Company: AIRJW
Filing Date: 2025-05-27
Form Type: POS AM
Source: 0001213900-25-047828
Chunk: 192

Company: AirJoule Technologies Corp.
Filing Date: 2025-05-27
Form: POS AM
Chunk 192
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 methods
are reviewed at each year-end, with the effect of any changes in estimates accounted for prospectively. All depreciation expenses are
included within depreciation and amortization in the consolidated statements of operations.

Leases

The Company determines if an arrangement is a
lease at inception and records the lease in our financial statements upon lease commencement, which is the date when the underlying asset
is made available for use by the lessor. The operating lease right-of-use asset (“ROU asset”) and short-term and long-term
lease liability are included on the face of the consolidated balance sheets.

The ROU asset represents the right to use an underlying
asset for the lease term and lease liability represents the Company’s obligation to make lease payments arising from the lease.
An operating lease ROU asset and liability are recognized at the commencement date based on the present value of lease payments over the
lease term. As typically the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based
on the information available at commencement date over the respective lease term in determining the present value of lease payments. The
Company has elected to utilize the practical expedient to account for lease and non-lease components together as a single combined lease
component. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the
Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company
has elected to not apply the recognition requirement of ASC 842, Leases of the FASB to leases with a term of 12 months
or less for all classes of assets.

Warrants

The Company determines the accounting classification
of warrants it issues as either liability or equity classified by first assessing whether the warrants meet the liability classification
in accordance with ASC 480-10, Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity
(“ASC 480”), then in accordance with ASC 815-40, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock (“ASC 815”). In order for a warrant to be classified in stockholders’
equity (deficit), the warrant must be (i) indexed to the Company’s equity and (ii) meet the conditions for equity classification.

If a warrant does not meet the conditions for
stockholders’ deficit classification, it is carried on the consolidated balance sheets as a warrant liability measured at fair value,
with