AirJoule Technologies Corp. 10-Q Summary
Business Context and Reporting Period
This report covers the quarterly period ended June 30, 2026. AirJoule Technologies Corp. is an advanced technology company developing sorption technologies to produce pure distilled water from air. The company operates as a single segment and is currently in a pre-commercialization phase, focusing on productization, manufacturing scale-up, and strategic partnerships, including a 50/50 joint venture with GE Vernova Inc. (AirJoule, LLC) and a commercial partnership with Carrier Global Corporation.
Key Financial Metrics
| Metric | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
|---|---|---|
| Revenue | $0 | $0 |
| Net Loss | $(58,359,106) | $17,391,871 (Net Income) |
| Loss from Operations | $(7,722,813) | $(7,353,117) |
| Cash and Cash Equivalents | $41,417,134 | $30,502,711 |
| Working Capital | $41,000,000 (approx.) | N/A |
| Net Cash Used in Operating Activities | $(3,759,952) | $(2,163,485) |
| Net Cash Provided by Financing Activities | $35,848,137 | $14,655,824 |
| Investment in AirJoule, LLC | $263,498,454 | $316,657,273 |
Material Changes vs. Prior Period
- Significant Net Loss: The company reported a net loss of $58.4 million for the six months ended June 30, 2026, compared to net income of $17.4 million in the same period in 2025. This reversal is primarily driven by a $65.7 million equity loss from the investment in AirJoule, LLC.
- Impairment Charges: The equity loss in the joint venture was caused by significant impairment charges recorded by AirJoule, LLC in Q1 2026: $110.3 million for in-process R&D and $76.1 million for goodwill. AirJoule's share of these impairments was recorded as an equity loss.
- Equity Liability Fair Value: The company recognized losses of $1.0 million and $2.3 million related to changes in the fair value of Earnout Shares and Subject Vesting Shares liabilities, respectively, driven by an increase in the company's stock price. In the prior year, these items resulted in gains.
- Capital Contributions: The company contributed an additional $12.5 million to the AirJoule JV during the period. A subsequent event in August 2026 noted an additional $3.5 million contribution.
- Out-of-Period Adjustment: Management identified an error regarding a $5.0 million contribution to the JV attributable to GE Vernova. This was reclassified from an investment increase to an expense, increasing the equity loss for Q1 2026 by $5.0 million.
Guidance, Outlook, and Risks
- Commercialization Timeline: The company anticipates commercial sales to begin in late 2026. Field testing and demonstrations are ongoing in Texas, Arizona, Dubai, and at the GE Vernova Advanced Research Center.
- Liquidity: As of June 30, 2026, the company held $41.4 million in cash. Management expects existing resources and proceeds from recent offerings to fund operations and JV contributions for at least the next twelve months. However, future capital requirements may necessitate additional financing.
- Recent Capital Raises:
- January 2026 Offering: Net proceeds of $21.6 million.
- June 2026 Offering: Net proceeds of approximately $14.2 million.
- Material Weakness in Internal Controls: The company identified a material weakness in internal control over financial reporting related to the failure to adequately account for complex, non-routine transactions (specifically the JV contribution error). Remediation efforts are underway.
- Risks: Key risks include the early-stage nature of the business, dependence on external capital, the success of the joint venture, and the potential for further goodwill or asset impairments if commercialization targets are not met.
Investor Verification Checklist
- Impairment Validity: Verify the assumptions used by AirJoule, LLC for the $186.4 million total impairment (R&D and Goodwill) and the likelihood of future impairments.
- JV Capital Commitments: Confirm the remaining $64.8 million capital contribution commitment to the AirJoule JV and the company's ability to fund it without further dilution.
- Internal Control Remediation: Monitor the progress of remediation for the material weakness in internal controls to ensure future financial reporting accuracy.
- Commercial Sales Progress: Track the timeline for the anticipated late 2026 commercial sales and the results of the Kubota and GE Vernova deployments.
- Equity Liability Volatility: Assess the impact of stock price fluctuations on the fair value of Earnout and Subject Vesting Shares liabilities, which significantly impact net income/loss.