SAN JOSE, Calif. - Momentus Inc. (NASDAQ: NASDAQ:MNTS), a company specializing in satellite buses and in-space services, has reached a preliminary court-approved settlement over a series of derivative lawsuits. The U.S. District Court for the Northern District of California has issued a preliminary order for the approval of the settlement, which includes corporate governance reforms and the payment of attorney's fees, litigation expenses, and lead plaintiff service awards.
The settlement is related to cases titled Hanna v. Kabot, Rivlen v. Kabot, Lindsey v. Quiroga, and a litigation demand by Momentus stockholder Kamal Qureshi. The final approval hearing for the settlement is scheduled for November 21, 2024.
In compliance with the court order, Momentus has made available to its shareholders several documents, including details of the final approval hearing, the stipulation of the settlement, and notices regarding the pendency and proposed settlement of the derivative matters. These materials are accessible on the Investor Relations section of the company's website.
This development follows the company's previous filings with the Securities and Exchange Commission, which highlighted various risk factors that could impact the company's future performance. The press release also contains statements looking forward to the company's future filings, including the anticipated Form 10-K and Form 10-Q.
Momentus, known for its commercial satellite buses and other in-space infrastructure services, has stated that these forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties.
The information for this article is based on a press release statement from Momentus Inc.
In other recent news, Momentus Inc. secured $2.75 million in a private placement deal and anticipates revenues of $1.0 to $2.0 million for the first half of 2024. The company also joined the Defense Advanced Research Projects Agency's (DARPA) BRIDGES consortium, marking a significant step into the U.S. Government classified market. Additionally, Momentus is partnering with London-based Lodestar Space to equip its Vigoride Orbital Service Vehicle with a new robotic arm, backed by a grant from the United Kingdom Space Agency.
However, Momentus faces potential Nasdaq delisting due to delayed financial filings, with a compliance plan due by October 21, 2024. Despite this, the company was selected by NASA as a launch provider in the VADR contract. Momentus also saw a leadership change with the appointment of Lon Ensler as the interim Chief Financial Officer, following the departure of Eric Williams.
These recent developments highlight the company's ongoing involvement in space infrastructure and launch services, as well as its commitment to advancing in-space technology and infrastructure. The company's future plans and use of proceeds from the offering are subject to various risks and uncertainties, as detailed in their SEC filings.
InvestingPro Insights
Momentus Inc. (NASDAQ: MNTS) has recently made headlines with its court settlement, but investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Momentus has a market capitalization of $8.12 million. Despite a staggering revenue growth of over 933% in the last twelve months as of Q4 2023, the company's financials reveal some challenges. The gross profit margin stands impressively at 72.32%, indicating strong profitability in terms of sales. However, the company's operating income margin is deeply negative at -2206.93%, reflecting substantial operating losses.
InvestingPro Tips highlight that Momentus operates with a significant debt burden and may have trouble making interest payments on its debt, which is a critical consideration for investors. The company's stock has experienced significant volatility, with a substantial return over the last week of 14.46%, yet it has fared poorly over the last month with a -47.95% return. Analysts do not anticipate the company will be profitable this year, which aligns with the company's latest earnings per share figures showing significant losses.
For investors seeking a more in-depth analysis, InvestingPro offers additional tips on Momentus Inc., which can be found at https://www.investing.com/pro/MNTS. These insights include perspectives on the company's cash burn rate, valuation metrics, and long-term stock performance, which could be particularly valuable given the recent legal developments and the company's forward-looking statements.
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