Company: AIRJW
Filing Date: 2025-05-05
Form Type: 424B3
Source: 0001213900-25-039770
Chunk: 95

Company: AirJoule Technologies Corp.
Filing Date: 2025-05-05
Form: 424B3
Chunk 95
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 whether acquired net assets should
be accounted for as a business combination or an asset acquisition by first applying a screen test to determine whether substantially
all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets.
If so, the transaction is accounted for as an asset acquisition. If not, we apply judgement to determine whether the acquired net assets
meet the definition of a business by considering if the set includes an acquired input, process, and the ability to create outputs.

We account for business combinations using
the acquisition method of accounting whereby the identifiable assets and liabilities of the acquired business, including contingent consideration,
as well as any non-controlling interest in the acquired business, are recorded at their estimated fair values as of the date that we obtain
control of the acquired business. We measure goodwill as the fair value of the consideration transferred including the fair value
of any non-controlling interest recognized, less the net recognized amount of the identifiable assets and liabilities combined, all measured
at their fair value as of the acquisition date. Transaction costs, other than those associated with the issuance of debt or equity securities,
that we incur in connection with a business combination are expensed as incurred.

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Any contingent consideration is measured at fair
value at the acquisition date. For contingent consideration that does not meet all the criteria for equity classification, such contingent
consideration is required to be recorded at its initial fair value at the acquisition date, and on each balance sheet date thereafter.
Changes in the estimated fair value of liability-classified contingent consideration are recognized on the consolidated statements of
operations in the period of change.

Several valuation methods may be used to determine
the fair value of assets acquired and liabilities assumed. For intangible assets, we typically use a variation of the income approach,
whereby a forecast of future cash flows attributable to the asset is discounted to present value using a risk-adjusted discount rate.
Some of the more significant estimates and assumptions inherent in the income approach include the amount and timing of projected future
cash flows, the discount rate selected to measure the risks inherent in the future cash flows, and the assessment of the asset’s
expected useful life. When the initial accounting for a business combination has not been finalized by the end of the reporting period
in which the transaction occurs, we report provisional amounts. Provisional amounts are adjusted during the measurement period, which
does not exceed one year from the acquisition date. These adjustments, or recognition of additional assets or liabilities