press release

Aug. 11, 2022, 6:02 a.m. EDT

Momentus Inc. Announces Second Quarter 2022 Financial Results

SAN JOSE, Calif., (BUSINESS WIRE) -- Momentus Inc. /zigman2/quotes/208519272/composite MNTS -4.50% (“Momentus” or the "Company”), a U.S. commercial space company that plans to offer transportation and other in-space infrastructure services, today announced its financial results for the second quarter ended June 30, 2022.

"We continue to make progress toward our goal of being a key provider of transportation and infrastructure services to the emerging new space economy," said Momentus Chief Executive John Rood. “During the second quarter, we retired regulatory risk, cleared all remaining licensing hurdles, and flew our inaugural demonstration mission with our Vigoride vehicle. Since the last earnings call, we have also deployed seven customer satellites in low Earth orbit (six from Vigoride 3, one from a third party deployer). We have learned a great deal from this first launch and from observing how the Vigoride orbital transfer vehicle performed in space during its initial demonstration mission. We plan to incorporate improvements into future Vigoride vehicles, beginning with the one that we plan to fly during our next mission this fall.”

Second Quarter 2022 Business and Financial Highlights:

  • Retired regulatory risk, including securing all necessary government licenses and approvals from the FAA, FCC, and NOAA to launch our first orbital transfer vehicle, Vigoride 3, to space.

  • Completed assembly and ground-testing of the Vigoride 3 spacecraft, integrated customer payloads, and shipped it to the launch site at Cape Canaveral, Florida.

  • Launched Vigoride 3 to low earth orbit onboard SpaceX’s Transporter-5 mission.

  • Confirmed that two customer satellites were deployed from Vigoride 3 during the second quarter of 2022. An additional four customer satellites have since been deployed in the third quarter from Vigoride 3, for a total of six, thus far.

  • Deployed a customer satellite from a third-party deployer system on the same SpaceX rocket, which is part of the Company’s effort to explore the adjacent ride-share aggregation market segment, bringing to seven the total number of satellites deployed recently by the company in low Earth orbit (six from Vigoride 3, one from a third party deployer).

  • Identified root cause of all the anomalies experienced on the Vigoride 3 mission and are on track to implement corrective actions on the next Vigoride mission scheduled for this fall.

  • Developed a plan to reduce expected cash burn rate and extend cash runway through the end of 2023. The Company plans to reduce its cash burn below previously-planned levels by reducing overhead spending and delaying longer-dated research and development projects. The company plans to continue development of the Vigoride vehicle, including planned launches on SpaceX rideshare missions targeted for November 2022, February 2023, and May 2023.

  • Added key talent with impressive and long careers that will provide a competitive advantage. Key additions included:

Note: Krishnan Anand’s hiring occurred after the close of the second quarter of 2022.

Conference Call Information

Momentus Inc. will host a conference call to discuss the results today, August 11, 2022, at 12:00 p.m. Eastern Time (9:00 a.m. Pacific Time). To access the conference call, participants should dial +1 (800) 715-9871 and enter the conference ID number 3677381. 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/events-and-presentations . 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 plans to offer in-space infrastructure services, including in-space transportation, hosted payloads and in-orbit services. Momentus believes it can make new ways of operating in space possible with its planned in-space transfer and service vehicles that will be powered by an innovative water plasma-based propulsion system that is under development.

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 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 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 effects of the COVID-19 pandemic on the Company’s business; 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 “Security Director”); 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, 2021 and subsequent quarterly reports on Form 10-Q. The company’s filings may be accessed through the Investor Relations page of its website, investor.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.

Second Quarter 2022 Financial Results
MOMENTUS INC.
  Three Months Ended
June 30,
  Six Months Ended
  2022   2021   2022   2021
Service revenue [1] $ 50     $     $ 50     $ 130  
Cost of revenue [2]   12             12       48  
Gross margin   38             38       82  
Operating expenses:              
Research and development expenses   10,896       20,794       20,867       30,700  
Selling, general and administrative expenses   12,861       9,740       27,714       23,744  
Total operating expenses   23,757       30,534       48,581       54,445  
Loss from operations   (23,719 )     (30,534 )     (48,543 )     (54,363 )
               
