Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 413

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1B
Chunk 413
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DB, accompanied by a recapitalization.

Furthermore, the historical financial statements of Legacy Montana
became the historical financial statements of the Company upon the consummation of the Merger. As a result, the consolidated financial
statements reflect (i) the historical operating results of Legacy Montana prior to the Business Combination; (ii) the combined results
of XPDB and Legacy Montana following the Closing; (iii) the assets and liabilities of Legacy Montana at their historical cost and (iv)
Legacy Montana’s equity structure for all periods presented, as affected by the recapitalization presentation after completion of
the Business Combination. See Note 4 - Recapitalization for further details of the Business Combination.

F-7

On January 25, 2024, Legacy Montana entered into a joint venture formation
framework agreement (the “Framework Agreement”) with GE Ventures LLC (“GE Vernova”), a Delaware limited liability
company and, solely for the purposes specified therein, GE Vernova LLC, a Delaware limited liability company, pursuant to which Legacy
Montana and GE Vernova agreed, subject to the terms and conditions of the Framework Agreement, including certain closing conditions specified
therein, to form a joint venture (the “AirJoule JV”) in which Legacy Montana and GE Vernova will each hold a 50% interest.
The joint venture transaction closed on March 4, 2024. AirJoule, LLC, the entity formed under this agreement, is included under the equity
method of accounting within these financial statements. See Note 5 - Equity Method Investment for further details.

Note 2 — LIQUIDITY AND CAPITAL
RESOURCES

The Company’s primary sources of liquidity have been cash contributions
from founders or equity capital raised from other investors. As of December 31, 2024, the Company had retained earnings of $198.5 million
and $27.4 million of working capital including $28.0 million in cash, cash equivalents and restricted cash. The Company had restricted
cash of approximately $30,000 which is included in cash, cash equivalents and restricted cash on the consolidated balance sheets and represents
cash deposited by the Company into a separate account and designated as collateral for a standby letter of credit in the same amount in
accordance with a contractual agreement.

The Company assesses its liquidity in terms of its ability to generate
adequate amounts of cash to meet current and future needs. Its expected primary uses of cash on a short and long-term basis are for