Momentus Inc. (NASDAQ: MNTS) (“Momentus” or the “Company”), a
U.S. commercial space company that offers satellite buses,
transportation, and other in-space infrastructure services, today
announced its financial results for the third quarter of 2023.
"In the third quarter, we saw significant traction in the
commercial market that continues into the fourth quarter. We
recently announced six contracts to provide hosted payload services
and orbital transportation missions," said Momentus Chief Executive
Officer John Rood. "We have executed four missions and deployed 18
customer satellites into orbit during our Company’s short history.
Our technology is performing, we are earning the trust of new
customers, and we have repeat customers, which reflects the
cost-effective and reliable services we provide."
"We're focused on advancing our technology on the Vigoride
Orbital Service Vehicle and our M-1000 bus as we continue to lean
into the commercial and defense markets. We're confident in our
capabilities, technology, and team, and we continue to push forward
as an in-space infrastructure leader and provider of satellite
buses."
Recent Business Highlights:
- Momentus has raised approximately $16.9 million in gross
proceeds over the past two months. Two registered direct offerings
of common stock were successfully executed, one in the third
quarter on September 11 and one subsequent to it on October 4,
which resulted in an aggregate of $9 million in gross proceeds. The
Company also raised gross proceeds of $1.35 million on October 17
and $6.5 million on November 9 from the exercise of common stock
purchase warrants previously issued by the Company.
- The Company continues to position itself in order to quickly
capitalize on any potential opportunities with interested parties
and evaluate all viable strategic options.
- Momentus signed a contract with C3S for transportation and
orbital delivery services in 2025. C3S is a repeat customer for
Momentus. The C3S VIREO payload was transported to orbit on the
Vigoride-6 mission launched in April 2023.
- Momentus signed a contract with Aarhus University for
transportation and orbital delivery services in late 2024. Aarhus
is also a repeat customer. Momentus placed a satellite in Low Earth
Orbit for Aarhus on the Vigoride-6 mission that launched in April
2023.
- Momentus signed a contract with FOSSA Systems, a Spanish
company that offers global low-power Internet of Things (IoT)
connectivity and in-space services to provide hosted payload
services starting in 2024. The contract also includes two options
for additional hosted payloads. FOSSA is another repeat
customer.
- Momentus signed a contract with RIDE! Space for transportation
and orbital delivery services of two payloads – including the first
Senegalese satellite and the second satellite for Djibouti.
Momentus and RIDE! also signed an agreement to make Momentus’
services available through the RIDE! Space digital platform built
to handle the end-to-end launch process for both launch vehicles
and satellite operator ecosystems.
- Momentus signed a contract with SatRev for transportation and
orbital delivery of their SOWA-1 payload in the first quarter of
2024.
- Momentus signed a contract with AVS, Inc. for transportation
and orbital delivery of the LUR-1 payload in the first quarter of
2024.
- To date, Momentus has executed four missions, deployed 18
customer satellites in orbit, and provided hosted payload support
for Caltech's Solar Power Project Demonstrator mission that
recently demonstrated its ability to wirelessly transmit power in
space and to beam detectable power to Earth.
- In addition to the Vigoride Orbital Service Vehicle, Momentus
is now also offering its M-1000 satellite bus. With a growing
demand for satellite bus services, Momentus is positioned to
advance its hardware and flight-proven technology for this market.
The M-1000 bus is a flexible option to meet various mission
requirements. Innovations to improve sensor capability,
maneuverability, increased power, and lower costs are integrated
into the product. Momentus believes it can manufacture satellite
buses like the M-1000 at a rapid and scalable pace.
- Momentus started work in support of its Small Business
Innovation Research award from the Space Development Agency. This
project's scope involves making tailored modifications to the
system underlying the M-1000 satellite bus and Vigoride OSV to
support a full range of U.S. Department of Defense (DoD) payloads.
