock of the Company, (ii) each issued and outstanding class A common unit of Legacy Montana converted into the right to receive approximately 23.8 shares of newly issued shares of Class B common stock of the Company and (iii) each option to purchase common units of Legacy Montana converted into the right to receive an option to purchase Class A common stock of the Company having substantially similar terms to the corresponding option, including with respect to vesting and termination-related provisions, except that such options represented the right to receive a number of shares of Class A common stock equal to the number of common units subject to the corresponding option immediately prior to the Closing multiplied by approximately 23.8.

The Business Combination was accounted for as a reverse recapitalization in accordance with U.S. generally accepted accounting principles ("GAAP"). Under this method of accounting, although XPDB acquired the outstanding equity interest in Legacy Montana in the Business Combination, XPDB is treated as the acquired company and Legacy Montana was treated as the accounting acquirer for financial statement purposes. Accordingly, the Business Combination was treated as the equivalent of Legacy Montana issuing stock for the net assets of XPDB, accompanied by a recapitalization.

Furthermore, the historical financial statements of Legacy Montana became the historical financial statements of the Company upon the consummation of the Merger. As a result, the condensed consolidated financial statements reflect (i) the historical operating results of Legacy Montana prior to the Business Combination; (ii) the combined results of XPDB and Legacy Montana following the Closing; (iii) the assets and liabilities of Legacy Montana at their historical cost and (iv) Legacy Montana's equity structure for all periods presented, as affected by the recapitalization presentation after completion of the Business Combination. See Note 4 - *Recapitalization* for further details of the Business Combination.

On January 25, 2024, Legacy Montana entered into a joint venture formation framework agreement (the "Framework Agreement") with GE Ventures LLC ("GE Vernova"), a Delaware limited liability company and, solely for the purposes specified therein, GE Vernova LLC, a Delaware limited liability company, pursuant to which Legacy Montana and GE Vernova agreed, subject to the terms and conditions of the Framework Agreement, including certain closing conditions specified therein, to form a joint venture (the "AirJoule JV") in which Legacy Montana and GE Vernova will each hold a 50% interest. The joint venture transaction closed on March 4, 2024. AirJoule, LLC, the entity formed under this agreement, is included under the equity method of accounting within these financial statements. See Note 5 - *Equity Method Investment* for further details.

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**Note 2 — LIQUIDITY AND CAPITAL RESOURCES**

*The April 2025 PIPE*

On April 23, 2025, the Company entered into subscription agreements (the "April 2025 PIPE Subscription Agreements") with certain investors (the "April 2025 PIPE Investors"), pursuant to which, among other things, the April 2025 PIPE Investors agreed to subscribe for and purchase from AirJoule, and AirJoule agreed to issue and sell to the April 2025 PIPE Investors, an aggregate of 3,775,126 newly issued shares of Class A common stock at a purchase price of $3.98 per share on the terms and subject to the conditions set forth therein. The April 2025 PIPE Subscription Agreements entitled the April 2025 PIPE Investors to shelf registration rights with respect to the shares of Class A common stock they purchased. The transaction closed on April 25, 2025, and the shares of Class A common stock were issued and sold to the April 2025 PIPE Investors in reliance on Section 4(a)(2) of the Securities Act.

*Committed Equity Facility*

On March 25, 2025, the Company entered into a common stock purchase agreement (the "Equity Line Purchase Agreement") with B. Riley Principal Capital II, LLC (the "Equity Line Investor"). Under the terms and subject to the conditions of the Equity Line Purchase Agreement, the Company has the right, but not the obligation, to sell to the Equity Line Investor, over a 36-month period, up to an aggregate of $30,000,000 of newly issued shares of common stock of the Company subject to certain conditions and limitations contained in the Equity Line Purchase Agreement, including that the Company may issue no more than the number of shares equal to 19.99% of the aggregate number of issued and outstanding shares of common stock of the Company as of immediately prior to the execution of the Equity Line Purchase Agreement without first obtaining stockholder approval. Included in the conditions is a price payable (the "Equity Line Obligation liability") by the Company to the Equity Line Investor if the Company sells shares to the Equity Line Investor. The Equity Line Obligation liability does not have a material impact on existing sources of liquidity. See further discussion in Note 3 - *Summary of Significant Accounting Policies*. As of September 30, 2025, sales under the Equity Line Purchase Agreement generated net proceeds of approximately $0.4 million.

The Company's primary sources of liquidity have been cash contributions from founders or equity capital raised from other investors. As of September 30, 2025, the Company had $25.9 million of working capital including $26.0 million in cash, cash equivalents and restricted cash. The Company had restricted cash of approximately $30,733, which is included in cash, cash equivalents and restricted cash in the condensed consolidated balance sheets and represents cash deposited by the Company into a separate account and designated as collateral for a standby letter of credit in the same amount in accordance with a contractual agreement.

The Company assesses its liquidity in terms of its ability to generate adequate amounts of cash to meet current and future needs. Its expected primary uses of cash on a short and long-term basis are for working capital requirements, capital expenditures, capital contributions to its joint ventures and other general corporate services. The Company's primary working capital requirements are for project execution activities including purchases of materials, services and payroll which fluctuate during the year, driven primarily by the timing and extent of activities required for new and existing projects. The Company's management expects that future operating losses and negative operating cash flows may increase from historical levels because of additional costs and expenses related to the development of the Company's technology and the development of market and strategic relationships with other businesses and customers.

Future capital requirements will depend on many factors, including, the timing and extent of spending by the Company and its joint ventures to support the launch of their product and research and development efforts, the degree to which the Company is successful in launching new business initiatives and the cost associated with these initiatives, the timing and extent of contributions made to the Company's joint ventures by the other partners and the growth of the Company's business generally. In March 2024, the Company contributed $10.0 million in cash to the AirJoule JV. Pursuant to the A&R Joint Venture Agreement, the Company has agreed to make additional capital contributions to the AirJoule JV based on a business plan and annual operating budgets to be agreed between the Company and GE Vernova, and the Company's remaining commitment for capital contributions to the AirJoule JV is $82.3 million as of September 30, 2025. In general, for the first six years, GE Vernova has the right, but not the obligation, to make capital contributions to the AirJoule JV. See Note 5 - *Equity Method Investment* for further information.

*Capital Contribution* 

Pursuant to the A&R Joint Venture Agreement, the Company is expected to contribute additional capital to the AirJoule JV based on a business plan and annual operating budgets to be agreed between the Company and GE Vernova. During the nine months ended September 30, 2025, the Company contributed an additional $12.8 million in capital contributions to the AirJoule JV.

In order to finance future opportunities and associated costs, it is possible that the Company would need to raise additional financing if the proceeds realized to date are insufficient to support its business needs. While management believes that the proceeds realized to date will be sufficient to meet its currently contemplated business needs, there is no guarantee that this will be the case. If additional

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financing is required by the Company from outside sources, the Company may not be able to raise it on terms acceptable to it or at all. If the Company is unable to raise additional capital on acceptable terms when needed, its product development business, results of operations and financial condition would be materially and adversely affected.

**Note 3 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

***Basis of Presentation***

The accompanying condensed consolidated financial statements have been prepared in accordance with GAAP, expressed in U.S. dollars. References to GAAP issued by the Financial Accounting Standards Board ("FASB") in these accompanying notes to the financial statements are to the FASB Accounting Standards Codification ("ASC"). The condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern.

***Unaudited Interim Condensed Financial Statements***

The accompanying unaudited condensed consolidated financial statements reflect all adjustments including normal recurring adjustments, which, in the opinion of management, are necessary to present fairly the financial position, results of operations and cash flows for the periods presented in accordance with GAAP. Operating results for interim periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2025. The interim financial statements presented herein do not contain all required disclosures under GAAP for annual financial statements. The accompanying unaudited interim condensed financial statements should be read in conjunction with the annual audited financial statements and related notes in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

***Principles of Consolidation***

Our condensed consolidated financial statements include the accounts of AirJoule Technologies Corporation and its subsidiaries after elimination of all intercompany accounts and transactions. We consolidate all subsidiaries in which we have a controlling financial interest, which includes AirJoule Technologies LLC, a wholly owned subsidiary.

The Company owns a noncontrolling interest in an unconsolidated joint venture with GE Vernova, the AirJoule JV. The investment in the Company's unconsolidated affiliate is accounted for using the equity method with the Company's proportionate share of income or loss recognized within equity gain (loss) from investment in AirJoule JV in its condensed consolidated statements of operations. See further discussion of the Company's unconsolidated affiliate in Note 5 - *Equity Method Investment*.

***Segment Information***

The Company's chief operating decision maker ("CODM") has been identified as the senior executive committee that includes the Chief Executive Officer and Chief Financial Officer. They review the operating results for the Company as a whole to make decisions about allocating resources and assessing financial performance. The measure of segment performance is based on consolidated net income as reported on the condensed consolidated statement of operations. The measure of segment assets is reported on the condensed consolidated balance sheets as total assets.

The CODM uses net income to monitor budget versus actual results, assess performance and decide how to allocate resources. The key measures of segment profit or loss reviewed by our CODM are general and administrative expenses, research and development expenses and interest earned on the Company's interest-bearing accounts. General and administrative and research and development expenses are reviewed and monitored by the CODM to manage and forecast cash to ensure enough capital is available to meet current and future needs, which include working capital requirements, capital expenditures and other general corporate services. Primary working capital requirements are for project execution and development of the Company's technology, which includes purchases of materials, services, payroll and development of market and strategic relationships with other businesses and customers. The CODM reviews interest earned to measure cash inflow and determine the most effective strategy of investment with the interest-bearing accounts while maintaining compliance with the Company's investment policy. Additionally, the CODM reviews the Company's investment in AirJoule, LLC for material changes, including potential impairment resulting from events or changes in circumstances indicating that a decline in value has occurred that is other than temporary. See further discussion of the Company's unconsolidated affiliate in Note 5 - *Equity Method Investment*.

***Use of Estimates***

The preparation of condensed consolidated financial statements in conformity with GAAP requires the Company's management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of expenses during the reporting period.

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Some of the more significant estimates include fair values of liabilities associated with the Earnout Shares, True Up Shares and Subject Vesting Shares (as such terms are defined in Note 4 - *Recapitalization*), fair value of the investment in the AirJoule JV and income taxes. Due to the uncertainty involved in making estimates, actual results could differ from those estimates, which could have a material effect on the financial condition and results of operations in future periods.

***Cash, Cash Equivalents and Restricted Cash and Concentration of Credit Risk***

The Company considers all highly liquid investments with a weighted average maturity of 90 days or less at the time of purchase to be cash equivalents. The carrying values of cash, cash equivalents and restricted cash approximate their fair values due to the short-term nature of these instruments. As of September 30, 2025 and December 31, 2024, there was $19.0 million and $20.4 million, respectively, held in money market funds. The Company maintains cash balances at financial institutions that may exceed the Federal Deposit Insurance Corporation's insurance limits. The amounts over these insured limits as of September 30, 2025 and December 31, 2024 were $6.2 million and $6.9 million, respectively. The Company mitigates this concentration of credit risk by monitoring the creditworthiness of the financial institutions. No losses have been incurred to date on any deposits.

***Deferred Offering Costs***

The Company capitalizes certain legal, accounting and other third-party fees that are directly associated with in-process equity financings as deferred offering costs until such financings are consummated. After consummation of the equity financing, these costs will be netted against gross proceeds.

***Business Combinations***

The Company evaluates whether acquired net assets should be accounted for as a business combination or an asset acquisition by first applying a screen test to determine whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If so, the transaction is accounted for as an asset acquisition. If not, the Company applies its judgment to determine whether the acquired net assets meet the definition of a business by considering if the set includes an acquired input, process and the ability to create outputs.

The Company accounts for business combinations using the acquisition method when it has obtained control. The Company measures goodwill as the fair value of the consideration transferred, including the fair value of any non-controlling interest recognized, less the net recognized amount of the identifiable assets acquired and liabilities combined, all measured at their fair value as of the acquisition date. Transaction costs, other than those associated with the issuance of debt or equity securities, that the Company incurs in connection with a business combination are expensed as incurred.

Any contingent consideration is measured at fair value at the acquisition date. A contingent consideration that does not meet all the criteria for equity classification is required to be recorded at its initial fair value at the acquisition date, and on each balance sheet date thereafter. Changes in the estimated fair value of liability-classified contingent considerations are recognized on the condensed consolidated statements of operations in the period of change.

***Equity Method Investment***

In accordance with ASC 323, *Investments - Equity Method and Joint Ventures*, investments in entities over which the Company does not have a controlling financial interest but has significant influence are accounted for using the equity method, with the Company's share of earnings or losses reported in earnings or losses from equity method investments in the statements of operations. Under the equity method, the Company's investments are initially measured and recognized using the cost accumulation model following the guidance in ASC 805-50-30, *Initial Measurement of Asset Acquisitions*. After initial recognition, the condensed consolidated financial statements include the Company's share of undistributed earnings or losses until the date on which significant influence ceases.

***Warrants***

The Company determines the accounting classification of warrants it issues as either liability or equity classified by first assessing whether the warrants meet the liability classification in accordance with ASC 480-10, *Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity* ("ASC 480"), then in accordance with ASC 815-40, *Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company's Own Stock* ("ASC 815"). In order for a warrant to be classified in stockholders' equity (deficit), the warrant must be (i) indexed to the Company's equity and (ii) meet the conditions for equity classification.

If a warrant does not meet the conditions for stockholders' equity (deficit) classification, it is carried in the condensed consolidated balance sheets as a warrant liability measured at fair value, with subsequent changes in the fair value of the warrant recorded in other non-operating gains (losses) in the condensed consolidated statements of operations. If a warrant meets both conditions for equity

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classification, the warrant is initially recorded, at its relative fair value on the date of issuance, in stockholders' equity (deficit) in the condensed consolidated balance sheets, and the amount initially recorded is not subsequently remeasured at fair value.

***Income Taxes*** 

Prior to the Business Combination on March 14, 2024, the Company was a limited liability company and treated as a partnership for income tax purposes. As a partnership, the Company was not directly liable for federal income taxes. As of the date of the Business Combination, the operations of the Company ceased to be taxed as a partnership resulting in a change in tax status for federal and state income tax purposes.

