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SAN JOSE, Calif.--(BUSINESS WIRE)--Momentus Inc. (NASDAQ: MNTS), a U.S. commercial space company offering satellites, satellite components, and in-space transportation and services, today announced that it was awarded a $2.5 million contract on September 29, 2025 by NASA's Armstrong Flight Research Center to conduct a demonstration on-orbit of a new thruster called the Rotating Detonation Rocket Engine (RDRE). "We're proud to be selected by NASA to perform this key mission to advance the develo. ...

SAN JOSE, Calif.--(BUSINESS WIRE)--Momentus Inc. (NASDAQ: MNTS), a U.S. company offering satellites, satellite components, and transportation and on-orbit services, announced today that it has signed a contract to perform a demonstration mission showcasing Pulsar's cutting-edge Hall Effect Thruster (HET) technology. The contract is part of a strategic partnership between Momentus and UK-based propulsion innovator Pulsar Fusion. The mission, scheduled for launch aboard Momentus' Vigoride orbital. ...

General Information & Forward-Looking Statements This section provides company identification details and a cautionary note regarding forward-looking statements and associated risks [Company Information](index=1&type=section&id=Company%20Information) Momentus Inc. is a Delaware-incorporated company listed on Nasdaq (MNTS, MNTSW), classified as a non-accelerated filer and smaller reporting company, with 11,634,365 shares of Class A common stock outstanding as of August 15, 2025 Company Details | Detail | Value | | :----- | :---- | | Company Name | Momentus Inc. | | State of Incorporation | Delaware | | Trading Symbols | MNTS (Class A common stock), MNTSW (Warrants) | | Exchange | Nasdaq Stock Market LLC | | Filer Status | Non-accelerated filer, Smaller reporting company | | Class A Common Stock Outstanding (as of Aug 15, 2025) | 11,634,365 shares | [Cautionary Note Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section warns that the Form 10-Q contains forward-looking statements that involve risks and uncertainties, and actual results may differ materially from expectations - Forward-looking statements are subject to **risks and uncertainties**, including the ability to raise capital, obtain government approvals, successfully develop and operate spacecraft, market satellite buses, protect intellectual property, and navigate regulatory changes[7](index=7&type=chunk)[8](index=8&type=chunk)[9](index=9&type=chunk) Part I - Financial Information This part presents the company's condensed consolidated interim financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Condensed Consolidated Interim Financial Statements](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides the company's condensed consolidated balance sheets, statements of operations, stockholders' deficit, cash flows, and accompanying notes [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The company's total assets decreased from $9,952 thousand at December 31, 2024, to $9,192 thousand at June 30, 2025, while total liabilities and stockholders' deficit increased, indicating a worsening financial position Condensed Consolidated Balance Sheet Summary (in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------- | :------------ | :---------------- | :----- | | Total Assets | $9,192 | $9,952 | $(760) | | Total Liabilities | $19,163 | $17,762 | $1,401 | | Total Stockholders' Deficit | $(9,971) | $(7,810) | $(2,161) | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the six months ended June 30, 2025, Momentus Inc. reported a net loss of $12,622 thousand, an improvement from $15,329 thousand in the prior year period, with service revenue significantly decreasing by 70% and operating expenses seeing a 26% reduction Condensed Consolidated Statements of Operations Summary (in thousands) | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change | % Change | | :-------------------- | :----------------------------- | :----------------------------- | :----- | :------- | | Service Revenue | $513 | $1,722 | $(1,209) | (70%) | | Gross Profit | $511 | $1,722 | $(1,211) | (70%) | | Total Operating Expenses | $12,640 | $17,013 | $(4,373) | (26%) | | Loss from Operations | $(12,129) | $(15,291) | $3,162 | (21%) | | Net Loss | $(12,622) | $(15,329) | $2,707 | (18%) | | Net Loss per Share (basic & diluted) | $(2.81) | $(14.72) | $11.91 | (81%) | [Condensed Consolidated Statements of Stockholders' Deficit](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Deficit) The total stockholders' deficit increased from $7,810 thousand at December 31, 2024, to $9,971 thousand at June 30, 2025, primarily due to net losses partially offset by increases in additional paid-in capital from equity issuances Condensed Consolidated Statements of Stockholders' Deficit Summary (in thousands) | Metric (in thousands) | December 31, 2024 | June 30, 2025 | Change | | :-------------------- | :---------------- | :------------ | :----- | | Additional Paid-in Capital | $400,183 | $410,644 | $10,461 | | Accumulated Deficit | $(407,993) | $(420,615) | $(12,622) | | Total Stockholders' Deficit | $(7,810) | $(9,971) | $(2,161) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, the company used $7,422 thousand in operating activities, had no investing activities, and generated $5,982 thousand from financing activities, resulting in a net decrease in cash and cash equivalents of $1,440 thousand Condensed Consolidated Statements of Cash Flows Summary (in thousands) | Cash Flow Activity (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change | | :-------------------------------- | :----------------------------- | :----------------------------- | :----- | | Net cash used in operating activities | $(7,422) | $(6,374) | $(1,048) | | Net cash used in investing activities | $0 | $(40) | $40 | | Net cash provided by financing activities | $5,982 | $5,199 | $783 | | Decrease in cash and cash equivalents | $(1,440) | $(1,215) | $(225) | | Cash and cash equivalents, end of period | $132 | $1,277 | $(1,145) | [Notes to the Condensed Consolidated Interim Financial Statements](index=10&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed disclosures and explanations for the figures presented in the condensed consolidated interim financial statements [Note 1. Nature of Operations](index=10&type=section&id=Note%201.%20Nature%20of%20Operations) Momentus Inc. is a commercial space company offering satellites, satellite buses, and in-space infrastructure services, utilizing its water plasma-based propulsion system, but its financial position raises substantial doubt about its ability to continue as a going concern - Momentus Inc. is a U.S. commercial space company providing satellites, satellite buses, and in-space infrastructure services, including transportation and hosted payloads, powered by its **water plasma-based propulsion system**[22](index=22&type=chunk) - The company has launched **four missions**, deployed **17 customer satellites**, and successfully demonstrated its Vigoride Orbital Service Vehicle (OSV) in space, accumulating significant flight heritage, and also offers the M-1000 satellite bus[23](index=23&type=chunk)[24](index=24&type=chunk)[282](index=282&type=chunk) - The company's financial position raises **substantial doubt about its ability to continue as a going concern**, evidenced by a **$12.6 million net loss** for the six months ended June 30, 2025, an **accumulated deficit of $420.6 million**, and **$7.4 million net cash used in operating activities**, requiring additional capital to fund operations[27](index=27&type=chunk)[28](index=28&type=chunk)[30](index=30&type=chunk) - A **1-for-14 reverse stock split** of Class A common stock was effective December 12, 2024, retroactively adjusted for all periods presented[33](index=33&type=chunk)[36](index=36&type=chunk)[153](index=153&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=12&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the significant accounting policies, including interim financial statement preparation, consolidation, estimates, and specific policies for various financial statement components, along with recently issued and adopted accounting standards - Revenue is recognized for 'last-mile' satellite and cargo delivery upon payload delivery, and for in-orbit services ratably over time, while engineering services for U.S. Government organizations are recognized upon milestone achievement[52](index=52&type=chunk)[53](index=53&type=chunk)[56](index=56&type=chunk) - The company uses a three-tiered fair value hierarchy (Level 1, 2, 3) for financial instruments, with warrants and convertible notes classified within **Level 3**, fair values determined using models like Black-Scholes or convertible bond pricing, relying on unobservable inputs such as expected stock price volatility[58](index=58&type=chunk)[59](index=59&type=chunk)[60](index=60&type=chunk) - Recently adopted accounting standards include ASU 2023-07 (Segment Reporting), ASU 2023-09 (Income Tax Disclosures), and ASU 2024-02 (Codification updates), none of which had a **material impact** on the interim financial statements[101](index=101&type=chunk)[102](index=102&type=chunk)[103](index=103&type=chunk) [Note 3. Prepaids and Other Current Assets](index=21&type=section&id=Note%203.