Financial Data and Key Metrics Changes - The company ended Q1 with nonrestricted cash and cash equivalents of $136 million and approximately $24 million in outstanding gross debt [48] - The company generated approximately $25 million in losses from operations during the quarter, with an adjusted EBITDA of negative $17 million, which was approximately $1 million lower sequentially from Q4 2021 [49] - The company did not recognize any revenue during the quarter, with expectations to begin recognizing revenue once customer flights commence [48][49] Business Line Data and Key Metrics Changes - The company has cumulatively signed contracts for approximately $69 million in backlog or potential revenues as of April 30, 2022, spanning across 25 companies in 15 different countries [46] - The primary goals of the inaugural mission are to test Vigoride on orbit and learn from any issues encountered, with plans to deploy 9 satellites from the vehicle during the mission [21][23] Market Data and Key Metrics Changes - The company continues to see solid customer interest in its capabilities, aligning with broader market trends in the emerging space economy [61] - Despite macroeconomic challenges, the company has not seen a significant impact on operational capabilities or customer interest [63] Company Strategy and Development Direction - The company plans to broaden its service offerings with Vigoride beyond transportation missions, including in-orbit maintenance and satellite services [33][34] - The company is focused on enhancing the performance of Vigoride vehicles and reducing operating costs, with expectations for customer order activity to increase after establishing flight heritage [69] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming regulatory challenges and securing necessary licenses for upcoming missions, with no anticipated issues for future missions [58][59] - The company is navigating supply chain challenges effectively, maintaining production schedules despite external pressures [64] Other Important Information - The company has made significant progress in implementing its National Security Agreement with the U.S. government, securing necessary licenses and approvals for its inaugural launch [20][16] - The company is building out its executive leadership team to support growth, adding high-caliber individuals with relevant experience [38][39] Q&A Session Summary Question: How will success be measured on the first mission? - The mission aims to test the Vigoride vehicle and its subsystems in space, with objectives including communications, propulsion system performance, and customer payload deployment [52][53] Question: Is the relationship with SpaceX a competitive advantage? - The company views its partnership with SpaceX as a potential competitive advantage and is optimistic about accommodating satellite operators affected by competitors' issues [55][78] Question: Are there ongoing licensing risks for future missions? - Management does not anticipate any licensing issues for future missions, having recently secured all necessary approvals for the Vigoride 3 launch [58][59] Question: How is the macroeconomic environment affecting market demand? - The company continues to see strong customer interest and believes its service offerings align well with market trends, despite broader economic challenges [61][63] Question: What is the forward financial outlook? - The company has sufficient cash runway through early 2023 and plans to assess market conditions for future capital raises [69][70]

Financial Performance - Service revenue for the three months ended March 31, 2022, was $0, compared to $130,000 for the same period in 2021, indicating a significant drop in revenue[17] - The net loss for the three months ended March 31, 2022, was $26,834,000, compared to a net income of $64,671,000 in Q1 2021, marking a substantial change in performance[17] - The company reported a gross margin of $0 for the three months ended March 31, 2022, compared to $82,000 in Q1 2021, highlighting a complete loss of revenue generation[17] - The company experienced a total other income (expense) of $(2,010,000) for Q1 2022, compared to $88,500,000 in Q1 2021, indicating a significant decline in financial performance[17] - Momentus reported a net loss of $26.83 million for the three months ended March 31, 2022, compared to a net income of $64.67 million for the same period in 2021[176] Assets and Liabilities - Total current assets decreased from $169,664,000 as of December 31, 2021, to $143,686,000 as of March 31, 2022, representing a decline of approximately 15.3%[14] - Cash and cash equivalents decreased from $160,036,000 as of December 31, 2021, to $135,602,000 as of March 31, 2022, a decline of approximately 15.3%[14] - Total liabilities rose from $53,937,000 as of December 31, 2021, to $61,169,000 as of March 31, 2022, an increase of approximately 13.5%[14] - The accumulated deficit increased from $208,683,000 as of December 31, 2021, to $235,517,000 as of March 31, 2022, indicating a worsening financial position[14] - Momentus' total stockholders' equity as of March 