Momentus (US:MNTS)2025-05-15 19:45Financial Performance - Momentus Inc. reported service revenue of $322,000 for Q1 2025, a decrease of 37.2% compared to $513,000 in Q1 2024[15]. - The net loss for Q1 2025 was $6.172 million, improving from a net loss of $8.313 million in Q1 2024, representing a reduction of 25.7%[15]. - Operating expenses for Q1 2025 totaled $6.507 million, down 26.3% from $8.840 million in Q1 2024, indicating cost management efforts[15]. - Total revenue for the three months ended March 31, 2025, was $322,000, down 37.19% from $513,000 in the same period of 2024[55]. - The company recognized $0.3 million in revenue for the three months ended March 31, 2025, a decrease of 37.14% compared to $0.5 million for the same period in 2024[54]. - Revenue from forfeited customer deposits increased to $87,000 in Q1 2025 from $35,000 in Q1 2024, representing a growth of 148.57%[55]. - Engineering project services revenue decreased to $235,000 in Q1 2025 from $478,000 in Q1 2024, a decline of 50.8%[55]. Assets and Liabilities - Total current assets increased to $6.837 million as of March 31, 2025, up from $4.526 million at the end of 2024, reflecting a growth of 51.1%[13]. - Total liabilities slightly decreased to $17.699 million as of March 31, 2025, compared to $17.762 million at the end of 2024[13]. - Cash and cash equivalents increased to $3.398 million at the end of Q1 2025, up from $2.049 million at the end of Q1 2024, marking a rise of 65.8%[19]. - The Company had deferred fulfillment and prepaid launch costs of $3.1 million as of March 31, 2025, compared to $2.6 million as of December 31, 2024[45]. - Total accrued liabilities as of March 31, 2025, were $2.887 million, a slight decrease from $3.006 million as of December 31, 2024[113]. Capital and Financing - The Company issued 300,000 shares in a registered offering, raising $4.401 million net of issuance costs[17]. - The Company received gross proceeds of $247.3 million upon the closing of the Business Combination[25]. - The Company expects to finance its operations through equity or debt financings, which may not be available on favorable terms[29]. - There is substantial doubt about the Company's ability to continue as a going concern if it cannot raise additional capital in the near term[30]. - The Company borrowed $2.0 million under a loan agreement in December 2024, with a maturity date of September 19, 2025, and a total repayment amount of $2.7 million if not prepaid[114]. - The Term Loan agreement provided a borrowing capacity of $40.0 million, of which $25.0 million was borrowed at inception, with a 12% annual interest rate[139]. - The effective interest rate for the Term Loan was recalculated to 28.2% after extending the repayment schedule[142]. Stock and Equity - The Company implemented a 1-for-50 reverse stock split on August 22, 2023, and a 1-for-14 reverse stock split on December 12, 2024[32][33]. - The Company is authorized to issue a total of 270,000,000 shares, including 250,000,000 shares of Class A common stock and 20,000,000 shares of preferred stock[146]. - The Company entered into a warrant inducement agreement on March 20, 2025, resulting in gross proceeds of $2.1 million from the exercise of 1,071,429 Induced Warrants at an exercise price of $1.93 per share[151]. - The February 2025 Offering raised approximately $5.0 million in gross proceeds, with net proceeds of $4.4 million recorded to additional paid-in-capital[157]. - The December 2024 Offering generated approximately $5.0 million in gross proceeds, with net proceeds of $4.4 million recorded to additional paid-in-capital[164]. - The September 2024 Offering raised approximately $2.8 million in gross proceeds, with net proceeds of $2.4 million recorded to additional paid-in-capital[170]. Legal and Settlement Matters - The company reached an agreement to settle the Securities Class Actions for $8.5 million, with at least $4.0 million funded by insurance proceeds[207]. - The company paid $1.0 million into the settlement escrow account on October 5, 2023, and an additional $3.5 million on November 16, 2023, following a court order[208]. - The total contingent liability related to the Securities Class Action has been paid in full as of December 31, 2024[210]. - The company disputes the allegations in the Securities Class Actions and continues to deny all claims[209]. - The company is involved in ongoing legal proceedings related to the Securities Class Actions, which may still be subject to appeal[209]. Operational Developments - Momentus has launched four missions to date and deployed 17 customer satellites, demonstrating significant operational capabilities[21]. - The company is advancing its M-1000 satellite bus, which integrates innovations for improved sensor capability and lower costs, positioning itself for a growing market[22]. - Momentus completed work on a Small Business Innovation Research contract to enhance the M-1000 and Vigoride OSV systems for U.S. Department of Defense payloads[23]. - The Company is heavily focused on growth and technology development but has not generated sufficient revenues to finance operations internally[27]. Research and Development - Research and development costs are expensed as incurred, focusing on developing existing and future technologies for the company's vehicles[83].