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Montana Technologies Corporation(AIRJ) - 2024 Q3 - Quarterly Report
AIRJMontana Technologies Corporation(AIRJ)2024-11-13 21:04

Market Overview - AirJoule Technologies Corporation's Total Addressable Market (TAM) is estimated at approximately 455billion,with455 billion, with 100 billion in atmospheric water harvesting and 355billioninHVACsectors[178].RevenueandFinancialPerformance−AsofSeptember30,2024,thecompanyhasnotearnedanyrevenuefromthesaleofAirJoulesystems[182].−LossfromoperationsforQ32024was355 billion in HVAC sectors[178]. Revenue and Financial Performance - As of September 30, 2024, the company has not earned any revenue from the sale of AirJoule systems[182]. - Loss from operations for Q3 2024 was (2,376,855), an improvement of 2,177,762comparedtoalossof2,177,762 compared to a loss of (4,554,617) in Q3 2023[213]. - Total other income for Q3 2024 was 36,125,418,comparedto36,125,418, compared to 6,264 in Q3 2023, an increase of 36,119,154[213].−NetincomeforQ32024was36,119,154[213]. - Net income for Q3 2024 was 35,016,858, compared to a net loss of (4,548,353)inQ32023,animprovementof(4,548,353) in Q3 2023, an improvement of 39,565,211[213]. - Interest income for the three and nine months ended September 30, 2024, was 0.4millionand0.4 million and 0.6 million, respectively, compared to 6.3millionand6.3 million and 9.8 million for the same periods in 2023, reflecting a significant decrease due to changes in cash balance[222]. - A gain of 333.5millionwasrecognizedfortheninemonthsendedSeptember30,2024,onthecontributiontoAirJoule,LLC,attributedtothefairvalueoftheintellectualpropertytransferred[222].−EquitylossfromtheinvestmentinAirJoule,LLCamountedto333.5 million was recognized for the nine months ended September 30, 2024, on the contribution to AirJoule, LLC, attributed to the fair value of the intellectual property transferred[222]. - Equity loss from the investment in AirJoule, LLC amounted to 2.3 million for the three months and 3.0millionfortheperiodfromMarch4,2024,toSeptember30,2024[224].−ThechangeinfairvalueofEarnoutSharesliabilityresultedinagainof3.0 million for the period from March 4, 2024, to September 30, 2024[224]. - The change in fair value of Earnout Shares liability resulted in a gain of 31.8 million and 37.2millionforthethreeandninemonthsendedSeptember30,2024,respectively[224].Expenses−Operatingexpensesarecategorizedintogeneralandadministrative,researchanddevelopment,salesandmarketing,transactioncosts,anddepreciationandamortization[183][184][185].−GeneralandadministrativeexpensesforQ32024were37.2 million for the three and nine months ended September 30, 2024, respectively[224]. Expenses - Operating expenses are categorized into general and administrative, research and development, sales and marketing, transaction costs, and depreciation and amortization[183][184][185]. - General and administrative expenses for Q3 2024 were 2.4 million, down from 3.6millioninQ32023,adecreaseof3.6 million in Q3 2023, a decrease of 1.1 million[214]. - Research and development expenses for Q3 2024 were (0.1)millioncomparedto(0.1) million compared to 0.8 million in Q3 2023, a decrease of 0.9million[216].−SalesandmarketingexpensesforQ32024were0.9 million[216]. - Sales and marketing expenses for Q3 2024 were 23,639, significantly lower than 167,890inQ32023,adecreaseof167,890 in Q3 2023, a decrease of 144,251[218]. - Research and development expenses for the nine months ended September 30, 2024 were 1.8million,downfrom1.8 million, down from 2.5 million in the same period of 2023, a decrease of 0.7million[217].−GeneralandadministrativeexpensesfortheninemonthsendedSeptember30,2024were0.7 million[217]. - General and administrative expenses for the nine months ended September 30, 2024 were 6.5 million, an increase of 0.9millionfrom0.9 million from 5.6 million in the same period of 2023[215]. - Transaction costs related to the business combination included non-cash recognition of earnout liabilities of approximately 53.7million[219].−DepreciationexpenseforQ32024was53.7 million[219]. - Depreciation expense for Q3 2024 was 2,136, compared to 1,086inQ32023,anincreaseof1,086 in Q3 2023, an increase of 1,050[221]. Cash Flow - Net cash used in operating activities for the nine months ended September 30, 2024, was 21.6million,comparedto21.6 million, compared to 4.0 million for the same period in 2023[239]. - Net cash used in investing activities was 10.0millionfortheninemonthsendedSeptember30,2024,primarilyduetocontributionsmadetoAirJoule,LLC[241].−Netcashprovidedbyfinancingactivitieswas10.0 million for the nine months ended September 30, 2024, primarily due to contributions made to AirJoule, LLC[241]. - Net cash provided by financing activities was 61.9 million for the nine months ended September 30, 2024, mainly from the issuance of common stock related to private placements[242]. Future Outlook - Future capital requirements will depend on the success of product launches and research and development efforts, with potential additional contributions of up to 90milliontotheAirJoulejointventure[231].−ThecompanyisclassifiedasanemerginggrowthcompanyundertheJOBSAct,allowingittodelaycompliancewithcertainaccountingstandards[244].PartnershipsandBusinessStrategy−ThecompanyhasestablishedpartnershipswithPacificNorthwestNationalLaboratory,BASF,andCATLtoacceleratemanufacturingandcommercializationefforts[179].−Thecompanyisfocusedonscalingmanufacturingthroughglobaljointventurestoaddresswaterscarcityandglobalwarming[177].−Thecompanyaimstoprovideenergy−efficientsolutionsforwatergenerationandHVACsystems,addressingrisingwaterstressanddemandforcomfortcooling[178].−Thecompanyhasahistoryoflossesandisdependentonrevenuefromasingleproduct,whichposesriskstofutureviability[177].CorporateChanges−ThecompanychangeditsnamefromMontanaTechnologiesCorporationtoAirJouleTechnologiesCorporationeffectiveNovember13,2024[180].−TheEarnoutSharesliabilityisestimatedusingaMonteCarlosimulation,assuming90 million to the AirJoule joint venture[231]. - The company is classified as an emerging growth company under the JOBS Act, allowing it to delay compliance with certain accounting standards[244]. Partnerships and Business Strategy - The company has established partnerships with Pacific Northwest National Laboratory, BASF, and CATL to accelerate manufacturing and commercialization efforts[179]. - The company is focused on scaling manufacturing through global joint ventures to address water scarcity and global warming[177]. - The company aims to provide energy-efficient solutions for water generation and HVAC systems, addressing rising water stress and demand for comfort cooling[178]. - The company has a history of losses and is dependent on revenue from a single product, which poses risks to future viability[177]. Corporate Changes - The company changed its name from Montana Technologies Corporation to AirJoule Technologies Corporation effective November 13, 2024[180]. - The Earnout Shares liability is estimated using a Monte Carlo simulation, assuming 50 million of Annualized EBITDA per production line over a five-year period[192].