Other income (expense):              
Decrease (increase) in fair value of SAFE notes         100,803             182,367  
Decrease (increase) in fair value of warrants   2,254       4,454       1,803       12,537  
Realized loss on disposal of asset   1             (69 )      
Interest income   5       1       5       2  
Interest expense   (1,413 )     (3,389 )     (2,905 )     (4,357 )
SEC settlement         (7,000 )           (7,000 )
Other income (expense)         (8 )     3       (187 )
Total other income (expense)   847       94,861       (1,163 )     183,362  
Income (loss) before income taxes   (22,872 )     64,327       (49,706 )     128,999  
Income tax provision         1             1  
Net income (loss) $ (22,872 )   $ 64,327     $ (49,706 )   $ 128,998  
Net income (loss) per share, basic $ (0.28 )   $ 1.25     $ (0.62 )   $ 2.36  
Net income (loss) per share, fully diluted $ (0.28 )   $ (0.59 )   $ (0.62 )   $ (0.90 )
Weighted average shares outstanding, basic   81,319,533       51,474,305       80,642,670       54,620,299  
Weighted average shares outstanding, fully diluted   81,319,533       69,653,223       80,642,670       72,847,925  
1 - Prior year revenue recognized related to the cancellation of a customer contract, resulting in the forfeiture of a customer deposit
2 - Prior year cost of revenue represents costs incurred related to one of the cancelled contracts.
MOMENTUS INC.
  June 30,
2022
  December 31,
2021
       
ASSETS      
Current assets:      
Cash and cash equivalents $ 109,052     $ 160,036  
Restricted cash, current   1,005       197  
Prepaids and other current assets   7,517       9,431  
Total current assets   117,574       169,664  
Property, machinery and equipment, net   4,514       4,829  
Intangible assets, net   720       349  
Operating right-of-use asset   6,991       7,604  
Restricted cash, non-current   325       314  
Other non-current assets   3,650       3,065  
Total assets $ 133,774     $ 185,825  
       
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)      
Accounts payable $ 1,124     $ 1,911  
Accrued expenses   7,031       9,785  
Loan payable, current   10,113       20,907  
Contract liabilities, current   481        
Operating lease liability, current   1,132       1,189  
Share repurchase liability   5,780        
Other current liabilities   5,043       5,075  
Total current liabilities   30,704       38,867  
Contract liabilities, non-current   1,206       1,554  
Loan Payable, non-current   8,544        
Warrant liability   3,945       5,749  
Operating lease liability, non-current   6,716       7,284  
Other non-current liabilities   454       483  
Total non-current liabilities   20,865       15,070  
Total liabilities   51,569       53,937  
       
Shareholders’ equity (deficit):      
Common stock, $0.00001 par value; 250,000,000 shares authorized and 83,264,832 issued and outstanding as of June 30, 2022; 250,000,000 shares authorized and 81,211,781 issued and outstanding as of December 31, 2021   1       1  
Additional paid-in capital   340,593       340,570  
Accumulated deficit   (258,389 )     (208,683 )
Total shareholders’ deficit   82,205       131,888  
Total Liabilities and Shareholders’ Deficit $ 133,774     $ 185,825  
MOMENTUS INC.
  Six Months Ended
June 30,
  2022   2021
Cash flows from operating activities:      
Net (loss) income $ (49,706 )   $ 128,998  
Adjustments to reconcile net income (loss) to net cash used in operating activities:      
Depreciation and amortization   578       448  
Amortization of debt discount and issuance costs   1,462       3,357  
Amortization of right-of-use asset   613       661  
Decrease in fair value of warrants   (1,803 )     (12,537 )
Decrease in fair value of SAFE notes         (182,367 )
Impairment of prepaid launch costs         9,450  
Loss on disposal of fixed asset   69        
Stock-based compensation expense   5,247       8,112  
Changes in operating assets and liabilities:      
Prepaids and other current assets   1,914       (10,683 )
Other non-current assets   (585 )     (2,108 )
Accounts payable   (742 )     2,696  
Accrued expenses   (2,555 )     2,454  
Accrued interest   53        
Other current liabilities   (6 )     2,043  
Contract liabilities   133       450  
Lease liability   (626 )     (50 )
Other non-current liabilities   11       5,000  
Net cash used in operating activities   (45,943 )     (44,077 )
       
Cash flows from investing activities:      
Purchase of property, machinery and equipment   (488 )     (2,185 )
Proceeds from sale of property, machinery and equipment   7        
Purchases of intangible assets   (464 )     (3 )
Net cash used in investing activities   (945 )     (2,187 )
       
