Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 330

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1A
Chunk 330
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 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 a nonconsolidated entity. In addition to $10.0 million in cash, 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 on the consolidated balance sheet. As it relates to the contributed perpetual license, the Company
followed the following 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