Momentus Inc. (NASDAQ:MNTS) Q4 2022 Earnings Conference Call March 7, 2023 5:00 PM ET Company Participants Darryl Genovesi - Vice President of Investor Relations John Rood - Chief Executive Officer Dennis Mahoney - Interim Chief Financial Officer Conference Call Participants Erik Rasmussen - Stifel Financial Corp. Josh Corn - Barclays Edison Yu - Deutsche Bank James Ratcliffe - Evercore Inc. Operator Ladies and gentlemen, thank you for standing by. Welcome to the Momentus, Inc. Fourth Quarter 2022 Earnings ...

PART I [Business Overview](index=7&type=section&id=Item%201.%20Business) Momentus Inc. provides 'last mile' satellite transportation and in-orbit services using Vigoride OSVs with water plasma propulsion, holding **$33 million** in backlog and conducting test missions - Momentus Inc. offers 'last mile' satellite transportation, payload-hosting, on-orbit satellite refueling, inspection, maintenance, de-orbiting, and debris removal services[29](index=29&type=chunk) - The company's primary vehicle, Vigoride, is designed for fast, versatile, and cost-effective 'last mile' transportation and infrastructure services in LEO[31](index=31&type=chunk) - Momentus has signed contracts for approximately **$33 million** in backlog as of February 28, 2023, with 18 companies across 12 countries[32](index=32&type=chunk)[77](index=77&type=chunk) - The company's water plasma propulsion technology offers a competitive advantage through its balance of fuel efficiency and thrust, utilizing water as a safer and more efficient propellant[52](index=52&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk) - Momentus conducted its inaugural Vigoride test mission in 2022, began its second in January 2023, and plans two more in 2023, pending approvals[31](index=31&type=chunk)[48](index=48&type=chunk) - Competitive advantages include standardized modular vehicles, unique patent-pending water plasma propulsion, a mission-driven strategy, launch provider compatibility, strong relationships with providers like SpaceX, and an experienced team[78](index=78&type=chunk) - Momentus is subject to regulations from the FCC, NOAA, FAA, and stringent U.S. export and import control laws (ITAR, EAR)[81](index=81&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk) - The company entered a National Security Agreement (NSA) in June 2021, requiring divestment of foreign-controlled interests and imposing compliance measures and costs to protect national security[90](index=90&type=chunk)[91](index=91&type=chunk) [Risk Factors](index=18&type=section&id=Item%201A.%20Risk%20Factors) Momentus faces significant risks including capital needs, technology development challenges, intense competition, regulatory hurdles from the NSA and export controls, and ongoing litigation - The company has a limited history of delivering customer satellites and experienced anomalies in initial missions, potentially harming its reputation and financial condition[96](index=96&type=chunk)[97](index=97&type=chunk)[102](index=102&type=chunk) - Momentus requires substantial additional funding for its long-term business plan, with current cash and cash equivalents of **$61.1 million** as of December 31, 2022, expected to last at least 12 months[111](index=111&type=chunk)[414](index=414&type=chunk) - Successful development and validation of satellite vehicles and water plasma propulsion technology are crucial, facing many uncertainties and potential delays[117](index=117&type=chunk)[103](index=103&type=chunk) - Failure to obtain timely governmental licenses and approvals (FCC, FAA, NOAA) could materially adversely affect financial condition and backlog[105](index=105&type=chunk)[108](index=108&type=chunk) - Momentus operates in highly competitive industries with larger competitors, facing risks of price reduction and slower market growth for in-space infrastructure services[120](index=120&type=chunk)[126](index=126&type=chunk) - The company's **$33 million** backlog (as of Feb 28, 2023) is subject to customer cancellations and may not convert into expected revenue, posing significant customer concentration risk[127](index=127&type=chunk)[129](index=129&type=chunk)[335](index=335&type=chunk)[336](index=336&type=chunk) - Compliance with the National Security Agreement (NSA) incurs significant costs and restrictions, with potential monetary penalties of **$100,000 per day** (up to **$1,000,000 per breach**) for non-compliance[185](index=185&type=chunk)[186](index=186&type=chunk) - The NSA-appointed Security Director has substantial authority over business decisions, including blocking or terminating contracts, which could materially affect operations[191](index=191&type=chunk)[192](index=192&type=chunk) - Momentus is subject to stringent U.S. export and import control laws (ITAR, EAR), with past