31, 2022, was $101.255 million, compared to $131.888 million as of December 31, 2021[22] Operating Expenses - Total operating expenses increased from $23,911,000 in Q1 2021 to $24,824,000 in Q1 2022, reflecting a rise of about 3.8%[17] - Cash used in operating activities for the three months ended March 31, 2022, was $23.062 million, an increase from $21.199 million in the same period of 2021[22] - The company incurred stock-based compensation expenses of $2.212 million for the three months ended March 31, 2022, down from $5.768 million in the same period of 2021[22] - The stock-based compensation expense for the three months ended March 31, 2022, was $2.21 million, a decrease from $5.77 million in the same period in 2021[168] Shareholder Information - Weighted average shares outstanding, basic, increased from 62,733,080 in Q1 2021 to 79,958,383 in Q1 2022, reflecting a dilution of shares[17] - The weighted average shares outstanding for diluted net loss per share was 79,958,383 for the three months ended March 31, 2022, compared to 87,684,818 for the same period in 2021[176] - As of March 31, 2022, the Company had 79,772,262 shares of Common Stock outstanding, with Momentus Space, LLC unit holders holding 63% of the shares[141] Future Plans and Developments - The company plans to launch its Vigoride vehicle to Low Earth Orbit as early as May 2022, pending necessary licenses and government approvals[23] - Momentus anticipates its first launch with customers to occur as early as May 2022, pending necessary licenses and government approvals[207] - Momentus has signed contracts for approximately $69 million in backlog as of April 30, 2022, spanning across 25 companies[206] - The company plans to offer transportation and infrastructure services for satellite operators, including "last mile" satellite transportation and on-orbit services[204] Regulatory and Compliance - Momentus received all required government approvals for its inaugural flight, including a favorable determination from the FAA and a license from the FCC[24] - The company recorded a liability of $5 million related to a settlement with the SEC, in addition to a fine of $2 million paid[188] - The company may incur liquidated damages up to $1 million per breach of the National Security Agreement, which imposes various compliance requirements[196] Impairments and Charges - The Company recorded an impairment charge of $8.7 million for prepaid launch costs during the three months ended June 30, 2021, due to a launch service provider default[50] - The Company recorded an impairment charge of $8.7 million for prepaid launch costs due to the termination of launch service agreements[114] Debt and Financing - The Company entered into a Term Loan agreement on February 22, 2021, providing up to $40.0 million in borrowing capacity, with $25.0 million borrowed at an annual interest rate of 12%[10] - As of March 31, 2022, the Company's Loan payable consisted of gross Term Loan payable of $24.1 million and accrued interest of $0.01 million, offset by unamortized debt discount and issuance costs of $3.4 million[136] - The repayment terms of the Term Loan were extended to two years, resulting in a recalculated effective interest rate of 28.2%[135] Legal and Litigation - Legal expenses related to ongoing litigation amounted to approximately $0.8 million during the three months ended March 31, 2022[197] - The Company recorded one-time transaction costs of $27.8 million related to equity issuance and $4.8 million for liability classified warrants[106] Accounting and Reporting - The Company is classified as an emerging growth company and has elected to take advantage of the extended transition period for new accounting standards[44] - The Company’s financial statements reflect a reverse recapitalization, treating Momentus Inc. as the acquirer[34] - The Company adopted ASU 2020-06 on January 1, 2022, which simplifies accounting for convertible instruments, with no impact on the financial statements at adoption[101] Research and Development - Research and development costs are expensed as incurred, focusing on developing existing and future technologies for the company's vehicles[81] - Momentus is developing water plasma propulsion technology to minimize environmental impact while providing satellite services[204] Lease Obligations - The Company has a total lease obligation of approximately $11 million over the term of its new lease in San Jose, California, expiring in February 2028[125] - The company leases real estate facilities under non-cancelable operating leases, with expiration dates through February 2028[84]

