Momentus Q3 2023 Earnings Call Transcript

Quartr
Provided by Quartr
November 14, 2023

There are 6 speakers on the call.

Operator

Good afternoon. Thank you for standing by. My name is Jean, and I will be your conference operator today. At this time, I would like to welcome everyone to the Momentous Inc. Third Quarter 2023 Earnings Conference Call.

Operator

All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Followed by the number 1 on your telephone keypad. Thank you. As a reminder, today's call is being recorded.

Operator

I would like now to turn the call over to Mary Horne of Investor Relations. You may begin your conference.

Speaker 1

Thank you, and hello, everyone. Welcome to Momentous' Q3 2023 earnings conference call. With me here today are John Ryu, Chief Executive Officer of the company and Chairman of its Board of Directors as well as Eric Williams, Chief Financial Officer. Each will provide prepared remarks. Following these prepared remarks, we will take questions from analysts.

Speaker 1

Earlier today, we issued a press release and made a slide presentation available on our Investor Relations website, which provides an overview of our business and financial highlights for the quarter. You can download a copy of the release and presentation slides at investors. Momentus. Space. During today's call, we will make certain forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act of 1934.

Speaker 1

Forward looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and as a result are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward looking statements in this communication. You should listen to today's call with the understanding that our actual results may be materially different from the plans, intentions and expectations disclosed in the forward looking statements we make. For more information about factors that may cause actual results to materially differ from forward looking statements, please refer to the earnings press release we issued today as well as the company's filings with the Securities and Exchange Commission. Readers are cautioned not to put undue reliance on forward looking statements, and the company specifically disclaims any obligation to update the forward looking statements that may be discussed during this call.

Speaker 1

Please also note that we will refer to certain non GAAP financial information on today's call. You can find reconciliations of the non GAAP financial measures to the most comparable GAAP measures in our earnings press release. None of these non GAAP financial measures is a substitute for or superior to measures of financial performance prepared in accordance with GAAP. With that, I'd like to turn the call over to our Chairman and Chief Executive Chair, John Foudes.

Speaker 2

Thank you, Mary. It's a pleasure to be here today to provide an update on the progress we've made at momentous over the past quarter and share our Q3 financial results. After I make my comments, our CFO, Eric Williams will take you through the financial highlights and outlook. In the Q3, Momentous made further advances towards our goal of being a market leader for satellite buses and in space Transportation and Support Services for U. S.

Speaker 2

Government and Commercial Customers. Our launch heritage places us at the forefront of this expanding market and we believe we possess key competitive advantages with our differentiated orbital service vehicle and satellite bus. First, we've seen growing demand from both new and repeat commercial customers as shown by the 6 new contracts we signed since mid August. In addition, we continue to see opportunities in the U. S.

Speaker 2

Government sector at Defense and Intelligence Agencies. And in October, we submitted a bid to the U. S. Space Force Space Development Agency or SDA in response to its request for proposals for the Tranche 2 tracking layer program that involves producing 18 satellites to perform missile tracking and fire control. 2nd, since our last earnings call, the company has raised additional capital and reduced operating expenses with the aim of extending our runway.

Speaker 2

Momentous has raised approximately $16,900,000 in gross proceeds since our last earnings call. We have also taken steps to reduce our cash burn rate with a significant reduction from Q2, Q3 and a reduction in operating expenses of over 50% year over year from Q3 2022 to Q3 2023. That said, we continue to face the headwinds of navigating a shortening cash runway. In addition to working to raise additional capital, Momentous is also pursuing and evaluating strategic alternatives. As part of the evaluation of strategic alternatives, Momentous has received multiple indications of interest from potential strategic partners.

Speaker 2

Over the past several weeks, the company has been engaged in discussions with more than half a dozen potential strategic partners pursuant to confidentiality agreements. Management discussions with interested parties are ongoing. The company continues to position itself in order to quickly capitalize on any potential opportunities with interested parties and evaluate all viable strategic options. It's important to note that any capital raised by the company that it's important to note that if any capital raised by the company is

Speaker 3

insufficient to provide a bridge to full commercial production

Speaker 2

at a profit, Inc. Is insufficient to provide a bridge to full commercial production at a profit, the company's operations could be curtailed or cease. Our CFO, Eric Williams, will provide additional information on the company's finances in a few minutes. 3rd, we continue to operate 2 of our Bigaride Orbital Service Vehicles in orbit, successfully demonstrating our core technology and gaining valuable flight heritage that we believe is a competitive advantage. 4th, we continue to lean into significant markets where we believe Momentous has clear advantages.

