In-space transportation company Momentus announced a net third quarter loss of $21.3 million on Tuesday as the company prepared for the launch of its next Vigoride space tug next month.
Momentus’ Q3 net loss was more than three times higher than the $5.6 million lost during the same period in 2021. The net loss for the first nine months was $71 million, down from $123.4 million for the first three quarters of last year. The company had cash and cash equivalents worth 81.6 million as of Sept. 30.
“Momentus placed five additional satellites in orbit during the quarter, successfully completed assembly and test of our next generation Orbital Service Vehicle (OSV), Vigoride 5, for launch on the SpaceX Transporter-6 mission targeted for next month, and advanced development of key technologies, such as our innovative and environmentally-friendly Microwave Electrothermal Thruster (MET) that uses water as a propellant,” said CEO John Rood.
Momentus’ Vigoride 5 orbital service vehicle (OSV) is being prepared for shipment to Florida for launch aboard SpaceX’s Transporter-6 rideshare mission in December.
“We’re excited to be supporting some truly innovative work that will advance the technology boundaries in space. Next month, we are planning for Vigoride 5 to begin a several month mission that includes a hosted payload from Caltech that aims to demonstrate the ability to collect solar energy in space and transmit it to Earth. Their aim is to provide a new ground-breaking and environmentally-friendly way to meet energy needs on Earth,” Rood said.
Momentus’ earnings release and financials are below.
Momentus Announces Third Quarter Financial Results
SAN JOSE, Calif.–(BUSINESS WIRE)–Nov. 8, 2022– Momentus Inc. (NASDAQ: MNTS) (“Momentus” or the “Company”), a U.S. commercial space company that offers transportation and other in-space infrastructure services, today announced its financial results for the third quarter ended September 30, 2022.
Momentus Chief Executive Officer John Rood made the following comments about the quarter:
“This was another eventful quarter at Momentus. Our talented engineering and operations team made solid progress during the quarter in our research and development efforts taking important strides toward our goal of being a leading provider of space infrastructure services that will enable the new space economy. Momentus placed five additional satellites in orbit during the quarter, successfully completed assembly and test of our next generation Orbital Service Vehicle (OSV), Vigoride 5, for launch on the SpaceX Transporter-6 mission targeted for next month, and advanced development of key technologies, such as our innovative and environmentally-friendly Microwave Electrothermal Thruster (MET) that uses water as a propellant.”
“We’re excited to be supporting some truly innovative work that will advance the technology boundaries in space. Next month, we are planning for Vigoride 5 to begin a several month mission that includes a hosted payload from Caltech that aims to demonstrate the ability to collect solar energy in space and transmit it to Earth. Their aim is to provide a new ground-breaking and environmentally-friendly way to meet energy needs on Earth.”
“Momentus is also thrilled to have signed a contract modification with NASA to transport two cube satellites that will perform cutting-edge research on weather events in space. This marks a big milestone in our efforts to grow into the Government market, which is an area we are prioritizing and see substantial opportunities for further growth.”
Third Quarter 2022 Business Highlights:
- The Company’s Vigoride 3 Orbital Service Vehicle (OSV) deployed five customer satellites during the third quarter of 2022, bringing the cumulative number of customer satellite deployments from Vigoride 3 to seven and the total number of Momentus customer satellites deployed from all platforms to eight.
- Applied lessons learned from the inaugural Vigoride mission to the next generation Vigoride 5 OSV in preparation for its planned launch on the SpaceX Transporter-6 mission, which is targeted for December 2022.
- Conducted an expanded ground-testing campaign on Vigoride 5 and its component systems, including simulated zero-gravity deployment testing of the solar array that will power Vigoride 5, and ground hot fire testing of Vigoride 5’s next-generation Microwave Electrothermal Thruster (MET) propulsion module.
- Completed ground vibration testing of the complete Vigoride 5 OSV to simulate the environment that it will experience on the SpaceX Falcon 9 launch vehicle. Subsequent to the close of the third quarter, Momentus completed thermal vacuum testing of Vigoride 5, which simulates the environment that it will encounter in space and concludes the overall Vigoride 5 environmental testing campaign.
- Subsequent to the close of the third quarter, integrated customer satellites onto Vigoride 5, completed its Flight Readiness Review and are preparing to ship the vehicle to its launch site in Cape Canaveral, FL.
- Signed a contract with a new commercial customer OHB LuxSpace to conduct a hosted payload mission.
