Constellations, Launch, New Space and more…

Momentus Space – Success in Space Not Reflected on Balance Sheet

By Doug Messier
Parabolic Arc
May 18, 2023
Filed under , , , ,
Momentus Space – Success in Space Not Reflected on Balance Sheet
Vigoride 3 space tug prepared for launch.

In-space transporter provider Momentus (Nasdaq: MNTS) has been having increasing success in orbit, but the progress was not reflected in first-quarter revenue as the company reported low revenue and dwindling cash reserves amid “substantial doubt” about the company’s survival.

Momentus reported revenue last week of only $22,000 in the first three months of the year. It did represent an improvement over the zero revenue the company reported for the first quarter of 2022. Momentus reported a net quarterly loss of $20.8 million, down from $26.8 million during the same period last year.

Momentus First Quarter 2023 Key Statistics
(In thousands of dollars except net loss per share)

First Quarter 2023First Quarter 2022
Gross Profit$22$0
Net Loss$20,825$26,834
Net Loss Per Share$0.24$0.34
Adjusted EBITDA Loss$20,231$25,048

The company had $38.6 million in cash and cash equivalents as of March 31, a decrease from $61.1 million on Dec. 31, 2022.

“In connection with the preparation of the condensed consolidated financial statements for the quarterly period ended March 31, 2023, management conducted such an evaluation and concluded there were conditions and events, considered in the aggregate, which raised substantial doubt as to the Company’s ability to continue as a going concern within twelve months after the date of the issuance of such financial statements,” the company said in its quarterly report.

“However, through management’s evaluation of our strategic business plan, management identified conditions and events that it believes mitigate and alleviate the substantial doubt about the Company’s ability to continue as a going concern,” the report continues. “Going forward, management expects to continue driving bookings and revenue growth, implement a plan management has developed to further reduce our operating expenses, and resolve certain outstanding legal matters.”

While Momentus has struggled on the ground, the company is reporting increasing success in Earth orbit. The company’s Vigoride 5 and Vigoride 6 space tugs were launched into orbit on SpaceX Falcon 9 rockets in January and April, respectively.

The company successfully tested its Microwave Electrothermal Thruster system on Vigoride 5, with firings lasting from 30 seconds to six minutes. As board member Chris Hadfield explained to SpaceRef, its thrusters are powered by distilled water.

“Momentus is showing its competitive advantages with flight heritage, early success with our pioneering water-based propellant engine, and a vehicle that can respond to customer needs with flexibility, speed, and a lower cost,” said Momentus CEO John Rood.

“We are now operating Vigoride-5 and Vigoride-6 concurrently, and both missions mark key milestones in demonstrating the value proposition of our technology. In less than a year we have launched three of our Vigoride Orbital Service Vehicles into space, deployed nine customer payloads, provided hosted payload services, demonstrated a new, differentiated breed of spacecraft engine, and continue to garner interest with commercial and government customers,” Rood added.

Momentus also said it had recently signed services agreements with:

  • Repeat customer FOSSA Systems, to place the company’s latest generation of spacecraft into low Earth orbit and to fly a picosat deployer capable of eight pocketqube satellites.
  • Hello Space, to provide hosted payload service for a deployer carrying four pocketqubes as part of the company’s planned 80-satellite constellation.
  • Lunasonde and SatRev, for the deployment of CubeSats on the Vigoride-7 mission scheduled for launch in October on SpaceX’s Transporter-9 rideshare flight.
  • An undisclosed company, for the first tranche of picosats for a 100-satellite planned constellation.

The Space Development Agency also selected Momentus for a Small Business Innovation Research Phase 2 award to develop new satellite transportation technology.

Momentus also said it signed launch agreements with SpaceX to fly aboard Transporter rideshare missions through the end of 2024.

Momentus Space further revealed it teamed with Astroscale to a NASA request for information concerning how to reboost the Hubble Space Telescope into a higher orbit.

Momentus’ Financials

Momentus Space’s first-quarter financials, as well as excerpted disclaimers from the company’s press release, are below.

(in thousands, except share data)

  Three Months Ended March 31, 2023  Three Months Ended March 31, 2022
Service revenue$22 $
Gross profit 22  
Operating expenses:     
Research and development expenses 10,119  9,971
Selling, general and administrative expenses 10,270  14,853
Total operating expenses 20,389  24,824
Loss from operations (20,367) (24,824)
Other income (expense):     
Change in fair value of warrant liability (112) (451)
Realized loss on disposal of asset   (70)
Interest income 555  
Interest expense (920) (1,492)
Litigation settlement, net   3
Other income 19  
Total other expense (458) (2,010)
Net loss$(20,825)$(26,834)
Net loss per share, basic$(0.24)$(0.34)
Net loss per share, fully diluted$(0.24)$(0.34)
Weighted average shares outstanding, basic 87,559,611  79,958,383
Weighted average shares outstanding, fully diluted 87,559,611  79,958,383

(in thousands)

