AirJoule Technologies Reports Significant Financial Growth Following Merger, Net Income Turnaround

As of September 30, 2024, AirJoule Technologies Corporation, formerly known as Montana Technologies Corporation, reported significant financial changes following its merger with Power & Digital Infrastructure Acquisition II Corp. on March 14, 2024. The company’s total assets surged to $1.22 billion, a substantial increase from $556,135 at the end of 2023. This growth was primarily driven by a cash influx from the merger and subsequent financing activities, which included gross proceeds of approximately $61.8 million from subscription agreements.

The company’s stockholders’ equity improved dramatically, reaching $265.7 million, compared to a deficit of $(5.9 million) at the end of 2023. Retained earnings also saw a notable turnaround, climbing to $212.8 million from an accumulated deficit of $(17.2 million) in the previous fiscal period. This positive shift in equity was bolstered by a gain of $333.5 million from the contribution to AirJoule, LLC, reflecting the company's strategic focus on atmospheric water harvesting and HVAC applications.

In terms of profitability, AirJoule reported a net income of $35.0 million for the three months ended September 30, 2024, a significant recovery from a net loss of $(4.5 million) during the same period in 2023. For the nine months ended September 30, 2024, net income totaled $230.0 million, compared to a net loss of $(8.4 million) in the prior year. The improvement in net income was attributed to increased other income, primarily from the gain on the contribution to AirJoule, LLC, and a favorable change in the fair value of the Earnout Shares liability.

Operating expenses for the third quarter decreased to $2.4 million from $3.6 million in the same quarter of 2023, reflecting a reduction in general and administrative costs. The company reported a loss from operations of $(2.4 million) for the three months ended September 30, 2024, an improvement from $(4.6 million) in the prior year.

Strategically, AirJoule has entered into a joint venture with GE Ventures LLC, aiming to integrate proprietary technologies for water capture. The company has committed to contribute up to $90 million to this venture based on future business plans. Additionally, the company has established partnerships with notable organizations to enhance its manufacturing capabilities and validate product commercialization.

Overall, AirJoule Technologies is positioned for growth, with a focus on addressing water scarcity through innovative technology, while also navigating the complexities of its recent merger and operational transitions.