Company: AIRJW
Filing Date: 2025-05-05
Form Type: 424B3
Source: 0001213900-25-039770
Chunk: 189

Company: AirJoule Technologies Corp.
Filing Date: 2025-05-05
Form: 424B3
Chunk 189
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 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 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