(Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q For the transition period from to Commission file number 001-39128 Momentus Inc. (Exact name of registrant as specified in its charter) Delaware 84-1905538 (State or other ...

Strategic Partnership to Leverage Velo3D's New Rapid Production Solutions Offering FREMONT, Calif., April 14, 2025 /PRNewswire/ -- Velo3D, Inc.  (OTC: VLDX) – a leader in additive manufacturing (AM) technology known for transforming aerospace and defense supply chains through world-class metal AM, today announced a five-year, $15 million master services agreement (MSA) with Momentus, Inc. (NASDAQ: MNTS). "We are constantly seeking opportunities to drive growth and deliver value, and this deal with Momentus  ...

Financial Performance and Challenges - Momentus has incurred significant losses since inception and expects to continue incurring losses in the future, indicating challenges in achieving profitability[16] - The company has a limited operating history, making it difficult to evaluate future prospects and associated risks[16] - As of December 31, 2024, the company had cash and cash equivalents of $1.6 million, primarily in highly liquid investments[319] - The company is exposed to various market risks, including interest rate changes and funding availability[318] - The company’s financial instruments are not significantly affected by interest rate changes due to the low-risk profile of its investments[319] Technology and Innovation - The company has developed the Microwave Electrothermal Thruster (MET) technology, which has reached Technology Readiness Level 9, demonstrating its efficiency and safety with water as a propellant[27] - Momentus has developed a patent-pending water plasma propulsion technology, with eight issued patents and four non-U.S. issued patents as of December 31, 2024[43] - The company holds multiple patents related to spacecraft propulsion, with expiration dates set for March 12, 2040, including an MET thruster design that improves vorticity through an annular structure[47] Market Opportunities and Services - Momentus plans to provide "last mile" satellite transportation and other on-orbit services, aiming to lower operating costs for satellite operators while minimizing environmental impact[28] - The company anticipates considerable growth in demand for small satellites and satellite buses, driven by advancements in technology and the emergence of new space-based business models over the next decade[38] - The space transportation segment is expected to grow as companies seek versatile and low-cost ways to deliver satellites to specific orbits, with a focus on reducing costs compared to dedicated small launch vehicles[35] - Momentus aims to develop in-orbit servicing capabilities, including inspection, refueling, and maintenance, to address the growing need for satellite servicing as the number of satellites increases[39] - The company plans to offer high-volume production of low-cost satellite buses based on Vigoride's technologies, integrating unique customer payloads for various missions[39] Operations and Partnerships - The company is focused on obtaining necessary governmental licenses and approvals, which are critical for its operations and future growth[16] - Momentus relies on partnerships with leading launch service providers, such as SpaceX, to enhance its satellite deployment capabilities[30] - The company has established relationships with multiple launch providers, including SpaceX, to maximize flexibility and access to various launch options[42] - The company has surrendered its NOAA license for future missions and will apply for required authorizations on a case-by-case basis[51] Competitive Landscape - Momentus operates in a highly competitive industry, which may pressure pricing and impact revenue generation[16] - The market for in-space infrastructure services is not well established, and growth may be slower than anticipated, affecting future revenue[16] - Momentus is focused on leveraging common technologies through modular vehicles to compete across multiple markets without significantly increasing development costs[43] Workforce and Compliance - The company has 24 full-time employees as of March 28, 2025, focusing on optimizing human capital resources and promoting diversity[59] - The company is actively engaged in recruiting talent with significant experience from leading defense and aerospace sectors[59] - The company is subject to stringent U.S. export control laws, including ITAR and EAR, which could impact operational capabilities and costs if compliance is not maintained[53] - The company has been granted FCC licenses for the Vigoride 5 and Vigoride 6 missions, indicating compliance with regulatory requirements for satellite operations[49] Mission Progress and Development - The inaugural test mission of the Vigoride Orbital Service Vehicle (OSV) was conducted in 2022, with two additional missions in 2023, showcasing the company's commitment to developing its transportation services[29] - Momentus has launched four missions to date, deploying 17 customer satellites and providing hosted payload services, with three missions involving the operation of the Vigoride OSV in orbit[36] - The company introduced variants of Vigoride tailored for constellation applications, M-500 and M-1000, in August 2023[34] - Momentus aims to transition its OSVs from expendable to reusable, which could significantly reduce service delivery costs[31]

