Business Overview
Momentus Inc. is a U.S. commercial space company that offers a diverse portfolio of satellite buses, transportation, and other in-space infrastructure services. The company's comprehensive solutions cater to both commercial and government customers, positioning it as a key player in the rapidly evolving new space economy.
Founded in 2017, Momentus has established a strong track record of technological advancements and successful mission deployments. The company has launched four missions to date, deploying 17 customer satellites and providing hosted payload services. Notably, three of these missions involved the operation of the Vigoride Orbital Service Vehicle (OSV), which has accumulated significant flight heritage and demonstrated the company's capabilities in space.
In August 2021, Momentus achieved a significant milestone by completing a merger with Stable Road Acquisition Corp, a special purpose acquisition company (SPAC). This transaction provided the company with $247.3 million in gross proceeds, allowing Momentus to access public markets and secure additional funding to support its growth initiatives. However, prior to the merger, the company faced regulatory hurdles and concerns raised by the U.S. Department of Defense regarding foreign ownership and control.
To address these issues, Momentus and its co-founder, Mikhail Kokorich, submitted a joint notice to the Committee on Foreign Investment in the United States (CFIUS) for review of the historical acquisition of interests in the company. This review resulted in the National Security Agreement (NSA), which required Kokorich and other co-founders to divest their equity interests in the company. Despite these challenges, Momentus has demonstrated resilience and continued to make significant progress in its operations.
Product Offerings
Momentus' product offerings extend beyond its flagship Vigoride OSV, with the introduction of the M-1000 satellite bus. This versatile platform, which shares substantial commonality with the Vigoride, is designed to meet the growing demand for satellite bus services. The M-1000 bus offers a flexible and cost-effective solution for various mission requirements, integrating innovations to improve sensor capability, maneuverability, power, and overall performance.
The company's revenue stream is diversified, with a focus on last-mile satellite and cargo delivery transportation services, payload hosting, and in-orbit servicing options for customers primarily in the aerospace industry. Additionally, Momentus has secured contracts to provide engineering services to U.S. Government organizations, further diversifying its revenue sources.
Financials
Momentus' financial performance has been marked by significant investments in research and development, as the company continues to refine and enhance its technology. For the nine months ended September 30, 2024, the company reported a net loss of $23.09 million, with an accumulated deficit of $396.10 million as of the same date. While these figures highlight the ongoing challenges the company faces, Momentus' strategic focus on technological advancements and market expansion suggests a promising future.
For the most recent fiscal year (2023), Momentus reported revenue of $3.09 million, a net income of -$68.92 million, operating cash flow (OCF) of -$61.83 million, and free cash flow (FCF) of -$61.96 million. In the most recent quarter (Q3 2024), the company's financial performance showed some challenges, with revenue of $107,000, net income of -$7.76 million, OCF of -$4.50 million, and FCF of -$4.50 million. The year-over-year revenue growth was -68.4% compared to Q3 2023 revenue of $339,000.
The decrease in revenue, net income, OCF, and FCF in the most recent quarter compared to the prior year quarter was primarily due to lower service revenue from transportation and hosted payload services, as well as higher operating expenses for research and development and selling, general and administrative costs.
Momentus primarily sells its services in the United States, with 98.1% of its revenue in the first nine months of 2024 being derived domestically. The remaining 1.9% of revenue came from customers domiciled in foreign countries.
Liquidity
As of September 30, 2024, Momentus had $798,000 in cash and cash equivalents, along with $500,000 in restricted cash held as collateral for a letter of credit. The company's debt-to-equity ratio stood at -1.392, indicating a challenging financial position. In July 2024, Momentus entered into a $2.3 million secured convertible promissory note with Space Infrastructure Ventures, bearing 15% annual interest and maturing on September 1, 2025.
The company's current ratio and quick ratio both stood at 0.384, suggesting potential liquidity challenges in meeting short-term obligations. These financial metrics underscore the importance of Momentus' ongoing efforts to commercialize its technology and secure additional funding to support its operations and growth initiatives.
The new space economy is experiencing substantial growth, driven by advancements in launch capabilities, the proliferation of smaller satellites, and the emergence of new business models. Momentus is well-positioned to capitalize on these trends, as the need for versatile and cost-effective space transportation services, satellite buses, and in-orbit services continues to rise.
Key Milestones and Contracts
One key milestone for Momentus was its selection by NASA to provide launch services under the Venture-Class Acquisition of Dedicated and Rideshare (VADR) contract. This achievement highlights the company's technological capabilities and aligns with NASA's goals of promoting more affordable and accessible orbital activities.
Furthermore, Momentus has been awarded a contract from the U.S. Defense Department's Space Development Agency (SDA) for the Hybrid Acquisition for Proliferated LEO (HALO) program. This collaboration will enable the company to leverage its innovative technologies and deliver solutions to support the SDA's mission of deploying a constellation of satellites in low-Earth orbit.
Partnerships and Collaborations
The company's growth prospects are further bolstered by its strategic partnerships and collaborations. In September 2024, Momentus announced a Collaboration Agreement with Lodestar Space to integrate a robotic arm onto a Momentus Vigoride Orbital Service Vehicle, expanding the capabilities of its in-orbit service offerings.
Challenges and Outlook
Despite the challenges the company has faced, including legal proceedings and regulatory hurdles, Momentus has demonstrated resilience and a steadfast commitment to innovation. The company's recent selection for high-profile government contracts and strategic partnerships underscore its technological prowess and the market's confidence in its ability to deliver mission-critical solutions.
In February 2021, Momentus and its former CEO Mikhail Kokorich submitted a joint notice to the Committee on Foreign Investment in the United States (CFIUS) for review of the historical acquisition of interests in the Company by Mr. Kokorich, his wife, and entities they control. This led to a National Security Agreement (NSA) in June 2021, under which Mr. Kokorich and other co-founders divested their interests in the Company.
The company has also faced several shareholder lawsuits related to disclosures made in connection with its business combination with Stable Road Acquisition Corp in 2021. These include securities class actions and shareholder derivative lawsuits. Momentus has reached a settlement to resolve the securities class actions, demonstrating its commitment to addressing legacy issues and moving forward.
As Momentus continues to refine its technology, expand its product portfolio, and forge new partnerships, the company is poised to play a pivotal role in the burgeoning new space economy. The company's focus on developing and validating its proprietary technology, particularly its water plasma propulsion system, remains central to its strategy as it works to commercialize its transportation and satellite offerings.
However, it's important to note that Momentus faces substantial doubt about its ability to continue as a going concern due to its current cash position and ongoing operating losses. This underscores the critical nature of the company's efforts to secure additional funding and achieve commercial success in the near term.
Investors and industry observers will closely follow Momentus' progress as it navigates this dynamic and rapidly evolving market, with particular attention to its ability to translate its technological innovations into sustainable revenue growth and improved financial performance.