Company: AIRJW
Filing Date: 2025-05-05
Form Type: 424B3
Source: 0001213900-25-039770
Chunk: 192

Company: AirJoule Technologies Corp.
Filing Date: 2025-05-05
Form: 424B3
Chunk 192
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 ceased to be taxed
as a partnership resulting in a change in tax status for federal and state income tax purposes.

The Company follows the asset and liability method
of accounting for income taxes under ASC 740, Income Taxes (“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. The Company recognizes accrued interest and penalties related to unrecognized tax 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 consolidated financial statements.
The Company’s reserve 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. 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.

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)