AirJoule Technologies Corporation

Greetings. Welcome to the AirJewel Technologies fourth quarter and full year 2025 earnings call. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. It is now my pleasure to turn the conference over to your host, Tom Devine, Vice President of Investor Relations and Finance. Thank you. You may now begin.

Thank you and good morning. With me today for our full year earnings call are Matt Jor, Chief Executive Officer, Pat Eilers, Executive Chairman, Brian Barton, Chief Commercialization Officer, and Steven Peng, Chief Financial Officer. During this call, we'll be referring to a presentation which is available on the webcast platform and on the investor section of our website. I would like to point out that many of the comments made during the prepared remarks and during the Q&A section are forward-looking statements that involve risks and uncertainties that could affect our actual results and plans. Many of these risks are beyond our control and are discussed in more detail in the risk factors in the forward-looking statement sections of our filings with the SEC. Although we believe the expectations expressed are based on reasonable assumptions, they are not guaranteed that future performance and actual results or developments may differ materially. And now, I'll turn it over to Matt Jor.

Thanks, Tom. Good morning, everyone, and thank you for joining us for our full year 2025 earnings call. This is an important call for AirJewel. 2025 was the year we built the foundation for commercialization And 2026 is the year we intend to convert that foundation into a commercial pipeline to revenue. Before I review our accomplishments and outline our plan for the year ahead, I want to take a moment to talk about something that has become impossible to ignore, the growing urgency of water resilience. In Corpus Christi, Texas, home to one of the nation's largest petroleum ports, the main water reservoir has dropped below 10% capacity, its lowest level on record. The city's own projections indicate it could reach a water emergency within months, meaning supply will be unable to meet demand. The governor of Texas has publicly warned that the state may need to intervene. Industrial operations that produce jet fuel for Texas airports and support billions of dollars in economic activity face the prospect of curtailment due to lack of water. The city's proposed long-term solution is a desalination plant that will cost over a billion dollars and is years away from producing any water. Meanwhile, in the Middle East, the unfortunate ongoing conflict has caused immense human suffering. Our thoughts are with the people in the communities affected there. It has also exposed a critical vulnerability for the more than 100 million people who depend on desalination for their water supply. Desalination plants in Bahrain have been damaged by military strikes. Facilities in the UAE and Kuwait have been hit by missile debris. As Bloomberg columnist Xavier Blas recently observed, water is now more strategically important than oil. These desal plants are centralized facilities that represent single points of failure for entire populations. These risks are real, and they are often underappreciated until they become urgent. They stem from the same structural problem. The world's water infrastructure is concentrated, brittle, and increasingly vulnerable to disruption. Whether the stress comes from drought, industrial and population growth, or geopolitical conflict, the result is the same. Communities and industries are exposed to water supply risks with very limited alternatives. AirJewel offers a fundamentally different approach. Distributed water generation from the atmosphere that operates independently of pipelines, reservoirs, and centralized desalination. AirJewel systems generate water on site, behind the meter, and at the point of need. They require no municipal water connection. These systems produce pure distilled and potable water from ambient air using waste heat. We've proven this in the field. Over the past year, AirJewel systems have operated in Texas, Arizona, California, and Dubai. The macro tailwinds that we've discussed on prior calls remain in full force and have been exacerbated and exposed by the current war. Data center expansion and the onshoring of advanced manufacturing is exponentially driving an increase in industrial water and power demand. But the events of recent weeks have elevated the conversation from efficiency and sustainability to resilience and security and even survival. That shift is accelerating interest in exactly what AirDuel can deliver. In our year-end call in March of last year, we laid out a clear set of objectives for 2025. Validate our technology in the field, develop products for commercial launch, strengthen our partnerships towards building a commercial pipeline, and ensure sufficient capitalization to support commercialization. we delivered on these commitments. On technology validation, we said we would move from laboratory demonstrations to real-world field deployments. In Dubai, we operated an air jewel system at a government