Business Operations and Risks - Momentus Inc. has not yet delivered customer satellites into orbit, and setbacks during initial missions could adversely affect the business[16]. - A key component of Momentus' business model is the delivery of satellites from low earth orbit to other orbits, which is still in the development stage and unvalidated[16]. - Momentus faces risks related to obtaining necessary governmental licenses and approvals for its operations, which are essential for business continuity[18]. - The market for in-space infrastructure services is not precisely established and may grow more slowly than anticipated, impacting revenue potential[18]. - The company relies on third-party launch vehicles for launching its vehicles and customer payloads, and any delays could materially impact financial results[18]. - Momentus is subject to various requirements under the National Security Agreement, incurring significant compliance costs and potential penalties for non-compliance[18]. - The company may not be able to convert its backlog of orders into revenue, which poses a risk to future financial performance[18]. - Momentus operates in a highly competitive industry, which may force price reductions and impact gross margins[18]. Financial Performance - The company has incurred significant losses since inception and expects to continue incurring losses in the future, raising concerns about achieving profitability[18]. - Service revenue for the year ended December 31, 2021, was $0.330 million, a slight decrease from $0.365 million in 2020, reflecting a decline of 9.6%[445]. - Gross margin improved to $0.465 million in 2021 from a loss of $0.003 million in 2020, indicating a positive shift in profitability[445]. - Net income for 2021 was $120.654 million, a significant turnaround from a net loss of $307.027 million in 2020[445]. - The company reported a basic net income per share of $1.85 for 2021, compared to a loss of $4.90 per share in 2020[445]. - Total liabilities decreased to $53.937 million in 2021 from $325.792 million in 2020, a reduction of 83.5%[443]. - Stockholders' equity improved to $131.888 million in 2021, recovering from a deficit of $289.472 million in 2020[443]. - The company experienced a significant decrease in the fair value of SAFE notes, with a gain of $209.291 million in 2021 compared to a loss of $267.290 million in 2020[445]. - Cash flows from operating activities resulted in a net cash used of $86.712 million in 2021, compared to $32.534 million in 2020[450]. - The company reported an increase in cash, cash equivalents, and restricted cash to $160.547 million at the end of 2021, up from $23.520 million at the beginning of the year[450]. Investments and Expenses - Research and development expenses surged to $51.321 million in 2021, up from $22.718 million in 2020, marking an increase of 126%[445]. - The company incurred stock-based compensation expenses of $18.452 million in 2021, compared to $2.771 million in 2020[450]. - The company recorded an impairment of $8.7 million for prepaid launch costs due to a launch service provider terminating agreements, marking the third rescheduling of the payload[477]. - The company recorded total lease expenses of $2.4 million for the year ended December 31, 2021, compared to $0.3 million in 2020, indicating increased operational costs[555]. - The Company incurred interest expense amortization of $11.7 million for the year ended December 31, 2021, related to the Term Loan[566]. Capital Structure and Financing - The company had cash and cash equivalents of $160.0 million as of December 31, 2021, primarily invested in highly liquid investments[429]. - Proceeds from the issuance of SAFE notes amounted to $30.853 million, while proceeds from the issuance of common shares in a PIPE transaction totaled $110 million[450]. - The company completed a business combination that resulted in gross proceeds of $238.4 million, including $110.0 million from a PIPE investment and $128.4 million from common stock issuance[532]. - The Company entered into a Term Loan agreement providing up to $40.0 million in borrowing capacity, of which $25.0 million was borrowed at inception, with an annual interest rate of 12%[562]. - The total lease liability as of December 31, 2021, was $8.5 million, significantly up from $0.3 million in 2020, reflecting the adoption of new leases[558]. Future Outlook and Plans - The company plans to launch its Vigoride vehicle to Low Earth Orbit as early as June 2022, pending necessary licenses and approvals[452]. - The first anticipated customer launch is expected to occur as early as June 2022, pending necessary licenses and approvals[482]. - The company has future unconditional purchase obligations totaling $21.5 million, with $10.2 million due in 2022 and $11.3 million in 2023[606]. Legal and Compliance - The company entered into a settlement with the SEC, paying a fine of $2.0 million and recording a liability of $5.0 million due in July 2022[613]. - Legal expenses incurred during the year ended December 31, 2021, amounted to approximately $7.5 million, with expectations of continued legal expenses in the future[617].

Momentus Inc. (NASDAQ:MNTS) Q4 2021 Earnings Conference Call March 8, 2022 5:00 PM ET Company Participants Darryl Genovesi - IR John Rood - CEO and Chairman Jikun Kim - CFO Conference Call Participants Edison Yu - Deutsche Bank James Ratcliffe - Evercore ISI Colin Ken Fu - Barclays Mike Maugeri - Wolfe Research Operator Ladies and gentlemen, thank you for standing by. And welcome to Momentus Fourth Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker's pres ...

