Company: AIRJW
Filing Date: 2025-05-05
Form Type: 424B3
Source: 0001213900-25-039770
Chunk: 96

Company: AirJoule Technologies Corp.
Filing Date: 2025-05-05
Form: 424B3
Chunk 96
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, reflect new
information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts
recognized at that date.

Equity Method Investment

In accordance with ASC 323, Investments — Equity Method and Joint Ventures, investments in entities over which we do not have a controlling financial interest but has significant
influence are accounted for using the equity method, with our share of earnings or losses reported in earnings or losses from equity method
investments on the statements of operations.

Under the equity method of accounting, our investment
is initially recorded at fair value on the consolidated balance sheets. Upon initial investment, we evaluate whether there are basis differences
between the carrying value and fair value of our proportionate share of the investee’s underlying net assets. Typically, we amortize
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 we are 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, which is tracked separately within our memo accounts. We subsequently record in the statements of
operations our 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 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.

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