Speaker 2

For example, we recently announced our M1000 satellite bus offering. The M1000 satellite bus is based on our successful and flight proven Vigoride orbital service vehicle and offers a low cost, flexible and capable bus for government and commercial customers. We're seeing solid interest in our satellite bus and are working toward expanding our footprint within this large and mature market. And finally, we are driving new innovation to maximize our competitive advantage, including testing of our microwave thermal thruster engine, continuing demonstration and testing of our take spring solar array and preparing to conduct a demonstration of Rendezvous and Proximity Operations early next year. We've already demonstrated our existing technology in space, including our pioneering and environmentally friendly thruster that uses water as its propellant.

Speaker 2

And we've executed well to meet our customer commitments. Since our first launch in May of 2022, Momentous has deployed 18 customer satellites using our Vigorite Orbital Service Vehicle and Deployers. In addition, our hosted payload services enabled Caltech to conduct an innovative demonstration using cutting edge space technology to meet our needs on earth by successfully collecting solar power in space and beaming it to earth. Our Bigaride 5 mission launched in January of 2023 is ongoing And the spacecraft continues to be operational, support customer activities and demonstrate new capabilities. As a reminder, During the Vigride 5 mission, Momentous deployed a customer satellite from Kosmosus and has provided hosted payload services to Caltech's space solar powered demonstrator mission in accordance with our contract over the past 6 months.

Speaker 2

These types of hosted payload missions are more profitable than transportation missions, particularly for larger hosted payloads and longer duration missions. Also during this mission, the momentous team conducted testing of the microwave electro thermal thruster or MET in space, where we successfully operated the propulsion system at full power across the range of firing durations of planned operation for its use cases, demonstrating capability to deliver satellites to precise custom orbits and to provide in space infrastructure services like hosted payloads. The MET uses water as its propellant. Momentous is a pioneer in commercializing this technology with safe, easy to handle propellant that is environmentally friendly. Recently, we started using this same vehicle to advance MET testing and have achieved dual thruster firings.

Speaker 2

Dual thruster firings enable greater efficiency and quicker orbit transfer times. As of today, we have approximately 2:30 minutes of firing time on the MET between both thrusters. In total, we've executed approximately 6.5 kilometers in orbital raises of the Vigoride OSV or Orbital Service Vehicle by firing the MET in single or dual thruster firings. The MET technology has achieved firing times that are the operational times required for Momentous missions. Its non toxic water propellant is intended to enable simpler, safer and more cost efficient operations, preparing the spacecraft for launch on earth and in operation in space.

Speaker 2

We're proud that the MET has shown its ability to operate as intended to perform these missions in space and we look forward to using it to support commercial and U. S. Government customers. Our mission with VigorIde 6 launched in April of 2023 is also ongoing. We have deployed all satellites for customers including the Ravella payload for Arca Dynamics, the Vireo Cubesat for C3S LLC, the DISCO-one cubesat for Arthouse University, the Iris C payload for an Asian customer booked through ISO launch and 2 satellites for NASA.

Speaker 2

As a reminder, these successful commercial deployments culminated in Momentous recognizing revenue of $1,700,000 in the Q2 of this year. We are proud of the performance of our VigorEye vehicle and see multiple use cases for it, particularly in support of more complex missions. We also have many customers whose mission requirements don't require the Inc. Capabilities of a Vigray vehicle in order to place them in orbit. In those cases, we will use another mechanism like a deployer to deliver our customers to their intended orbits.

Speaker 2

This approach serves the needs of our customers who don't require delta v or changes in velocity and position after release from the launch vehicle. For example, on our most recent mission launched on the SpaceX Transporter 9 mission on November 11, we have deployed 3 satellites for customers using a deployer, including the Picacho satellite for Lunasonde, which is a U. S. Subsurface imaging company with the goal of making underground resources like water and minerals easier to find. The Picacho CubeSat is a technology demonstrator of Lunasan sensors.