%20Prepaids%20and%20Other%20Current%20Assets) As of June 30, 2025, total prepaids and other current assets were $3,832 thousand, primarily consisting of current prepaid launch costs and prepaid insurance Prepaids and Other Current Assets (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :------------- | :------------ | :---------------- | | Prepaid launch costs, current | $2,450 | $0 | | Prepaid insurance and other assets | $1,382 | $1,667 | | Total | $3,832 | $1,667 | - Non-current portion of prepaid launch costs was approximately **$1.3 million** as of June 30, 2025, down from $2.6 million in 2024[104](index=104&type=chunk) [Note 4. Property, Machinery and Equipment](index=21&type=section&id=Note%204.%20Property%2C%20Machinery%20and%20Equipment) Net property, machinery, and equipment decreased to $1,561 thousand as of June 30, 2025, primarily due to accumulated depreciation, with depreciation expense for the six months ended June 30, 2025, being $0.6 million Property, Machinery and Equipment, Net (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :------------- | :------------ | :---------------- | | Property, machinery and equipment, net | $1,561 | $2,182 | - Depreciation expense was **$0.6 million** for the six months ended June 30, 2025, compared to $0.4 million for the same period in 2024[105](index=105&type=chunk) [Note 5. Intangible Assets](index=23&type=section&id=Note%205.%20Intangible%20Assets) Net intangible assets, primarily patents, were $227 thousand as of June 30, 2025, with a weighted-average remaining amortization period of 4.8 years and amortization expense of $0.03 million for the six months ended June 30, 2025 Intangible Assets, Net Value (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :------------- | :------------ | :---------------- | | Patents/Intellectual Property, Net Value | $227 | $253 | - The weighted-average remaining amortization period for intangible assets was **4.8 years** as of June 30, 2025[106](index=106&type=chunk) - Future estimated amortization expense for intangible assets is **$26 thousand** for the remainder of 2025, **$52 thousand** for 2026, and **$52 thousand** for 2027[107](index=107&type=chunk) [Note 6. Leases](index=23&type=section&id=Note%206.%20Leases) The company's office lease was remeasured due to an event of default and early termination, now expiring March 31, 2026, with total lease expense of $871 thousand for the six months ended June 30, 2025 - The office lease was remeasured due to an event of default and early termination by the landlord, with a new expiration date of **March 31, 2026**[109](index=109&type=chunk) Total Lease Expense (in thousands) | (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------- | :----------------------------- | :----------------------------- | | Total Lease Expense | $871 | $1,072 | - As of June 30, 2025, the weighted-average remaining lease term was **0.8 years**, and the present value of lease liabilities was **$716 thousand**[110](index=110&type=chunk) [Note 7. Accrued Liabilities](index=24&type=section&id=Note%207.%20Accrued%20Liabilities) Total accrued liabilities increased to $3,385 thousand as of June 30, 2025, primarily driven by higher compensation expense and other accrued liabilities, partially offset by a decrease in legal and other professional services Accrued Liabilities (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :------------- | :------------ | :---------------- | :----- | | Legal and other professional services | $1,363 | $1,906 | $(543) | | Compensation expense | $618 | $84 | $534 | | Research and development projects | $94 | $75 | $19 | | Other accrued liabilities | $1,310 | $941 | $369 | | Total | $3,385 | $3,006 | $379 | [Note 8. Loan Payable](index=24&type=section&id=Note%208.%20Loan%20Payable) The company has various loan agreements, including the May 2025 Loan, the AGP Convertible Promissory Note, and SIV Convertible Promissory Notes, which involve convertible features, warrants, and recognized gains/losses on debt extinguishment and fair value changes - The May 2025 Loan, allowing borrowing up to **$1.5 million**, was drawn for **$0.75 million** and subsequently extinguished on July 1, 2025, with an anticipated loss on extinguishment[112](index=112&type=chunk)[117](index=117&type=chunk)[265](index=265&type=chunk) - The AGP Convertible Promissory Note, initially for **$1.2 million** for services, was amended to reduce its principal to **$0.5 million** and is classified as a liability measured at fair value[118](index=118&type=chunk)[119](index=119&type=chunk)[121](index=121&type=chunk) - The July and October SIV Convertible Notes, totaling **$5.3 million**, have undergone multiple amendments and partial conversions into Class A common stock, resulting in recognized gains and losses on debt extinguishment[128](index=128&type=chunk)[132](index=132&type=chunk)[140](index=140&type=chunk) [Note 9. Stockholders' Equity (Deficit)](index=29&type=section&id=Note%209.%20Stockholders'%20Equity%20(Deficit)) The company's Class A common stock underwent a 1-for-14 reverse stock split in December 2024, following a 1-for-50 split in August 2023, with significant equity transactions including a Master Services Agreement with Velo3D, Inc. and various public offerings and warrant inducement agreements - The company implemented a **1-for-14 reverse stock split** on December 12, 2024, and a prior **1-for-50 reverse stock split** on August 22, 2023, affecting Class A common stock and related securities[153](index=153&type=chunk)[154](index=154&type=chunk)[159](index=159&type=chunk) - In April 2025, the company entered a Master Services Agreement with Velo3D, Inc., issuing **477,455 Class A common shares** and **673,408 Series A preferred shares** with a grant-date fair value of **$10.7 million**, to be recognized over a five-year vesting period[161](index=161&type=chunk)[162](index=162&type=chunk) Equity Offerings and Warrant Inducements (in thousands, except share data) | Offering/Agreement | Date | Gross Proceeds (in thousands) | Net Proceeds (in thousands) | Shares Issued (Class A) | Warrants Issued | | :----------------- | :--- | :---------------------------- | :-------------------------- | :---------------------- | :-------------- | | February 2025 Public Offering | Feb 2025 | $5,000 | $4,400 | 300,000 | 1,273,886 | | March 2025 Warrant Inducement | Mar 2025 | $2,100 | $1,900 | 1,071,429 | 2,142,858 | | December 2024 Offering | Dec 2024 | $5,000 | $4,400 | 230,000 | 800,000 | | September 2024 Offering | Sep 2024 | $2,800 | $2,400 | 357,143 (pre-funded) | 1,071,429 | | March 2024 Offering | Mar 2024 | $4,000 | $3,500 | 94,286 | 330,306 | | January 2024 Offering | Jan 2024 | $4,000 | $3,600 | 64,286 | 263,358 | [Note 10. Stock-based Compensation](index=35&type=section&id=Note%2010.%20Stock-based%20Compensation) The company operates under the 2021 Equity Incentive Plan and the 2022 Inducement Equity Plan, with 30,000 options and 715,280 RSUs granted for the six months ended June 30, 2025, resulting in total stock-based compensation expense of $2,024 thousand - The company's primary equity compensation plans are the **2021 Equity Incentive Plan** and the **2022 Inducement Equity Plan**, with the 2021 Employee Stock Purchase Plan (ESPP) currently suspended[207](index=207&type=chunk)[210](index=210&type=chunk)[211](index=211&type=chunk) Options Activity (in thousands, except share-based data) | Options Activity (in thousands, except share-based data) | As of Dec 31, 2024 | Granted | Forfeitures | As of June 30, 2025 | | :----------------------------------------------------- | :----------------- | :------ | :---------- | :------------------ | | Total Options | 1,386 | 30,000 | (62) | 31,324 | | Weighted-Average Exercise Price Per Share | $1,139.61 | $1.78 | $1,115.64 | $49.99 | RSU & RSA Activity (shares) | RSU & RSA Activity (shares) | As of Dec 31, 2024 | Granted | Vested | Forfeited | As of June 30, 2025 | | :-------------------------- | :----------------- | :------ | :----- | :-------- | :------------------ | | Shares | 5,924 | 715,280 | (2,234) | (732) | 718,238 | Stock-based Compensation (in thousands) | Stock-based Compensation (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------------- | :----------------------------- | :----------------------------- | | Research and development expenses | $348 | $224 | | Selling, general and administrative expenses | $1,676 | $2,954 | | Total | $2,024 | $3,178 | [Note 11. Earnings Per Share](index=37&type=section&id=Note%2011.