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Montana Technologies Announces Second Quarter 2024 Results

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Montana Technologies (NASDAQ: AIRJ) announced its Q2 2024 results, highlighting progress towards commercialization of its AirJoule® technology for water generation and dehumidification. Key developments include:

1. MOUs with TenX Investment (UAE) and Climate Impact (Australia) for AirJoule® deployment
2. Commenced build-out of a new facility in Newark, Delaware
3. Completed $12 million private placement financing
4. Ended Q2 with $35 million cash, sufficient for operations through expected 2026 commercialization
5. Expanded business development and operations teams
6. Progressing on commercialization with Carrier for HVAC applications

The company is focusing on both dehumidification and water production applications, targeting industries such as agriculture, manufacturing, and data centers.

Montana Technologies (NASDAQ: AIRJ) ha annunciato i risultati del secondo trimestre 2024, evidenziando i progressi verso la commercializzazione della sua tecnologia AirJoule® per la generazione di acqua e la deumidificazione. I principali sviluppi includono:

1. MOUs con TenX Investment (UAE) e Climate Impact (Australia) per l'implementazione di AirJoule®
2. Avviato la costruzione di un nuovo stabilimento a Newark, Delaware
3. Completato un finanziamento di collocamento privato da 12 milioni di dollari
4. Terminato il secondo trimestre con 35 milioni di dollari in cassa, sufficienti per le operazioni fino alla prevista commercializzazione nel 2026
5. Espanso i team di sviluppo commerciale e operazioni
6. Proseguendo la commercializzazione con Carrier per applicazioni HVAC

L'azienda si sta concentrando su applicazioni di deumidificazione e produzione di acqua, puntando a settori come agricoltura, manifattura e centri dati.

Montana Technologies (NASDAQ: AIRJ) anunció sus resultados del segundo trimestre de 2024, destacando los avances hacia la comercialización de su tecnología AirJoule® para la generación de agua y deshumidificación. Los desarrollos clave incluyen:

1. MOUs con TenX Investment (EAU) y Climate Impact (Australia) para el despliegue de AirJoule®
2. Comenzada la construcción de una nueva instalación en Newark, Delaware
3. Completada una financiación por colocación privada de 12 millones de dólares
4. Terminó el segundo trimestre con 35 millones de dólares en efectivo, suficientes para las operaciones hasta la esperada comercialización en 2026
5. Ampliados los equipos de desarrollo comercial y operaciones
6. Avanzando en la comercialización con Carrier para aplicaciones de HVAC

La empresa se está enfocando en aplicaciones tanto de deshumidificación como de producción de agua, apuntando a industrias como la agricultura, la manufactura y los centros de datos.

몬타나 테크놀로지스 (NASDAQ: AIRJ)는 2024년 2분기 실적을 발표하며 AirJoule® 기술의 상업화 진행 상황을 강조했습니다. 주요 개발 사항은 다음과 같습니다:

1. AirJoule® 배치를 위한 TenX Investment (UAE) 및 Climate Impact (호주)와의 MOU 체결
2. 델라웨어주 뉴어크에 새로운 시설 건설 착수
3. 1억 2천만 달러 규모의 민간 자금 조달 완료
4. 2분기를 3,500만 달러의 현금으로 종료, 2026년 예상 상업화까지 운영에 충분
5. 사업 개발 및 운영 팀 확대
6. HVAC 응용 프로그램을 위한 Carrier와의 상업화 진행

회사는 농업, 제조 및 데이터 센터와 같은 산업을 목표로 하여, 드라이 및 수자원 생산 응용 프로그램 모두에 집중하고 있습니다.

