Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 151

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 151
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 other entity within other income/expense, which results in an increase or decrease to the
carrying value of our investment. If the share of losses exceeds the carrying value of our investment, we will suspend recognizing additional
losses and will continue to do so unless we commit to providing additional funding.

33

We evaluate our equity method investments for impairment whenever events
or changes in circumstances indicate that a decline in value has occurred that is other than temporary. Evidence considered in this evaluation
includes, but would not necessarily be limited to, the financial condition and near-term prospects of the investee, recent operating trends
and forecasted performance of the investee, market conditions in the geographic area or industry in which the investee operates and our
strategic plans for holding the investment in relation to the period of time expected for an anticipated recovery of its carrying value.
If the investment is determined to have a decline in value deemed to be other than temporary it is written down to estimated fair value.

Additionally, if an equity method investee recognizes a goodwill impairment
charge in its separate financial statements, we will recognize its share of the impairment in its financial statements in the same manner
in which it recognizes other earnings of the investee.

Warrants

We determine the accounting classification of warrants issued as either
liability or equity classified by first assessing whether the warrants meet liability classification in accordance with ASC 480-10, Accounting
for Certain Financial Instruments with Characteristics of both Liabilities and Equity, or ASC 480, then in accordance with ASC 815-40,
Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock, or ASC 815.
In order for a warrant to be classified in stockholders’ deficit, the warrant must be (i) indexed to our equity and (ii) meet
the conditions for equity classification.

If a warrant does not meet the conditions for stockholders’ deficit
classification, it is carried on the consolidated balance sheets as a warrant liability measured at fair value, with subsequent changes
in the fair value of the warrant recorded in other non-operating losses (gains) in the consolidated statements of operations. If
a warrant meets both conditions for equity classification, the warrant is initially recorded, at its relative fair value on the date of
issuance, in stockholders’ deficit in the consolidated balance sheets, and the amount initially recorded is not subsequently remeasured
at fair value.

Income Taxes

Prior to the Business Combination on