Momentus Inc. Q3 FY2023 earnings call

• Momentus made progress in satellite buses and in-space transportation/support services, with six new contracts signed since mid-August and a bid submitted to the U.S. Space Force Space Development Agency. - Raised approximately $16.9 million in gross proceeds since the last earnings call, reduced operating expenses, and is navigating a shortening cash runway while evaluating strategic alternatives. - Operated two Vigoride orbital service vehicles in orbit, demonstrated core technology, tested microwave electro-thermal thruster engine and Tape Spring Solar Array, and planned the Vigoride 7 mission. - Launched the M-1000 Satellite Bus offering, which is well-positioned in a large and growing market.

In the third quarter of 2023, Momentus recognized $0.34 million in revenue, primarily from customer service milestones related to the Vigoride 5 launch. Operating expenses for the quarter were $15.3 million, which was a 30% year-over-year improvement. The company ended Q3 2023 with unrestricted cash and cash equivalents of $9.8 million.

• Expect to fly Vigoride 7 on the SpaceX Transporter 10 mission targeted for March 2024, with Vigoride 7 expected to generate more revenue than Vigoride 6. - Continue to seek additional capital and evaluate strategic options. - Intend to introduce new features for Vigoride and the M-1000 satellite bus in 2024.

• The company faces the headwind of a shortening cash runway, and operations could be curtailed or ceased if raised capital is insufficient to bridge to full commercial production at a profit. - Uncertainty regarding the outcome of evaluating strategic alternatives and potential transactions with interested parties.

Q: Looking forward, we talked last quarter about how when the SDA invited you to bid on Tranche 2 that that's potentially transformational for the company. Do you have a sense of when the SDA will choose the winners from that bid?

A: In July, Momentus submitted a bid in response to SDA's request for proposals for a program called Tranche 2 Transport Layer Alpha. The SDA recently announced the selections for contract award, and Momentus was not selected for that contract. Momentus is actively engaged in the Tranche 2 tracking layer program and the projected award from SDA for the tracking layer bid is mid-January.

Q: Looking ahead a little bit to some of your ongoing technology R&D, something that's pretty attractive is the idea of a reusable Vigoride. I know you can't be precise, but do you have any sort of ballparks about how much of a reduction in your cost of service a reusable technology would provide?

A: A reusable Vigoride could be reused six or seven times, which would be a major improvement in unit economics. On the next mission, scheduled for March 2024, we plan to take a big step towards this capability with the Rendezvous and Proximity Operations demonstration.

Q: My first question will be about your M-1000 progress. Could you give more color on that? And also, will you need to flex [Ph] further flight heritage with it to gain more credibility?

A: The M-1000 bus is based on the Vigoride orbital service vehicle with high commonality. We're encouraged by the positive reaction to the M-1000 rollout, with both commercial and government customers showing interest. The M-1000 was used in our bid to the Space Development Agency for the Tranche 2 tracking layer.

Q: I see you signed several contracts quite recently and it seems quite faster than before. And the question will be, what do you think that is helping with that? Also, I think you already talked a little bit about this, but under this market condition competition, what do you think about your future growth?

A: Progress on earlier missions and flight heritage have positioned us better in the market, making customers more confident. We're actively booking customers for future missions like the SpaceX Transporter-11 and 12 missions, and are optimistic about future growth with continued momentum in contract signings.