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Montana Technologies Corp. (XPDB)·Q1 2024 Earnings Summary

Executive Summary

  • Pre-revenue quarter focused on completing the SPAC business combination, strategic partnerships, and capitalization; ended Q1 with $37.43M cash and working capital of ~$26.2M .
  • Reported net loss of $11.55M, driven largely by non-cash fair value changes to earnout, vesting, and true-up share liabilities post-transaction; Class A diluted EPS was $(0.28), vs $(0.02) in Q1 2023 .
  • Formed a 50/50 AirJoule JV with GE Vernova (closed Mar 4, 2024) and signed commercialization term sheets with Carrier; JV consolidation recognized $365.3M IPR&D, $247.23M goodwill, and $612.53M non-controlling interest .
  • No quantitative guidance or Wall Street consensus estimates available; investor update webcast provided, but no transcript publicly accessible .

What Went Well and What Went Wrong

  • What Went Well

    • Completed business combination and listed on Nasdaq; exceeded $50M minimum cash condition via capital raise led by Carrier, GE Vernova, and Rice Investment Group .
    • Strategic partnerships locked: JV with GE Vernova and commercialization term sheets with Carrier across HVAC markets; management highlighted “transformational” efficiency gains from AirJoule .
    • Cash runway strengthened with $37.43M cash at quarter-end to fund product development and JV obligations .
    • Quote: “We are excited to have completed our Business Combination and for Montana Technologies to be listed on Nasdaq… these partnerships will open our company and technology into two enormous target markets” — CEO Matt Jore .

  • What Went Wrong

    • Higher operating loss vs prior year due to public company costs and R&D scale-up; loss from operations rose to $(1.76)M from $(0.83)M YoY .
    • Net loss was amplified by non-cash fair value adjustments to earnout, true-up, and subject vesting liabilities (aggregate $(9.79)M other expenses) .
    • No revenue yet; commercialization still ahead and contingent on execution with partners and JV milestones .

Financial Results

  • Income Statement and EPS
MetricQ1 2023Q1 2024
Revenues ($USD)— (pre-revenue) — (pre-revenue)
Loss from Operations ($USD)$(834,627) $(1,763,059)
Net Loss ($USD)$(834,627) $(11,552,823)
Diluted EPS, Class A ($USD)$(0.02) $(0.28)
  • Operating Expense Detail
MetricQ1 2023Q1 2024
General & Administrative ($USD)$218,175 $827,576
Research & Development ($USD)$604,944 $896,613
Sales & Marketing ($USD)$10,423 $37,725
Depreciation & Amortization ($USD)$1,085 $1,145
  • Other (Non-Operating) Drivers
MetricQ1 2023Q1 2024
Interest Income ($USD)— $38,236
Change in FV Earnout Shares Liability ($USD)— $(7,672,000)
Change in FV Subject Vesting Shares ($USD)— $(2,425,000)
Change in FV True Up Shares Liability ($USD)— $269,000
  • Cash Flow and Liquidity
MetricQ1 2023Q1 2024
Net Cash Used in Operating Activities ($USD)$(803,635) $(5,439,983)
Net Cash Provided by Financing Activities ($USD)$255,861 $42,494,907
Cash & Equivalents, End of Period ($USD)$4,663,712 $37,429,270
  • Balance Sheet Highlights (Post-JV consolidation)
MetricDec 31, 2023Mar 31, 2024
Cash & Equivalents ($USD)$375,796 $37,429,270
Goodwill ($USD)— $247,233,000
In-Process R&D ($USD)— $365,300,000
Non-Controlling Interests ($USD)— $612,506,618
Earnout Shares Liability ($USD)— $61,393,000
Subject Vesting Shares Liability ($USD)— $14,217,000
True Up Shares Liability ($USD)— $286,000
  • Segment breakdown and KPIs: Not applicable; no revenue recognized and no segment reporting in Q1 2024 .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue, EPS, Margins, OpEx, Tax RateFY/Q2/Q3/Q4 2024NoneNone issuedMaintained (no guidance)
AirJoule JV Capital ContributionsMulti-yearN/AUp to $90M additional (after $10M at close), subject to business plans and budgetsNew commitment framework

Note: The company did not provide quantitative revenue, margin, or EPS guidance for Q1 or FY 2024 in filings/press materials .

Earnings Call Themes & Trends

(Transcript unavailable; investor webcast link provided.)

TopicPrevious Mentions (Q4 2023 / Transaction)Current Period (Q1 2024)Trend
Capitalization/ListingClosed business combination; exceeded $50M minimum cash; set to trade as AIRJ/AIRJW Listed; $37.43M cash; working capital ~$26.2M Strengthened liquidity post-close
Partnerships (Carrier)Binding term sheets; board seat right for Carrier Commercialization term sheets for Americas, Europe, India, Middle East Execution steps toward commercialization
JV (GE Vernova)JV announced JV closed; consolidated; IPR&D and goodwill recognized; CEO appointed Operationalizing JV; R&D support
Commercialization/RevenueSPAC close; pre-commercial Pre-revenue; no segment sales; focus on prototypes/pilots Pre-revenue status maintained
Governance/ManagementNew board elected; Carrier’s Agrawal added; executives named Expanded management team (CFO, CLO, IR/Finance) in May Organizational build-out
Risk/ControlsShell to operating company transition Material weakness in ICFR over complex accounting/VIE; remediation planned Controls enhancement underway

Management Commentary

  • CEO Matt Jore: “This represents a critical milestone… partnerships with GE Vernova and Carrier… open our company and technology into two enormous target markets, HVAC and atmospheric water harvesting” .
  • Executive Chairman Pat Eilers: AirJoule “provides significant energy efficiency gains… addresses energy efficiency and water scarcity” .
  • JV status: GE Vernova’s Advanced Research team supporting; Bryan Barton leads JV, focusing on team expansion, prototypes, and pilot projects for HVAC components and atmospheric water harvesting .

Q&A Highlights

  • No public transcript available; company directed investors to an earnings call webcast without published transcript in filings. Themes primarily reflected in the press release and 10-Q (capitalization, partnerships, JV, liquidity) .

Estimates Context

  • Wall Street consensus estimates via S&P Global were unavailable (no CIQ mapping for XPDB/AIRJ at the time of query). As a newly listed, pre-revenue company, formal coverage may be limited. Expect models to focus on commercialization timelines and JV-driven ramp rather than near-term EPS [GetEstimates error noted].

Key Takeaways for Investors

  • Pre-revenue, execution-heavy story: near-term value drivers are commercialization milestones with Carrier and GE Vernova, prototype performance, and initial pilot wins rather than quarterly financials .
  • Balance sheet is adequate for current plans, but JV capital contributions (up to $90M) could necessitate future financing depending on pace of build-out; monitor capital raises and dilution .
  • Non-cash liabilities from earnout, subject vesting, and true-up shares introduce earnings volatility absent revenue; focus on cash burn ($5.44M operating outflow in Q1) and runway .
  • Governance and partnerships are strong signals (Carrier board representation; GE Vernova JV leadership), improving commercialization prospects and validation of AirJoule technology .
  • Control and reporting remediation (material weakness over complex accounting/VIE) is underway; successful remediation supports credibility for future capital markets interactions .
  • Without guidance or consensus estimates, catalysts are strategic updates: JV progress, pilot conversions, manufacturing line plans, and regulatory/market validations .
  • Trading implication: stock likely reacts to tangible commercialization updates and financing clarity rather than quarterly P&L; position sizing should reflect execution risk and potential capital needs .