Financial Performance - Service revenue for the nine months ended September 30, 2024, was $1,829,000, down from $2,066,000 for the same period in 2023, indicating a decrease of about 11.5%[14] - Gross profit for the nine months ended September 30, 2024, was $1,763,000, compared to $1,559,000 for the same period in 2023, reflecting an increase of approximately 13%[14] - Total operating expenses for the nine months ended September 30, 2024, were $24,647,000, down from $55,886,000 in the same period of 2023, a reduction of about 56%[14] - Net loss for the nine months ended September 30, 2024, was $23,087,000, compared to a net loss of $54,819,000 for the same period in 2023, showing an improvement of approximately 58%[14] - Total revenue for the nine months ended September 30, 2024, was $1.829 million, a decrease from $2.066 million in the same period of 2023[61] Cash and Assets - Total current assets decreased from $10,731,000 as of December 31, 2023, to $5,393,000 as of September 30, 2024, representing a decline of approximately 50%[12] - Cash and cash equivalents decreased from $2,118,000 as of December 31, 2023, to $798,000 as of September 30, 2024, a decline of about 62%[12] - As of September 30, 2024, Momentus had total stockholders' equity (deficit) of $(5,404,000), an improvement from $(396,134,000) as of March 31, 2024[17] - As of September 30, 2024, total prepaid and other current assets amounted to $4.2 million, down from $8.5 million as of December 31, 2023[111] - The net value of property, machinery, and equipment was $2.4 million as of September 30, 2024, compared to $3.3 million as of December 31, 2023[112] Liabilities and Deficits - The total liabilities increased from $17,462,000 as of December 31, 2023, to $19,509,000 as of September 30, 2024, an increase of approximately 12%[12] - The accumulated deficit increased from $(373,047,000) as of December 31, 2023, to $(396,134,000) as of September 30, 2024, reflecting a deterioration of about 6.2%[12] - Momentus’s accumulated deficit as of September 30, 2024, was $(396,134,000), indicating ongoing challenges in achieving profitability[17] Research and Development - Research and development expenses for the nine months ended September 30, 2024, were $7,731,000, down from $26,315,000 in the same period of 2023, a decrease of about 70%[14] - The company is focused on developing its M-1000 satellite bus, which integrates innovations to improve sensor capability, maneuverability, and lower costs[25] - Momentus has completed work on a Small Business Innovation Research contract to support U.S. Department of Defense payloads, enhancing the M-1000 satellite bus and Vigoride OSV[26] Capital and Financing - The company is seeking to raise substantial additional capital to fund its operations and business plan, as current cash levels are insufficient[33] - In September 2024, the company raised approximately $2.8 million through a private placement transaction, issuing pre-funded and Class A warrants[135][137] - The company entered into a Term Loan agreement providing up to $40 million in borrowing capacity, of which $25 million was drawn at inception[123] Legal Matters - The company recorded a litigation settlement contingency of $8.5 million related to the Securities Class Actions, with $4.0 million expected from insurance proceeds[182] - A proposed settlement for certain shareholder derivative litigation was reached on August 26, 2024, requiring the Company to adopt corporate governance reforms for a minimum of four years[192] - Momentus is involved in multiple class action lawsuits alleging material misrepresentations regarding the Proposed Transaction, with claims dating back to August 9, 2021[200] Stock and Equity - The company issued 2,220,000 common shares and related warrants in a registered offering, net of issuance costs, resulting in an increase of $7,171,000 in additional paid-in capital[17] - The 2021 Equity Incentive Plan had 324,302 shares remaining available for grant as of September 30, 2024, following an increase of 248,508 shares due to the evergreen provision[162] - The company has a stock incentive plan under which equity awards are granted to employees, directors, and consultants[84] Operational Highlights - Momentus has launched four missions to date, deploying 17 customer satellites and providing hosted payload services, demonstrating its operational capabilities in space[24] - The company has produced its next Orbital Service Vehicle, Vigoride 7, which is intended for future missions or as a satellite bus, showcasing its commitment to innovation in space transportation[24] - Momentus has successfully demonstrated its Vigoride OSV in space, accumulating significant flight heritage through three missions[24]

