Momentus (US:MNTS)2023-05-11 22:30Financial Performance - Total current assets decreased from $76,274,000 as of December 31, 2022, to $53,033,000 as of March 31, 2023, representing a decline of approximately 30.5%[16] - Service revenue for the three months ended March 31, 2023, was $22,000, compared to $0 for the same period in 2022, indicating the company has begun generating revenue[18] - Total operating expenses decreased from $24,824,000 in Q1 2022 to $20,389,000 in Q1 2023, a reduction of approximately 17.5%[18] - Net loss for the three months ended March 31, 2023, was $20,825,000, compared to a net loss of $26,834,000 for the same period in 2022, reflecting an improvement of about 22.5%[18] - Cash and cash equivalents decreased from $61,094,000 as of December 31, 2022, to $38,630,000 as of March 31, 2023, a decline of approximately 36.7%[16] - The company reported a gross profit of $22,000 for Q1 2023, marking its first recorded gross profit[18] - The accumulated deficit increased from $(304,127,000) as of December 31, 2022, to $(324,952,000) as of March 31, 2023, indicating a worsening of the company's financial position[19] - The company used net cash of $18.7 million in operating activities for the three months ended March 31, 2023, compared to $23.1 million in the same period of 2022, indicating a 19.5% decrease in cash used[23] Assets and Liabilities - The total liabilities decreased from $53,816,000 as of December 31, 2022, to $39,896,000 as of March 31, 2023, a reduction of approximately 26%[16] - Cash and cash equivalents at the end of the period were $39.9 million, down from $136.0 million at the end of the same period in 2022, reflecting a decrease of 70.7%[23] - As of March 31, 2023, the company had $6.9 million in deferred fulfillment and prepaid launch costs recorded within current and non-current assets[52] - The net value of property, machinery, and equipment as of March 31, 2023, was $3.844 million, down from $4.016 million as of December 31, 2022[96] - The total accrued expenses as of March 31, 2023, were $6.496 million, a decrease from $8.026 million as of December 31, 2022[102] - As of March 31, 2023, the Company's total loan payable was $12.2 million, with future scheduled maturities of $9.9 million and $2.3 million for 2023 and 2024, respectively[107] Revenue Recognition and Backlog - The company recognizes revenue at a point in time upon satisfaction of performance obligations, primarily in the aerospace industry[58] - As of March 31, 2023, the company has a backlog of approximately $33 million in signed contracts, spanning 19 companies across 13 countries[174] - The company has signed contracts for approximately $33 million in backlog, spanning across 19 companies in 13 countries[205] - Approximately 86% of the total dollar value of the backlog is related to three launch services providers and their affiliates[206] - Backlog is subject to large variations and may not be indicative of future revenues, with contracts potentially scheduled for many years in the future[207] - The economic viability of customers in the backlog is not guaranteed, which may affect actual revenue realization[207] - Timing of revenue receipt from backlog projects could change due to various factors affecting scheduling[207] - Failure to realize backlog could adversely impact revenues and gross margins[207] Operational Developments - The company successfully completed initial tests of the Microwave Electrothermal Thruster (MET) during the Vigoride 5 mission, which is designed to use solar power and distilled water as propellant[27] - The Vigoride 6 mission, launched on April 15, 2023, is providing orbital delivery services for six customer payloads, including two satellites for the NASA LLITED mission[30] - Momentus plans to conduct one additional mission with its Vigoride OSV during 2023, subject to necessary licenses and government approvals[32] - The company is focused on developing a hub-and-spoke transportation network in partnership with leading launch service providers, aiming to reduce costs for satellite operators[173] - The company anticipates considerable growth in the space transportation segment, driven by demand for small satellite transportation to low-earth orbit[176] - The company offers a range of services including satellite transportation, payload-hosting, and on-orbit satellite maintenance[172] - The company is developing a modular approach to satellite systems through a subscription-based hosted payload service[189] - The Tape Spring Solar Array (TASSA) technology is being demonstrated on the Vigoride 6 mission, aimed at reducing vehicle production costs[184] - The company aims to develop reusable vehicles by 2025, which will allow for lower manufacturing and launch costs[197] - The company anticipates growing demand for in-orbit servicing as the number of satellites in space increases[201] Legal and Regulatory Matters - The company has faced multiple shareholder derivative actions alleging misrepresentations and breaches of fiduciary duty, which it intends to vigorously defend[155][161] - The company disputes claims made by TLLT regarding a $4 million investment and seeks to defend against allegations of fraudulent inducement and breach of contract[156] - The company has maintained that releases signed by former co-founders regarding claims against it are effective, despite ongoing disputes[159] - The company is subject to various litigation matters that may divert management's attention and incur significant costs, but it believes these will not have a material adverse effect on its business[165][166] - The company recorded a litigation settlement contingency of $8.5 million related to the Securities Class Actions, with $4.0 million expected to be funded by insurance proceeds[144] Stock and Financing Activities - The Company raised approximately $10.0 million in gross proceeds from a Securities Purchase Agreement on February 23, 2023, selling 9,396,000 shares of Class A common stock at $0.8646 per share[111] - The Company allocated approximately $1.0 million and $4.0 million from the Offering to the fair value of Pre-Funded Warrants and Class A Warrants, respectively[112][113] - The Company paid $10.0 million to Co-Founders as part of stock repurchase agreements triggered by capital raising activities, including the Registered Direct Offering[116] - The company issued 135,000 shares of common stock to a consulting firm for public relations services, valued at $0.1 million, to be recorded as consulting expense over six months[137] - The total stock-based compensation for the three months ended March 31, 2023, was $1.72 million, a decrease of 22.2% from $2.21 million in the same period of 2022[134] - The company granted 7,989,137 Restricted Stock Units (RSUs) during the three months ended March 31, 2023, with a weighted average grant date fair value of $0.60[133] - As of March 31, 2023, there was a total of $23.3 million in unrecognized compensation cost related to unvested RSUs, expected to be recognized over a weighted-average period of 1.9 years[133] Future Financial Outlook - The company expects to remain an emerging growth company until certain financial thresholds are met, including a market value of common stock exceeding $700 million or total annual gross revenue of $1.07 billion[47] - The company is classified as an "emerging growth company" and has elected to take advantage of the extended transition period for new or revised financial accounting standards[47] - The company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks[73] - The company aims to reduce operating expenses and drive revenue growth as part of its strategic business plan to address its going concern status[39]