 March 31, 2023 December 31, 2022
Current assets:     
Cash and cash equivalents$38,630 $61,094
Restricted cash, current 879  1,007
Insurance receivable 4,000  4,000
Prepaids and other current assets 9,524  10,173
Total current assets 53,033  76,274
Property, machinery and equipment, net 3,844  4,016
Intangible assets, net 340  337
Operating right-of-use asset 6,174  6,441
Deferred offering costs 418  331
Restricted cash, non-current 363  312
Other non-current assets 4,670  4,712
Total assets$68,842 $92,423
Accounts payable$2,092 $2,239
Accrued expenses 6,496  8,026
Loan payable, current 11,290  11,627
Contract liabilities, current 2,136  1,654
Operating lease liability, current 1,181  1,153
Stock repurchase liability   10,000
Litigation settlement contingency 8,500  8,500
Other current liabilities 36  27
Total current liabilities 31,731  43,226
Contract liabilities, non-current 1,026  1,026
Loan Payable, non-current 171  2,404
Warrant liability 676  564
Operating lease liability, non-current 5,821  6,131
Other non-current liabilities 471  465
Total non-current liabilities 8,165  10,590
Total liabilities 39,896  53,816
Commitment and Contingencies (Note 12)     
Stockholders’ equity:     
Common stock, $0.00001 par value; 250,000,000 shares authorized and 94,984,332 issued and outstanding as of March 31, 2023; 250,000,000 shares authorized and 84,441,153 issued and outstanding as of December 31, 2022 1  1
Additional paid-in capital 353,897  342,733
Accumulated deficit (324,952) (304,127)
Total stockholders’ equity 28,946  38,607
Total liabilities and stockholders’ equity$68,842 $92,423

(in thousands)

  Three Months Ended March 2023  Three Months Ended March 2022
Cash flows from operating activities:     
Net loss$(20,825)$(26,834)
Adjustments to reconcile net loss to net cash used in operating activities:     
Depreciation and amortization 229  294
Amortization of debt discount and issuance costs 492  742
Amortization of right-of-use asset 267  322
Change in fair value of warrant liability 112  451
Loss on disposal of property, machinery, equipment and intangible assets   70
Stock-based compensation expense 1,720  2,212
Issuance of common stock to non-employees 57  
Changes in operating assets and liabilities:     
Prepaids and other current assets 704  1,447
Other non-current assets 41  (2,685)
Accounts payable (211) 1,387
Accrued expenses (1,538) (273)
Accrued interest 39  13
Other current liabilities 12  14
Contract liabilities 481  100
Lease liability (282) (328
Other non-current liabilities 6  6
Net cash used in operating activities (18,696) (23,062)
Cash flows from investing activities:     
Purchases of property, machinery and equipment (43) (290)
Purchases of intangible assets (9) (231)
Net cash used in investing activities (52) (521)
Cash flows from financing activities:     
Proceeds from exercise of stock options 92  48
Repurchase of Section 16 Officer shares for tax coverage exchange (60) (59)
Principal payments on loan payable (3,102) (927)
Payment of deferred offering costs (23) 
Payment for repurchase of common shares (10,000) 
Proceeds from issuance of common stock and related warrants 10,000  
Payments for issuance costs related to common stock and related warrants (700) 
Net cash used in financing activities (3,793) (938)
Decrease in cash, cash equivalents and restricted cash (22,541) (24,521)
Cash, cash equivalents and restricted cash, beginning of period 62,413  160,547
Cash, cash equivalents and restricted cash, end of period$39,872 $136,026
Supplemental disclosure of non-cash investing and financing activities     
Purchases of intangibles assets in accounts payable and accrued expenses at period end$7 $
Deferred offering costs in accounts payable and accrued expenses at period end$64 $
Stock repurchase liability fair value$ $6,000
Supplemental disclosure of cash flow information     
Cash paid for income taxes$ $
Cash paid for interest$389 $750


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 March 31, 2023, March 31, 2022, and December 31, 2022, is set forth below:

(in thousands) Three Months Ended March 31, 2023  Three Months Ended March 31, 2022  Three Months Ended December 31, 2022
Net loss$(20,825) $(26,834)$(24,440)
Income tax expense    
Interest income (555)   (489)
Interest expense 920  1,492 1,096
Depreciation & amortization 229  294 259
EBITDA (20,231)  (25,048) (23,574)
Increase (decrease) in fair value of warrants 112  451 (1,803)
Realized loss on disposal of assets   70 54
Litigation settlement, net   (3) 4,500
Prepaid launch deposit impairment 514   
SEC and CFIUS legal expenses 85  795 161
Class action litigation legal expenses 110  795 755
Other non-recurring litigation legal expense 1,219  114 1,004
SEC compliance costs 22  2,135 76
NSA compliance costs 232  978 233
Severance and other non-recurring expenses1 122  350 
Stock-based compensation 1,720  2,212 3,044
Adjusted EBITDA$(16,095) $(17,151)$(15,550)

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 March 31, 2023, March 31, 2022, and December 31, 2022, is set forth below:

(in thousands) Three Months Ended March 31, 2023 Three Months Ended March 31, 2022   Three Months Ended December 31, 2022
Selling, general, and administrative expenses$10,270 $14,853 $10,929
Stock-based compensation 1,244  1,839  2,534
SEC and CFIUS legal expenses 85  795  161
Class action litigation legal expenses 110  795  755
Other non-recurring litigation legal expense 1,219  114  1,004
SEC compliance costs 22  2,135  76
NSA compliance costs 232  978  233
Severance and other non-recurring expenses1     
Non-GAAP selling, general, administration expenses$7,358 $8,197 $6,166

1 – Loss contingencies for certain severance agreements were reversed when the Company determined they would not be signed and paid

A reconciliation of research and development expenses to non-GAAP research and development expenses for the three months ended March 31, 2023, March 31, 2022, and December 31, 2022, is set forth below:

(in thousands) Three Months Ended March 31, 2023 Three Months Ended March 31, 2022  Three Months Ended December 31, 2022
Research and development expenses$10,119 $9,971 $10,283
Prepaid launch deposit impairment 514    
Stock-based compensation 476  373  510
Severance and non-recurring expenses1 122  350  
Non-GAAP Research and development expenses$9,007 $9,248 $9,773

1 – Loss contingencies for certain severance agreements were reversed when the Company determined they would not be signed and paid.

Leave a Reply