Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 2155

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 16
Chunk 2155
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 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 2021, the Company entered into a patent license agreement with a third party whereby the third party granted the Company
rights to use certain of their patents in exchange for an upfront payment and royalties based on a percentage of net sales until such
patents expire. In connection with this, the Company agreed to a minimum royalty amount of which $0.3 million and $0.2 million was accrued
by the Company in the accompanying consolidated balance sheets as of December 31, 2024 and December 31, 2023, respectively.

Future
minimum royalties are as follows as of December 31, 2024:

    2025 and each year through the date
    the patents expire

    300,000

Joint
Venture Agreement

On October 27, 2021, Legacy Montana entered into a joint venture with
CATL US Inc. (“CATL US”), an affiliate of CATL, pursuant to which we and CATL US formed CAMT Climate Solutions Ltd., a limited
liability company organized under the laws of Hong Kong (“CAMT”). Legacy Montana and CATL US both own 50% of CAMT’s
issued and outstanding shares. CAMT is managed by a four-member board of directors, with two directors designated by CATL and two directors
designated by us. Under the joint venture agreement, as revised, CAMT has the exclusive right to commercialize our AirJoule technology
in Europe and Asia.

Pursuant to the Amended and Restated Joint Venture Agreement for CAMT,
entered into on September 29, 2023, Legacy Montana and CATL US have each agreed to contribute $6.0 million to CAMT. Contributions will
be requested by CAMT once a business plan and operating budget is set by CAMT’s board of directors. No action to establish a business
plan or operating budget has occurred to date. Any additional financing beyond the initial $12.0 million (i.e., $6.0 million from each