Momentus Inc. reported significant financial developments in its 10-Q filing for the quarter ending March 31, 2024. The company achieved service revenue of $513,000, a substantial increase from $22,000 in the same period of 2023, marking a 2,232% rise. This revenue primarily stemmed from engineering services for U.S. government contracts and forfeited customer deposits. The gross profit mirrored this growth, also reaching $513,000 compared to $22,000 in the prior year.

Operating expenses saw a notable decline, totaling $8.84 million for the quarter, down from $20.39 million in Q1 2023, representing a 57% reduction. This decrease was largely attributed to lower research and development costs, which fell from $10.1 million to $2.7 million, and a reduction in selling, general, and administrative expenses from $10.3 million to $6.2 million. Consequently, the loss from operations improved to $(8.33 million) from $(20.37 million) year-over-year, while the net loss decreased to $(8.31 million) from $(20.83 million), reflecting a 60% improvement.

As of March 31, 2024, Momentus had total assets of $18.74 million, down from $20.65 million at the end of 2023. Total liabilities also decreased to $15.25 million from $17.46 million, contributing to an increase in stockholders' equity to $3.49 million from $3.19 million. The company’s cash and cash equivalents were reported at $1.67 million, a decline from $2.12 million at the end of 2023.

Momentus has been actively managing its workforce and has engaged in strategic financing activities, including the issuance of common stock and warrants, which generated approximately $8 million in gross proceeds during the quarter. The company also completed a reverse stock split of 1-for-50 in August 2023 to enhance its stock price.

The company continues to focus on its core operations in the commercial space sector, having launched four missions and deployed 17 customer satellites to date. Momentus is also developing the Vigoride 7, an upcoming orbital service vehicle, and has secured contracts with the U.S. government, including a recent Small Business Innovation Research contract.

Despite these advancements, Momentus faces challenges regarding its ability to continue as a going concern, primarily due to insufficient cash flow and the need for additional capital to fund operations and execute its business plan. The company has expressed substantial doubt about its ability to sustain operations over the next year without raising further funds.