Group 1 - Intuitive Machines (NASDAQ: LUNR) is positioned for significant growth by focusing on Department of Defense contracts, which may lead to contract awards as part of the Golden Dome initiative [1] - The company is exploring various opportunities that could enhance its market position and revenue potential [1] Group 2 - The article highlights the importance of considering the entire investment ecosystem rather than evaluating a company in isolation [1]

Core Viewpoint - Intuitive Machines' stock has seen a significant increase despite missing earnings, and it is now considered cheap enough to buy, with a 20% rise since the Q1 earnings report [1]. Financial Performance - In Q1, Intuitive Machines reported a loss of $0.11 per share, an improvement from a loss of $2.68 per share in the same quarter last year [3]. - Sales for Q1 were $62.5 million, down 15% year-over-year, but are projected to rebound by 10% in Q2 [3]. - The company generated positive free cash flow of $13.3 million in Q1, the first occurrence in over two years, although analysts expect cash burn in the next three quarters totaling $15 million [4][5]. Long-term Prospects - Intuitive Machines is becoming a key contractor for NASA, having secured four "IM" missions to the moon, with two completed and two scheduled for 2026 and 2027 [7]. - The company has faced challenges with its landers, but management is addressing these issues for future missions, and NASA is satisfied enough to provide success payments for the IM-2 mission [8]. - Intuitive Machines is also working on a $4.8 billion Near Space Network contract, which is expected to generate approximately $480 million in annual revenue over the next decade [9]. Stock Valuation - The stock price has increased significantly post-earnings, currently around $11, which is nearly double the price paid previously [10]. - Despite being down about 50% from its all-time high in January, the stock is still considered to be at the high end of fair value for an unprofitable space stock, priced at 4.1 times trailing sales [11][12].

Core Viewpoint - Intuitive Machines stock experienced a significant surge post-earnings report, but concerns arise regarding its future performance and valuation after the initial excitement fades [2][11]. Financial Performance - Intuitive Machines reported Q1 revenue of $62.5 million, which fell short of Wall Street's expectations of $66.1 million and represented a 15% decline from $73.2 million in Q1 2024 [4]. - The company incurred operating costs of $72.6 million, resulting in an operating loss of $10.1 million for Q1, with a net loss of $11.4 million or $0.11 per share [5]. - Despite the losses, Intuitive Machines generated positive operating cash flow of $19.4 million and positive free cash flow of $13.3 million for the first time in nearly two years [6]. Future Outlook - Analysts predict that Intuitive Machines may continue to burn cash this year but expect losses to be less than $2 million, with potential revenue from "IM-2 success payments" in Q2 [8]. - The company forecasts total revenue between $250 million and $300 million for the year, aligning with analyst expectations [8]. - Intuitive Machines aims to achieve positive full-year free cash flow by 2025, which is three years earlier than previously anticipated by Wall Street [12]. Key Projects - The next moon landing, IM-3, is scheduled for the first half of next year, incorporating lessons learned from previous missions [9]. - Intuitive Machines is progressing on a $4.8 billion contract to build a Near Space Network for satellite communication, having completed two milestones and received funding for two more [10][12].

Core Insights - The space exploration industry has shifted from government dominance to private sector involvement, with companies like SpaceX and Blue Origin leading the way [1] - Intuitive Machines is a notable player in the commercial space sector, having successfully landed a lunar lander on the moon, marking a significant milestone for American space exploration [2][5] - The global space economy is projected to reach $1.8 trillion by 2035, presenting substantial growth opportunities for companies like Intuitive Machines [3] Company Overview - Intuitive Machines specializes in lunar exploration and infrastructure, providing transportation and delivery services to the moon [5] - The company has been involved in NASA's Commercial Lunar Payload Services (CLPS) program, with its lunar lander Odysseus completing the first mission to collect scientific data [6] - The IM-2 mission utilized the Athena lunar lander to analyze the moon's surface, although it faced challenges during landing [7][8] Future Prospects - Intuitive Machines has secured multiple contracts with NASA, including a $30 million contract for a lunar terrain vehicle and a potential $4.82 billion contract for deploying lunar relay satellites [10][11] - The company plans to launch additional missions, including IM-3 and IM-4, scheduled for 2026 and 2027 respectively [12] - Analysts project Intuitive Machines' revenue to grow to $545 million by 2028, although significant losses are anticipated, with earnings per share expected to be negative $3.23 [13] Market Position - The stock of Intuitive Machines has experienced volatility, currently down 55% from its 52-week high, trading at approximately 4.7 times forward sales [15] - Compared to other emerging space companies, Intuitive Machines has a lower valuation, with competitors trading at much higher multiples [15] - Despite being early in its growth trajectory, Intuitive Machines has made notable progress and continues to receive trust from NASA, which could support its future growth in the expanding space economy [16]

Core Investment Philosophy - Investing in the stock market requires extraordinary patience, as demonstrated by Warren Buffett's transformation of Berkshire Hathaway from a struggling textile company into a diversified holding company, resulting in a $1,000 investment in 1965 being worth over $42 million today, showcasing the power of compounding returns over time [1] Growth Companies - The lesson emphasizes that when a genuine winner is found, it is crucial to resist the urge to sell, as small growth companies can evolve into mid-cap powerhouses and eventually stable, dividend-paying large caps, creating significant wealth for patient shareholders [2] Company Highlights - **Intuitive Machines**: Dominates the lunar economy with successful Moon landings and exclusive contracts, positioned to benefit from the developing multitrillion-dollar space economy as lunar missions accelerate [5] - **Palantir Technologies**: Leverages AI to solve complex data problems for governments and Fortune 500 companies, with its Artificial Intelligence Platform driving explosive commercial growth and creating high-margin revenue