- Signed a contract modification with NASA’s Kennedy Space Center for transportation of two satellites to custom orbits. This mission highlights the unique capabilities of Momentus’ OSV to transport a customer satellite from the launch vehicle’s standard drop-off orbit to its desired custom orbit. The NASA mission will perform cutting-edge research on space weather and Momentus is proud to provide the custom capabilities needed to support this work.
- Signed a Memorandum of Understanding with Sidus Space, under which Momentus will collaborate and provide transportation and payload-hosting services for its Lizziesat satellites.
- Put in place the framework for future capital raising efforts by filing an S-3 Universal Shelf Registration statement with a ceiling of $200M and launched a three-year, $50M At-The-Market Equity program.
Conference Call Information
Momentus Inc. will host a conference call to discuss the results today, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). To access the conference call, participants should dial +1 (800) 715-9871 and enter the conference ID number 3659704. 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 offers 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.
MOMENTUS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share data)
| Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2022 | Nine Months Ended September 30, 2021 | ||||||||
| Service revenue1 | $ | 129 | $ | 200 | $ | 179 | $ | 330 | |||
| Cost of revenue2 | 14 | (184) | 26 | (135) | |||||||
| Gross margin | 115 | 384 | 153 | 465 | |||||||
| Operating expenses: | |||||||||||
| Research and development expenses | 10,571 | 9,047 | 31,438 | 39,747 | |||||||
| Selling, general and administrative expenses | 11,184 | 12,057 | 38,898 | 35,802 | |||||||
| Total operating expenses | 21,755 | 21,104 | 70,336 | 75,549 | |||||||
| Loss from operations | (21,640) | (20,721) | (70,183) | (75,084) | |||||||
| Other income (expense): | |||||||||||
| Decrease (increase) in fair value of SAFE notes | — | 26,924 | — | 209,291 | |||||||
| Decrease (increase) in fair value of warrants | 1,579 | (2,712) | 3,382 | 9,826 | |||||||
| Realized loss on disposal of asset | (45) | — | (114) | — | |||||||
| Interest income | 28 | — | 33 | 2 | |||||||
| Interest expense | (1,261) | (4,328) | (4,166) | (8,685) | |||||||
| SEC settlement | — | — | — | (7,000) | |||||||
| Other income (expense)3 | 41 | (4,778) | 44 | (4,965) | |||||||
| Total other income (expense) | 342 | 15,107 | (821) | 198,469 | |||||||
| Income (loss) before income taxes | (21,298) | (5,614) | (71,004) | 123,385 | |||||||
| Income tax provision | — | — | — | 1 | |||||||
| Net income (loss) | $ | (21,298) | $ | (5,614) | $ | (71,004) | $ | 123,384 | |||
| Net income (loss) per share, basic | $ | (0.26) | $ | (0.09) | $ | (0.88) | $ | 2.06 | |||
| Net income ( loss) per share, fully diluted | $ | (0.26) | $ | (0.09) | $ | (0.88) | $ | 1.92 | |||
| Weighted average shares outstanding, basic | 82,066,795 | 60,589,566 | 81,122,541 | 59,873,199 | |||||||
| Weighted average shares outstanding, fully diluted | 82,066,795 | 60,589,566 | 81,122,541 | 64,232,537 |
1 – Prior year revenue recognized related to the cancellation of customer contracts, resulting in the forfeiture of customer deposits
2 – The reduction of cost of revenue represents the reversal of a contingency recorded during the prior year for loss contracts related to free slots on future missions. During the prior three months ended September 30, 2021, the Company signed amendments or terminations with those customers such that the services will no longer be free of charge. The reversed contingency was offset by costs incurred related to one of the cancelled contracts.
3 – Other expenses during the three months ended September 30, 2021 were due to the transaction costs allocated to the liability-classified warrant assumed in connection with the Business Combination.
