Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 770

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 3
Chunk 770
---

740 requires a valuation allowance to reduce the deferred tax assets reported if, based on the weight of the evidence, it is more likely
than not that some portion or all of the deferred tax assets will not be realized. After consideration of all of the evidence, the Company
has not recorded a valuation allowance against its deferred tax assets at December 31, 2024 because management has determined that it
is more likely than not that the Company recognize the benefits of its federal and state deferred tax assets.

The
Company recognizes interest accrued to unrecognized tax benefits and penalties as income tax expense. The Company accrued total penalties
and interest of $0 during the period ended December 31, 2024 and in total, as of December 31, 2024 has recognized penalties and interest
of $0.

The
Company files tax returns as prescribed by the tax laws of the jurisdictions in which they operate. In the normal course of business,
the Company is subject to examination by federal and state jurisdictions where applicable based on the statute of limitations that apply
in each jurisdiction. As of December 31, 2024, the open tax years are December 31, 2023, 2022, and 2021.

The
Company has no open tax audits with any taxing authority as of December 31, 2024.

Note 15
— SEGMENT INFORMATION

ASC
Topic 280: Segment Reporting establishes standards for companies to report in their financial statement information about operating
segments, products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise
for which separate financial information is available that is regularly evaluated by the Company’s chief operating decision maker,
or group, in deciding how to allocate resources and assess performance. Accordingly, management has determined that the Company only
has one operating segment and the accounting policies applied to the operating segment are the same as those described in Note 3 –
Summary of Significant Accounting Policies.

The Company’s chief operating decision maker (“CODM”)
has been identified as the senior executive committee that includes the Chief Executive Officer and Chief Financial Officer. They review
the operating results for the Company as a whole to make decisions about allocating resources and assessing financial performance. The
measure of segment performance is based on consolidated net income (loss) as reported on the statement of operations. The measure of segment
assets is reported on the consolidated balance sheet as total assets.

F-32

The following table reconciles segment profit or loss to consolidated
net income