Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 311

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1A
Chunk 311
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 estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of expenses during the
reporting period.

Some of the more significant estimates include fair values of liabilities associated with the Earnout Shares, True Up Shares and Subject Vesting Shares (as such terms
are defined in Note 4 – Recapitalization), fair value of the investment in the AirJoule JV, income taxes and estimates relating
to leases. Due to the uncertainty involved in making estimates, actual results could differ from those estimates, which could have a material
effect on the financial condition and results of operations in future periods.

Cash, Cash Equivalents and Restricted Cash
and Concentration of Credit Risk

The Company considers all highly liquid investments with a weighted
average maturity of 90 days or less at the time of purchase to be cash equivalents. The carrying values of cash, cash equivalents
and restricted cash approximate their fair values due to the short-term nature of these instruments. As of December 31, 2024, there was
$20.4 million held in money market funds on the Company’s consolidated balance sheets. There were no cash equivalents as of December
31, 2023. The Company maintains cash balances at financial institutions that may exceed the Federal Deposit Insurance Corporation’s
insurance limits. The amounts over these insured limits as of December 31, 2024 and 2023 were $6.9 million and $0.1 million, respectively.
The Company mitigates this concentration of credit risk by monitoring the credit worthiness of the financial institutions. No losses have
been incurred to date on any deposits.

Business Combinations

The Company evaluates whether acquired net assets should be accounted
for as a business combination or an asset acquisition by first applying a screen test to determine whether substantially all of the fair
value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If so, the
transaction is accounted for as an asset acquisition. If not, the Company applies its judgement to determine whether the acquired net
assets meet the definition of a business by considering if the set includes an acquired input, process, and the ability to create outputs.

The Company accounts for business combinations using the acquisition
method when it has obtained control. The Company measures goodwill as the fair value of the consideration transferred, including the fair
value of any non-controlling interest recognized, less the net recognized amount of the identifiable assets acquired