Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 1139

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 7
Chunk 1139
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 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, 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