Company: AIRJW
Filing Date: 2025-05-05
Form Type: 424B3
Source: 0001213900-25-039770
Chunk: 88

Company: AirJoule Technologies Corp.
Filing Date: 2025-05-05
Form: 424B3
Chunk 88
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4 and 2023, respectively. During the year ended December 31, 2024, our contribution of
a perpetual license to AirJoule, LLC’s intellectual property was measured at fair value and 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. The deferred tax 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

Our primary sources of liquidity have been cash
from contributions from founders or equity capital raised from other investors. We had retained earnings of $198.5 million as of
December 31, 2024. As of December 31, 2024, we had $27.4 million of working capital including $28.0 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.

With the consummation of the Business Combination
and Subscription Agreements (as described herein), we received gross proceeds of approximately $43.4 million in the first quarter
of 2024 and approximately $6.0 million in May 2024. Additionally, in June 2024, we received gross proceeds of approximately
$12.4 million from existing and new investors for 1,238,500 million shares of Class A Common Stock pursuant the subscription
agreement entered into on June 5, 2024.

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