Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 177

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 177
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 The Company amortizes basis differences identified on a straight-line basis over the underlying assets’ estimated useful
lives when calculating the attributable earnings or losses, excluding the basis differences attributable to in-process research and development
and goodwill. If the Company is unable to attribute all of the basis differences to specific assets or liabilities of the investee, the
residual excess of the cost of the investment over the proportional fair value of the investee’s assets and liabilities is considered
to be equity method goodwill and is recognized within the equity investment balance. The Company subsequently records in the statements
of operations its share of income or loss of the other entity within other income (expense), which results in an increase or decrease
to the carrying value of the investment. If the share of losses exceeds the carrying value of the Company’s investment, the Company
will suspend recognizing additional losses and will continue to do so unless it commits to providing additional funding.

The Company evaluates its 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 the Company’s 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. There is no decline in value deemed to be other than temporary as of December 31, 2024. If
there are significant changes in the evidence considered in the Company’s evaluation there could be future impairments 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