AirJoule Technologies Corp. Leases Disclosure
Note 8 — LEASES
As discussed in Note 9 – Related Party Transactions, the Company had a property lease with a related party which terminated on March 14, 2024. Lease expenses under this lease for the year ended December 31, 2024 and 2023 were $6,000 and $18,000, respectively.
Lease expense for the company’s operating lease was $31,977, for the year ended December 31, 2024. Total cash paid for the Company’s operating lease was $2,475 per month with a remaining term of 51 months and a discount rate of 4.69%. Lease expense is included in general and administrative costs on the accompanying consolidated statements of operations. This lease includes a renewal option at the election of the Company to renew or extend the lease. This optional period has not been considered in the determination of the ROU assets or lease liability associated with this lease as the Company did not consider it reasonably certain it would exercise the option.
At December 31, 2024, future minimum rental payments required under the lease agreement is as follows:
| Operating Lease | ||||
| 2025 | $ | 36,700 | ||
| 2026 | 39,370 | |||
| 2027 | 40,945 | |||
| 2028 | 42,583 | |||
| Thereafter | 10,715 | |||
| Total undiscounted lease payments | 170,313 | |||
| Less: effects of discounting | (16,084 | ) | ||
| Operating Lease Liability | $ | 154,229 | ||
| Classified as: | ||||
| Operating lease liability, current | $ | 30,227 | ||
| Operating lease liability, non-current | $ | 124,002 | ||
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About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.