streams [6] - **Rocket Lab USA**: Provides end-to-end space solutions, capturing multiple revenue streams across the space value chain, with a reliable rocket and expanding reusability program for the small satellite market [7] - **Serve Robotics**: Leads in autonomous delivery with sidewalk robots generating revenue in major cities, partnered with Uber to enhance distribution and address last-mile delivery challenges [8] - **Archer Aviation**: Pioneers electric vertical takeoff and landing aircraft for urban air mobility, with a $6 billion order backlog and partnerships with major operators, aiming to transform urban transportation [9] - **Joby Aviation**: Complements Archer in the eVTOL space with advanced aircraft technology and a partnership with Toyota, achieving significant regulatory milestones and operational testing [10] - **Rigetti Computing**: Develops quantum computing systems with cloud-based access, positioned at the forefront of the quantum computing race, offering exposure to a technology that could revolutionize various fields [11]

Core Viewpoint - Intuitive Machines has a promising future despite recent financial challenges, driven by successful lunar landings, new contracts, and optimistic guidance for the upcoming years [1][2]. Financial Performance - For Q1 2025, Intuitive Machines reported a revenue decline of 14% year-over-year to $62.5 million, surpassing analysts' expectations by $3.1 million [1]. - The operating loss increased from $2.8 million to $10.1 million, but was better than the consensus forecast of an $11.2 million loss [1]. Achievements and Contracts - The company successfully completed two lunar landings for NASA, with the first Nova-C lander (IM-1) landing on February 22, 2024, and the second (IM-2) on March 6, 2025 [4][5][6]. - Intuitive Machines has secured a $2.5 million contract from NASA for a heavy cargo lunar lander, part of the Moon-to-Mars Architecture project, along with other significant contracts totaling up to $4.8 billion [8]. - The company is also involved in NASA's Commercial Lunar Payload Services (CLPS) contracts, with plans to launch additional landers (IM-3 in October 2025 and IM-4 in 2027) [9]. Future Outlook - For 2025, Intuitive Machines anticipates revenue growth of 10% to 32%, projecting total revenue between $250 million and $300 million, aligning with analysts' expectations [10]. - The company expects to achieve a positive adjusted EBITDA run rate in 2025, with a forecasted positive adjusted EBITDA of $35 million in 2026 [11]. - The enterprise value is estimated at $805 million, indicating a valuation of 2 times next year's sales and 23 times its adjusted EBITDA, suggesting a sustainable business model compared to peers [12]. Market Position - Intuitive Machines is becoming NASA's preferred partner for lunar landings and space exploration contracts, indicating a stronger market position compared to competitors [14].

Group 1 - Intuitive Machines (NASDAQ: LUNR) reported positive free cash flow in Q1 2025, surprising Wall Street [1] - Following the announcement, LUNR's stock experienced a 22.4% gain, although it remains below its January highs [1] - The Aerospace Forum, led by an analyst with a background in aerospace engineering, focuses on identifying investment opportunities in the aerospace, defense, and airline sectors [1] Group 2 - The investing group provides access to data analytics monitors to support investment analysis [1] - The analyst has a beneficial long position in LUNR shares, indicating confidence in the company's future performance [1]

Company Performance - Intuitive Machines, Inc. reported a quarterly loss of $0.20 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.10, and compared to a loss of $0.21 per share a year ago, indicating a significant earnings surprise of -100% [1] - The company posted revenues of $62.52 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 5.23%, but down from $73.07 million in the same quarter last year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - Intuitive Machines, Inc. shares have declined approximately 47.7% since the beginning of the year, contrasting with the S&P 500's decline of only -0.6% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.04 on revenues of $68.36 million, and for the current fiscal year, it is -$0.23 on revenues of $271.21 million [7] Industry Outlook - The Aerospace - Defense industry, to which Intuitive Machines, Inc. belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact the stock's performance [5]

FORM 10-Q Filing Information [Registrant Information](index=1&type=section&id=Registrant%20Information) This section details Intuitive Machines, Inc.'s (LUNR) official filing information, confirming its status as a smaller reporting and emerging growth company Condensed Consolidated Balance Sheets (in thousands) | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :------------------ | :---------------- | :-------------------------------------- | | Class A Common Stock, par value $0.0001 per share | LUNR | The Nasdaq Stock Market LLC | - The registrant is a smaller reporting company and an emerging growth company, having filed all required reports during the preceding 12 months[3](index=3&type=chunk) Outstanding Shares [Common Stock Outstanding as of May 8, 2025](index=2&type=section&id=Common%20Stock%20Outstanding%20as%20of%20May%208%2C%202025) As of May 8, 2025, Intuitive Machines, Inc. reported total outstanding shares for Class A and Class C common stock Common Stock Outstanding as of May 8, 2025 | Class of Stock | Par Value | Shares Outstanding | | :--------------- | :-------- | :----------------- | | Class A Common Stock | $0.0001 | 117,330,851 | | Class B Common Stock | $0.0001 | 0 | | Class C Common Stock | $0.0001 | 61,301,804 | Table of Contents [Report Structure](index=3&type=section&id=Report%20Structure) The Table of Contents outlines the Quarterly Report's two main parts: Financial Information and Other Information, detailing specific items and page numbers - The report is divided into two main parts: Part I for Financial Information and Part II for Other Information, detailing specific items and their corresponding page numbers[6](index=6&type=chunk) Cautionary Note Regarding Forward-Looking Statements [Forward-Looking Statements and Risk Factors](index=4&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) This section highlights forward-looking statements are subject to risks and uncertainties, including reliance on personnel, limited operating history, customer concentration, and market growth failure - The report contains forward-looking statements regarding missions, demand, financial performance, and business strategy, which are subject to material risks and uncertainties[8](index=8&type=chunk) - Key risk factors include: * Reliance on key personnel and Board of