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Momentus Inc. Announces Second Quarter 2022 Financial Results

Momentus Inc. (NASDAQ: MNTS) (“Momentus” or the "Company”), a U.S. commercial space company that plans to offer transportation and other in-space infrastructure services, today announced its financial results for the second quarter ended June 30, 2022.

"We continue to make progress toward our goal of being a key provider of transportation and infrastructure services to the emerging new space economy," said Momentus Chief Executive John Rood. “During the second quarter, we retired regulatory risk, cleared all remaining licensing hurdles, and flew our inaugural demonstration mission with our Vigoride vehicle. Since the last earnings call, we have also deployed seven customer satellites in low Earth orbit (six from Vigoride 3, one from a third party deployer). We have learned a great deal from this first launch and from observing how the Vigoride orbital transfer vehicle performed in space during its initial demonstration mission. We plan to incorporate improvements into future Vigoride vehicles, beginning with the one that we plan to fly during our next mission this fall.”

Second Quarter 2022 Business and Financial Highlights:

  • Retired regulatory risk, including securing all necessary government licenses and approvals from the FAA, FCC, and NOAA to launch our first orbital transfer vehicle, Vigoride 3, to space.
  • Completed assembly and ground-testing of the Vigoride 3 spacecraft, integrated customer payloads, and shipped it to the launch site at Cape Canaveral, Florida.
  • Launched Vigoride 3 to low earth orbit onboard SpaceX’s Transporter-5 mission.
  • Confirmed that two customer satellites were deployed from Vigoride 3 during the second quarter of 2022. An additional four customer satellites have since been deployed in the third quarter from Vigoride 3, for a total of six, thus far.
  • Deployed a customer satellite from a third-party deployer system on the same SpaceX rocket, which is part of the Company’s effort to explore the adjacent ride-share aggregation market segment, bringing to seven the total number of satellites deployed recently by the company in low Earth orbit (six from Vigoride 3, one from a third party deployer).
  • Identified root cause of all the anomalies experienced on the Vigoride 3 mission and are on track to implement corrective actions on the next Vigoride mission scheduled for this fall.
  • Developed a plan to reduce expected cash burn rate and extend cash runway through the end of 2023. The Company plans to reduce its cash burn below previously-planned levels by reducing overhead spending and delaying longer-dated research and development projects. The company plans to continue development of the Vigoride vehicle, including planned launches on SpaceX rideshare missions targeted for November 2022, February 2023, and May 2023.
  • Added key talent with impressive and long careers that will provide a competitive advantage. Key additions included:
    • Charles Chase, Vice President of Engineering
    • Nick Zello, Vice President of Manufacturing and Operations
    • Gary Bartmann, Vice President of Supply Chain
    • Krishnan J. Anand, Vice President of Program Management

Note: Krishnan Anand’s hiring occurred after the close of the second quarter of 2022.

Conference Call Information

Momentus Inc. will host a conference call to discuss the results today, August 11, 2022, at 12:00 p.m. Eastern Time (9:00 a.m. Pacific Time). To access the conference call, participants should dial +1 (800) 715-9871 and enter the conference ID number 3677381. 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 plans to offer 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.

Forward-Looking Statements

This press release contains certain statements which may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding Momentus or its management team’s expectations, hopes, beliefs, intentions or strategies regarding the future, projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, and are not guarantees of future performance. The words “may,” “will,” “anticipate,” “believe,” “expect,” “continue,” “could,” “estimate,” “future,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “aim,” “strive,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions.

Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of Momentus’ control. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: the ability of the Company to obtain licenses and government approvals for its missions, which are essential to its operations; the ability of the Company to effectively market and sell satellite transport services and planned in-orbit services; the ability of the Company to protect its intellectual property and trade secrets; the development of markets for satellite transport and in-orbit services; the ability of the Company to develop, test and validate its technology, including its water plasma propulsion technology; delays or impediments that the Company may face in the development, manufacture and deployment of next generation satellite transport systems; the ability of the Company to convert backlog or inbound inquiries into revenue; changes in applicable laws or regulations and extensive and evolving government regulations that impact operations and business, including export control license requirements; the ability to attract or maintain a qualified workforce with the required security clearances and requisite skills; product service or product or launch failures or delays that could lead customers to use competitors’ services; investigations, claims, disputes, enforcement actions, litigation and/or other regulatory or legal proceedings; the effects of the COVID-19 pandemic on the Company’s business; the Company’s ability to comply with the terms of its National Security Agreement and any related compliance measures instituted by the director who was approved by the CFIUS Monitoring Agencies (the “Security Director”); the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; and/or other risks and uncertainties. These are only some of the factors that may affect the forward-looking statements contained in this press release. For a discussion identifying additional important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, see the company’s filings with the U.S. Securities and Exchange Commission including, but not limited to, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and subsequent quarterly reports on Form 10-Q. The company’s filings may be accessed through the Investor Relations page of its website, investor.momentus.space, or through the website maintained by the SEC at www.sec.gov. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

Second Quarter 2022 Financial Results

MOMENTUS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share data)

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2022

 

2021

 

2022

 

2021

Service revenue1

$

50

 

 

$

 

 

$

50

 

 

$

130

 

Cost of revenue2

 

12

 

 

 

 

 

 

12

 

 

 

48

 

Gross margin

 

38

 

 

 

 

 

 

38

 

 

 

82

 

Operating expenses:

 

 

 

 

 

 

 

Research and development expenses

 

10,896

 

 

 

20,794

 

 

 

20,867

 

 

 

30,700

 

Selling, general and administrative expenses

 

12,861

 

 

 

9,740

 

 

 

27,714

 

 

 

23,744

 

Total operating expenses

 

23,757

 

 

 

30,534

 

 

 

48,581

 

 

 

54,445

 

Loss from operations

 

(23,719

)

 

 

(30,534

)

 

 

(48,543

)

 

 

(54,363

)

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

Decrease (increase) in fair value of SAFE notes

 

 

 

 

100,803

 

 

 

 

 

 

182,367

 

Decrease (increase) in fair value of warrants

 

2,254

 

 

 

4,454

 

 

 

1,803

 

 

 

12,537

 

Realized loss on disposal of asset

 

1

 

 

 

 

 

 

(69

)

 

 

 

Interest income

 

5

 

 

 

1

 

 

 

5

 

 

 

2

 

Interest expense

 

(1,413

)

 

 

(3,389

)

 

 

(2,905

)

 

 

(4,357

)

SEC settlement

 

 

 

 

(7,000

)

 

 

 

 

 

(7,000

)

Other income (expense)

 

 

 

 

(8

)

 

 

3

 

 

 

(187

)

Total other income (expense)

 

847

 

 

 

94,861

 

 

 

(1,163

)

 

 

183,362

 

Income (loss) before income taxes

 

(22,872

)

 

 

64,327

 

 

 

(49,706

)

 

 

128,999

 

Income tax provision

 

 

 

 

1

 

 

 

 

 

 

1

 

Net income (loss)

$

(22,872

)

 

$

64,327

 

 

$

(49,706

)

 

$

128,998

 

Net income (loss) per share, basic

$

(0.28

)

 

$

1.25

 

 

$

(0.62

)

 

$

2.36

 

Net income (loss) per share, fully diluted

$

(0.28

)

 

$

(0.59

)

 

$

(0.62

)

 

$

(0.90

)

Weighted average shares outstanding, basic

 

81,319,533

 

 

 

51,474,305

 

 

 

80,642,670

 

 

 

54,620,299

 

Weighted average shares outstanding, fully diluted

 

81,319,533

 

 

 

69,653,223

 

 

 

80,642,670

 

 

 

72,847,925

 

1 -

Prior year revenue recognized related to the cancellation of a customer contract, resulting in the forfeiture of a customer deposit

2 -

Prior year cost of revenue represents costs incurred related to one of the cancelled contracts.