self-reported violations and ongoing risks of penalties or operational restrictions[232](index=232&type=chunk)[234](index=234&type=chunk)[235](index=235&type=chunk) - The company is involved in substantial litigation, including securities class actions and shareholder derivative actions, potentially resulting in significant legal expenses and liabilities[218](index=218&type=chunk)[219](index=219&type=chunk)[222](index=222&type=chunk)[223](index=223&type=chunk)[224](index=224&type=chunk)[225](index=225&type=chunk)[226](index=226&type=chunk)[227](index=227&type=chunk) [Unresolved Staff Comments](index=48&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company has no unresolved staff comments to report - No unresolved staff comments[283](index=283&type=chunk) [Properties](index=48&type=section&id=Item%202.%20Properties) Momentus leases an approximately 65,000-square-foot facility in San Jose, California, which serves as its headquarters, propulsion laboratory, and Vigoride assembly and test center, with the lease expiring in February 2028 - Momentus' primary facility is a **65,000-square-foot** leased space in San Jose, California[93](index=93&type=chunk)[284](index=284&type=chunk) - The facility serves as the company's headquarters, propulsion laboratory, and Vigoride assembly and test center[93](index=93&type=chunk) - The lease for the primary facility expires in February 2028[284](index=284&type=chunk) [Legal Proceedings](index=48&type=section&id=Item%203.%20Legal%20Proceedings) The company is subject to various claims and lawsuits in the ordinary course of business, but currently does not consider any pending proceedings to be material to its business or likely to have a material adverse effect on future operating results, financial condition, or cash flows - Momentus is subject to various claims, lawsuits, and other legal and administrative proceedings in the ordinary course of business[286](index=286&type=chunk) - The company does not currently consider any pending claims, lawsuits, or proceedings to be material to its business or likely to have a material adverse effect on future operating results, financial condition, or cash flows[286](index=286&type=chunk) - Further disclosures related to legal proceedings are incorporated by reference from Note 14 to the Consolidated Financial Statements[287](index=287&type=chunk) [Mine Safety Disclosures](index=49&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company has no mine safety disclosures to report - No mine safety disclosures are applicable[288](index=288&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=50&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Momentus Inc.'s Class A common stock (MNTS) and warrants (MNTSW) began trading on Nasdaq on August 13, 2021, with **39 holders** of record and no plans for cash dividends - Momentus Inc.'s Class A common stock (MNTS) and public warrants (MNTSW) began trading on the Nasdaq Global Market on August 13, 2021[290](index=290&type=chunk) - As of February 28, 2023, there were **39 holders** of record for the company's common stock[291](index=291&type=chunk) Equity Compensation Plan Summary (as of December 31, 2022) | Category | Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants, and Rights | Weighted Average Exercise Price of Outstanding Options, Warrants and Rights | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (excluding securities reflected in column (a)) | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 7,509,540 | $1.21 | 3,783,559 | | Equity compensation plans not approved by security holders | 2,828,110 | N/A | 1,083,552 | | **Total** | **10,337,650** | | **4,867,111** | - The company has no current plans to pay cash dividends on its common stock[292](index=292&type=chunk) - No issuer purchases of equity securities were made during the three months ended December 31, 2022[293](index=293&type=chunk) [[Reserved]](index=51&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and not applicable to the report - This item is not applicable[295](index=295&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=51&type=section&id=Item%207.