Montana Technologies (NASDAQ: AIRJ) a annoncé ses résultats du deuxième trimestre 2024, mettant en avant les avancées vers la commercialisation de sa technologie AirJoule® pour la génération d'eau et la déshumidification. Parmi les développements clés, on trouve :

1. MOUs avec TenX Investment (Émirats Arabes Unis) et Climate Impact (Australie) pour le déploiement d'AirJoule®
2. Début de la construction d'une nouvelle installation à Newark, Delaware
3. Achèvement d'un financement par placement privé de 12 millions de dollars
4. Fin du 2ème trimestre avec 35 millions de dollars de liquidités, suffisants pour les opérations jusqu'à la commercialisation prévue en 2026
5. Expansion des équipes de développement commercial et d'opérations
6. Progrès dans la commercialisation avec Carrier pour des applications de CVC

L'entreprise se concentre à la fois sur les applications de déshumidification et de production d'eau, ciblant des secteurs tels que l'agriculture, la fabrication et les centres de données.

Montana Technologies (NASDAQ: AIRJ) hat seine Ergebnisse für das zweite Quartal 2024 bekannt gegeben und den Fortschritt zur Kommerzialisierung seiner AirJoule®-Technologie zur Wassererzeugung und Entfeuchtung hervorgehoben. Zu den wichtigsten Entwicklungen gehören:

1. MOUs mit TenX Investment (VAE) und Climate Impact (Australien) für die Einführung von AirJoule®
2. Baubeginn einer neuen Anlage in Newark, Delaware
3. Abschluss einer privaten Platzierungsfinanzierung über 12 Millionen USD
4. Abschluss des 2. Quartals mit 35 Millionen USD Bargeld, ausreichend für den Betrieb bis zur erwarteten Kommerzialisierung im Jahr 2026
5. Erweiterung der Geschäftsentwicklungs- und Betriebsteams
6. Fortgeschrittene Kommerzialisierung mit Carrier für HVAC-Anwendungen

Das Unternehmen konzentriert sich sowohl auf Entfeuchtung als auch auf Wassererzeugungsanwendungen und zielt auf Branchen wie Landwirtschaft, Fertigung und Rechenzentren ab.

Positive
  • Signed MOUs with TenX Investment (UAE) and Climate Impact (Australia) for AirJoule® technology deployment
  • Completed $12 million private placement financing from new and existing investors
  • Ended Q2 with $35 million cash, providing sufficient liquidity through expected 2026 commercialization
  • Commenced build-out of new operations facility in Newark, Delaware for product engineering and initial manufacturing
  • Expanded business development and operations teams with key hires
  • Progressing on commercialization with Carrier for HVAC applications
Negative
  • Restated financial statements for Q1 2024 due to change in accounting treatment for joint venture with GE Vernova
  • Initial manufacturing line not expected to be operational until mid-2025

Insights

Montana Technologies' Q2 2024 results reveal a company in the pre-revenue stage, focusing on commercialization efforts. The $12 million private placement and $35 million cash balance provide a runway through expected 2026 commercialization. However, the lack of current revenue and specific financial figures is concerning. The change in accounting treatment for the GE Vernova joint venture to the equity method might impact future financial statements. The MOUs with TenX and CIC show potential but don't guarantee revenue. The $1 million grant from Delaware is positive for expansion. Overall, while the company shows progress, it remains a speculative investment with no immediate revenue prospects.

The AirJoule® technology's dual capability for dehumidification and water generation is promising. Its potential for energy efficiency in HVAC systems, particularly the collaboration with Carrier, could be a game-changer if successful. The water production applications, especially in water-scarce regions and for green hydrogen production, demonstrate versatility. However, the technology is still unproven at scale. The establishment of a manufacturing facility in Newark is a positive step towards commercialization, but the 2026 timeline suggests a long road ahead. The expanded team with key hires in business development and operations indicates a serious push towards market readiness, but execution risks remain high in this nascent field.

Montana Technologies is targeting critical global issues: water scarcity and energy efficiency. The MOUs in UAE and Australia align with these regions' sustainability goals, potentially opening significant markets. The collaboration with Carrier in HVAC systems taps into a massive industry ripe for innovation. However, the company faces stiff competition from established players and other emerging technologies. The 2026 commercialization target is distant in a fast-evolving market. While the expanded team and new facility are positive, the company's ability to execute and gain market share remains uncertain. Investors should closely monitor progress towards concrete orders and revenue generation milestones in the coming quarters.