The Company follows the asset and liability method of accounting for income taxes under ASC 740, *Income Taxes* ("ASC 740"). Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that is included in the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. Management has evaluated the Company's tax positions, including its previous status as a pass-through entity for federal and state tax purposes, and has determined that the Company has taken no uncertain tax positions that require adjustment to the condensed consolidated financial statements. The Company's reserve related to uncertain tax positions was zero as of September 30, 2025 and December 31, 2024. There were no unrecognized tax benefits, and no amounts accrued for interest and penalties as of September 30, 2025 and December 31, 2024. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviations from its position.

On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted in the U.S. Among other provisions, the OBBBA made permanent extensions of certain provisions within the Tax Cuts and Jobs Act and allowance of immediate expensing of qualified research and development expenses. However, we will continue to capitalize R&D costs for tax purposes given our existing net operating loss carryforward position, as the immediate deduction would not provide a current tax benefit.

***Research and Development Cost***

The Company accounts for research and development cost ("R&D") in accordance with FASB ASC 730, *Research and Development*. R&D represents costs incurred in performing research aimed at the discovery of new knowledge and the advancement of techniques to bring significant improvements to products and processes. Costs incurred in developing a product include consulting, engineering, construction and costs incurred to build prototypes.

***Fair Value of Financial Instruments***

Fair value is the price that would be received to sell an asset, or the amount paid to transfer a liability in an orderly transaction between market participants at the measurement date. There is a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The Company classifies fair value balances based on the observability of those inputs. The three levels of the fair value hierarchy are as follows:

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| Level 1 — | Inputs based on unadjusted quoted market prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. |
| Level 2 —  | Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar instruments in markets that are not active or for which all significant inputs are observable or can be corroborated by observable market data. |
| Level 3 — | Inputs reflect management's best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are both unobservable for the asset and liability in the market and significant to the overall fair value measurement. |

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In some circumstances, the inputs used to measure fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement. The Company establishes the fair value of its assets and liabilities using the price that

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would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and establishes a fair value hierarchy based on the inputs used to measure fair value. The recorded amounts of certain financial instruments, including accounts payable, accrued expenses and other current liabilities approximate fair value due to their relatively short maturities. See Note 5 – *Equity Method Investment* for measurements of the Investment in AirJoule, LLC measured utilizing level 3 inputs as of March 4, 2024. See Note 11 – *Fair Value Measurements* for measurements of the Earnout Shares, True Up Shares, Subject Vesting Shares and Equity Line Obligation liability, measured utilizing level 3 inputs as of September 30, 2025 and December 31, 2024.

***Earnout Shares Liability***

In connection with the reverse recapitalization and pursuant to the Merger Agreement, eligible former Legacy Montana Equityholders (as defined below) are entitled to receive additional shares of Common Stock upon the Company achieving certain milestones. See Note 4 – *Recapitalization.* The settlement of the Earnout Shares to the Legacy Montana Equityholders depends on factors other than just the Company's stock price. As such, management determined that the Earnout Shares should be classified as a liability and recognized at fair value at each reporting period with changes in fair value included in the condensed consolidated statements of operations.

The Company estimated fair value of the Earnout Shares with a Monte Carlo simulation using a distribution of potential outcomes for expected earnings before interest, taxes, depreciation and amortization ("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 management's best estimates regarding the time to complete full construction and achieve operational viability of a production line, including all permitting, regulatory approvals and necessary or useful inspections. The five-year period and overall settlement mechanics for the Earnout Shares represent contractual inputs. Management's valuation of the Earnout Shares liability involves certain assumptions requiring significant judgment, and actual results may differ from assumed and estimated amounts.

The Company determined the Earnout Shares associated with employees are accounted for as compensation expense under FASB ASC Topic 718, *Stock-based Compensation* ("ASC 718"). See "Share-Based Compensation" below.

***Derivative Financial Instruments and Other Financial Instruments Carried at Fair Value***

The Company does not use derivative instruments to hedge exposures to cash flow, market or foreign currency risks. The Company evaluates all of its financial instruments, including the True Up Shares issued in connection with the Subscription Agreement, the Subject Vesting Shares issued in connection with the Business Combination and the Equity Line Obligation liability, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives, pursuant to ASC 480 and FASB ASC 815, *Derivatives and Hedging* ("ASC 815"). The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is reassessed at the end of each reporting period.

The True Up Shares issued under one of the Subscription Agreements do not qualify as equity under ASC 815; therefore, the True Up Shares are required to be classified as a liability and measured at fair value with subsequent changes in fair value recorded in the condensed consolidated statements of operations. The fair value of the derivative liability is discussed in Note 11 — *Fair Value Measurements*.

The Subject Vesting Shares liability was an assumed liability of XPDB. The Subject Vesting Shares vest and are no longer subject to forfeiture as described in Note 4 – *Recapitalization*. They do not meet the "fixed-for-fixed" criterion and thus are not considered indexed to the Company's stock price. As such, management determined that the Subject Vesting Shares should be classified as a liability and recognized at fair value at each reporting period with changes in fair value included in the condensed consolidated statements of operations. The estimated fair value of the Subject Vesting Shares 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 Subject Vesting Shares considered the $12.00 and $14.00 vesting conditions in addition to the vesting related to the milestones associated with the Earnout Shares. Management's valuation of the Subject Vesting Shares liability involves certain assumptions requiring significant judgment and actual results may differ from assumed and estimated amounts. See Note 11 – *Fair Value Measurements*.

The Equity Line Obligation liability does not qualify as equity under ASC 815; therefore, the Equity Line Obligation liability is required to be classified as a liability and measured at fair value. The Company will measure the fair value of the Equity Line Obligation liability on a nonrecurring basis as expected changes in the liability will be immaterial to the condensed consolidated

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financial statements. The Company will recognize at fair value any shares purchased by the Equity Line Investor using the purchase price of the shares on the date of issuance while derecognizing the then-current fair value of the Equity Line Obligation liability and include the associated fair value gain or loss in the condensed consolidated statements of operations as other income (loss). See Note 11 — *Fair Value Measurements* for further discussion.

***Share-Based Compensation***

The Company accounts for share-based compensation arrangements granted to employees and non-employees in accordance with ASC 718, *Share-based Compensation,* by measuring the grant date fair value of each award and recognizing the resulting expense over the period during which the recipient is required to perform services in exchange for the award. Equity-based compensation expense is only recognized for awards subject to performance conditions if it is probable that the applicable performance conditions will be achieved. Once it is probable that the performance condition will be achieved, the Company recognizes share-based compensation cost over the remaining requisite service period on a graded vesting basis, with a cumulative adjustment for the portion of the service period that occurred for the period prior to the performance condition becoming probable of achievement, if any. Stock-based compensation expense for equity awards that contain market vesting conditions is recognized over the requisite service period commencing on the grant date even if the market condition is not satisfied. The Company accounts for forfeitures when the forfeitures occur.

The Company estimates the fair value of stock option awards subject to only a service condition on the date of grant using the Black-Scholes valuation model. The Black-Scholes model requires the use of highly subjective and complex assumptions, including the stock option's expected term, the price volatility of the underlying stock, the applicable risk-free interest rate and the expected dividend yield of the underlying common stock, as well as an estimate of the fair value of the common stock underlying the stock option. The grant date fair value of restricted stock units that contain service vesting conditions are estimated based on the fair value of the underlying stock on the grant date. For restricted stock units with market vesting conditions, the fair value is estimated using a Monte Carlo simulation model, which incorporates the likelihood of achieving the market condition.

The Company estimates the fair value of Earnout Shares awards to employees, which are considered compensatory awards and accounted for under ASC 718 using the Monte Carlo simulation model*.* The Monte Carlo simulation model was selected as the valuation methodology for the Earnout Shares due to the path-dependent nature of applicable triggering events. Under ASC 718, such Earnout Shares are measured at fair value as of the grant date and expense is recognized over the applicable time-based vesting period (the triggering event is a market condition and does not impact expense recognition). The Monte Carlo model requires the use of highly subjective and complex assumptions, estimates and judgments, including the current stock price, the volatility of the underlying stock, expected term the risk-free interest rate, the selection of comparable companies and the probability of possible future events. Changes in any or all of these estimates and assumptions or the relationships between those assumptions impact our valuations as of each valuation date and may have a material impact on the valuation of share-based compensation arrangements. An increase of 100-basis points in interest rates would not have a material impact on the Company's share-based compensation. During the period from the date of the Business Combination through September 30, 2025, the Company did not record share-based compensation expense associated with these Earnout Shares as the performance conditions associated with these Earnout Shares were not deemed probable of achievement. Unrecognized share-based compensation expense for these Earnout Shares with a performance-based vesting condition that was not deemed probable occurring as of September 30, 2025 was $1.9 million which is expected to vest subject to the performance-based vesting condition being satisfied or deemed probable.

***Net Income (Loss) Per Share***

Basic net income (loss) per share is computed by dividing the net income (loss) which is allocated based upon the proportionate amount of weighted average shares outstanding, by each class of stockholder's stock outstanding during the period. Diluted net income per share is computed by giving effect to all potential shares of common stock, including warrants, stock options, Earnout Shares, True Up Shares, Subject Vesting Shares and restricted stock units ("RSUs"), to the extent dilutive, except in periods in which the net result is a loss, because inclusion of such potential shares would be anti-dilutive. Stock options and warrants with exercise prices greater than the average market price of the Company's common stock for the period are excluded from the calculation of diluted net income per share as their inclusion would be anti-dilutive. Additionally, RSUs that vest based on service conditions that have not been achieved as of the end of the period are not included in the computation of basic or diluted earnings per share. Finally, Earnout Shares, True Up Shares and Subject Vesting shares are not included in the calculation of dilutive net income per share if their conditions are not deemed satisfied for issuance as of the reported period. Dilutive net income per share was not calculated for the three months ended September 30, 2025 given the reported net loss position. For the three months ended September 30, 2025, 21,557,596 warrants, 1,380,736 Subject Vesting Shares, 1,097,751 Earnout Shares, 1,415,534 options and 812,135 RSUs were anti-dilutive. For the nine months ended September 30, 2025, 21,557,596 warrants, 1,380,736 Subject Vesting Shares, 1,097,751 Earnout shares, 1,389,806 options and 509,707 RSUs were not included in the calculation of dilutive net income per share as they would be anti-dilutive. For the three and nine months ended September 30, 2024, warrants, Subject Vesting Shares, Earnout Shares and RSUs were not included in the calculation of dilutive net income per share as they would be anti-dilutive.

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For the three months ended September 30, 2024, dilutive shares included in the calculation of net income per share of common stock, utilizing the treasury stock method, were 1,279,959 shares of common stock issuable upon the exercise of stock options and 280,102 shares of common stock issuable upon the triggering event of the True Up Shares in the third quarter of 2024.

For the nine months ended September 30, 2025, dilutive shares included in the calculation of net income per share of common stock, utilizing the treasury stock method, were 933,152 shares of common stock issuable upon the exercise of stock options and 76,239 shares of common stock issuable upon the vesting of RSUs. For the nine months ended September 30, 2024, dilutive shares included in the calculation of net income per share of common stock, utilizing the treasury stock method, were 1,298,378 shares of common stock issuable upon the exercise of stock options and 93,367 shares of common stock issuable upon the triggering event of the True Up Shares in the third quarter of 2024.

The net income per share of common stock presented in the condensed consolidated statements of operations is based on the following for the three and nine months ended September 30, 2025 and 2024:

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|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** |
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Class A<br>Common Stock** | **Class B<br>Common Stock** | **Class A<br>Common Stock** | **Class B<br>Common Stock** |
| *Basic net income (loss) per share of common stock* |  |  |  |  |
| Numerator: |  |  |  |  |
| Allocation of net income (loss) | $(4012159) | $— | $32029249 | $2987609 |
| Denominator: |  |  |  |  |
| Basic weighted average shares outstanding | 60452978 |  | 51026682 | 4759642 |
| Basic net income (loss) per share of common stock | $(0.07) | $— | $0.63 | $0.63 |
| *Diluted net income (loss) per share of common stock* |  |  |  |  |
| Numerator: |  |  |  |  |
| Allocation of net income (loss) | $(4012159) | $— | $32110525 | $2906333 |
| Denominator: |  |  |  |  |
| Diluted weighted average shares outstanding | 60452978 |  | 52586743 | 4759642 |
| Diluted net income (loss) per share of common stock | $(0.07) | $— | $0.61 | $0.61 |

---

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Class A<br>Common Stock** | **Class B<br>Common Stock** | **Class A<br>Common Stock** | **Class B<br>Common Stock** |
| *Basic net income per share of common stock* |  |  |  |  |
| Numerator: |  |  |  |  |
| Allocation of net income | $13379712 | $— | $208427150 | $21574895 |
| Denominator: |  |  |  |  |
| Basic weighted average shares outstanding | 58598923 |  | 45981155 | 4759642 |
| Basic net income per share of common stock | $0.23 | $— | $4.53 | $4.53 |
| *Diluted net income per share of common stock* |  |  |  |  |
| Numerator: |  |  |  |  |
| Allocation of net income | $13379712 | $— | $209003119 | $20998926 |
| Denominator: |  |  |  |  |
| Diluted weighted average shares outstanding | 59608314 |  | 47372900 | 4759642 |
| Diluted net income per share of common stock | $0.22 | $— | $4.41 | $4.41 |

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***New Accounting Pronouncements***

*Recently Issued Accounting Standards*

The Company is an emerging growth company, as defined in the JOBS Act. Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act, until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or

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revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, these financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): *Improvements to Income Tax Disclosures,* which requires disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. The standard will be effective for the Company for fiscal years beginning after December 15, 2025. Early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on its condensed consolidated financial statements and disclosures.

In November 2024, the FASB issued ASU 2024-03, Income Statement (Subtopic 220-40): *Disaggregation of Income Statement Expenses*, which requires disaggregated disclosure of income statement expenses for public business entities. The standard is effective for the Company for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on its condensed consolidated financial statements and disclosures.

