Company: AIRJW
Filing Date: 2025-05-05
Form Type: 424B3
Source: 0001213900-25-039770
Chunk: 196

Company: AirJoule Technologies Corp.
Filing Date: 2025-05-05
Form: 424B3
Chunk 196
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les valuation model. The Black-Scholes model
requires the use of highly subjective and complex assumptions, including the stock option’s expected term, the price volatility
of the underlying stock, the applicable risk-free interest rate and the expected dividend yield of the underlying common stock, as well
as an estimate of the fair value of the common stock underlying the stock option.

The Company estimates the fair value of Earnout
Shares awards to employees, which are considered compensatory awards and accounted for under ASC 718 using the Monte-Carlo simulation
model.The Monte-Carlo simulation model was selected as the valuation methodology for the Earnout Shares due to the path-dependent
nature 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-based vesting period (the triggering event is a market condition and does not impact expense recognition).
The Monte-Carlo model 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-free interest 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-basis points in interest rates would not have a material impact on the Company’s share-based compensation. During
the period from the date of the Business Combination through December 31, 2024, the Company did not record share-based compensation
expense associated with these Earnout Shares as the performance conditions associated with these Earnout Shares were not deemed
probable of achievement. Unrecognized share-based compensation expense for these Earnout Shares with a performance-based vesting
condition that was not deemed probable occurring as of December 31, 2024 was $6.6 million which is expected to vest subject
to the performance-based vesting condition being satisfied or deemed probable.

<div align='center'>F-14

AIRJOULE TECHNOLOGIES CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS</div>

Note 3 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

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