%20Momentus%27%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition) This section discusses Momentus' financial condition, operational results, Vigoride development, and water plasma propulsion, detailing mission impacts, backlog, liquidity, and critical accounting policies - Momentus offers 'last mile' satellite transportation, payload-hosting, on-orbit satellite refueling, inspection, maintenance, de-orbiting, and debris removal services[299](index=299&type=chunk) - The company's Vigoride 3 mission in May 2022 experienced anomalies but deployed seven of nine customer satellites; Vigoride 5, launched in January 2023, is in good health and commissioning[304](index=304&type=chunk)[305](index=305&type=chunk)[308](index=308&type=chunk)[309](index=309&type=chunk) - As of February 28, 2023, Momentus has **$33 million** in cancellable backlog from 18 companies in 12 countries, with revenue realization subject to risks[301](index=301&type=chunk)[335](index=335&type=chunk) - The company's water plasma propulsion technology is still in development and has not yet experimentally confirmed its ability to generate thrust in space, crucial for commercial viability[314](index=314&type=chunk) - Momentus aims to develop reusable vehicles by mid-decade, leveraging water as a safe and efficient propellant to lower costs and environmental impact[325](index=325&type=chunk) - The company incurred operating losses of **$91.3 million** in 2022 and **$99.8 million** in 2021, expecting increased operating expenses with scaling operations and R&D investment[109](index=109&type=chunk)[398](index=398&type=chunk) Consolidated Statements of Operations (Years Ended December 31, 2022 and 2021) | (in thousands) | 2022 | 2021 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Service revenue | $299 | $330 | $(31) | (9%) | | Cost of (reversal of) revenue | $26 | $(135) | $161 | (119%) | | Gross profit | $273 | $465 | $(192) | (41%) | | Research and development expenses | $41,721 | $51,321 | $(9,600) | (19%) | | Selling, general and administrative expenses | $49,827 | $48,905 | $922 | 2% | | Operating loss | $(91,275) | $(99,761) | $8,486 | (9%) | | Decrease in fair value of SAFE notes | $— | $209,291 | $(209,291) | (100%) | | Decrease in fair value of warrants | $5,185 | $37,330 | $(32,145) | (86%) | | Realized loss on disposal of asset | $(168) | $(17) | $(151) | N/A | | Interest income | $522 | $2 | $520 | N/A | | Interest expense | $(5,262) | $(14,229) | $8,967 | (63%) | | SEC settlement | $— | $(7,000) | $7,000 | (100%) | | Litigation settlement, net | $(4,500) | $— | $(4,500) | N/A | | Other income (expense) | $54 | $(4,960) | $5,014 | (101%) | | (Loss) income before income taxes | $(95,444) | $120,656 | $(216,100) | (179%) | | Income tax expense | $— | $2 | $(2) | (100%) | | Net (loss) income | $(95,444) | $120,654 | $(216,098) | (179%) | - Net cash used in operating activities was **$87.9 million** in 2022, primarily due to headcount, R&D, professional fees, and legal expenses[416](index=416&type=chunk) - The company's cash and cash equivalents were **$61.1 million** as of December 31, 2022, anticipated to support operations for at least 12 months[414](index=414&type=chunk) - Momentus completed a Registered Direct Offering on February 27, 2023, raising **$10.0 million**, which triggered a **$10.0 million** liability under co-founder stock repurchase agreements[345](index=345&type=chunk)[360](index=360&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=70&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures) Momentus is exposed to market risks, including interest rate risk and foreign currency risk, though an immediate **10%** change in interest rates would not materially affect cash and cash equivalents due to their short-term, low-risk profile - The company's market risk exposure primarily stems from interest rates and foreign currency fluctuations[464](index=464&type=chunk) - An immediate **10%** change in interest rates would not materially affect the fair market value of cash and cash equivalents due to their short-term, low-risk profile[466](index=466&type=chunk) - The Term Loan bears interest at a fixed rate, making it unaffected by changes in interest rates[467](index=467&type=chunk) - Foreign currency transactions were not material for 2022 and 2021, as most cash receipts and expenses are in U.S. dollars[468](index=468&type=chunk) [Financial Statements and Supplementary Data](index=72&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents Momentus Inc.'s audited consolidated financial statements for 2022 and 2021, including balance sheets, statements of operations, equity, and cash flows, with comprehensive notes on accounting policies and financial items - The consolidated financial statements include the Balance Sheets, Statements of Operations, Statements of Stockholders' Equity (Deficit), and Statements of Cash Flows for the periods ended December 31, 2022 and 2021[473](index=473&type=chunk) Consolidated Balance Sheets (as of December 31, 2022 and 2021) | (in thousands) | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Cash and cash equivalents | $61,094 | $160,036 | | Total current assets | $76,274 | $169,664 | | Total assets | $92,423 | $185,825 | | Total current liabilities | $43,226 | $38,867 | | Total non-current liabilities | $10,590 | $15,070 | | Total liabilities | $53,816 | $53,937 | | Total shareholders' equity | $38,607 | $131,888 | Consolidated Statements of Operations (Years Ended