Home Business Wire Momentus Inc. Announces Second Quarter 2023 Financial Results

Momentus Inc. Announces Second Quarter 2023 Financial Results

SAN JOSE, Calif.–(BUSINESS WIRE)–Momentus Inc. (NASDAQ: MNTS) (“Momentus” or the “Company”), a U.S. commercial space company that offers satellite buses, transportation, and other in-space infrastructure services, today announced its financial results for the second quarter of 2023.


“The second quarter marks our first million-dollar quarter with the successful deployment of commercial customers from our Vigoride-6 mission contributing to the recognition of $1.7 million in revenue,” said Momentus Chief Executive Officer John Rood. “We continue to build interest with customers, particularly in the Department of Defense, and we recently signed a contract with the Space Development Agency to tailor our space vehicles for their future use.”

“The flexibility, payload capacity, and power available on the Vigoride Orbital Service Vehicle (OSV) make it well-positioned to support a range of national security missions like space situational awareness, surveillance, reconnaissance, and other priorities,” said Rood. “We’re also proud to continue to build on our flight heritage with our M-1000 satellite bus which is based on the Vigoride OSV and draws on its flight heritage. The M-1000 bus offers significant advantages to commercial and government customers such as its high power – up to 3 kW of peak power – large payload capacity, flexible configuration, speed from requirements to delivery on-orbit, and low cost. Momentus possesses the capability to manufacture satellite buses like the M-1000 at a rapid and scalable pace.”

“Our goal remains to be a market leader in satellite buses and in-space transportation and infrastructure services for U.S. government and commercial customers, and we’re excited by the progress we’re seeing,” said Rood.

Second Quarter 2023 Business Highlights:

  • In Q2 2023, Momentus grew total revenue by 3,310% year over year to $1.7 million. This exceeds revenue growth the Company has experienced in any previous quarters and is a key milestone for the business.
  • The Company has been working to raise additional capital while pursuing and evaluating strategic alternatives. To that end, the Company engaged Deutsche Bank as its financial advisor.
  • Momentus has signed a contract with FOSSA Systems to provide hosted payload services starting in 2024. Momentus provided orbital delivery services to FOSSA on the inaugural mission of Vigoride in 2022 and most recently provided mission management and integration support for the launch of the FOSSA FEROX-1 satellite in June 2023. We’re pleased that FOSSA has selected Momentus again to support its growing needs and the innovation they are bringing to the market. They are a valued repeat customer.
  • In Q2 2023, Momentus deployed all customer payloads from Vigoride-6 that launched in April 2023. This includes the REVELA payload for ARCA Dynamics, the VIREO CubeSat for C3S LLC., the DISCO-1 CubeSat for Aarhus University, and the IRIS-C payload for an Asian customer booked through ISILAUNCH.
  • During the Vigoride-6 mission, Momentus also deployed two CubeSats into Low-Earth Orbit as part of the NASA LLITED (Low-Latitude Ionosphere/Thermosphere Enhancements in Density) mission. These two CubeSats were released from the Vigoride OSV and NASA has confirmed the two CubeSats are functional, and the team will be able to operate the science instruments onboard.
  • To date, Momentus has placed three Vigoride Orbital Service Vehicles in Low-Earth Orbit, deployed 15 customer satellites, and is providing ongoing hosted payload support for Caltech’s Solar Power Project Demonstrator mission that recently demonstrated its ability to wirelessly transmit power in space and to beam detectable power to Earth.
  • In addition to the Vigoride Orbital Service Vehicle, Momentus is now also offering its M-1000 satellite bus. With a growing demand for satellite bus services, Momentus is positioned to advance its hardware and flight-proven technology for this market. The M-1000 bus is a flexible option to meet a variety of mission requirements. Innovations to improve sensor capability, maneuverability, increased power, and overall lower costs are integrated into the product. Momentus possesses the capability to manufacture satellite buses like the M-1000 at a rapid and scalable pace.
  • Momentus signed a contract for a Small Business Innovation Research award from the Space Development Agency. The first contract action is valued at $746,073. We expect it will be followed by a contract modification to add an additional $1,196,404 at a later date. The scope of work is focused on tailoring the underlying platform used for the Vigoride Orbital Service Vehicle and M-1000 satellite bus to meet SDA mission requirements for future missions.
  • Momentus submitted a bid to the SDA for the Tranche 2 Transport Layer Alpha program to build 50 satellites. Under this proposal to the SDA, Momentus is the prime contractor with a strong team of traditional and non-traditional peers.
  • Momentus submitted a proposal to the Defense Innovation Unit (DIU) for novel approaches to operationally responsive space. This project requires precise point-to-point delivery of cargo in a cost-effective manner at scale, a need for which the Company’s capabilities and technology are well-suited.
  • Momentus’ next mission is planning to deliver customers to orbit during the SpaceX Transporter-9 mission, which is targeted to launch no earlier than November 2023. The Company has space reserved on every SpaceX Transporter mission through the end of 2024 and is actively booking customers.

