Momentus (US:MNTS)2025-11-19 22:36Financial Performance - Service revenue for the three months ended September 30, 2025, was $234,000, a 118.7% increase from $107,000 in the same period of 2024[15]. - Gross profit for the nine months ended September 30, 2025, was $745,000, compared to $1,763,000 for the same period in 2024, indicating a decline of 57.8%[15]. - Net loss for the three months ended September 30, 2025, was $11,074,000, compared to a net loss of $7,758,000 for the same period in 2024, reflecting a 42.5% increase in losses[15]. - Momentus reported a net loss of $23.7 million for the nine months ended September 30, 2025, with an accumulated deficit of $431.7 million as of the same date[27]. - The company incurred a net loss of $23.1 million for the nine months ended September 30, 2024, indicating ongoing financial challenges[21]. Assets and Liabilities - Total assets increased to $19,601,000 as of September 30, 2025, compared to $9,952,000 as of December 31, 2024, representing a 96.5% growth[13]. - Cash and cash equivalents decreased to $670,000 as of September 30, 2025, from $1,572,000 as of December 31, 2024, a decline of 57.6%[13]. - Total current liabilities increased to $17,324,000 as of September 30, 2025, compared to $15,010,000 as of December 31, 2024, an increase of 15.4%[13]. - The accumulated deficit as of September 30, 2025, was $(431,689,000), up from $(407,993,000) as of December 31, 2024, indicating a worsening of the deficit by 5.8%[13]. - The total stockholders' deficit improved to $(694,000) as of September 30, 2025, from $(7,810,000) as of December 31, 2024, showing a reduction of 91.1%[13]. Cash Flow and Financing - The company used net cash of $12.7 million to fund its operating activities during the nine months ended September 30, 2025, and had cash and cash equivalents of $0.7 million at the end of the period[28]. - The company expects to finance its operations through equity or debt financings, which may not be available on favorable terms[30]. - If the company cannot raise additional capital, its operations may need to be scaled back or halted altogether[31]. - The company continues to seek opportunities to access additional capital through various means to alleviate its financial conditions[30]. Research and Development - Research and development expenses for the nine months ended September 30, 2025, were $6,436,000, a decrease of 16.8% from $7,731,000 in the same period of 2024[15]. - Research and development costs are expensed as incurred, focusing on developing existing and future technologies for the Company's vehicles[83]. Debt and Loans - The Company entered into a loan agreement with J.J. Astor & Co. for up to $1.5 million, structured in two tranches of $0.75 million each, with a maturity date of March 6, 2026[110]. - The May 2025 Loan requires repayment in 40 weekly installments of $25,000, with at least 10% in cash and the remainder in shares at a conversion price of $1.70 per share[110]. - The Company prepaid $1.0 million to extinguish the May 2025 Loan, which included a $0.1 million termination fee, and recognized a $0.5 million loss on extinguishment[116]. - The Company recognized a $0.8 million loss on extinguishment related to the December 2024 Loan, which was prepaid for $2.4 million[124]. - The total loan payable as of September 30, 2025, consisted of convertible promissory note principal of $3.0 million and accrued interest of $0.4 million[152]. Stock and Equity - The Company issued warrants to purchase up to 952,940 shares of Class A common stock at an exercise price of $1.70 per share in connection with the May 2025 Loan[112]. - The Company issued new warrants to purchase up to 4,862,058 shares of Class A common stock at an exercise price of $1.11 in connection with the warrant inducement agreement[195]. - The Company has the right to direct an investor to purchase up to $50.0 million in shares of Class A common stock at a price of $1.24 per share under the September 2025 Equity Line of Credit (ELOC)[186]. Operational Highlights - Momentus has launched four missions to date, deploying 17 customer satellites and providing hosted payload services, demonstrating significant flight heritage with its Vigoride Orbital Service Vehicle[23]. - The company is advancing its M-1000 satellite bus, which integrates innovations for improved sensor capability, maneuverability, and lower costs, positioning it to meet growing demand in the satellite bus market[24]. - The company has produced its next OSV, Vigoride 7, intended for a mission in 2026, reflecting its commitment to future growth[23]. Fair Value Measurements - As of September 30, 2025, the Company has no assets measured at fair value on a recurring basis, but has liabilities including warrants and convertible notes classified within Level 3 of the fair value hierarchy[56]. - The Company uses the Black-Scholes option pricing model to measure the fair value of warrants and convertible instruments, requiring management to make assumptions about stock price volatility and expected life[79].