MOMENTUS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

June 30,

2022

 

December 31,

2021

 

 

 

 

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

109,052

 

 

$

160,036

 

Restricted cash, current

 

1,005

 

 

 

197

 

Prepaids and other current assets

 

7,517

 

 

 

9,431

 

Total current assets

 

117,574

 

 

 

169,664

 

Property, machinery and equipment, net

 

4,514

 

 

 

4,829

 

Intangible assets, net

 

720

 

 

 

349

 

Operating right-of-use asset

 

6,991

 

 

 

7,604

 

Restricted cash, non-current

 

325

 

 

 

314

 

Other non-current assets

 

3,650

 

 

 

3,065

 

Total assets

$

133,774

 

 

$

185,825

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)

 

 

 

Accounts payable

$

1,124

 

 

$

1,911

 

Accrued expenses

 

7,031

 

 

 

9,785

 

Loan payable, current

 

10,113

 

 

 

20,907

 

Contract liabilities, current

 

481

 

 

 

 

Operating lease liability, current

 

1,132

 

 

 

1,189

 

Share repurchase liability

 

5,780

 

 

 

 

Other current liabilities

 

5,043

 

 

 

5,075

 

Total current liabilities

 

30,704

 

 

 

38,867

 

Contract liabilities, non-current

 

1,206

 

 

 

1,554

 

Loan Payable, non-current

 

8,544

 

 

 

 

Warrant liability

 

3,945

 

 

 

5,749

 

Operating lease liability, non-current

 

6,716

 

 

 

7,284

 

Other non-current liabilities

 

454

 

 

 

483

 

Total non-current liabilities

 

20,865

 

 

 

15,070

 

Total liabilities

 

51,569

 

 

 

53,937

 

 

 

 

 

Shareholders’ equity (deficit):

 

 

 

Common stock, $0.00001 par value; 250,000,000 shares authorized and 83,264,832 issued and outstanding as of June 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

 

340,593

 

 

 

340,570

 

Accumulated deficit

 

(258,389

)

 

 

(208,683

)

Total shareholders’ deficit

 

82,205

 

 

 

131,888

 

Total Liabilities and Shareholders’ Deficit

$

133,774

 

 

$

185,825

 

MOMENTUS INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

Six Months Ended

June 30,

 

2022

 

2021

Cash flows from operating activities:

 

 

 

Net (loss) income

$

(49,706

)

 

$

128,998

 

Adjustments to reconcile net income (loss) to net cash used in operating activities:

 

 

 

Depreciation and amortization

 

578

 

 

 

448

 

Amortization of debt discount and issuance costs

 

1,462

 

 

 

3,357

 

Amortization of right-of-use asset

 

613

 

 

 

661

 

Decrease in fair value of warrants

 

(1,803

)

 

 

(12,537

)

Decrease in fair value of SAFE notes

 

 

 

 

(182,367

)

Impairment of prepaid launch costs

 

 

 

 

9,450

 

Loss on disposal of fixed asset

 

69

 

 

 

 

Stock-based compensation expense

 

5,247

 

 

 

8,112

 

Changes in operating assets and liabilities:

 

 

 

Prepaids and other current assets

 

1,914

 

 

 

(10,683

)

Other non-current assets

 

(585

)

 

 

(2,108

)

Accounts payable

 

(742

)

 

 

2,696

 

Accrued expenses

 

(2,555

)

 

 

2,454

 

Accrued interest

 

53

 

 

 

 

Other current liabilities

 

(6

)

 

 

2,043

 

Contract liabilities

 

133

 

 

 

450

 

Lease liability

 

(626

)

 

 

(50

)

Other non-current liabilities

 

11

 

 

 

5,000

 

Net cash used in operating activities

 

(45,943

)

 

 

(44,077

)

 

 

 

 

Cash flows from investing activities:

 

 

 

Purchase of property, machinery and equipment

 

(488

)

 

 

(2,185

)

Proceeds from sale of property, machinery and equipment

 

7

 

 

 

 

Purchases of intangible assets

 

(464

)

 

 

(3

)

Net cash used in investing activities

 

(945

)

 

 

(2,187

)

 

 

 

 

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

 

393

 

 

 

35

 

Proceeds from employee stock purchase plan

 

190

 

 

 

 

Repurchase of Section 16 Officer shares for tax coverage exchange

 

(97

)

 

 

 

Payment of loan payable

 

(3,763

)

 

 

 

Payment of debt issuance costs

 

 

 

 

(144

)

Payment of warrant issuance costs

 

 

 

 

(31

)

Net cash provided by financing activities

 

(3,277

)

 

 

55,713

 

 

 

 

 

(Decrease) increase in cash and cash equivalents

 

(50,165

)

 

 

9,449

 