December 31, 2022 and 2021) | (in thousands) | 2022 | 2021 | | :--- | :--- | :--- | | Service revenue | $299 | $330 | | Cost of (reversal of) revenue | $26 | $(135) | | Gross profit | $273 | $465 | | Research and development expenses | $41,721 | $51,321 | | Selling, general and administrative expenses | $49,827 | $48,905 | | Loss from operations | $(91,275) | $(99,761) | | Net (loss) income | $(95,444) | $120,654 | | Net (loss) income per share, basic | $(1.17) | $1.85 | | Net (loss) income per share, fully diluted | $(1.17) | $1.70 | Consolidated Statements of Cash Flows (Years Ended December 31, 2022 and 2021) | (in thousands) | 2022 | 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | $(87,887) | $(86,712) | | Net cash used in investing activities | $(733) | $(3,090) | | Net cash (used in) provided by financing activities | $(9,514) | $226,829 | | (Decrease) Increase in cash, cash equivalents and restricted cash | $(98,134) | $137,027 | - The company's financial statements are prepared in accordance with U.S. GAAP and reflect a reverse recapitalization from the August 2021 Business Combination[501](index=501&type=chunk)[507](index=507&type=chunk) - Momentus is an 'emerging growth company' and has elected to take advantage of the extended transition period for new or revised financial accounting standards[519](index=519&type=chunk) - As of December 31, 2022, the company had federal and state net operating loss (NOL) carryforwards of **$78.7 million** and **$6.5 million**, respectively, with a full valuation allowance recorded against deferred tax assets[718](index=718&type=chunk)[719](index=719&type=chunk) - Subsequent events include a February 2023 agreement to settle securities class actions for **$8.5 million** (partially insured) and a **$10.0 million** Registered Direct Securities Sale triggering a **$10.0 million** co-founder stock repurchase liability[730](index=730&type=chunk)[731](index=731&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=110&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure matters - There are no changes in and disagreements with accountants on accounting and financial disclosure[733](index=733&type=chunk) [Controls and Procedures](index=110&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of December 31, 2022, with no material changes in internal control over financial reporting during the quarter, and no attestation report due to transition period - Management concluded that disclosure controls and procedures were effective as of December 31, 2022[735](index=735&type=chunk) - The annual report does not include a management's assessment or attestation report on internal control over financial reporting due to a transition period for newly public companies[736](index=736&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended December 31, 2022[737](index=737&type=chunk) [Other Information](index=111&type=section&id=Item%209B.%20Other%20Information) The company has no other information to disclose under this item - No other information is reported[738](index=738&type=chunk) [Disclosure Regarding Foreign Jurisdictions That Prevent Inspections](index=111&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20That%20Prevent%20Inspections) This item is not applicable to the company - This item is not applicable[739](index=739&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=110&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding the company's directors, executive officers, and corporate governance, including guidelines, committee charters, and code of conduct, is incorporated by reference from the definitive Proxy Statement for the 2023 Annual Meeting of Stockholders - Information on directors, executive officers, and corporate governance is available on the company's website and will be set forth in the 2023 Proxy Statement[740](index=740&type=chunk) [Executive Compensation](index=110&type=section&id=Item%2011.%20Executive%20Compensation) Information concerning executive compensation is incorporated by reference from the definitive Proxy Statement for the 2023 Annual Meeting of Stockholders - Information on executive compensation will be set forth in the 2023 Proxy Statement[741](index=741&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=111&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership of certain beneficial owners and management, as well as related stockholder matters, is incorporated by reference from the definitive Proxy Statement for the 2023 Annual Meeting of Stockholders - Information on security ownership of certain beneficial owners and management and related stockholder matters will be set forth in the 2023 Proxy Statement[742](index=742&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=111&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions) Information concerning certain relationships, related party transactions, and director independence is incorporated by reference from the definitive Proxy Statement for the 2023 Annual Meeting of Stockholders - Information on certain relationships and related party transactions, and director independence will be set forth in the 2023 Proxy Statement[743](index=743&type=chunk) [Principal Accountant Fees and Services](index=111&type=section&id=Item%2014.