Conference Call Information

Momentus Inc. will host a conference call to discuss its financial results today, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). To access the conference call, participants should dial +1 (800) 715-9871 and enter the conference ID number 3108190. International participants should dial +1 (646) 307-1963. The live audio webcast along with supplemental information will be accessible on the Company’s Investor Relations website at https://investors.momentus.space. A recording of the webcast will also be available following the conference call.

About Momentus Inc.

Momentus is a U.S. commercial space company that offers commercial satellite buses and in-space infrastructure services, including in-space transportation, hosted payloads, and in-orbit services.

Forward-Looking Statements

This press release contains certain statements which may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding Momentus or its management team’s expectations, hopes, beliefs, intentions or strategies regarding the future, projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, and are not guarantees of future performance. The words “may,” “will,” “anticipate,” “believe,” “expect,” “continue,” “could,” “estimate,” “future,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “aim,” “strive,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions.

Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of Momentus’ control. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: the ability of the Company to generate revenue and raise capital in order to continue as a going concern; the ability of the Company to obtain licenses and government approvals for its missions, which are essential to its operations; the ability of the Company to effectively market and sell satellite transport services and planned in-orbit services; the ability of the Company to protect its intellectual property and trade secrets; the development of markets for satellite transport and in-orbit services; the ability of the Company to develop, test and validate its technology, including its water plasma propulsion technology; delays or impediments that the Company may face in the development, manufacture and deployment of next generation satellite transport systems; the ability of the Company to convert backlog or inbound inquiries into revenue; changes in applicable laws or regulations and extensive and evolving government regulations that impact operations and business, including export control license requirements; the ability to attract or maintain a qualified workforce with the required security clearances and requisite skills; product service or product or launch failures or delays that could lead customers to use competitors’ services; investigations, claims, disputes, enforcement actions, litigation and/or other regulatory or legal proceedings; the Company’s ability to comply with the terms of its National Security Agreement and any related compliance measures instituted by the director who was approved by the CFIUS Monitoring Agencies; the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; and/or other risks and uncertainties. These are only some of the factors that may affect the forward-looking statements contained in this press release. For a discussion identifying additional important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, see the company’s filings with the U.S. Securities and Exchange Commission including, but not limited to, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The Company’s filings may be accessed through the Investor Relations page of its website, investors.momentus.space, or through the website maintained by the SEC at www.sec.gov. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

Second Quarter 2023 Financial Results

MOMENTUS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(in thousands, except share data)

 

 

Three Months Ended
June 30,

 

Six Months Ended

June 30,

 

2023

 

2022

 

2023

 

2022

Service revenue

$

1,705

 

 

$

50

 

 

$

1,727

 

 

$

50

 

Cost of revenue

 

388

 

 

 

12

 

 

 

388

 

 

 

12

 

Gross profit

 

1,317

 

 

 

38

 

 

 

1,339

 

 

 

38

 

Operating expenses:

 

 

 

 

 

 

 

Research and development expenses

 

10,204

 

 

 

10,896

 

 

 

20,323

 

 

 

20,867

 

Selling, general and administrative expenses

 

10,007

 

 

 

12,861

 

 

 

20,277

 

 

 

27,714

 

Total operating expenses

 

20,211

 

 

 

23,757

 

 

 

40,600

 

 

 

48,581

 

Loss from operations

 

(18,894

)

 

 

(23,719

)

