Greetings and welcome to the Sidus Space Fourth Quarter 2024 Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to hand the call over to management.

Good evening everyone and thank you for joining us for Sidus Space's Fourth Quarter and Full Year 2024 Earnings Conference Call. Joining us today from the company is Carol Craig, Chairman and Chief Executive Officer; and myself, Adarsh Parekh, Chief Financial Officer. During today's call, we may 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 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 Carol. Carol, please go ahead.

Thank you, Adarsh and welcome everyone on this last day of Women's History Month. On today's call, I'll outline our key accomplishments during 2024 and Adarsh will present the financial highlights for the same period. I'll then discuss our 2025 outlook, after which, we will address previously submitted Q&A. 2024 was a defining year for Sidus Space, a year in which we validated our technology, expanded our constellation, grew our customer base, and secured key strategic contracts and partnerships that position us for growth and long-term success. Just over three years ago, we became a public company through a traditional initial public offering, or IPO, and in the past 12 months, we've evolved from a space manufacturing and services company into a full-fledged space technology and an AI company, focused on delivering mission-critical AI-powered space data solutions with 3 LizzieSat satellites designed and manufactured by Sidus now on orbit. The last couple of years, we're focused on demonstrating that our decade-plus of heritage experience translates to success no matter what the mission or goal. Our first launch success with LizzieSat-1 was quickly followed by the launch of two more operational satellites and we're now ready to expand our reach into new markets and new customers. We continue to focus on four key principles; strong revenue diversity and growth; scaling production capabilities; pursuing breakthrough developments on advanced technologies that could create new markets; and leading our industry to reimagine space access. As we move up the value chain from a trusted supplier to a strategic platform provider, our year-over-year revenue decline is the result of a deliberate strategic shift in 2024, toward prioritizing higher margin revenue streams, our satellite design, manufacturing and launch, and building a more robust pipeline, efforts we believe will lead to a significant increase in our backlog.…

Thank you, Carol. I'm excited to share our fourth quarter and full year 2024 financial results, which reflect our continued progress in executing our long-term strategy. Over the past year, we've made significant investments in our AI-driven space data service, expanded our satellite constellation, and improved operational efficiencies, all of which is essential to our transition from a primarily manufacturing-driven revenue model to a much more scalable, high-margin data and technology services business. As we have continuously reinforced, we often see lumpy contract awards from quarter-to-quarter and year-to-year because of our portfolio of capabilities. However, as we transition to data and technology services, we expect to see smoother and more stable revenue trends as well. While we have maintained a strong foundation in manufacturing and subcontracting work, the successful deployment of our LizzieSat constellation positions us for future revenue growth in AI-powered space intelligence and real-time data delivery. Today, I'll walk through our financial performance, key drivers behind our results, and how we're strengthening our position for the next phase of growth. So, now on to our 2024 financial results. Total revenue for the 12 months ending December 31st, 2024 was approximately $4.7 million, a decrease of $1.3 million or 22% compared to total revenue for the 12 months ended December 31st, 2023. This decline reflects Sidus' intentional strategic shift of the value chain, from a trusted component supplier to a provider of higher-margin mission-critical solutions, including data services, advanced technologies, and satellite manufacturing for both internal use and external customers. This shift included strengthening our pipeline of opportunities with an estimated $200 million in identified opportunities, including approximately $78 million in proposals submitted throughout 2024. Cost of revenue increased 42% for the 12 months ended December 31st, 2024 to approximately $6.1 million as compared to approximately $4.3 million for…

