Momentus Reduces Workers by 30 %, Plans Reverse Inventory Break up as Money Dwindles

In-space transportation supplier Momentus stated this week it laid off 30 % of its workforce amid “substantial doubt” about its capacity to proceed to function over the subsequent 12 months as the corporate’s accrued deficit approached $350 million.

“Up to now the Firm stays closely centered on progress and continued improvement of its proprietary expertise, on account of this it has not generated ample revenues to supply money flows that allow the Firm to finance its operations internally and the Firm’s monetary place and working outcomes elevate substantial doubt in regards to the Firm’s capacity to proceed as a going concern,” Momentus stated in a regulatory filing with the Securities and Alternate Fee (SEC).

On August 14, Momentus reported $1.7 million in income and a internet lack of $39.3 million for the second quarter.

“The second quarter marks our first million-dollar quarter with the profitable deployment of economic prospects from our Vigoride-6 mission contributing to the popularity of $1.7 million in income,” CEO John Rood stated in a press launch. “We proceed to construct curiosity with prospects, notably within the Division of Protection, and we lately signed a contract with the House Growth Company to tailor our area automobiles for his or her future use.”

Momentus had solely $21.3 million in money and money equivalents when the second quarter ended on June 30.

“The Firm has been working to lift extra capital whereas pursuing and evaluating strategic alternate options. To that finish, the Firm engaged Deutsche Financial institution as its monetary advisor,” Momentus stated in its earnings launch.

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CFO Eric Williams stated the corporate had laid off 30 % of its employees with the intention to cut back bills. Neither he nor Rood commented on what number of staff had been let go or what number of stay. In its regulatory submitting, the corporate stated it laid off 18 staff on July 3.

“The Firm might should implement extra reductions in workforce if the Firm is unable to lift extra capital or in any other case fund the operations of the Firm,” Momentus stated.

The corporate plans to conduct a reverse inventory cut up with the intention to elevate its share value, Williams stated. The cut up would contain exchanging a lot of current shares for a smaller variety of new shares that may have the next worth.

In March, Nasdaq gave Momentus till September 18 to lift its inventory value to $1.00 or face being delisted. The corporate can attraction for an extra 180 days whether it is unable to take action by that date. The inventory was buying and selling at $0.28 on Friday (August 18).

Momentus stated it had an order backlog of $32 million on the finish of the second quarter. The corporate’s major income is from deploying satellites and internet hosting payloads on its Vigoride Orbital Service Automobiles (OSV). Vigorides have been deployed throughout SpaceX Transporter rideshare missions.

“Backlog consists of signed contracts spanning throughout 19 corporations in 13 international locations. Backlog accommodates agency orders in addition to choices, which permit prospects to opt-in to launches on shorter discover with out requiring a separate settlement,” the corporate stated in its SEC submitting. “On the whole, our prospects have the correct to cancel their contracts with the understanding that they may forfeit their deposits. If a buyer cancels a contract earlier than it’s required to pay non-refundable deposits, we might not obtain income from these orders, apart from an preliminary deposit which is paid on the time the contract is signed.”

Momentus stated it signed a contract to host payloads for returning buyer FOSSA House Programs starting in 2024. The corporate additionally announced it had obtained a contract from the House Growth Company to tailor its Vigoride OSV to assist a full vary of Division of Protection payloads and missions. The contract’s preliminary worth is $746,073 with an choice for an extra $1.2 million to cowl extra work.

“The pliability, payload capability, and energy accessible on the Vigoride Orbital Service Car (OSV) make it well-positioned to assist a spread of nationwide safety missions like area situational consciousness, surveillance, reconnaissance, and different priorities,” Rood stated within the earnings launch.

Earlier this month, Momentus unveiled its first industrial satellite tv for pc bus, the M-1000, in the course of the Small Satellite tv for pc Convention in Utah.

“We’re additionally proud to proceed to construct on our flight heritage with our M-1000 satellite tv for pc bus which is predicated on the Vigoride OSV and attracts on its flight heritage,” Rood added. “The M-1000 bus presents vital benefits to industrial and authorities prospects akin to its excessive energy – as much as 3 kW of peak energy – massive payload capability, versatile configuration, velocity from necessities to supply on-orbit, and low price. Momentus possesses the potential to fabricate satellite tv for pc buses just like the M-1000 at a speedy and scalable tempo.”

Momentus stated it submitted a bid to the House Growth Company to construct 50 satellites for the Tranche 2 Transporter Layer Alpha program. The corporate additionally submitted a proposal to the Protection Innovation Unit for funding to develop “novel approaches to operationally responsive area.”

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