The Space Development Agency (SDA) has awarded Momentus a small business innovation research (SBIR) award to tailor its orbital service vehicle for Department of Defense needs. However, the company faces dwindling cash reserves and must raise additional capital to continue operating.
Momentus, whose CEO is former senior Pentagon policy official John Rood, released its second quarter financials on Monday, marking its first $1 million quarter, with $1.7 million in revenue. This was a major jump from revenue in the same time last year of just $50,000.
However, net loss was $18.8 million during the quarter, and the company had just $22 million in cash and cash equivalents on hand at the end of the second quarter.
Momentus disclosed in a 10K filing to the Securities and Exchange Commission (SEC) that its current level of cash is not enough to fund operations for the next year. The company needs to raise “substantial additional capital,” to continue operations.
CFO Eric Williams told investors on a Monday call that the company laid off 30% of its employees and contractors in the second quarter to help control expenses, and is exploring financing options.
The SDA contract announced this week is valued at $746,073 with an option to add an additional $1.2 million for further work. Under the award, Momentus will tailor the capabilities of its Vigoride vehicle for DoD payloads and mission requirements. The capabilities will be developed to a critical design review (CDR).
“Vigoride’s flexibility, payload capacity, and power make it well-positioned to support a range of national security missions like space situational awareness, surveillance, reconnaissance, and other priorities,” said Momentus CEO John Rood. “We’re delighted by the opportunity to make improvements to Vigoride, so it is tailored to support SDA and DoD’s growing needs for capable space systems to meet the requirements of their national security missions.”