Financial Data and Key Metrics Changes - Momentus completed a reverse merger with Stable Road Acquisition Corporation, resulting in $247 million in gross proceeds, with $175 million net proceeds available for business operations [51][52] - The company reported revenue of $200,000 for Q3 2021, primarily from a customer contract termination [54] - The net loss for the quarter was $5.6 million, with adjusted EBITDA at negative $15.1 million, consistent with the previous quarter but worse than the same quarter last year [56] Business Line Data and Key Metrics Changes - The company has a backlog of approximately $65 million in potential revenue as of September 30, 2021, which includes both firm and optionable contracts [38] - The cost of goods sold during Q3 was a credit of $184,000 due to a reversal of a forward loss reserve [55] Market Data and Key Metrics Changes - The market for small satellites is expected to double over the next three years, indicating significant growth potential for in-space transportation services [42] - The company anticipates that the total addressable market could expand by 5x to 10x by the end of the decade as capabilities grow beyond Low Earth Orbit [43] Company Strategy and Development Direction - Momentus aims to become an industry leader in providing transportation and in-space infrastructure services, focusing on the Vigoride vehicle for initial market entry [22][34] - The strategy includes a phased approach to market entry, with plans to develop a reusable version of Vigoride and expand service offerings over time [24][41] - The company is committed to improving its technology and maintaining a strong alignment with customer needs [27][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to launch Vigoride in June 2022, citing strong partnerships and progress in implementing the National Security Agreement [63][65] - The company acknowledges the complexities of the space industry but remains optimistic about its growth potential and the demand for infrastructure services [61][70] Other Important Information - Momentus has made significant progress in implementing the National Security Agreement, with the majority of compliance tasks completed [15][69] - The company has settled all outstanding claims with the SEC, allowing it to proceed with its business combination and public listing [16] Q&A Session Summary Question: Why did the CEO choose Momentus? - The CEO was attracted to the potential of the new space economy and the company's vision for in-space transportation and infrastructure services [60][62] Question: What is the confidence level for the June launch? - The CEO expressed confidence in the June launch, citing strong partnerships and progress in vehicle development and regulatory compliance [63][65] Question: Can you provide details on the sales pipeline? - The CEO noted steady customer interest and a solid backlog, with expectations to convert interest into firm orders post-launch [70] Question: What are the key milestones for regulatory and operational progress? - Key milestones include completing IT system upgrades, obtaining necessary government approvals, and conducting various vehicle tests leading up to the June launch [77][78] Question: How does Momentus' MET technology compare to competitors? - The CEO highlighted the advantages of MET technology over traditional propulsion systems, emphasizing its efficiency and safety [75][76] Question: What is the cash trajectory of the business? - The CFO indicated that the company has sufficient cash to operate through early 2023, despite ongoing expenses related to regulatory compliance and operational activities [81]

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, 2021 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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR | Delaware | | 84-1905538 | | --- | --- | --- | | (State or other jurisdiction of | | (I.R.S. Employer | | incorporation or organization) | | Identification No.) | | 1345 Abbot Kinney Blvd. | | | | Venice, California | | 90291 | | (Address of principal executive offices) | | (Zip ...

Financial Performance - For the three months ended March 31, 2021, the company reported a net income of $5,766,486, which includes operating costs of $2,972,323 and a change in the fair value of warrant liabilities of $8,719,763 [127]. - The company generated non-operating income from interest on marketable securities held in the Trust Account, amounting to $19,046 for the three months ended March 31, 2021 [126]. Cash and Securities - As of March 31, 2021, the company had cash and marketable securities in the Trust Account totaling $173,022,306, with an additional $208,550 in cash outside the Trust Account [134][136]. - The net proceeds from the Initial Public Offering have been invested in U.S. government treasury bills, notes, or bonds with a maturity of 180 days or less [148]. - The company believes there will be no associated material exposure to interest rate risk due to the short-term nature of these investments [148]. Initial Public Offering - The company completed its Initial Public Offering on November 13, 2019, raising gross proceeds of $172,500,000 from the sale of 17,250,000 Units [130]. - The company incurred $10,924,857 in transaction costs related to its Initial Public Offering, which included $3,450,000 in underwriting fees [131]. Business Combination and Acquisition Plans - The company expects to continue incurring significant costs in pursuit of its acquisition plans, with no assurance of successful completion of its initial Business Combination [124]. - The company has until August 13, 2021, to consummate a Business Combination, after which a mandatory liquidation may occur if not completed [140]. - The company may need to obtain additional financing to complete its initial Business Combination or to meet obligations if a significant number of Public Shares are redeemed [139]. Debt and Obligations - The company has no long-term debt or capital lease obligations, with only a monthly fee of $10,000 owed to an affiliate of the Sponsor for administrative support [142]. Accounting Policies and Risks - The company has identified critical accounting policies that may affect reported amounts of assets and liabilities, with actual results potentially differing from estimates [144]. - As of March 31, 2021, the company was not subject to any market or interest rate risk [148].

