Starting on January 10, 2024, Momentus Inc. (the “Company” or “Momentus”) notified customers and certain regulatory agencies that the Company had changed its plans and did not plan to support the launch of their payloads aboard the Vigoride 7 Orbital Service Vehicle planned for launch on the SpaceX Transporter 10 mission currently targeted for March 1, 2024. The notice was provided due to the Company’s inability to support continuing operations for the expected launch date as a result of the Company’s limited liquidity and cash balance as of the time of the notice to customers.  The Company continues to pursue opportunities to raise additional capital to allow for its continuing operations and the execution of its business plan but does not have definitive commitments at this time.

 

 

On January 5, 2024, the Company was notified by the Space Development Agency (SDA) that the Company was not selected for funding for the Tranche 2 Tracking Layer.  As noted during the Company’s  third quarter 2023 earnings call and the accompanying press release filed with the Securities and Exchange Commission  on a Current Report on Form 8-K on November 14, 2023, Momentus had submitted a bid to the SDA to produce 18 satellites for missile tracking and fire control as part of this proposal.

 

The Company has not generated sufficient revenues to provide cash flows that enable the Company to finance its operations internally and the Company’s financial position and operating results raise substantial doubt about the Company’s ability to continue as a going concern. The Company has taken and continues to take proactive steps with respect to managing its cash burn rate and extending its cash runway while the Company continues exploring new business opportunities and working to raise additional capital. At the end of the fourth quarter of 2023, the Company reduced its headcount of full-time employees and contractors by approximately 20% to reduce its cash burn rate while retaining the talent it needs to execute on its key near-term initiatives. Nevertheless, the Company’s ability to continue to fund operations for the next few weeks and months will be dependent on its ability to raise equity capital or engage in a strategic transaction.

 

As part of the evaluation of strategic alternatives, Momentus has conducted discussions with multiple potential strategic partners over the past few months. Those discussions have not resulted in any definitive agreements. The Company continues to engage in discussions and attempts to position itself to be able to quickly capitalize on any potential opportunities with interested parties should they arise and to evaluate all viable strategic options. However, if the Company is unable to raise sufficient capital to provide a bridge to full commercial production at a profit, the Company’s operations could be further curtailed or ceased.

 

This Current Report on Form 8-K (this “Current Report”) includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this Current Report, are forward-looking statements. Forward-looking statements include, but are not limited to, statements regarding pursuing opportunities to raise additional capital to allow for its continuing operations and the execution of its business plan, the Company’s ability to operate as a going concern, the Company’s Compliance Plan, Momentus’ or its management team’s expectations, hopes, beliefs, intentions or strategies regarding the future, and projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, and are not guarantees of future performance. The words “may,” “will,” “anticipate,” “believe,” “expect,” “continue,” “could,” “estimate,” “future,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “aim,” “strive,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.