Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 489

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1C
Chunk 489
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 exercise of stock options and warrants and the issuance of common stock to PIPE investors.

During the year ended December 31, 2023, minimal cash was provided
by financing activities.

Contractual Obligations and Commitments

Royalties

In October 2021, we entered into a patent license agreement with
a third party whereby the third party granted us 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, we agreed to a minimum royalty amount of which
$0.3 million and $0.2 million was expensed for the year ended December 31, 2024 and 2023, respectively. At December 31, 2024 and December
31, 2023, $0.3 million and $0.2 million, respectively, was accrued in the accompanying consolidated balance sheets.

Future minimum royalties for 2025 and each year through the date the
patents expire are $0.3 million. 

Joint Venture Agreements

On October 27, 2021, we entered into a joint venture agreement with
CATL, pursuant to which we and CATL formed CAMT. We and CATL both own 50% of CAMT’s issued and outstanding shares. Under the
joint venture agreement, as revised, CAMT has the exclusive right to commercialize our AirJoule technology in Europe and Asia.

Pursuant to the Amended and Restated Joint Venture Agreement for CAMT,
entered into on September 29, 2023, our Predecessor and CATL US have each agreed to contribute $6.0 million to CAMT. Contributions will
be requested by CAMT once a business plan and operating budget is set by CAMT’s board of directors. No action to establish a business
plan or operating budget has occurred to date. Any additional financing beyond the initial $12.0 million (i.e., $6.0 million from each
of the Predecessor and CATL US) will be subject to the prior mutual agreement of the Predecessor and CATL US. CAMT is managed by a four-member
board of directors, with two directors (including the chairman) designated by CATL US and two directors (including the vice chairman)
designated by the Predecessor. In the event of an equal vote, the chairman may cast the deciding vote. Certain reserved matters, including
debt issuances exceeding