SAN JOSE, Calif. - Momentus Inc. (NASDAQ: NASDAQ:MNTS), a U.S. space company known for its satellite buses and in-space services, has been chosen by the U.S. Defense Department's Space Development Agency (SDA) to participate in the Hybrid Acquisition for Proliferated Low Earth Orbit (HALO) program.
The SDA's HALO initiative aims to deploy a large constellation of satellites into low-Earth orbit, enhancing the nation's defense capabilities. The program has selected 19 vendors to form a pool to bid on rapid prototyping and spaceflight demonstrations, with Momentus among the chosen few. These efforts are to reduce risks and introduce new technologies into the SDA's future satellite tranches.
As a member of the HALO pool, Momentus is eligible to compete for demonstration prototype orders, which are anticipated to be issued and awarded on an annual basis. The company's Vigoride satellite bus is expected to play a key role in these missions due to its adaptability to various payloads and operational capabilities from the San Jose mission control center.
The prototype orders under HALO will focus on quick, end-to-end mission demonstrations, targeting launches within 12 to 18 months following the award. Momentus, as a non-traditional defense contractor, will lead these projects. The company will support both classified and unclassified programs as part of its agreement with the SDA.
John Rood, CEO of Momentus, expressed the company's pride in being selected and readiness to demonstrate technologies critical to national security. He highlighted Vigoride's track record, with three launches in a single year, demonstrating its capacity for challenging missions.
This announcement is based on a press release statement and contains forward-looking statements that involve inherent risks and uncertainties. Momentus's participation in the SDA's HALO program marks a significant step for the company in its collaboration with national defense space operations.
In other recent news, Momentus Inc. secured a $3 million convertible note with Space Infrastructures Ventures, LLC (SIV), to fund working capital and general business needs. The company also faces potential Nasdaq delisting due to non-compliance with listing rules, but plans to present a compliance plan to a Nasdaq Hearing Panel. On a positive note, Momentus secured a contract from NASA for future satellite launch services under the VADR program, positioning the company to deliver various payloads to multiple orbits. Momentus also secured approximately $2.75 million through a private placement of securities arranged by A.G.P./Alliance Global Partners (NYSE:GLP). The company's financial forecast for the first half of 2024 projects revenues between $1.0 to $2.0 million and an anticipated net loss between $14.0 and $16.0 million. Lastly, Momentus has joined the Defense Advanced Research Projects Agency's BRIDGES consortium and collaborated with London-based Lodestar Space to equip its Vigoride Orbital Service Vehicle with a new robotic arm. These are recent developments at Momentus Inc.
InvestingPro Insights
Momentus Inc.'s selection for the HALO program represents a potential turning point for the company, which has faced financial challenges. According to InvestingPro data, Momentus has a market capitalization of just $16.83 million, reflecting its current small-cap status. However, the company's revenue growth of 56.07% over the last twelve months as of Q2 2024 suggests it's making strides in its commercial efforts.
An InvestingPro Tip indicates that analysts anticipate sales growth in the current year, which aligns with the potential opportunities presented by the HALO program. This could be a catalyst for the company's future performance, especially given its impressive gross profit margin of 84.86% in the last twelve months.
Despite these positive indicators, investors should be aware that Momentus is quickly burning through cash, as another InvestingPro Tip points out. This is particularly relevant given the capital-intensive nature of space technology development and the long lead times often associated with government contracts.
For those interested in a deeper analysis, InvestingPro offers 11 additional tips on Momentus, providing a more comprehensive view of the company's financial health and market position.
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