MOMENTUS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
| September 30, 2022 | December 31, 2021 | ||||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 81,570 | $ | 160,036 | |
| Restricted cash, current | 287 | 197 | |||
| Prepaids and other current assets | 10,939 | 9,431 | |||
| Total current assets | 92,796 | 169,664 | |||
| Property, machinery and equipment, net | 4,333 | 4,829 | |||
| Intangible assets, net | 343 | 349 | |||
| Operating right-of-use asset | 6,715 | 7,604 | |||
| Deferred offering costs | 309 | — | |||
| Restricted cash, non-current | 310 | 314 | |||
| Other non-current assets | 3,894 | 3,065 | |||
| Total assets | $ | 108,700 | $ | 185,825 | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) | |||||
| Accounts payable | 1,596 | 1,911 | |||
| Accrued expenses | 7,881 | 9,785 | |||
| Loan payable, current | 10,844 | 20,907 | |||
| Contract liabilities, current | 1,226 | — | |||
| Operating lease liability, current | 1,140 | 1,189 | |||
| Stock repurchase liability | 10,000 | — | |||
| Other current liabilities | 110 | 5,075 | |||
| Total current liabilities | 32,797 | 38,867 | |||
| Contract liabilities, non-current | 1,178 | 1,554 | |||
| Loan Payable, non-current | 5,583 | — | |||
| Warrant liability | 2,367 | 5,749 | |||
| Operating lease liability, non-current | 6,425 | 7,284 | |||
| Other non-current liabilities | 459 | 483 | |||
| Total non-current liabilities | 16,012 | 15,070 | |||
| Total liabilities | 48,809 | 53,937 | |||
| Commitments and Contingencies (Note 12) | |||||
| Shareholders’ equity (deficit): | |||||
| Common stock, $0.00001 par value; 250,000,000 shares authorized and 83,984,571 issued and outstanding as of September 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 | 339,576 | 340,570 | |||
| Accumulated deficit | (279,686) | (208,683) | |||
| Total shareholders’ deficit | 59,891 | 131,888 | |||
| Total Liabilities and Shareholders’ Deficit | $ | 108,700 | $ | 185,825 |
MOMENTUS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
| Nine Months Ended 2022 | Nine Months Ended 2021 | ||||
| Cash flows from operating activities: | |||||
| Net (loss) income | $ | (71,004) | $ | 123,384 | |
| Adjustments to reconcile net (loss) income to net cash used in operating activities: | |||||
| Depreciation and amortization | 831 | 768 | |||
| Amortization of debt discount and issuance costs | 2,114 | 6,935 | |||
| Amortization of right-of-use asset | 889 | 971 | |||
| Decrease in fair value of warrants | (3,382) | (9,826) | |||
| Decrease in fair value of SAFE notes | — | (209,291) | |||
| Impairment of prepaid launch costs | — | 9,450 | |||
| Loss on disposal of fixed and intangible assets | 121 | — | |||
| Stock-based compensation expense | 8,564 | 11,187 | |||
| Changes in operating assets and liabilities: | |||||
| Prepaids and other current assets | (1,571) | (15,350) | |||
| Other non-current assets | (901) | (677) | |||
| Accounts payable | (328) | 4,357 | |||
| Accrued expenses | (1,873) | 4,546 | |||
| Accrued interest | 92 | — | |||
| Other current liabilities | (4,967) | 4,829 | |||
| Contract liabilities | 851 | (1,071) | |||
| Lease liability | (908) | (115) | |||
| Other non-current liabilities | (23) | 5 | |||
| Net cash used in operating activities | (71,495) | (69,897) | |||
| Cash flows from investing activities: | |||||
| Purchases of property, machinery and equipment | (618) | (2,835) | |||
| Proceeds from sale of property, machinery and equipment | 7 | — | |||
| Purchases of intangible assets | (30) | (16) | |||
| Net cash used in investing activities | (641) | (2,852) | |||
| 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 | 517 | 278 | |||
| Proceeds from employee stock purchase plan | 190 | — | |||
| Repurchase of Section 16 Officer shares for tax coverage exchange | (265) | — | |||
| Payment of loan payable | (6,686) | — | |||
| Payment of debt issuance costs | — | (144) | |||
| Payment of warrant issuance costs | — | (31) | |||
| Payment for repurchase of common shares | — | (40,000) | |||
| Proceeds from issuance of common shares in PIPE | — | 110,000 | |||
| Payments of issuances costs related to PIPE | — | (4,416) | |||
| Proceeds from issuance of common stock upon Business Combination | — | 128,167 | |||