%20Earnings%20Per%20Share) Due to net losses for the three and six months ended June 30, 2025 and 2024, all potential common shares were considered anti-dilutive and excluded from diluted loss per share calculations - Due to net losses, all potential common shares (preferred stock, options, RSUs, warrants, convertible notes, Sponsor Earnout Shares) were considered **anti-dilutive** and excluded from diluted EPS calculations for the periods presented[219](index=219&type=chunk) Anti-Dilutive Potential Common Shares | Anti-Dilutive Potential Common Shares | June 30, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :------------------------------------ | :----------------------- | :----------------------- | :----------------------- | :----------------------- | | Preferred shares outstanding | 6,734,080 | 0 | 6,734,080 | 0 | | Options and unvested stock units outstanding | 749,562 | 19,753 | 749,562 | 19,753 | | Warrants outstanding | 4,076,371 | 1,036,983 | 4,076,371 | 1,036,983 | | Convertible promissory notes | 1,580,647 | 0 | 1,580,647 | 0 | | Unvested shares related to VLD MSA | 477,455 | 0 | 477,455 | 0 | | Contingent Sponsor Earnout Shares | 2,054 | 2,054 | 2,054 | 2,054 | | Total | 13,620,169 | 1,058,790 | 13,620,169 | 1,058,790 | [Note 12. Commitments and Contingencies](index=37&type=section&id=Note%2012.%20Commitments%20and%20Contingencies) The company has future unconditional purchase obligations of $180 thousand for the remainder of 2025 and is involved in several legal proceedings, including settled Securities Class Actions and Shareholder Derivative Litigation, and ongoing SAFE Note and Founder Litigation - Future unconditional purchase obligations total **$180 thousand** for the remainder of 2025[222](index=222&type=chunk) - Securities Class Actions were settled for **$8.5 million**, with **$4.0 million** funded by insurance, and the settlement was finally approved by the court in April 2024[224](index=224&type=chunk)[225](index=225&type=chunk)[226](index=226&type=chunk) - Shareholder Derivative Litigation was settled in September 2024, requiring corporate governance reforms and attorney's fees covered by the company's insurance policy[232](index=232&type=chunk)[233](index=233&type=chunk)[234](index=234&type=chunk) - Founder Litigation regarding indemnification claims by former co-founders Mikhail Kokorich and Lev Khasis has seen Kokorich's appeal dismissed and Khasis's complaint voluntarily dismissed[239](index=239&type=chunk)[242](index=242&type=chunk) [Note 13. Income Taxes](index=43&type=section&id=Note%2013.%20Income%20Taxes) The company's effective tax rate for the three and six months ended June 30, 2025 and 2024, was zero percent, primarily due to non-deductible items, state/local taxes, absence of current income tax, and a full valuation allowance for deferred tax assets - The effective tax rate was **zero percent** for the three and six months ended June 30, 2025 and 2024, primarily due to non-deductible items, state/local taxes, absence of current income tax, and a full valuation allowance for deferred tax assets[253](index=253&type=chunk) [Note 14. Related Party Transactions](index=43&type=section&id=Note%2014.%20Related%20Party%20Transactions) On June 21, 2024, the company issued $0.5 million in promissory notes to participating directors and an officer, which were fully repaid by September 12, 2024 - The company issued **$0.5 million** in promissory notes to directors and an officer on June 21, 2024, which were fully repaid by September 12, 2024[254](index=254&type=chunk) [Note 15. Segment Information](index=43&type=section&id=Note%2015.%20Segment%20Information) The company operates as a single operating segment, with its CEO as the chief operating decision maker, and all long-lived tangible assets and operating right-of-use assets are located in the United States - The company operates as a **single operating and reportable segment**, with the CEO as CODM, evaluating performance based on consolidated net loss and net cash used in operations[94](index=94&type=chunk)[95](index=95&type=chunk)[255](index=255&type=chunk) - All long-lived tangible assets and operating right-of-use assets are located in the **United States**, and no revenue was derived from foreign customers for the periods presented[95](index=95&type=chunk)[257](index=257&type=chunk) [Note 16. Supplemental Disclosures for Condensed Consolidated Statements of Cash Flows](index=44&type=section&id=Note%2016.%20Supplemental%20Disclosures%20for%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Supplemental disclosures include non-cash investing and financing activities such as the issuance of common stock in settlement of accounts payable ($338 thousand) and deferred issuance costs related to warrant modifications ($400 thousand) for the six months ended June 30, 2025 Non-Cash Activities (in thousands) | Non-Cash Activities (in thousands) | 6 Months Ended June 30, 2025 | | :--------------------------------- | :----------------------------- | | Issuance of common stock in settlement of accounts payable | $338 | | Deferred issuance costs related to warrant modifications | $400 | | Issuance of common stock upon partial conversion of convertible note | $862 | - Cash paid for interest was **$58 thousand** for the six months ended June 30, 2025, compared to $12 thousand for the same period in 2024[258](index=258&type=chunk) [Note 17. Subsequent Events](index=45&type=section&id=Note%2017.%20Subsequent%20Events) Subsequent events include a July 2025 Public Offering generating $3.6 million net proceeds, the extinguishment of the May 2025 Loan, a waiver of certain MSA provisions with Velo3D, Inc., and an August 2025 Warrant Inducement Agreement generating $2.7 million gross proceeds, with the impact of the One Big Beautiful Bill Act being evaluated - A July 2025 Public Offering closed on July 1, 2025, generating approximately **$3.6 million in net proceeds** from the issuance of Class A common stock and warrants[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk) - The May 2025 Loan was prepaid and extinguished on July 1, 2025, with an anticipated loss on extinguishment in Q3 2025[265](index=265&type=chunk) - An August 2025 Warrant Inducement Agreement on August 13, 2025, resulted in the exercise of existing warrants for **$2.7 million gross proceeds** and the issuance of new inducement warrants[267](index=267&type=chunk)[268](index=268&type=chunk)[269](index=269&type=chunk) - The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, amends U.S. tax law, and the company is evaluating its impact on financial statements[271](index=271&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=47&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition, changes in financial position, and results of operations [Overview](index=47&type=section&id=Overview) Momentus Inc. is a commercial space company focused on providing satellites, satellite buses, and in-space infrastructure services, leveraging its water plasma propulsion technology and successfully demonstrated Vigoride OSV, while anticipating significant growth in space transportation - Momentus offers satellites, satellite buses, satellite technologies, and space infrastructure services, including "last-mile" transportation, hosted payloads, and in-orbit services, for commercial and U.S. government missions[274](index=274&type=chunk)[275](index=275&type=chunk)[276](index=276&type=chunk) - The company's services are enabled by its innovative, space-proven **water plasma-based propulsion system** and its Vigoride Orbital Service Vehicle (OSV), which has accumulated significant flight heritage across three missions[277](index=277&type=chunk)[282](index=282&type=chunk) - Momentus also offers the **M-1000 satellite bus**, which has substantial commonality with Vigoride, to meet growing demand in the satellite bus market[24](index=24&type=chunk)[281](index=281&type=chunk) [Components of Results of Operations](index=48&type=section&id=Components%20of%20Results%20of%20Operations) This section defines the key components of the company's results of operations, including revenue recognition, cost of revenue, research and development, selling, general and administrative expenses, and other income/expense items - Service revenue is recognized for 'last-mile' satellite delivery upon payload release, for in-orbit services ratably over time, and for engineering services upon milestone achievement[283](index=283&type=chunk)[287](index=287&type=chunk)[340](index=340&type=chunk) - Research and development expenses cover activities for developing satellites, satellite technologies, and Orbital Service Vehicles, including equipment, labor, and launch costs for Vigoride testing, with all R&D costs expensed as incurred[289](index=289&type=chunk)[290](index=290&type=chunk) - Selling, general and administrative expenses include human capital, facilities, professional fees, and costs associated with operating as a public company[291](index=291&type=chunk)[292](index=292&type=chunk) [Results of Operations](index=49&type=section&id=Results%20of%20Operations) This