Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 141

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 141
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31, 2024 and 2023, respectively. This is a result of the increase in our cash balance.

Gain on Contribution to AirJoule, LLC

An equity method investment received in exchange for noncash consideration
is measured at fair value. As a result, for the year ended December 31, 2024, we recognized a gain of $333.5 million on the contribution
to AirJoule, LLC for the difference between our zero carrying value and the fair value of the perpetual license to intellectual property
that we transferred to AirJoule, LLC.

We determined the fair value of the intellectual property by applying
the multi-period excess earnings method, which involved the use of significant estimates and assumptions related to forecasted revenue
growth rate and customer attrition rate, Level 3 measurements. Valuation specialists were used to develop and evaluate the appropriateness
of the multi-period excess earnings method, our discount rates, attrition rate and fair value estimates using its cash flow projections.

Equity Loss from Investment in AirJoule, LLC

As previously noted, on January 25, 2024, AirJoule Technologies, LLC
entered into a joint venture with GE Ventures LLC, the AirJoule JV which closed on March 4, 2024. For the year ended December 31, 2024,
we recognized a loss of $5.3 million from our 50% equity investment in the AirJoule JV.

Change in Fair Value of Earnout Shares Liability

Upon consummation of the Business Combination, we expensed $53.7 million
in Earnout Shares (as described in “-Earnout Shares Liability”) liability. The change in fair value of $29.2 million
for the year ended December 31, 2024 is due to a decrease in the estimated fair value of the liability and is recognized as a gain in
the consolidated statements of operations. The fair value of the liability decreased primarily due to changes in the valuation inputs,
mainly a decrease in the stock price, a change in the timing of future cash flows and an increase in the volatility.

Change in Fair Value of True Up Shares Liability

Upon consummation of the Business Combination, we assumed $0.6 million
in earnout true up shares liability. The change in fair value of $1.6 million for the year ended December 31, 2024 is due to a decrease
in our stock price. The increase