RONAN, Mont., Aug. 23, 2024 (GLOBE NEWSWIRE) -- Montana Technologies Corporation (NASDAQ: AIRJ) (“Montana Technologies” or the “Company”), the developer of the transformational AirJoule® technology for water generation, today announced its second quarter results.

2nd Quarter and Recent Highlights

  • Global MOU Announcements:
    • United Arab Emirates: Announced agreement with TenX Investment (“TenX”) to explore a deployment of AirJoule® units in support of water security and sustainability projects in the United Arab Emirates
    • Australia: Announced agreement with Climate Impact Corporation (“CIC”) to collaborate on solar-powered hydrogen production using AirJoule® technology in Australia
  • Continued advancement towards commercialization of AirJoule® applications in dehumidification and atmospheric water generation
  • Commenced the build-out of a new operations facility in Newark, Delaware to house product engineering and an initial manufacturing line, along with office and meeting space for the expanded business development, engineering, and operations teams
  • Completed $12 million private placement financing from new and existing investors
  • Ended the quarter with $35 million of cash on the balance sheet and sufficient liquidity to support the Company’s operations through expected commercialization in 2026

Executive Commentary

“Montana Technologies is making excellent progress towards commercialization of the AirJoule® technology,” said Matt Jore, Chief Executive Officer of Montana Technologies. “We are excited about our recently announced agreements with TenX and CIC to deploy AirJoule® for water production. These novel applications illustrate the value that AirJoule® can bring to improve water security and efficiency in a variety of use cases.”

Pat Eilers, Executive Chairman of Montana Technologies, added, “With our newly expanded business development and operations teams, we are keenly focused on engaging with prospective customers from myriad industries who recognize the immense value from the industry-leading dehumidification and water production capabilities of AirJoule®.”

Parallel Commercialization Priorities

AirJoule® transforms humid air into dehumidified air and pure distilled water. Through the same technology and process, AirJoule® provides both advanced dehumidification and atmospheric water generation capabilities for use in a variety of customer applications.

Dehumidification

When utilized for moisture removal in an air conditioning system, AirJoule® can provide significant energy efficiency benefits through lower power consumption compared to conventional moisture removal through condensation. The Company is working closely with its HVAC commercialization partners at Carrier Corporation (“Carrier”) on an AirJoule® product with a form factor that can remove moisture for a Carrier light commercial system and reduce power consumption. Ultimately, the Company expects to integrate the AirJoule® technology into a full Carrier system, which would reduce further reduce power consumption, operating expenses, and scope 2 emissions for customers.

Water production

AirJoule®’s atmospheric water harvesting capabilities far exceed the performance of other competing technologies. The Company is engaging with prospective customers on use cases where AirJoule® can reduce costs or improve industrial processes through its advanced water harvesting capacity. Water usage is increasingly an area of focus for businesses in a wide variety of industries, including agriculture, manufacturing, and data centers.

In August 2024, the Company announced two agreements for the deployment of AirJoule® for water production in water-scarce regions of the world:

  • The Company signed a Memorandum of Understanding (“MOU”) with Dubai-based TenX to leverage AirJoule®’s water harvesting capabilities to enhance water security and energy sustainability in the United Arab Emirates. The Company and TenX will explore options to deploy AirJoule® units with initial installations focused on critical infrastructure and community water needs.
  • The Company is collaborating with Australia-based CIC on the development of their solar-powered hydrogen production modules. Using AirJoule® to supply water through atmospheric water harvesting, CIC’s modular hydrogen production units will seek to produce green hydrogen using Australia’s plentiful solar resources. This collaboration is the first step towards deploying AirJoule® to support renewable hydrogen production in the medium term.

