Company: AIRJW
Filing Date: 2025-03-27
Form Type: S-1
Source: 0001013762-25-002897
Chunk: 178

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-27
Form: S-1
Chunk 178
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 model was selected as the valuation methodology for the Earnout Shares due to the path -dependentnature of applicable triggering events. Under ASC 718, such Earnout Shares are measured at fair value as of the grant date and expense is recognized over the applicable time -basedvesting period (the triggering event is a market condition and does not impact expense recognition). The Monte -Carlomodel requires the use of highly subjective and complex assumptions, estimates and judgements, including the current stock price, the volatility of the underlying stock, expected term the risk -freeinterest rate, the selection of comparable companies, and the probability of possible future events. Changes in any or all of these estimates and assumptions or the relationships between those assumptions impact our valuations as of each valuation date and may have a material impact on the valuation of share based compensation arrangements. An increase of 100 -basispoints in interest rates would not have a material impact on the Company’s share -basedcompensation. During the period from the date of the Business Combination through December 31, 2024, the Company did not record share -basedcompensation expense associated with these Earnout Shares as the performance conditions associated with these Earnout Shares were not deemed probable of achievement. Unrecognized share -basedcompensation expense for these Earnout Shares with a performance -basedvesting condition that was not deemed probable occurring as of December 31, 2024 was $ 6.6million which is expected to vest subject to the performance -basedvesting condition being satisfied or deemed probable. Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing the net income (loss), which is allocated based upon the proportionate amount of weighted average shares outstanding, by each class of stockholder’s stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including warrants, stock options, Earnout Shares, True Up Shares, Subject Vesting Shares and restricted stock units (“RSUs”), to the extent dilutive. Stock options and warrants with exercise prices greater than the average market price of the Company’s common stock for the period are excluded from the calculation of diluted net income (loss) per F-14

AIRJOULE TECHNOLOGIES CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 3 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

share as their inclusion would be anti-dilutive. Additionally, RSUs that vest based on service conditions