Financial Performance - Total revenue for the three months ended June 30, 2023, was $17,993,000, a decrease of 6.36% from $19,217,000 in the same period of 2022[14]. - Operating loss for the three months ended June 30, 2023, was $13,183,000, compared to an operating loss of $2,219,000 for the same period in 2022, indicating a significant increase in losses[14]. - Net income for the three months ended June 30, 2023, was $18,777,000, a turnaround from a net loss of $2,554,000 in the same period of 2022[14]. - Net income attributable to Class A common shareholders for the three months ended June 30, 2023, was $28,866,000, compared to $19,178,000 for the same period in 2022[14]. - The company reported a net income attributable to the Company of $29,521 thousand for the quarter ended June 30, 2023, compared to a net loss of $(5,751) thousand for the same period in the previous year[23]. - Net loss for the six months ended June 30, 2023, was $4.67 million, an improvement from a net loss of $6.90 million in the same period of 2022[31]. Assets and Liabilities - Total assets as of June 30, 2023, were $95,763,000, up from $67,004,000 as of December 31, 2022, reflecting a growth of approximately 42.8%[12]. - Total liabilities increased to $168,582,000 as of June 30, 2023, compared to $124,623,000 as of December 31, 2022, representing a rise of about 35.3%[12]. - The company has a significant accumulated deficit of $665,456,000 as of June 30, 2023, compared to $72,587,000 as of December 31, 2022, indicating ongoing financial challenges[12]. - As of June 30, 2023, total shareholders' equity was $(678,272) thousand, reflecting a decrease from $(883,328) thousand as of March 31, 2023[21]. - As of June 30, 2023, the company's other current liabilities totaled $30,134,000, an increase from $15,178,000 as of December 31, 2022[91]. Cash Flow and Financing - Cash and cash equivalents increased to $39,087,000 as of June 30, 2023, from $25,764,000 as of December 31, 2022, marking a growth of approximately 51.5%[12]. - Net cash used in operating activities increased to $15.77 million for the six months ended June 30, 2023, compared to $11.14 million in the prior year[31]. - Net cash provided by financing activities was $49.30 million for the six months ended June 30, 2023, compared to $7.85 million in the same period of 2022[31]. - Cash flows from investing activities totaled $20.20 million for the six months ended June 30, 2023, significantly higher than $5.40 million in 2022[31]. - The company received approximately $34.1 million in gross proceeds from the Business Combination with IPAX on February 13, 2023[52]. Shareholder Information - The weighted average shares outstanding for basic shares was 15,705,265 for the three months ended June 30, 2023, compared to 15,543,800 for the same period in 2022[14]. - The balance of Class A common stock increased to 17,301,489 shares as of June 30, 2023, from 16,021,803 shares as of March 31, 2023[21]. - As of June 30, 2023, the total shares outstanding for Intuitive Machines, Inc. amounted to 86,728,243, with 17,301,489 shares of Class A Common Stock issued[142]. - The Series A Preferred Stock pays dividends at a rate of 10% of the original price per share, compounded semi-annually, and is convertible into Class A Common Stock at an initial conversion price of $12.00 per share[148][150]. Revenue Recognition - Revenue is recognized when performance obligations are satisfied, primarily through long-term contracts for advanced technology aerospace systems[68]. - The company utilizes the cost-to-cost method for revenue recognition, measuring performance based on contract costs incurred to date compared to total estimated contract costs[71]. - Fixed price contracts accounted for 89% of total revenue for the three months ended June 30, 2023, while time and materials contracts represented 11%[111]. - The Company recorded net losses related to contracts with customers of $7.0 million for the three months ended June 30, 2023, compared to zero in the same period of 2022[115]. - Remaining performance obligations totaled $73.4 million as of June 30, 2023, with an expectation to recognize 50-55% of this amount over the next six months[118]. Business Operations and Strategy - The company is focused on creating and operating space systems and infrastructure to support lunar exploration and resource utilization[33]. - Intuitive Machines, Inc. completed a business combination on February 13, 2023, resulting in a reorganization into an Up-C structure[36]. - The company holds a 90% interest in Space Network Solutions, LLC, which was formed to provide cyber security and communication services for lunar space missions[198]. - In Q2 2023, NASA awarded SNS, LLC a contract to support work related to the Joint Polar Satellite System, indicating a strategic partnership for future projects[199]. - The IX LLC JV is focused on developing nuclear space propulsion systems and received an award from Battelle Energy Alliance to design a fission surface power system for lunar operations[197]. Share-Based Compensation - Share-based compensation expense for the quarter was $985 thousand, indicating an increase from $101 thousand in the previous year[23]. - The company recognized share-based compensation expense based on the fair value of awards on the grant date, using the Black-Scholes option pricing model[90]. - Share-based compensation expense related to options was $278 thousand for the three months and $485 thousand for the six months ended June 30, 2023, compared to $124 thousand and $240 thousand for the same periods in 2022[167]. - The company had $1.2 million in estimated unrecognized share-based compensation costs related to outstanding unit options expected to be recognized over a weighted average period of 1.81 years[167]. Tax and Regulatory Matters - The company uses the asset and liability method for accounting income taxes, recognizing deferred tax assets and liabilities based on enacted income tax rates[82]. - The company has an uncertain tax position related to launch-related costs, pending IRS consent for a change in accounting method as of June 30, 2023[136]. - The company recognized a combined U.S. federal and state tax benefit of $3.5 million for the three months ended June 30, 2023, compared to an expense of $0.4 million for the same period in 2022[135].
INFLECTION POINT(IPAX) - 2023 Q2 - Quarterly Report