Momentus Inc. Q4 FY2022 earnings call

• Vigoride 3 launched in May 2022, placing 8 satellites. Vigoride 5 launched in January 2023, in LEO undergoing commissioning. Vigoride 6 on track for SpaceX Transporter-7 launch in April 2023.
• Hired Chris Kinman as Chief Commercial Officer to focus on government business. Improved IT, finance, and accounting systems. Settled a class action lawsuit and raised $10 million.
• TASSA solar array to be demoed on Vigoride 6, aiming to reduce manufacturing costs. Plan to test rendezvous and proximity operations (RPO) on Vigoride 7 for reusable vehicle development.
• Secured new contracts with CONTEC, CUAVA, FOSSA Systems, and repeat customers for satellite transportation services.

In 2022, Momentus recognized $299,000 in revenue compared to $330,000 in 2021. As of December 31, 2022, backlog was approximately $33 million, down from prior periods due to contract fulfillments, cancellations, and option expirations. Manufacturing and launch costs for Vigoride are currently accounted for as research and development expense, with expectations of gross margins improving once entering production.

• Plan to launch Vigoride 6 in April 2023. Intend to test the Microwave Electrothermal Thruster (MET) on Vigoride 5 in the coming weeks.
• Focus on growing business with U.S. government departments like DoD and NASA. Aim to develop a reusable Vigoride vehicle for cost savings and new in-orbit services.
• Anticipate market growth due to regulatory changes requiring satellite de-orbiting and a growing space economy estimated to reach over $1 trillion by 2040.

• Dependence on SpaceX for launches, with potential price increases for future contracts not under existing agreements.
• Competition from other space companies and risks associated with launch vehicle failures (e.g., recent failures of H3, Vega, etc.).
• Regulatory uncertainties and challenges in scaling operations to meet growing market demands.

Q: How does the forward sales pipeline look?

A: There is growing interest from commercial and government customers. We have new contracts with CONTEC, CUAVA, FOSSA Systems, and repeat customers, and are actively pursuing government business with DoD and NASA.

Q: Testing MET parameters and success criteria?

A: We will evaluate vaporization, startup sequence, telemetry, and performance modification of the MET. It will be used to change altitude and inclination of Vigoride 5.

Q: Reusable Vigoride tech upgrades and cost savings?

A: Vigoride 7 will test RPO for reusable vehicle development. A reusable Vigoride could reduce manufacturing and launch costs by enabling multiple missions with one vehicle.

Q: Impact of SpaceX rideshare price increase?

A: Existing signed launch contracts with SpaceX are protected, but future contracts will be affected by new pricing. However, Starship's introduction could reduce long-term launch costs.