Financial Performance - Service revenue for the three months ended June 30, 2024, was $1,209,000, compared to $1,705,000 for the same period in 2023, indicating a decrease of about 29%[13] - Gross profit for the six months ended June 30, 2024, was $1,317,000, down from $1,339,000 in the same period of 2023, reflecting a slight decline of approximately 1.6%[13] - Net loss for the three months ended June 30, 2024, was $7,016,000, compared to a net loss of $18,835,000 for the same period in 2023, representing an improvement of approximately 62.8%[13] - Momentus Inc. reported a net loss of $15.3 million for the six months ended June 30, 2024, compared to a net loss of $39.7 million for the same period in 2023, indicating a significant improvement in financial performance[18] - The company reported a net loss per share of $0.42 for the three months ended June 30, 2024, compared to a net loss per share of $9.81 for the same period in 2023, indicating a significant improvement[13] - The company reported a net loss of $7.0 million for the quarter ended June 30, 2024, compared to a net loss of $18.8 million in the same quarter of 2023, representing a 63% improvement[197] Assets and Liabilities - Total current assets decreased from $10,731,000 as of December 31, 2023, to $6,159,000 as of June 30, 2024, representing a decline of approximately 42.5%[11] - Cash and cash equivalents decreased from $2,118,000 as of December 31, 2023, to $897,000 as of June 30, 2024, a decline of about 57.7%[11] - Total liabilities decreased from $17,462,000 as of December 31, 2023, to $16,802,000 as of June 30, 2024, indicating a reduction of approximately 3.8%[11] - Total stockholders' equity (deficit) decreased from $3,187,000 as of December 31, 2023, to $(1,796,000) as of June 30, 2024, reflecting a change of approximately 156.4%[11] - Total prepaid and other current assets decreased from $8.5 million as of December 31, 2023, to $4.8 million as of June 30, 2024[92] - The company reported a net property, machinery, and equipment value of $2.8 million as of June 30, 2024, down from $3.3 million as of December 31, 2023[93] Expenses - Total operating expenses for the three months ended June 30, 2024, were $8,173,000, compared to $20,211,000 for the same period in 2023, showing a reduction of about 59.5%[13] - Research and development expenses for the three months ended June 30, 2024, were $2,850,000, compared to $10,204,000 for the same period in 2023, a decrease of about 72%[13] - Selling, general and administrative expenses also decreased from $10.0 million in Q2 2023 to $5.3 million in Q2 2024, reflecting cost-cutting measures across various categories[201] - Momentus incurred stock-based compensation expenses of $3.2 million for the six months ended June 30, 2024, compared to $4.3 million in the same period of 2023, reflecting cost management efforts[18] Cash Flow and Financing - The company used net cash of $6.4 million to fund its operating activities for the six months ended June 30, 2024, and had cash and cash equivalents of $0.9 million as of June 30, 2024[26] - The company expects to finance its operations through equity or debt financings, which may not be available on favorable terms[28] - The company continues to seek opportunities to access additional capital to alleviate its financial conditions[29] - Momentus raised gross proceeds of $247.3 million from its business combination with Stable Road Acquisition Corp, providing significant capital for future operations[24] Operational Highlights - Momentus has successfully launched four missions to date, deploying 17 customer satellites and providing hosted payload services, demonstrating operational capabilities[20] - The company has developed the Vigoride 7 Orbital Service Vehicle, which is intended for future missions or as a satellite bus, showcasing ongoing innovation in its product offerings[20] - Momentus is now offering the M-1000 satellite bus, which integrates innovations to improve sensor capability, maneuverability, and lower costs, positioning the company for growth in the satellite bus market[21] - The company anticipates considerable growth in the space transportation segment, driven by demand for small satellite transportation to low-earth orbit and emerging applications beyond[179] Legal and Regulatory Matters - The Company agreed to settle the Securities Class Actions for a total payment of $8.5 million, with at least $4.0 million funded by insurance proceeds[135] - The Company intends to vigorously defend against multiple shareholder derivative actions alleging similar claims as the