Directors * Limited operating history and failure to manage growth or win new contracts * Customer concentration and competition * Safety performance of spaceflight systems or security incidents * Failure of the commercial spaceflight market to achieve expected growth * Delayed launches, mission failures, or increased costs * Reliance on a single launch service provider and risks associated with commercial spaceflight * Failure to protect trade secrets and unpatented know-how * Inability to maintain effective internal control over financial reporting * Dependence on U.S. government contracts and funding levels[8](index=8&type=chunk)[13](index=13&type=chunk) Available Information [Company Website and SEC Filings](index=5&type=section&id=Company%20Website%20and%20SEC%20Filings) The company provides free access to SEC filings and material information on the 'Investors' section of its website - The company's website (www.intuitivemachines.com) serves as a resource for SEC filings and material information, accessible via the 'Investors' section[11](index=11&type=chunk)[12](index=12&type=chunk) Part I – Financial Information [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents Intuitive Machines, Inc.'s unaudited condensed consolidated financial statements, including balance sheets, operations, equity, and cash flows [Unaudited Condensed Consolidated Balance Sheets](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) The unaudited condensed consolidated balance sheets provide a snapshot of the company's financial position at specific dates Condensed Consolidated Balance Sheets (in thousands) | ASSETS | March 31, 2025 | December 31, 2024 | | :-------------------------- | :------------- | :---------------- | | Cash and cash equivalents | $373,253 | $207,607 | | Total current assets | $431,312 | $293,161 | | Total assets | $500,014 | $355,404 | | LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' DEFICIT | | | | Total current liabilities | $98,148 | $98,831 | | Earn-out liabilities | $— | $134,156 | | Warrant liabilities | $25,776 | $68,778 | | Total liabilities | $172,400 | $351,483 | | Redeemable noncontrolling interests | $456,698 | $1,005,965 | | Total shareholders' deficit | $(135,223) | $(1,008,034) | - Cash and cash equivalents increased significantly from **$207.6 million** at December 31, 2024, to **$373.3 million** at March 31, 2025 - Total assets increased by approximately **$144.6 million**, from **$355.4 million** to **$500.0 million** - Earn-out liabilities were fully settled, decreasing from **$134.2 million** to **$0** - Warrant liabilities decreased from **$68.8 million** to **$25.8 million** - Total liabilities decreased by approximately **$179.1 million**, from **$351.5 million** to **$172.4 million** - Total shareholders' deficit improved substantially from **$(1,008.0) million** to **$(135.2) million**[16](index=16&type=chunk) [Unaudited Condensed Consolidated Statements of Operations](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) The unaudited condensed consolidated statements of operations detail the company's revenues, expenses, and net income or loss over specific periods Condensed Consolidated Statements of Operations (in thousands, except per share amounts) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Revenue | $62,524 | $73,219 | | Total operating expenses | $72,601 | $75,994 | | Operating loss | $(10,077) | $(2,775) | | Total other income (expense), net | $11,052 | $(115,256) | | Net income (loss) | $975 | $(118,031) | | Net loss attributable to the Company | $(11,396) | $(97,486) | | Net loss per share of Class A common stock - basic and diluted | $(0.11) | $(2.68) | | Weighted average shares outstanding - basic and diluted | 107,081,918 | 36,612,270 | - Revenue decreased by **$10.7 million** (**14.6%**) YoY - Operating loss increased from **$(2.8) million** to **$(10.1) million** YoY - Net income (loss) significantly improved from a loss of **$(118.0) million** to a gain of **$0.98 million** YoY, primarily due to favorable changes in fair value of warrant liabilities and non-recurrence of loss on issuance of securities - Net loss attributable to the Company decreased by **$86.1 million** (**88.3%**) YoY - Net loss per share improved from **$(2.68)** to **$(0.11)** YoY - Weighted-average common shares outstanding increased significantly from **36.6 million** to **107.1 million** YoY[18](index=18&type=chunk) [Unaudited Condensed Consolidated Statements of Mezzanine Equity](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Mezzanine%20Equity) The unaudited condensed consolidated statements of mezzanine equity track changes in redeemable noncontrolling interests and preferred stock Condensed Consolidated Statements of Mezzanine Equity (in thousands) | Metric | March 31, 2025 | December 31, 2024 | | :------------------------------------------ | :------------- | :---------------- | | Series A Preferred Stock Amount | $6,139 | $5,990 | | Redeemable Noncontrolling Interest | $456,698 | $1,005,965 | Condensed Consolidated Statements of Mezzanine Equity (in thousands) | Metric | March 31, 2024 | December 31, 2023 | | :------------------------------------------ | :------------- | :---------------- | | Series A Preferred Stock Amount | $5,560 | $28,201 | | Redeemable Noncontrolling Interest | $443,181 | $181,662 | - Redeemable noncontrolling interests decreased significantly from **$1,005.9 million** at December 31, 2024, to **$456.7 million** at March 31, 2025, primarily due to subsequent remeasurement[20](index=20&type=chunk) [Unaudited Condensed Consolidated Statements of Shareholders' Deficit](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Shareholders%27%20Deficit) The unaudited condensed consolidated statements of shareholders' deficit detail changes in equity components, including common stock and accumulated deficit Condensed Consolidated Statements of Shareholders' Deficit (in thousands) | Metric | March 31, 2025 | December 31, 2024 | | :------------------------------------------ | :------------- | :---------------- | | Total Shareholders' Deficit attributable to the Company | $(136,913) | $(1,009,262) | | Total Shareholders' Deficit | $(135,223) | $(1,008,034) | - Total shareholders' deficit attributable to the Company improved by **$872.3 million**, from **$(1,009.3) million** at December 31, 2024, to **$(136.9) million** at March 31, 2025 - This improvement was driven by significant non-cash activities including subsequent remeasurement of redeemable noncontrolling interests (**$561.2 million**) and issuance of Class A common stock for warrants exercised (**$176.6 million**) and Class C common stock for earn-out awards (**$167.5 million**)[25](index=25&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The unaudited condensed consolidated statements of cash flows categorize cash