Company: AIRJW
Filing Date: 2025-05-05
Form Type: 424B3
Source: 0001213900-25-039770
Chunk: 187

Company: AirJoule Technologies Corp.
Filing Date: 2025-05-05
Form: 424B3
Chunk 187
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 accompanying 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 consolidated financial statements have been prepared assuming the Company will continue as a going concern.

Principles of Consolidation

Our 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 consolidated statements of operations. See further discussion of the Company’s unconsolidated
affiliate in Note 5 — Equity Method Investment.

Use of Estimates

The preparation of 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.

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, income taxes and estimates relating
to leases. 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 December 31,
2024, there was $20.4 million held in money market funds on the Company’s consolidated balance sheets. There were no cash equivalents
as of