Company: AIRJW
Filing Date: 2025-05-05
Form Type: 424B3
Source: 0001213900-25-039770
Chunk: 231

Company: AirJoule Technologies Corp.
Filing Date: 2025-05-05
Form: 424B3
Chunk 231
---

In addition to items that are measured at fair
value on a recurring basis, the Company measures certain assets and liabilities at fair value on a nonrecurring basis, which are not included
in the table above. As these nonrecurring fair value measurements are generally determined using unobservable inputs, these fair value
measurements are classified within Level 3 of the fair value hierarchy. For further information see Note 5 — Equity Method Investment.

Note 13 — COMMITMENTS AND CONTINGENCIES

The Company is involved in various legal matters
arising in the normal course of business. In the opinion of the Company’s management and legal counsel, the amount of losses that
may be sustained, if any, would not have a material effect on the financial position and results of operations of the Company.

Risks and Uncertainties

The Company, as an early-stage business without
any current operations, product sales or revenue, has historically been dependent upon the sourcing of external capital to fund its overhead
and product development costs. This is a typical situation for any early-stage company without product sales to be in.

License Agreement

In October 2021, the Company entered into
a patent license agreement with a third party whereby the third party granted the Company rights to use certain of their patents in exchange
for an upfront payment and royalties based on a percentage of net sales until such patents expire. In connection with this, the Company
agreed to a minimum royalty amount of which $0.3 million and $0.2 million was accrued by the Company in the accompanying consolidated
balance sheets as of December 31, 2024 and December 31, 2023, respectively.

Future minimum royalties are as follows as of
December 31, 2024:

| 2025 and each year through the date the patents expire |     | 300,000 |

Joint Venture Agreement

On October 27, 2021, Legacy Montana entered
into a joint venture with CATL US Inc. (“CATL US”), an affiliate of CATL, pursuant to which we and CATL US formed CAMT Climate
Solutions Ltd., a limited liability company organized under the laws of Hong Kong (“CAMT”). Legacy Montana and CATL US
both own 50% of CAMT’s issued and outstanding shares. CAMT is managed by a four-member board of directors, with two directors designated
by CATL and two directors designated by us. Under the joint venture agreement, as revised, CAMT has the exclusive