Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 519

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1C
Chunk 519
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 of operations and financial condition would be materially and adversely affected.

F-8

Note 3 — SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES

Basis of Presentation

The 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