Momentus (US:MNTS)2022-08-12 04:16Financial Data and Key Metrics Changes - The company reported a cumulative backlog of approximately $55 million as of July 31, 2022, down from $69 million in the previous quarter due to a contract cancellation by a customer [36] - The company ended Q2 with non-restricted cash and cash equivalents of $109 million, which is expected to last through the end of 2023 [37] - The company recognized $50,000 in revenue and $38,000 in gross profits during the quarter, with a loss from operations of approximately $24 million [37] Business Line Data and Key Metrics Changes - Momentus successfully deployed a total of six customer satellites from the Vigoride 3 vehicle and one from a third-party deployer system, totaling seven satellites deployed [10][22] - The company plans to launch its second Vigoride vehicle on the SpaceX Transporter-6 mission targeted for November 2022, with additional missions planned for early 2023 [27][75] Market Data and Key Metrics Changes - The company is exploring adjacent market segments by offering a lower-cost option alongside Vigoride, which allows it to address diverse customer needs more economically [24] - The small satellite market remains robust, with many new entrants and innovative ideas emerging, despite a tougher funding environment [78] Company Strategy and Development Direction - Momentus is implementing a cost reduction plan to extend its cash runway through the end of 2023, focusing on operational efficiencies and delaying certain R&D projects [27][29] - The company aims to increase its focus on bidding for government programs at NASA and the Department of Defense, identifying significant opportunities for funding [30][49] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's progress, having retired historical regulatory difficulties and successfully launched its first spacecraft [31] - The company is committed to learning from its inaugural mission and implementing corrective actions to ensure future missions are productive [32] Other Important Information - The company has made substantial progress in technology development, including completing ground testing and preparing for future launches [15] - An independent review team confirmed the root causes of anomalies experienced during the Vigoride 3 mission, leading to enhanced testing procedures for future missions [20][65] Q&A Session Summary Question: Can you talk about how you're tracking schedule rides for November? - Management confirmed they are on track for the November launch but noted a tight schedule and potential supply chain challenges [43] Question: Can you provide details on the extended cash runway and revenue assumptions? - Management indicated that the cash on hand should last through the end of 2023 without assuming material revenue from upcoming launches [52] Question: How comfortable is the company with the solar panel issue and the processes behind it? - Management acknowledged the mechanical issue with the solar panels and stated that enhanced test procedures are being implemented to prevent future occurrences [64] Question: Are there specific government programs that could be leveraged for funding? - Management mentioned pursuing opportunities with NASA and the Department of Defense, including proposals for NASA's tipping point and VADR contracts [66][67] Question: What level of launch cadence is needed to generate cash? - Management stated that the next three missions are fully funded with the current cash balance, and they expect customer order activity to increase once flight heritage is established [75]