Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 416

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1B
Chunk 416
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 cash, cash equivalents
and restricted cash approximate their fair values due to the short-term nature of these instruments. As of December 31, 2024, there was
$20.4 million held in money market funds on the Company’s consolidated balance sheets. There were no cash equivalents as of December
31, 2023. The Company maintains cash balances at financial institutions that may exceed the Federal Deposit Insurance Corporation’s
insurance limits. The amounts over these insured limits as of December 31, 2024 and 2023 were $6.9 million and $0.1 million, respectively.
The Company mitigates this concentration of credit risk by monitoring the credit worthiness of the financial institutions. No losses have
been incurred to date on any deposits.

Business Combinations

The Company evaluates whether acquired net assets should be accounted
for as a business combination or an asset acquisition by first applying a screen test to determine whether substantially all of the fair
value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If so, the
transaction is accounted for as an asset acquisition. If not, the Company applies its judgement to determine whether the acquired net
assets meet the definition of a business by considering if the set includes an acquired input, process, and the ability to create outputs.

The Company accounts for business combinations using the acquisition
method when it has obtained control. The Company measures goodwill as the fair value of the consideration transferred, including the fair
value of any non-controlling interest recognized, less the net recognized amount of the identifiable assets acquired and liabilities combined,
all measured at their fair value as of the acquisition date. Transaction costs, other than those associated with the issuance of debt
or equity securities, that the Company incurs in connection with a business combination are expensed as incurred.

Any contingent consideration is measured at fair value at the acquisition
date. A contingent consideration that does not meet all the criteria for equity classification is required to be recorded at its initial
fair value at the acquisition date, and on each balance sheet date thereafter. Changes in the estimated fair value of liability-classified
contingent considerations are recognized on the consolidated statements of operations in the period of change.

F-9

Equity Method Investment

In accordance with ASC 323, Investments - Equity Method and Joint
Ventures, investments in entities over which the Company does not have a controlling financial interest but has significant influence
are accounted for using the equity method, with the Company’s share of earnings