Momentus (US:MNTS)2024-10-15 20:13Financial 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]