Momentus Inc. Q3 FY2022 earnings call

• Since de-SPAC, Momentus has strengthened engineering and operations, with a focus on improving spacecraft development processes. - Vigoride 3 deployed 7 of 9 customer satellites, and lessons learned from it are being applied to Vigoride 5, including enhanced solar array testing and improvements to the MET thruster. - Regulatory progress includes baseline compliance with national security agreements and streamlined licensing for future flights. - Signed contracts with NASA, LuxSpace, and Cyberspace, and invested in R&D for in-orbit satellite servicing and debris removal. - Implemented cost reduction plans to extend cash runway through 2023.

In the third quarter, Momentus recognized $129,000 of revenues primarily related to the Vigoride 3 continuing to deploy customer satellites, with gross profits of $115,000. As of October 31, 2022, cumulative signed contracts for backlog or potential revenue were approximately $43 million, but backlog declined by $12 million from Q2 due to options expiring unexercised. Non-restricted cash and cash equivalents ended the quarter at $82 million.

• Cash on hand is estimated to carry the company through the end of 2023, allowing at least 3 more Vigoride missions. - Ramping up efforts to win government business, with the NASA contract as an important step. - Planning to be opportunistic about raising capital, including potential issuances under the $50 million ATM program.

• Orbital debris poses a significant threat to space sustainability, and while the FCC has adopted a rule requiring satellite deorbiting, uncertainties remain. - Launch cost inflation due to macroeconomic factors and potential SpaceX pricing changes, though competition from other launch providers may mitigate this. - Dependence on regulatory environments and potential challenges in passing along increased launch costs to customers.

Q: Can you talk about the capabilities Momentus can offer related to the new FCC rule on satellite deorbiting and the market opportunity?

A: Momentus has been investing in rendezvous and proximity operations capabilities, including adding a robotic arm to Vigoride for deorbiting. The market opportunity is substantial with projected satellite deployments tripling by 2028, creating a multibillion-dollar addressable market for deorbiting services.

Q: What are initial thoughts on SpaceX transporter pricing changes?

A: Current launch agreements for near-term missions aren't affected by new SpaceX pricing. Once higher launch costs are experienced, efforts will be made to pass them to customers, and starship introduction may lower costs again with increased competition from other launch providers.

Q: What did Momentus learn from the early Vigoride mission and how is it applied to Vigoride 5?

A: Lessons from Vigoride 3 include mechanical issues with solar arrays. For Vigoride 5, resiliency and redundancy features are enhanced, such as autonomous deployment, subsystem redundancy, and enhanced testing including simulated zero-g solar array deployment.

Q: What primary endpoint objectives are on the Vigoride 5 mission?

A: Primary objectives include testing the Vigoride 5 and block 2.2 configuration, testing the upgraded MET thruster, demonstrating modularity for payload-propellant trade, and showcasing hosted payload capabilities with Caltech's payload to differentiate from competitors.