Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 276

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1A
Chunk 276
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. 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 in the estimated fair value of the liability was recognized as a loss in the consolidated statements
of operations.

Change in Fair Value of Subject Vesting Shares
Liability

Upon consummation of the Business Combination, we assumed $11.8 million
for the subject vesting shares liability. The change in fair value of income of $4.0 million during the year ended December 31, 2024 is
due to a decrease in the estimated fair value of the liability 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.

29

Gain on Settlement of Legal Fees

During the year ended December 31,