AIRJWHIGH SIGNALFINANCIAL10-K

AIRJW experienced a dramatic $224.7M swing from positive to negative net income while cash reserves collapsed by 95% to just $59K, creating severe liquidity concerns.

The company went from reporting $215.7M in net income to a $9.0M loss, indicating either the prior year included significant one-time gains or major operational deterioration has occurred. With cash dropping to critically low levels of $59K, AIRJW faces immediate going concern risks despite reducing operating losses and liabilities.

Comparing 2026-03-31 vs 2025-03-25View on EDGAR →
FINANCIAL ANALYSIS

AIRJW shows a mixed but concerning financial picture with the most alarming change being cash collapsing from $1.3M to just $59K, creating immediate liquidity pressure. While the company improved operationally by reducing operating losses by 79% and cutting R&D spending in half, the dramatic swing from $215.7M profit to $9.0M loss suggests the prior year likely included major non-recurring gains that masked underlying performance. The reduction in liabilities by 38% provides some relief, but with minimal cash remaining, the company faces serious near-term funding challenges despite operational improvements.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
-104.2%
$215.7M-$9.0M

Net income declined 104.2% — review whether driven by operations, interest costs, or non-recurring items.

Cash & Equivalents
Balance Sheet
-95.4%
$1.3M$59K

Cash declined 95.4% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Operating Income
P&L
+79.4%
-$65.9M-$13.6M

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

Operating Cash Flow
Cash Flow
+76.8%
-$24.3M-$5.6M

Operating cash flow surged 76.8% — exceptional cash generation, highest quality earnings signal.

R&D Expense
P&L
-50.1%
$2.0M$1.0M

R&D spending cut 50.1% — could signal cost discipline or concerning reduction in innovation investment.

Current Liabilities
Balance Sheet
-43.7%
$4.0M$2.3M

Current liabilities reduced — improved short-term financial position and working capital health.

Total Liabilities
Balance Sheet
-38.3%
$117.7M$72.7M

Liabilities reduced 38.3% — deleveraging improves balance sheet strength and financial flexibility.

Current Assets
Balance Sheet
-24.3%
$31.5M$23.8M

Current assets declined 24.3% — monitor working capital adequacy and short-term liquidity.

LANGUAGE CHANGES
NEW — 2026-03-31
PRIOR — 2025-03-25
ADDED
As of March 1, 2026, there were 68,447,740 shares of the registrant s Class A common stock, par value $0.0001 per share, issued and outstanding.
Wh/L are to watt-hours per liter, the unit of measurement for energy required to remove a liter of water from the air by AirJoule and other methods of dehumidification.
XMS are to XMS XPDI Sponsor Holdings II LLC, an entity owned by professionals of XMS Capital Partners, LLC, a global independent financial services firm, primarily providing strategic and financial advisory services; XMS Capital are to XMS Capital Partners, LLC, an entity experienced in providing strategic and financial advisory services, including advising clients on mergers and acquisitions, capital structure, financings, takeover and activist preparation, and restructurings; and XPDB are to Power Digital Infrastructure Acquisition II Corp., a special purpose acquisition company.
iii CAUTI ONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Report, including, without limitation, statements under the heading Item 7.
Overview We are an advanced technology company whose purpose is to free the world from its water and energy constraints by delivering groundbreaking sorption technologies.
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REMOVED
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C.
As of March 1, 2025, there were 55,997,661 shares of the registrant s Class A common stock, par value $0.0001 per share, issued and outstanding.
iii CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Report, including, without limitation, statements under the heading Item 7.
Overview We are a water harvesting technology company that produces pure distilled water by harvesting the water vapor in the atmosphere.
Our proprietary AirJoule system, once commercialized, will provide cost-effective water to businesses and consumers around the world and help address growing concerns around water scarcity.
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