section provides a comparative analysis of the company's financial performance for the three and six months ended June 30, 2025 and 2024 [Comparison of Financial Results for the Three Months Ended June 30, 2025 and 2024](index=50&type=section&id=Comparison%20of%20Financial%20Results%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202025%20and%202024) For the three months ended June 30, 2025, net loss decreased by 8% to $6,450 thousand, despite an 84% decline in service revenue, due to a 25% reduction in operating expenses Financial Results Comparison (3 Months Ended June 30, in thousands) | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | $ Change | % Change | | :-------------------- | :----------------------------- | :----------------------------- | :------- | :------- | | Service Revenue | $191 | $1,209 | $(1,018) | (84%) | | Gross Profit | $189 | $1,209 | $(1,020) | (84%) | | Research and development expenses | $2,193 | $2,850 | $(657) | (23%) | | Selling, general and administrative expenses | $3,940 | $5,323 | $(1,383) | (26%) | | Total Operating Expenses | $6,133 | $8,173 | $(2,040) | (25%) | | Loss from Operations | $(5,944) | $(6,964) | $1,020 | (15%) | | Net Loss | $(6,450) | $(7,016) | $566 | (8%) | - Other income (expense), net, decreased by **$454 thousand**, primarily due to an **$835 thousand change in fair value of convertible debt**, partially offset by a **$406 thousand increase in other income** from an employee retention credit[302](index=302&type=chunk)[308](index=308&type=chunk)[309](index=309&type=chunk) [Comparison of Financial Results for the Six Months Ended June 30, 2025 and 2024](index=51&type=section&id=Comparison%20of%20Financial%20Results%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) For the six months ended June 30, 2025, net loss decreased by 18% to $12,622 thousand, driven by a 26% reduction in operating expenses, despite a 70% decrease in service revenue Financial Results Comparison (6 Months Ended June 30, in thousands) | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | $ Change | % Change | | :-------------------- | :----------------------------- | :----------------------------- | :------- | :------- | | Service Revenue | $513 | $1,722 | $(1,209) | (70%) | | Gross Profit | $511 | $1,722 | $(1,211) | (70%) | | Research and development expenses | $4,108 | $5,526 | $(1,418) | (26%) | | Selling, general and administrative expenses | $8,532 | $11,487 | $(2,955) | (26%) | | Total Operating Expenses | $12,640 | $17,013 | $(4,373) | (26%) | | Loss from Operations | $(12,129) | $(15,291) | $3,162 | (21%) | | Net Loss | $(12,622) | $(15,329) | $2,707 | (18%) | - The decrease in R&D expenses was primarily due to a **$1.0 million reduction in payroll costs**, **$0.2 million in subcontractor costs**, and **$0.2 million in other R&D expenses**[313](index=313&type=chunk) - The decrease in SG&A expenses was mainly due to a **$2.0 million decrease in payroll-related expenses** (including **$1.3 million in non-cash stock-based compensation**) and a **$0.9 million decrease in legal expenses**[314](index=314&type=chunk) - Other income (expense), net, worsened by **$455 thousand**, primarily due to an **$835 thousand change in fair value of convertible debt**, partially offset by a **$148 thousand increase in other income** from an employee retention credit[310](index=310&type=chunk)[320](index=320&type=chunk)[321](index=321&type=chunk) [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's ability to meet its short-term and long-term financial obligations, including its going concern status and cash flow activities [Going Concern](index=53&type=section&id=Going%20Concern) The company's ability to continue as a going concern is in substantial doubt due to recurring net losses, a significant accumulated deficit, and substantial cash used in operating activities, necessitating additional capital - The company's ability to continue as a going concern is in **substantial doubt**, reflected by a **$12.6 million net loss** for the six months ended June 30, 2025, an **accumulated deficit of $420.6 million**, and **$7.4 million net cash used in operating activities**[322](index=322&type=chunk)[323](index=323&type=chunk) - Current cash and cash equivalents of **$0.1 million** are insufficient to fund operations, requiring substantial additional capital through equity or debt financings, which may not be available on needed timing or favorable terms[323](index=323&type=chunk)[324](index=324&type=chunk) [Cash Flows](index=54&type=section&id=Cash%20Flows) For the six months ended June 30, 2025, net cash used in operating activities was $7.4 million, investing activities were zero, and net cash provided by financing activities was $6.0 million, mainly from equity offerings Cash Flow Activity (in thousands) | Cash Flow Activity (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(7,422) | $(6,374) | | Net cash used in investing activities | $0 | $(40) | | Net cash provided by financing activities | $5,982 | $5,199 | - Operating cash outflows for H1 2025 were driven by **$3.3 million in payroll**, **$3.5 million in professional fees** (including $0.9 million legal), **$2.4 million in office overheads**, and **$0.8 million in R&D activity expenses**[328](index=328&type=chunk) - Financing cash inflows for H1 2025 included **$5.0 million from the February Offering** and **$2.1 million from the March 2025 Warrant Inducement**, offset by **$0.7 million in convertible note repayments** and **$1.1 million in issuance costs**[332](index=332&type=chunk) [Funding Requirements](index=55&type=section&id=Funding%20Requirements) The company anticipates continued cash consumption for ongoing operations and will require additional equity or debt financing, which may not be available on acceptable terms - The company anticipates continued cash consumption for ongoing operations, including corporate infrastructure, sales, R&D, regulatory approvals, workforce management, IP protection, public company compliance, and litigation defense[334](index=334&type=chunk)[339](index=339&type=chunk) - Additional equity or debt financing is required, and the company faces the risk that such financing may not be available on acceptable terms or at all, which could adversely affect its business[334](index=334&type=chunk) [Commitments and Contingencies](index=55&type=section&id=Commitments%20and%20Contingencies) The company has non-cancellable operating leases for facilities and purchase obligations in the normal course of business, with further details provided in Note 12 - The company has non-cancellable operating leases for facilities and purchase obligations in the normal course of business, with further details in Note 12[335](index=335&type=chunk)[336](index=336&type=chunk) [Off-Balance Sheet Arrangements](index=55&type=section&id=Off-Balance%20Sheet%20Arrangements) The company does not engage in any off-balance sheet activities or have arrangements with unconsolidated entities - The company does not engage in any off-balance sheet activities or have arrangements with unconsolidated entities[337](index=337&type=chunk) [Critical Accounting Policies and Estimates](index=55&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The company's critical accounting policies and estimates, requiring significant management judgment, include revenue recognition, loss contingencies, deferred fulfillment and prepaid launch costs, contract liabilities, stock-based compensation, and income taxes, as detailed in Note 2 - Critical accounting policies requiring significant management judgment include revenue recognition, loss contingencies, deferred fulfillment and prepaid launch costs, contract liabilities, stock-based compensation, and income taxes[338](index=338&type=chunk)[340](index=340&type=chunk)[346](index=346&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=58&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks, primarily interest rate risk, but an immediate 10% change in interest rates would not materially affect the fair value of its cash and cash equivalents, and foreign currency risk is immaterial - An immediate **10% change in interest rates** would not materially affect the fair value of cash and cash equivalents due to their short-term maturities and low-risk profile[360](index=360&type=chunk) - Foreign currency risk is **immaterial** as a significant portion of cash receipts and expenses are generated in U.S. dollars[361](index=361&type=chunk) [Item 4. Controls and Procedures](index=58&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that the company's disclosure controls were not effective as of June 30, 2025, due to a material weakness related to misclassification errors, for which management is implementing a remediation plan - The CEO and CFO concluded that disclosure controls and procedures were **not effective** as of June 30, 2025, due to a **material weakness** in internal control over financial reporting[364](index=364&type=chunk) - The material weakness involved misclassification errors, including **$0.2 million of other income as revenue**, **$0.1 million in legal expenses** as operating costs instead of a reduction to additional paid-in capital, **$1.7 million in prepaid R&D expense**, and **$0.3 million of accounts payable** as accrued liabilities[366](index=366&type=chunk)[371](index=371&type=chunk) - Management is implementing a remediation plan, including revised control processes and engaging outside consultants, with progress regularly reviewed by management and the Disclosure and Audit Committees[368](index=368&type=chunk) Part II - Other Information This part includes disclosures on legal proceedings, risk factors, unregistered sales of equity, defaults, mine safety, other information, and exhibits [Item 1. Legal Proceedings](index=60&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 12 for detailed disclosures regarding the company's legal proceedings - For disclosures related to legal proceedings, refer to **Note 12** in the notes to the condensed consolidated interim financial statements[372](index=372&type=chunk) [Item 1A. Risk Factors](index=60&type=section&id=Item%201A.