Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 146

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 146
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 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

Management’s discussion and analysis of our financial condition
and results of operations is based on our consolidated financial statements, which are prepared in conformity with accounting principles
generally accepted in the United States of America. The preparation of these financial statements requires us to make certain estimates,
judgments, and assumptions that we believe are reasonable based upon the information available. These estimates and assumptions can be
subjective and complex and may affect the reported amounts of assets and liabilities, revenues, and expenses reported in those financial
statements. As a result, actual results could differ from such estimates and assumptions. Such changes to estimates could potentially
result in impacts that would be material to the consolidated financial statements.

While our significant accounting policies are described in more detail
in Note 3 to our consolidated financial statements appearing in Item 8 to this Annual Report on Form 10-K, we believe that the following
accounting policies were most critical to the judgments and estimates used in the preparation of our consolidated financial statements.

31

Share-Based Compensation

We account 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. We account for forfeitures when the forfeitures occur.

We estimate 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