Expansion of Business Development and Operations Teams

During the second quarter, the Company expanded its business development and operations teams with the hiring of several key personnel reporting to Bryan Barton, Chief Commercialization Officer of Montana Technologies. These new hires include:

  • Matt Grandbois, VP of Business Development
  • Jonathan Tracy, VP of Operations
  • Kunjan Khambhati, VP of Supply Chain
  • Hao Huang, Senior R&D Leader
  • Bobby Carbonell, Innovation & Project Leader
  • Matt Olsen, Applications Engineering Leader

Initial Manufacturing Facility in Newark, DE

In June, our joint venture with GE Vernova commenced buildout for a 30,000 square foot facility in Newark, DE which will include product engineering and the initial manufacturing line for MOF-coated contactors and pre-production AirJoule® units. The facility also includes administrative space for the recently expanded business development and operations teams. In support of this expansion, the State of Delaware approved a grant for up to $1.0 million to support the development of the facility and the hiring of additional personnel. The initial manufacturing line is expected to be operational in mid-2025.

Private Placement Financing

On June 11, 2024, the Company announced the completion of a private placement financing with new and existing investors, through which it issued approximately 1.2 million shares for gross proceeds of approximately $12 million. The proceeds are being used to support the commercialization of the AirJoule® system.

Quarterly Report on Form 10-Q

Montana Technologies’ financial statements and related footnotes are available in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, which was filed with the Securities and Exchange Commission (“SEC”) on August 23, 2024. The financial statements reflect a change in accounting treatment for the Company’s investment in the joint venture with GE Vernova. As described in a Form 8-K filed with the SEC on August 13, 2024, the Company determined, through a consultation process with the SEC, that it should use the equity method to account for its investment in the joint venture. Additionally, the Company has restated its financial statements for the quarter ended March 31, 2024, in a Form 10-Q/A filed with the SEC on August 23, 2024.

Earnings Call Webcast

Montana Technologies has provided investors with an earnings call webcast. Interested parties may view the webcast by visiting the investor section of the Montana Technologies website at www.mt.energy and clicking on the webcast link.

About Montana Technologies Corporation

Montana Technologies Corporation (NASDAQ: AIRJ) is the developer of AirJoule®, an atmospheric thermal energy and water harvesting technology that provides efficient and sustainable air dehumidification and pure water from air. Designed to reduce energy consumption and generate material cost efficiencies, AirJoule® is being commercialized through a joint venture with GE Vernova and through partnerships with Carrier Global Corporation and BASF. For more information, visit www.mt.energy.

Forward Looking Statements

The information in this press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, regarding Montana Technologies and its future financial and operational performance, as well as its strategy, future operations, estimated financial position, estimated revenues, and losses, projected costs, prospects, plans and objectives of management are forward looking statements. When used in this press release, including any oral statements made in connection therewith, the words “could,” “may,” “will,” “should,” “anticipate,” “believe,” “intend,” “estimate,” “expect,” “project,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, Montana Technologies expressly disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements herein, to reflect events or circumstances after the date of this press release.

Montana Technologies cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond Montana Technology’s control. These risks include, but are not limited to, our status as an early stage Company with limited operating history, which may make it difficult to evaluate the prospects for our future viability; our initial dependence on revenue generated from a single product; significant barriers we face to deploy our technology; the dependence of our commercialization strategy on our relationships with BASF, CATL, Carrier, GE Vernova, and other third parties history of losses, and the other risks and uncertainties described under the heading “Risk Factors” in our SEC filings including in our Registration Statement (See Risk Factors) on Form S-1 filed with the Securities and Exchange Commission (the “SEC”) on June 27, 2024. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Should one or more of the risks or uncertainties described in this press release occur, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Montana Technologies’ SEC Filings are available publicly on the SEC’s website at www.sec.gov, and readers are urged to carefully review and consider the various disclosures made in such filings.