**Note 4 — RECAPITALIZATION**

On June 5, 2023, XPDB and Merger Sub entered into the Merger Agreement with Legacy Montana. On March 14, 2024, pursuant to the Merger Agreement, Merger Sub merged with and into Legacy Montana, with Legacy Montana surviving the Merger as a wholly owned subsidiary of XPDB.

As part of the Business Combination, the holders of Legacy Montana equity securities (the "Legacy Montana Equityholders") received consideration (the "Merger Consideration"). After giving effect to the conversion of all outstanding Legacy Montana preferred units into Legacy Montana Class B common units, which occurred prior to the effective time of the Merger, the Merger Consideration was paid (i) in the case of holders of Legacy Montana Class B common units and Legacy Montana Class C common units, in the form of newly issued shares of Class A common stock, with a $10.00 value ascribed to each such share and which entitles the holder thereof to one vote per share on all matters submitted to a vote of the holders of Class A common stock, whether voting separately as a class or otherwise, (ii) in the case of holders of Legacy Montana Class A common units, in the form of newly issued shares of Class B common stock, with a $10.00 value ascribed to each such share and which entitles the holder thereof to a number of votes per share such that the Legacy Montana Equityholders as of immediately prior to the Closing, immediately following the Closing, collectively owned shares representing at least 80% of the voting power of all classes of capital stock of the recapitalized company (the "Post-Combination Company") entitled to vote on matters submitted to a vote of the stockholders of the Post-Combination Company, and (iii) in the case of holders of Legacy Montana options, each outstanding Legacy Montana option, whether vested or unvested, were converted into an option to purchase, upon the same terms and conditions as are in effect with respect to the corresponding Legacy Montana option immediately prior to the Closing, including with respect to vesting and termination-related provisions, a number of shares of Class A common stock (rounded down to the nearest whole share) equal to the product of (x) the number of Legacy Montana common units underlying such option immediately prior to the Closing and (y) the number of shares of Class A common stock issued in respect of each Legacy Montana common unit in the Business Combination pursuant to the Merger Agreement, at an exercise price per share (rounded up to the nearest whole cent) equal to (A) the exercise price per Legacy Montana common unit underlying such option immediately prior to the Closing divided by (B) the number of shares of Class A common stock issued in respect of each Legacy Montana common unit in the Business Combination pursuant to the Merger Agreement.

Immediately prior to the Closing, 100% of the total outstanding Legacy Montana Class A common units and 7% of the total outstanding Legacy Montana Class B common units (or an aggregate of approximately 18% of the total outstanding Legacy Montana Class A units and Legacy Montana Class B units) were held by unitholders that continue as directors, officers, employees or contractors of the Post-Combination Company. The retention of certain employees who continue as directors, officers or employees of the Post-Combination Company (whose responsibilities include continued technology development and commercial execution) is integral to the achievement of the milestones that will determine whether Earnout Shares are payable. Legacy Montana does not believe that such targets are achievable absent the continued involvement of such persons.

The Legacy Montana Equityholders have the opportunity to receive additional equity consideration (in each case, in accordance with their respective pro rata share), and the Company has reserved shares of Class A common stock that may be issuable in the future upon full completion of construction and achievement of operational viability (including all permitting, regulatory approvals and necessary or useful inspections) of new production capacity of Legacy Montana's key components. See Note 11 - *Fair Value Measurements* for additional information on the Earnout Shares.

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Upon the Closing of the Business Combination, and following the conversion of the XPDB Class B common stock to Class A common stock, the sponsor of XPDB beneficially owned 6,827,969 shares of Class A common stock, of which (i) 5,447,233 shares automatically vested (and shall not be subject to forfeiture) at the Closing and (ii) 1,380,736 shares (the "Subject Vesting Shares") shall be vested and no longer be subject to forfeiture as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•During the vesting period, a portion of the Subject Vesting Shares shall vest, from time to time, simultaneously with any Earnout Shares, with the number of vesting shares calculated as (A) the aggregate number of Subject Vesting Shares outstanding immediately after the Closing multiplied by (B) the fraction of (x) the applicable Earnout Milestone Amount divided by (y) the Maximum Earnout Milestone Amount (as defined below); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•(A) 690,368 shall vest at such time that the volume weighted average price of Class A common stock on the Nasdaq Capital Market ("Nasdaq") as reported by Bloomberg L.P. equals or exceeds $12.00 per share (as adjusted for extraordinary transactions, stock splits, extraordinary stock dividends, reorganizations, recapitalizations and the like) for 20 trading days within any 30 consecutive trading day period during the vesting period; or (B) if, prior to the $12.00 vesting time, any Subject Vesting Shares 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•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 were 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. 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 L.P. was less than $8.50 for 15 consecutive trading days. As a result of this triggering event, the Company issued to the investor 275,880 shares of Class A common stock on March 18, 2025. The difference between the fair value of True Up Shares as reported on the triggering event date and the fair value calculated using the Company's stock price at close of business on the triggering event date was recognized as a gain in the condensed consolidated statements of operations. See Note 11 – *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.

*Transaction Proceeds*

Upon closing of the Business Combination, the Company received gross proceeds of $7.5 million inclusive of $5.0 million from the PIPE investment, offset by total transaction costs and other fees totaling of $7.5 million. The following table reconciles the elements of the Business Combination to the condensed consolidated statements of cash flows and the condensed consolidated statement of changes in stockholders' equity (deficit) for the nine months ended September 30, 2024:

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| | |
|:---|:---|
| Cash-trust and cash, net of redemptions | $2455361 |
| Add: proceeds from PIPE investment | 4999998 |
| Less: transaction costs and advisory fees, paid | (7455359) |
| Net proceeds from the Business Combination |  |
| Less: Subject Vesting Shares liability | (11792000) |
| Less: True Up Shares liability | (555000) |
| Less: accounts payable and accrued liabilities combined | (9054854) |
| Add: other, net | 374377 |
| Reverse recapitalization, net | $(21027477) |

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The number of shares of Common Stock issued immediately following the consummation of the Business Combination were:

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| | |
|:---|:---|
| XPDB Class A common stock, outstanding prior to the Business Combination | 10608178 |
| Less: Redemption of XPDB Class A common stock | (10381983) |
| Class A common stock of XPDB | 226195 |
| XPDB Class B common stock, outstanding prior to the Business Combination | 7187500 |
| PIPE subscription | 588235 |
| Business Combination Class A common stock | 8001930 |
| Legacy Montana Shares | 45821482 |
| Class A and B Common Stock immediately after the Business Combination | 53823412 |

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The number of Legacy Montana shares was determined as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Legacy Montana<br>Units** | **Legacy Montana<br>Units** | **The Company's<br>Shares after<br>conversion<br>ratio** | **The Company's<br>Shares after<br>conversion<br>ratio** |
| Class A common stock |  | 1,725,418 |  | 41,061,840 |
| Class B common stock |  | 200,000 |  | 4,759,642 |

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*Transaction Costs*

During the nine months ended September 30, 2024, based on the proceeds received, the Company expensed $54.7 million for transaction costs incurred in connection with the Business Combination, inclusive of the recognition of the Earnout Shares liability of $53.7 million, because the transaction costs exceeded the proceeds received in the Business Combination. See Note 11- *Fair Value Measurements* for further information on the recognition and measurement of the Earnout shares. The remaining transaction costs primarily represented fees incurred for financial advisory, legal and other professional services that were directly related to the Business Combination.

*Public and private placement warrants*

The 14,375,000 Public Warrants issued at the time of XPDB's initial public offering and 11,125,000 warrants issued in connection with private placement at the time of XPDB's initial public offering (the "Private Placement Warrants") remained outstanding and became warrants for the Company.

*Redemption* 

Prior to the closing of the Business Combination, certain XPDB public shareholders exercised their right to redeem certain of their outstanding shares for cash, resulting in the redemption of 10,381,983 shares of XPDB Class A common stock for an aggregate payment of $112.7 million.

**Note 5 — EQUITY METHOD INVESTMENT**

***AirJoule, LLC***

On January 25, 2024, Legacy Montana entered into a Framework Agreement with GE Vernova, a Delaware limited liability company, and, solely for the purposes specified therein, GE Vernova LLC, a Delaware limited liability company ("GE Vernova Parent"), pursuant to which Legacy Montana and GE Vernova agreed, subject to the terms and conditions of the Framework Agreement, including certain closing conditions specified therein, to form a joint venture in which each of Legacy Montana and GE Vernova will hold a 50% interest. The purpose of the AirJoule JV is to incorporate GE Vernova's proprietary sorbent materials into systems that utilize the Company's AirJoule water capture technology and to manufacture and bring products incorporating the combined technologies to market in the Americas, Africa and Australia.

Upon the closing of the transaction on March 4, 2024, (the "JV Closing"), each party to the agreement entered into (i) an amended and restated limited liability company agreement of the AirJoule JV (the "A&R Joint Venture Agreement"), pursuant to which, among other things, the AirJoule JV has the exclusive right to manufacture and supply products incorporating the combined technologies to leading original equipment manufacturers and customers in the Americas, Africa and Australia, (ii) master services agreements, pursuant to which, among other things, each party to the agreement agree to provide certain agreed services to the AirJoule JV for a

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period of at least two years following the JV Closing (unless earlier terminated by the parties thereto) and (iii) an intellectual property agreement, pursuant to which, among other things, each of the Company and GE Vernova Parent license certain intellectual property to the AirJoule JV.

Pursuant to the A&R Joint Venture Agreement, the Company contributed $10.0 million in cash to the AirJoule JV at the JV Closing and in June 2024, GE Vernova contributed $100 to the AirJoule JV. Pursuant to the A&R Joint Venture Agreement, the Company has agreed to make additional capital contributions to the AirJoule JV based on a business plan and annual operating budgets to be agreed between the Company and GE Vernova, and the Company's remaining commitment for capital contributions to the AirJoule JV is $82.3 million as of September 30, 2025. In general, for the first six years, GE Vernova has the right, but not the obligation, to make capital contributions to the AirJoule JV. Until GE Vernova elects to participate and contributes its pro-rata share of all past capital contributions and commits to contribute its pro-rata share for all future capital contributions (such date, the "GE Match Date"), the Company shall be solely responsible for funding the AirJoule JV, and the Company shall have a distribution preference under the A&R Joint Venture Agreement for the amount of its post-closing capital contributions plus a 9.50% preferred return on such amounts.

The business and affairs of the A&R Joint Venture Agreement shall be managed by a Board of Managers, consisting of two managers (including the chairman) appointed by the Company and two managers appointed by GE Vernova. Following the second anniversary of the JV Closing, if the Board of Managers reach an impasse that cannot be resolved through the process set forth in the A&R Joint Venture Agreement, the A&R Joint Venture Agreement generally provides that the Company may require GE Vernova to sell GE Vernova's 50% interest to the Company or GE Vernova may require the Company to purchase GE Vernova's 50% interest, but only, in each case, if the GE Match Date has not yet occurred. The price for GE Vernova's interest will depend on the fair market value of the interest, as set forth in the A&R Joint Venture Agreement, with a minimum value of approximately $5 million. The A&R Joint Venture Agreement also provides similar call and put rights with respect to GE Vernova's interest if the GE Match Date does not occur by the sixth anniversary of the JV Closing or if the Company is acquired by a competitor of GE Vernova.

In the event that a change in applicable laws or regulations has a material adverse effect on GE Vernova's interest in the AirJoule JV, or GE Vernova determines that the Company fails to meet certain financial performance benchmarks, GE Vernova may require the Company to purchase GE Vernova's interest for a total purchase price of $1.00.

AirJoule, LLC is a variable interest entity for which the Company has determined there is shared power with GE Vernova and therefore accounts for the VIE under the equity method of accounting. The Company considered the power to direct significant activities and obligation to absorb losses or right to receive benefits in assessing whether or not the VIE should be accounting for under the equity method of accounting. Certain assumptions the Company used to reach its conclusion included the lack of reconsideration events, the assessment of decision-making rights based on contractual agreements and expected financial exposure.

The Company applies the equity method to an investment in common stock of an unconsolidated entity. In addition to $10.0 million in cash the Company contributed to the AirJoule JV at the JV Closing, the Company contributed a perpetual license in its intellectual property with a carrying value of zero in exchange for its investment in AirJoule, LLC. In applying the equity method, the Company's investment was initially recorded at fair value in the condensed consolidated balance sheet. As it relates to the contributed perpetual license, the Company followed the guidance in ASC 610-20, *Sale or Transfer of Non-financial Assets*, which states the transfer of a license of IP that is not part of the entity's ordinary activities, the entity should apply the licensing guidance in ASC 606, *Revenue from Contracts with Customers*, by analogy when evaluating the recognition and measurement of consideration received in exchange for transferring the rights to the IP and record this as other income in the statements of operations. As such the Company recognized a gain of $333.5 million for the nine months ended September 30, 2024 (and treated as a temporary item for tax purposes resulting in a deferred tax liability of approximately $87.8 million) as presented in the accompanying condensed consolidated statements of operations.

The Company evaluated whether there was a basis difference between the carrying value and fair value of the Company's proportionate share of the investee's underlying net assets. AirJoule, LLC has elected to early adopt ASU 2023-05, *Business Combinations – Joint Venture Formations* (Subtopic 805-60), and, as a result measured the contributed assets at fair value. AirJoule, LLC was deemed a business as defined in ASC 805, *Business Combinations*, and, as such there was a basis difference of $266.0 million between the Company's investment and the amount recorded in member's capital by the investee, AirJoule, LLC, related to in-process R&D and goodwill which have indefinite lives.

During the three months ended September 2025, AirJoule, LLC determined that the carrying value of its goodwill exceeded the respective fair value, and recorded an impairment charge of $154.8 million. As a result, the Company reduced its basis difference attributable to goodwill by $77.4 million, which represents the Company's share of AirJoule, LLC's goodwill impairment charge. The Company's updated basis difference as of September 30, 2025 was $188.6 million.

AirJoule, LLC determines the fair value of the IP license by applying the multi-period excess earnings method. The excess earnings valuation method estimates the value of the IP license equal to the present value of the incremental after-tax cash flows attributable to

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that IP license over its remaining economic life. Some of the more significant assumptions utilized in our asset valuations included projected revenues, probability of commercial success and the discount rate. This fair value measurement was based on significant inputs not observable in the market and thus represent Level 3 fair value measurement.