%20Principal%20Accounting%20Fees) Information regarding principal accountant fees and services is incorporated by reference from the definitive Proxy Statement for the 2023 Annual Meeting of Stockholders - Information on principal accountant fees and services will be set forth in the 2023 Proxy Statement[744](index=744&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=111&type=section&id=Item%2015.%20Exhibits) This section provides a comprehensive list of exhibits and financial statement schedules filed as part of the Annual Report on Form 10-K, including various agreements, corporate documents, equity plans, and certifications - The section lists various exhibits, including sales agreements, merger agreements, corporate charters and bylaws, warrant agreements, equity incentive plans, employment agreements, the National Security Agreement, and certifications[745](index=745&type=chunk)[746](index=746&type=chunk)[747](index=747&type=chunk) [Form 10-K Summary](index=114&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable to the report - This item is not applicable[748](index=748&type=chunk) SIGNATURES [Signatures](index=115&type=section&id=Signature) The Annual Report on Form 10-K is duly signed on March 7, 2023, by the Chief Executive Officer, John C. Rood, and the Interim Chief Financial Officer, Dennis Mahoney, along with other directors, pursuant to the requirements of the Securities Exchange Act of 1934 - The report is signed by John C. Rood, Chief Executive Officer, and Dennis Mahoney, Interim Chief Financial Officer, on March 7, 2023[751](index=751&type=chunk)[755](index=755&type=chunk) - Additional directors also signed the report on March 7, 2023[755](index=755&type=chunk)

Financial Data and Key Metrics Changes - Momentus reported a cumulative backlog of approximately $43 million as of October 31, 2022, spanning 19 companies in 14 different countries, reflecting ongoing progress and investments [65] - The total backlog declined by $12 million from $55 million reported in Q2, primarily due to the expiration of options [67] - The company ended Q3 with non-restricted cash and cash equivalents of $82 million, expected to last through the end of 2023 [68] - Revenue recognized during Q3 was $129,000, with gross profits of $115,000, primarily related to the deployment of customer satellites [70] - Operating losses for Q3 were approximately $22 million, with adjusted EBITDA at a negative $16 million, showing a $2 million improvement sequentially from Q2 [71] Business Line Data and Key Metrics Changes - The Vigoride 3 mission has deployed a total of seven out of nine customer satellites, with five additional satellites deployed during Q3 [18][19] - The upcoming Vigoride 5 mission is expected to demonstrate improved capabilities and reliability compared to Vigoride 3, with significant upgrades in design and technology [23][26] Market Data and Key Metrics Changes - The FCC's new rule requiring satellite operators to deorbit satellites within five years post-mission is anticipated to create a multibillion-dollar addressable market for satellite deorbiting services [80] - The space economy is projected to grow from approximately $469 billion today to over $1 trillion by 2040, indicating a favorable market environment for space infrastructure services [54] Company Strategy and Development Direction - Momentus aims to enhance its capabilities in satellite servicing, including rendezvous and proximity operations, and plans to introduce a robotic arm for satellite servicing and deorbiting [78] - The company is focused on reducing operating costs to extend its cash runway and is actively pursuing government contracts to support its R&D efforts [49][51] - Momentus is committed to improving its technology and operational processes to boost investor confidence and position itself as a leading player in the space infrastructure market [15][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on regulatory changes and market opportunities, particularly in satellite deorbiting and servicing [81] - The leadership team highlighted the importance of learning from past missions to enhance the reliability and performance of future spacecraft [100] - The company remains optimistic about its growth prospects, driven by increasing demand for space services and favorable regulatory conditions [54][61] Other Important Information - Momentus has signed contracts with NASA and other entities, marking significant milestones in its efforts to expand into government services [41] - The company is preparing for its next Vigoride launch targeted for December 2022, with ongoing improvements based on lessons learned from previous missions [26][62] Q&A Session Summary Question: Can you discuss the new FCC rule and its implications? - Management noted that the new FCC rule creates significant demand for satellite deorbiting services, which Momentus has been preparing for by investing in relevant capabilities [77][80] Question: What are the implications of changes in SpaceX transporter pricing? - Management indicated that while new pricing structures will affect future costs, existing agreements will not be impacted until 2024, and they plan to pass on costs to customers where possible [82][84] Question: What are customer views on the small rocket segment? - Management observed that customers are looking for more flight heritage from small launch providers, but competition is driving down launch costs, making rideshare options more attractive [90] Question: What lessons were learned from the early Vigoride mission? - Management highlighted the importance of designing for resilience and redundancy, which allowed for the deployment of satellites despite challenges faced during the Vigoride 3 mission [96][100] Question: What are the primary objectives for the Vigoride 5 mission? - The primary objectives include testing the vehicle's performance, learning from any encountered issues, and demonstrating new capabilities, particularly with the hosted payload for Caltech [104][106]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 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 o ...

Momentus, Inc. (NASDAQ:MNTS) Q2 2022 Earnings Conference Call August 11, 2022 12:00 PM ET Company Participants Darryl Genovesi - VP, IR John Rood - Chairman, President & CEO Jikun Kim - CFO Conference Call Participants Karl Oehlschlaeger - Vertical Research James Ratcliffe - Evercore ISI Edison Yu - Deutsche Bank Colin Canfield - Barclays Operator Good day and welcome to the Momentus, Inc. Second Quarter 2012 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After ...

| --- | --- | --- | --- | --- | --- | |-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|-------|-------|-----------------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Q2 2022 Business and Financial Highlights | | | | | | | Copyright 2022. Momentus Inc. Not Export Controlled. Any use, reproduction, or distribution without the express consent of Momentus is strictly pro ...

Part I - Financial Information [Unaudited Financial Statements](index=5&type=section&id=Item%201.%20Unaudited%20Financial%20Statements) Unaudited financial statements for the period ending June 30, 2022, reflect the inaugural mission and business combination [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $133.8 million due to cash reduction, with stockholders' equity falling to $82.2 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2022 (unaudited) | December 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $109,052 | $160,036 | | Total current assets | $117,574 | $169,664 | | Total assets | $133,774 | $185,825 | | **Liabilities & Stockholders' Equity** | | | | Total current liabilities | $30,704 | $38,867 | | Total liabilities | $51,569 | $53,937 | | Total stockholders' equity | $82,205 | $131,888 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company recognized its first revenue of $50 thousand and reported a net loss of $22.9 million for Q2 2022 Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2022 | Q2 2021 | Six Months 2022 | Six Months 2021 | | :--- | :--- | :--- | :--- | :--- | | Service revenue | $50 | $— | $50 | $130 | | Gross margin | $38 | $— | $38 | $82 | | Loss from operations | $(23,719) | $(30,534) | $(48,543) | $(54,363) | | Net (loss) income | $(22,872) | $64,327 | $(49,706) | $128,998 | | Net (loss) income per share, basic | $(0.28) | $1.25 | $(0.62) | $2.36 | [Condensed Consolidated Statements of Stockholders' Equity (Deficit)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity%20%28Deficit%29) Stockholders' equity declined to $82.2 million, primarily driven by a net loss of $49.7 million for the period Changes in Stockholders' Equity (in thousands) | Description | Six Months Ended June 30, 2022 | | :--- | :--- | | Balance, December 31, 2021 | $131,888 | | Net loss | $(49,706) | | Stock-based compensation | $5,317 | | Other (stock issuance/repurchase) | $466 | | **Balance, June 30, 2022** | **$82,205** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operations was $45.9 million, contributing to a total cash decrease of $50.2 million Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | $(45,943) | $(44,077) | | Net cash used in investing activities | $(945) | $(2,187) | | Net cash (used in) provided by financing activities | $(3,277) | $55,713 | | **(Decrease) Increase in cash** | **$(50,165)** | **$9,449** | [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the Vigoride 3 mission anomalies, legal proceedings, and the National Security Agreement - The inaugural Vigoride 3 mission launched on May 25, 2022, but **experienced anomalies with its deployable solar arrays**, resulting in low power and communication issues; as of July 29, 2022, **7 of 10 customer satellites had been deployed**[24](index=24&type=chunk)[25](index=25&type=chunk)[30](index=30&type=chunk) - The company recognized its **first service revenue of $50,000** in Q2 2022 from a completed performance obligation on the May mission; due to mission anomalies, related deposits of **$133,000 were recorded as deferred revenue**[73](index=73&type=chunk) - The company is subject to several legal proceedings, including a consolidated securities class action lawsuit, a shareholder derivative action, and litigation from a SAFE note investor; it also **settled with the SEC for a $7.0 million penalty**[187](index=187&type=chunk)[191](index=191&type=chunk)[201](index=201&type=chunk) - A National Security Agreement (NSA) with CFIUS led to the **divestment of the co-founders' equity for up to $50 million**; **$40 million was paid** following the Business Combination, with a potential **$10 million contingent payment** remaining, for which a **$5.8 million liability is recorded**[150](index=150&type=chunk)[151](index=151&type=chunk)[153](index=153&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the inaugural mission's results, financial performance, and liquidity challenges [Overview](index=37&type=section&id=Overview) The inaugural Vigoride 3 mission experienced anomalies but deployed several satellites; backlog stands at $55 million - Launched its first demonstration flight of the Vigoride spacecraft (Vigoride 3) on May 25, 2022[212](index=212&type=chunk) - The Vigoride spacecraft **experienced anomalies with its deployable solar arrays**, causing low power and communication problems, which has **substantially declined confidence** in performing all planned operations for this mission[213](index=213&type=chunk)[214](index=214&type=chunk)[219](index=219&type=chunk) - As of July 29, 2022, Momentus has **deployed a total of seven customer satellites**: six from Vigoride 3 and one from a third-party deployer system[218](index=218&type=chunk) - The company has signed contracts for approximately **$55 million in backlog** as of July 31, 2022, spanning 22 companies in 16 countries[211](index=211&type=chunk) [Results of Operations](index=48&type=section&id=Results%20of%20Operations) The company generated its first revenue in Q2 2022 but recorded a net loss of $22.9 million amid rising SG&A costs Comparison of Q2 2022 vs. Q2 2021 (in thousands) | Metric | Q2 2022 | Q2 2021 | $ Change | | :--- | :--- | :--- | :--- | | Service revenue | $50 | $— | $50 | | Research and development expenses | $10,896 | $20,794 | $(9,898) | | Selling, general and administrative expenses | $12,861 | $9,740 | $3,121 | | Operating loss | $(23,719) | $(30,534) | $6,815 | | Net (loss) income | $(22,872) | $64,327 | $(87,199) | - The decrease in Q2 2022 R&D expenses was primarily due to a **one-time $8.7 million impairment** of prepaid launch deposits in Q2 2021[303](index=303&type=chunk) - The increase in Q2 2022 SG&A expenses was driven by higher payroll ($0.9M), insurance ($0.7M), and other corporate costs ($0.8M) associated with being a public company[304](index=304&type=chunk) [Liquidity and Capital Resources](index=51&type=section&id=Liquidity%20and%20Capital%20Resources) The company holds $109.1 million in cash, which management believes is sufficient for the next 12 months - The company's principal source of liquidity is its cash and cash equivalents, which amounted to **$109.1 million** as of June 30, 2022[325](index=325&type=chunk) Historical Cash Flows (in thousands) | Activity | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | Net cash used in Operating activities | $(45,943) | $(44,077) | | Net cash used in Investing activities | $(945) | $(2,187) | | Net cash (used in) provided by Financing activities | $(3,277) | $55,713 | - Management expects current cash and projected gross profit will **fund operations for more than 12 months**, but notes that changing circumstances could require additional equity or debt financing[332](index=332&type=chunk)[333](index=333&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=57&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risks from interest rates and foreign currency are considered minimal - **Interest rate risk is low**, as cash is held in short-term, highly liquid investments and the company's Term Loan has a fixed interest rate[370](index=370&type=chunk)[371](index=371&type=chunk) - **Foreign currency risk is not material** because a significant portion of cash receipts and expenses are generated in U.S. dollars[372](index=372&type=chunk) [Controls and Procedures](index=57&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes identified - Management concluded that the company's **disclosure controls and procedures were effective** as of June 30, 2022[375](index=375&type=chunk) - There were **no material changes** to the company's internal control over financial reporting during the fiscal quarter ended June 30, 2022[376](index=376&type=chunk) Part II - Other Information [Legal Proceedings](index=57&type=section&id=Item%201.%20Legal%20Proceedings) The company faces multiple legal proceedings, including a class action and a lawsuit from a SAFE note investor - The company is defending against a **consolidated putative class action lawsuit** alleging violations of securities laws related to disclosures for the Business Combination[186](index=186&type=chunk)[187](index=187&type=chunk) - A **shareholder derivative action** was filed in June 2022, and a shareholder Section 220 litigation was filed to inspect books and records, both related to the de-SPAC merger[200](index=200&type=chunk)[201](index=201&type=chunk) - In July 2022, a SAFE note investor filed a lawsuit claiming fraudulent inducement and breach of contract, seeking **damages exceeding $7.6 million**[202](index=202&type=chunk) [Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors) Key risks include mission failures, dependency on government licenses, ongoing losses, and an eroding backlog - The inaugural Vigoride mission **experienced anomalies** with its communication and power systems, preventing it from completing all objectives and fully validating its technology, which could harm the company's reputation[379](index=379&type=chunk)[384](index=384&type=chunk) - The business is **dependent on receiving required governmental licenses** and approvals (e.g., from FAA, FCC), and there is no assurance these will be granted in a timely manner or at all[385](index=385&type=chunk)[387](index=387&type=chunk) - The company has a **history of significant losses**, including an operating loss of $99.8 million in 2021, and expects to incur future losses; the **backlog has eroded from $86 million to $55 million** and may not convert to revenue[388](index=388&type=chunk)[393](index=393&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=61&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds were reported during the period - None reported for the period[400](index=400&type=chunk) [Defaults Upon Senior Securities](index=61&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported during the period - None reported[401](index=401&type=chunk) [Mine Safety Disclosures](index=61&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company's operations - None reported[402](index=402&type=chunk) [Other Information](index=61&type=section&id=Item%205.%20Other%20Information) No other information was required to be disclosed for the period - None reported[403](index=403&type=chunk) [Exhibits](index=61&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including merger agreements and certifications - Key exhibits filed include the Merger Agreement and certifications required under Sections 302 and 906 of the Sarbanes-Oxley Act[404](index=404&type=chunk)

| --- | --- | --- | --- | |--------------------------------------------------------------------------------------------------------------------------------------------------------------|-------|-------|----------| | | | | | | | | | | | | | | | | | | | | | Investor Presentation | | | | | Copyright 2022. Momentus Inc. Not Export Controlled. Any use, reproduction, or distribution without the express consent of Momentus is strictly prohibited. | | | May 2022 | Disclaimer and Cautionary Note Regarding Forward-Lo ...

Momentus, Inc. (NASDAQ:MNTS) Q1 2022 Earnings Conference Call May 10, 2022 5:00 PM ET Company Participants Darryl Genovesi - VP, IR John Rood - Chairman, President & CEO Jikun Kim - CFO Conference Call Participants Michael Maugeri - Wolfe Research Robert Stallard - Vertical Research Partners Bradley Barton - Barclays Bank Edison Yu - Deutsche Bank Operator Good afternoon, ladies and gentlemen, and welcome to the Momentus Inc. First Quarter 2022 Earnings Conference Call. [Operator Instructions]. It is now my ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (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, 2022 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 95134 3901 N. First Street San Jose, ...