Some of these areas include adding a secure payload interface,
optical communications terminals, a high-volume data recorder, and
improving the modularity of the propulsion system. Completion of
this work is expected in April 2024.
- Momentus submitted a bid for the Tranche 2 Tracking Layer to
the U.S. Space Force Space Development Agency (SDA) to produce 18
satellites for missile tracking and fire control. Under this
proposal to the SDA, Momentus is the prime contractor with a strong
team of traditional and non-traditional space companies.
- The Company recently completed vibration testing of its
Vigoride-7 spacecraft that is scheduled to launch no earlier than
March 2024. On that mission, Momentus will support seven customers
that require orbital delivery services and two customers requiring
hosted payload services. The mission also will feature a Rendezvous
and Proximity Operations demonstration of a new Momentus capability
that has application to future satellite inspection, servicing,
refueling, and de-orbit missions. During this demonstration,
Momentus plans to release a satellite and then maneuver into
proximity utilizing its Vigoride Orbital Service Vehicle.
- Momentus continues in-space testing of its Microwave
Electrothermal Thruster that uses water as a propellant. As of
today, Momentus has approximately 230 minutes of firing time on the
MET between both thrusters at the range of durations needed for
current use cases. In total, the Company has executed approximately
6.5 km in orbital raises of the Vigoride OSV by firing the MET in
single or dual-thruster firings.
- Momentus recently conducted initial in-space testing of its
Tape Spring Solar Array (TASSA) developmental payload onboard the
Vigoride-6. TASSA utilizes flexible solar cell technology, allowing
the solar array to be extended and retracted like a tape measure.
To date, the testing was able to demonstrate the majority of the
major TASSA performance requirements. Momentus was recently
notified that its application was approved to issue the Company a
patent for technology behind TASSA.
- The Company has space reserved on SpaceX Transporter missions
launching in 2024 and is actively booking customers.
Conference Call Information
Momentus will host a conference call to discuss the results
today, November 14, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific
Time). To access the conference call, participants should dial +1
(800) 715-9871 and enter the conference ID number 7376493.
International participants should dial +1 (646) 307-1963.
The live audio webcast along with supplemental information will
be accessible on the Company’s Investor Relations website at
https://investors.momentus.space. A recording of the webcast will
also be available following the conference call.
About Momentus Inc.
Momentus is a U.S. commercial space company that offers
commercial satellite buses and in-space infrastructure services,
including in-space transportation, hosted payloads, and in-orbit
services.
Forward-Looking Statements
This press release contains certain statements which may
constitute “forward-looking statements” within the meaning of the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Forward-looking statements include, but are not
limited to, statements regarding the evaluation of strategic
alternatives, Momentus’ or its management team’s expectations,
hopes, beliefs, intentions or strategies regarding the future,
projections, forecasts or other characterizations of future events
or circumstances, including any underlying assumptions, and are not
guarantees of future performance. The words “may,” “will,”
“anticipate,” “believe,” “expect,” “continue,” “could,” “estimate,”
“future,” “expect,” “intends,” “may,” “might,” “plan,” “possible,”
“potential,” “aim,” “strive,” “predict,” “project,” “should,”
“would” and similar expressions may identify forward-looking
statements, but the absence of these words does not mean that a
statement is not forward-looking.
Forward-looking statements are neither historical facts nor
assurances of future performance. Instead, they are based only on
our current beliefs, expectations and assumptions regarding the
future of our business, future plans and strategies, projections,
anticipated events and trends, the economy and other future
conditions.