Based on triggering events, AirJoule, LLC performed an interim impairment test as of September 30, 2025 on its in-process R&D. In performing the interim impairment test as of September 30, 2025, AirJoule, LLC determined that the fair value of its in-process R&D exceeded the respective carrying value, concluding no impairment.

The Company's share of the income (loss) reported by AirJoule, LLC are recorded as an equity gain (loss) from investment in AirJoule, LLC in the accompanying condensed consolidated statements of operations.

The following table contains balance sheet information of AirJoule, LLC as of September 30, 2025 and December 31, 2024:

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| | | |
|:---|:---|:---|
|  | **As of <br>September 30,<br>2025** | **As of<br>December 31,<br>2024** |
| Total current assets | $599769 | $2330386 |
| Goodwill | 379560000 | 534353000 |
| Total non-current assets | 681589117 | 680496941 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $1061748886 | $1217180327 |
| Total current liabilities | $3411139 | $4531668 |
| Total non-current liabilities | 4627909 | 4238293 |
| Total liabilities | 8039048 | 8769961 |
| Equity | 1053709838 | 1208410366 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and equity | $1061748886 | $1217180327 |

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AirJoule, LLC tests its intangible assets for impairment during the fourth quarter of each year, or whenever a change in events and circumstances (triggering event) occurs that indicates the fair value of intangible assets may be below their carrying values.

Given AirJoule, LLC's status as an early stage company with limited operating history and the uncertainties regarding AirJoule, LLC's successful development and commercialization of its products, there can be no assurance that the estimates and assumptions made for purposes of its goodwill impairment testing in 2025 will prove to be accurate predictions of the future. If AirJoule, LLC's assumptions, including timing of revenue generation and forecasted EBITDA, are not achieved, then AirJoule, LLC may be required to record goodwill impairment charges in future periods.

Based on triggering events, AirJoule, LLC performed an interim impairment test as of September 30, 2025 on its goodwill and determined that the carrying value exceeded the respective fair value and recorded a goodwill impairment charge of $154.8 million during the three months ended September 30, 2025.

The following table contains statement of operations information of AirJoule, LLC for the three months ended September 30, 2025 and 2024, the nine months ended September 30, 2025 and for the period from March 4, 2024 (AirJoule JV inception) to September 30, 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>September 30,** | **Three Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** | **For the period from<br>March 4, 2024 to September 30, 2024** |
|  | **2025** | **2024** | **2025** |  |
| Revenue | $— | $— | $— | $— |
| Operating expenses | (4045745) | (4761835) | (12995206) | (6060460) |
| Goodwill Impairment | (154793000) |  | (154793000) |  |
| Other income | 28107 | 88728 | 337678 | 173013 |
| &nbsp;&nbsp;Net loss | $(158810638) | $(4673107) | $(167450528) | $(5887447) |

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**Note 6 — OTHER ACCRUED EXPENSES**

The following table summarizes other accrued expenses:

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| | | |
|:---|:---|:---|
|  | **As of September 30,<br>2025** | **As of December 31,<br>2024** |
| Accrued royalty | $— | $250000 |
| Accrued payroll | 1271535 | 1125846 |
| Professional services | 208744 | 205790 |
| Equity Line Obligation | 138324 |  |
| Accrued other | 174176 | 138682 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other accrued expenses | $1792779 | $1720318 |

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**Note 7 — LEASES**

As discussed in Note 8 – *Related Party Transactions*, the Company had a property lease with a related party which terminated on March 14, 2024. Lease expenses under this lease were $0 and $6,000 for the three and nine months ended September 30, 2024, respectively, and were included in general and administrative costs in the condensed consolidated statements of operations.

Lease expense for the company's operating lease was $9,593 and $28,780, respectively for the three and nine months ended September 30, 2025 and $9,593 and $22,384 for the three and nine months ended September 30, 2024. As of September 30, 2025, the Company's operating lease was $3,175 per month with a remaining term of 42 months and a discount rate of 4.69%. Lease expense is included in general and administrative costs in the accompanying condensed consolidated statements of operations. This lease includes a renewal option at the election of the Company to renew or extend the lease. This optional period has not been considered in the determination of the ROU assets or lease liability associated with this lease as the Company did not consider it reasonably certain it would exercise the option.

At September 30, 2025, approximate future minimum rental payments required under the lease agreement is as follows:

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| | |
|:---|:---|
|  | **Operating<br>Lease** |
| Remainder of 2025 | $9525 |
| 2026 | 39370 |
| 2027 | 40945 |
| 2028 | 42583 |
| 2029 | 10714 |
| Total undiscounted lease payments | 143137 |
| Less: effects of discounting | (11090) |
| **Operating Lease Liability** | $132047 |
| **Classified as:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liability, current | $33657 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liability, non-current | $98390 |

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**Note 8 — RELATED PARTY TRANSACTIONS**

*Lease Agreement*

The Company had a property lease agreement with the Chief Executive Officer as discussed in Note 7 – *Leases*. The lease agreement was terminated upon close of the Business Combination on March 14, 2024. As of September 30, 2025 and December 31, 2024, $0 were owed under this agreement.

*Consultancy Agreement*

On January 1, 2019, the Company entered into a consultancy agreement with a company affiliated with the Chief Executive Officer for a monthly payment of $20,000 in exchange for the Chief Executive Officer providing services in connection with the development

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and sales of Company technologies and products. For the three and nine months ended September 30, 2024, $0 and $80,000, respectively was included in general and administrative expenses in the condensed consolidated statement of operations. On May 1, 2024, this consultancy agreement was terminated. As of September 30, 2025 and December 31, 2024, $0 was owed under this agreement.

*Office Services Agreement*

On October 31, 2020, the Company entered into a consultancy agreement with an affiliate for a monthly payment of $5,000 to provide office services. For the three and nine months ended September 30, 2024, $0 and $20,000, respectively was included in research and development expenses on the condensed consolidated statement of operations. On May 1, 2024, this office services agreement was terminated. As of September 30, 2025 and December 31, 2024, $0 was owed under this agreement.

*Due to Related Party*

Commencing on December 9, 2021, through the consummation of the initial Business Combination, XPDB agreed to pay affiliates of the sponsor a total of $20,000 per month for office space, administrative and support services. Upon the close of the Business combination, the Company assumed $540,000 related to this agreement. The balance was repaid in May 2024.

In 2023, the sponsor contributed $900,000 to the XPDB trust account in connection with extending the XPDB's termination date pursuant to the approval of the extension amendment proposal. Upon the closing of the Business Combination, the Company assumed this balance and it was subsequently repaid in May 2024.

*Due from Related Party*

In November 2024, Legacy Montana executed a statement of work with AirJoule, LLC. Reimbursement of costs incurred during the three months ended September 30, 2025 was $0.4 million and $0.1 million of general and administrative and research and development expenses, respectively. Reimbursement of costs incurred during the nine months ended September 30, 2025 was $1.2 million and $0.4 million of general and administrative and research and development expenses, respectively. Reimbursement of costs incurred as of September 30, 2024 was $0.6 million and $1.4 million of general administrative and research and development expenses, respectively.

*Related Party Equity Transactions*

As described in Note 9 – *Stockholders' Equity*, Legacy Montana sold equity interests that subsequently converted into shares of Class A common stock, to TEP Montana, LLC ("TEP Montana"). The Executive Chairman of the Company is the managing partner of the managing member of TEP Montana.

The Company granted awards to the employees of AirJoule, LLC during the nine months ended September 30, 2025. The number of awards granted to the employees of AirJoule, LLC are found in Note 10 – *Share-Based Compensation.*

**Note 9 — STOCKHOLDERS' EQUITY**

*Warrants*

In January, February and March 2024, 14 warrant holders of Legacy Montana exercised their warrants to purchase a total of 380,771 shares of Class A common stock, as converted, for a total purchase price of $45,760.

As part of XPDB's initial public offering ("IPO"), XPDB issued 14,375,000 warrants to 37 investors where each whole warrant entitles the holder to purchase one share of the Company's Class A common stock at an exercise price of $11.50 per share (the "Public Warrants"). Simultaneously with the closing of the IPO, XPDB completed the private sale of 11,125,000 warrants where each warrant allows the holder to purchase one share of the Company's Class A common stock at $11.50 per share. In June 2024, 10 third-party investors exercised their Public Warrants on a cashless basis for a total of 705,758 Class A shares of the Company. In August 2024, 2,225,000 Private Placement warrants were transferred.

As of September 30, 2025, there are 12,657,596 Public Warrants and 8,900,000 Private Placement warrants outstanding.

The Private Placement Warrants (including the common stock issuable upon exercise of the Private Placement Warrants) were not transferable, assignable or saleable until 30 days after the consummation of the Business Combination (except, among other limited exceptions, to the Company's officers and directors and other persons or entities affiliated with the XPDB's sponsor and anchor investors) and they will not be redeemable by the Company. The Private Placement Warrants have terms and provisions that are

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identical to those of the Public Warrants, including as to exercise price, exercisability and exercise period, except that the Private Placement Warrants are exercisable on a cashless basis and are non-redeemable.

If holders of the Private Placement Warrants elect to exercise them on a cashless basis, they would pay the exercise price by surrendering their warrants for that number of shares of the Company's common stock equal to the quotient obtained by dividing (x) the product of the number of shares of the Company's common stock underlying the warrants multiplied by the excess of the 10 day average closing price (defined below) as of the date prior to the date on which notice of exercise is sent or given to the warrant agent, less the warrant exercise price by (y) the 10 day average closing price. The 10 day average closing price means, as of any date, the average last reported sale price (defined below) of the shares of the Company's common stock as reported during the 10 trading day period ending on the trading day prior to such date. Last reported sale price means the last reported sale price of the Company's common stock on the date on which the notice of exercise of the warrant is sent to the warrant agent.

These Public Warrants expire on the fifth anniversary of the Business Combination or earlier upon redemption or liquidation and are exercisable commencing 30 days after the Business Combination, provided that the Company has an effective registration statement under the Securities Act covering the shares of common stock issuable upon exercise of the warrants and a current prospectus relating to them is available (or the Company permits holders to exercise their warrants on a cashless basis under the circumstances specified in the warrant agreement) and registered, qualified or exempt from registration under the securities, or blue sky, laws of the state of residence of the holder.

Once the Public Warrants become exercisable, the Company may redeem the outstanding Public Warrants:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•in whole and not in part;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•at a price of $0.01 per warrant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•upon a minimum 30 days' prior written notice of redemption to each warrant holder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•if, and only if, the reported last reported sale price of the Class A common stock for any 20 trading days within a 30-trading day prior to the date on which the Company sends the notice of redemption to the warrant holders equals or exceeds $18.00 per share (as adjusted).

The Company accounts for the warrants issued in connection with the IPO in accordance with the guidance contained in ASC 815. Such guidance provides that the warrants described above are not precluded from equity classification. Equity-classified contracts are initially measured at fair value (or allocated value). Subsequent changes 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 $61.8 million in gross proceeds. The Company issued and sold 5,807,647 shares 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 $49.4 million, comprised of approximately $43.4 million received in the first quarter of 2024 and approximately $6.0 million in the second quarter of 2024. Of this total, TEP Montana purchased an aggregate of 5,116,176 shares in exchange for approximately $43.5 million pursuant to Subscription Agreements between Legacy Montana and TEP Montana. During the second quarter of 2024, the Company issued and sold an additional 1,238,500 shares of Class A common stock to investors pursuant to Subscription Agreements executed in the second quarter, which resulted in additional gross proceeds of approximately $12.4 million.

During the nine months ended September 30, 2025, the Company entered into the April 2025 PIPE Subscription Agreements with the April 2025 PIPE Investors, pursuant to which, among other things, the April 2025 PIPE Investors agreed to subscribe for and purchase from the Company, and the Company agreed to issue and sell to the April 2025 PIPE Investors, an aggregate of 3,775,126 newly issued shares of Class A common stock at a purchase price of $3.98 per share on the terms and subject to the conditions set forth therein. The April 2025 PIPE Subscription Agreements entitled the April 2025 PIPE Investors to shelf registration rights with respect to the shares of Class A common stock they purchased. The transaction closed on April 25, 2025, and the shares of Class A common stock were issued and sold to the April 2025 PIPE Investors in reliance on Section 4(a)(2) of the Securities Act.

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***Equity Financing***

Legacy Montana completed a preferred equity financing during February 2023 with TEP Montana, and issued 4,426 Series B Preferred Units in conjunction with this transaction. Upon close of the Business combination, these shares were converted to 105,331 Class A common stock of the Company.

**Note 10 — SHARE-BASED COMPENSATION**

***Legacy Montana Options***

On April 5, 2023, Legacy Montana granted 383,151 options, 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 2,141,839 shares 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 of 8,000 shares of Class A common stock, as converted, for a total purchase price of $3,920.

In September 2024, three Legacy Montana option holders exercised their options to purchase a total of 67,495 shares of Class A common stock, as converted, for a total purchase price of $33,073.

In the three months ended December 31, 2024, three Legacy Montana option holders exercised their options to purchase a total of 85,496 shares of Class A common stock, as converted, for a total purchase price of $37,453.

In the three months ended March 31, 2025, four Legacy Montana option holders exercised their options to purchase a total of 147,579 shares of Class A common stock, as converted, for a total purchase price of $41,759.

In the three months ended June 30, 2025, two Legacy Montana option holders exercised their options to purchase a total of 148,486 shares of Class A common stock, as converted, for a total purchase price of $57,958.

No options were exercised by Legacy Montana option holders during the three months ended September 30, 2025.

As of September 30, 2025, of the 878,022 Legacy Montana options that are outstanding, 535,955 options expire on December 7, 2030, 71,395 options expire on March 15, 2031, 60,672 options expire on April 4, 2030 and 210,000 options expire on April 8, 2031.

