Financial Performance - Total revenue for the three months ended March 31, 2023, was $18,236, a decrease of 1.3% compared to $18,471 in the same period of 2022[15] - Operating loss for the same period was $13,963, compared to an operating loss of $4,500 in the prior year, indicating a significant increase in losses[15] - Net loss for the three months ended March 31, 2023, was $23,447, significantly higher than the net loss of $4,342 in the same period of 2022[15] - For the three months ended March 31, 2023, the net loss was $23,447 thousand, compared to a net loss of $4,342 thousand for the same period in 2022, representing a significant increase in losses[24] - Cash flows used in operating activities for Q1 2023 were $18,666 thousand, a decrease from $24,044 thousand in Q1 2022, indicating improved cash management despite ongoing losses[24] - The company reported a net cash increase of $21,037 thousand in Q1 2023, compared to a decrease of $20,235 thousand in Q1 2022, reflecting a positive shift in cash position[24] Assets and Liabilities - Total current assets increased to $65,603 as of March 31, 2023, up from $40,992 at the end of 2022, reflecting a growth of 60.4%[13] - Total liabilities rose to $220,851 as of March 31, 2023, compared to $124,623 at the end of 2022, representing an increase of 77.1%[13] - Cash and cash equivalents increased to $46,801 as of March 31, 2023, compared to $25,764 at the end of 2022, marking an increase of 81.7%[13] - The Company had cash and cash equivalents of $46.8 million and a working capital deficit of $42.5 million as of March 31, 2023[45] - As of March 31, 2023, other current liabilities totaled $22,257,000, an increase from $15,178,000 as of December 31, 2022[84] Business Operations - The company is focused on developing space systems and infrastructure for lunar exploration, aiming to support sustainable human presence on the Moon and beyond[26] - Intuitive Machines, Inc. completed a business combination on February 13, 2023, resulting in the conversion of all common units of Intuitive Machines, LLC into common stock of Intuitive Machines, Inc.[28] - The company operates in one reportable segment, with all assets maintained in the United States, emphasizing its concentrated operational focus[38] - As of March 31, 2023, one major customer accounted for 74% of the Company's total revenue, down from 78% in the same period of 2022[42] Capital Expenditures and Investments - The company incurred $8,565 thousand in capital expenditures for property and equipment in Q1 2023, compared to $377 thousand in Q1 2022, indicating increased investment in growth[24] - The Company capitalized $17.4 million in property and equipment related to reimbursable leasehold improvement costs as of March 31, 2023[119] - Construction in progress includes $17.4 million for a lunar operations center and $7.9 million for a commercial communications satellite, with capitalized interest of $173 thousand for the three months ended March 31, 2023[113] Shareholder Information - The weighted average shares outstanding for the period was 15,224,378[15] - The basic and diluted net loss per share for the period from February 13, 2023, to March 31, 2023, was $(0.64) based on a net loss of $(9.688) million attributable to Class A common shareholders[170] - As of March 31, 2023, the total shares outstanding for Intuitive Machines, Inc. were 82,948,558, including 14,771,804 Class A Common Stock, 10,566 Class B Common Stock, and 68,140,188 Class C Common Stock[132] Revenue Recognition and Contracts - Fixed price contracts accounted for 91% of total revenue in Q1 2023, while time and materials contracts made up 9%[103] - The company recognizes changes in contract estimates on a cumulative catch-up basis, which can affect revenue recognition in current and prior periods[70] - Unbilled receivables, resulting from revenue recognized exceeding billings, are reported as contract assets, while deferred revenue consists of advance payments exceeding recognized revenue[73] - Remaining performance obligations amounted to $87.0 million as of March 31, 2023, with an expectation to recognize 75-80% of this revenue over the next 9 months[109] Financial Obligations and Liabilities - The company established earn-out liabilities of $103,385 as of March 31, 2023, reflecting new financial obligations[13] - The fair value of earn-out liabilities was estimated at $103.385 million, up from $18.314 million as of December 31, 2022[160][161] - The reserve for estimated contract losses recorded in contract liabilities was $1.6 million as of March 31, 2023, down from $1.9 million as of December 31, 2022[115] Tax and Compliance - For the three months ended March 31, 2023, the Company recognized an income tax expense of $3.2 million, compared to $0 for the same period in 2022[126] - The company uses the asset and liability method for income taxes, recognizing deferred tax assets and liabilities based on enacted tax rates expected to apply in future periods[76] Market and Risk Factors - The Company has determined that the IX, LLC joint venture is a variable interest entity and is consolidated for financial reporting purposes[181] - The OMES III contract awarded in April 2023 is currently under protest, impacting future revenue expectations[183] - The Company is classified as a smaller reporting company and is not required to provide additional market risk disclosures[287]
INFLECTION POINT(IPAX) - 2023 Q1 - Quarterly Report