Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 152

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 152
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 March 14, 2024, we were a limited
liability company, or LLC, and treated as a partnership for income tax purpose. As a Partnership, we were not directly liable for federal
income taxes. As of the date of the Business Combination, the operations of the Company ceased to be taxed as a partnership resulting
in a change in tax status for federal and state income tax purposes.

We follow the asset and liability method of accounting for income taxes
under ASC 740, Income Taxes, or ASC 740. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply
to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax
assets and liabilities of a change in tax rates is recognized in income in the period that is included in the enactment date. Valuation
allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

ASC 740 prescribes a recognition threshold and a measurement attribute
for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits
to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. We recognize accrued
interest and penalties related to unrecognized tax benefits as income tax expense. Management has evaluated our tax positions, including
our Predecessor’s previous status as a pass-through entity for federal and state tax purposes, and has determined that we have taken
no uncertain tax positions that require adjustment to the consolidated financial statements. Our reserves related to uncertain tax positions
was zero as of December 31, 2024 and 2023. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as
of December 31, 2024 and 2023. We are currently not aware of any issues under review that could result in significant payments, accruals
or material deviation from its position.

Recent Accounting Pronouncements

A discussion of recently issued accounting standards applicable to
the Company is described in Note 3 – Summary of Significant Accounting Policies, in the Notes to Financial Statements
contained elsewhere in this Current Report on Form 10-K.

Off Balance Sheet Arrangements

We did not have any off-balance sheet arrangements as of December 31,
2024.

34

Emerging Growth Company Status

We are an emerging growth company as defined in the JOBS Act. The JOBS
Act permits companies with emerging growth company status