Company: AIRJW
Filing Date: 2025-05-05
Form Type: 424B3
Source: 0001213900-25-039770
Chunk: 86

Company: AirJoule Technologies Corp.
Filing Date: 2025-05-05
Form: 424B3
Chunk 86
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 and prototype related costs as the Company continues to develop its products and technology. We expect that our
research and development expenses will increase in future periods commensurate with the expected growth of our business.

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Sales and Marketing

Sales and marketing for the year ended December 31,
2024 was $0.2 million as compared to $0.5 million for the year ended December 31, 2023. In 2023, we incurred non-recurring
expenses related to business development that ended in July 2023. We expect that our sales and marketing expenses will increase in
future periods commensurate with the expected growth of our business.

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 our Predecessor of approximately $1.0 million, which were paid in 2024.

Depreciation and Amortization

Depreciation and amortization expense for the
year ended December 31, 2024 and 2023 was $6,517 and $4,341, respectively.

Interest Income

Interest income was $0.9 million and $11,541
for the year ended December 31, 2024 and 2023, respectively. This is 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, for the year ended December 31, 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.

Equity Loss from Investment in AirJoule, LLC

As previously noted, on January 25, 2024,
AirJoule Technologies