Speaker 2

It will measure the power spectral density of low frequency radio signals in the ionosphere, which will help inform designs for the company's future satellites. The Hello Test 1 and 2 satellites for Hello Space of Turkey are part of the Hello for IoT mission that that company is conducting. The 2 PocketCube satellites are part of HelloSpace This broader mission to enable worldwide IoT ecosystems and end to end data services for various industries. Hello Test 12 are HelloSpace's second and third satellites launched into orbit. There are 2 other satellites that momentous carried on this flight that we cannot confirm deployment of at this time after their launch.

Speaker 2

We are coordinating with our customers as they work to establish communications with their satellites and with SpaceX to understand as well as possible The operational launch vehicle and our deployer system on that day. Moving into next year, we expect to fly our next Vigoride vehicle, The Rigoride 7 on the SpaceX Transporter 10 mission targeted for launch no earlier than March of 2024. On this mission, Momentous has contracted to support 7 customers that require orbital delivery services and 2 customers requiring hosted payload services for a total of 9 customers that we will support on this mission. We also plan to carry a Momentous hosted payload that we will use to conduct a rendezvous and proximity operations demonstration. With VigorIde 7, we are planning for a fuller payload, which would improve mission economics and we anticipate that VigorIde 7 will generate more revenue than VigorIde 6.

Speaker 2

As I mentioned, we've expanded our product offerings to include low cost, flexible, powerful satellite buses spearheaded by our M1000 satellite bus. We believe this new offering is well positioned to serve a market at $11,900,000,000 in 2020 and is projected to reach $20,800,000,000 by 2,030 according to Allied Market Research. The M1000 satellite bus utilizes the same core technologies as our Vigoride, But will be tailored and enhanced as needed to meet the mission requirements of different customers across both the U. S. Government such as the Defense Department and commercial customers.

Speaker 2

We believe our M1000 bus can be manufactured at a rapid and scalable pace. Features high power, a flexible configuration to support individual customer needs, greater payload capacity and competing buses and a quick production timeline to meet customer mission requirements rapidly at a low cost, making it highly competitive in the market. Since our last earnings call, we have signed 6 commercial contracts. 1, we signed a contract with C3S for transportation and orbital delivery services in 2025. C3S is a repeat customer from Momentous.

Speaker 2

The C3S VEREO payload was transported to orbit on the Vigoride 6 mission launched in April of 2023. Secondly, we signed a contract with Aarhus University for Transportation and Orbital Delivery Services in late 2024. Our house is also a repeat customer. Momentous placed satellite in low earth orbit for our house also on our Vigorites-six mission that launched in April of this year. 3rd, we signed a contract with FASA Systems, a Spanish company that offers global low power Internet of Things or IoT Connectivity and In Space Services to provide hosted payload services starting in 2024.

Speaker 2

The contract also includes 2 options for additional hosted payloads. Fossa is another repeat customer. 4th, we signed a contract with RideSpace to transport 2 payloads to orbit, including the 1st satellite for the nation of Senegal and the 2nd satellite for Djibouti. We signed a contract with SATREV to fly their SOA-one payload in the Q1 of next year. And 6, the most recently, We signed a contract with AVS to fly their LUR1 payload in the Q2 of next year.

Speaker 2

We also continue to see interest and receive encouraging feedback from U. S. Government customers. Earlier this year, we were awarded a small business innovation research contract from the U. S.

Speaker 2

Defense Department's Space Force Space Development Agency or SDA. The first contract phase is worth roughly $746,000 and includes an option for a contract modification that we expect the SDA to exercise. This option would add an additional $1,200,000 bringing the total contract value to over $1,900,000 This project scope involves making tailored modifications to the system underlying the M1000 satellite bus and Vigorate Orbital Service Vehicle to support a range of Department of Defense payloads. Some of these areas include adding a secure payload interface, optical communications terminals, a high volume data recorder and improving the modularity of the propulsion system. We recently completed the 1st milestone under the 1st phase of this SDA contract.

Speaker 2

As mentioned earlier, we recently submitted a bid to the SDA for the Tranche II tracking layer program, which involves building 18 satellites for tracking of ballistic and hypersonic missiles as well as fire control that we expect will exceed $700,000,000 We continue to receive favorable feedback and encouragement from the U. S. Government about our capabilities and have been pleased to host senior government officials for visits to our headquarters this past quarter. We intend to continue to compete. We're confident in our capabilities and solutions and we understand it may take some time to Department of Defense interest.

