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

Press release · 10/26 07:50
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, or $0.92 per share, compared to a net loss of $15.4 million, or $0.61 per share, for the same period in the prior year. The company’s total revenue was $1.1 million, primarily from its space technology services, while its total operating expenses were $24.5 million, primarily due to research and development and general and administrative expenses. As of March 31, 2024, the company had cash and cash equivalents of $34.4 million and a working capital deficit of $14.1 million. The company’s management discussed its financial condition and results of operations, highlighting its focus on developing its space technology services and expanding its customer base.

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.

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, reporting 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. The company’s current level of cash and cash equivalents are not sufficient to fund commercial-scale production and sale of its services and products. To proceed with its business plan and operating strategy, Momentus will need to raise substantial additional capital to fund its operations.

The company believes that growth in the satellite constellations market may drive demand for its satellites, satellite buses, and technologies. However, the company’s ability to capitalize on this opportunity is dependent on its success in executing its business plan, including fully developing and validating its technology in space.

Overall, Momentus’ financial performance and outlook remain uncertain, with substantial doubt about the company’s ability to continue as a going concern. The company’s success will depend on its ability to raise additional capital and successfully develop and commercialize its technology in the highly competitive satellite and in-orbit servicing markets.