Company: AIRJW
Filing Date: 2025-04-28
Form Type: S-1/A
Source: 0001213900-25-036124
Chunk: 83

Company: AirJoule Technologies Corp.
Filing Date: 2025-04-28
Form: S-1/A
Chunk 83
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 the statement of work with AirJoule, LLC, partially offset by an increase in personnel and prototype related costs as the Company continues to develop its products and technology. We expect that our research and development expenses will increase in future periods commensurate with the expected growth of our business.

46 Sales and Marketing Sales and marketing for the year ended December 31, 2024 was $0.2 million as compared to $0.5 million for the year ended December 31, 2023. In 2023, we incurred non -recurringexpenses related to business development that ended in July 2023. We expect that our sales and marketing expenses will increase in future periods commensurate with the expected growth of our business. Transaction Costs Incurred in Connection with Business Combination Transaction costs incurred in connection with the business combination include the non -cashrecognition of earnout liabilities of approximately $53.7 million and transaction costs incurred by our Predecessor of approximately $1.0 million, which were paid in 2024. Depreciation and Amortization Depreciation and amortization expense for the year ended December 31, 2024 and 2023 was $6,517 and $4,341, respectively. Interest Income Interest income was $0.9 million and $11,541 for the year ended December 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 -periodexcess 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 -periodexcess 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