%20Risk%20Factors) This section directs readers to the "Risk Factors" discussed in the company's most recent Annual Report on Form 10-K for a comprehensive understanding of potential risks - For a comprehensive discussion of risk factors, refer to "Risk Factors" in the company's most recent Annual Report on Form 10-K filed on April 1, 2025, as amended on April 9, 2025[373](index=373&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=60&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) On May 13, 2025, the company issued 26,946 shares of Class A common stock to a vendor to settle $45,000 in outstanding debts, exempt from registration under Section 4(a)(2) of the Securities Act - On May 13, 2025, the company issued **26,946 shares of Class A common stock** to a vendor to settle **$45,000 in outstanding debts**, exempt from registration under Section 4(a)(2) of the Securities Act[374](index=374&type=chunk)[375](index=375&type=chunk) [Item 3. Defaults Upon Senior Securities](index=60&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - There were **no defaults upon senior securities**[376](index=376&type=chunk) [Item 4. Mine Safety Disclosures](index=60&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company reported no mine safety disclosures - There were **no mine safety disclosures**[377](index=377&type=chunk) [Item 5. Other Information](index=60&type=section&id=Item%205.%20Other%20Information) The company irrevocably waived its right to cancel shares held by Velo3D, Inc. under the MSA on August 14, 2025, and estimates its stockholders' equity to exceed $2.5 million as of that date, also detailing the May 2025 Convertible Note and debt settlements - On August 14, 2025, the company irrevocably waived its right under the Master Services Agreement (MSA) with Velo3D, Inc. to cancel shares of its capital stock held by VLD upon expiration or termination[266](index=266&type=chunk)[378](index=378&type=chunk) - After accounting for the MSA waiver and proceeds from the July 2025 Offering and August 2025 Warrant Inducement, the company's stockholders' equity is estimated to exceed **$2.5 million** as of August 14, 2025[379](index=379&type=chunk) - The May 2025 Convertible Note with A.G.P./Alliance Global Partners, initially for **$1.2 million**, was amended to a reduced principal of **$0.5 million**, bearing **4.5% interest** and maturing November 13, 2026, with conversion options into Class A common stock at **$1.67 per share**[380](index=380&type=chunk)[381](index=381&type=chunk)[385](index=385&type=chunk) - Between April 21, 2025, and May 13, 2025, the company issued **191,339 shares of Class A common stock** to four vendors and one customer to settle **$337,942 in outstanding debts**, exempt from registration under Section 4(a)(2) of the Securities Act[386](index=386&type=chunk)[387](index=387&type=chunk) [Item 6. Exhibits](index=62&type=section&id=Item%206.%20Exhibits) This section provides a list of exhibits filed as part of the Form 10-Q, including certificates, warrants, agreements, and certifications - The report includes a list of exhibits such as certificates of designations, forms of warrants, amendments to agreements, and certifications required by the Securities Act of 1934[389](index=389&type=chunk) [Signatures](index=63&type=section&id=Signatures) The report is signed by John Rood, Chief Executive Officer, and Lon Ensler, Chief Financial Officer, on August 19, 2025 - The report is signed by John Rood, Chief Executive Officer, and Lon Ensler, Chief Financial Officer, on **August 19, 2025**[393](index=393&type=chunk)

(Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q For the transition period from to Commission file number 001-39128 Momentus Inc. (Exact name of registrant as specified in its charter) Delaware 84-1905538 (State or other ...

Core Insights - Velo3D has entered a five-year, $15 million master services agreement with Momentus to enhance operational efficiency and drive future success through its new Rapid Production Solutions offering [1][2] - The partnership aims to support mission-critical projects and aligns with Velo3D's long-term growth strategy, providing exceptional value over the next five years [2] - Velo3D's Rapid Production Solutions address the need for innovation and flexibility in manufacturing, enabling customers to accelerate their production capabilities [3][6] Company Overview - Velo3D is a leading U.S. metal 3D printing technology company that has transformed aerospace and defense supply chains through advanced additive manufacturing [1][4] - The company has developed a fully integrated solution that includes Flow print preparation software, Sapphire printers, and Assure quality control systems, powered by its Intelligent Fusion manufacturing process [4] - Velo3D has established partnerships with notable companies such as SpaceX, Lockheed Martin, and General Motors, and was recognized as one of Fast Company's Most Innovative Companies for 2023 [4] Industry Context - The additive manufacturing industry has faced limitations for nearly 30 years, but Velo3D has overcome these challenges, allowing for the production of high-value metal parts previously deemed impossible [3][4] - Velo3D's solutions enable rapid innovation in production-ready manufacturing, particularly in aerospace, defense, and energy sectors, allowing companies to shorten design cycles and achieve production qualification faster [6] - The Rapid Production Solutions offering provides flexible production pathways, including vertical integration within customer operations and partnerships with contract manufacturers, facilitating scalable production without significant capital investment [6]

Financial Performance and Challenges - Momentus has incurred significant losses since inception and expects to continue incurring losses in the future, indicating challenges in achieving profitability[16] - The company has a limited operating history, making it difficult to evaluate future prospects and associated risks[16] - As of December 31, 2024, the company had cash and cash equivalents of $1.6 million, primarily in highly liquid investments[319] - The company is exposed to various market risks, including interest rate changes and funding availability[318] - The company’s financial instruments are not significantly affected by interest rate changes due to the low-risk profile of its investments[319] Technology and Innovation - The company has developed the Microwave Electrothermal Thruster (MET) technology, which has reached Technology Readiness Level 9, demonstrating its efficiency and safety with water as a propellant[27] - Momentus has developed a patent-pending water plasma propulsion technology, with eight issued patents and four non-U.S. issued patents as of December 31, 2024[43] - The company holds multiple patents related to spacecraft propulsion, with expiration dates set for March 12, 2040, including an MET thruster design that improves vorticity through an annular structure[47] Market Opportunities and Services - Momentus plans to provide "last mile" satellite transportation and other on-orbit services, aiming to lower operating costs for satellite operators while minimizing environmental impact[28] - The company anticipates considerable growth in demand for small satellites and satellite buses, driven by advancements in technology and the emergence of new space-based business models over the next decade[38] - The space transportation segment is expected to grow as companies seek versatile and low-cost ways to deliver satellites to specific orbits, with a focus on reducing costs compared to dedicated small launch vehicles[35] - Momentus aims to develop in-orbit servicing capabilities, including inspection, refueling, and maintenance, to address the growing