Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 1393

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 9
Chunk 1393
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 December 31, 2024 and 2023. The Company is currently not aware of any issues under review that
could result in significant payments, accruals or material deviations from its position.

Research and Development Cost

The Company accounts for research and development cost (“R&D”)
in accordance with FASB ASC 730, Research and Development. R&D represents costs incurred in performing research aimed at the
discovery of new knowledge and the advancement of techniques to bring significant improvements to products and processes. Costs incurred
in developing a product include consulting, engineering, construction and costs incurred to build prototypes.

F-11

Fair Value of Financial Instruments

Fair value is the price that would be received to sell an asset or
the amount paid to transfer a liability in an orderly transaction between market participants at the measurement date. There is a fair
value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to quoted prices in active
markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement).
The Company classifies fair value balances based on the observability of those inputs. The three levels of the fair value hierarchy are
as follows:

    Level 1 —
    Inputs based on unadjusted quoted market prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

    Level 2 — 
    Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar instruments in markets that are not active or for which all significant inputs are observable or can be corroborated by observable market data.

    Level 3 —
    Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are both unobservable for the asset and liability in the market and significant to the overall fair value measurement.

In some circumstances, the inputs used to measure fair value might
be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is categorized in its
entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement. The Company establishes
the fair value of its assets and liabilities using the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date and establishes a fair value hierarchy