 

 

(39,261

)

 

 

(48,543

)

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

Change in fair value of warrant liability

 

451

 

 

 

2,254

 

 

 

338

 

 

 

1,803

 

Realized loss on disposal of asset

 

(17

)

 

 

1

 

 

 

(17

)

 

 

(69

)

Interest income

 

357

 

 

 

5

 

 

 

912

 

 

 

5

 

Interest expense

 

(732

)

 

 

(1,413

)

 

 

(1,652

)

 

 

(2,905

)

Litigation settlement, net

 

 

 

 

 

 

 

 

 

 

3

 

Other income

 

 

 

 

 

 

 

20

 

 

 

 

Total other income (expense)

 

59

 

 

 

847

 

 

 

(399

)

 

 

(1,163

)

Net loss

$

(18,835

)

 

$

(22,872

)

 

$

(39,660

)

 

$

(49,706

)

Net loss per share, basic

$

(0.20

)

 

$

(0.28

)

 

$

(0.43

)

 

$

(0.62

)

Net loss per share, fully diluted

$

(0.20

)

 

$

(0.28

)

 

$

(0.43

)

 

$

(0.62

)

Weighted average shares outstanding, basic

 

95,978,588

 

 

 

81,319,533

 

 

 

91,791,957

 

 

 

80,642,670

 

Weighted average shares outstanding, fully diluted

 

95,978,588

 

 

 

81,319,533

 

 

 

91,791,957

 

 

 

80,642,670

 

MOMENTUS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

 

June 30,
2023

 

December 31,
2022

 

(unaudited)

 

 

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

21,298

 

 

$

61,094

 

Restricted cash, current

 

488

 

 

 

1,007

 

Accounts receivable

 

434

 

 

 

 

Insurance receivable

 

4,000

 

 

 

4,000

 

Prepaids and other current assets

 

6,771

 

 

 

10,173

 

Total current assets

 

32,991

 

 

 

76,274

 

Property, machinery and equipment, net

 

3,605

 

 

 

4,016

 

Intangible assets, net

 

335

 

 

 

337

 

Operating right-of-use asset

 

5,903

 

 

 

6,441

 

Deferred offering costs

 

468

 

 

 

331

 

Restricted cash, non-current

 

366

 

 

 

312

 

Other non-current assets

 

5,048

 

 

 

4,712

 

Total assets

$

48,716

 

 

$

92,423

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Accounts payable

$

2,498

 

 

$

2,239

 

Accrued liabilities

 

6,785

 

 

 

8,026

 

Loan payable, current

 

8,702

 

 

 

11,627

 

Contract liabilities, current

 

1,237

 

 

 

1,654

 

Operating lease liability, current

 

1,210

 

 

 

1,153

 

Stock repurchase liability

 

 

 

 

10,000

 

Litigation settlement contingency

 

8,500

 

 

 

8,500

 

Other current liabilities

 

24

 

 

 

27

 

Total current liabilities

 

28,956

 

 

 

43,226

 

Contract liabilities, non-current

 

794

 

 

 

1,026

 

Loan Payable, non-current

 

 

 

 

2,404

 

Warrant liability

 

226

 

 

 

564

 

Operating lease liability, non-current

 

5,506

 

 

 

6,131

 

Other non-current liabilities

 

477

 

 

 

465

 

Total non-current liabilities

 

7,003

 

 

 

10,590

 

Total liabilities

 

35,959

 

 

 

53,816

 

Commitments and Contingencies (Note 12)

 

 

 

Stockholders’ equity:

 

 

 

Common stock, $0.00001 par value; 250,000,000 shares authorized and 97,865,351 issued and outstanding as of June 30, 2023; 250,000,000 shares authorized and 84,441,153 issued and outstanding as of December 31, 2022

 

1

 

 

 

1

 

Additional paid-in capital

 

356,543

 

 

 

342,733

 

Accumulated deficit

 

(343,787

)

 

 

(304,127

)

Total stockholders’ equity

 

12,757

 

 

 

38,607

 

Total liabilities and stockholders’ equity

$

48,716

 

 

$

92,423

 

MOMENTUS INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(in thousands)

 

 

Six Months Ended
June 30,

 

