Company: AIRJW
Filing Date: 2025-05-27
Form Type: POS AM
Source: 0001213900-25-047828
Chunk: 145

Company: AirJoule Technologies Corp.
Filing Date: 2025-05-27
Form: POS AM
Chunk 145
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 benefits as income tax expense. Management has evaluated the Company’s tax positions, including its previous status as a pass-through entity for federal and state tax purposes, and has determined that the Company has taken no uncertain tax positions that require adjustment to the condensed consolidated financial statements. The Company’s reserve related to uncertain tax positions was zeroas of March 31, 2025 and December 31, 2024. There were nounrecognized tax benefits, and no amounts accrued for interest and penalties as of March 31, 2025 and December 31, 2024. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviations from its position. Research and Development Cost The Company accounts for research and development cost (“R&D”) in accordance with FASB ASC 730, Research and Development. R&D represents costs incurred in performing research aimed at the discovery of new knowledge and the advancement of techniques to bring significant improvements to products and processes. Costs incurred in developing a product include consulting, engineering, construction and costs incurred to build prototypes. F-11

Fair Value of Financial Instruments

Fair value is the price that would be received to sell an asset, or the amount paid to transfer a liability in an orderly transaction between market participants at the measurement date. There is a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The Company classifies fair value balances based on the observability of those inputs. The three levels of the fair value hierarchy are as follows:

| Level 1 — | Inputs based on unadjusted quoted market prices in active markets for identical assets                                                     
 or liabilities that the Company has the ability to access at the measurement date.                                                         |
| Level 2 — | Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar                                          
 assets or liabilities in active markets or quoted prices for identical or similar instruments in markets that are not active or for        
 which all significant inputs are observable or can be corroborated by observable market data.                                              |
| Level 3 — | Inputs reflect management’s best estimate of what market participants would use in pricing                                                 
 the asset or liability at the measurement date. The inputs are both unobservable for the asset and liability in the market and significant 
 to the overall fair value measurement.                                                                                                     |

In