Intuitive Machines, Inc.

Welcome to Intuitive Machine's third quarter 2023 conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad, a confirmation tone that you are live in the question queue. You may press star and then 2 if you would like to remove your question from the queue. If anyone should require operator assistance during the conference, please press star, then zero to signal an operator. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Stephen Zhang. Please go ahead, sir.

Good morning. Welcome to the Intuitive Machines third quarter 2023 earnings call. Chief Executive Officer Steve Altomus and Chief Financial Officer Eric Salley are leading the call today. 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 the future of our business, the economy, and other events. 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 press release and the company's most recent 10Q 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 the applicable SEC rules and regulations. Reconciliations to the company's GAAP measures are included in the earnings release filed on Form 8K. Finally, we posted an earnings call presentation on our website, which provides additional context on our financial performance. You can find this presentation on our investor relations page at www.intuitivemachines.com slash investors. Now I'll turn the call over to Steve Altomus.

Thanks, Stephen. Welcome, everyone, and thank you for joining us. In today's presentation, I will provide updates and accomplishments across the company's four business units. After, I will hand the call to our Chief Financial Officer, Eric Selle, to review our financial results for the third quarter of 2023. Let's begin with our Lunar Access Services accomplishments. During our second quarter call, we mentioned that we believed launch pad congestion was going to determine the priority of launches through the rest of the year. In coordination with NASA and SpaceX, liftoff of the IM1 lunar mission is now targeted for a multi-day launch window, which opens on January 12, 2024. In case of unfavorable launch conditions, such as poor weather, backup opportunities are available and will be determined based on the lunar blackout window and other factors. I'd like to take a moment to expand on this change to add context and perspective. Intuitive Machines completed its lunar lander actually in September, and we were looking forward to launching it in November. We also know better than most that there are inherent challenges of spaceflight. Schedule changes and mission adjustments are a natural consequence of pioneering lunar exploration. Preparing to return the United States to the surface of the moon has been an incredible journey. Our lunar lander is performing beautifully in all its testing, and we are authorized to deliver it to Florida later this month. We have a launch date and the necessary approvals ready to go. This is a great achievement for the company and a lesson in patience. This delay is a small price for making history. Meanwhile, we are smartly using this extended interval before the planned launch date to continue offline confidence testing. Specifically, we've pulled in work planned for pad processing, which included a fit check to our separation ring and spacecraft adapter. We tested the fitment and the separation of the vehicle to the spacecraft adapter. In addition, we still plan to run another mission sequence test to provide additional training for the operations team in preparation for the mission and to do additional testing on the flight and ground software. Finally, we continue confidence testing with our propulsion system in our offline vertical test facility, continually refining propulsion system parameters. Our second planned mission is benefiting from all the testing we have done for Mission 1 and is quickly taking shape. Intuitive Machines engineers completed helicopter testing of the LIDAR navigation system for IM2 at the Kennedy Space Center. The use of LIDAR to land our second mission allows us to land in shaded regions of the moon targeted by NASA's Artemis program. IM2's propulsion and structural components are in-house undergoing assembly, and we're working on the integration of NASA's ice mining drill and commercial payloads. Our Micronova hopper, which is designed to search for water ice in permanently shadowed regions of the moon, is assembled and undergoing thermal vacuum and vibration testing. Nokia's lunar 4G LTE network is taking shape. including integration with the lunar surface rover, which will deploy from the lander to test and validate the robustness and performance of Nokia's cellular network communication between the rover and the lander in the harsh lunar environment. At the end of the quarter, we submitted a proposal for another contracted mission with NASA. This is the CP-22 task order contract under the agency's commercial lunar payload services initiative. We believe this is still on target for award notification later this month. And looking ahead, we're excited to share that this past week, we were selected by a leading international space agency for a $16.8 million contract to deliver two payloads through our Lunar Rover services. These services include the deployment of the rover and payloads with our Nova Sea lander, along with data relay and communication services back to Earth. This award is our largest international payload contract to date and demonstrates our continued focus on diversifying our customer base as we expand into international markets. For lunar data services, as we look forward to providing communication capabilities between assets using Nokia's 4G LTE on the lunar surface, we're continuing to expand our lunar data services business line to support the evolving needs of the future cislunar market communications and data between the Earth and moon. In preparation for our lunar mission, the operations team and mission control has completed all required ground station interface checks. These checks give assurance that our commercial lunar telemetry and tracking network is operational and prepared to provide near 24-7 coverage of our mission. And any future tracking missions whether that's from the civil, defense, or commercial sectors. In addition, the mission control team is continuing to complete payload data transmission and mission sequence testing. These functional practice sessions will continue all the way through the scheduled launch in January to fully appreciate and understand all the nuances in the software and the ground network. As mentioned last quarter, NASA's award for the Near Space Network Services Contract Award is expected in early 2024. In orbital services, we began customer transition for NASA's five-year, $719 million omnibus multi-engineering services contract, or OMES III, and expect revenue to start December 1st. To date, we've secured more than 87% of the total workforce for the contract, and we'll be ready to support NASA in the next month. For space products and infrastructure, we believe the energy sector will continue to develop across our space products and infrastructure business line. In the days leading up to this call, Intuitive Machines announced a $9.5 million award from the Air Force Research Laboratory to develop satellite positioning and maneuverability solutions using radioisotope power systems. The award feeds into our growing space products and infrastructure business line and is an exciting opportunity for Intuitive Machines to evolve as a dynamic, adaptable, and forward-looking company diversifying into defense and energy. During the third quarter, we started our one-year program to develop a radioisotope power system to enable in-space assets like our lunar landers to survive the lunar night, potentially extending lunar missions from roughly two weeks to several years. As we mentioned in our second quarter call, Intuita Machines completed phase one of its fission surface power reactor contract for the Department of Energy and NASA. Now the company is proposing phase 1A, which would extend the contract by eight months for early risk reduction on hardware and design maturation. We expect the work completed during phase one and 1A will give the company valuable insights toward Department of Energy and NASA's $4.5 million second phase of the contract. Looking ahead, we submitted our bid as the prime contractor for NASA's Lunar Terrain Vehicle Services Contract earlier this year 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 our prime contractor debut in human spaceflight. We're expecting multiple down-selected prime contract awards, and the expected award timing is now the end of quarter one, 2024. Finally, Intuitive Machines has expanded its ability to support each of the business units in our fully operational lunar production and operations center at the Houston spaceport. We opened the facility with a ribbon cutting with over 400 people in attendance, including federal and state representatives, Houston mayor, and city council members. By moving into our new operations center, the company now has the ability to simultaneously manufacture multiple spacecraft including up to four lunar landers. Moving into our new home designed to support NASA's $93 billion Artemis program marks a new beginning on our journey for growth and expansion. With that, I'll turn the call over to Intuitive Machines Chief Financial Officer, Eric Selle.