Intuitive Machines, Inc.

Ladies and gentlemen, greetings and welcome to the Intuitive Machine second quarter 2023 earnings conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star and zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Josh Marshall. Please go ahead, sir.

Good afternoon. Welcome to Intuitive Machines' second quarter 2023 earnings call. Chief Executive Officer Steve Altomus and Chief Financial Officer Eric Salley are leading today's call. Before we begin, please note that some of the information discussed during today's call will consist of forward-looking statements setting forth our current expectations with respect to future of our business the economy, and other events. These include projections of financial items, statements on plans and objectives, and management expectations of future economic performance. The company's actual results could differ materially from those indicated in any forward-looking statements due to many factors. These factors are described under forward-looking statements in the company's earning press release and the company's most recent 10-Q filed with the SEC. We do not undertake any obligation to update forward-looking statements. We also expect to discuss certain financial measures and information that are non-GAAP measures as defined in applicable SEC rules and regulations. Reconciliations to the company's GAAP measures are included in the earnings release filed on Form 8-K. Finally, we are posting an earnings call presentation on our website, which provides additional context to our financial performance. You can find this presentation on our investors relations page at www.intuitivemachines.com backslash investors. Now, I'll turn the call over to Steve Ultimus.

Thank you, Josh. Welcome, everyone, to the Intuitive Machines second quarter 2023 earnings call. I'll begin today with a brief overview of our company for any new investors and analysts online. Then I'll provide updates across the company's four business units, followed by a summary of the quarter and upcoming milestones. After, I will hand the call to our Chief Financial Officer, Eric Salley, for a review of our financial results for the second quarter of 2023. The Tuna Machines is a space infrastructure and services company founded in 2013 that contributes to establishing lunar infrastructure and commerce on the moon. We believe the company has a first mover position in development of lunar space and operates through four distinct business areas. Lunar access services, lunar data services, orbital services, and space products and infrastructure. Each with a specific focus and set of services. Lunar access services provide reliable and affordable means for governments, companies, and individuals to explore and place spacecraft in cislunar space or on the lunar surface. Intuitive Machines has developed a complete lunar program that includes mission control, our Nova C lunar lander, a space-to-ground communications network, and a series of launch vehicle contracts with SpaceX. The company has three missions on the flight manifest with plans to increase the frequency and complexity of missions over time. Lunar Data Services is a private, and secure network called the Lunar Data Network that sends and receives secure communications, navigation, and imagery to and from the moon. The LDN is designed to support data relay services for spacecraft in cislunar space and systems on the lunar surface. We expect LDN to provide backup services to NASA and the U.S. Space Force. Orbital services provide in-space orbital services for commercial and government organizations, These services include repair, refueling, and raising the orbits of existing satellites, as well as rideshare. Finally, Space Products and Infrastructure offers its customers reliable and cost-effective space products. These offerings include propulsion systems, navigation systems, lunar mobility vehicles, including rovers and drones, power infrastructure, and human habitation systems. Intuitive Machines' core business unit supports NASA's $93 billion Artemis program and extends across new revenue streams, including defense and energy. With that, let's move into our second quarter operational highlights. During the second quarter, we were laser focused on the final assembly process in preparing IM-1 for launch. The test campaign set forward last quarter to prepare IM-1 for launch included a complete engine vibration test, a complete spacecraft test run, engine acceptance, and final assembly and integration. Today, our IM-1 lander is complete and will be prepared for delivery in September. The company has secured a launch window from Pad 39A, preserving a six-day launch window starting on November 15th. In case of unfavorable launch conditions in November or a change due to high-priority launches on our launch pad, we have a second launch window in December. Right now, we are manifested on a Falcon 9 launch scheduled in November. With the congestion for launches using Pad 39A at Kennedy Space Center, we recognize that higher priority missions are always possible. However, our attention remains firmly fixed on the aspects we can control. Our IM1 Nova C is completely built and we continue to execute the