Because forward-looking statements relate to the future, they
are subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict and many of which are
outside of Momentus’ control. Many factors could cause actual
future events to differ materially from the forward-looking
statements in this press release, including but not limited to: the
ability of the Company to generate revenue and raise capital in
order to continue as a going concern; the ability of the Company to
obtain licenses and government approvals for its missions, which
are essential to its operations; the ability of the Company to
effectively market and sell satellite transport services and
planned in-orbit services; the ability of the Company to protect
its intellectual property and trade secrets; the development of
markets for satellite transport and in-orbit services; the ability
of the Company to develop, test and validate its technology,
including its water plasma propulsion technology; delays or
impediments that the Company may face in the development,
manufacture and deployment of next generation satellite transport
systems; the ability of the Company to convert backlog or inbound
inquiries into revenue; changes in applicable laws or regulations
and extensive and evolving government regulations that impact
operations and business, including export control license
requirements; the ability to attract or maintain a qualified
workforce with the required security clearances and requisite
skills; product service or product or launch failures or delays
that could lead customers to use competitors’ services;
investigations, claims, disputes, enforcement actions, litigation
and/or other regulatory or legal proceedings; the Company’s ability
to comply with the terms of its National Security Agreement and any
related compliance measures instituted by the director who was
approved by the CFIUS Monitoring Agencies; the possibility that the
Company may be adversely affected by other economic, business,
and/or competitive factors; and/or other risks and uncertainties.
These are only some of the factors that may affect the
forward-looking statements contained in this press release. For a
discussion identifying additional important factors that could
cause actual results to differ materially from those anticipated in
the forward-looking statements, see the company’s filings with the
U.S. Securities and Exchange Commission including, but not limited
to, “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” and “Risk Factors” in the Company’s
Annual Report on Form 10-K for the year ended December 31, 2022.
The Company’s filings may be accessed through the Investor
Relations page of its website, investors.momentus.space, or through
the website maintained by the SEC at www.sec.gov. Forward-looking
statements speak only as of the date they are made. Readers are
cautioned not to put undue reliance on forward-looking statements,
and, except as required by law, the Company assumes no obligation
and does not intend to update or revise these forward-looking
statements, whether as a result of new information, future events,
or otherwise.
Third Quarter 2023 Financial Results
MOMENTUS INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except share
data)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Service revenue
$
339
$
129
$
2,066
$
179
Cost of revenue
119
14
507
26
Gross profit
220
115
1,559
153
Operating expenses:
Research and development expenses
5,992
10,571
26,315
31,438
Selling, general and administrative
expenses
9,294
11,184
29,571
38,898
Total operating expenses
15,286
21,755
55,886
70,336
Loss from operations
(15,066
)
(21,640
)
(54,327
)
(70,183
)
Other income (expense), net:
Change in fair value of warrant
liability
221
1,579
559
3,382
Realized loss on disposal of assets
—
(45
)
(17
)
(114
)
Interest income
216
28
1,128
33
Interest expense
(530
)
(1,261
)
(2,182
)
(4,166
)
Other income (expense)
—
41
20
44
Total other income (expense), net
(93
)
342
(492
)
(821
)
Net loss
$
(15,159
)
$
(21,298
)
$
(54,819
)
$
(71,004
)
Net loss per share, basic and diluted
$
(7.20
)
$
(12.98
)
$
(28.45
)
$
(43.77
)
Weighted average shares outstanding, basic
and diluted
2,106,707
1,641,308
1,927,049
1,622,316
MOMENTUS INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands)
September 30,
2023
December 31,
2022
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents
9,750
61,094
Restricted cash, current
394
1,007
Accounts receivable
44
—
Insurance receivable
500
4,000
Prepaids and other current assets
10,469
10,173
Total current assets
21,157
76,274
Property, machinery and equipment, net
3,353
4,016
Intangible assets, net
329
337
Operating right-of-use asset
5,629
6,441
Deferred offering costs
583
331
Restricted cash, non-current
370
