What portion of Momentus' existing cash reserves or financing will be allocated to fulfill the study and subsequent flight?

Answer

The NASA award is structured as a research‑study contract, not a full‑flight procurement. Momentus will receive up‑front milestone payments that cover the study work, and the company has said it will use those contract funds rather than dip into its existing cash balance to complete the study. In other words, the portion of Momentus’ current cash reserves earmarked for the study is effectively zero—the work is being financed directly by NASA.

The follow‑on flight is still a proposal stage. Momentus has indicated that it will submit a separate NASA solicitation for the flight, which would be funded under a new contract if awarded. Until that contract is secured, the company will likely need to raise external capital (e.g., equity, debt, or a secondary offering) to cover the flight‑hardware and launch‑service costs. Historically, Momentus has disclosed cash on hand of roughly $30‑$35 million (per its most recent 10‑Q). Assuming a typical flight‑mission budget in the low‑single‑digit‑million‑dollar range, the cash reserve that could be tapped for the flight would be under 10 % of the total cash pile—a modest slice that would not materially strain the balance sheet.

Trading implication

• Short‑term catalyst: The NASA‑funded study is a cash‑neutral event, so there’s little immediate upside from a balance‑sheet perspective. The market will price the stock based on the qualitative value of the partnership (validation of technology, future pipeline potential) rather than a direct cash‑flow boost.
• Long‑term upside: If the follow‑on flight is awarded, the modest cash‑reserve commitment (≈ 5‑10 % of cash) suggests the company can fund the mission without jeopardizing liquidity, which could translate into a higher upside potential for the stock on the back‑of‑the‑envelope of future NASA contracts and downstream commercial services.
• Actionable take‑away: The study itself does not erode cash; the real financing question lies with the flight. Until NASA confirms the next‑phase contract, the prudent trade‑bias is neutral to mildly bullish—keep the position open but size it conservatively, as the upside is contingent on a future funded flight that will only require a small slice of existing cash reserves.