Greetings and welcome to the Sidus Space Second Quarter 2024 Results and Business Update. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] It is now my pleasure to introduce your host, Bill White, the CFO. Thank you. You may begin.

Good evening, everyone, and thank you for joining us for Sidus Space’s second quarter 2024 earnings conference call. Joining us today from the company is Carol Craig, our Chairman and Chief Executive Officer 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 Securities and Exchange Commission, each of which can be found on our website www.sidusspace.com. Listeners are cautioned not to put any undue reliance on forward-looking statements, and the company specifically disclaims any obligations 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 Carol Craig. Carol, please go ahead.

Thank you, Bill, and welcome, everyone. For those of you who may be new to our company and our mission, Sidus Space is a provider of comprehensive space infrastructure solutions that include space-based data-as-a-service on our proprietary on-orbit satellite platform. We are U.S.-founded and based in Cape Canaveral, Florida, near Kennedy Space Center, where we operate from a 35,000-square-foot manufacturing facility. We support space manufacturing for other companies while also managing our expanding constellation focused on AI-enabled data-as-a-service. Our Mission Control Center is located in Merritt Island, Florida, also part of the space coast. As the 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, driving a growing demand for space-derived data and solutions. What sets us apart is our holistic approach to addressing our clients' most pressing challenges. We offer cost-effective solutions with deep expertise across the entire space lifecycle, from hardware manufacturing, to space-based status delivery, and mission planning and operations. Unlike other constellation operators who focus on a single business line, such as specific earth observation sensors, or particular customer segments like the Department of Defense, we have the benefit of optionality. We're not dependent on a single line of business or customer. This diversity mitigates risks associated with external factors like macroeconomic shifts or technological disruptions. Our flexibility allows us to adapt quickly to market changes, supporting growth across all our business lines. We're currently generating revenue and have been for well over a decade and are growing our pipeline across all our businesses. The hard work of the last couple of years has led us into a period of tremendous activity and…

Thank you, Carol. It's a pleasure to be here today to discuss our second quarter 2024 financial results. As Carol mentioned, successfully launching LizzieSat into orbit was a major achievement for the company and a key milestone in our strategy to drive Sidus towards higher revenues and improved margins. As with any first-time endeavor, we learned valuable lessons from the successful launch and deployment of our initial satellite. These insights have been applied to our current satellites in production, including LizzieSat-2, which is scheduled for launch later this year. We are eager to see the advancements and improvements once these satellites are in orbit. As technology continues to evolve rapidly, we are committed to enhancing our own capabilities to expand our customer base and optimize our data revenue streams as part of our growing business portfolio. In addition to technology, we have invested in the growth of our company through capital expenditures on satellites, research and development, and the implementation of a robust ERP system. Now on to our second quarter 2024 financial results. Total revenue for the three months ended June 30, 2024 was just under $1 million, a decrease of approximately $440,000 compared to total revenue for the three months ended June 30, 2023. This decrease was primarily driven by the timing of fixed price milestone contracts, fewer satellite-related revenue payments in the first-half of 2024, and delayed timing of expected contract awards, including those tied to related party contracts. Cost of revenue increased 105% for the three months ended June 30, 2024, to approximately $1.8 million, as compared to $860,000 for the three months ended June 30, 2023. The increase was primarily driven by our mix of contracts with higher material expenses, vice labor, shifts and milestone payments for our higher margin satellite-related businesses and higher depreciation…