Momentus Inc. Q2 FY2022 earnings call

• Retired historical regulatory issues and obtained US government licenses, including from NOAA, FCC, and FAA.
• Completed assembly and ground testing of Vigoride 3, conducted its first launch, and deployed 6 customer satellites from Vigoride 3 and 1 from a third-party deployer system, totaling 7 customer satellites deployed.
• Analyzed anomalies from the Vigoride 3 mission, identified root causes, and implemented corrective actions for the next vehicle.
• Prepared Vigoride 5 for launch in November 2022, with corrective actions for Vigoride 3 anomalies on track to be completed before launch.
• Built out executive leadership team, adding high-caliber individuals.
• Utilized a third-party deployer system to deploy satellites, exploring adjacent market segments.

The company had cumulatively signed contracts for approximately $55 million in backlog as of July 31, 2022, down from $69 million due to a contract cancellation. They recognized $50,000 in revenue and $38,000 in gross profits from their inaugural mission. Ended Q2 with $109 million in non-restricted cash and cash equivalents, $21 million in outstanding gross debt, and 83.3 million shares outstanding. Operated at a loss from operations of approximately $24 million, with adjusted EBITDA negative $18 million.

• Cash on the balance sheet is estimated to carry the company through the end of 2023 with cost reduction plans.
• Plan to reduce operating costs via operational efficiencies, overhead cuts, and delaying some R&D projects, while continuing key aspects of reusable Vigoride development at a lower burn rate.
• Targeted launches: Vigoride 5 on SpaceX Transporter-6 mission in November 2022, with subsequent launches on Transporter-7 (February 2023), Transporter-8 (May 2023), and Transporter-9 (October 2023).
• Focus on pursuing government contracts at NASA and Defense Department organizations, having submitted bids for NASA tipping point proposals and VADR contracts, and exploring DoD opportunities.

• Tight schedule for the November 2022 launch of Vigoride 5.
• Potential issues with the solar panel deployment mechanism from a third-party supplier, although corrective actions are in place.
• Impact of capital market conditions on fundraising and the ability to pursue R&D projects as planned.

Q: Karl Oehlschlaeger asked about schedule tracking for the November launch and risks.

A: John Rood stated they are on track for the November launch but face a tight schedule, with enhanced ground testing and corrective actions for anomalies implemented.

Q: James Ratcliffe inquired about the extended cash runway, revenue assumptions, and government contracts.

A: John Rood and Jikun Kim explained the cash runway extends through the end of 2023 without assuming material revenue, and the focus is on pursuing NASA and DoD contracts.

Q: Edison Yee asked about the solar panel issue and government contracts.

A: John Rood discussed the root cause of the solar panel issue, implemented enhanced test procedures, and mentioned NASA tipping point proposals and VADR contracts as potential funding sources.

Q: Colin Canfield asked about launch cadence, space funding environment, and rising rates.

A: John Rood talked about the launch cadence and continued activity in the small satellite market despite market challenges, referencing industry forecasts and ongoing customer activity.