MONTANA TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
 
  June 30,  December 31, 
  2024  2023 
Assets      
Current assets      
Cash $34,648,611  $375,796 
Prepaid expenses and other current assets  1,307,501   126,971 
Total current assets  35,956,112   502,767 
Operating lease right-of-use asset  162,476   49,536 
Property and equipment, net  8,085   3,832 
Investment in AirJoule, LLC  342,892,830    
Total assets $379,019,503  $556,135 
         
Liabilities and Stockholders’ equity (deficit)        
Current liabilities        
Accounts payable $768,438  $2,518,763 
Accrued transaction fees  50,000   3,644,100 
Other accrued expenses  2,275,904   244,440 
Operating lease liability, current  25,368   22,237 
True Up Shares liability  422,000    
Total current liabilities  3,541,710   6,429,540 
Earnout Shares liability  48,329,000    
Subject Vesting Shares liability  12,458,000    
Operating lease liability, non-current  139,999   27,299 
Deferred tax liability  84,487,339    
Total liabilities $148,956,048  $6,456,839 
Commitments and contingencies (Note 12)        
Stockholders’ equity (deficit)        
Preferred stock, $0.0001 par value; 25,000,000 authorized shares and 0 shares issued and outstanding as of June 30, 2024 and December 31, 2023 $  $ 
Class A Common stock, $0.0001 par value; 600,000,000 authorized shares and 51,016,028 and 32,731,583 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively  5,110   3,274 
Class B Common stock, $0.0001 par value; 50,000,000 authorized shares and 4,759,642 shares issued and outstanding as of June 30, 2024 and December 31, 2023  476   476 
Additional paid-in capital  52,240,783   11,263,647 
Retained earnings (accumulated deficit)  177,817,086   (17,168,101)
Total stockholders’ equity (deficit)  230,063,455   (5,900,704)
Total liabilities and stockholders’ equity (deficit) $379,019,503  $556,135 
 


MONTANA TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
 
  Three Months Ended
June 30,
  Six Months Ended
June 30,
 
  2024  2023  2024  2023 
Costs and expenses:            
General and administrative $3,211,205  $1,813,014  $4,024,444  $2,031,189 
Research and development  1,050,804   1,099,143   1,896,961   1,704,087 
Sales and marketing  74,841   128,153   112,566   138,576 
Transaction costs incurred in connection with business combination        54,693,103    
Depreciation and amortization  1,216   1,085   2,301   2,170 
Loss from operations  (4,338,066)  (3,041,395)  (60,729,375)  (3,876,022)
                 
Other income, net:                
Interest income  216,480   3,551   242,626   3,551 
Gain on contribution to AirJoule, LLC        333,500,000    
Equity loss from investment in AirJoule, LLC  (580,788)     (607,170)   
Change in fair value of Earnout Shares liability  13,064,000      5,392,000    
Change in fair value of True Up Shares liability  (136,000)     133,000    
Change in fair value of Subject Vesting Shares  1,759,000      (666,000)   
Gain on settlement of legal fees  2,207,445      2,207,445    
Total other income (expenses), net  16,530,137   3,551   340,201,901   3,551 
                 
Income (loss) before income taxes  12,192,071   (3,037,844)  279,472,526   (3,872,471)
Income tax benefit (expense)  1,237,824      (84,487,339)   
Net income (loss) $13,429,895  $(3,037,844) $194,985,187  $(3,872,471)
                 
Weighted average Class A common stock outstanding, basic  49,560,529   32,667,171   43,357,928   32,633,380 
Basic net income (loss) per share, Class A common stock $0.25  $(0.08) $4.05  $(0.10)
                 
Weighted average Class A common stock outstanding, diluted  51,358,716   32,667,171   44,995,234   32,633,380 
Diluted net income (loss), per share, Class A common stock $0.24   (0.08) $3.92  $(0.10)
                 