need for satellite servicing as the number of satellites increases[39] - The company plans to offer high-volume production of low-cost satellite buses based on Vigoride's technologies, integrating unique customer payloads for various missions[39] Operations and Partnerships - The company is focused on obtaining necessary governmental licenses and approvals, which are critical for its operations and future growth[16] - Momentus relies on partnerships with leading launch service providers, such as SpaceX, to enhance its satellite deployment capabilities[30] - The company has established relationships with multiple launch providers, including SpaceX, to maximize flexibility and access to various launch options[42] - The company has surrendered its NOAA license for future missions and will apply for required authorizations on a case-by-case basis[51] Competitive Landscape - Momentus operates in a highly competitive industry, which may pressure pricing and impact revenue generation[16] - The market for in-space infrastructure services is not well established, and growth may be slower than anticipated, affecting future revenue[16] - Momentus is focused on leveraging common technologies through modular vehicles to compete across multiple markets without significantly increasing development costs[43] Workforce and Compliance - The company has 24 full-time employees as of March 28, 2025, focusing on optimizing human capital resources and promoting diversity[59] - The company is actively engaged in recruiting talent with significant experience from leading defense and aerospace sectors[59] - The company is subject to stringent U.S. export control laws, including ITAR and EAR, which could impact operational capabilities and costs if compliance is not maintained[53] - The company has been granted FCC licenses for the Vigoride 5 and Vigoride 6 missions, indicating compliance with regulatory requirements for satellite operations[49] Mission Progress and Development - The inaugural test mission of the Vigoride Orbital Service Vehicle (OSV) was conducted in 2022, with two additional missions in 2023, showcasing the company's commitment to developing its transportation services[29] - Momentus has launched four missions to date, deploying 17 customer satellites and providing hosted payload services, with three missions involving the operation of the Vigoride OSV in orbit[36] - The company introduced variants of Vigoride tailored for constellation applications, M-500 and M-1000, in August 2023[34] - Momentus aims to transition its OSVs from expendable to reusable, which could significantly reduce service delivery costs[31]

Financial Performance - Service revenue for the nine months ended September 30, 2024, was $1,829,000, down from $2,066,000 for the same period in 2023, indicating a decrease of about 11.5%[14] - Gross profit for the nine months ended September 30, 2024, was $1,763,000, compared to $1,559,000 for the same period in 2023, reflecting an increase of approximately 13%[14] - Total operating expenses for the nine months ended September 30, 2024, were $24,647,000, down from $55,886,000 in the same period of 2023, a reduction of about 56%[14] - Net loss for the nine months ended September 30, 2024, was $23,087,000, compared to a net loss of $54,819,000 for the same period in 2023, showing an improvement of approximately 58%[14] - Total revenue for the nine months ended September 30, 2024, was $1.829 million, a decrease from $2.066 million in the same period of 2023[61] Cash and Assets - Total current assets decreased from $10,731,000 as of December 31, 2023, to $5,393,000 as of September 30, 2024, representing a decline of approximately 50%[12] - Cash and cash equivalents decreased from $2,118,000 as of December 31, 2023, to $798,000 as of September 30, 2024, a decline of about 62%[12] - As of September 30, 2024, Momentus had total stockholders' equity (deficit) of $(5,404,000), an improvement from $(396,134,000) as of March 31, 2024[17] - As of September 30, 2024, total prepaid and other current assets amounted to $4.2 million, down from $8.5 million as of December 31, 2023[111] - The net value of property, machinery, and equipment was $2.4 million as of September 30, 2024, compared to $3.3 million as of December 31, 2023[112] Liabilities and Deficits - The total liabilities increased from $17,462,000 as of December 31, 2023, to $19,509,000 as of September 30, 2024, an increase of approximately 12%[12] - The accumulated deficit increased from $(373,047,000) as of December 31, 2023, to $(396,134,000) as of September 30, 2024, reflecting a deterioration of about 6.2%[12] - Momentus’s accumulated deficit as of September 30, 2024, was $(396,134,000), indicating ongoing challenges in achieving profitability[17] Research and Development - Research and development expenses for the nine months ended September 30, 2024, were $7,731,000, down from $26,315,000 in the same period of 2023, a decrease of about 70%[14] - The company is focused on developing its M-1000 satellite bus, which integrates innovations to improve sensor capability, maneuverability, and lower costs[25] - Momentus has completed work on a Small Business Innovation Research contract to support U.S. Department of Defense payloads, enhancing the M-1000 satellite bus and Vigoride OSV[26] Capital and Financing - The company is seeking to raise substantial additional capital to fund its operations and business plan, as current cash levels are insufficient[33] - In September 2024, the company raised approximately $2.8 million through a private placement transaction, issuing pre-funded and Class A warrants[135][137] - The company entered into a Term Loan agreement providing up to $40 million in borrowing capacity, of which $25 million was drawn at inception[123] Legal Matters - The company recorded a litigation settlement contingency of $8.5 million related to the Securities Class Actions, with $4.0 million expected from insurance proceeds[182] - A proposed settlement for certain shareholder derivative litigation was reached on August 26, 2024, requiring the Company to adopt corporate governance reforms for a minimum of four years[192] - Momentus is involved in multiple class action lawsuits alleging material misrepresentations regarding the Proposed Transaction, with claims dating back to August 9, 2021[200] Stock and Equity - The company issued 2,220,000 common shares and related warrants in a registered offering, net of issuance costs, resulting in an increase of $7,171,000 in additional paid-in capital[17] - The 2021 Equity Incentive Plan had 324,302 shares remaining available for grant as of September 30, 2024, following an increase of 248,508 shares due to the evergreen provision[162] - The company has a stock incentive plan under which equity awards are granted to employees, directors, and consultants[84] Operational Highlights - Momentus has launched four missions to date, deploying 17 customer satellites and providing hosted payload services, demonstrating its operational capabilities in space[24] - The company has produced its next Orbital Service Vehicle, Vigoride 7, which is intended for future missions or as a satellite bus, showcasing its commitment to innovation in space transportation[24] - Momentus has successfully demonstrated its Vigoride OSV in space, accumulating significant flight heritage through three missions[24]

Financial Performance - Service revenue for the three months ended June 30, 2024, was $1,209,000, compared to $1,705,000 for the same period in 2023, indicating a decrease of about 29%[13] - Gross profit for the six months ended June 30, 2024, was $1,317,000, down from $1,339,000 in the same period of 2023, reflecting a slight decline of approximately 1.6%[13] - Net loss for the three months ended June 30, 2024, was $7,016,000, compared to a net loss of $18,835,000 for the same period in 2023, representing an improvement of approximately 62.8%[13] - Momentus Inc. reported a net loss of $15.3 million for the six months ended June 30, 2024, compared to a net loss of $39.7 million for the same period in 2023, indicating a significant improvement in financial performance[18] - The company reported a net loss per share of $0.42 for the three months ended June 30, 2024, compared to a net loss per share of $9.81 for the same period in 2023, indicating a significant improvement[13] - The company reported a net loss of $7.0 million for the quarter ended June 30, 2024, compared to a net loss of $18.8 million in the same quarter of 2023, representing a 63% improvement[197] Assets and Liabilities - Total current assets decreased from $10,731,000 as of December 31, 2023, to $6,159,000 as of June 30, 2024, representing a decline of approximately 42.5%[11] - Cash and cash equivalents decreased from $2,118,000 as of December 31, 2023, to $897,000 as of June 30, 2024, a decline of about 57.7%[11] - Total liabilities decreased from $17,462,000 as of December 31, 2023, to $16,802,000 