movements from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Net cash provided by (used in) operating activities | $19,419 | $(6,442) | | Net cash used in investing activities | $(6,122) | $(1,588) | | Net cash provided by financing activities | $152,349 | $60,754 | | Net increase in cash, cash equivalents and restricted cash | $165,646 | $52,724 | | Cash and cash equivalents at end of the period | $373,253 | $55,242 | - Operating activities generated **$19.4 million** in cash in Q1 2025, a significant improvement from using **$6.4 million** in Q1 2024 - Investing activities used **$6.1 million** in Q1 2025, an increase from **$1.6 million** in Q1 2024, primarily due to higher property and equipment purchases - Financing activities provided **$152.3 million** in Q1 2025, up from **$60.8 million** in Q1 2024, largely driven by warrant exercises[29](index=29&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations and disclosures supporting the unaudited condensed consolidated financial statements [NOTE 1 - BUSINESS DESCRIPTION](index=12&type=section&id=NOTE%201%20-%20BUSINESS%20DESCRIPTION) This note describes Intuitive Machines, Inc.'s core business as a space technology, infrastructure, and services company - Intuitive Machines, Inc. is a space technology, infrastructure, and services company focused on establishing cislunar infrastructure and commerce, headquartered in Houston, Texas[31](index=31&type=chunk) - The company completed a business combination with Inflection Point Acquisition Corp. (IPAX) on February 13, 2023, and was reorganized into an Up-C structure, with Intuitive Machines, LLC as the accounting acquirer[33](index=33&type=chunk)[34](index=34&type=chunk) - Class A Common Stock and warrants began trading on Nasdaq under 'LUNR' and 'LUNRW' on February 14, 2023. Warrants were redeemed on March 6, 2025[35](index=35&type=chunk) [NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=13&type=section&id=NOTE%202%20-%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines the significant accounting policies and estimates used in preparing the financial statements - The financial statements are prepared in accordance with U.S. GAAP for interim reporting and SEC rules, consolidating subsidiaries like Space Network Solutions, LLC and IX, LLC[36](index=36&type=chunk) - The company is an emerging growth company (EGC) and has elected to use the extended transition period for complying with new or revised financial accounting standards[39](index=39&type=chunk)[254](index=254&type=chunk) - Key accounting policies and estimates include: * Use of estimates based on historical experience and economic environment * Operating in one reportable segment * Concentration of credit risks, with one major customer accounting for **78%** of revenue in Q1 2025 * Earn-out liabilities were fully vested and no longer exist as of March 31, 2025, following the satisfaction of Triggering Events II-A and III in February 2025[40](index=40&type=chunk)[42](index=42&type=chunk)[47](index=47&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) - Immaterial errors related to historical estimated contract losses were corrected in previously issued financial statements, impacting net income attributable to the Company by an understatement of approximately **$5.1 million** cumulatively as of June 30, 2024[63](index=63&type=chunk)[64](index=64&type=chunk) [NOTE 3 - REVENUE](index=17&type=section&id=NOTE%203%20-%20REVENUE) This note details the company's revenue recognition policies and disaggregated revenue by contract type Disaggregated Revenue by Contract Type (in thousands) | Revenue by Contract Type | Three Months Ended March 31, 2025 | % | Three Months Ended March 31, 2024 | % | | :----------------------- | :-------------------------------- | :- | :-------------------------------- | :- | | Fixed price | $38,183 | 61 | $29,359 | 40 | | Cost reimbursable | $22,597 | 36 | $42,040 | 57 | | Time and materials | $1,744 | 3 | $1,820 | 3 | | Total | $62,524 | 100 | $73,219 | 100 | - Fixed-price revenue increased by **$8.8 million** (**30.0%**) YoY, becoming the largest revenue source - Cost-reimbursable revenue decreased by **$19.4 million** (**46.1%**) YoY - Amortization expense for deferred contract costs was **$8.0 million** in Q1 2025, up from **$3.5 million** in Q1 2024 - Revenue recognized from beginning-of-period contract liabilities was **$14.9 million** in Q1 2025, compared to **$7.3 million** in Q1 2024 - Net losses related to contracts with customers were **$1.3 million** in Q1 2025, compared to **$1.0 million** in Q1 2024[66](index=66&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk)[70](index=70&type=chunk) - As of March 31, 2025, remaining fixed price performance obligations totaled **$135.9 million**, with **40-45%** expected to be recognized over the next **9 months**[72](index=72&type=chunk) [NOTE 4 - PROPERTY AND EQUIPMENT, NET](index=19&type=section&id=NOTE%204%20-%20PROPERTY%20AND%20EQUIPMENT%2C%20NET) This note provides details on the company's property and equipment, including gross amounts, accumulated depreciation, and net values Property and Equipment, Net (in thousands) | Asset Category | March 31, 2025 | December 31, 2024 | | :----------------------- | :------------- | :---------------- | | Property and equipment, gross | $34,711 | $27,874 | | Less: accumulated depreciation and amortization | $(4,918) | $(4,510) | | Property and equipment, net | $29,793 | $23,364 | - Net property and equipment increased by **$6.4 million** (**27.5%**) from December 31, 2024, to March 31, 2025 - Construction in progress includes **$11.1 million** for a commercial communications satellite and **$9.0 million** for a satellite communications and navigation network[74](index=74&type=chunk)[75](index=75&type=chunk) [NOTE 5 - DEBT](index=19&type=section&id=NOTE%205%20-%20DEBT) This note outlines the company's debt arrangements, including credit facilities and loan repayments - On March 4, 2025, the company entered into a **$40.0 million** secured revolving credit facility with Stifel Bank, maturing April 30, 2027, with no outstanding debt as of March 31, 2025[76](index=76&type=chunk)[78](index=78&type=chunk) - The Live Oak Credit Mobilization Facility was fully repaid and terminated in July 2024[79](index=79&type=chunk) - A **$10.0 million** Bridge Loan from Pershing LLC was repaid in full on January 29, 2024, through contributions from a guarantor, resulting in the issuance of Class A Common Stock and Conversion Warrants[80](index=80&type=chunk)[82](index=82&type=chunk) [NOTE 6 - INCOME TAXES](index=20&type=section&id=NOTE%206%20-%20INCOME%20TAXES) This note details the company's income tax expense, effective tax rates, and valuation allowances - The company recognized no U.S. federal and state income tax expense for the three months ended March 31, 2025 