312
Other non-current assets
2,068
4,712
Total assets
$
33,489
$
92,423
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
2,517
$
2,239
Accrued liabilities
7,422
8,026
Loan payable, current
5,740
11,627
Contract liabilities, current
1,162
1,654
Operating lease liability, current
1,239
1,153
Stock repurchase liability
—
10,000
Litigation settlement contingency
5,000
8,500
Other current liabilities
22
27
Total current liabilities
23,102
43,226
Contract liabilities, non-current
420
1,026
Loan Payable, non-current
—
2,404
Warrant liability
5
564
Operating lease liability, non-current
5,187
6,131
Other non-current liabilities
483
465
Total non-current liabilities
6,095
10,590
Total liabilities
29,197
53,816
Commitments and Contingencies (Note
12)
Stockholders’ equity:
Common stock, $0.00001 par value;
250,000,000 shares authorized and 2,700,909 issued and outstanding
as of September 30, 2023; 250,000,000 shares authorized and
1,688,824 issued and outstanding as of December 31, 2022
—
—
Additional paid-in capital
363,238
342,734
Accumulated deficit
(358,946
)
(304,127
)
Total stockholders’ equity
4,292
38,607
Total liabilities and stockholders’
equity
$
33,489
$
92,423
MOMENTUS INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS (UNAUDITED)
(in thousands)
Nine Months Ended
September 30,
2023
2022
Cash flows from operating
activities:
Net loss
$
(54,819
)
$
(71,004
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
667
831
Amortization of debt discount and issuance
costs
1,182
2,114
Amortization of right-of-use asset
812
889
Change in fair value of warrant
liability
(559
)
(3,382
)
Loss on disposal of property, machinery,
equipment and intangible assets
17
121
Stock-based compensation expense
6,453
8,564
Non-cash consulting expense
112
—
Changes in operating assets and
liabilities:
Accounts receivable
(44
)
—
Prepaids and other current assets
(297
)
(1,571
)
Other non-current assets
2,644
(901
)
Accounts payable
278
(328
)
Accrued liabilities
(610
)
(1,873
)
Accrued interest
118
92
Other current liabilities
(2
)
(4,967
)
Contract liabilities
(1,098
)
851
Lease liability
(859
)
(908
)
Other non-current liabilities
18
(23
)
Net cash used in operating
activities
(45,987
)
(71,495
)
Cash flows from investing
activities:
Purchases of property, machinery and
equipment
(94
)
(618
)
Proceeds from sale of property, machinery
and equipment
113
7
Purchases of intangible assets
(26
)
(30
)
Net cash used in investing
activities
(7
)
(641
)
Cash flows from financing
activities:
Proceeds from exercise of stock
options
130
517
Proceeds from employee stock purchase
plan
31
190
Repurchase of Section 16 Officer shares
for tax coverage exchange
(87
)
(265
)
Principal payments on loan payable
(9,592
)
(6,686
)
Payment of deferred offering costs
(252
)
—
Payment for repurchase of common
shares
(10,000
)
—
Proceeds from issuance of common stock and
related warrants
15,000
—
Payments for issuance costs related to
common stock and related warrants
(1,135
)
—
Net cash used in financing
activities
(5,905
)
(6,244
)
Decrease in cash, cash equivalents and
restricted cash
(51,899
)
(78,380
)
Cash, cash equivalents and restricted
cash, beginning of period
62,413
160,547
Cash, cash equivalents and restricted
cash, end of period
$
10,514
$
82,167
Supplemental disclosure of non-cash
investing and financing activities
Purchases of intangible assets in accounts
payable and accrued expenses at period end
$
5
$
—
Issuance costs related to warrant
modification
$
648
$
—
Deferred offering costs in accounts
payable and accrued expenses at period end
$
—
$
238
Stock repurchase liability fair value
$
—
$
10,000
Supplemental disclosure of cash flow
information
Cash paid for interest
$
882
$
1,960
Use of Non-GAAP Financial Measures (unaudited)
This press release references certain non-GAAP financial
measures, including adjusted EBITDA, non-GAAP selling, general, and
administrative expense and non-GAAP research and development
expense. The Company defines adjusted EBITDA as earnings before
interest expense, taxes, depreciation and amortization, stock-based
compensation, and certain other items the Company believes are not
indicative of its core operating performance. The Company defines
non-GAAP selling, general, and administrative expenses and research
and development expenses as those respective GAAP amounts,
excluding stock-based compensation and non-recurring items not
indicative of core operating performance None of these non-GAAP
financial measures is a substitute for or superior to measures of
financial performance prepared in accordance with generally
accepted accounting principles in the United States (GAAP) and
should not be considered as an alternative to any other performance
measures derived in accordance with GAAP.
