Company: AIRJW
Filing Date: 2025-05-27
Form Type: POS AM
Source: 0001213900-25-047828
Chunk: 193

Company: AirJoule Technologies Corp.
Filing Date: 2025-05-27
Form: POS AM
Chunk 193
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 subsequent changes in the fair value of the warrant recorded in other non-operating gains (losses) in the consolidated statements
of operations. If a warrant meets both conditions for equity classification, the warrant is initially recorded, at its relative fair value
on the date of issuance, in stockholders’ equity (deficit) in the consolidated balance sheets, and the amount initially recorded
is not subsequently remeasured at fair value.

F-44 AIRJOULE TECHNOLOGIES CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 3 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

Income Taxes

Prior to the Business Combination on March 14,
2024, the Company was a limited liability company and treated as a partnership for income tax purpose. As a partnership, the Company was
not directly liable for federal income taxes. As of the date of the Business Combination, the operations of the Company 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 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