Sidus Space, Inc.

Ladies and gentlemen, greetings and welcome to the CIDIS Space 3rd Quarter 2024 Results and Business Update Call. At this time, all participants are in a listen-only mode. 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, Bill White, CFO of CIDIS Space, Thank you.

Please go ahead. Good evening, everyone, and thank you for joining us for SIDUS Space's third quarter 2024 earnings conference call. Joining us today from the company is our founder, chairman, and CEO, Carol Craig, and myself, Bill White, Chief Financial Officer. During today's call, we make certain forward-looking statements. These statements are based on current expectations and assumptions, and as a result, are subject to risks and uncertainties. Many factors could cause actual results to differ materially from the forward-looking statements made on this call. These factors include our ability to estimate operational expenses and liquidity needs, customer demand, supply chain delays, including launch providers, and extended sales cycles. For more information about these risks and uncertainties, please refer to the risk factors in the company's filings with the Security and Exchange Commission, each of which can be found on our website, www.SideofSpace.com. Listeners are cautioned not to put any 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. At this time, I'd like to turn the call over to our chairman, CEO, Carol Craig. Carol, please.

Thank you, Bill, and welcome, everyone. For those of you who may be new to our company, Side of Space is a space mission enabler providing solutions that include custom satellite design, technology integration, mission management, space manufacturing, and AI-enhanced space-based sensor data as a service. Our mission is space access reimagined, and we're committed to rapid innovation, adaptable and cost-effective solutions, and the optimization of space systems and sensor data collection. We've demonstrated space heritage, including the manufacture and operation of our own satellite and sensor system, LISISAT, and we serve government, defense, intelligence, and commercial entities around the globe. We are strategically headquartered on Florida's Space Coast where we operate a 35,000 square foot manufacturing, assembly, integration, and testing facility. As space economy evolves from a niche sector to a mainstream industry, it's generating value across various fields and addressing global challenges such as military support, space exploration, and climate change. The impact of space in the satellite industry is becoming increasingly recognized, which is driving a growing demand for diverse, cutting-edge, space-derived data and solutions. Through our LizzySat platform, we offer customers a variety of mission options, whether customizing a satellite, hosting a payload, or delivering data to service. We developed the LizzySat platform, which achieved first launch success in March of 2024, as a cost-effective infrastructure platform specifically designed to provide technical flexibility. Our business model is somewhat unique in our industry. While others may have begun with a single technology and built constellations around that technology, we built a platform around technological advancement to support the growing global space economy. While we serve as a space mission enabler in multiple ways, we see a growing need for more diverse space-based Earth observation data and insights to allow organizations to make better decisions with higher confidence and with increased accuracy and speed. Through LIZISAT, we can host multiple sensors on the same satellite to simultaneously collect varying data types with the same collection geometry and also serve multiple markets and customers on a single satellite. This helps mitigate risks associated with external factors like macroeconomic shifts or technological disruptions, and it allows us to adapt swiftly to market changes. Another differentiator is our FeatherEdge AI system, which we use to analyze the data on orbit. Our product allows us to quickly integrate cutting-edge commercial off-the-shelf processors like NVIDIA and Google into our satellites to keep pace with increasing computing power. And because our FeatherEdge AI algorithms can be updated post-launch, we can expand the types of missions we serve from our existing on-orbit assets. We expect to enrich our onboard process data with customizable analytics that users control for their own use cases, and in turn, provide data as a subscription across multiple industries so organizations can improve decision-making and mitigate risk. Moving now to our recent accomplishments. We achieved a 90% year-over-year revenue increase during the third quarter, and we had notable achievements across all our lines of business. We successfully completed the primary objectives of the Autonomous Satellite Technology for Resilient Application, or ASTRA, in-space payload mission with NASA's Stennis Space Center and received a follow-on contract for additional ASTRA support. We secured a contract with Diomus Technologies to supply our FeatherEdge computing system for fire detection via high-altitude infrared imaging, and we were awarded a $2 million contract supporting the U.S. Navy Propulsion Program. In addition, we successfully completed the critical design review for LISISAT-NL, a laser communications satellite contracted by the Netherlands organization, which triggered a milestone billing for that multimillion-dollar satellite agreement. After the quarter closed, we announced that we were exclusively selected by Lone Star Data Holdings to design and build their first generation of data storage satellites and support their resiliency as a service business. Under the agreement, CITOS will serve as Lone Star's exclusive satellite manufacturing partner for six data storage satellites that will orbit the moon, offering advanced data storage and disaster recovery capabilities for mission-critical information. This demonstrates CITOS' ability to scale our LIVISAT platform to meet the constellation manufacturing and operational needs of diverse customers and missions, including lunar missions. In October, we secured FCC satellite approval for LISISAT 2 through 5 as part of a micro-constellation in lower Earth orbit. This key regulatory milestone marks a significant step in our on-orbit expansion plan and aligns with our long-term strategy to position ourselves to deliver a diverse and unique set of data for situational awareness for government, defense, intelligence, and commercial sectors worldwide. It is also a key milestone in helping us achieve higher revenues and improve margins. We continue to make strong progress on expanding our on-orbit footprint. LUSYSAT-2 has successfully completed testing and is ready for launch, which is slated for no earlier than December this year. LUSYSAT-3 is scheduled to launch shortly afterward in Q1 of 2025. Of course, launch schedules are subject to many factors, including several that are outside of our control. And we continue to demonstrate our commitment to delivering innovative, flexible, and cost-effective solutions. We recently announced our planned upgrade to our LizzySat communication system to integrate Iridium-enabled technology into future satellites. This upgrade will enable us to provide near real-time, direct-to-satellite phone messaging for a range of time-sensitive applications, and will position Citus as the leading provider of small-form, rapid data transmission services in the commercial space market. We also developed an advanced high-speed switch card that can be offered as a standalone product to support the small satellite supply chain. The new hybrid 3D-printed switch card extends the capabilities of the payload processor, enabling communication with multiple optical sensors through high-speed, low-voltage differential signaling data connections. Our recent achievements and results reflect side of some strong momentum as we focus on our strategic priorities of growing our customer base across multiple business areas while delivering performance excellence, advancing progress on our Lizzie set constellation, and driving innovation. Moving forward, we're seeing increased interest in our satellite manufacturing, data offerings, and long-term partnerships, especially following our successful launch. And our sales pipeline supports a strong growth outlook. Our proven ability to design, build, launch, and operate a 120-kilogram satellite is the obvious catalyst to the growth of our pipeline. We continue to submit a range of proposals and responses to solicitations to government and commercial customers. These proposals are under evaluation, and we expect to receive the results of contract decisions in the coming weeks and months. We anticipate continued growth in our pipeline and backlog with increased revenue recognition expected as our constellation expands. We have signed contracts for subscription-based data as a service for upcoming satellites, and we expect additional data contracts over the life of the satellite. As we look ahead, our on-orbit expansion and Louisiana strategic upgrades position Citus to expand our capabilities and drive continued growth. As we look at our financial results and projections, it's important to describe the diversity in our business model as it relates to types of contracts and margins and year-over-year comparisons. Our manufacturing and satellite contracts take varying forms, firm fixed price, time material, and milestone or progress payments. This results in inconsistent or lumpy revenue recognition quarter over quarter. Our contracts are made up of a mix of material and labor expenses, and those expenses can occur at different times over the life of a contract. Because of this, quarterly comparisons are not necessarily indicative of expected annual results. And now I hand the call over to Bill to discuss our financial highlights.