and 2024, with an effective combined U.S. federal and state income tax rate of **0.0%** for both periods[84](index=84&type=chunk) - Due to historical losses, management has applied a full valuation allowance to deferred tax assets, and no Tax Receivable Agreement (TRA) liability is expected to be recorded as of March 31, 2025[86](index=86&type=chunk) [NOTE 7 - MEZZANINE EQUITY AND EQUITY](index=21&type=section&id=NOTE%207%20-%20MEZZANINE%20EQUITY%20AND%20EQUITY) This note provides information on the company's capital stock, preferred stock, and redeemable noncontrolling interests Capital Stock Information as of March 31, 2025 | Stock Type | Authorized Shares | Issued Shares | Outstanding Shares | | :----------------- | :---------------- | :------------ | :----------------- | | Class A Common Stock | 500,000,000 | 119,329,328 | 117,138,248 | | Class C Common Stock | 100,000,000 | 61,301,804 | 61,301,804 | | Series A Preferred Stock | 25,000,000 | 5,000 | 5,000 | - The company repurchased **941,080** shares of Class A Common Stock for **$20.7 million** in connection with the Warrant Redemption[89](index=89&type=chunk) - The Series A Preferred Stock conversion price was reduced from **$12.00** to **$3.00** per share due to private placement and warrant exercise agreements[90](index=90&type=chunk) - Redeemable noncontrolling interests, representing **34.4%** ownership in Intuitive Machines, LLC, have the right to exchange common units for Class A Common Stock or cash, subject to Board approval[93](index=93&type=chunk) [NOTE 8 - WARRANTS](index=22&type=section&id=NOTE%208%20-%20WARRANTS) This note details the company's warrant activity, including redemptions, exercises, and fair value changes - All outstanding Public and Private Warrants were redeemed on March 6, 2025, for **$0.01** per warrant. Prior to redemption, **15,358,229** warrants were exercised, generating **$176.6 million** in gross proceeds[98](index=98&type=chunk) - The Series A Preferred Warrants' exercise price was reduced from **$15.00** to **$11.50** per share, and the number of issuable shares increased to **706,522**. No exercises of these warrants have occurred as of March 31, 2025[102](index=102&type=chunk)[103](index=103&type=chunk) - Conversion Warrants, issued in connection with the January 2024 Bridge Loan Conversion, were initially classified as derivative liabilities. The company recognized a **$43.0 million** gain from the change in fair value of the Conversion Series A Warrant liability in Q1 2025[109](index=109&type=chunk)[111](index=111&type=chunk) Warrant Activity for Three Months Ended March 31, 2025 | Warrant Type | Balance, Dec 31, 2024 | Warrant Exercises | Warrant Redemptions | Balance, Mar 31, 2025 | | :------------------ | :-------------------- | :---------------- | :------------------ | :-------------------- | | Public and Private Warrants | 21,929,953 | (15,358,229) | (6,571,724) | — | | Series A Preferred Warrants | 706,522 | — | — | 706,522 | | Conversion Series B Warrants | 4,150,780 | — | — | 4,150,780 | [NOTE 9 - SHARE-BASED COMPENSATION](index=25&type=section&id=NOTE%209%20-%20SHARE-BASED%20COMPENSATION) This note outlines the company's share-based compensation plans, expenses, and unrecognized costs - Share-based compensation expense for options was **$47 thousand** in Q1 2025, down from **$114 thousand** in Q1 2024. Unrecognized costs for options are **$271 thousand**, to be recognized over **2.27 years**[117](index=117&type=chunk) - The 2023 Long Term Omnibus Incentive Plan authorized **12,706,811** shares of Class A Common Stock, with **7,652,301** shares available for future grants as of March 31, 2025[119](index=119&type=chunk) - Share-based compensation expense for RSUs was **$2.7 million** in Q1 2025 (up from **$1.1 million** in Q1 2024) and for PSUs was **$0.1 million** in Q1 2025 (down from **$2.7 million** in Q1 2024) - Unrecognized costs for RSUs and PSUs are **$19.4 million** and **$0.2 million**, respectively, to be recognized over weighted average periods of **3.27 years** and **0.42 years**[122](index=122&type=chunk) [NOTE 10 - FAIR VALUE MEASUREMENTS](index=26&type=section&id=NOTE%2010%20-%20FAIR%20VALUE%20MEASUREMENTS) This note describes the fair value measurements of the company's liabilities, including earn-out and warrant liabilities Fair Value of Liabilities (in thousands) | Liabilities | March 31, 2025 | December 31, 2024 | | :------------------------ | :------------- | :---------------- | | Earn-out liabilities | $— | $134,156 | | Warrant liabilities - Series A | $25,776 | $68,778 | | Total liabilities measured at fair value | $25,776 | $202,934 | - Earn-out liabilities were fully converted to equity during Q1 2025, decreasing from **$134.2 million** to **$0** - Warrant liabilities (Series A) decreased by **$43.0 million** due to changes in fair value[125](index=125&type=chunk) - The fair value of Conversion Series A Warrant liabilities as of March 31, 2025, was estimated using a Black-Scholes-Merton model with a Class A Common Stock price of **$7.45** and expected volatility of **98%**[127](index=127&type=chunk) [NOTE 11 - NET LOSS PER SHARE](index=28&type=section&id=NOTE%2011%20-%20NET%20LOSS%20PER%20SHARE) This note presents the calculation of basic and diluted net loss per share for Class A Common Stock Net Loss Per Share of Class A Common Stock (in thousands, except share data) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Net loss attributable to Class A common shareholders | $(11,543) | $(97,957) | | Basic and diluted weighted-average shares outstanding | 107,081,918 | 36,612,270 | | Net loss per share - basic and diluted | $(0.11) | $(2.68) | - Net loss per share significantly improved from **$(2.68)** in Q1 2024 to **$(0.11)** in Q1 2025 - Potentially dilutive securities, including RSUs, PSUs, options, and warrants, were excluded from diluted EPS calculation as their effect would be anti-dilutive during loss periods[130](index=130&type=chunk)[131](index=131&type=chunk) [NOTE 12 - COMMITMENTS AND CONTINGENCIES](index=29&type=section&id=NOTE%2012%20-%20COMMITMENTS%20AND%20CONTINGENCIES) This note discloses the company's legal proceedings, accrued losses, and remaining purchase obligations - The company is involved in legal proceedings, with an accrued amount of approximately **$2.1 million** as of March 31, 2025, for probable and estimable losses[134](index=134&type=chunk) - A breach of contract action was filed in Delaware Chancery Court regarding Series A Preferred Stock conversion, which the company intends to vigorously defend[135](index=135&type=chunk) Remaining Purchase Obligations (in thousands) | Period | Amount Due | | :---------------- | :--------- | | Remaining 2025 | $35,800 | | 2026 | $37,700 | | 2027 | $20,300 | | Total | $93,800 | [NOTE 13 - RELATED PARTY