Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 522

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1C
Chunk 522
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ments that could
materially adversely impact the Company’s equity method investments.

Additionally, if an equity method investee recognizes a goodwill impairment
charge in its separate financial statements, the Company will recognize its share of the impairment in its financial statements in the
same manner in which it recognizes other earnings of the investee. No impairment in the Company’s equity method investment was identified
as of December 31, 2024.

Property and Equipment

Property and equipment is carried at cost less accumulated depreciation
and includes expenditures that substantially increase the useful lives of existing property and equipment. Maintenance, repairs and minor
renovations are charged to expense as incurred. When property and equipment is retired or otherwise disposed of, the related costs and
accumulated depreciation are removed from their respective accounts, and any difference between the sale proceeds and the carrying amount
of the asset is recognized as a gain or loss on disposal in the consolidated statements of operations. 

Depreciation is computed using the straight-line method over the estimated
useful lives of the various classes of depreciable assets. The lives used in computing depreciation for significant asset classes are
as follow: 

      Estimated
useful
lives  Machinery and Equipment   3 years
 Vehicles   3 years 

The estimated useful lives and depreciation methods are reviewed at
each year-end, with the effect of any changes in estimates accounted for prospectively. All depreciation expenses are included within
depreciation and amortization in the consolidated statements of operations.

F-10

Leases

The Company determines if an arrangement is a lease at inception and
records the lease in our financial statements upon lease commencement, which is the date when the underlying asset is made available for
use by the lessor. The operating lease right-of-use asset (“ROU asset”) and short-term and long-term lease liability are included
on the face of the consolidated balance sheets.

The ROU asset represents the right to use an underlying asset for the
lease term and lease liability represents the Company’s obligation to make lease payments arising from the lease. An operating lease
ROU asset and liability are recognized at the commencement date based on the present value of lease payments over the lease term. As typically
the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available
at commencement date over the respective lease term in determining the present value of lease payments. The Company has elected to utilize
the practical expedient to account for