***2024 Incentive Award Plan***

On March 8, 2024, the holders of XPDB common stock considered and approved the Montana Technologies Corporation's 2024 Incentive Award Plan (the "Incentive Plan"), which became effective immediately upon the Closing on March 14, 2024. Under the Incentive Plan, the Company may grant equity and equity-based awards to certain employees, consultants and non-employee directors award, such as, (a) Incentive Stock Options (granted to employees only), (b) Non-Qualified Stock Options ("NSOs"), (c) Stock Appreciation Rights, (d) Restricted Stock Units, (e) Restricted Stock, (f) dividend equivalents and (g) other stock and cash-based awards of the Company ("Incentive Awards"). The sum of any cash compensation, or other compensation, and the value (determined as of the grant date in accordance with ASC 718, or any successor thereto) of awards granted to a non-employee director as compensation for services as a non-employee director during any fiscal year of the Company may not exceed $500,000 (or, with respect to the first fiscal year of the Post-Combination Company during which a non-employee director first serves as a non-employee director, $1,000,000). As of September 30, 2025, there were 4,893,977 shares of common stock available for future issuance under the Incentive Plan.

***2024 Employee Stock Purchase Plan***

The 2024 Employee Stock Purchase Plan (the "2024 ESPP") became effective immediately upon the Closing on March 14, 2024 and as of September 30, 2025, a total of 1,062,457 shares of common stock are reserved for issuance under the 2024 ESPP. Eligible employees may purchase shares of common stock under the 2024 ESPP at 85% of the lower of the fair market value of the Company's common stock as of the first or the last day of each offering period. Employees are limited to contributing 15% of the employee's eligible compensation and may not purchase more than $25,000 of stock during any calendar year or more than 12,000 shares during any one purchase period. The 2024 ESPP share reserve automatically increases on January 1st of each calendar year, for ten years, commencing on January 1, 2025, in an amount equal to 1% of the total number of shares of common stock outstanding on December 31st of the preceding calendar year. The Board may act prior to January 1st of a given year to provide that there will be no January 1st increase of the share reserve for such year or that the increase in the share reserve for such year will be a smaller number of shares of

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common stock than would otherwise occur pursuant to the preceding sentence. On January 1, 2025, the share reserve increased by 559,286. There were 11,756 shares issued under the Company's 2024 ESPP for aggregate proceeds of less than $0.1 million during the three months ended September 30, 2025.

The Company recorded share-based compensation expense in the following expense categories of its accompanying unaudited condensed consolidated statements of operations during the three and nine months ended September 30, 2025 and 2024.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>September 30,** | **Three Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| General and administrative | $1144701 | $573558 | $3515004 | $720497 |
| Research and development | 27788 | 14393 | 77081 | 17973 |
| &nbsp;&nbsp;Total share-based compensation | $1172489 | $587951 | $3592085 | $738470 |

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*Stock Options*

The following table summarizes stock option activity for the nine months ended September 30, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Options** | **Weighted Average Exercise Price** | **Weighted Average Exercise Price** | **Weighted Average Remaining Life (Years)** |
| Balance at December 31, 2024 | 2537602 | $— | 5.60 | 7.85 |
| &nbsp;&nbsp;Granted | 69124 |  | 10.23 |  |
| &nbsp;&nbsp;Exercised | (296065) |  | 0.34 |  |
| &nbsp;&nbsp;Forfeited | (56732) |  | 10.23 |  |
| Balance at September 30, 2025 | 2253929 | $— | 6.30 | 7.34 |
| Vested and expected to vest | 1375907 | $— | 10.23 | 8.68 |
| Exercisable at the end of the period | 1347597 | $— | 3.66 | 6.44 |

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No options were granted during the three months ended September 30, 2025. As of September 30, 2025, the unrecognized compensation cost for options issued and then outstanding was $2.3 million and will be recognized over an estimated weighted-average amortization period of 2.68 years. The total intrinsic value of options exercised during the nine months ended September 30, 2025 and 2024 was $1.7 million and $0.5 million, respectively. The aggregate intrinsic value of options outstanding and exercisable as of September 30, 2025 was $4.0 million.

*Restricted Stock Units with Service-Only Conditions*

The following table summarizes RSUs with service-only conditions activity for the nine months ended September 30, 2025:

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| | | | |
|:---|:---|:---|:---|
|  | **Awards** | **Weighted Average Grant Date Fair Value** | **Weighted Average Grant Date Fair Value** |
| Balance at December 31, 2024 | 520300 | $— | 8.13 |
| &nbsp;&nbsp;Granted | 745313 |  | 6.71 |
| &nbsp;&nbsp;Released | (163861) |  | 8.38 |
| &nbsp;&nbsp;Forfeited | (65757) |  | 4.32 |
| Balance at September 30, 2025 | 1035995 | $— | 7.31 |

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The Company recognized $2.0 million and $0.4 million of stock-based compensation cost related to RSUs with service-only conditions for the nine months ended September 30, 2025 and 2024, respectively. As of September 30, 2025, the unrecognized compensation cost for RSUs with service-only conditions was $6.3 million and will be recognized over an estimated weighted-average amortization period of 2.40 years. The fair values of RSUs with service-only conditions are based on the fair value of the Company's common stock on the date of the grant. The 745,313 RSUs with service-only conditions that were granted during the nine months ended September 30, 2025 consisted of 384,014 awards granted to employees, 142,103 awards granted to non-employee equity method investees and 219,196 awards granted to non-employee directors. The awards granted to employees and to non-employee equity method investees vest as to 33.33% of the total awards granted on each of the first three anniversaries of the applicable vesting commencement date, subject to the applicable employee's continued service through the applicable vesting date. The awards granted

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to non-employee directors vest as to 100% of the total awards granted on the earlier of the first year anniversary of the applicable vesting commencement date and the date of the next annual shareholders' meeting.

*Restricted Stock Units with Market-Based Conditions*

The following table summarizes RSUs with market-based conditions activity for the nine months ended September 30, 2025:

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| | | | |
|:---|:---|:---|:---|
|  | **Awards** | **Weighted Average Grant Date Fair Value** | **Weighted Average Grant Date Fair Value** |
| Balance at December 31, 2024 |  | $— |  |
| &nbsp;&nbsp;Granted | 496483 |  | 10.09 |
| &nbsp;&nbsp;Released |  |  |  |
| &nbsp;&nbsp;Forfeited |  |  |  |
| Balance at September 30, 2025 | 496483 | $— | 10.09 |

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The Company recognized $1.1 million of stock-based compensation cost related to RSUs with market-based conditions for the nine months ended September 30, 2025. As of September 30, 2025, the unrecognized compensation cost for RSUs with market-based conditions was $3.9 million and will be recognized over an estimated weighted-average amortization period of 2.25 years. The fair values of RSUs with market-based conditions are estimated using a Monte Carlo simulation model, which incorporates the likelihood of achieving the market condition. The 496,483 RSUs with market-based conditions that were granted during the nine months ended September 30, 2025 consisted of 475,298 awards granted to employees and 21,185 awards granted to non-employee equity method investees. These awards vest subject to certain market conditions.

The Company records expense ratably over the requisite service period, with expense determined based on the grant date fair value regardless of whether the market condition is satisfied because the awards are subject to market conditions. These awards that remain subject to market conditions are reflected at the target level, which is consistent with how expense will be recorded, regardless of the numbers of shares that are expected to be earned. The grant date fair value of the awards granted is established using the Monte Carlo simulation model. The following summarizes the assumptions used to estimate the fair value of the RSUs with market-based conditions that were granted during the nine months ended September 30, 2025:

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| | |
|:---|:---|
| **RSUs - Market-Based Conditions** |  |
| &nbsp;&nbsp;Expected term - years | 2.9 |
| &nbsp;&nbsp;Expected volatility | 89.7% |
| &nbsp;&nbsp;Risk-free interest rate | 4.3% |
| &nbsp;&nbsp;Expected dividends |  |

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*Restricted Stock Units with Performance-Based Conditions*

The following table summarizes RSUs with performance-based conditions activity for the nine months ended September 30, 2025:

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| | | | |
|:---|:---|:---|:---|
|  | **Awards** | **Weighted Average Grant Date Fair Value** | **Weighted Average Grant Date Fair Value** |
| Balance at December 31, 2024 |  | $— |  |
| &nbsp;&nbsp;Granted | 201279 |  | 8.18 |
| &nbsp;&nbsp;Released |  |  |  |
| &nbsp;&nbsp;Forfeited |  |  |  |
| Balance at September 30, 2025 | 201279 | $— | 8.18 |

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These awards vest subject to certain performance-based conditions. Stock-based compensation cost related to RSUs with performance-based conditions was reversed during the three months ended September 30, 2025 as the performance-based conditions are considered less than probable as of September 30, 2025.

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**Note 11 — FAIR VALUE MEASUREMENTS**

**Items Measured at Fair Value on a Recurring Basis:**

The Company accounts for certain liabilities at fair value on a recurring basis and classifies these liabilities within the fair value hierarchy (Level 1, Level 2, or Level 3). Assumptions such as risk-free rate, stock price, volatility and discount rate were based on market data. Management used a single point estimate for the risk-free rate, volatility and discount rate.

Liabilities subject to fair value measurements that are valued on a recurring basis are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of September 30, 2025** | **As of September 30, 2025** | **As of September 30, 2025** | **As of September 30, 2025** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Liabilities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Earnout Shares liability | $— | $— | $7144000 | $7144000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Subject Vesting Shares liability |  |  | 1506000 | 1506000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | $— | $— | $8650000 | $8650000 |

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***Earnout Shares***

The Legacy Montana Equityholders have the opportunity to receive additional equity consideration (in each case, in accordance with their respective pro rata share) through the Earnout Shares. The maximum value of the Earnout Shares is capped at $200.0 million ("Maximum Earnout Milestone Amount"), and the ability to receive Earnout Shares expires on the fifth anniversary of the Closing. A majority of the independent members of the Post-Combination Company Board then serving has sole discretion in determining, among other things, the achievement of the applicable milestones, the calculations of payments of Earnout Shares to the applicable Legacy Montana Equityholders, the dates on which construction and operational viability of new production capacity is deemed completed and whether to consent to a transfer of the applicable Legacy Montana Equityholder's right to receive Earnout Shares. Earnout Shares issuable in respect of Legacy Montana options outstanding as of immediately prior to the effective time of the Merger may be issued to the holder of such Legacy Montana option only if such holder continues to provide services (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.

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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 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 expected future cash flows represent contractual inputs. See the following summary of key inputs:

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| | | |
|:---|:---|:---|
|  | **As of<br>September 30,<br>2025** | **As of<br>December 31,<br>2024** |
| Stock Price | $4.69 | $7.97 |
| Volatility | 34% | 40% |
| Risk free rate of return | 3.70% | 4.30% |
| Discount rate | 25% | 25% |
| Expected term (in years) | 3.5 | 4.2 |

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The following table presents the changes in the fair value of the Earnout Shares liability:

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| | |
|:---|:---|
|  | **Nine Months Ended<br>September 30,<br>2025** |
| Earnout Shares liability as of December 31, 2024 | $24524000 |
| Change in fair value | (12832000) |
| Balance as of March 31, 2025 | 11692000 |
| Change in fair value | (6276000) |
| Balance as of June 30, 2025 | 5416000 |
| Change in fair value | 1728000 |
| Balance as of September 30, 2025 | $7144000 |

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As of September 30, 2025 and December 31, 2024, the estimated fair value of all the Earnout Shares, $7.1 million and $24.5 million, respectively represents approximately 1,097,751 and 2,115,227 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.

***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 L.P. was less than $8.50 for 15 consecutive trading days. As a result of this triggering event, the Company issued to the investor 275,880 shares of Class A common stock on March 18, 2025. The difference between the fair value of True Up Shares as reported on the triggering event date and the fair value calculated using the Company's stock price at close of business on the triggering event date was recognized as a gain in the condensed consolidated statements of operations. Prior to the triggering event, 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.

The estimated fair value of the True Up Shares 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.

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***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 proposed Business Combination, (iii) be bound by certain transfer restrictions with respect to the Sponsor Securities and (iv) waive certain antidilution protections with respect to the Sponsor Securities, in each case, on the terms and subject to the conditions set forth in the Sponsor Support Agreement.

In addition, pursuant to the terms of the Sponsor Support Agreement, the Sponsor (i) agreed to waive its redemption rights with respect to any Sponsor Securities in connection with the completion of a Business Combination (which waiver was provided in connection with the IPO and without any separate consideration paid in connection with providing such waiver), (ii) agreed not to transfer any public shares and founder shares held by it during the time prior to Closing or the termination of the Merger Agreement, (iii) agreed to waive anti-dilution protections and (iv) and agreed to subject certain of the shares of Combined Company Class A common stock held by Sponsor following the conversion of the founder shares as of the Closing to certain vesting provisions. Specifically, and as described above in Note 4 – *Recapitalization*, the Sponsor Support Agreement provides that as of immediately prior to (but subject to) the Closing, the Subject Vesting Shares will be subject to an earnout, with the Subject Vesting Shares vesting during the period beginning on the date of Closing and ending five (5) years following the date of Closing (i) simultaneously with the issuance of the Earnout Shares made to the Legacy Montana Equityholders in a proportionate amount to the payment achieved in relation to the maximum issuance of Earnout Shares of equity interests of $200.0 million (the "Performance Vesting Trigger") and (ii) up to 50% of the Subject Vesting Shares (including any vested Subject Vesting Shares from the Performance Vesting Trigger) vesting on any day following the Closing when the closing price of a share of Combined Company Class A common stock on the Nasdaq (the "Closing Share Price") equals or exceeds $12.00 (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) and all remaining Subject Vesting Shares vesting when the Closing Share Price equals or exceeds $14.00 (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like).

The following table presents the changes in the fair value of the Subject Vesting Shares liability:

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| | |
|:---|:---|
|  | **Nine Months Ended<br>September 30,<br>2025** |
| Subject Vesting Shares liability as of December 31, 2024 | $7819000 |
| Change in fair value | (5474000) |
| Balance as of March 31, 2025 | 2345000 |
| Change in fair value | (934000) |
| Balance as of June 30, 2025 | 1411000 |
| Change in fair value | 95000 |
| Balance as of September 30, 2025 | $1506000 |

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The estimated fair value of the Subject Vesting 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 Subject Vesting Shares considered the $12.00 and $14.00 vesting conditions in addition to the vesting related to the earnout milestone amount.