TRANSACTIONS](index=29&type=section&id=NOTE%2013%20-%20RELATED%20PARTY%20TRANSACTIONS) This note details transactions with related parties, including revenue and expenses with affiliates - Affiliate revenue from KBR, Inc. (a **10%** equity holder in Space Network Solutions, LLC) was **$0.6 million** in Q1 2025, with related cost of revenue of **$6.3 million** - Affiliate revenue from ASES (a joint venture between Aerodyne and KBR) was **$0.3 million** in Q1 2025 - Expenses with X-energy, LLC (an affiliate of Kamal Ghaffarian, Chairman of the Board) were **$0.3 million** in Q1 2025[139](index=139&type=chunk)[141](index=141&type=chunk)[143](index=143&type=chunk)[144](index=144&type=chunk) [NOTE 14 - VARIABLE INTEREST ENTITIES](index=30&type=section&id=NOTE%2014%20-%20VARIABLE%20INTEREST%20ENTITIES) This note identifies and describes the company's variable interest entities (VIEs), including joint ventures - Space Network Solutions, LLC (SNS), a joint venture with KBR (**90%** IM interest), is a Variable Interest Entity (VIE) where Intuitive Machines is the primary beneficiary. SNS was awarded the OMES III contract by NASA[147](index=147&type=chunk)[148](index=148&type=chunk) - IX, LLC Joint Venture (IX LLC JV) with X-energy (**51%** IM interest) is also a VIE, with Intuitive Machines as the primary beneficiary. The JV is developing nuclear space propulsion and surface power systems[149](index=149&type=chunk)[150](index=150&type=chunk) [NOTE 15 - SEGMENT INFORMATION](index=32&type=section&id=NOTE%2015%20-%20SEGMENT%20INFORMATION) This note clarifies that the company operates in one reportable segment, with performance evaluated by consolidated net income and Adjusted EBITDA - The company operates in one operating and one reportable segment, underpinned by three core pillars: delivery services, data transmission services, and infrastructure as a service[152](index=152&type=chunk) - The Chief Operating Decision-Maker (CODM) evaluates consolidated Net income (loss) and Adjusted EBITDA for performance assessment and resource allocation[152](index=152&type=chunk) - Substantially all revenues are derived from U.S. customers, with foreign customer revenues being immaterial[153](index=153&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, condition, and operational results for Q1 2025, including business model, recent developments, and key factors [Overview](index=33&type=section&id=Overview) This overview introduces Intuitive Machines as a space technology company focused on cislunar and deep space commerce - Intuitive Machines is a space technology, infrastructure, and services company focused on cislunar and deep space commerce, operating under three core pillars: delivery services, data transmission services, and infrastructure as a service[159](index=159&type=chunk) - The company achieved the first U.S. soft lunar landing since **1972** with its Nova-C lander (IM-1 mission) in February **2024** and completed its IM-2 mission in March **2025**, landing at the southernmost location of the moon[160](index=160&type=chunk) - Intuitive Machines holds a leading position in NASA's Commercial Lunar Payload Services (CLPS) program, with **four** awards to date, and is engaging with the U.S. Department of Defense and Space Force to secure cislunar space[160](index=160&type=chunk)[161](index=161&type=chunk) [Our Business Model](index=34&type=section&id=Our%20Business%20Model) This section describes the company's revenue generation through orbital and lunar access services and its 'land-and-expand' strategy - The company generates revenue primarily through orbital and lunar access services and by collecting/transmitting cislunar data, employing a 'land-and-expand' strategy to increase value and repetitive revenue from customers[162](index=162&type=chunk)[163](index=163&type=chunk) - Three core pillars: * **Delivery Services:** Transportation and delivery of payloads to space, including lunar surface access. Achieved first U.S. soft lunar landing since **1972** (IM-1) and IM-2 mission to the lunar south pole * **Data Transmission Services:** Collection, processing, and interpretation of space-based data, including command, control, communications, reconnaissance, and prospecting. Awarded NSN contract by NASA in September **2024** * **Infrastructure as a Service:** Provides space assets for navigation, maintenance, scientific data collection, and system health monitoring. Awarded **$30.8 million** LTV contract by NASA in **2024**[168](index=168&type=chunk) - The company also pursues adjacent market opportunities, such as the JETSON Low Power project for AFRL, scalable reentry technologies, and federal engineering services contracts at NASA centers[166](index=166&type=chunk) [Recent Developments](index=34&type=section&id=Recent%20Developments) This section highlights key recent events, including warrant redemption, stock issuance, and new credit facilities - All outstanding warrants were redeemed on March 6, 2025, generating **$176.6 million** in gross proceeds from exercises. The company also repurchased **941,080** shares of Class A Common Stock for **$20.7 million**[167](index=167&type=chunk)[169](index=169&type=chunk) - **7,500,000** shares of Class C Common Stock were issued on February 4, 2025, upon the vesting of Earn Out Units related to Triggering Events II-A and III[170](index=170&type=chunk) - A new **$40.0 million** secured revolving credit facility with Stifel Bank was entered into on March 4, 2025, with no outstanding debt as of March 31, 2025[171](index=171&type=chunk) - In April 2025, the Texas Space Commission selected Intuitive Machines for a grant of up to **$10.0 million** to support the development of an Earth reentry vehicle and orbital fabrication lab[172](index=172&type=chunk) [Key Factors Affecting Our Performance](index=35&type=section&id=Key%20Factors%20Affecting%20Our%20Performance) This section identifies critical factors influencing the company's future success, including macroeconomic pressures, product expansion, and innovation - The company's future success is influenced by: * **Inflation and Macroeconomic Pressures:** Monitoring volatile disruptions, rising interest rates, inflation, supply chain issues, and geopolitical tensions, though no material impact on **2025** results is expected from trade policy changes * **Ability to Expand Product and Services Offerings:** Dependent on winning lunar missions, expanding service portfolio, and continued investment in R&D, with a focus on lower price points and far-side connectivity * **Ability to Expand Spaceflight Mission Operations:** Success relies on establishing a regular cadence of missions, with **$272.3 million** in backlog as of March 31, 2025 * **Ability to Capitalize on Government Expenditures and Private Enterprise Investment:** Growth is fueled by increased government spending and private investment in the space