Quarterly Report (Form 10-Q) for the quarterly period ended March 31, 2024

Press release · 10/15 21:01
Quarterly Report (Form 10-Q) for the quarterly period ended March 31, 2024

Quarterly Report (Form 10-Q) for the quarterly period ended March 31, 2024

Momentus Inc. filed its quarterly report for the period ended March 31, 2024, reporting a net loss of $23.4 million and a total revenue of $1.1 million. The company’s cash and cash equivalents decreased to $34.4 million from $44.1 million at the end of the previous quarter. Momentus Inc. reported a total of 25,540,419 shares of Class A common stock outstanding as of September 30, 2024. The company’s financial statements include condensed consolidated balance sheets, statements of operations, stockholders’ equity, and cash flows, as well as notes to the consolidated interim financial statements. The report also includes management’s discussion and analysis of the company’s financial condition and results of operations, as well as quantitative and qualitative disclosures about market risk and controls and procedures.

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.