Ladies and gentlemen, greetings and welcome to the Sidus Space Third Quarter 2024 Results and Business Update Call. At this time, all participants are in a listen-only mode. [Operator Instructions]. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Bill White, CFO of Sidus 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.sidusspace.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, Sidus 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, LizzieSat, 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 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, which is driving a growing demand for diverse, cutting-edge, space-derived data and solutions. Through our LizzieSat platform, we offer customers a variety of mission options, whether customizing a satellite, hosting a payload, or delivering data as a service. We developed the LizzieSat 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…

Thank you, Carol. It's a pleasure to be here today to discuss our third quarter 2024 financial results. At Sidus, we continue to focus on growing revenue and delivering operational excellence, while also working to manage our operational expenses. We're committed to rapid innovation, adaptable, and cost-effective solutions. We have invested in the growth of our company through capital expenditures on our satellites, research and development, and the implementation of a robust ERP system. Now on to our 2024 third quarter financial results. Total revenue for the three months ended September 30, 2024 was approximately $1.9 million, an increase of approximately 900,000 or 90% compared to a total revenue for the three months ended September 30, 2023. This increase was primarily driven by satellite-related revenue and the timing of fixed price milestone contracts as compared to the prior year. Cost of revenue increased 69% for the three months ended September 30, 2024 to approximately $1.8 million as compared to $1.1 million for the three months ended September 30, 2023. The increase was primarily driven by our mix of contracts with higher material expenses, vice labor, shifts in milestone payments for our higher margin satellite-related business, and higher depreciation costs associated with the monthly depreciation of our first satellite asset deployed March 2024. Depreciation will continue to impact cost of revenue until we can generate a high volume of satellite and data-related revenues which have higher margins to offset related depreciation expenses. Our gross profit for the quarter ended September 30, 2024 increased 140% to approximately $38,000 compared to a loss of approximately $96,000 for the three months ended September 2023. Gross profit margin was 2% for the third quarter of 2024 as compared to a negative 10% for the third quarter 2023. Again, this was mainly due to favorable mix…

Thank you, Bill. With over eight months of LizzieSat operating in orbit, Sidus Space is entering an exciting phase of growth as we continue to execute our strategic priorities. Our 3D printed AI enhanced LizzieSat are central to our future high margin data as a service business model which focuses on the integration of multiple sensors and technologies in a single satellite. These satellites also enable simultaneous data collection that can support industries such as agriculture, maritime, oil and gas among others. We are committed to expanding further into these sectors to generate additional revenue ultimately increasing the value for our shareholders. Our next two satellites are in advanced stages of production and are scheduled for launch within the next four to six months. We are diligently executing our plan to build a unique multi-mission constellation and the proactive steps we took early on such as securing a multi-launch agreement with SpaceX and purchasing subsystems with long lead times are enabling us to deliver a steady cadence of launches to meet the customer demand that we promised. The success we've already achieved with our very first satellite has strengthened the confidence of our team, industry partners, current and potential customers and shareholders alike. The confidence from that first launch success and our ability to scale our unique LizzieSat platform to provide cost-effective solutions for others was demonstrated by the Lonestar Constellation Award and we look forward to beginning the design and build of the sixth lunar Lizzie Satellites for their moon mission. I want to express my sincere gratitude to all our shareholders for your continued support of Sidus. Whether you've been with us from the beginning or have recently joined, you are an integral part of our journey as we create unprecedented access to space. I remain fully committed to restoring shareholder value and am optimistic about the higher revenue streams we anticipate from our satellite manufacturing and space data as a service constellation. Thank you to all for joining us today for Sidus Space's third quarter 2024 earnings conference call. I'll now ask the operator to close the lines.

Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.