Speaker 2

In addition, as we pivot towards expanding to the large and mature satellite bus market and continue to pursue launch aggregation as a revenue stream, we are ensuring our launch schedule is optimized to meet this anticipated demand. We marked our 3rd mission of the year just a few days ago with the SpaceX Transporter 9 launch. As I mentioned, we deployed 3 customer satellites and are working to confirm the deployment of 2 additional satellites. We are excited to continue the momentum in 2024 and unlike many of our competitors are already well positioned with SpaceX to continue customer deliveries. We have reserved ports on all of the SpaceX Transporter missions through the end of 2024, including the Transporter-ten mission targeted for February of 2024, the Transporter 11 mission targeted for June of 2024 and the Transporter 12 mission targeted for October of 2024.

Speaker 2

The market opportunity for momentous is substantial and experiencing strong growth. The Space Foundation's annual space report, which was released on July 25 shows that in 2022, the global space economy grew 8% reaching $546,000,000,000 The commercial space market climbed nearly 8%, reaching over $427,000,000,000 The U. S. Government spent $69,900,000,000 on space programs with the majority coming from the Department of Defense. Total space spending by the U.

Speaker 2

S. Department, classified and unclassified for all military branches and intelligence agencies is estimated to have grown to $42,900,000,000 in 2022, a 21% year over year increase. Flexibility, payload capacity and power available on the Vigoride OSV and M1000 satellite bus makes them well positioned to support a range of national security missions like space situational awareness, surveillance, reconnaissance and other tasks. So it comes as no surprise that the U. S.

Speaker 2

Government customers responsible for national security missions are demonstrating interest in these capabilities. Not only can our BigRite OSV deliver national security payloads to custom orbits to support unique mission requirements, But we're also able to move from initial customer requirements to operation in space with rapid speed, setting Momentous apart from traditional companies that support Department of Defense Missions. Other factors such as our ability to support power intensive high end national security payloads like sensors, communications equipment and other electronics in change orbital altitude and inclination also distinguish Momentous from our competitors. Our capabilities make us well suited to support the kind of maneuver in space that senior U. S.

Speaker 2

Officials like Space Force Chief of Space Operations, General Salzman have discussed as a critical need in the highly contested space environment. In addition, our highly experienced team of professionals and engineers with decades of national security experience gives us an edge over other U. S. Companies and the international competitors who cannot meet the needs of these large Defense Department customers. Momentous seeks to grow in the space market and we believe our value position and differentiated capabilities support that goal.

Speaker 2

We've now delivered 18 satellites to orbit in our history, while demonstrating the operational capabilities of our technology along with its functionality and space. We are also continuing to develop new differentiated technology and are expanding our product offerings to the large mature satellite bus market and to the expanding space servicing and deorbit markets. In terms of improving our vehicles, We're working to develop additional features and capabilities for BigRide and the M1000 satellite bus to enhance their performance such as high speed mission data links, adding expansion tanks, incorporating security features and adding a precision pointing option to host sensitive and classified U. S. Government payloads.

Speaker 2

We expect to begin introducing some of these features in 2024. A great example of our innovation is our tape spring solar array or TASSA, which has been in space since April on our BigRide 6 mission. The TASA utilizes flexible solar cell technology, allowing the solar array to be extended and retracted like a tape measure, using its concave shape to produce rigidity. TASSA is designed to be deployed and retracted on orbit numerous times is configurable to varying lengths based on power requirements and utilizes thin film solar cells that are radiation resistant and self annealing. To date, in space testing was able to demonstrate the majority of the major performance requirements.

Speaker 2

Testing performed included boom yoke deployment, initial rollout deployment, thin film flexible solar cell basic power generation, low cost slip ring performance and the retraction mechanism. This provides confidence as well as identifying areas for improvement as Momentous continues development of this technology. Once Tassa is fully flight qualified, Momentous estimates that replacing Vigarant's current solar array with Tassa will substantially reduce the overall recurring production cost of this spacecraft. Momentous was recently notified that our application was approved to issue the company a patent for technology buying, TASA. In addition, we're building out the capabilities we'll need to conduct more complex missions in the future.

Speaker 2

Our Rendezvous and Proximity Operations or RPO technology demonstration is planned for the Vigoride 7 mission, which is scheduled to be launched on the SpaceX Transporter-ten mission in February of 2024. RPO capability would span the menu of services that VigRAD can provide to include in orbit inspection, maintenance and refueling of customer satellites, as well as life extension and de orbiting of satellites at the end of their useful life. The RPO demo will allow us to perform space domain awareness and inspection services right away. The RPO mission also supports another innovation focus of ours, which is to evolve towards a reusable version of Vigorite or refuelable version that would stay in space and be refueled and therefore reused on later missions. Currently after completing its mission, Vigorad will move to a lower degrading orbit in safely and responsibly burn up during reentry.