2023

 

2022

Cash flows from operating activities:

 

 

 

Net loss

$

(39,660

)

 

$

(49,706

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

Depreciation and amortization

 

452

 

 

 

578

 

Amortization of debt discount and issuance costs

 

890

 

 

 

1,462

 

Amortization of right-of-use asset

 

537

 

 

 

613

 

Change in fair value of warrant liability

 

(338

)

 

 

(1,803

)

Loss on disposal of property, machinery, equipment and intangible assets

 

17

 

 

 

69

 

Stock-based compensation expense

 

4,297

 

 

 

5,247

 

Non-cash consulting expense

 

112

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivables

 

(434

)

 

 

 

Prepaids and other current assets

 

3,401

 

 

 

1,914

 

Other non-current assets

 

(337

)

 

 

(585

)

Accounts payable

 

258

 

 

 

(742

)

Accrued liabilities

 

(1,298

)

 

 

(2,555

)

Accrued interest

 

79

 

 

 

53

 

Other current liabilities

 

1

 

 

 

(6

)

Contract liabilities

 

(648

)

 

 

133

 

Lease liability

 

(569

)

 

 

(626

)

Other non-current liabilities

 

12

 

 

 

11

 

Net cash used in operating activities

 

(33,228

)

 

 

(45,943

)

 

 

 

 

Cash flows from investing activities:

 

 

 

Purchases of property, machinery and equipment

 

(53

)

 

 

(488

)

Proceeds from sale of property, machinery and equipment

 

63

 

 

 

7

 

Purchases of intangible assets

 

(25

)

 

 

(464

)

Net cash used in investing activities

 

(15

)

 

 

(945

)

 

 

 

 

Cash flows from financing activities:

 

 

 

Proceeds from exercise of stock options

 

130

 

 

 

393

 

Proceeds from employee stock purchase plan

 

31

 

 

 

190

 

Repurchase of Section 16 Officer shares for tax coverage exchange

 

(60

)

 

 

(97

)

Principal payments on loan payable

 

(6,298

)

 

 

(3,763

)

Payment of deferred offering costs

 

(121

)

 

 

 

Payment for repurchase of common shares

 

(10,000

)

 

 

 

Proceeds from issuance of common stock and related warrants

 

10,000

 

 

 

 

Payments for issuance costs related to common stock and related warrants

 

(700

)

 

 

 

Net cash used in financing activities

 

(7,018

)

 

 

(3,277

)

 

 

 

 

Decrease in cash, cash equivalents and restricted cash

 

(40,261

)

 

 

(50,165

)

Cash, cash equivalents and restricted cash, beginning of period

 

62,413

 

 

 

160,547

 

Cash, cash equivalents and restricted cash, end of period

$

22,152

 

 

$

110,382

 

 

 

 

 

Supplemental disclosure of non-cash investing and financing activities

 

 

 

Purchases of property, machinery and equipment in accounts payable and

$

41

 

 

$

 

Deferred offering costs in accounts payable and accrued expenses at period

$

16

 

 

$

 

Stock repurchase liability fair value

$

 

 

$

5,780

 

 

 

 

 

Supplemental disclosure of cash flow information

 

 

 

Cash paid for interest

$

684

 

 

$

1,392

 

Reclassifications

Certain reclassifications have been made to the prior year’s financial statements to conform to the current year’s presentation. None of the reclassifications have changed the total assets, liabilities, shareholders’ deficit, income, expenses or net losses previously reported.

Use of Non-GAAP Financial Measures (unaudited)

This press release references certain non-GAAP financial measures, including adjusted EBITDA, non-GAAP selling, general, and administrative expense and non-GAAP research and development expense. The Company defines adjusted EBITDA as earnings before interest expense, taxes, depreciation and amortization, stock-based compensation, and certain other items the Company believes are not indicative of its core operating performance. The Company defines non-GAAP selling, general, and administrative expenses and research and development expenses as those respective GAAP amounts, excluding stock-based compensation and non-recurring items not indicative of core operating performance None of these non-GAAP financial measures is a substitute for or superior to measures of financial performance prepared in accordance with generally accepted accounting principles in the United States (GAAP) and should not be considered as an alternative to any other performance measures derived in accordance with GAAP.