**Items Measured at Fair Value on a Nonrecurring Basis**

In addition to items that are measured at fair value on a recurring basis, the Company measures certain assets and liabilities at fair value on a nonrecurring basis which are not included in the tables above. These assets and liabilities include our Investment in AirJoule, LLC and Equity Line Obligation liability, respectively. As these nonrecurring fair value measurements are generally determined using unobservable inputs, these fair value measurements are classified within Level 3 of the fair value hierarchy. For further information of our Investment in AirJoule, LLC see Note 5 – *Equity Method Investment*. The Company assesses the need to calculate the change in fair value of the Equity Line Obligation liability depending on how material the change is and the associated impact to the financials. During the three months ended September 30, 2025, the Company remeasured the fair value of the Equity Line Obligation liability resulting in a change in fair value of $0.2 million.

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**Note 12 — COMMITMENTS AND CONTINGENCIES**

The Company is involved in various legal matters arising in the normal course of business. In the opinion of the Company's management and legal counsel, the amount of losses that may be sustained, if any, would not have a material effect on the financial position and results of operations of the Company.

***Risks and Uncertainties***

The Company, as an early-stage business without any current operations, product sales or revenue, has historically been dependent upon the sourcing of external capital to fund its overhead and product development costs. This is a typical situation for any early-stage company without product sales.

***Royalties***

In October 2021, the Company entered into a patent license agreement with a third party whereby the third party granted us rights to use certain of their patents in exchange for an upfront payment and royalties based on a percentage of net sales until such patents expire. In connection with this, the Company agreed to certain minimum royalty amounts. In September 2025, the Company entered into the Second Amended and Restated License Agreement which eliminated the minimum royalty amounts through 2029, which resulted in a reversal of $0.5 million in accrued royalties expense during the three months ended September 30, 2025.

***Joint Venture Agreement***

On October 27, 2021, Legacy Montana entered into a joint venture with CATL US Inc. ("CATL US"), an affiliate of CATL, pursuant to which we and CATL US formed CAMT Climate Solutions Ltd., a limited liability company organized under the laws of Hong Kong ("CAMT"). Legacy Montana and CATL US both own 50% of CAMT's issued and outstanding shares. Under the joint venture agreement, as revised, CAMT has the exclusive right to commercialize the AirJoule technology in Europe and Asia.

Pursuant to the Amended and Restated Joint Venture Agreement for CAMT, entered into on September 29, 2023, Legacy Montana and CATL US have each agreed to contribute $6.0 million to CAMT. Contributions will be requested by CAMT once a business plan and operating budget is set by CAMT's Board of Directors. No action to establish a business plan or operating budget has occurred to date. Any additional financing beyond the initial $12.0 million (i.e., $6.0 million from each of Legacy Montana and CATL US) will be subject to the prior mutual agreement of Legacy Montana and CATL US. CAMT is managed by a four-member board of directors, with two directors (including the chairman) designated by CATL US and two directors (including the vice chairman) designated by Legacy Montana. In the event of an equal vote, the chairman may cast the deciding vote. Certain reserved matters, including debt issuances exceeding $5.0 million in a single transaction or in aggregate within a fiscal year, amendments to CAMT's constitutional documents, the annual financial budget of CAMT and any transaction between CAMT and CATL US or Legacy Montana in an amount exceeding $10.0 million in a single transaction or in aggregate within a fiscal year, require the unanimous vote of both CATL US and Legacy Montana or all directors. As of September 30, 2025, no amount was funded to CAMT.

The purpose of Legacy Montana's joint venture with CATL US is to commercialize the AirJoule technology in Asia and Europe and, pursuant to the Amended and Restated Joint Venture Agreement for CAMT, CAMT has the exclusive right to commercialize our AirJoule technology in those territories. Subject to the oversight of CAMT's board, CATL US is responsible for managing the day-to-day operations of CAMT (including the nomination and replacement of the Chief Executive Officer of CAMT) and is responsible for providing CAMT and any subsidiaries formed by CAMT with, among other things, administrative services, supply chain support, assistance in obtaining required permits and approvals and assistance in purchasing or leasing land and equipment. The Company's financial statements do not reflect any accounting for CAMT as no assets (including IP) or cash have been contributed to CAMT and there has been no activity as of September 30, 2025.

***Letter Agreement***

On January 7, 2024, Legacy Montana entered into a letter agreement (the "Letter Agreement") with XPDB and Carrier Corporation, an affiliate of Carrier Global Corporation (NYSE: CARR), a global leader in intelligent climate and energy solutions (collectively with its affiliates, "Carrier"), pursuant to which Carrier, XPDB and the Company agreed, among other things, to provide Carrier the right to nominate one (1) designee, subject to the approval of the Company, for election to the board of directors for so long as Carrier satisfies certain investment conditions, following the Business Combination. Pursuant to the terms of the agreement, Carrier has nominated its director.

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**Note 13 — SEGMENT INFORMATION**

The following table reconciles segment profit or loss to consolidated net income on the condensed consolidated statements of operations:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Interest income | 272899 | 374051 | 799656 | 616677 |
| Gain on contribution to AirJoule, LLC |  |  |  | 333500000 |
| Net change in fair value of liabilities | (1823000) | 38081000 | 23799106 | 42940000 |
| Other income |  | 6921 |  | 2214366 |
| Less: |  |  |  |  |
| General and administrative | 2962759 | 2438227 | 9500454 | 6462671 |
| Research and development | (8476) | (87147) | 781066 | 1809814 |
| Transaction costs incurred in connection with business combination |  |  |  | 54693103 |
| Income tax expense (benefit) | (2395968) | (1268295) | (5597508) | 83219044 |
| Other segment items <sup>(1)</sup> | 1903743 | 2362329 | 6535038 | 3084366 |
| Segment net income (loss) | $(4012159) | $35016858 | $13379712 | $230002045 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Other segment items included in segment net income (loss) include sales and marketing, depreciation and amortization expense, change in fair value of the Equity Line Obligation liability and equity loss from investment in AirJoule, LLC

The following table reconciles segment assets to consolidated assets on the condensed consolidated balance sheets:

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| | | |
|:---|:---|:---|
|  | **September 30,** | **December 31,** |
|  | **2025** | **2024** |
| Investment in AirJoule, LLC | 344660102 | 338178633 |
| Other segment assets <sup>(1)</sup> | 28069739 | 31673487 |
| Segment assets | 372729841 | 369852120 |
| Adjustments and reconciling items |  |  |
| Consolidated assets | $372729841 | $369852120 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Other segment assets included cash, cash equivalents and restricted cash, due from related party, prepaid expenses, operating lease right-of-use asset, and property and equipment, net

**Note 14 — SUBSEQUENT EVENTS**

*Capital Contribution* 

On April 25, 2025, the Company entered into the Second Amended and Restated Limited Liability Company Agreement of AirJoule, LLC (the "Amended LLC Agreement"), by and among the Company, GE Vernova and AirJoule, LLC. Pursuant to the Amended LLC Agreement, the Company is expected to contribute additional capital to the AirJoule JV based on a business plan and annual operating budgets to be agreed between the Company and GE Vernova. In October 2025, the Company contributed an additional $5.0 million in capital contributions to the AirJoule JV.

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**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*The following Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes appearing in this Quarterly Report on Form 10-Q, as well as the audited financial statements, notes and Management's Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2024.*

*This discussion includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "should," "could," "would," "expect," "plan," "anticipate," "believe," "estimate," "continue," or the negative of such terms or other similar expressions. Such statements include, but are not limited to, possible business combinations and the financing thereof, and related matters, as well as all other statements other than statements of historical fact included herein. Factors that might cause or contribute to such a discrepancy include, but are not limited to: our status as an early stage company with limited operating history, which may make it difficult to evaluate the prospects for our future viability; our initial dependence on revenue generated from a single product; significant barriers we face to deploy our technology; the dependence of our commercialization strategy on our relationship with third parties; our history of losses; accuracy of assumptions underlying projections related to our equity method goodwill impairment testing; and other risks and uncertainties described in our other SEC filings.*

*Unless the context otherwise requires, references in this "Management's Discussion and Analysis of Financial Condition and Results of Operations" to "we", "us", "our", and the "Company" are intended to refer to (i) following the Business Combination (as defined below), the business and operations of AirJoule Technologies Corporation, formerly known as Montana Technologies Corporation and its consolidated subsidiaries, and (ii) prior to the Business Combination, AirJoule Technologies LLC, formerly known as Montana Technologies LLC, or Legacy Montana, and its consolidated subsidiaries.*

**Company Overview**

We are an advanced technology company whose purpose is to free the world from its water and energy constraints by delivering groundbreaking sorption technologies. AirJoule is the leading technology platform that unleashes the power of water from air. AirJoule produces pure distilled water from air, and our proprietary AirJoule platform, at commercial scale, will mitigate water scarcity through distributed water generation for businesses and consumers around the world. Our products are especially valuable for industrial users, which generate significant amounts of waste heat that can be used to power our sorption technologies to produce low cost pure distilled water and dehumidified air – two key inputs for a variety of industrial activities, including data centers and advanced manufacturing. In HVAC applications, AirJoule is designed to reduce energy consumption, minimize or even eliminate the use of environmentally-harmful refrigerants, and generate material cost efficiencies for air conditioning systems. We are focused on commercialization and scaling manufacturing of our AirJoule products through our global collaborations, including with GE Vernova and Carrier, and we believe that deploying AirJoule units worldwide will serve our purpose of freeing the world of its water and energy constraints. We plan to manufacture initial AirJoule systems capable of producing more than 250 liters per day in 2025, which we intend to use for customer demonstrations, and we expect to scale capacities for commercial sales in 2026.

**Growth Strategy and Outlook**

We anticipate significant growth opportunities by offering AirJoule in global markets where demand for water, dehumidified air and cooling are highest. With our technology platform, we believe that we are uniquely positioned to provide curated solutions that satisfy our customers' needs and expectations in fast-growing and water and energy-intensive industries, such as data centers and advanced manufacturing, along with military and HVAC applications. We estimate the combined total addressable market to be approximately $450 billion.

In the data center arena, we aim to address escalating energy and water efficiency challenges associated with increased computing density by using low-grade waste heat to produce pure distilled water and enabling data center operators to reduce their cooling costs and improve water sustainability. Similarly, in advanced manufacturing environments, where product quality and process precision hinge on consistent humidity and ultra-pure water, AirJoule can help customers with cost-effective dehumidification. The military sector presents a distinct opportunity, as AirJoule is able to operate in a variety of climate conditions to support troops in remote and water-scarce environments, ensuring mission readiness and resilience. In the HVAC space, where building owners and facility managers are under pressure to cut energy consumption and improve indoor air quality, AirJoule's superior moisture removal capability will reduce power consumption and the use of refrigerants in air conditioning systems.

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To accelerate market penetration and scale our manufacturing capabilities, we plan to leverage our strategic partnerships. These partnerships offer access to industry-specific R&D expertise, mature supply chains, established sales channels and extensive service networks, allowing us to quickly move from pilot deployments to full-scale commercialization. We intend to co-develop sector-specific solutions, capitalizing on our partners' market insights and reputational strength to better serve diverse customer needs. By combining our innovative AirJoule technology with their global reach and operational expertise, we will unlock value across multiple industries, establish our position as a leader in water-focused solutions and deliver long-term growth and value to our shareholders.

**Recent Developments**

***The April 2025 PIPE***

On April 23, 2025, we entered into the April 2025 PIPE Subscription Agreements with the April 2025 PIPE Investors, pursuant to which, among other things, the April 2025 PIPE Investors agreed to subscribe for and purchase from the Company, and we agreed to issue and sell to the April 2025 PIPE Investors, an aggregate of 3,775,126 newly issued shares of Class A common stock at a purchase price of $3.98 per share on the terms and subject to the conditions set forth therein. The April 2025 PIPE Subscription Agreements entitled the April 2025 PIPE Investors to shelf registration rights with respect to the shares of Class A common stock they purchased. The transaction closed on April 25, 2025, and the shares of Class A common stock were issued and sold to the April 2025 PIPE Investors in reliance on Section 4(a)(2) of the Securities Act.

***Committed Equity Facility***

On March 25, 2025, we entered into the Equity Line Purchase Agreement, with the Equity Line Investor. Under the terms and subject to the conditions of the Equity Line Purchase Agreement, the Company has the right, but not the obligation, to sell to the Equity Line Investor, over a 36-month period, up to an aggregate of $30,000,000 of our newly issued shares of common stock subject to certain conditions and limitations contained in the Equity Line Purchase Agreement, including that we may issue no more than the number of shares equal to 19.99% of the aggregate number of our issued and outstanding shares of common stock as of immediately prior to the execution of the Equity Line Purchase Agreement without first obtaining stockholder approval. As of September 30, 2025, sales under the Equity Line Purchase Agreement generated net proceeds of approximately $0.4 million.

***The Amended LLC Agreement***

On April 25, 2025, we entered into the Amended LLC Agreement, pursuant to which we expected to contribute additional capital to the AirJoule JV based on a business plan and annual operating budgets to be agreed between us and GE Vernova. In October 2025, we contributed an additional $5.0 million in capital contributions to the AirJoule JV.

**Components of Our Results of Operations**

***Revenue***

We anticipate that we will earn revenue from the sale of various key components that will be used in the assembly of AirJoule systems. As of September 30, 2025, no revenue has been earned from our operations.

***Operating Expenses***

We classify our operating expenses into the following categories:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*General and administrative:* General and administrative expenses consist primarily of personnel-related expenses for our executives, consultants and advisors. These expenses also include non-personnel costs, such as rent, office supplies, legal, audit and accounting services and other professional fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Research and development:* Research and development expenses include internal personnel, parts, prototypes and third-party consulting costs related to preliminary research and development of our products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Sales and marketing:* Sales and marketing expenses consist primarily of business development, professional fees, advertising and marketing costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Transaction costs incurred in connection with business combination:* Transaction costs represent the initial recognition of the Earnout Shares liability and fees incurred for financial advisory, legal and other professional services that were directly related to the Business Combination.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Depreciation and amortization:* Depreciation and amortization expense consists of depreciation of property and equipment.

**Results of Operations**

The following tables set forth the results of our operations for the periods presented, as well as the changes between periods. The period-to-period comparison of financial results is not necessarily indicative of future results.

