Momentus (US:MNTS)2022-11-08 23:00Financial Performance - Total service revenue for Q3 2022 was $129,000, a decrease of 35.5% compared to $200,000 in Q3 2021[16] - Gross margin for Q3 2022 was $115,000, down from $384,000 in Q3 2021, reflecting a significant decline in revenue[16] - Net loss for Q3 2022 was $21,298,000, compared to a net loss of $5,614,000 in Q3 2021, highlighting a worsening financial position[16] - For the nine months ended September 30, 2022, Momentus reported a net loss of $71,004, compared to a net income of $123,384 for the same period in 2021[22] - The net loss for the quarter ending June 30, 2022, was $21,298 thousand, reflecting a decrease from the previous quarter's net loss of $22,872 thousand[18] - The diluted net loss per share for the three months ended September 30, 2022, was $(0.26), compared to $(0.09) for the same period in 2021[187] Assets and Liabilities - Total assets decreased to $108,700,000 as of September 30, 2022, down from $185,825,000 as of December 31, 2021[14] - Total liabilities were $48,809,000 as of September 30, 2022, a decrease from $53,937,000 as of December 31, 2021[14] - The accumulated deficit increased to $279,686,000 as of September 30, 2022, compared to $208,683,000 as of December 31, 2021[14] - The total accrued expenses as of September 30, 2022, amounted to $7.881 million, down from $9.785 million as of December 31, 2021, indicating a reduction of about 19.4%[142] - The Company’s total loan payable as of September 30, 2022, consisted of $18.3 million in gross Term Loan payable and $0.1 million in accrued interest, offset by $2.0 million in unamortized debt discount and issuance costs[151] Research and Development - Research and development expenses increased to $10,571,000 in Q3 2022, compared to $9,047,000 in Q3 2021, indicating ongoing investment in technology[16] - Research and development costs are expensed as incurred, focusing on developing existing and future technologies for the Company's vehicles[96] - Research and development expenses for stock-based compensation were $737,000 for the three months ended September 30, 2022, up from $52,000 in 2021, indicating a significant increase[181] Stock and Equity - Weighted average shares outstanding, basic, increased to 82,066,795 in Q3 2022 from 60,589,566 in Q3 2021, reflecting potential dilution[16] - As of September 30, 2022, the total common stock shares outstanding were 83,984,571, with a total stockholders' equity of $59,891 thousand[18] - The Company issued 1,294,668 common stock shares upon the exercise of stock options during the quarter ending March 31, 2022, generating $345 thousand in additional capital[18] - The Company issued SAFE notes to investors, resulting in aggregate proceeds of $30.9 million during the nine months ended September 30, 2021[143] - The Company entered into an At-the-Market Equity Offering Sales Agreement allowing for the sale of shares of Common Stock up to an aggregate offer price of $50.0 million, with a commission rate of up to 3.0%[169] Operations and Services - Momentus deployed a total of eight customer satellites in low-earth orbit, including five additional satellites during the third quarter of 2022[31] - The company anticipates flying its second Vigoride vehicle to low-earth orbit as early as December 2022, subject to regulatory approvals and successful preparations[33] - The company launched its first demonstration flight of the Vigoride spacecraft (Vigoride 3) on May 25, 2022, successfully deploying two customer satellites[61] - The Company recognized $129 thousand in revenue during the three months ended September 30, 2022, with $28 thousand from forfeited customer deposits and $101 thousand from resolved uncertainties related to its inaugural launch[80] Legal and Compliance - The Company paid a fine of $2 million as part of a settlement with the SEC on July 8, 2021, related to the Registration Statement filed in connection with the Business Combination[196] - The Company is involved in litigation regarding claims of fraudulent inducement and breach of contract, with damages sought exceeding $7.6 million[206] - The NSA imposes compliance costs and restrictions that may adversely affect the Company's operating results, with potential penalties of up to $1,000,000 per breach[202] - Legal expenses incurred by the Company were approximately $0.3 million and $1.6 million for the three and nine months ended September 30, 2022, respectively[203] Future Outlook - The Company has future estimated amortization expenses related to intangible assets totaling $343 thousand, with $12 thousand expected for the remainder of 2022[135] - The total future unconditional purchase obligations as of September 30, 2022, amounted to $19,663,000, with $5,963,000 due in the remainder of 2022 and $13,100,000 in 2023[190] - The Company has an estimated liability of $10.0 million expected to be paid to the Co-Founders, recorded as a reduction of additional paid-in capital as of September 30, 2022[160]