Company: AIRJW
Filing Date: 2025-04-28
Form Type: S-1/A
Source: 0001213900-25-036124
Chunk: 216

Company: AirJoule Technologies Corp.
Filing Date: 2025-04-28
Form: S-1/A
Chunk 216
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ing when the Closing Share Price equals or exceeds $ (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like).

F-33

AIRJOULE TECHNOLOGIES CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 12 — FAIR VALUE MEASUREMENTS (cont.)

The following table presents the changes in the fair value of the Subject Vesting Shares liability:

| Subject Vesting Shares liability as of December 31, 2023 |     | Year Ended   
 December 31, 
 2024         |          — |   |
|:---------------------------------------------------------|:----|:-------------|-----------:|:--|
| Assumed in the Business Combination                      |     |              | 11,792,000 |   |
| Change in fair value                                     |     |              | (3,973,000 | ) |
| Balance as of December 31, 2024                          |     | $            |  7,819,000 |   |

The estimated fair value of the Subject Vesting Share liability was determined utilizing a Monte Carlo simulation, with underlying forecast mathematics based on geometric Brownian motion in a risk-neutral framework. The calculation of the value of the Subject Vesting Shares considered the $ and $ vesting conditions in addition to the vesting related to the Earnout Milestone Amount.

Items Measured at Fair Value on a Nonrecurring Basis

In addition to items that are measured at fair value on a recurring basis, the Company measures certain assets and liabilities at fair value on a nonrecurring basis, which are not included in the table above. As these nonrecurring fair value measurements are generally determined using unobservable inputs, these fair value measurements are classified within Level 3 of the fair value hierarchy. For further information see Note 5 — Equity Method Investment.

Note 13 — COMMITMENTS AND CONTINGENCIES

The Company is involved in various legal matters arising in the normal course of business. In the opinion of the Company’s management and legal counsel, the amount of losses that may be sustained, if any, would not have a material effect on the financial position and results of operations of the Company.

Risks and Uncertainties

The Company, as an early-stage business without any current operations, product sales or revenue, has historically been dependent upon the sourcing of external capital to fund its overhead and product development costs. This is a typical situation for any early-stage company without product sales to be in.

License Agreement

In October