as of June 30, 2024, indicating a reduction of approximately 3.8%[11] - Total stockholders' equity (deficit) decreased from $3,187,000 as of December 31, 2023, to $(1,796,000) as of June 30, 2024, reflecting a change of approximately 156.4%[11] - Total prepaid and other current assets decreased from $8.5 million as of December 31, 2023, to $4.8 million as of June 30, 2024[92] - The company reported a net property, machinery, and equipment value of $2.8 million as of June 30, 2024, down from $3.3 million as of December 31, 2023[93] Expenses - Total operating expenses for the three months ended June 30, 2024, were $8,173,000, compared to $20,211,000 for the same period in 2023, showing a reduction of about 59.5%[13] - Research and development expenses for the three months ended June 30, 2024, were $2,850,000, compared to $10,204,000 for the same period in 2023, a decrease of about 72%[13] - Selling, general and administrative expenses also decreased from $10.0 million in Q2 2023 to $5.3 million in Q2 2024, reflecting cost-cutting measures across various categories[201] - Momentus incurred stock-based compensation expenses of $3.2 million for the six months ended June 30, 2024, compared to $4.3 million in the same period of 2023, reflecting cost management efforts[18] Cash Flow and Financing - The company used net cash of $6.4 million to fund its operating activities for the six months ended June 30, 2024, and had cash and cash equivalents of $0.9 million as of June 30, 2024[26] - The company expects to finance its operations through equity or debt financings, which may not be available on favorable terms[28] - The company continues to seek opportunities to access additional capital to alleviate its financial conditions[29] - Momentus raised gross proceeds of $247.3 million from its business combination with Stable Road Acquisition Corp, providing significant capital for future operations[24] Operational Highlights - Momentus has successfully launched four missions to date, deploying 17 customer satellites and providing hosted payload services, demonstrating operational capabilities[20] - The company has developed the Vigoride 7 Orbital Service Vehicle, which is intended for future missions or as a satellite bus, showcasing ongoing innovation in its product offerings[20] - Momentus is now offering the M-1000 satellite bus, which integrates innovations to improve sensor capability, maneuverability, and lower costs, positioning the company for growth in the satellite bus market[21] - The company anticipates considerable growth in the space transportation segment, driven by demand for small satellite transportation to low-earth orbit and emerging applications beyond[179] Legal and Regulatory Matters - The Company agreed to settle the Securities Class Actions for a total payment of $8.5 million, with at least $4.0 million funded by insurance proceeds[135] - The Company intends to vigorously defend against multiple shareholder derivative actions alleging similar claims as the Securities Class Actions[142][143] - The Company disputes allegations made by TLLT, which seeks damages in excess of $7.6 million related to investment contracts[147] - The Delaware Supreme Court affirmed the judgment of the Delaware Court of Chancery regarding the indemnification claim by Mr. Kokorich on November 30, 2023[151] Future Outlook - The company’s ability to continue as a going concern is dependent on successfully raising capital to fund operations and execute its business plan[25] - There is substantial doubt about the company's ability to continue as a going concern for at least one year from the issuance of the financial statements due to insufficient cash to fund operations and the need to raise additional capital[28] - The company’s consolidated interim financial statements have been prepared on a going concern basis, indicating potential adjustments if the company cannot continue operations[29]

Financial Performance - Net loss for the quarter was $8.313 million, compared to $20.825 million in the same period last year, a 60% improvement[13] - Net loss for Q1 2024 was $8.3 million, compared to $20.8 million in Q1 2023, showing a significant improvement[19] - Net cash used in operating activities decreased to $5.3 million in Q1 2024 from $18.7 million in Q1 2023[19] - Net loss improved by 60% to $8.3 million in Q1 2024 from $20.8 million in Q1 2023, reflecting reduced operating expenses and improved revenue[200] Revenue and Expenses - Service revenue increased from $22 thousand to $513 thousand, a significant growth of 2232%[13] - Research and development expenses decreased from $10.119 million to $2.676 million, a reduction of 74%[13] - Selling, general and administrative expenses decreased from $10.270 million to $6.164 million, a reduction of 40%[13] - Total operating expenses decreased from $20.389 million to $8.840 million, a reduction of 57%[13] - Service revenue increased to $513,000 in Q1 2024, up from $22,000 in Q1 2023, driven by engineering services for the Space Development Agency[200][201] - Research and development expenses decreased by 74% to $2.7 million in Q1 2024 from $10.1 million in Q1 2023, primarily due to reduced payroll and subcontractor costs[200][202] - Selling, general and administrative expenses decreased by 40% to $6.2 million in Q1 2024 from $10.3 million in Q1 2023, mainly due to lower professional fees and payroll costs[200][203] - Interest income decreased significantly to $18,000 in Q1 2024 from $555,000 in Q1 2023 due to changes in investment strategies[200][205] - Other income increased by 179% to $53,000 in Q1 2024 from $19,000 in Q1 2023, primarily due to non-recurring fees[200] Cash and Assets - Cash and cash equivalents decreased from $2.118 million to $1.672 million, a decline of 21%[11] - Total current assets decreased from $10.731 million to $9.319 million, a decline of 13%[11] - Cash and cash equivalents at the end of Q1 2024 were $2.0 million, down from $39.9 million at the end of Q1 2023[19] - Prepaid and other current assets decreased from $8.5 million in December 2023 to $7.2 million in March 2024, primarily due to a reduction in prepaid launch costs from $1.3 million to $0[88] - Property, machinery, and equipment net value decreased from $3.3 million in December 2023 to $3.0 million in March 2024, with depreciation expense remaining consistent at $0.2 million for both periods[91] - Intangible assets net value increased slightly from $341 thousand in December 2023 to $347 thousand in March 2024, with a weighted average remaining amortization period of 6.0 years[92][94] Liabilities and Equity - Total liabilities decreased from $17.462 million to $15.254 million, a decline of 13%[11] - Total stockholders' equity increased from $3.187 million to $3.485 million, a growth of 9%[11] - Accrued liabilities decreased from $4.8 million in December 2023 to $4.5 million in March 2024, with a significant drop in compensation expense from $392 thousand to $81 thousand[98] - The company repaid the remaining principal balance of its $25.0 million Term Loan during Q1 2024, with interest expense amortization decreasing from $0.5 million in March 2023 to $45.7 thousand in March 2024[102] Business Operations and Contracts - Momentus has launched four missions, deployed 17 customer satellites, and successfully demonstrated its Vigoride OSV in space[21] - The company has produced Vigoride 7, its next Orbital Service Vehicle, intended for future missions or as a satellite bus[21] - Momentus is now offering the M-1000 satellite bus, which shares substantial commonality with Vigoride and is designed for rapid and scalable production[22] - The company completed work on a Small Business Innovation Research contract, modifying the M-1000 and Vigoride systems to support U.S. Department of Defense payloads[23] - NASA selected the company for the Venture-Class Acquisition of Dedicated Rideshare (VADR) contract on August 22, 2024[170] Capital and Financing - Momentus received $247.3 million in gross proceeds from its Business Combination in August 2021[25] - The company completed a March 2024 securities offering, issuing 1.32 million shares of Class A common stock at $0.87 per share and raising $4.0 million in gross proceeds[105][106] - The March 2024 offering included pre-funded warrants for 3.3 million shares and warrants for 4.6 million shares, with the warrants priced at $0.74 per share and a 5-year term[105][106] - The company amended its January Warrants, reducing the exercise price from $0.96 to $0.74 per share and extending the termination date from January 2029 to June 2029[107] - The Company estimated an incremental increase in fair value of approximately $0.1 million for the January Modified Warrants using the Black-Scholes valuation model[108] - The Company issued 3,304,280 shares of Class A common stock as a result of all March Pre-Funded Warrants being exercised, receiving an immaterial amount of cash proceeds[108] - The January Offering