SAN JOSE, Calif. - Momentus Inc. (NASDAQ:MNTS), a provider of in-space infrastructure services, is confronting the risk of being delisted from The Nasdaq Capital Market due to non-compliance with the exchange's minimum bid price and filing requirements. The company has been notified of its failure to maintain the required $1.00 minimum bid price for its common stock over a 30-day period and has also delayed filing its Form 10-Qs for the first and second quarters of 2024.
Momentus received the initial notice of non-compliance on March 27, 2024, and has since received an additional notice indicating separate and additional grounds for potential delisting due to the delayed quarterly filings. The company plans to request a hearing with a Nasdaq Hearings Panel, which will temporarily stay the suspension of trading for 15 days from the request date. Momentus may seek an extended stay during the hearing process, but there is no guarantee that an extension will be granted.
The company is actively working to regain compliance with Nasdaq's listing requirements and intends to present a plan to the Panel. However, it is uncertain whether the Panel will allow the company to continue its listing or whether Momentus will be able to meet the necessary criteria within the potential extension period.
Currently, Momentus' common stock continues to be listed and traded on The Nasdaq Capital Market under the ticker symbol MNTS. The notices received by the company have not immediately affected the trading of its stock.
This situation arises as Momentus, known for offering commercial satellite buses and various in-space services, navigates a challenging period. The company's future filings and compliance efforts are subject to several uncertainties and risks, which are detailed in the "Risk Factors" section of their Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission.
The information in this article is based on a press release statement from Momentus Inc.
In other recent news, Momentus Inc. has reported several significant developments. The company secured approximately $2.75 million through a private placement of securities, and it also reached a preliminary court-approved settlement over derivative lawsuits, leading to the adoption of corporate governance reforms. Analysts from A.G.P./Alliance Global Partners (NYSE:GLP) were the sole placement agents for this offering. Momentus anticipates revenues of $1.0 to $2.0 million for the first half of 2024, with a projected net loss between $14.0 and $16.0 million.
In terms of partnerships, Momentus joined the Defense Advanced Research Projects Agency's BRIDGES consortium, marking a significant step into the U.S. Government classified market. The company also collaborated with London-based Lodestar Space, backed by a grant from the United Kingdom Space Agency, to equip its Vigoride Orbital Service Vehicle with a new robotic arm.
However, Momentus faces potential Nasdaq delisting due to delayed financial filings. Despite this challenge, the company was selected by NASA as a launch provider in the VADR contract, demonstrating its ongoing involvement in space infrastructure and launch services. Lastly, the company saw a leadership change with the appointment of Lon Ensler as the interim Chief Financial Officer. These are recent developments at Momentus Inc.
InvestingPro Insights
As Momentus Inc. (NASDAQ:MNTS) faces the possibility of being delisted from The Nasdaq Capital Market, the company's financial health is under scrutiny. Current data from InvestingPro shows that Momentus operates with a significant debt burden and may struggle to make interest payments on its debt, which could exacerbate its challenges in maintaining compliance with Nasdaq's listing requirements.
Despite these financial hurdles, analysts covered by InvestingPro anticipate sales growth in the current year for Momentus. The company's latest metrics reveal an impressive gross profit margin of 72.32% over the last twelve months as of Q4 2023, suggesting that while the company's top-line revenue is growing robustly, with a 933.11% increase over the same period, it has not yet translated into net profitability.
InvestingPro Tips also indicate that Momentus has been quickly burning through cash, which is reflected in its substantial operating loss of $68.17 million over the last twelve months as of Q4 2023. The company's stock has experienced significant price volatility, with a notable return of 14.46% over the last week, yet it has fared poorly over the last month with a -47.95% return. As of the previous market close, Momentus' stock was trading at $0.55, which is only 9.01% of its 52-week high, highlighting the stock's recent underperformance.
For investors considering Momentus as a potential investment, it is important to note that the company does not pay a dividend to shareholders, and according to InvestingPro, it is trading at a high revenue valuation multiple. With a market cap of just $8.12 million, Momentus is a smaller player in the in-space infrastructure services market, and its stock price reflects the high-risk nature of its business.
For a more comprehensive analysis, including additional InvestingPro Tips, visit InvestingPro.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.