economy, but subject to changes in U.S. federal budget priorities * **Ability to Improve Profit Margins and Scale Business:** Dependent on improving operating leverage, increasing utilization, and managing production efficiency, material costs, and supply chain * **Ability to Continue to Innovate:** Requires substantial investments in R&D for landers, lunar data networks, and other space systems to maintain market share and attract customers[173](index=173&type=chunk)[174](index=174&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk)[182](index=182&type=chunk)[184](index=184&type=chunk)[185](index=185&type=chunk)[187](index=187&type=chunk) [Components of Results of Operations](index=37&type=section&id=Components%20of%20Results%20of%20Operations) This section explains the key components of the company's financial results, including revenue, cost of revenue, and general and administrative expenses - Revenue is primarily from fixed-price, cost-reimbursable, and time-and-materials contracts, recognized over time using the cost-to-cost method. Variable consideration, often dependent on successful mission landing, can cause fluctuations - Cost of revenue (excluding depreciation) includes direct material and labor, launch costs, and manufacturing overhead, expected to increase in absolute dollars but decrease as a percentage of revenue over time - General and administrative expense (excluding depreciation) includes personnel, professional services, and public company costs, expected to increase in absolute dollars - Other income (expense), net includes interest income/expense, changes in fair value of earn-out and warrant liabilities, and loss on issuance of securities[188](index=188&type=chunk)[190](index=190&type=chunk)[191](index=191&type=chunk)[193](index=193&type=chunk)[195](index=195&type=chunk)[196](index=196&type=chunk)[198](index=198&type=chunk)[199](index=199&type=chunk) - Net income (loss) attributable to redeemable noncontrolling interest represents the portion of Intuitive Machines, LLC's net income or loss allocated to noncontrolling interests (**34.4%** in Q1 2025)[202](index=202&type=chunk)[203](index=203&type=chunk) [Results of Operations](index=39&type=section&id=Results%20of%20Operations) This section analyzes the company's consolidated financial performance for the three months ended March 31, 2025, compared to the prior year Consolidated Results of Operations (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | $ Change | % Change | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | :------- | :------- | | Revenue | $62,524 | $73,219 | $(10,695) | (14.6%) | | Total operating expenses | $72,601 | $75,994 | $(3,393) | (4.5%) | | Operating loss | $(10,077) | $(2,775) | $(7,302) | (263.1%) | | Total other income (expense), net | $11,052 | $(115,256) | $126,308 | (109.6%) | | Net income (loss) | $975 | $(118,031) | $119,006 | (100.8%) | | Net loss attributable to the Company | $(11,396) | $(97,486) | $86,090 | (88.3%) | - Revenue decreased by **$10.7 million** (**15%**) YoY, primarily due to a **$20.1 million** decrease from the OMES III contract (NASA OSAM project cancellation), partially offset by increases from LTV (**$6.9 million**) and NSN (**$3.0 million**) contracts - IM-1 mission completed in February **2024**, releasing **$12.3 million** of previously constrained revenue in Q1 **2024** - IM-2 mission completed in March **2025**, with revenue increasing slightly by **$2.7 million** YoY - IM-3 mission revenue increased to **$7.3 million** in Q1 **2025** from **$5.5 million** in Q1 **2024**, and the IM-4 mission (awarded August **2024**) recognized **$6.4 million** in Q1 **2025** - Total cost of revenue decreased by **$3.4 million** (**6%**) YoY, mainly due to a **$19.4 million** decrease from the OMES III contract, offset by increases from mission contracts (**$5.3 million**), LTV (**$7.7 million**), and NSN (**$1.6 million**) - General and administrative expense decreased slightly by **$0.3 million** YoY, driven by lower share-based compensation and professional fees, offset by higher employee compensation - Total other income (expense), net, showed a favorable change of **$126.3 million** YoY, primarily due to a **$67.0 million** favorable change in warrant liabilities fair value and the non-recurrence of a **$68.7 million** loss on issuance of securities[207](index=207&type=chunk)[208](index=208&type=chunk)[209](index=209&type=chunk)[210](index=210&type=chunk)[211](index=211&type=chunk)[212](index=212&type=chunk)[213](index=213&type=chunk)[214](index=214&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk) [Key Business Metrics and Non-GAAP Financial Measures](index=42&type=section&id=Key%20Business%20Metrics%20and%20Non-GAAP%20Financial%20Measures) This section defines and presents key business metrics like backlog and non-GAAP financial measures such as Adjusted EBITDA - Backlog is defined as total estimated future revenue from awarded contracts, less recognized revenue. It serves as a forward-looking indicator of potential sales[218](index=218&type=chunk) Backlog (in thousands) | Metric | March 31, 2025 | December 31, 2024 | | :------- | :------------- | :---------------- | | Backlog | $272,336 | $328,345 | - Backlog decreased by **$56.0 million** from December 31, 2024, to March 31, 2025, due to performance on existing contracts, partially offset by new awards - Approximately **45-50%** of the backlog is expected to be recognized over the remainder of **2025**, and **25-30%** in **2026** - Backlog of **$272.3 million** exceeded remaining performance obligations of **$135.9 million**, with the difference primarily related to constrained variable consideration and funded value of certain contracts[219](index=219&type=chunk)[220](index=220&type=chunk)[221](index=221&type=chunk) Adjusted EBITDA Reconciliation (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Net income (loss) | $975 | $(118,031) | | Adjusted EBITDA | $(6,610) | $1,565 | - Adjusted EBITDA is a non-GAAP measure used to assess operating performance, excluding non-operating items like interest, share-based compensation, and fair value changes. It decreased from **$1.6 million** in Q1 **2024** to **$(6.6) million** in Q1 **2025**[222](index=222&type=chunk)[226](index=226&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash position, capital resources, and ability to fund its operations - As of March 31, 2025, the company had **$373.3 million** in cash and cash equivalents and **$333.2 million** in working capital[232](index=232&type=chunk) - The company received **$176.6 million** in gross proceeds from warrant exercises in Q1 **2025** and entered into a new **$40.0 million** secured revolving credit facility with Stifel Bank[232](index=232&type=chunk)[233](index=233&type=chunk) - Management believes current cash and cash equivalents are