Speaker 2

A reusable Vigoride after completing its emission Its mission would instead rendezvous with and provide services to additional customer satellites thereby providing greater return on investment for each VigRide launch. In summary, let me just say that Momentous continues to make progress. 1, advancing our differentiated technology with demonstrated competitive advantages and gaining flight heritage. Secondly, by signing additional commercial contracts. 3rd, by gaining greater interest from U.

Speaker 2

S. Government and Defense Department Organizations 4th, positioning the business for greater growth in the large and growing satellite bus market and Emerging Market for in space logistics and satellite servicing, refueling and deorbit and 5th, Raising capital, reducing expenses and pursuing strategic options. We are actively seeking new investors while considering the full range of strategic options. And we are continuing to drive our technology forward in concert with the demand signal that we are getting from key customers. Now, I'll turn things over to our CFO, Eric Williams to provide an update.

Speaker 4

Thank you, John, for the introduction. I'm pleased to present highlights of the financial results achieved by the Momentous team during our Q3 of 2023. We ended Q3 2023 with unrestricted cash Inc. Cash equivalents of $9,800,000 with approximately $5,700,000 in outstanding gross debt consisting of a term loan that we began to repay in March of 2022. Similar to our Q2 earnings release earlier this year, Our 10 Q will include language evaluating whether there are conditions and events that raise substantial doubt about our ability to continue as a going concern.

Speaker 4

This going concern determination was concluded as we prepared our financial statements for the Q3 after management conducted a comprehensive evaluation Inc. Of the status of our current liquidity and projected cash flows for the next 12 months. When taking into account certain external factors, This analysis concluded that given our current cash balance, the company is unable to meet its obligations for the next 12 months. Although the company has a history of successfully raising cash primarily through the issuance of equity, consistent with relevant technical guidance, Any projected or anticipated equity financing transactions are not generally viewed as probable for the purposes of going concern assessments. Momentous has taken and continues to take several proactive steps with respect to managing our burn rate and extending our crash runway while we continue exploring new business opportunities and working to raise additional capital.

Speaker 4

Towards the End of Q2 2023, we reduced our headcount consisting of both full time employees and contractors by approximately 30% To substantially reduce our burn rate, while retaining the talent we need to execute on our key near term initiatives. We invested approximately $12,800,000 in operating activities during Q3 as detailed in our 10 Q statement of cash flows, sequentially down $1,800,000 as compared to $14,600,000 in Q2 2023 and down $12,800,000 or 50% lower as compared to $25,600,000 in Q3 of 2022. In addition, the company has been working to raise additional capital while pursuing and evaluating strategic alternatives. During the quarter, on September 11, we successfully executed a registered direct offering raising $5,000,000 in gross proceeds. In addition, since the end of this last fiscal quarter, we raised an additional $4,000,000 in gross proceeds via a registered direct offering on October 4th, $1,350,000 on October 17 from the exercise of existing warrants previously issued by the company and $6,500,000 gross proceeds via warrant inducement agreement, which closed on November 9, for a total of $11,900,000 in gross proceeds since the end of the quarter.

Speaker 4

In total, the company raised approximately $16,900,000 in gross proceeds since our last earnings call. As John mentioned in his prepared remarks, momentous is also pursuing any value in strategic alternatives. As a result of this effort, Momentous has received multiple indications of interest from potential strategic partners. Over the past several months, the company has been engaged in discussions with more than half a dozen potential strategic partners pursuant to confidentiality agreements. Management discussions with interested parties are ongoing.

Speaker 4

While there can be no certainty that any transaction will ensue from the evaluation, the company continues to position itself in order to quickly capitalize on any potential opportunities with interested parties and evaluate all viable strategic options. In addition, if the capital raised by the company is insufficient to provide a bridge to full commercial production at a profit, the company's operations could be curtailed or ceased. As I'm sure you can appreciate, we are unable to comment further on any of these discussions at this time. We recognized $340,000 in revenue in Q3 2023 consisting primarily of revenue generated from meeting variety of customer service milestones associated with our BigRide 5 launch. This was 162% increase year over year from Q3 of 2022.