Thanks, Adarsh. As our multi-mission constellation grows, our technology portfolio expands, and our satellite design and manufacturing capability extends outward to government and commercial customers, 2025 is about execution, delivering measurable value through mission-driven innovation and operational excellence, while maximizing the value of our assets. We're focused on sustained growth, profitability, and realistic disciplined projections. Our broad and diverse product line is built for cost efficiency and global reach supported by robust ITAR-compliant processes and procedures. We have the heritage, we have the technology, we have the track record, now the focus is on achieving EBITDA positivity and generating free cash flow. As Adarsh mentioned, as we shifted to an increased focus on broader, higher-margin services, we continue to strengthen our pipeline of opportunities with an estimated $200 million in identified opportunities, including approximately $78 million in proposals submitted throughout 2024. This growth is a direct result of successful launches, manufacturing capabilities, and AI development as well as a focused effort to pursue larger and more strategic opportunities. We're submitting bids on a consistent cadence. And while there is no certainty in the outcome, we believe that converting even a portion of these opportunities will result in a significant increase in backlog. Our goal is diversification to spread our exposure across different markets, products, or customer segments. The constantly evolving space ecosystem is susceptible to economic shifts, supply chain disruptions or change in consumer trends and diversification can help offset the impact reducing overall business risk. Unlike companies focused on a single technology, we've deliberately built a platform that can evolve with the industry. Our architecture is designed to mitigate technological obsolescence, enabling rapid integration of new technologies, and supporting a true multi-mission environment, both at the satellite and constellation level. Ultimately, our aim is to demo cost-efficient, steady operational…

The first one is, despite Sidus' operational milestones and strategic advancements, the stock price has not reflected this progress. What factors do you believe are contributing to this disconnect? And how do you plan to address it? So, I completely understand the frustration some investors may feel when looking at our stock performance relative to the significant milestones we've achieved. Over the past year, we've successfully launched three satellites, expanded our AI-driven data services, secured key government and commercial contracts, and strengthened our global partnerships. By all operational metrics, Sidus Space is executing on its strategy and building a strong foundation for the future. However, stock performance is influenced by a variety of external factors beyond our operational success, broader market conditions, sector-specific trends, and macroeconomic forces, all play a role. The space sector, in particular, has seen volatility over the past year, impacting valuations across the entire industry. That being said, our focus remains on executing our long-term strategy, scaling our AI-driven space data business, and demonstrating our value through continued execution. We're confident that as we further expand our Data-as-a-Service model, strengthen recurring revenue streams, and continue our disciplined financial management, the market will ultimately recognize the full potential of Sidus Space. We remain committed to creating value for our shareholders and we'll continue to engage with the investment community to ensure our progress and future opportunities are well-understood. The next question is, can you provide insight into Sidus' approach to capital strategy moving forward, specifically what level of dilution should investors anticipate as the company continues to scale its operations? Sidus Space is still in the early stages of scaling our business and like many innovative technology companies, we require upfront investment to develop and prove out our capabilities. As a small, but rapidly evolving space technology and AI company, our investment profile is asymmetrical, meaning that while the initial phase requires significant capital to build and launch our infrastructure, once in place, those assets become powerful revenue-generating tools with significantly lower ongoing capital needs. Over the past year, we've made strategic investments in our satellite constellation, AI-driven data services, and key partnerships to position Sidus as a leader in space-based intelligence. And these investments are designed to create long-term value. We're already seeing momentum as we shift from a purely hardware manufacturing-driven model to a higher-margin constellation and Data-as-a-Service business. And in terms of dilution, we recognize that managing our capital structure responsibly is really critical. While raising capital is sometimes necessary to support key growth initiatives, we remain focused on executing in a way that maximizes shareholder value. As we expand our revenue streams and scale our recurring data services, we anticipate needing significantly less external capital over time as we'll be leveraging the infrastructure we've already built to generate revenue. Our goal is to reach a point where the business is increasingly self-sustaining and we continue to evaluate all available options to balance growth with prudent financial management.

I want to personally thank our team, our partners, and our investors for your continued support and confidence. We appreciate everyone taking the time to listen today. We are excited about 2025 and we are looking forward to the next year of growth for both Sidus and the space industry. Thank you so much.

This concludes today's conference. You may disconnect your lines at this time.