included 900,000 shares of Class A common stock at $1.09 per share, 2,787,000 January Pre-Funded Warrants, and 3,687,000 January Warrants, with aggregate gross proceeds of approximately $4.0 million[109][110] - The Company estimated an incremental increase in fair value of approximately $1.2 million for the November Modified Warrants using the Black-Scholes valuation model[112] - The Company issued 2,787,000 shares of Class A common stock as a result of all January Pre-Funded Warrants being exercised, receiving an immaterial amount of cash proceeds[112] - The Company paid $10.0 million to the Co-Founders in March 2023 as part of the stock repurchase agreements, triggered by raising $10.0 million in the February Offering[113] - The company raised $2.75 million through a private placement offering of pre-funded warrants and Class A/B warrants in September 2024[173] Legal and Litigation - The company recorded a litigation settlement contingency of $8.5 million for the Securities Class Actions, with $4.0 million covered by insurance proceeds[138] - Shareholder derivative action filed by Justin Rivlin on April 25, 2023, alleging core claims similar to Securities Class Actions, with the company filing a motion to dismiss[144] - Shareholder derivative action filed by Brian Lindsey on June 30, 2023, also alleging core claims similar to Securities Class Actions, with the company intending to defend vigorously[145] - Unopposed motion for preliminary approval of settlement filed on August 26, 2024, with a settlement hearing scheduled for November 21, 2024[146] - TLLT filed a lawsuit on July 20, 2022, alleging fraudulent inducement and breach of contract, seeking damages exceeding $7.6 million[147][148] - Former co-founders Mikhail Kokorich and Lev Khasis filed claims for indemnification and advancement, with the company disputing these claims[149][150][151][152] - Delaware class actions (Shirley, Lora, and Burk Actions) consolidated under In re Momentus, Inc. Stockholders Litigation, with motions to dismiss filed and hearings scheduled[153][154][155][156][157][158] - Threatened claim by Stephen J. Purcell for $80,000 in attorney's fees related to a stockholder litigation demand letter, which the company disputes[159][160] - Disclosure demand letters and threatened fee petitions from Rigrodsky Law and Grabar Law Office, with the company disputing the merit of these claims[161] - Ongoing litigation may result in significant defense and settlement costs, potentially impacting the company's financial condition[162][163] - The company paid $526,000 to settle indemnification claims with former employees in September 2024[170] Stock and Compensation - The company's total stock-based compensation expense for RSUs & RSAs was $1.367 million for the three months ended March 31, 2024, compared to $1.601 million in the same period in 2023[128] - Stock-based compensation for the three months ended March 31, 2024 totaled $1.443 million, compared to $1.720 million in the same period in 2023[127][128] - Total unrecognized compensation cost related to unvested RSUs as of March 31, 2024 is $12.2 million, expected to be recognized over a weighted-average period of 1.2 years[126] - Outstanding unvested and expected to vest RSUs had an intrinsic value of $0.1 million as of March 31, 2024[126] - The 2021 Equity Incentive Plan increased by 248,508 shares due to the evergreen provision and 830 shares due to forfeitures, with 317,938 shares remaining available for grant as of March 31, 2024[119] - The Company had an outstanding liability of $23.4 thousand pertaining to the 2021 ESPP Plan as of March 31, 2024[121] - The company issued 2,700 shares of Class A common stock to a third-party consulting firm in March 2023, with a fair value of $0.1 million[129] - Potential common shares excluded from diluted earnings per share calculation due to anti-dilutive effect totaled 14,823,062 for the three months ended March 31, 2024[131] Taxes and Accounting - The company's effective tax rate for Q1 2024 and Q1 2023 was 0%, influenced by factors such as changes in statutory rates and valuation of deferred tax assets[164] - The effective tax rate varies due to changes in statutory rates, valuation of deferred tax assets, and nondeductible items, with a federal statutory rate of 21%[197] - The company accounts for income taxes using the asset and liability method, with deferred tax assets and liabilities measured using the enacted tax rate[77] - The company is currently evaluating the impact of ASU 2023-03 and ASU 2023-06 on its financial statement disclosures and results of operations[83] Other Financial Information - The company recorded $0.5 million of revenue from U.S. Government engineering services in Q1 2024, compared to $0 in Q1 2023[49] - Total revenue for Q1 2024 was $513 thousand, consisting of $478 thousand from engineering services and $35 thousand from forfeited customer deposits[51] - Customer deposit balances were $1.1 million as of March 31, 2024, with $0.6 million classified as non-current deposits[50] - Deferred fulfillment and prepaid launch costs decreased from $1.7 million in December 2023 to $0.4 million in March 2024[42] - Restricted cash of $0.4 million is held as collateral for a letter of credit related to a lease agreement[41] - The company paid $10.0 million to satisfy stock repurchase agreement contingent liabilities in Q1 2023[56] - Warrant liability remained unchanged at $3 thousand from December 2023 to March 2024, with increased volatility assumption from 113.50% to 151.72%[56][57] - The company is classified as an emerging growth company and expects to continue using extended transition period benefits for new accounting standards[37][39] - Fixed assets have estimated useful lives ranging from 3 years for computer equipment to 7 years for machinery and equipment[38] - Intangible assets, primarily patents, are amortized over 10 years using the straight-line method[45] - The company recorded equity related to the Public Warrants of $20.2 million and a liability related to the Private Warrants of $31.2 million upon the consummation of the Business Combination[62] - The company issued 225,450 Private Warrants and 172,500 Public Warrants, each entitling the holder to purchase one share of Class A common stock at $575.00 per share[60] - The fair value of the Private Warrants was measured using the Black-Scholes option-pricing model and recorded as liabilities on the condensed consolidated balance sheet[61] - The company recognized $0.5 million of revenue during the quarter ended March 31, 2024, with 93.2% derived domestically and 6.8% from foreign customers[81] - The company did not contribute to its 401(k) plan during the three months ended March 31, 2024 and 2023[71] - The company evaluates the carrying value of long-lived assets annually and recorded no impairments during the three months ended March 31, 2024 and 2023[67] - The company's operating lease ROU assets and lease liabilities are recognized at the lease inception date based on the present value of lease payments[74] - The company's cash and cash equivalents are placed in banks that management believes are creditworthy, though deposits may exceed federally insured limits[79] - Future unconditional purchase obligations as of March 31, 2024 total $6.072 million, with $3.097 million due in the remainder of 2024 and $2.975 million in 2025[132] - The company paid $40 million to the Co-Founders following the Business Combination and an additional $10 million in February 2023[140][141] - Legal expenses related to CFIUS review and other matters were approximately $0.1 million for both the three months ended March 31, 2024 and 2023[141] - The company issued $500,000 in promissory notes to directors and an officer at a 5.12% annual interest rate, repaid in full by September 12, 2024[165] - The company borrowed $2.3 million through a convertible promissory note with a 15% annual interest rate, secured by company assets, and maturing on September 1, 2025[167] - The convertible note allows for interest payments in shares of Class A common stock at a conversion price of $0.53 per share[168] - The company recognized $0.5 million in revenue for Q1 2024, primarily from U.S. government engineering services and forfeited customer deposits[187] - As of March 31, 2024, the company held $1.1 million in customer deposits, with $0.6 million recorded as non-current contract liabilities[187] - The company has launched four missions, deployed 17 customer satellites, and successfully demonstrated its Vigoride OSV in space[185] - The company expensed all research and development costs associated with developing and building its vehicles as of March 31, 2024[191] - The company incurred additional expenses as a public company, including compliance and reporting obligations under SEC regulations[192] - The fair value of warrant liability decreased by $112,000 in Q1 2023, driven by market price changes of publicly listed warrants[200][204]