Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 247

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1A
Chunk 247
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could contribute to negative market perceptions about our business or our securities. In addition, charges of this nature may hinder our
ability to obtain future financing on favorable terms or at all.

We may depend on sole-source and limited-source suppliers for
key components and products. If we are unable to source these components and products on a timely basis or at acceptable prices, we will
not be able to deliver our products to our customers and production time and production costs could increase, which may adversely affect
our business.

Our manufacturing processes rely on many materials. We purchase, and
will continue to purchase, a significant portion of our materials, components and finished goods used in our production facilities from
a few suppliers, some of which are single-source suppliers. For example, our proprietary MTMOF1, which is highly engineered to adsorb
water vapor molecules and is utilized in our AirJoule units, is currently being manufactured solely by BASF (an international chemical
company). As certain materials are highly specialized, the lead time needed to identify and qualify a new supplier is typically lengthy
and there is often no readily available alternative source. We do not generally have long-term contracts with our suppliers and substantially
all of our purchases are on a purchase order basis. Suppliers may extend lead times, limit supplies, place products on allocation or increase
prices due to commodity price increases, capacity constraints or other factors and could lead to interruption of supply or increased demand
in the industry.

Additionally, the supply of these materials may be negatively impacted
by increased trade tensions or additional or increased tariffs between the U.S. and its trading partners. In the event that we cannot
obtain sufficient quantities of materials in a timely manner, at reasonable prices or of sufficient quality, or if we are not able to
pass on higher materials costs to our customers, our business, financial condition and results of operations could be adversely impacted.

We may face supply chain competition, including competition from
businesses in other industries, which could result in insufficient inventory and negatively affect our results of operations.

Certain of our suppliers also supply systems and components to other
businesses. As a relatively low-volume purchaser of certain of these parts and materials, we may be unable to procure a sufficient supply
of the items we need in the event that our suppliers fail to produce sufficient quantities to satisfy the demands of all of their customers,
which could materially adversely affect our business, financial condition and results of operations.

Manufacturing issues not identified prior to design finalization,
long-lead procurement