Weighted average Class B common stock outstanding, basic and diluted  4,759,642   4,759,642   4,759,642   4,759,642 
Basic net income (loss) per share, Class B common stock $0.25  $(0.08) $4.05  $(0.10)
                 
Diluted net income (loss) per share, Class B common stock $0.24   (0.08) $3.92   (0.10)
 


MONTANA TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 
  For the Six Months Ended
June 30,
 
  2024  2023 
Cash Flows from Operating Activities      
Net income (loss) $194,985,187  $(3,872,471)
Adjustment to reconcile net income (loss) to cash used in operating activities:        
Depreciation and amortization  2,301   2,170 
Deferred tax expense  84,487,339    
Amortization of operating lease right-of-use assets  59,709   10,483 
Change in fair value of Earnout Shares liability  (5,392,000)   
Change in fair value of True Up Shares liability  (133,000)   
Change in fair value of Subject Vesting Shares liability  666,000    
Gain on contribution to AirJoule, LLC  (333,500,000)   
Equity loss from investment in AirJoule, LLC  607,170    
Non-cash transaction costs in connection with business combination  53,721,000    
Gain on settlement of legal fees  (2,207,445)   
Share-based compensation  150,519   52,000 
Changes in operating assets and liabilities:        
Prepaid expenses and other assets  (806,153)  (100,733)
Operating lease liabilities  (56,818)  (10,483)
Accounts payable  (3,157,317)  121,883 
Due to related party  (1,440,000)   
Accrued expenses, accrued transaction costs and other liabilities  (5,563,053)  1,940,339 
Net cash used in operating activities  (17,576,561)  (1,856,812)
         
Cash Flows from Investing Activities        
Purchases of fixed assets  (6,554)  (96,025)
Investment in AirJoule, LLC  (10,000,000)   
Net cash used in investing activities  (10,006,554)  (96,025)
         
Cash Flows from Financing Activities        
Proceeds from the exercise of warrants  45,760   8,580 
Proceeds from the exercise of options  60,170    
Proceeds from the issuance of common stock pursuant to subscription agreements  61,750,000    
Issuance of preferred units     255,861 
Net cash provided by financing activities  61,855,930   264,441 
Net increase (decrease) in cash  34,272,815   (1,688,396)
Cash, beginning of period  375,796   5,211,486 
Cash, end of the period $34,648,611  $3,523,090 
         
Supplemental Non-Cash investing and financing activities:        
Initial recognition of True Up Shares liability $555,000  $ 
Initial recognition of Subject Vesting Shares liability $11,792,000  $ 
Initial recognition of ROU asset and operating lease liability $172,649  $ 
Liabilities combined in recapitalization, net $8,680,477  $ 
Contribution to AirJoule, LLC of license to technology $333,500,000  $ 
         
Supplemental Cash flow information:        
Taxes paid $  $ 
 

Contacts

Investor Relations:
Tom Divine – Vice President, Investor Relations and Finance
investors@mt.energy

Media:
media@mt.energy


FAQ

What were Montana Technologies' (AIRJ) key achievements in Q2 2024?

Montana Technologies (AIRJ) signed MOUs with TenX Investment and Climate Impact , completed a $12 million private placement, started building a new facility in Newark, Delaware, and expanded its business development and operations teams.

How much cash did Montana Technologies (AIRJ) have at the end of Q2 2024?

Montana Technologies (AIRJ) ended Q2 2024 with $35 million in cash, which the company states is sufficient to support operations through expected commercialization in 2026.

What are the main applications of Montana Technologies' (AIRJ) AirJoule® technology?

Montana Technologies' (AIRJ) AirJoule® technology has two main applications: advanced dehumidification for HVAC systems and atmospheric water generation for various industries including agriculture, manufacturing, and data centers.

When is Montana Technologies (AIRJ) expecting to start commercial production of AirJoule® units?

Montana Technologies (AIRJ) expects its initial manufacturing line in Newark, Delaware to be operational by mid-2025, with full commercialization anticipated in 2026.

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