Securities Class Actions[142][143] - The Company disputes allegations made by TLLT, which seeks damages in excess of $7.6 million related to investment contracts[147] - The Delaware Supreme Court affirmed the judgment of the Delaware Court of Chancery regarding the indemnification claim by Mr. Kokorich on November 30, 2023[151] Future Outlook - The company’s ability to continue as a going concern is dependent on successfully raising capital to fund operations and execute its business plan[25] - There is substantial doubt about the company's ability to continue as a going concern for at least one year from the issuance of the financial statements due to insufficient cash to fund operations and the need to raise additional capital[28] - The company’s consolidated interim financial statements have been prepared on a going concern basis, indicating potential adjustments if the company cannot continue operations[29]

Financial Performance - Net loss for the quarter was $8.313 million, compared to $20.825 million in the same period last year, a 60% improvement[13] - Net loss for Q1 2024 was $8.3 million, compared to $20.8 million in Q1 2023, showing a significant improvement[19] - Net cash used in operating activities decreased to $5.3 million in Q1 2024 from $18.7 million in Q1 2023[19] - Net loss improved by 60% to $8.3 million in Q1 2024 from $20.8 million in Q1 2023, reflecting reduced operating expenses and improved revenue[200] Revenue and Expenses - Service revenue increased from $22 thousand to $513 thousand, a significant growth of 2232%[13] - Research and development expenses decreased from $10.119 million to $2.676 million, a reduction of 74%[13] - Selling, general and administrative expenses decreased from $10.270 million to $6.164 million, a reduction of 40%[13] - Total operating expenses decreased from $20.389 million to $8.840 million, a reduction of 57%[13] - Service revenue increased to $513,000 in Q1 2024, up from $22,000 in Q1 2023, driven by engineering services for the Space Development Agency[200][201] - Research and development expenses decreased by 74% to $2.7 million in Q1 2024 from $10.1 million in Q1 2023, primarily due to reduced payroll and subcontractor costs[200][202] - Selling, general and administrative expenses decreased by 40% to $6.2 million in Q1 2024 from $10.3 million in Q1 2023, mainly due to lower professional fees and payroll costs[200][203] - Interest income decreased significantly to $18,000 in Q1 2024 from $555,000 in Q1 2023 due to changes in investment strategies[200][205] - Other income increased by 179% to $53,000 in Q1 2024 from $19,000 in Q1 2023, primarily due to non-recurring fees[200] Cash and Assets - Cash and cash equivalents decreased from $2.118 million to $1.672 million, a decline of 21%[11] - Total current assets decreased from $10.731 million to $9.319 million, a decline of 13%[11] - Cash and cash equivalents at the end of Q1 2024 were $2.0 million, down from $39.9 million at the end of Q1 2023[19] - Prepaid and other current assets decreased from $8.5 million in December 2023 to $7.2 million in March 2024, primarily due to a reduction in prepaid launch costs from $1.3 million to $0[88] - Property, machinery, and equipment net value decreased from $3.3 million in December 2023 to $3.0 million in March 2024, with depreciation expense remaining consistent at $0.2 million for both periods[91] - Intangible assets net value increased slightly from $341 thousand in December 2023 to $347 thousand in March 2024, with a weighted average remaining amortization period of 6.0 years[92][94] Liabilities and Equity - Total liabilities decreased from $17.462 million to $15.254 million, a decline of 13%[11] - Total stockholders' equity increased from $3.187 million to $3.485 million, a growth of 9%[11] - Accrued liabilities decreased from $4.8 million in December 2023 to $4.5 million in March 2024, with a significant drop in compensation expense from $392 thousand to $81 thousand[98] - The company repaid the remaining principal balance of its $25.0 million Term Loan during Q1 2024, with interest expense amortization decreasing from $0.5 million in March 2023 to $45.7 thousand in March 2024[102] Business Operations and Contracts - Momentus has launched four missions, deployed 17 customer satellites, and successfully demonstrated its Vigoride OSV in space[21] - The company has produced Vigoride 7, its next Orbital Service Vehicle, intended for future missions or as a satellite bus[21] - Momentus is now offering the M-1000 satellite bus, which shares substantial commonality with Vigoride and is designed for rapid and scalable production[22] - The company completed work on a Small Business Innovation Research contract, modifying the M-1000 and Vigoride systems to support U.S. Department of Defense payloads[23] - NASA selected the company for the Venture-Class Acquisition of Dedicated Rideshare (VADR) contract on August 22, 2024[170] Capital