advanced technology facility, showcasing our technology to public and private sector customers across the Middle East. In Hubbard, Texas, we deployed the first US field demonstration of air jewel, showing our ability to produce pure water from air and generating months of operational data across diverse environmental conditions. At Arizona State University, an independent academic evaluation is ongoing in one of the most demanding air environments in the United States. On product development, we said we would advance our products toward commercial readiness. Last year, we made a deliberate engineering decision to focus our initial builds on our so-called A250 platform, which we'll now be referring to as our AirJewel platform. core product. This is our core two-chamber system optimized for industrial dehumidification and water generation. This allowed us to build, deploy, and learn from multiple systems in the field. And those learnings have directly informed the design of our A1000, which we'll now be referring to as AirJewel Prime. This is our larger water generator for industrial scale applications that we're currently building. Both products share a common sorbit chamber architecture and produce distilled and potable water that meets FDA bottled water standards. On partnerships, we said we would leverage our strategic relationships to accelerate commercialization. GE Renova invested additional capital and commenced a strategic waste heat integration project with us. We'll also be deploying an air dual system at GE Renova's New York facility to support our waste heat strategic project with them. and to be used as a demonstration system for GE Vernova's customers. Additionally, we were selected for the Net Zero Innovation Hub to showcase our AirJuul system for Google, Microsoft, DataFor, and other leading data center infrastructure companies. We established defense sector credibility through a CRADA with the U.S. Army and an agreement with a defense contractor for anti-corrosion applications. And we announced an exclusive Middle East distribution agreement with 10X Investment an Emirati-owned company with well-established relationships across government, commercial, and industrial sectors throughout the Gulf. On commercial pipeline, we said we would develop strong customer engagements with a path to commercial sales. We are now actively engaged with customers across several industry verticals. We introduced the water purchase agreement business model, and we developed a defined, repeatable customer engagement process that is advancing prospects toward commercial deployment. Brian will take you through that process in detail shortly. On the balance sheet, we said we would ensure sufficient capitalization to support commercialization. We completed a $15 million private placement anchored by GE Vrnova, filed an S3 shelf registration, and completed a $23 million equity offering in January 2026, ensuring that we have the runway to execute on our plan with zero debt. Let me highlight the key milestones from the fourth quarter and the first several weeks of 2026. Some of these were discussed on our third quarter call in November, but I want to place them in the context of the full year and the momentum we're carrying into 2026. During the fourth quarter, we continue to advance our defense sector relationships. Our CRADA with the U.S. Army, which we announced in October, is focused on integrating Air Jewel with tactical waste heat recovery systems to deliver resilient water supply for forward deployed troops. In December, we announced a collaboration with Red Dot Ranch to bring off-grid water solutions to rural residential communities in Pescadero, California, demonstrating Air Jewel's value proposition for distributed residential water generation. We deployed an AirDuel core system in January and completed the first stage pilot in February. In December, we also commissioned an AirDuel core system at Arizona State University for independent academic evaluation by Dr. Paul Westerhoff and his team of globally recognized experts in atmospheric water harvesting. In January, we announced an exclusive distribution agreement with 10X, providing AirDuel with market access across six Gulf countries. and we commenced our partnership in the Net Zero Innovation Hub program in Denmark that I mentioned earlier. Looking ahead, 2026 is the year when AirDuel transitions to commercial pipeline building. We expect to secure multiple long-term customer commitments across data center, industrial, defense, and international markets. Importantly, the customer relationships we build in 2026 are laying the foundation for scaled commercial business in 2027 and beyond. As I mentioned earlier, one of our recent announcements was our exclusive distribution agreement with 10X across the Middle East, a region where water demand has far exceeded natural supply and where recent conflict has further exposed its fragility. I'd like to turn it over to Pat Eilers to discuss the significance of this part of the world in terms of energy, water, and the opportunity it represents for an air-jewel solution in that region. Pat?