Momentus Inc. (NASDAQ:MNTS), a company specializing in space vehicles and parts, has received a notice from the Nasdaq Stock Market indicating non-compliance with listing rules due to insufficient stockholders' equity. The notice, dated October 17, 2024, points out that Momentus does not meet the minimum requirement of $2.5 million in stockholders' equity, nor does it have the necessary market value of listed securities or net income from continuing operations as per Nasdaq's Listing Rule 5550(b).
This development does not immediately affect the company's listing on the Nasdaq, but it follows previous deficiency notifications from Nasdaq. Momentus has appealed the prior delisting determination and has requested a hearing with a Nasdaq Hearing Panel to present its plan to regain compliance. The company has recently filed Quarterly Reports for Q1 and Q2 of 2024, which resolved two earlier identified deficiencies.
If the Nasdaq Hearing Panel is not convinced by Momentus's compliance plan, the company's securities could be delisted. Momentus's management has made forward-looking statements expressing their intention to address the deficiencies and maintain the listing, but they have cautioned that these statements are not guarantees of future performance.
In other recent news, Momentus Inc. has secured a contract from NASA for future satellite launch services under the VADR program. This comes alongside the company's financial forecast for the first half of 2024, projecting revenues between $1.0 to $2.0 million and an anticipated net loss between $14.0 and $16.0 million. The company is also facing a potential Nasdaq delisting due to non-compliance with the exchange's minimum bid price and filing requirements, but plans to appeal this decision.
In a bid to raise funds, Momentus has recently secured approximately $2.75 million through a private placement of securities arranged by A.G.P./Alliance Global Partners (NYSE:GLP). The firm has also reached a preliminary court-approved settlement over derivative lawsuits, which includes corporate governance reforms.
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.
InvestingPro Insights
Recent InvestingPro data provides additional context to Momentus Inc.'s (NASDAQ:MNTS) financial situation. The company's market capitalization stands at a modest $15.41 million, reflecting its current challenges. Despite impressive gross profit margins of 84.86% for the last twelve months as of Q2 2024, Momentus is facing significant financial hurdles.
InvestingPro Tips highlight that the company is quickly burning through cash and its short-term obligations exceed liquid assets, which aligns with the Nasdaq's concerns about stockholders' equity. The stock's performance has been volatile, with a strong 21.82% return over the last month, but a substantial 83.47% decline over the past year.
Analysts anticipate sales growth in the current year, which could be a positive sign for Momentus's recovery efforts. However, they do not expect the company to be profitable this year, underscoring the ongoing financial challenges mentioned in the article.
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips that could provide valuable insights into Momentus's financial health and market position.
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