Cash and cash equivalents, beginning of period

 

160,547

 

 

 

23,520

 

Cash and cash equivalents, end of period

$

110,382

 

 

$

32,968

 

 

 

 

 

Supplemental disclosure of non-cash investing and financing activities

 

 

 

Deferred offering costs in accounts payable and accrued expenses at period end

$

 

 

$

370

 

Deferred offering costs in loans payable at period end

$

 

 

$

1,500

 

Operating lease right-of-use assets in exchange for lease obligations

$

 

 

$

8,501

 

Share repurchase liability fair value

$

5,780

 

 

$

 

 

 

 

 

Supplemental disclosure of cash flow information

 

 

 

Cash paid for income taxes

$

 

 

$

1

 

Cash paid for interest

$

1,392

 

 

$

1,000

 

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 June 30, 2022, June 30, 2021, and March 31, 2022, is set forth below:

 

Three Months Ended

(in thousands)

June 30, 2022

 

June 30, 2021

 

March 31, 2022

Net Income (Loss)

$

(22,872

)

 

$

64,327

 

 

$

(26,836

)

Income tax expense

 

 

 

 

1

 

 

 

 

Interest income

 

(5

)

 

 

(1

)

 

 

 

Interest expense

 

1,413

 

 

 

3,389

 

 

 

1,492

 

Depreciation & amortization

 

284

 

 

 

249

 

 

 

294

 

EBITDA

 

(21,180

)

 

 

67,965

 

 

 

(25,049

)

(Decrease) increase in fair value of SAFE notes

 

 

 

 

(100,803

)

 

 

 

(Decrease) increase in fair value of warrants

 

(2,254

)

 

 

(4,454

)

 

 

451

 

Realized loss on disposal of assets

 

(1

)

 

 

 

 

 

70

 

SEC settlement

 

 

 

 

7,000

 

 

 

 

Prepaid launch deposit impairment

 

 

 

 

8,700

 

 

 

 

SEC and CFIUS legal expenses

 

505

 

 

 

3,514

 

 

 

795

 

Class action litigation legal expenses

 

600

 

 

 

 

 

 

795

 

Other litigation legal expenses

 

170

 

 

 

 

 

 

114

 

SEC compliance costs

 

36

 

 

 

 

 

 

2,135

 

NSA compliance costs

 

832

 

 

 

49

 

 

 

978

 

Severance and other related expenses1

 

7

 

 

 

156

 

 

 

350

 

Stock-based compensation

 

3,035

 

 

 

2,344

 

 

 

2,212

 

Adjusted EBITDA

$

(18,250

)

 

$

(15,529

)

 

$

(17,149

)

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 June 30, 2022, June 30, 2021, and March 31, 2022, is set forth below:

 

Three Months Ended

(in thousands)

June 30, 2022

 

June 30, 2021

 

March 31, 2022

Selling, general, and administrative expenses

$

12,861

 

$

9,740

 

$

14,853

Stock-based compensation

 

2,521

 

 

2,278

 

 

1,839

SEC and CFIUS legal expenses

 

505

 

 

3,514

 

 

795

Reduction in SEC and CFIUS legal expenses due to fee dispute resolution

 

 

 

 

 

Class action litigation legal expenses

 

600

 

 

 

 

795

Other litigation legal expenses

 

170

 

 

 

 

114

SEC compliance costs

 

36

 

 

 

 

2,135

NSA compliance costs

 

832

 

 

49

 

 

978

Severance and other related expenses

 

7

 

 

76

 

 

Non-GAAP selling, general, administration expenses

$

8,190

 

$

3,823

 

$

8,197

A reconciliation of research and development expenses to non-GAAP research and development expenses for the three months ended June 30, 2022, June 30, 2021, and March 31, 2022, is set forth below:

 

Three Months Ended

(in thousands)

June 30, 2022

 

June 30, 2021

 

March 31, 2022

Research and development expenses

$

10,896

 

$

20,794

 

$

9,971

Prepaid launch deposit impairment

 

 

 

8,700

 

 

Stock-based compensation

 

514

 

 

66

 

 

373

Severance and other related expenses

 

 

 

80

 

 

350

Non-GAAP Research and development expenses

$

10,382

 

$

11,948

 

$

9,248

 

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