Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 178

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 178
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, 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 lease and non-lease components together as a single combined lease component. The Company’s
lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option.
Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has elected to not apply the
recognition requirement of ASC 842, Leases of the FASB to leases with a term of 12 months or less for all classes of
assets.

Warrants

The Company determines the accounting classification of warrants it
issues as either liability or equity classified by first assessing whether the warrants meet the liability classification in accordance
with ASC 480-