Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 100

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 100
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 distribution networks. Our AirJoule
technology produces dehumidified air at a fraction of the energy required for conventional desiccant-based systems, which can yield significant
operating expense savings for customers that require dehumidified air in their operations.

HVAC

The production and sale of HVAC equipment is highly competitive. HVAC
manufacturers primarily compete on the basis of price, depth of product line, product efficiency and reliability, product availability
and warranty coverage. The largest companies in the HVAC market include Carrier, Trane Technologies plc, Lennox International, Inc., Mitsubishi
Electric Corporation and Rheem Manufacturing Company, among others. A number of factors affect competition in the HVAC market, including
the development and application of new technologies and an increasing emphasis on the development of more efficient HVAC products.

In addition, there are several startups focused on disrupting the air
conditioning industry by introducing innovative new products that attempt to compete with and displace the large incumbent companies.
These startups include Blue Frontier, Mojave Systems, and Transaera.

While AirJoule’s superior energy-efficiency for dehumidification
has the potential to transform air conditioning, our strategy does not involve competing directly against the large incumbents. Rather,
we have chosen to partner with Carrier and work with them to integrate AirJoule into their air conditioning products. We intend to be
a tier-1 supplier to Carrier for AirJoule’s key component – the sorbent-coated contactors. We also intend to license the designs
for the other proprietary components to Carrier’s existing suppliers.

Seasonality

AirJoule captures moisture from the air, and variations in ambient
humidity levels can occur due to seasonal weather patterns. While certain geographic regions may experience fluctuations in water vapor
content throughout the year, we do not anticipate these seasonal shifts to materially impact our future sales or operations. The industries
we are targeting – including data centers, advanced manufacturing, the military, and HVAC – maintain consistent, year-round
demand for reliable humidity control and water availability. Additionally, our global footprint and ability to supply multiple markets
help mitigate any localized seasonality effects. As a result, we expect overall demand and performance to remain relatively stable, despite
potential seasonal variations in moisture levels.

Government Regulation

Our business activities are subject to various laws, rules, and regulations
across multiple jurisdictions. Compliance with these laws, rules, and regulations has not had a material effect upon our capital expenditures,
results of operations, or competitive position,