Momentus Inc. MNTS shares are trading lower after the company announced the Space Development Agency notified that it was not selected for the Tranche 2 Tracking Layer funding.
In a filing, the company said there is substantial doubt about the company’s ability to continue as a going concern.
At the end of Q4, the company reduced its headcount of full-time employees and contractors by approximately 20% to reduce its cash burn rate.
The company exited the third quarter with cash and equivalents worth around $10 million, significantly lower than $62 million in the corresponding year-ago period.
As part of evaluating strategic alternatives, Momentus has conducted discussions with multiple potential strategic partners over the past few months. However, those discussions have not resulted in any definitive agreements.
The company said it continues to engage in discussions and attempts to position itself to capitalize on any potential opportunities with interested parties quickly should they arise and to evaluate all viable strategic options.
However, if the company cannot raise sufficient capital to provide a bridge to total commercial production at a profit, the company’s operations could be further curtailed or ceased.
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Price Action: MNTS shares are trading lower by 18.43% to $1.01 on the last check Friday.
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