Cash flows from financing activities:      
Proceeds from issuance of SAFE notes         30,853  
Proceeds from issuance of loan payable         25,000  
Proceeds from exercise of stock options   393       35  
Proceeds from employee stock purchase plan   190        
Repurchase of Section 16 Officer shares for tax coverage exchange   (97 )      
Payment of loan payable   (3,763 )      
Payment of debt issuance costs         (144 )
Payment of warrant issuance costs         (31 )
Net cash provided by financing activities   (3,277 )     55,713  
       
(Decrease) increase in cash and cash equivalents   (50,165 )     9,449  
Cash and cash equivalents, beginning of period   160,547       23,520  
Cash and cash equivalents, end of period $ 110,382     $ 32,968  
       
Supplemental disclosure of non-cash investing and financing activities      
Deferred offering costs in accounts payable and accrued expenses at period end $     $ 370  
Deferred offering costs in loans payable at period end $     $ 1,500  
Operating lease right-of-use assets in exchange for lease obligations $     $ 8,501  
Share repurchase liability fair value $ 5,780     $  
       
Supplemental disclosure of cash flow information      
Cash paid for income taxes $     $ 1  
Cash paid for interest $ 1,392     $ 1,000  

Reclassifications

Certain reclassifications have been made to the prior year’s financial statements to conform to the current year’s presentation. None of the reclassifications have changed the total assets, liabilities, shareholders’ deficit, income, expenses or net losses previously reported.

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 June 30, 2022, June 30, 2021, and March 31, 2022, is set forth below:

  Three Months Ended
(in thousands) June 30, 2022   June 30, 2021   March 31, 2022
Net Income (Loss) $ (22,872 )   $ 64,327     $ (26,836 )
Income tax expense         1        
Interest income   (5 )     (1 )      
Interest expense   1,413       3,389       1,492  
Depreciation & amortization   284       249       294  
EBITDA   (21,180 )     67,965       (25,049 )
(Decrease) increase in fair value of SAFE notes         (100,803 )      
(Decrease) increase in fair value of warrants   (2,254 )     (4,454 )     451  
Realized loss on disposal of assets   (1 )           70  
SEC settlement         7,000        
Prepaid launch deposit impairment         8,700        
SEC and CFIUS legal expenses   505       3,514       795  
Class action litigation legal expenses   600             795  
Other litigation legal expenses   170             114  
SEC compliance costs   36             2,135  
NSA compliance costs   832       49       978  
Severance and other related expenses [1]   7       156       350  
Stock-based compensation   3,035       2,344       2,212  
Adjusted EBITDA $ (18,250 )   $ (15,529 )   $ (17,149 )
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 June 30, 2022, June 30, 2021, and March 31, 2022, is set forth below:

  Three Months Ended
(in thousands) June 30, 2022   June 30, 2021   March 31, 2022
Selling, general, and administrative expenses $ 12,861   $ 9,740   $ 14,853
Stock-based compensation   2,521     2,278     1,839
SEC and CFIUS legal expenses   505     3,514     795
Reduction in SEC and CFIUS legal expenses due to fee dispute resolution          
Class action litigation legal expenses   600         795
Other litigation legal expenses   170         114
SEC compliance costs   36         2,135
NSA compliance costs   832     49     978
Severance and other related expenses   7     76    
Non-GAAP selling, general, administration expenses $ 8,190   $ 3,823   $ 8,197

A reconciliation of research and development expenses to non-GAAP research and development expenses for the three months ended June 30, 2022, June 30, 2021, and March 31, 2022, is set forth below:

  Three Months Ended
(in thousands) June 30, 2022   June 30, 2021   March 31, 2022
Research and development expenses $ 10,896   $ 20,794   $ 9,971
Prepaid launch deposit impairment       8,700    
Stock-based compensation   514     66     373
Severance and other related expenses       80     350
Non-GAAP Research and development expenses $ 10,382   $ 11,948   $ 9,248

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220810005843/en/

SOURCE: Momentus Inc.

For investor relations inquiries:
Darryl Genovesi
investors@momentus.space For media inquiries:
Jessica Pieczonka
press@momentus.space

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/zigman2/quotes/208519272/composite
US : U.S.: Nasdaq
$ 1.06
-0.05 -4.50%
Volume: 372,117
Dec. 6, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
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Market Cap
$93.41 million
Rev. per Employee
$1,517
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