Momentus Inc. Q2 FY2023 earnings call

Progress and Contracts - Growing interest from government and commercial customers with contracts expected in coming months, including a significant contract with the Space Development Agency and a hosted payload customer contract. - Operates two Vigoride orbital service vehicles in low-Earth orbit, with three launched in less than a year, deploying 15 customer satellites and providing hosted payload services. - Launched three orbital service vehicles from May 2022 to April 2023, demonstrating technology including environmentally friendly thruster. - Announced M-1000 satellite bus based on Vigoride, tailored for government and commercial customers with high power, flexibility, and low cost. - Vigoride 5 mission ongoing, Vigoride 6 mission deployed multiple satellites and had some CubeSat deployment issue due to human error but corrective actions taken. - Submitted proposals to U.S. government customers like Space Development Agency and Defense Innovation Unit, and signed contract with FOSSA Systems for hosted payload services.

In the second quarter, Momentus achieved its first million-dollar revenue quarter with $1.7 million in earnings. The Vigoride 6 mission's commercial deployments contributed to the $1.7 million revenue in Q2. The Vigoride Orbital Service Vehicle and M-1000 satellite bus are key product segments, with the M-1000 well-positioned in growing satellite bus markets.

Forward-looking Statements - Next mission planned for SpaceX Transporter-9 in November 2023 with payloads including satellites from SatRev, JINJUSat-1, and Lunasonde. - Aims to fly next Vigoride vehicle on SpaceX Transporter-10 mission in February 2024 with satellites requiring orbital delivery and hosted payloads. - Continues to work on reducing burn rate through headcount reduction and exploring strategic alternatives for raising capital.

Risks - Going concern determination as current cash balance unable to meet obligations for next 12 months, with projected equity financing not viewed as probable. - Dependence on successful execution of new business opportunities and capital raising efforts to sustain operations.

Q: Just kind of looking into the dynamic of the going concern issue versus revenue versus the burn rate, I am sure that is an equation you sit there solving every afternoon. If I am sort of following it, it looks like you booked all the revenue that was available from the Vigoride 5 and Vigoride 6 missions having deployed all the satellites. It looks to me like the next revenue opportunity would be the November mission. Is that fair?

A: We have not totally finished recognizing revenue on V5, but we have completed revenue associated with V6. We do have some residual revenue to be recognized relating to the support of the Caltech mission, which we are currently still hosting. Our next, and as you know, that next revenue event would be the Transporter 9 mission around the October timeframe.

Q: And just following up on that mission, is all the capacity booked for that launch? And how many deployments would full capacity represent?

A: In November, we will launch at least three satellites mentioned and potentially one additional one that we are working with a customer on. The three satellites would be from SatRev in Poland, also one called JINJUSat-1 from CONTEC in South Korea, and a third one from Lunasonde, which is a U.S.-based company. And then, as I said, there is the potential for a fourth satellite, but that has not yet been confirmed.

Q: So, again, just sort of solving that equation of burn rate versus the cash on hand, you mentioned that you've taken a lot of steps to reduce the burn rate. Would you feel comfortable giving us any kind of a figure to work with or just lower as far as you wanted to go?

A: I'd say lower is probably about as far as we want to go. I think if you wanted to think about the subsequent quarter, definitely lower than our past quarter, right? We did that 30% reduction in headcount. And through the financials, you can get a sense that it wouldn't be a full 30% across the board with respect to cash on the quarter, but you can view it as we're pushing on it fairly hard to be able to get as much runaway as we can out of that.