| Payments for issuance costs related to Business Combination | — | (21,285) | |||
| Net cash (used in) provided by financing activities | (6,244) | 228,421 | |||
| (Decrease) Increase in cash, cash equivalents and restricted cash | (78,380) | 155,672 | |||
| Cash, cash equivalents and restricted cash, beginning of period | 160,547 | 23,520 | |||
| Cash, cash equivalents and restricted cash, end of period | $ | 82,167 | $ | 179,191 | |
| Supplemental disclosure of non-cash investing and financing activities | |||||
| Issuance of common stock related to conversion of SAFE notes | $ | — | $ | 136,001 | |
| Issuance of common stock related to exercise of warrant liabilities | $ | — | $ | 6,999 | |
| Reclassification of deferred offering costs | $ | — | $ | 2,610 | |
| Deferred offering costs in accounts payable and accrued expenses at period end | $ | 238 | $ | — | |
| Assumption of merger warrants liability | $ | — | $ | 31,225 | |
| Operating lease right-of-use assets in exchange for lease obligations | $ | — | $ | 8,501 | |
| Stock repurchase liability fair value | $ | 10,000 | $ | — | |
| Supplemental disclosure of cash flow information | |||||
| Cash paid for income taxes | $ | — | $ | 1 | |
| Cash paid for interest | $ | 1,960 | $ | 1,750 |
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 September 30, 2022, September 30, 2021, and June 30, 2022, is set forth below:
| (in thousands) | Three Months Ended September 30, 2022 | Three Months Ended September 30, 2021 | Three Months Ended June 30, 2022 | |||||
| Net Income (Loss) | $ | (21,298) | $ | (5,614) | $ | (22,872) | ||
| Interest income | (28) | — | (5) | |||||
| Interest expense | 1,261 | 4,328 | 1,413 | |||||
| Depreciation & amortization | 253 | 320 | 284 | |||||
| EBITDA | (19,812) | (966) | (21,180) | |||||
| (Decrease) increase in fair value of SAFE notes | — | (26,924) | — | |||||
| (Decrease) increase in fair value of warrants | (1,579) | 2,712 | (2,254) | |||||
| Realized loss on disposal of assets | 45 | — | (1) | |||||
| Transaction costs allocated to warrant liability | — | 4,780 | — | |||||
| SEC and CFIUS legal expenses | 279 | 2,188 | 505 | |||||
| Class action litigation legal expenses | 621 | 54 | 600 | |||||
| Other non-recurring litigation legal expense | 447 | — | 170 | |||||
| SEC compliance costs | 20 | — | 36 | |||||
| NSA compliance costs | 487 | 882 | 832 | |||||
| Severance and other non-recurring expenses1 | 90 | (7) | 103 | |||||
| Stock-based compensation | 3,289 | 3,075 | 3,035 | |||||
| Adjusted EBITDA | $ | (16,113) | $ | (14,206) | $ | (18,154) |
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 September 30, 2022, September 30, 2021, and June 30, 2022, is set forth below:
| (in thousands) | Three Months Ended September 30, 2022 | Three Months Ended September 30, 2021 | Three Months Ended June 30, 2022 | |||||
| Selling, general, and administrative expenses | $ | 11,184 | $ | 12,057 | $ | 12,861 | ||
| Stock-based compensation | 2,552 | 3,023 | 2,521 | |||||
| SEC and CFIUS legal expenses | 279 | 2,188 | 505 | |||||
| Class action litigation legal expenses | 621 | 54 | 600 | |||||
| Other non-recurring litigation legal expense | 447 | — | 170 | |||||
| SEC compliance costs | 20 | — | 36 | |||||
| NSA compliance costs | 487 | 882 | 832 | |||||
| Severance and other non-recurring expenses | 52 | — | 103 | |||||
| Non-GAAP selling, general, administration expenses | $ | 6,726 | $ | 5,910 | $ | 8,094 |
A reconciliation of research and development expenses to non-GAAP research and development expenses for the three months ended September 30, 2022, September 30, 2021, and June 30, 2022, is set forth below:
| (in thousands) | Three Months Ended September 30, 2022 | Three Months Ended September 30, 2021 | Three Months Ended June 30, 2022 | |||||
| Research and development expenses | $ | 10,571 | $ | 9,047 | $ | 10,896 | ||
| Prepaid launch deposit impairment | — | — | — | |||||
| Stock-based compensation | 737 | 52 | 514 | |||||
| Severance and other related expenses1 | 38 | (7) | — | |||||
| Non-GAAP Research and development expenses | $ | 9,796 | $ | 9,002 | $ | 10,382 |
1 – Loss contingencies for certain severance agreements were reversed when the Company determined they would not be signed and paid
