Momentus Inc. (MNTS) — Q3 2023 Form 10-Q
Reporting period: Three and nine months ended September 30, 2023. The company provides satellite buses and in-space transportation, hosted-payload, and related services. Its Vigoride 5 and Vigoride 6 missions were operating in orbit; the company reported initial successful on-orbit testing of its water-based propulsion technology.
Financial performance and position
| Metric | Q3 2023 | Q3 2022 | Nine months 2023 | Nine months 2022 |
|---|---|---|---|---|
| Revenue | $0.339 million | $0.129 million | $2.066 million | $0.179 million |
| Gross profit | $0.220 million | $0.115 million | $1.559 million | $0.153 million |
| Gross margin | 64.9% | 89.1% | 75.5% | 85.5% |
| Operating expenses | $15.286 million | $21.755 million | $55.886 million | $70.336 million |
| Net loss | $15.159 million | $21.298 million | $54.819 million | $71.004 million |
- Q3 revenue included $0.284 million of hosted-payload services and $0.055 million of forfeited customer deposits; no transportation-services revenue was reported for the quarter. Nine-month revenue primarily reflected Vigoride 5 and 6 customer services.
- Operating expenses fell year over year, reflecting lower headcount, materials and compliance/legal costs. The company reported a Q3 basic and diluted loss per share of $7.20; per-share figures reflect the 1-for-50 reverse stock split.
- At September 30, cash and cash equivalents were $9.750 million, down from $61.094 million at December 31, 2022. Total current assets were $21.157 million and current liabilities $23.102 million. Total assets were $33.489 million, total liabilities $29.197 million, and stockholders’ equity $4.292 million.
- Operating cash use was $45.987 million for the first nine months, compared with $71.495 million in the prior-year period. Investing cash use was $0.007 million and financing cash use was $5.905 million. Cash, cash equivalents and restricted cash totaled $10.514 million at period-end.
- Term-loan carrying amount was $5.740 million, classified as current; the loan bears a fixed 12% stated rate and had scheduled principal payments through 2024. Operating lease liabilities totaled $6.426 million. Unconditional purchase obligations were $15.826 million.
Changes, outlook and significant risks
- Year-to-date revenue increased from $0.179 million to $2.066 million, while net loss narrowed by $16.185 million. The lower loss chiefly reflected reduced operating expenses and interest expense, partly offset by less favorable warrant fair-value changes.
- Going concern: Management concluded substantial doubt exists about the company’s ability to continue as a going concern for at least one year after issuance. It said available cash was insufficient to fund operations and commercial-scale production, and that substantial additional capital was needed. Failure to raise funds could require scaling back or halting operations.
- The company reported completing registered offerings in September and October 2023 that raised approximately $8 million net in total. Subsequent events also include a November warrant-inducement transaction generating approximately $6.5 million gross proceeds; these post-period transactions do not remove the filing’s stated going-concern uncertainty.
- No quantified earnings or revenue guidance was provided. Management described a planned Transporter-10 mission, targeted no earlier than March 2024, and said it had reserved launch capacity on SpaceX Transporter missions through 2024. Missions remain subject to spacecraft readiness, licenses and government approvals. Reusability is an objective as early as 2025, not a committed forecast.
- Key execution risks include limited flight history, prior Vigoride 3 communication and power anomalies, unproven commercial reliability of propulsion technology, customer cancellations, launch and regulatory dependencies, and the need for more capital. The company reduced its workforce by 18 employees in July 2023.
- The securities class-action settlement was $8.5 million. At September 30, $5.0 million remained recorded as a contingency; subsequent payments and insurance contributions brought the escrow balance to $5.0 million and the remaining contingency to $3.5 million as of the filing. Other disclosed matters include derivative and stockholder class actions, founder indemnification disputes, and a SAFE-note suit seeking damages exceeding $7.6 million. Outcomes remain uncertain.
Investor verification points
- Confirm the latest cash position, financing proceeds and expected cash requirements; the filing identifies substantial doubt and does not provide a clear runway estimate.
- Track whether additional capital is secured on viable terms and whether financing or warrant exercises materially dilute shareholders.
- Verify Vigoride mission performance, customer-payload delivery, propulsion reliability, and readiness and approvals for the next planned mission.
- Assess whether customer deposits, cancellable orders and backlog convert into recognized revenue and cash receipts.
- Monitor settlement payments, insurance recoveries, other litigation exposure, and compliance with the National Security Agreement.