Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 237

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1A
Chunk 237
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Item 1A. Risk Factors

Risks Related to Our Business, Our Technology and Our Industry

We have incurred significant losses since inception, we expect
to incur losses in the future, and we may not be able to achieve or maintain profitability.

We are an early-stage water harvesting technology company with a history
of losses. We have incurred a net income (loss) of $215.7 million and $(11.4) million for the years ended December 31, 2024 and 2023,
respectively. Although our predecessor entity was established in 2018, we did not develop our first prototype of the AirJoule unit until
June 2021, and we have not yet begun commercializing our AirJoule units. We expect that we will continue to incur losses in future periods
as we:

●design, develop, market, commercialize and begin to sell AirJoule units;

●continue to utilize and develop potential new relationships with third-party partners for supply and manufacturing;

●build up inventories of parts and components for AirJoule units;

●expand our design, development, installation and servicing capabilities;

●further develop our proprietary technology;

●develop our distribution network;

●increase our general and administrative functions to support our growing operations; and

●expand our production and testing facilities to enhance our efficiency and capabilities for assembly of AirJoule units.

10

Because we will incur the costs and expenses from these efforts before
we receive any incremental revenues with respect thereto, our losses in future periods could be significant. In addition, we may find
that these efforts are more expensive than we currently anticipate or that these efforts may not result in additional revenues, which
could further increase our losses.

Our ability to become profitable in the future will require us to complete
the design and development of our AirJoule units and to begin commercializing the product and related services to customers at prices
needed to achieve positive gross margins. We may need to sell our products at a loss or discounted prices in the short term to win initial
customer orders and gain the confidence of potential customers. If we are unable to efficiently design, produce, market, sell, distribute
and service our products, our margins, profitability, and long-term prospects will be materially and adversely affected.

We have not yet commenced commercial activities and have a limited
operating history, which may make it difficult to evaluate the prospects for our future viability. There is no assurance that we will
successfully execute