and Financing - Momentus received $247.3 million in gross proceeds from its Business Combination in August 2021[25] - The company completed a March 2024 securities offering, issuing 1.32 million shares of Class A common stock at $0.87 per share and raising $4.0 million in gross proceeds[105][106] - The March 2024 offering included pre-funded warrants for 3.3 million shares and warrants for 4.6 million shares, with the warrants priced at $0.74 per share and a 5-year term[105][106] - The company amended its January Warrants, reducing the exercise price from $0.96 to $0.74 per share and extending the termination date from January 2029 to June 2029[107] - The Company estimated an incremental increase in fair value of approximately $0.1 million for the January Modified Warrants using the Black-Scholes valuation model[108] - The Company issued 3,304,280 shares of Class A common stock as a result of all March Pre-Funded Warrants being exercised, receiving an immaterial amount of cash proceeds[108] - The January Offering included 900,000 shares of Class A common stock at $1.09 per share, 2,787,000 January Pre-Funded Warrants, and 3,687,000 January Warrants, with aggregate gross proceeds of approximately $4.0 million[109][110] - The Company estimated an incremental increase in fair value of approximately $1.2 million for the November Modified Warrants using the Black-Scholes valuation model[112] - The Company issued 2,787,000 shares of Class A common stock as a result of all January Pre-Funded Warrants being exercised, receiving an immaterial amount of cash proceeds[112] - The Company paid $10.0 million to the Co-Founders in March 2023 as part of the stock repurchase agreements, triggered by raising $10.0 million in the February Offering[113] - The company raised $2.75 million through a private placement offering of pre-funded warrants and Class A/B warrants in September 2024[173] Legal and Litigation - The company recorded a litigation settlement contingency of $8.5 million for the Securities Class Actions, with $4.0 million covered by insurance proceeds[138] - Shareholder derivative action filed by Justin Rivlin on April 25, 2023, alleging core claims similar to Securities Class Actions, with the company filing a motion to dismiss[144] - Shareholder derivative action filed by Brian Lindsey on June 30, 2023, also alleging core claims similar to Securities Class Actions, with the company intending to defend vigorously[145] - Unopposed motion for preliminary approval of settlement filed on August 26, 2024, with a settlement hearing scheduled for November 21, 2024[146] - TLLT filed a lawsuit on July 20, 2022, alleging fraudulent inducement and breach of contract, seeking damages exceeding $7.6 million[147][148] - Former co-founders Mikhail Kokorich and Lev Khasis filed claims for indemnification and advancement, with the company disputing these claims[149][150][151][152] - Delaware class actions (Shirley, Lora, and Burk Actions) consolidated under In re Momentus, Inc. Stockholders Litigation, with motions to dismiss filed and hearings scheduled[153][154][155][156][157][158] - Threatened claim by Stephen J. Purcell for $80,000 in attorney's fees related to a stockholder litigation demand letter, which the company disputes[159][160] - Disclosure demand letters and threatened fee petitions from Rigrodsky Law and Grabar Law Office, with the company disputing the merit of these claims[161] - Ongoing litigation may result in significant defense and settlement costs, potentially impacting the company's financial condition[162][163] - The company paid $526,000 to settle indemnification claims with former employees in September 2024[170] Stock and Compensation - The company's total stock-based compensation expense for RSUs & RSAs was $1.367 million for the three months ended March 31, 2024, compared to $1.601 million in the same period in 2023[128] - Stock-based compensation for the three months ended March 31, 2024 totaled $1.443 million, compared to $1.720 million in the same period in 2023[127][128] - Total unrecognized compensation cost related to unvested RSUs as of March 31, 2024 is $12.2 million, expected to be recognized over a weighted-average period of 1.2 years[126] - Outstanding unvested and expected to vest RSUs had an intrinsic value of $0.1 million as of March 31, 2024[126] - The 2021 Equity Incentive Plan increased by 248,508 shares due to the evergreen provision and 830 shares due to forfeitures, with 317,938 shares remaining available for grant as of March 31, 2024[119] - The Company had an outstanding liability of $23.4 thousand pertaining to the 2021 ESPP Plan as of March 31, 2024[121] - The company issued 2,700 shares of Class A common stock to a third-party consulting firm in March 2023, with a fair value of $0.1 million[129] - Potential common shares excluded from diluted earnings per share calculation due to anti-dilutive effect totaled 14,823,062 for the three months ended