Momentus (US:MNTS)2022-05-10 22:46Financial Performance - Service revenue for the three months ended March 31, 2022, was $0, compared to $130,000 for the same period in 2021, indicating a significant drop in revenue[17] - The net loss for the three months ended March 31, 2022, was $26,834,000, compared to a net income of $64,671,000 in Q1 2021, marking a substantial change in performance[17] - The company reported a gross margin of $0 for the three months ended March 31, 2022, compared to $82,000 in Q1 2021, highlighting a complete loss of revenue generation[17] - The company experienced a total other income (expense) of $(2,010,000) for Q1 2022, compared to $88,500,000 in Q1 2021, indicating a significant decline in financial performance[17] - Momentus reported a net loss of $26.83 million for the three months ended March 31, 2022, compared to a net income of $64.67 million for the same period in 2021[176] Assets and Liabilities - Total current assets decreased from $169,664,000 as of December 31, 2021, to $143,686,000 as of March 31, 2022, representing a decline of approximately 15.3%[14] - Cash and cash equivalents decreased from $160,036,000 as of December 31, 2021, to $135,602,000 as of March 31, 2022, a decline of approximately 15.3%[14] - Total liabilities rose from $53,937,000 as of December 31, 2021, to $61,169,000 as of March 31, 2022, an increase of approximately 13.5%[14] - The accumulated deficit increased from $208,683,000 as of December 31, 2021, to $235,517,000 as of March 31, 2022, indicating a worsening financial position[14] - Momentus' total stockholders' equity as of March 31, 2022, was $101.255 million, compared to $131.888 million as of December 31, 2021[22] Operating Expenses - Total operating expenses increased from $23,911,000 in Q1 2021 to $24,824,000 in Q1 2022, reflecting a rise of about 3.8%[17] - Cash used in operating activities for the three months ended March 31, 2022, was $23.062 million, an increase from $21.199 million in the same period of 2021[22] - The company incurred stock-based compensation expenses of $2.212 million for the three months ended March 31, 2022, down from $5.768 million in the same period of 2021[22] - The stock-based compensation expense for the three months ended March 31, 2022, was $2.21 million, a decrease from $5.77 million in the same period in 2021[168] Shareholder Information - Weighted average shares outstanding, basic, increased from 62,733,080 in Q1 2021 to 79,958,383 in Q1 2022, reflecting a dilution of shares[17] - The weighted average shares outstanding for diluted net loss per share was 79,958,383 for the three months ended March 31, 2022, compared to 87,684,818 for the same period in 2021[176] - As of March 31, 2022, the Company had 79,772,262 shares of Common Stock outstanding, with Momentus Space, LLC unit holders holding 63% of the shares[141] Future Plans and Developments - The company plans to launch its Vigoride vehicle to Low Earth Orbit as early as May 2022, pending necessary licenses and government approvals[23] - Momentus anticipates its first launch with customers to occur as early as May 2022, pending necessary licenses and government approvals[207] - Momentus has signed contracts for approximately $69 million in backlog as of April 30, 2022, spanning across 25 companies[206] - The company plans to offer transportation and infrastructure services for satellite operators, including "last mile" satellite transportation and on-orbit services[204] Regulatory and Compliance - Momentus received all required government approvals for its inaugural flight, including a favorable determination from the FAA and a license from the FCC[24] - The company recorded a liability of $5 million related to a settlement with the SEC, in addition to a fine of $2 million paid[188] - The company may incur liquidated damages up to $1 million per breach of the National Security Agreement, which imposes various compliance requirements[196] Impairments and Charges - The Company recorded an impairment charge of $8.7 million for prepaid launch costs during the three months ended June 30, 2021, due to a launch service provider default[50] - The Company recorded an impairment charge of $8.7 million for prepaid launch costs due to the termination of launch service agreements[114] Debt and Financing - The Company entered into a Term Loan agreement on February 22, 2021, providing up to $40.0 million in borrowing capacity, with $25.0 million borrowed at an annual interest rate of 12%[10] - As of March 31, 2022, the Company's Loan payable consisted of gross Term Loan payable of $24.1 million and accrued interest of $0.01 million, offset by unamortized debt discount and issuance costs of $3.4 million[136] - The repayment terms of the Term Loan were extended to two years, resulting in a recalculated effective interest rate of 28.2%[135] Legal and Litigation - Legal expenses related to ongoing litigation amounted to approximately $0.8 million during the three months ended March 31, 2022[197] - The Company recorded one-time transaction costs of $27.8 million related to equity issuance and $4.8 million for liability classified warrants[106] Accounting and Reporting - The Company is classified as an emerging growth company and has elected to take advantage of the extended transition period for new accounting standards[44] - The Company’s financial statements reflect a reverse recapitalization, treating Momentus Inc. as the acquirer[34] - The Company adopted ASU 2020-06 on January 1, 2022, which simplifies accounting for convertible instruments, with no impact on the financial statements at adoption[101] Research and Development - Research and development costs are expensed as incurred, focusing on developing existing and future technologies for the company's vehicles[81] - Momentus is developing water plasma propulsion technology to minimize environmental impact while providing satellite services[204] Lease Obligations - The Company has a total lease obligation of approximately $11 million over the term of its new lease in San Jose, California, expiring in February 2028[125] - The company leases real estate facilities under non-cancelable operating leases, with expiration dates through February 2028[84]