***The three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024***

The following table sets forth the Company's condensed consolidated statements of operations data for the three and nine months ended September 30, 2025 and 2024:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** | **Change ($)** | **2025** | **2024** | **Change ($)** |
| Cost and expenses: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | $2962759 | $2438227 | $524532 | $9500454 | $6462671 | $3037783 |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | (8476) | (87147) | 78671 | 781066 | 1809814 | (1028748) |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 50473 | 23639 | 26834 | 72476 | 136205 | (63729) |
| &nbsp;&nbsp;&nbsp;&nbsp;Transaction costs incurred in connection with business combination |  |  |  |  | 54693103 | (54693103) |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 2871 | 2136 | 735 | 6748 | 4437 | 2311 |
| Loss from operations | (3007627) | (2376855) | (630772) | (10360744) | (63106230) | 52745486 |
| Other income (expense): |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | 272899 | 374051 | (101152) | 799656 | 616677 | 182979 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on contribution to AirJoule, LLC |  |  |  |  | 333500000 | (333500000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity loss from investment in AirJoule, LLC | (1948586) | (2336554) | 387968 | (6268531) | (2943724) | (3324807) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of Earnout Shares liability | (1728000) | 31759000 | (33487000) | 17380000 | 37151000 | (19771000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of True Up Shares liability |  | (1866000) | 1866000 | 106106 | (1733000) | 1839106 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of Subject Vesting Shares liability | (95000) | 8188000 | (8283000) | 6313000 | 7522000 | (1209000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on settlement of legal fees |  |  |  |  | 2207445 | (2207445) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income (expense), net | 98187 | 6921 | 91266 | (187283) | 6921 | (194204) |
| Total other income (loss), net | (3400500) | 36125418 | (39525918) | 18142948 | 376327319 | (358184371) |
| Income (loss) before income taxes | (6408127) | 33748563 | (40156690) | 7782204 | 313221089 | (305438885) |
| Income tax benefit (expense) | 2395968 | 1268295 | 1127673 | 5597508 | (83219044) | 88816552 |
| **Net income (loss)** | $(4012159) | $35016858 | $(39029017) | $13379712 | $230002045 | $(216622333) |

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*General and Administrative*

General and administrative expenses for the three months ended September 30, 2025 were $3.0 million as compared to $2.4 million for the three months ended September 30, 2024. The $0.5 million increase was primarily related to a $0.7 million increase in share-based compensation expense and a $0.1 million increase in salaries and benefits as a result of an increased headcount offset by a $0.3 million decrease in audit and legal fees. We expect that our general and administrative expenses will increase in future periods commensurate with the expected growth of our business and increased expenditures associated with our status as an exchange-listed public company.

General and administrative expenses for the nine months ended September 30, 2025 were $9.5 million as compared to $6.5 million for the nine months ended September 30, 2024. The $3.0 million increase was primarily related to a $3.1 million increase in share-based compensation expense and a $1.4 million increase in salaries and benefits as a result of an increased headcount offset by an increase in

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reimbursement of costs incurred per the statement of work with AirJoule, LLC of $0.6 million, a $0.5 million decrease in professional services and a $0.4 million decrease in audit and legal fees. We expect that our general and administrative expenses will increase in future periods commensurate with the expected growth of our business and increased expenditures associated with our status as an exchange-listed public company.

*Research and Development*

Research and development expenses for the three months ended September 30, 2025 were $(8,476) as compared to $(87,147) for the three months ended September 30, 2024. Reimbursement of costs related to the statement of work with AirJoule, LLC, which was executed in November 2024, was $2.0 million as of September 30, 2024. These costs were incurred from March 4, 2024 to September 30, 2024 and resulted in negative research and development expense during the period. During the three months ended September 30, 2025, the Company entered into the Second Amended and Restated License Agreement which eliminated the minimum royalty payment obligations through 2029, resulting in a reversal of $0.5 million and negative research and development expense during the period.

Research and development expenses for the nine months ended September 30, 2025 were $0.8 million as compared to $1.8 million for the nine months ended September 30, 2024. The $1.0 million decrease in research and development was primarily related to a $1.0 million decrease in R&D materials purchases, a $0.7 million decrease in patent and royalty expenses, a $0.6 million decrease in professional and consulting services offset by the decrease in the reimbursement of costs incurred per the statement of work with AirJoule, LLC of $1.0 million and a $0.3 million increase in share-based compensation and salaries and benefits.

*Sales and Marketing*

Sales and marketing expenses for the three months ended September 30, 2025 were $50,473 as compared to $23,639 for the three months ended September 30, 2024.

Sales and marketing expenses for the nine months ended September 30, 2025 were $72,476 as compared to $136,205 for the nine months ended September 30, 2024.

*Transaction Costs Incurred in Connection with Business Combination*

Transaction costs incurred in connection with the business combination include the non-cash recognition of earnout liabilities of approximately $53.7 million and transaction costs incurred by Legacy Montana of approximately $1.0 million, which were paid in 2024.

*Depreciation and Amortization*

Depreciation and amortization expense for the three months ended September 30, 2025 and 2024 was $2,871 and $2,136, respectively.

Depreciation and amortization expense for the nine months ended September 30, 2025 and 2024 was $6,748 and $4,437, respectively.

*Interest Income*

Interest income was $272,899 and $374,051 for the three months ended September 30, 2025 and 2024, respectively. This was primarily a result of the decrease in our cash balance and interest rates.

Interest income was $799,656 and $616,677 for the nine months ended September 30, 2025 and 2024, respectively. This was primarily a result of the increase in our cash balance.

*Gain on Contribution to AirJoule, LLC*

An equity method investment received in exchange for noncash consideration is measured at fair value. As a result, during the nine months ended September 30, 2024, we recognized a gain of $333.5 million on the contribution to AirJoule, LLC for the difference between our zero carrying value and the fair value of the perpetual license to intellectual property that we transferred to AirJoule, LLC.

We determined the fair value of the intellectual property by applying the multi-period excess earnings method, which involved the use of significant estimates and assumptions related to forecasted revenue growth rate and customer attrition rate, Level 3 measurements. Valuation specialists were used to develop and evaluate the appropriateness of the multi-period excess earnings method, our discount rates, attrition rate and fair value estimates using its cash flow projections.

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*Equity Loss from Investment in AirJoule, LLC*

As previously noted, on January 25, 2024, Legacy Montana and GE Vernova entered into a joint venture, the AirJoule JV which closed on March 4, 2024. For the three months ended September 30, 2025 and 2024, we recognized a loss of $1.9 million and $2.3 million, respectively from our 50% equity investment in the AirJoule JV. For the nine months ended September 30, 2025 and 2024, we recognized a loss of $6.3 million and $2.9 million, respectively from our 50% equity investment in the AirJoule JV. During the three months ended September 2025, AirJoule, LLC determined that the carrying value of its goodwill exceeded the respective fair value, and recorded an impairment charge of $154.8 million. There was no financial impact to our Equity Loss from Investment in AirJoule, LLC for the three and nine months ended September 30, 2025 as we reduced our basis difference attributable to goodwill by $77.4 million, which represented our share of AirJoule, LLC's goodwill impairment charge.

*Change in Fair value of Earnout Shares liability*

Upon consummation of the Business Combination, we expensed approximately $53.7 million in Earnout Shares liability. The change in fair value of $(1.7) million for the three months ended September 30, 2025 was primarily due to an increase in the estimated fair value of the liability and recognized as a loss in the condensed consolidated statements of operations. The fair value of the liability increased primarily due to changes in the valuation inputs and changes in the timing of expected future cash flows. The change in fair value of $31.8 million for the three months ended September 30, 2024 and $17.4 million and $37.2 million for the nine months ended September 30, 2025 and 2024, respectively, was primarily due to a decrease in the estimated fair value of the liability and recognized as gains in the condensed consolidated statements of operations. The fair value of the liability decreased primarily due changes in the valuation inputs, mainly a decrease in the stock price and changes in the timing of expected future cash flows.

*Change in Fair value of True Up Shares liability*

Upon consummation of the Business Combination, we assumed approximately $0.6 million in earnout true up shares liability. The change in fair value of the liability during the nine months ended September 30, 2025 was primarily due to the triggering event and issuance of Class A common stock.

*Change in Fair value of Subject Vesting Shares liability*

Upon consummation of the Business Combination, we assumed approximately $11.8 million for the subject vesting shares liability. The change in fair value of income of $(0.1) million for the three months ended September 30, 2025 was primarily due to an increase in the estimated fair value of the liability and recognized as a loss in the condensed consolidated statements of operations. The fair value of the liability increased primarily due to changes in the valuation inputs and changes in the timing of expected future cash flows. The change in fair value of $8.2 million during the three months ended September 30, 2024 and $6.3 million and $7.5 million during the nine months ended September 30, 2025 and 2024, respectively was primarily due to a decrease in the estimated fair value of the liability recognized as gains in the condensed consolidated statements of operations. The fair value of the liability decreased primarily due changes in the valuation inputs, mainly a decrease in the stock price and changes in the timing of expected future cash flows.

*Income Tax Benefit (Expense)*

For the three months ended September 30, 2025 and 2024, income tax benefit was $2.4 million and $1.3 million, respectively. For the nine months ended September 30, 2025 and 2024, income tax benefit (expense) was $5.6 million and $(83.2) million, respectively. During the three and nine months ended September 30, 2024, our contribution of a perpetual license to AirJoule, LLC's intellectual property was measured at fair value resulted in a book gain and a temporary difference between book and taxable income. The temporary difference resulted in the recognition of a deferred tax expense and deferred tax liabilities of approximately $87.8 million. This expense was partially offset by the recognition of deferred tax assets in connection with the Company now being a corporation through the Business Combination.

**Liquidity and Capital Resources**

***The April 2025 PIPE***

On April 23, 2025, we entered into the April 2025 PIPE Subscription Agreements with the April 2025 PIPE Investors pursuant to which, among other things, the April 2025 PIPE Investors agreed to subscribe for and purchase from the Company, and we agreed to issue and sell to the April 2025 PIPE Investors, an aggregate of 3,775,126 newly issued shares of Class A common stock at a purchase price of $3.98 per share on the terms and subject to the conditions set forth therein. The April 2025 PIPE Subscription Agreements entitled the April 2025 PIPE Investors to shelf registration rights with respect to the shares of Class A common stock they purchased. The transaction closed on April 25, 2025, and the shares of Class A common stock were issued and sold to the April 2025 PIPE Investors in reliance on Section 4(a)(2) of the Securities Act.

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***Committed Equity Facility***

On March 25, 2025, we entered into the Equity Line Purchase Agreement with the Equity Line Investor. Under the terms and subject to the conditions of the Equity Line Purchase Agreement, the Company has the right, but not the obligation, to sell to the Equity Line Investor, over a 36-month period, up to an aggregate of $30,000,000 of our newly issued shares of common stock subject to certain conditions and limitations contained in the Equity Line Purchase Agreement, including that we may issue no more than the number of shares equal to 19.99% of the aggregate number of our issued and outstanding shares of common stock as of immediately prior to the execution of the Equity Line Purchase Agreement without first obtaining stockholder approval. As of September 30, 2025, sales under the Equity Line Purchase Agreement generated net proceeds of approximately $0.4 million.

***Capital Contribution*** 

Pursuant to the A&R Joint Venture Agreement, we are expected to contribute additional capital to the AirJoule JV based on a business plan and annual operating budgets to be agreed between us and GE Vernova. During the nine months ended September 30, 2025, we contributed an additional $12.8 million in capital contributions to the AirJoule JV.

***General***

Our primary sources of liquidity have been cash from contributions from founders or equity capital raised from other investors. As of September 30, 2025, we had $25.9 million of working capital including $26.0 million in cash, cash equivalents and restricted cash.

We assess liquidity in terms of our ability to generate adequate amounts of cash to meet current and future needs. Our expected primary uses of cash on a short and long-term basis are for working capital requirements, capital expenditures and other general corporate services. Our primary working capital requirements are for project execution activities including purchases of materials, services and payroll which fluctuate during the year, driven primarily by the timing and extent of activities required for new and existing projects. Management expects that future operating losses and negative operating cash flows may increase from historical levels because of additional costs and expenses related to the development of its technology and the development of market and strategic relationships with other businesses and customers.

Our future capital requirements will depend on many factors, including the timing and extent of spending to support the launch of our product and research and development efforts, the degree to which we are successful in launching new business initiatives and the cost associated with these initiatives and the growth of our business generally. Pursuant to the A&R Joint Venture Agreement, we contributed $10 million in cash to the AirJoule JV at the JV closing and in June 2024, GE Vernova contributed $100 to the AirJoule JV. Pursuant to the A&R Joint Venture Agreement, we agreed to make additional capital contributions to the AirJoule JV based on a business plan and annual operating budgets to be agreed between the Company and GE Vernova, and our remaining commitment for capital contributions to the AirJoule JV is $82.3 million as of September 30, 2025. In general, for the first six years, GE Vernova has the right, but not the obligation, to make capital contributions to the AirJoule JV.

In order to finance these opportunities and associated costs, it is possible that we would need to raise additional financing if the proceeds realized to date are insufficient to support our business needs. While we believe that the proceeds realized to date will be sufficient to meet our currently contemplated business needs, management cannot assure that this will be the case. If additional financing is required by us from outside sources, we may not be able to raise it on terms acceptable to us or at all. If we are unable to raise additional capital on acceptable terms when needed, our product development business, results of operations and financial condition would be materially and adversely affected.

**Cash flows for the nine months ended September 30, 2025 and 2024**

The following table summarizes our cash flows from operating, investing and financing activities for the nine months ended September 30, 2025 and 2024:

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| | | |
|:---|:---|:---|
|  | **For the Nine Months Ended<br>September 30,** | **For the Nine Months Ended<br>September 30,** |
|  | **2025** | **2024** |
| Net cash used in operating activities | $(4035731) | $(21561224) |
| Net cash used in investing activities | (12768008) | (10016031) |
| Net cash provided by financing activities | 14789716 | 61889003 |
| Net increase (decrease) in cash and cash equivalents | $(2014023) | $30311748 |

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***Cash Flows from Operating Activities***

During the nine months ended September 30, 2025, net cash used in operating activities was $4.0 million and primarily reflected our net income of $13.4 million, a $6.3 million equity loss from our investment in AirJoule, LLC, a $3.5 million of share-based compensation and a $2.2 million increase in our operating assets and liabilities offset by net noncash operating activities of $29.4 million of changes in fair value of our Earnout Shares, True Up Shares, Subject Vesting Shares and Equity Line Obligation liabilities as well as our deferred tax benefit and changes in accrued royalties. We expect to continue to use cash in our operating activities with the expected growth of our business.