March 31, 2024[131] Taxes and Accounting - The company's effective tax rate for Q1 2024 and Q1 2023 was 0%, influenced by factors such as changes in statutory rates and valuation of deferred tax assets[164] - The effective tax rate varies due to changes in statutory rates, valuation of deferred tax assets, and nondeductible items, with a federal statutory rate of 21%[197] - The company accounts for income taxes using the asset and liability method, with deferred tax assets and liabilities measured using the enacted tax rate[77] - The company is currently evaluating the impact of ASU 2023-03 and ASU 2023-06 on its financial statement disclosures and results of operations[83] Other Financial Information - The company recorded $0.5 million of revenue from U.S. Government engineering services in Q1 2024, compared to $0 in Q1 2023[49] - Total revenue for Q1 2024 was $513 thousand, consisting of $478 thousand from engineering services and $35 thousand from forfeited customer deposits[51] - Customer deposit balances were $1.1 million as of March 31, 2024, with $0.6 million classified as non-current deposits[50] - Deferred fulfillment and prepaid launch costs decreased from $1.7 million in December 2023 to $0.4 million in March 2024[42] - Restricted cash of $0.4 million is held as collateral for a letter of credit related to a lease agreement[41] - The company paid $10.0 million to satisfy stock repurchase agreement contingent liabilities in Q1 2023[56] - Warrant liability remained unchanged at $3 thousand from December 2023 to March 2024, with increased volatility assumption from 113.50% to 151.72%[56][57] - The company is classified as an emerging growth company and expects to continue using extended transition period benefits for new accounting standards[37][39] - Fixed assets have estimated useful lives ranging from 3 years for computer equipment to 7 years for machinery and equipment[38] - Intangible assets, primarily patents, are amortized over 10 years using the straight-line method[45] - The company recorded equity related to the Public Warrants of $20.2 million and a liability related to the Private Warrants of $31.2 million upon the consummation of the Business Combination[62] - The company issued 225,450 Private Warrants and 172,500 Public Warrants, each entitling the holder to purchase one share of Class A common stock at $575.00 per share[60] - The fair value of the Private Warrants was measured using the Black-Scholes option-pricing model and recorded as liabilities on the condensed consolidated balance sheet[61] - The company recognized $0.5 million of revenue during the quarter ended March 31, 2024, with 93.2% derived domestically and 6.8% from foreign customers[81] - The company did not contribute to its 401(k) plan during the three months ended March 31, 2024 and 2023[71] - The company evaluates the carrying value of long-lived assets annually and recorded no impairments during the three months ended March 31, 2024 and 2023[67] - The company's operating lease ROU assets and lease liabilities are recognized at the lease inception date based on the present value of lease payments[74] - The company's cash and cash equivalents are placed in banks that management believes are creditworthy, though deposits may exceed federally insured limits[79] - Future unconditional purchase obligations as of March 31, 2024 total $6.072 million, with $3.097 million due in the remainder of 2024 and $2.975 million in 2025[132] - The company paid $40 million to the Co-Founders following the Business Combination and an additional $10 million in February 2023[140][141] - Legal expenses related to CFIUS review and other matters were approximately $0.1 million for both the three months ended March 31, 2024 and 2023[141] - The company issued $500,000 in promissory notes to directors and an officer at a 5.12% annual interest rate, repaid in full by September 12, 2024[165] - The company borrowed $2.3 million through a convertible promissory note with a 15% annual interest rate, secured by company assets, and maturing on September 1, 2025[167] - The convertible note allows for interest payments in shares of Class A common stock at a conversion price of $0.53 per share[168] - The company recognized $0.5 million in revenue for Q1 2024, primarily from U.S. government engineering services and forfeited customer deposits[187] - As of March 31, 2024, the company held $1.1 million in customer deposits, with $0.6 million recorded as non-current contract liabilities[187] - The company has launched four missions, deployed 17 customer satellites, and successfully demonstrated its Vigoride OSV in space[185] - The company expensed all research and development costs associated with developing and building its vehicles as of March 31, 2024[191] - The company incurred additional expenses as a public company, including compliance and reporting obligations under SEC regulations[192] - The fair value of warrant liability decreased by $112,000 in Q1 2023, driven by market price changes of publicly listed warrants[200][204]