rest of our business with the same intensity that will deliver a lunar lander ready to go to the moon in September. Progress continues throughout the company. We're building the primary IM2 structure, integrating payloads and mechanisms to the second lander. This includes the integration of NASA's Trident drill that will prospect for lunar water ice, completing payload deployment mechanisms and the anticipated completion of our rocket-fueled drone, Micronova, in September. This remarkable progress toward IM2 is a capitalization on valuable insights gained from IM1. We expect IM2 to be completed in the company's new Lunar Production and Operations Facility at the Houston spaceport. Our ribbon-cutting ceremony, scheduled for September 29th, will officially start operations inside our new home designed to support NASA's Artemis program, and growing commercial demand for each of our four business units. As our near-term launch approaches, we're focusing on sustainable and longer term exploration. Throughout the first half of 2023, we invested time in advancing our in-space capabilities to extend our lunar missions and apply those technologies using nuclear power in the orbital services market. Turning to recent awards and proposals, In July, NASA's Space Technology and Mission Directorate awarded a $15 million tipping point initiative to an intuitive machines team for the development of a radioisotope power system that may enable lunar assets like Nova C to survive and operate through the lunar night and in permanently shadowed regions of the moon. The lunar night cycle refers to the period of darkness on the moon that lasts approximately 14 Earth days. During this time, temperatures on the lunar surface dropped drastically, reaching as low as minus 279 degrees Fahrenheit. By surviving the lunar night, a mission on the surface of the moon could extend from two Earth weeks to several years. Intuitive Machines' role is to assist Xenopower in developing an interoperable haemorrhagium-241 radioisotope sterling generator that may be integrated into lunar landers to enable it to survive the lunar night cycle. Unlocking this capability in support of NASA's Artemis program is paramount for Intuita machines and the entire space exploration industry. The application of these radioisotope power systems extends beyond lunar surface longevity. Intuita machines entered the proposal pool for the Air Force Research Lab, joint energy technology supplying on-orbit nuclear power called Jetson, low-power contract this month. The proposal calls for Intuitive Machines and its team to develop satellite positioning and maneuverability solutions using radioisotope power systems in support of NASA's Gateway, a multipurpose outpost orbiting the moon. Intuitive Machines' Jetson team leveraged its nuclear power systems power generation and space exploration expertise building on our existing lunar fission surface power reactor contract, which we briefed the Department of Energy and NASA. The second phase $4.5 million award for our fission surface power contract is expected later this year. While NASA remains a fundamental pillar of our success, these nuclear in space opportunities spread across the defense, energy and civil agencies represent an exciting opportunity for Intuitive Machines to evolve as a dynamic, adaptable, and forward-looking company. In April, NASA awarded its five-year, $719 million on-the-bus multi-engineering services contract, referred to as OMS, to develop technologies enabling services, including satellite servicing and refueling, satellite repositioning, and orbital debris removal. In the days leading up to this call, the U.S. Government Accountability Office affirmed NASA's evaluation of Ohm's three proposals, resulting in Intuitive Machines retaining the award. We expect to start our transition soon and look forward to growing in orbital services marketplace. Since the first quarter, Intuitive Machines has submitted more than $3 billion in proposals spread across aerospace and defense sectors, including human spaceflight. We submitted our bid as the prime contractor for NASA's Lunar Terrain Vehicle Services contract as the moon racer team for the exploration and development of the South Pole region of the moon. The Lunar Terrain Vehicle is a key part of NASA's Artemis program and would be Intuitive Machines' prime contractor debut in human spaceflight. The company is taking steps to positively mitigate the effects of outside control program award date changes. For example, NASA's CP-22, which calls for a Nova Sea class lander to deliver a drill to the Moon's south pole, has moved from the third quarter to November, and the agency's Near Space Network Services Contract awards have moved from 2023 to early 2024. Before I conclude, I wanted to mention a new director. To help support and facilitate our growth trajectory, we have appointed Nicole Seligman to the Intuitive Machines Board of Directors. Nicole's distinguished career has included senior leadership roles in global public companies. With Nicole's valuable expertise now enriching our board, we continue to forge ahead in our endeavors. With that, I'll turn the call over to Intuitive Machine's Chief Financial Officer, Eric Selle.