Market Overview - AirJoule Technologies Corporation's Total Addressable Market (TAM) is estimated at approximately $455 billion, with $100 billion in atmospheric water harvesting and $355 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 $2,177,762 compared to a loss of $(4,554,617) in Q3 2023[213]. - Total other income for Q3 2024 was $36,125,418, compared to $6,264 in Q3 2023, an increase of $36,119,154[213]. - Net income for Q3 2024 was $35,016,858, compared to a net loss of $(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 $0.4 million and $0.6 million, respectively, compared to $6.3 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 $333.5 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 $3.0 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 $37.2 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 $3.6 million in Q3 2023, a decrease of $1.1 million[214]. - Research and development expenses for Q3 2024 were $(0.1) million compared to $0.8 million in Q3 2023, a decrease of $0.9 million[216]. - Sales and marketing expenses for Q3 2024 were $23,639, significantly lower than $167,890 in Q3 2023, a decrease of $144,251[218]. - Research and development expenses for the nine months ended September 30, 2024 were $1.8 million, down from $2.5 million in the same period of 2023, a decrease of $0.7 million[217]. - General and administrative expenses for the nine months ended September 30, 2024 were $6.5 million, an increase of $0.9 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 $53.7 million[219]. - Depreciation expense for Q3 2024 was $2,136, compared to $1,086 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 $21.6 million, compared to $4.0 million for the same period in 2023[239]. - Net cash used in investing activities was $10.0 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 $90 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].
Montana Technologies Corporation(AIRJ) - 2024 Q3 - Quarterly Report