Speaker 4

We had $15,300,000 in operating expenses during Q3, which was a 30 Inc. From operations, an improvement of 31% compared to $21,600,000 in losses from operations in Q3 of 2022. On a non GAAP basis, our adjusted EBITDA was negative $10,600,000 for Q3 of 2020 a sequential improvement of approximately $4,100,000 from Q2 of 2023 $5,500,000 better as compared to Q3 of 2022. Non GAAP SG and A expenses for the Q3 of 2023 totaled 5 point $6,000,000 an improvement of $1,100,000 as compared to Q3 of 2022. Non GAAP R and D expenses for the Q3 of 2023 totaled approximately $5,500,000 down $4,000,000 from Q2 of 2023.

Speaker 4

We currently have approximately 6,600,000 shares outstanding. In addition, during the quarter, we completed a reverse split of our stock, which has allowed us to continue to meet the NASDAQ listing requirements, while also aiding in future capital raising. With respect to backlog, We have decided to work towards providing more near term metrics as our business grows. We found backlog to be more useful during the early stages of company and given the long term nature of the contracts, find the metric to be less helpful going forward. We will continue assessing the benefits of providing forward looking financial metrics, while continuing to announce commercial opportunities as they arise.

Speaker 4

Please refer to the press release issued today for the reconciliation of the non GAAP numbers to GAAP. I will now hand the call back to Mary.

Speaker 1

Thank you, Eric. In a moment, We will move on to the question and answer portion of our call. I would like to remind participants that all disclaimers outlined at the outset of this call extend to the question and answer session. This includes our disclaimers relating to non GAAP financial information, forward looking statements and the technology underlying our planned service offerings. Operator, would you please remind participants how to enter the queue?

Operator

Your first question comes from the line of Michael Matheson with Singular Research. Your line is open.

Speaker 3

Congratulations on all the progress you guys.

Speaker 2

Thanks, Michael. Thank you, Michael.

Speaker 3

Looking forward, we talked last quarter about how when the SDA invited you to bid on Tranche 2 that that's potentially transformational for the company. Do you have a sense of when the SDA will choose the winners from that bid?

Speaker 2

Thank you for the question, Michael. In July, Momentous submitted a bid as you recall with a group of other partner companies in response to SDA's request for proposals

Operator

for

Speaker 2

a program called Tranche 2 Transport Layer Alpha. Unfortunately, The SDA recently announced the selections for contract award and the contract was awarded to York Space and Northrop Grumman. So, Momentous was not selected for that contract. In that proposal, Momentous and our teammates submitted for the Tranche to Transport Layer Alpha competition. I would say, that was a significant step forward for our company.

Speaker 2

Proposals for major U. S. Defense Department programs like this are a major undertaking. They are hundreds of pages long with detailed technical analyses and designs required. It takes time in my experience for bidders to become established with government season to learn the nuances of their processes and the requirements that they use, as well as importantly the nuances that the bid evaluators use at an individual agency.

Speaker 2

Inc. While we were not selected in Northrop Grumman and York space, we're awarded contracts. Certainly, that was disappointing that we were not selected, but there were I would note there were a number of other companies who were not selected as well, such as Lockheed Martin and Terran Orbital. I guess, Michael, the best way I would explain is to use a baseball analogy. It's very common that companies need some at bats, if you will, before getting a hit.

Speaker 2

We learned a lot during the Alpha competition and we're already implementing lessons learned. Also, I'd say, we are figuratively back in the batter's box. We're taking another swing at another large SDA program. We think we have an even stronger set of teammates who have previously won SDA contracts. As I mentioned in my earlier remarks, Momentous and the industry partners that we've pulled together for this competition Submitted a proposal for the Tranche 2 tracking layer program, which involves producing 18 satellites for missile tracking and fire control.

Speaker 2

We're optimistic about our prospects here. Certainly, this is a process It's a journey, if you will, and we're improving with every proposal we submit. And again, we do feel like we're better positioned Inc. For a contract award under the tranche 2 tracking layer competition than we were under the alpha competition. And the reasons again are we've developed a greater familiarity with the SDA government evaluators and how they work in a more nuanced way.

Speaker 2

We've also attracted this very strong set of teammates to partner with us on the bid. So we'll stay engaged in that process and the projected award from SDA for the tracking layer bid is mid January.