Core Points - Momentus, Inc. and Stable Road Acquisition Corp. (SRAC) are involved in a fair fund distribution due to misleading statements made during their merger process [4][15][17] - The Securities and Exchange Commission (SEC) has ordered the payment of $8,040,000 in civil penalties, which will be distributed to affected investors through the Momentus Stable Road Fair Fund [6][18] Group 1: Background and Misconduct - On October 7, 2020, Momentus and SRAC announced their merger, which included materially false statements about Momentus' technology success [4] - The SEC found that Momentus and its former CEO, Mikhail Kokorich, concealed national security concerns related to Kokorich's foreign ownership, impacting the company's launch schedule and revenue projections [5][15] - Following the SEC's findings, Momentus' enterprise valuation dropped from $1.1 billion to less than $600 million due to adverse licensing decisions stemming from national security risks [5] Group 2: Fair Fund and Claim Process - The Fair Fund is established to compensate investors who purchased SRAC common stock, warrants, or units during the recovery period from October 7, 2020, to July 13, 2021 [13][19] - Claimants must submit a completed Claim Form by July 4, 2024, to be eligible for a distribution payment, with a minimum recognized loss of $10.00 required [8][10] - The Fund Administrator, Epiq Class Action & Claims Solutions, Inc., will notify claimants of their claim status within 90 days of the claims bar date [11][23]

Financial Performance and Funding - Momentus has incurred significant losses since its inception and expects to continue incurring losses in the future, raising concerns about achieving or maintaining profitability [18]. - The company requires substantial additional funding to finance its operations, but adequate financing may not be available when needed or on acceptable terms [18]. - Momentus had cash and cash equivalents of $2.1 million as of December 31, 2023, primarily invested in highly liquid investments [402]. - Momentus' term loan indebtedness bears interest at a fixed rate, insulating it from interest rate changes [403]. Market Opportunities and Growth - The total addressable market for in-space transportation is estimated at approximately $2 billion annually, projected to double to $4 billion by 2025, including $2-2.5 billion for onboard satellite propulsion and $1.5-2 billion for "space tugs" [50]. - The broader space economy is valued at $546 billion in 2023, with an expected growth to over $1 trillion by 2040, indicating a significant market opportunity for Momentus [49]. - The demand for small satellites and satellite buses is anticipated to grow, driven by advancements in technology and the increasing number of satellite constellations [44][45]. - Momentus aims to capture emerging markets in the space economy by providing new service offerings and utilizing various marketing approaches [87]. Services and Technology Development - Momentus plans to provide a range of services including last mile satellite transportation, on-orbit refueling, and debris removal, which are expected to lower operating costs for satellite operators [34]. - The company is developing its Tape Spring Solar Array (TASSA), which aims to produce power at significantly lower costs than competing arrays and offers advantages in deployment and maneuverability [33]. - Momentus aims to offer a range of in-orbit services, including inspection, refueling, and maintenance, as the number of satellites in space increases [45][51]. - The company plans to transition its OSVs from expendable to reusable, which could significantly lower service delivery costs [37][59]. - Momentus's transportation service is expected to provide cost-effective options for customers compared to traditional ride-share and dedicated small launch vehicles [48]. - The company has developed a patent-pending water plasma propulsion technology and holds eight issued patents with applications for six additional patent families as of December 31, 2023 [86]. Operational Challenges and Risks - Momentus has a history of delivering customer satellites using its service vehicles since 2022, but setbacks during missions could adversely affect its business and reputation [18]. - The company is subject to stringent U.S. export and import control laws, and failure to comply could have a material adverse effect on its business [20]. - Momentus operates in a highly competitive industry, which may necessitate price reductions to maintain market share [18]. - The market for in-space infrastructure services is not well established, and growth may be slower than anticipated [20]. - The company relies on third-party launch vehicles for deploying its satellites, and any delays could negatively impact its financial condition [20]. - Momentus