The Company believes that presenting these non-GAAP financial measures provides useful supplemental information to investors about the Company that is helpful in understanding and evaluating its operating results, enhancing the overall understanding of its past performance and future prospects, and allowing for greater transparency with respect to key financial metrics used by its management in financial and operational-decision making. However, there are a number of limitations related to the use of non-GAAP measures and their nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently, or may use other measures to calculate their financial performance, and therefore any non-GAAP measures the Company uses may not be directly comparable to similarly titled measures of other companies.

Quarterly adjusted EBITDA

A reconciliation of adjusted EBITDA to net loss for the three months ended June 30, 2023, June 30, 2022, and March 31, 2023, is set forth below:

 

Three Months Ended

(in thousands)

June 30, 2023

 

June 30, 2022

 

March 31, 2023

Net loss

$

(18,835

)

 

$

(22,872

)

 

$

(20,825

)

Interest income

 

(357

)

 

 

(5

)

 

 

(555

)

Interest expense

 

732

 

 

 

1,413

 

 

 

920

 

Depreciation & amortization

 

223

 

 

 

284

 

 

 

229

 

EBITDA

 

(18,237

)

 

 

(21,180

)

 

 

(20,231

)

Change in fair value of warrant liability

 

(451

)

 

 

(2,254

)

 

 

112

 

Realized loss on disposal of assets

 

17

 

 

 

(1

)

 

 

 

Prepaid launch deposit impairment

 

 

 

 

 

 

 

514

 

SEC and CFIUS legal expenses

 

177

 

 

 

505

 

 

 

85

 

Class action litigation legal expenses

 

24

 

 

 

600

 

 

 

110

 

Other non-recurring litigation legal expense

 

756

 

 

 

170

 

 

 

1,219

 

SEC compliance costs

 

327

 

 

 

36

 

 

 

99

 

NSA compliance costs

 

398

 

 

 

832

 

 

 

465

 

Severance and other non-recurring expenses1

 

 

 

 

7

 

 

 

122

 

Stock-based compensation

 

2,577

 

 

 

3,035

 

 

 

1,720

 

Adjusted EBITDA

$

(14,412

)

 

$

(18,250

)

 

$

(15,785

)

1 – Loss contingencies for certain severance agreements were reversed when the Company determined they would not be signed and paid

A reconciliation of selling, general, and administrative expenses to non-GAAP selling, general, and administrative expenses for the three months ended June 30, 2023, June 30, 2022, and March 31, 2023, is set forth below:

 

Three Months Ended

(in thousands)

June 30, 2023

 

June 30, 2022

 

March 31, 2023

Selling, general, and administrative expenses

$

10,007

 

$

12,861

 

$

10,270

Stock-based compensation

 

1,896

 

 

2,521

 

 

1,244

SEC and CFIUS legal expenses

 

177

 

 

505

 

 

85

Class action litigation legal expenses

 

24

 

 

600

 

 

110

Other non-recurring litigation legal expense

 

756

 

 

170

 

 

1,219

SEC compliance costs

 

327

 

 

36

 

 

99

NSA compliance costs

 

398

 

 

832

 

 

465

Non-GAAP selling, general, administration expenses

$

6,429

 

$

8,190

 

$

7,048

1 – Loss contingencies for certain severance agreements were reversed when the Company determined they would not be signed and paid

A reconciliation of research and development expenses to non-GAAP research and development expenses for the three months ended June 30, 2023, June 30, 2022, and March 31, 2023, is set forth below:

 

Three Months Ended

(in thousands)

June 30, 2023

 

June 30, 2022

 

March 31, 2023

Research and development expenses

$

10,204

 

$

10,896

 

$

10,119

Prepaid launch deposit impairment

 

 

 

 

 

514

Stock-based compensation

 

681

 

 

514

 

 

476

Severance and non-recurring expenses1

 

 

 

 

 

122

Non-GAAP Research and development expenses

$

9,523

 

$

10,382

 

$

9,007

1 – Loss contingencies for certain severance agreements were reversed when the Company determined they would not be signed and paid

Contacts

For media inquiries:
press@momentus.space

For investor relations inquiries:
investors@momentus.space

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