Momentus Financial Report Summary and Analysis

Overview of Financial Performance

Momentus is a company that provides satellite and cargo delivery, payload hosting, and in-orbit servicing options to customers in the aerospace industry. During the quarter ended March 31, 2024, the company recognized $0.5 million in revenue, primarily from the completion of performance obligations on engineering services for the U.S. government and some forfeited customer deposits.

As of March 31, 2024, Momentus had signed contracts with customers and collected approximately $1.1 million in customer deposits, $0.6 million of which are recorded as non-current contract liabilities. The company estimates variable consideration at the most likely amount, which is included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur.

Revenue and Profit Trends

Momentus’ revenue during the quarter ended March 31, 2024 was $0.5 million, a significant increase from the $22,000 recognized in the same period in 2023. This increase was primarily driven by the completion of performance obligations on engineering services for the U.S. government and some forfeited customer deposits.

However, the company continued to incur net losses, with a net loss of $8.3 million for the quarter ended March 31, 2024, compared to a net loss of $20.8 million in the same period in 2023. This decrease in net loss was primarily due to reductions in research and development expenses, selling, general and administrative expenses, and other expenses.

Strengths and Weaknesses

Strengths:

• Established relationships with customers in the aerospace industry
• Successful launch and deployment of customer satellites
• Demonstrated capabilities in satellite and cargo delivery, payload hosting, and in-orbit servicing

Weaknesses:

• Continued net losses and reliance on external funding to finance operations
• Uncertainty around the company’s ability to continue as a going concern
• Dependence on the successful development and validation of its technology in space

Outlook and Future Prospects

Momentus faces significant challenges in its ability to continue as a going concern, as it has not yet generated sufficient revenue to finance its operations. The company will need to raise substantial additional capital in the near term to fund its business plan and operating strategy.

If Momentus is able to secure the necessary funding, it believes that the growth of the satellite constellations market may drive demand for its satellites, satellite buses, and related technologies. However, the company’s future success is heavily dependent on its ability to fully develop and validate its technology in space, as well as its ability to execute on its business plan.

Overall, Momentus’ financial performance during the quarter ended March 31, 2024 reflects the company’s ongoing challenges in transitioning from a development-stage to a revenue-generating business. The company’s ability to secure additional funding and successfully execute its business plan will be crucial in determining its long-term prospects.