Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 355

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1A
Chunk 355
---
 R&D expense 
     1,287,402 
  
    Lease
    liabilities 
     40,611 
  
    Total
    deferred tax asset 
     5,622,725 

    Deferred
    tax liabilities 

    Outside
    basis in joint venture 
     86,839,767 
  
    Right-of-use
    asset 
     38,709 
  
    Other 
     296 
  
    Total
    deferred tax liability 
     86,878,772 
  
    Net
    deferred tax liabilities 
    $81,256,047 

As
of December 31, 2024, the Company has generated federal net operating losses of $11.0 million and state net operating losses of $11.0
million. The federal and state net operating loss carryforwards generated in tax year 2024 will never expire. Utilization of the net
operating loss carryforwards may be subject to an annual limitation according to Section 382 of the Internal Revenue Code of 1986
as amended, and similar provisions.

ASC
740 requires a valuation allowance to reduce the deferred tax assets reported if, based on the weight of the evidence, it is more likely
than not that some portion or all of the deferred tax assets will not be realized. After consideration of all of the evidence, the Company
has not recorded a valuation allowance against its deferred tax assets at December 31, 2024 because management has determined that it
is more likely than not that the Company recognize the benefits of its federal and state deferred tax assets.

The
Company recognizes interest accrued to unrecognized tax benefits and penalties as income tax expense. The Company accrued total penalties
and interest of $0 during the period ended December 31, 2024 and in total, as of December 31, 2024 has recognized penalties and interest
of $0.

The
Company files tax returns as prescribed by the tax laws of the jurisdictions in which they operate. In the normal course of business,
the Company is subject to examination by federal and state jurisdictions where applicable based on the statute of limitations that apply
in each jurisdiction. As of December 31, 2024, the open tax years are December 31, 2023, 2022, and 2021.

The
Company has no open tax audits with any taxing authority as of December 31, 2024.

Note 15
— SEGMENT INFORMATION

ASC
Topic 280