Part I – Financial Information Financial Statements The company's Q1 2025 net income improved to $0.975 million due to favorable warrant liability changes and increased assets Unaudited Condensed Consolidated Balance Sheets Total assets grew to $500.0 million while liabilities decreased to $172.4 million, significantly improving the shareholders' deficit Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $373,253 | $207,607 | | Total current assets | $431,312 | $293,161 | | Total assets | $500,014 | $355,404 | | Liabilities & Equity | | | | Total current liabilities | $98,148 | $98,831 | | Earn-out liabilities | $0 | $134,156 | | Warrant liabilities | $25,776 | $68,778 | | Total liabilities | $172,400 | $351,483 | | Total shareholders' deficit | $(135,223) | $(1,008,034) | Unaudited Condensed Consolidated Statements of Operations Q1 2025 revenue decreased to $62.5 million, but non-operating income drove a net income of $0.975 million Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Revenue | $62,524 | $73,219 | | Operating loss | $(10,077) | $(2,775) | | Change in fair value of warrant liabilities | $43,002 | $(23,964) | | Loss on issuance of securities | $0 | $(68,676) | | Net income (loss) | $975 | $(118,031) | | Net loss per share of Class A common stock | $(0.11) | $(2.68) | Unaudited Condensed Consolidated Statements of Cash Flows Net cash increased by $165.6 million in Q1 2025, driven by strong financing activities from warrant exercises Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $19,419 | $(6,442) | | Net cash used in investing activities | $(6,122) | $(1,588) | | Net cash provided by financing activities | $152,349 | $60,754 | | Net increase in cash | $165,646 | $52,724 | | Cash and cash equivalents at end of period | $373,253 | $55,242 | Notes to Unaudited Condensed Consolidated Financial Statements Notes detail a revenue shift to fixed-price contracts, significant liquidity from warrant exercises, and major purchase commitments - The company operates in one reportable segment focused on cislunar infrastructure and commerce, with its business structured around three pillars: delivery services, data transmission services, and infrastructure as a service31152 - A single major customer, NASA, accounted for 78% of total revenue for the three months ended March 31, 2025, down from 92% in the same period of 202447 - In February 2025, the company redeemed all outstanding public and private warrants, generating approximately $176.6 million in gross proceeds from exercises before the redemption date5698 - As of March 31, 2025, the company had remaining purchase obligations under non-cancelable commitments totaling $93.8 million, with payments extending through 2027136 Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) Management discusses decreased Q1 revenue, a strengthened liquidity position from warrant exercises, and a backlog of $272.3 million - The company's Nova-C lander became the first U.S. vehicle to softly land on the lunar surface since 1972 in February 2024 (IM-1 mission), followed by a second landing at the southernmost location of the moon in March 2025 (IM-2 mission)160 - Backlog decreased to $272.3 million as of March 31, 2025, from $328.3 million at the end of 2024, mainly due to revenue recognition of $62.5 million on existing contracts, partially offset by $6.5 million in new awards219220 - The company's liquidity position was significantly enhanced, with cash and cash equivalents increasing to $373.3 million as of March 31, 2025, primarily due to $176.6 million in proceeds from warrant exercises232 Financial Results Comparison (in thousands) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $62,524 | $73,219 | $(10,695) | | Operating Loss | $(10,077) | $(2,775) | $(7,302) | | Net Income (Loss) | $975 | $(118,031) | $119,006 | | Adjusted EBITDA | $(6,610) | $1,565 | $(8,175) | Quantitative and Qualitative Disclosures About Market Risk The company is exempt from this disclosure requirement as a smaller reporting company - As a smaller reporting company, Intuitive Machines is not required to provide quantitative and qualitative disclosures about market risk256 Controls and Procedures Management concluded that disclosure controls and internal controls over financial reporting were effective as of March 31, 2025 - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025257 - No changes occurred during the first quarter of 2025 that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting258 Part II – Other Information Legal Proceedings The company is defending a breach of contract lawsuit related to stock conversion and faces other routine legal proceedings - The company is defending a breach of contract action filed by Starlight Strategies IV LLC related to the conversion of Series A Preferred Stock, and intends to vigorously defend the litigation135 Risk Factors No material changes have been made to the risk factors disclosed in the 2024 Annual Report on Form 10-K - No material changes to the risk factors disclosed in the 2024 Annual Report on Form 10-K have occurred as of the date of this quarterly report261 Unregistered Sales of Equity Securities and Use of Proceeds Information regarding unregistered sales of equity securities was previously disclosed in a Form 8-K filing - Details on unregistered sales of equity securities were previously reported on a Form 8-K filed on February 4, 2025262 Defaults Upon Senior Securities None Mine Safety Disclosures Not applicable Other Information None Exhibits This section lists all exhibits filed with the report, including required CEO and CFO certifications
INFLECTION POINT(IPAX) - 2025 Q1 - Quarterly Report