Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 734

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 3
Chunk 734
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arlo model
requires the use of highly subjective and complex assumptions, estimates and judgements, including the current stock price, the volatility
of the underlying stock, expected term the risk-free interest rate, the selection of comparable companies, and the probability of possible
future events. Changes in any or all of these estimates and assumptions or the relationships between those assumptions impact our valuations
as of each valuation date and may have a material impact on the valuation of share based compensation arrangements. An increase of 100-basis
points in interest rates would not have a material impact on the Company’s share-based compensation. During the period from the
date of the Business Combination through December 31, 2024, the Company did not record share-based compensation expense associated with
these Earnout Shares as the performance conditions associated with these Earnout Shares were not deemed probable of achievement.
Unrecognized share-based compensation expense for these Earnout Shares with a performance-based vesting condition that was not deemed
probable occurring as of December 31, 2024 was $6.6 million which is expected to vest subject to the performance-based vesting condition
being satisfied or deemed probable.

Net Income (Loss) Per Share

Basic net income (loss) per share is computed by dividing the net income
(loss), which is allocated based upon the proportionate amount of weighted average shares outstanding, by each class of stockholder’s
stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock,
including warrants, stock options, Earnout Shares, True Up Shares, Subject Vesting Shares and restricted stock units (“RSUs”),
to the extent dilutive. Stock options and warrants with exercise prices greater than the average market price of the Company’s common
stock for the period are excluded from the calculation of diluted net income (loss) per share as their inclusion would be anti-dilutive.
Additionally, RSUs that vest based on service conditions that have not been achieved as of the end of the period are not included in the
computation of basic or diluted earnings per share. Finally, Earnout Shares, True Up Shares and Subject Vesting shares are not included
in the calculation of dilutive net income (loss) per share if their conditions are not deemed satisfied for issuance as of the reported
period. For the year ended December 31, 2024, the warrants, Earnout Shares, Subject Vesting Shares and RSUs were not included in the