Overview of Financial Performance

Momentus Inc. reported its financial results for the three months ended March 31, 2024. The key highlights are:

• Service revenue increased significantly to $0.5 million, up from $22,000 in the same period in 2023. This was primarily driven by the completion of performance obligations on engineering services for the U.S. government as well as some forfeited customer deposits.

• Gross profit also increased to $0.5 million, up from $22,000 in the prior year period.

• Operating expenses decreased by 57% to $8.8 million, down from $20.4 million in Q1 2023. This was due to reductions in research and development costs as well as selling, general and administrative expenses.

• Net loss decreased by 60% to $8.3 million, down from $20.8 million in the same period last year.

Revenue and Profit Trends

Momentus has seen a significant increase in service revenue, growing from $22,000 in Q1 2023 to $0.5 million in Q1 2024. This was primarily driven by the completion of performance obligations on engineering services for the U.S. government as well as some forfeited customer deposits.

Gross profit also increased to $0.5 million, up from $22,000 in the prior year period, reflecting the higher revenue.

However, the company continues to incur significant operating expenses, primarily in research and development as well as selling, general and administrative costs. R&D expenses decreased by 74% to $2.7 million, while SG&A expenses decreased by 40% to $6.2 million.

Overall, Momentus was able to reduce its net loss by 60% to $8.3 million in Q1 2024, down from $20.8 million in the same period last year.

Strengths and Weaknesses

Strengths:

• Increasing service revenue and gross profit, indicating progress in executing on customer contracts
• Significant reductions in operating expenses, demonstrating cost discipline

Weaknesses:

• Continued net losses, indicating the business model is not yet profitable
• Reliance on external funding to finance operations, raising going concern issues

Outlook

Momentus faces substantial doubt about its ability to continue as a going concern, as it has not yet generated sufficient revenue to fund its operations. The company will need to raise substantial additional capital in the near term to continue executing on its business plan and achieve profitability.

If Momentus is unable to raise the necessary capital, it may need to scale back or halt its operations, which could severely curtail or cease the company’s activities. The company’s future remains uncertain and dependent on its ability to secure additional financing.