Momentus Inc (NASDAQ:MNTS)., a space infrastructure company specializing in guided missiles and space vehicles, has been notified by Nasdaq of non-compliance with listing rules due to a delayed quarterly financial report. The company, formerly known as Stable Road Acquisition Corp., has until October 21, 2024, to submit a compliance plan or face the risk of delisting.
The non-compliance notice, received on August 21, 2024, was issued because Momentus did not file its Form 10-Q for the quarter ended June 30, 2024, on time. Nasdaq Listing Rule 5250(c)(1) requires timely filing of periodic financial reports as a condition for continued listing. Momentus' securities, including its Class A common stock (NASDAQ:MNTS) and warrants (NASDAQ:MNTSW), remain listed at present, but delisting could occur if the company does not regain compliance within the allowed timeframe.
In response to the notice, Momentus has expressed its intention to work diligently to address the filing delay and plans to submit a compliance proposal by the deadline. If the plan is not accepted by Nasdaq, Momentus will have the opportunity to appeal the decision.
In a separate development, on August 22, 2024, NASA selected Momentus as a launch provider in the VADR (Venture-Class Acquisition of Dedicated Rideshare) contract. This contract allows NASA to send various payloads, including CubeSats and other higher risk-tolerant payloads, to different orbits. This selection highlights Momentus' ongoing involvement in space infrastructure and launch services.
In other recent news, Momentus Inc. has secured a $2.3 million convertible note from Space Infrastructure Ventures (SIV), according to recent SEC filings. The company has the option to borrow an initial $500,000 and secure an additional $1.8 million in subsequent loans. Momentus also resolved a previous compliance issue with Nasdaq regarding the requirement to hold an annual meeting.
In addition to this, Momentus secured $500,000 through director loans, primarily allocated for employee retention payments and note expenses. The company has also been granted an extension by Nasdaq to meet its filing requirements after a delay in filing its quarterly report. However, Momentus has not provided a definitive filing date, leading to some uncertainty for investors.
Furthermore, Momentus announced strategic partnerships with the Defense Advanced Research Projects Agency (DARPA) and Ascent Solar Technologies. These collaborations aim to develop technologies for constructing large-scale structures in space and market a new solar array solution respectively. Lastly, a change in leadership has occurred at Momentus, with Lon Ensler appointed as the interim Chief Financial Officer (CFO), following the departure of Eric Williams.
InvestingPro Insights
Momentus Inc.'s recent notification of non-compliance from Nasdaq has put the spotlight on the company's financial health and future prospects. According to InvestingPro data, Momentus boasts an impressive gross profit margin of 72.32% for the last twelve months as of Q4 2023, indicating a strong ability to control costs relative to revenue. However, with a market capitalization of just $17.62 million and a staggering operating income margin of -2206.93% for the same period, the challenges facing the company are evident.
InvestingPro Tips suggest that analysts are optimistic about sales growth in the current year, despite concerns over the company's cash burn rate and the lack of expected profitability for the year. Moreover, the stock has experienced significant price volatility, a factor that potential investors should consider. For those interested in deeper analysis, InvestingPro offers additional tips on Momentus Inc. that could provide further insights into the company's performance and investment potential.
With the company's recent selection by NASA as a launch provider, these financial metrics and InvestingPro Tips could be crucial for investors weighing the risks and opportunities presented by Momentus Inc. in the context of its current regulatory challenges and future growth prospects.
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