During the nine months ended September 30, 2024, net cash used in operating activities was $21.6 million and primarily reflected our net income of $230.0 million, a $83.2 million deferred tax expense, a $2.9 million equity loss from our investment in AirJoule, LLC and $0.7 million of share-based compensation offset by net noncash operating activities of $282.0 million related to the contribution to AirJoule, LLC, the settlement of legal fees and other costs in connection with the business combination, $42.9 million of changes in fair value of our Earnout Shares, True Up Shares and Subject Vesting Shares liabilities and a $13.6 million decrease in our operating assets and liabilities.

***Cash Flows from Investing Activities***

During the nine months ended September 30, 2025, net cash used in investing activities was $12.8 million primarily as a result of our contributions made to the AirJoule JV during the period.

During the nine months ended September 30, 2024, net cash used in investing activities was $10.0 million primarily as a result of our contributions made to the AirJoule JV.

***Cash Flows from Financing Activities***

During the nine months ended September 30, 2025, net cash provided by financing activities was $14.8 million primarily as a result of the $14.2 million net proceeds from the April 2025 PIPE Offering, $0.4 million net proceeds from the Equity Line Purchase Agreement and $0.1 million of proceeds from the exercise of options.

During the nine months ended September 30, 2024, net cash provided by financing activities was $61.9 million and was primarily related to the $61.8 million net proceeds from the issuance of common stock related to private placements prior to the Business Combination, and $0.1 million of proceeds from the exercise of stock options and warrants.

**Contractual Obligations and Commitments**

***Royalties***

In October 2021, the Company entered into a patent license agreement with a third party whereby the third party granted us rights to use certain of their patents in exchange for an upfront payment and royalties based on a percentage of net sales until such patents expire. In connection with this, the Company agreed to certain minimum royalty amounts. In September 2025, the Company entered into the Second Amended and Restated License Agreement which eliminated the minimum royalty amounts through 2029, which resulted in a reversal of $0.5 million in accrued royalties expense during the three months ended September 30, 2025.

***Joint Venture Agreements***

On October 27, 2021, we entered into a joint venture agreement with CATL, pursuant to which we and CATL formed CAMT. We and CATL both own 50% of CAMT's issued and outstanding shares. Under the joint venture agreement, as revised, CAMT has the exclusive right to commercialize our AirJoule technology in Europe and Asia.

Pursuant to the Amended and Restated Joint Venture Agreement for CAMT, entered into on September 29, 2023, Legacy Montana and CATL US have each agreed to contribute $6.0 million to CAMT. Contributions will be requested by CAMT once a business plan and operating budget is set by CAMT's board of directors. No action to establish a business plan or operating budget has occurred to date. Any additional financing beyond the initial $12.0 million (i.e., $6.0 million from each of Legacy Montana and CATL US) will be subject to the prior mutual agreement of Legacy Montana and CATL US. CAMT is managed by a four-member board of directors, with two directors (including the chairman) designated by CATL US and two directors (including the vice chairman) designated by Legacy Montana. In the event of an equal vote, the chairman may cast the deciding vote. Certain reserved matters, including debt issuances exceeding $5.0 million in a single transaction or in aggregate within a fiscal year, amendments to CAMT's constitutional documents the annual financial budget of CAMT, and any transaction between CAMT and CATL US or Legacy Montana in an amount exceeding $10.0 million in a single transaction or in aggregate within a fiscal year, require the unanimous vote of both CATL US and Legacy Montana or all directors. As of September 30, 2025, we have not funded this joint venture or contributed any assets to

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the joint venture.

The purpose of Legacy Montana's joint venture with CATL US is to commercialize our AirJoule technology in Asia and Europe and, pursuant to the Amended and Restated Joint Venture Agreement for CAMT, CAMT has the exclusive right to commercialize AirJoule technology in those territories. Subject to the oversight of CAMT's board, CATL US is responsible for managing the day-to-day operations of CAMT (including the nomination and replacement of the Chief Executive Officer of CAMT), and is responsible for providing CAMT and any subsidiaries formed by CAMT with, among other things, administrative services, supply chain support, assistance in obtaining required permits and approvals and assistance in purchasing or leasing land and equipment.

**Critical Accounting Estimates**

There have been no material changes to the critical accounting policies as disclosed in "Part I—Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Estimates" in our previously filed Quarterly Report on Form 10-Q.

**Recent Accounting Pronouncements**

A discussion of recently issued accounting standards applicable to the Company is described in Note 3 - *Summary of Significant Accounting Policies*, in the Notes to Financial Statements contained elsewhere in this Current Report on Form 10-Q.

**Off Balance Sheet Arrangements**

We did not have any off-balance sheet arrangements as of September 30, 2025.

**Emerging Growth Company Status**

We are an emerging growth company as defined in the JOBS Act. The JOBS Act permits companies with emerging growth company status to take advantage of an extended transition period to comply with new or revised accounting standards, delaying the adoption of these accounting standards until they would apply to private companies. We have elected to use this extended transition period to comply with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date we (i) are no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, our financial statements may not be comparable to companies that comply with the new or revised accounting standards as of public company effective dates.

In addition, we intend to rely on the other exemptions and reduced reporting requirements provided by the JOBS Act. Subject to certain conditions set forth in the JOBS Act, if, as an emerging growth company, we intend to rely on such exemptions, we are not required to, among other things: (i) provide an auditor's attestation report on our system of internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act; (ii) provide all of the compensation disclosure that may be required of non-emerging growth public companies under the Dodd-Frank Wall Street Reform and Consumer Protection Act; (iii) comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial statements (auditor discussion and analysis); and (iv) disclose certain executive compensation-related items such as the correlation between executive compensation and performance and comparisons of the Chief Executive Officer's compensation to median employee compensation.

We will remain an emerging growth company under the JOBS Act until the earliest of (i) the last day of our first fiscal year following the fifth anniversary of the closing of XPDB's initial public offering, (ii) the last date of our fiscal year in which we have total annual gross revenue of at least $1.235 billion, (iii) the date on which we are deemed to be a "large accelerated filer" under the rules of the SEC with at least $700.0 million of outstanding securities held by non-affiliates or (iv) the date on which we have issued more than $1.0 billion in non-convertible debt securities during the previous three years.

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**Item 3. Quantitative and Qualitative Disclosures About Market Risk**

Not applicable.

**Item 4. Controls and Procedures**

*Evaluation of Disclosure Controls and Procedures* 

Our management, with the participation of our principal executive officer and our principal financial officer, evaluated, as of the end of the period covered by this Quarterly Report on Form 10-Q, the effectiveness of our disclosure controls and procedures. Based on this evaluation of our disclosure controls and procedures as of September 30, 2025, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures as of such date are effective at the reasonable assurance level. The term "disclosure controls and procedures," as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act are recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives, and our management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

*Changes in Internal Control Over Financial Reporting*

There were no significant changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended) during the three months ended September 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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**PART II - OTHER INFORMATION**

**Item 1. Legal Proceedings**

We are and, from time to time, we may become involved in legal proceedings or be subject to claims arising in the ordinary course of our business. We are not presently a party to any other legal proceedings that, in the opinion of our management, if determined adversely to us, would individually or taken together have a material adverse effect on our business, operating results, financial condition, or cash flows.

**Item 1A. Risk Factors**

Our operations and financial results are subject to various risks and uncertainties, including the factors discussed in Part I, Item 1A, *Risk Factors* in our Annual Report on Form 10-K for the year ended December 31, 2024, which could adversely affect our business, financial conditions and future results.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds**

On April 23, 2025, we entered into the April 2025 PIPE Subscription Agreements with the April 2025 PIPE Investors, pursuant to which, among other things, the April 2025 PIPE Investors agreed to subscribe for and purchase from the Company, and the Company agreed to issue and sell to the April 2025 PIPE Investors, an aggregate of 3,775,126 newly issued shares of Class A common stock at a purchase price of $3.98 per share on the terms and subject to the conditions set forth therein. The April 2025 PIPE Subscription Agreements entitled the April 2025 PIPE Investors to shelf registration rights with respect to the shares of Class A common stock they purchased. The transaction closed on April 25, 2025, and the shares of Class A common stock were issued and sold to the April 2025 PIPE Investors in reliance on Section 4(a)(2) of the Securities Act.

On March 25, 2025, we entered into Equity Line Purchase Agreement with the Equity Line Investor. Under the terms and subject to the conditions of the Equity Line Purchase Agreement, the Company has the right, but not the obligation, to sell to the Equity Line Investor, over a 36-month period, up to an aggregate of $30,000,000 of our newly issued shares of common stock subject to certain conditions and limitations contained in the Equity Line Purchase Agreement, including that we may issue no more than 4,250,000 shares of our Class A common stock, after the date of this prospectus and during the term of the Purchase Agreement. These securities will be issued and sold in reliance on Section 4(a)(2) of the Securities Act.

We expect to use the proceeds for the funding of future capital expenditures.

**Item 3. Defaults Upon Senior Securities**

None.

**Item4. Mine Safety Disclosures**

Not applicable.

**Item 5. Other Information**

*Rule 10b5-1 and Non-Rule 10b5-1 Trading Arrangements*

During the quarter ended September 30, 2025, no director or officer (as defined in Rule 16a-1(f) under the Exchange Act) of the Company adopted or terminated a "Rule 10b5-1 trading agreement" or "non-Rule 10b5-1 trading agreement," as each term is defined in Item 408 of Regulation S-K.

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**Item 6. Exhibits**

The following exhibits are filed as part of, or incorporated by reference into, this Report.

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| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 2.1 | [<u>Agreement and Plan of Merger, dated as of June 5, 2023, by and among Montana Technologies LLC, XPDB Merger Sub, LLC and Power & Digital Infrastructure Acquisition II Corp. (incorporated by reference to Exhibit 2.1 of the Company's Current Report on Form 8-K, filed with the SEC on June 5, 2023).</u>](https://www.sec.gov/Archives/edgar/data/1855474/000121390023045982/ea179769ex2-1_power2.htm) |
| 2.2 | [<u>First Amendment to Agreement and Plan of Merger, dated February 5, 2024, by and among Power & Digital Infrastructure Acquisition II Corp., Montana Technologies LLC and XPDB Merger Sub LLC (incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K, filed with the SEC on February 5, 2024).</u>](https://www.sec.gov/Archives/edgar/data/1855474/000121390024009849/ea192799ex10-1_power2.htm) |
| 2.3 | [<u>Third Amended and Restated Certificate of Incorporation of AirJoule Technologies Corporation (incorporated by reference to Exhibit 3.1 of the Company's Current Report on Form 8-K, filed with the SEC on November 13, 2024)</u>](https://www.sec.gov/Archives/edgar/data/1855474/000121390024097177/ea022075701ex3-1_airjoule.htm) |
| 3.1 | [<u>Third Amended and Restated Bylaws of AirJoule Technologies Corporation (incorporated by reference to Exhibit 3.2 of the Company's Current Report on Form 8-K, filed with the SEC on November 13, 2024)</u>](https://www.sec.gov/Archives/edgar/data/1855474/000121390024097177/ea022075701ex3-2_airjoule.htm) |
| 4.1 | [<u>Public Warrant Agreement, dated December 9, 2021, by and between the Registrant and Continental Stock Transfer & Trust Company, as warrant agent (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed with the SEC on December 14, 2021).</u>](https://www.sec.gov/Archives/edgar/data/1855474/000121390021065227/ea152284ex4-2_power2.htm) |
| 4.2 | [<u>Private Warrant Agreement, dated December 9, 2021, by and between the Registrant and Continental Stock Transfer & Trust Company, as warrant agent (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed with the SEC on December 14, 2021).</u>](https://www.sec.gov/Archives/edgar/data/1855474/000121390021065227/ea152284ex4-1_power2.htm) |
| 10.1+ | [<u>Amended and Restated Executive Severance Plan</u>](https://www.sec.gov/Archives/edgar/data/1855474/000095017025108487/airj-ex10_6.htm) ([<u>incorporated by reference to Exhibit 10.6 of the Company's Current Report on Form 10-Q, filed with the SEC on August 14, 2025)</u>](https://www.sec.gov/Archives/edgar/data/1855474/000121390025034821/ea023936001ex10-1_airjoule.htm). |
| 31.1\* | [<u>Certification of Chief Executive Officer (Principal Executive Officer) Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</u>](https://www.sec.gov/Archives/edgar/data/1855474/000119312525281648/airj-ex31_1.htm) |
| 31.2\* | [<u>Certification of Chief Financial Officer (Principal Financial) Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</u>](https://www.sec.gov/Archives/edgar/data/1855474/000119312525281648/airj-ex31_2.htm) |
| 32.1\* | [<u>Certification of Chief Executive Officer (Principal Executive Officer) Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</u>](https://www.sec.gov/Archives/edgar/data/1855474/000119312525281648/airj-ex32_1.htm) |
| 32.2\* | [<u>Certification of Chief Financial Officer (Principal Financial) Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</u>](https://www.sec.gov/Archives/edgar/data/1855474/000119312525281648/airj-ex32_2.htm) |
| 101.INS\* | Inline XBRL Instance Document. |
| 101.SCH\* | Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents |
| 104\* | Cover Page Interactive Data File (embedded within the Inline XBRL document |

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\* Filed or furnished herewith. <br> + Indicates management contract or compensatory plan.

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

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| | | |
|:---|:---|:---|
|  | AIRJOULE TECHNOLOGIES CORPORATION | AIRJOULE TECHNOLOGIES CORPORATION |
| Date: November 14, 2025 | By: | /s/ Stephen S. Pang |
|  | Name: | Stephen S. Pang |
|  | Title: | Chief Financial Officer |

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