has a limited operating history, making it difficult to evaluate its future prospects and the risks it may encounter [20]. Mission Accomplishments and Developments - Momentus conducted three test and demonstration missions of its Vigoride OSV in 2022 and 2023, with the vehicle designed to transport up to 750 kg of customer payloads in low-earth orbit (LEO) [56][57]. - Momentus launched its first orbital service vehicle, Vigoride 3, on May 25, 2022, deploying a total of 8 customer satellites during its inaugural mission [66][70]. - The Vigoride 5 mission, launched on January 3, 2023, successfully completed primary mission objectives, including the deployment of a cubesat and a complex hosted payload, with over 300 thruster firings totaling 6 hours and 58 minutes [74]. - During the Vigoride 6 mission on April 14, 2023, Momentus deployed all customer payloads, including CubeSats for NASA's LLITED mission, although one deployment experienced a mapping error [75][76]. - Momentus has conducted four missions to date, deploying a total of 17 customer satellites and providing hosted payload services [80]. - The Vigoride 6 mission included a demonstration of the Tape Spring Solar Array (TASSA), which showed significant performance capabilities during its test [77][78]. Regulatory and Compliance Matters - Momentus has received FCC licenses for its missions, including Vigoride 5 and Vigoride 6, and is actively pursuing compliance with evolving regulatory requirements [89]. - Momentus engaged with the FAA for ongoing payload reviews to address national security concerns raised during interagency reviews [97]. - The FAA denied a payload review application in May 2021 due to concerns regarding Momentus' corporate structure at that time [91]. - The company completed the final divestiture payment related to the National Security Agreement in March 2023 and requested termination of the NSA in December 2023, which was granted in January 2024 [100]. Infrastructure and Human Resources - The company leased a 65,000-square-foot facility in San Jose, California, to support Vigoride assembly and testing, allowing for increased production volumes [102]. - Momentus is focused on optimizing human capital resources and actively recruiting talent with experience in defense and aerospace sectors [101]. - Momentus has established relationships with multiple launch providers, including SpaceX, to maximize flexibility and service resiliency for its customers [81][84].

Market Overview - The overall market is currently just 1.5% from its all-time high and has increased over 4% this month, leading to heightened speculation in small-cap penny stocks [1][6] - Retail investors' interest in small-cap stocks has surged following recent meme mania, despite the associated risks of volatility, low volume, and weak fundamentals [1][6] Smart for Life Inc. (SMFL) - Smart for Life Inc. experienced a dramatic surge in trading volume, with 25 million shares traded compared to an average of 800k, resulting in a stock price increase of over 50% [2] - The catalyst for this movement was the announcement of a comprehensive restructuring plan, which included recapitalization and selling non-performing assets [2] - Despite the positive developments, the stock is down 50% year-to-date and has a history of closing weak after volume surges, with a micro float of under 500k shares contributing to its volatility [2] Momentus Inc. (MNTS) - Momentus Inc. saw a significant increase in trading volume, with over 40 million shares traded today, leading to an 11% rise in stock price [4] - The increase was driven by a contract secured from DARPA for the design and demonstration of technologies for large-scale structures in space [4] - The stock is down over 60% year-to-date and nearly 90% on the year, with a small float of just 16 million shares contributing to its price volatility [4] Sharps Technology, Inc. (STSS) - Sharps Technology experienced a notable surge in volume, trading over 90 million shares today, compared to an average of 17 million, resulting in a nearly 20% increase in stock price [5] - The surge was driven by a 5-year, $200 million syringe sales agreement and an amendment to an asset purchase agreement for producing specialty syringes in the U.S. [5] - Despite today's gains, the stock remains down almost 50% from its 52-week high, and there are concerns about potential share dilution to raise operational capital [5]

Momentus (NASDAQ:MNTS) stock is rocketing higher on Thursday after the space construction company signed a new deal with the Defense Advanced Research Projects Agency (DARPA). According to a press release from the company, this deal will have it working alongside the government agency to build large-scale structures in space. This has them planning to transport raw materials from Earth to construct facilities in orbit. The program that Momentus is joining is named DARPA Novel Orbital and Moon Manufacturing, ...