Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 1713

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 11
Chunk 1713
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 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 and liabilities combined,
all measured at their fair value as of the acquisition date. Transaction costs, other than those associated with the issuance of debt
or equity securities, that the Company incurs in connection with a business combination are expensed as incurred.

Any contingent consideration is measured at fair value at the acquisition
date. A contingent consideration that does not meet all the criteria for equity classification is required to be recorded at its initial
fair value at the acquisition date, and on each balance sheet date thereafter. Changes in the estimated fair value of liability-classified
contingent considerations are recognized on the consolidated statements of operations in the period of change.

F-9

Equity Method Investment

In accordance with ASC 323, Investments - Equity Method and Joint
Ventures, investments in entities over which the Company does not have a controlling financial interest but has significant influence
are accounted for using the equity method, with the Company’s share of earnings or losses reported in earnings or losses from equity
method investments on the statements of operations. Under the equity method, the Company’s investments are initially measured and
recognized using the cost accumulation model following the guidance in ASC 805-50-30, Initial Measurement of Asset Acquisitions.
After initial recognition, the consolidated financial statements include the Company’s share of undistributed earnings or losses,
and impairment, if any, until the date on which significant influence ceases.

Under the equity method of accounting, the Company’s investment
is initially recorded at fair value on the consolidated balance sheets. Upon initial investment, the Company evaluates whether there are
basis differences between the carrying value and fair value of the Company’s proportionate share of the investee’s underlying
net assets. The Company amortizes basis differences identified on a straight-line basis over the underlying assets’ estimated useful
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