Financial Performance - Total revenue for the three months ended September 30, 2023, was $12,731,000, representing a 24% increase from $10,271,000 in the same period of 2022[14] - Operating loss for the three months ended September 30, 2023, was $23,219,000, compared to an operating loss of $11,797,000 for the same period in 2022[14] - Net income for the three months ended September 30, 2023, was $15,096,000, a significant improvement from a net loss of $11,932,000 in the same period of 2022[14] - Net income for the nine months ended September 30, 2023, was $10.426 million, a significant improvement from a net loss of $18.828 million in the same period of 2022[29] - The net income attributable to the company for the three months ended September 30, 2023, is $33,651 thousand, compared to a net loss of $(5,751) thousand for the same period in the previous year[23] Assets and Liabilities - Total assets increased to $102,973,000 as of September 30, 2023, up from $67,004,000 as of December 31, 2022[12] - Total liabilities rose to $162,948,000 as of September 30, 2023, compared to $124,623,000 as of December 31, 2022[12] - Cash and cash equivalents increased to $40,652,000 as of September 30, 2023, from $25,764,000 as of December 31, 2022[12] - As of September 30, 2023, the total shareholders' equity is $(346,214) thousand, reflecting a decrease from $(678,272) thousand as of June 30, 2023[21] Shareholder Information - The weighted average shares outstanding for basic shares was 17,411,217 for the three months ended September 30, 2023[14] - The balance of Class A common stock increased to 22,237,988 shares as of September 30, 2023, from 17,301,489 shares as of June 30, 2023[21] - The company issued 4,705,883 shares of Class A common stock related to a private placement during the nine months ended September 30, 2023[23] - As of September 30, 2023, the company had 22,237,988 shares of Class A Common Stock issued and 20,987,988 shares outstanding[149] Cash Flow and Financing Activities - Cash flows from operating activities showed a net cash used of $22.933 million, an improvement compared to $28.358 million in the prior year[29] - The company reported a net cash provided by financing activities of $65.489 million, up from $20.171 million in the previous year[29] - The company received approximately $34.1 million in gross proceeds from the Business Combination with IPAX on February 13, 2023[53] - The company entered into a securities purchase agreement resulting in the issuance of 4,705,883 shares of Class A Common Stock for approximately $20.0 million in gross proceeds[55] Revenue Recognition - The Company recognizes revenue based on long-term contracts for engineering services, with revenue recognized upon satisfaction of performance obligations[76] - Revenue is recognized over time for most business segments, using the cost-to-cost method based on contract costs incurred to date compared to total estimated contract costs at completion[79] - Unbilled receivables include amounts from long-term contracts where revenue recognized exceeds the amount billed to the customer, reflecting the timing differences in billing and revenue recognition[87] - Fixed price contracts accounted for 81% of total revenue in Q3 2023, while time and materials contracts made up 19%[115] Business Operations and Strategy - The company is focused on creating and operating space systems and infrastructure for lunar exploration, aiming to support sustainable human presence on the Moon[33] - Intuitive Machines, Inc. completed a business combination on February 13, 2023, which was accounted for as a reverse recapitalization[36] - The company anticipates the completion of the first lunar payload services contract by February 29, 2024, with an estimated contract loss provision of $0.4 million as of September 30, 2023[120] Taxation - The company recognized a combined U.S. federal and state income tax expense of $605 thousand for the three months ended September 30, 2023, compared to a benefit of $380 thousand for the same period in 2022[140] - The effective combined U.S. federal and state income tax rates were 3.9% and 2.7% for the three and nine months ended September 30, 2023, respectively, compared to 3.1% and 0.1% for the same periods in 2022[140] Share-Based Compensation - Share-based compensation expense for the nine months ended September 30, 2023, totaled $1,556 thousand, indicating ongoing investment in employee incentives[21] - The company estimates the fair value of share-based payment awards using the Black-Scholes option pricing model, recognizing expenses over the requisite service periods[97] - The company recorded share-based compensation expense related to options of $658 thousand for the nine months ended September 30, 2023[179] Major Customers and Suppliers - One major customer accounted for 52% and 65% of the Company's total revenue for the three and nine months ended September 30, 2023, compared to 99% and 81% for the same periods in 2022[50] - The Company had one major supplier representing 4% and 23% of goods and services purchased for the three and nine months ended September 30, 2023[51] Contractual Obligations and Liabilities - As of September 30, 2023, total other current liabilities amounted to $14.262 million, a decrease from $15.178 million as of December 31, 2022[98] - Current contract liabilities were $49.679 million as of September 30, 2023, compared to $56.656 million at the end of 2022[118] - The total liabilities measured at fair value as of September 30, 2023, amounted to $35.7 million, including earn-out liabilities of $19.2 million and warrant liabilities of $16.5 million[185]
INFLECTION POINT(IPAX) - 2023 Q3 - Quarterly Report