The Company believes that presenting these non-GAAP financial
measures provides useful supplemental information to investors
about the Company that is helpful in understanding and evaluating
its operating results, enhancing the overall understanding of its
past performance and future prospects, and allowing for greater
transparency with respect to key financial metrics used by its
management in financial and operational-decision making. However,
there are a number of limitations related to the use of non-GAAP
measures and their nearest GAAP equivalents. For example, other
companies may calculate non-GAAP measures differently, or may use
other measures to calculate their financial performance, and
therefore any non-GAAP measures the Company uses may not be
directly comparable to similarly titled measures of other
companies.
Quarterly adjusted EBITDA
A reconciliation of adjusted EBITDA to net loss for the three
months ended September 30, 2023, September 30, 2022, and June 30,
2023, is set forth below:
Three Months Ended
(in thousands)
September 30, 2023
September 30, 2022
June 30, 2023
Net loss
$
(15,159
)
$
(21,298
)
$
(18,835
)
Interest income
(216
)
(28
)
(357
)
Interest expense
530
1,261
732
Depreciation & amortization
215
253
223
EBITDA
(14,630
)
(19,812
)
(18,237
)
Change in fair value of warrant
liability
(221
)
(1,579
)
(451
)
Realized loss on disposal of assets
—
45
17
SEC and CFIUS legal expenses
86
279
177
Class action litigation legal expenses
132
621
24
Other non-recurring litigation legal
expense
959
447
756
SEC compliance costs
631
20
327
NSA compliance costs
226
487
398
Severance and other non-recurring
expenses1
69
90
—
Stock-based compensation
2,156
3,289
2,577
Adjusted EBITDA
$
(10,592
)
$
(16,113
)
$
(14,412
)
1 - Loss contingencies for certain severance agreements were
reversed when the Company determined they would not be signed and
paid
A reconciliation of selling, general, and administrative
expenses to non-GAAP selling, general, and administrative expenses
for the three months ended September 30, 2023, September 30, 2022,
and June 30, 2023, is set forth below:
Three Months Ended
(in thousands)
September 30, 2023
September 30, 2022
June 30, 2023
Selling, general, and administrative
expenses
$
9,294
$
11,184
$
10,007
Stock-based compensation
1,684
2,552
1,896
SEC and CFIUS legal expenses
86
279
177
Class action litigation legal expenses
132
621
24
Other non-recurring litigation legal
expense
959
447
756
SEC compliance costs
631
20
327
NSA compliance costs
226
487
398
Non-GAAP selling, general, administration
expenses
$
5,561
$
6,726
$
6,429
1 - Loss contingencies for certain severance agreements were
reversed when the Company determined they would not be signed and
paid
A reconciliation of research and development expenses to
non-GAAP research and development expenses for the three months
ended September 30, 2023, September 30, 2022, and June 30, 2023, is
set forth below:
Three Months Ended
(in thousands)
September 30, 2023
September 30, 2022
June 30, 2023
Research and development expenses
$
5,992
$
10,571
$
10,204
Stock-based compensation
472
737
681
Severance and non-recurring expenses1
53
38
—
Non-GAAP Research and development
expenses
$
5,467
$
9,796
$
9,523
1 - Loss contingencies for certain severance agreements were
reversed when the Company determined they would not be signed and
paid
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231114211782/en/
For media inquiries: press@momentus.space
For investor relations inquiries:
investors@momentus.space
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