Speaker 3

Okay, great. Thank you for all that information. Looking ahead a little bit Some of your ongoing technology R and D, something that's pretty attractive is the idea of a reusable Vigoride. I know you can't be precise, but do you have any sort of ballparks about how much of a reduction in your cost of service a reusable technology would provide?

Speaker 2

Well, thank you for the question again, Michael. Thus far, of course, Momentous has used an expendable version of the Vigorate orbital service vehicle. This reusable or refuelable version of course would stay in space after completing its initial mission where it delivered satellites or hosted payloads. And then on the subsequent mission, Momentous would launch replenishment fuel and other customer payloads that the Orbital service vehicle and rendezvous with and use its robotic arm to integrate. A reusable vigoride, we estimate could be used reused 6 or 7 times.

Speaker 2

Therefore, the unit economics would be a major improvement over the expandable the expendable rather version. There is some work that we need to do still to fully develop that reusable version. On our next mission that of Vigoride scheduled for March of 2024. We plan to take a big step towards this capability when we do the rendezvous and proximity operations demonstration. In that demo, what VigorEye will do is it will attempt to release a target satellite and then we will maneuver within 2 meters of that satellite.

Speaker 2

This will enable us to test the software, the sensors, the algorithms and other technology necessary for this kind of mission And for servicing and refueling of other satellites or de orbiting satellites in their useful life. We also then later will add a robotic arm in the future to enable the reusable version of VigRide to do some to do the mission. And there's a little bit of shielding of electronics that we would need Due to allow for longer radiation exposure, essentially we've enclosed some of our current electronics inside some shielding. So thanks again for the question, Michael.

Speaker 3

Okay, great. Well, and thank you for the information.

Operator

Your next question comes from the line of Rolly with Deutsche Bank.

Speaker 5

Hi. Thank you for taking my questions. My first question will be about Steel M1000 progress. So could you give more color on this? And also, will you need like further flight heritage with which gain more credibility.

Speaker 2

Well, thank you for the question. The M1000 bus again is based on our Figure I Orbital Service Vehicle and there is a very high degree of commonality between the two vehicles, which allows us to leverage the flight heritage of the Vigoraj as we market the M1000 bus. I would say we're very encouraged by the positive reaction we're getting to the M1000 rollout. We have both commercial and government customers who are showing interest Inc. For instance, over the past 30 days, we've met with numerous customers about it.

Speaker 2

We received an RFI or request for information from a constellation provider that we're in the process of responding to. We feel the M1000 is a differentiated product because it has higher relative power, a flexible configuration, the ability to carry a larger payload And we're able to produce them at a low cost. Potential customers are telling us the M1000 has a very good value position and that's why they're reacting positively to it. Of note, the M1000 was used in our bid To the Space Development Agency for the tranche 2 tracking layer of 18 satellites that will be used for missile tracking. So, we're very optimistic about the progress of the M1000 and eager to leverage the flight heritage of our Viguride Orbital service vehicle as we marketed.

Speaker 2

Thanks again for the question.

Speaker 5

Well, thank you so much for the information. And my second question will be, well, I see you signed several contracts quite recently and seems quite faster than before. And the question will be, what do you think that is helping with that? Also, I think you're right talk a little bit about this, but under this market condition competition, what do you think about your future growth?

Speaker 2

Thank you for the question. As I mentioned on the call, Momentous has now deployed 18 satellites to date. The progress that we've made on those earlier missions and the flight heritage we've gained Whether you have flight heritage, they want to evaluate the risk of flying with you in the future. For example, on our next mission, We plan to launch the Bigarite 7 Orbital Service Vehicle with 7 customer payloads Inc. Satellites that require orbital delivery and 2 other customers for a total of 9.

Speaker 2

These other two customers are for hosted payload support. And of course, we plan to do our own hosted payload demonstration hosted payload operation with a demonstration of rendezvous and proximity operations on that flight. But we've also signed other contracts with customers to deliver their satellites to orbit that will fly on later missions like the SpaceX Transporter 11 and 12 Missions, which are targeted for June October of 2024. And we're actively booking customers and marketing for flights in 2024 and beyond. So we do see a growth in interest in our capability.

Speaker 2

You mentioned the 6 customer contracts that we've signed since August. So we're going to try to keep that momentum going and that's the exhortation we've been giving to our sales team. So we're optimistic about the possibilities

Operator

There are no further questions at this time. This concludes today's conference call. You may now disconnect.

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