IPO and Merger Details - The company closed its initial public offering in November 2019, selling 17,250,000 units at $10.00 per unit, yielding gross proceeds of $172,500,000[16]. - The proposed merger with Momentus involves an aggregate merger consideration of $1,131,000,000, adjusted for Momentus' indebtedness and cash equivalents at closing[17]. - The merger consideration will be paid in shares of newly issued Class A common stock of the company, valued at $10 per share[17]. - The company has entered into Subscription Agreements for the purchase of 17,500,000 shares of Class A common stock at $10.00 per share, with proceeds to be used for the merger and working capital[22]. - The repurchase agreement with Prime Movers Lab allows for the repurchase of shares at $10.00 per share, contingent on net proceeds exceeding $265 million[23]. Management and Experience - The management team has over 60 years of combined experience and manages over $1.0 billion in investment capital[27]. - The management team has extensive experience in capital markets, enhancing the company's ability to source prospective business combinations[37]. - The management team will apply a rigorous approach to enhance shareholder value post-combination, including evaluating management experience and exploring growth opportunities[45]. Business Combination Strategy - The company aims to pursue business combinations with companies having an enterprise value exceeding $300 million, focusing on those with potential for significant revenue and earnings growth[33]. - The acquisition criteria include scalability, strong intellectual property, and the potential for attractive returns on invested capital[35]. - The company plans to focus its search for an initial business combination within a single industry, limiting diversification[63]. - The company must complete one or more business combinations with an aggregate fair market value of at least 80% of the trust account assets[57]. Financial Considerations and Risks - The trust account has $166,207,749 available for the initial business combination after paying $6,900,000 in deferred underwriting fees[53]. - The company may need to seek additional financing to complete the initial business combination, potentially through debt or equity securities[56]. - The company has not yet secured third-party financing, and there is no assurance that it will be available[53]. - The company may incur substantial debt to complete its initial business combination, which could adversely affect its leverage and financial condition[171]. - The trust account proceeds may be subject to bankruptcy claims, which could affect the ability to return $10.00 per share to public stockholders[106]. Stockholder Approval and Redemption Rights - Stockholder approval is required for the initial business combination if the transaction involves issuing more than 20% of outstanding common stock[72]. - A majority of 6,196,251 shares, or approximately 35.9% of the 17,250,000 public shares, is needed for the initial business combination approval[81]. - The company will only redeem public shares if net tangible assets are at least $5,000,001 after redemption[83]. - The company has a restriction on stockholders seeking redemption rights for more than 15% of shares sold in the initial public offering, aimed at preventing stockholders from blocking the initial business combination[84]. - Public stockholders must tender their shares up to two business days prior to the vote on the initial business combination to exercise redemption rights[85]. Compliance and Regulatory Issues - The company is classified as an "emerging growth company," allowing it to take advantage of certain exemptions from reporting requirements[50]. - The company must maintain net tangible assets of at least $5,000,001 to avoid being subject to SEC's "penny stock" rules, which could limit redemption capabilities[193]. - Compliance with the Sarbanes-Oxley Act may increase the time and costs associated with completing the initial business combination[187]. - Changes in laws or regulations could adversely affect the company's ability to negotiate and complete its initial business combination[120]. Potential Conflicts and Challenges - Conflicts of interest may arise as officers and directors allocate their time between the company and other business endeavors, potentially hindering the completion of business combinations[164]. - The company may face challenges in completing simultaneous business combinations with multiple targets, which could increase costs and risks[175]. - The ability of public stockholders to redeem shares for cash may deter potential business combination targets, complicating the acquisition process[119]. - The company may face challenges in obtaining additional financing for its initial business combination, which could lead to restructuring or abandonment of the transaction[185]. Shareholder Influence and Control - Initial stockholders have agreed to vote in favor of the initial business combination regardless of public stockholder votes, potentially limiting public influence[119]. - Initial stockholders own approximately 21.8% of the issued and outstanding shares, potentially exerting substantial influence over stockholder votes[127]. - The initial stockholders will receive additional shares of Class A common stock if the company issues shares to consummate an initial business combination, potentially complicating the transaction[130]. Trust Account and Redemption Procedures - The trust account may be subject to third-party claims, potentially reducing the per-share redemption amount below $10.00[199]. - If the initial business combination is not completed, public stockholders who elected to redeem their shares will not be entitled to redeem for their pro rata share of the trust account[90]. - The company intends to redeem public shares promptly after May 13, 2021, if the initial business combination is not completed, with a per-share price equal to the aggregate amount in the trust account, potentially reducing stockholder rights[104].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ 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 Stable Road Acquisition Corp. | (Exact name of registrant as specified in its charter) | | | --- | --- | | Delaware | ...