sufficient to fund short-term liquidity needs and the business plan for at least the next **twelve months**[234](index=234&type=chunk) [Cash Flows](index=44&type=section&id=Cash%20Flows) This section summarizes the company's cash flows from operating, investing, and financing activities Summary of Cash Flows (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Net cash provided by (used in) operating activities | $19,419 | $(6,442) | | Net cash used in investing activities | $(6,122) | $(1,588) | | Net cash provided by financing activities | $152,349 | $60,754 | | Net increase in cash, cash equivalents and restricted cash | $165,646 | $52,724 | | Cash and cash equivalents at end of the period | $373,253 | $55,242 | - Operating activities provided **$19.4 million** in Q1 **2025**, a significant improvement from using **$6.4 million** in Q1 **2024** - Investing activities used **$6.1 million** in Q1 **2025**, an increase of **$4.5 million** YoY, primarily due to capital expenditures for the new NSN contract - Financing activities provided **$152.3 million** in Q1 **2025**, up from **$60.8 million** in Q1 **2024**, mainly from warrant exercises (**$176.6 million**) offset by share repurchases (**$20.7 million**)[236](index=236&type=chunk)[237](index=237&type=chunk)[238](index=238&type=chunk) [Contractual Obligations and Commitments](index=45&type=section&id=Contractual%20Obligations%20and%20Commitments) This section details the company's significant contractual obligations and commitments, including operating leases and purchase commitments Significant Contractual Obligations and Commitments as of March 31, 2025 (in thousands) | Obligation Type | Total | 2025 | 2026 | 2027 | 2028 | 2029 | Thereafter | | :---------------- | :--------- | :--------- | :--------- | :--------- | :-------- | :-------- | :--------- | | Operating lease obligations | $68,952 | $1,920 | $2,614 | $2,175 | $2,264 | $2,710 | $57,269 | | Finance lease obligations | $111 | $38 | $45 | $21 | $7 | $— | $— | | Purchase commitments | $93,770 | $35,750 | $37,733 | $20,287 | $— | $— | $— | | Total | $162,833 | $37,708 | $40,392 | $22,483 | $2,271 | $2,710 | $57,269 | - Total contractual obligations and commitments amounted to **$162.8 million** as of March 31, 2025, with significant portions due in **2025** (**$37.7 million**) and **2026** (**$40.4 million**)[239](index=239&type=chunk) [Critical Accounting Policies and Estimates](index=45&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section discusses the critical accounting policies and estimates that require significant judgment in financial statement preparation - The preparation of financial statements requires significant estimates and judgments, particularly in revenue recognition for long-term contracts, where total revenue and cost at completion are complex to estimate[245](index=245&type=chunk)[247](index=247&type=chunk)[250](index=250&type=chunk) - Revenue is recognized over time using the cost-to-cost method for most performance obligations, with variable consideration included only to the extent that a significant reversal of cumulative revenue is improbable[249](index=249&type=chunk)[251](index=251&type=chunk) - As an emerging growth company (EGC), the company has elected to use the extended transition period for new or revised financial accounting standards, which may affect comparability with other public companies[253](index=253&type=chunk)[254](index=254&type=chunk)[255](index=255&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Intuitive Machines, Inc. is exempt from providing market risk disclosures - The company is exempt from providing quantitative and qualitative disclosures about market risk due to its status as a smaller reporting company[256](index=256&type=chunk) [Item 4. Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2025, ensuring reasonable assurance for timely and accurate reporting[257](index=257&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the three months ended March 31, 2025[258](index=258&type=chunk) Part II – Other Information [Item 1. Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings and claims, with details on commitments and contingencies in Note 12 - The company is subject to various legal proceedings and claims in the ordinary course of business, with details on commitments and contingencies provided in Note 12[260](index=260&type=chunk) [Item 1A. Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors) This section refers to risk factors from the 2024 Form 10-K, noting no material changes as of this Quarterly Report - No material changes to the risk factors disclosed in the **2024** Annual Report on Form 10-K have occurred as of the date of this Quarterly Report, except as specifically disclosed[261](index=261&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Information on unregistered equity sales was previously disclosed in the Form 8-K filed on February 4, 2025 - Information on unregistered sales of equity securities was previously disclosed in the Current Report on Form 8-K filed on February 4, 2025[262](index=262&type=chunk) [Item 3. Defaults Upon Senior Securities](index=48&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - There were no defaults upon senior securities[263](index=263&type=chunk) [Item 4. Mine Safety Disclosures](index=48&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Mine Safety Disclosures are not applicable to the company[264](index=264&type=chunk) [Item 5. Other Information](index=48&type=section&id=Item%205.%20Other%20Information) No other information is reported under this item - No other information is reported under this item[265](index=265&type=chunk) [Item 6. Exhibits](index=49&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Quarterly Report, including CEO/CFO certifications and Inline XBRL documents - The exhibits include certifications from the Chief Executive Officer and Chief Financial Officer, as well as Inline XBRL documents for financial data[267](index=267&type=chunk) Signatures [Report Signatures](index=50&type=section&id=Report%20Signatures) The report is signed by Peter McGrath, CFO, and Steven Vontur, Chief Accounting Officer, on May 13, 2025 - The report was signed by Peter McGrath, Chief Financial Officer, and Steven Vontur, Chief Accounting Officer, on May 13, 2025[272](index=272&type=chunk)

Space stock Intuitive Machines (LUNR 28.11%) posted positive free cash flow for the first quarter and forecast continued gains in the quarters to come.Investors are buying in, sending Intuitive shares up 30% as of 10:15 a.m. ET. Expanding into new marketsIntuitive Machines is focused on delivering payloads, data transmission, and space infrastructure, with an emphasis on the moon.The company generated $62.5 million in revenue in the quarter, down 14% year over year and slightly below what Wall Street had ex ...