Greetings and welcome to the Sidus Space First Quarter 2025 Results Conference Call. [Operator Instructions]. It is now my pleasure to introduce Adarsh Parekh, Chief Financial Officer. Please go ahead.

Good evening everyone and thank you for joining us for Sidus Space's 2025 first quarter 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 would like to turn the call over to Carol. Carol, please go ahead.

Thank you, Adarsh, and welcome everyone to the first quarter 2025 earnings call. On today's call I'll outline our key accomplishments during Q1 and Adarsh will present the financial highlights. I'll then share our outlook for Q2 and beyond. The first quarter of 2025 marked another major step forward in Sidus Space's evolution toward becoming a vertically integrated, diverse, multi-domain service provider, while our current operations remain space focused. We're preparing to scale our capabilities across air, sea, and terrestrial environments, powered by a new generation of rugged dual-use technologies that will redefine how missions are executed in challenging domains. Our mission has always been to deliver reliable, scalable, and intelligent solutions from initial design through full deployment and our smart vertically integrated model along with our innovative culture continues to be our strategic advantage. It allows us to innovate faster, control quality across the product lifecycle, and bring advanced technologies to market more efficiently than traditional aerospace providers. In Q1 we celebrated a major achievement with the successful launch of LizzieSat-3 on March 14th. This marks our third satellite and another step in building a fully operational data generating micro constellation. We're currently completing satellite commissioning for LS3 and successfully demonstrated operation of our advanced onboard edge computer FeatherEdge Gen 2. Additionally, we've successfully established communications to the first of our customer payloads. Once fully online, LS3 will expand our ability to deliver near real-time Earth observation data and onboard AI processing, unlocking a new revenue channel via data-to-service offerings to commercial and government users. This transition from development to commercialization is foundational to our 2025 growth strategy. One of our most exciting developments is the Sidus Orlaith AI ecosystem, a modular pairing of our FeatherEdge hardware and our Cielo software. Orlaith is built for near real-time autonomous decision-making…

Thank you, Carol. At Sidus, we continue to build a scalable, vertically integrated company across space, technology, and artificial intelligence. Our focus remains on operational excellence, rapid innovation, and delivering cost-effective, high-impact solutions for our customers. Our investments to date have centered around expanding our satellite constellation, advancing innovation, and implementing a robust ERP system to support scale and profitability. As Carol has noted, 2024 was a foundational year for Sidus, one in which we validated our core technologies, grew our customer base, and secured critical strategic partnerships. That momentum has carried into the first quarter of 2025, which reflects both our transition to commercialization and the near-term financial impacts of scaling a deep-tech, space-based enterprise. Let's review our first quarter results. Total revenue for the three months ended March 31, 2025, was approximately $238,000, a decrease of $812,000, or 77%, compared to Q1 2024 revenue of $1.05 million. This decrease was expected and primarily driven by the timing of fixed price milestone contracts and our intentional shift away from legacy contract work to focus on commercial, space-based, and AI-driven solutions. Cost of revenue for Q1 2025 increased 93% to approximately $1.9 million, compared to $966,000 in Q1 2024. Key drivers included satellite and software related depreciation increase of $611,000, a mix of contract types with higher material and labor inputs, and continued pressure from global supply chain costs in our manufacturing operations. Depreciation will continue to impact cost of revenue until we generate satellite and data related revenues, which have higher margins to offset the related depreciation expense. Gross profit for Q1 2025 was a loss of $1.6 million, compared to a profit of $84,000 in Q1 2024. This reflects increased depreciation, a shift in contract mix, and reduced contribution from legacy high margin services as we transition to…

Thank you, Adarsh. As you heard today, Sidus is in the midst of a pivotal shift from R&D and infrastructure build-out to commercialization and revenue generation. We've successfully launched and have begun commissioning our third satellite, laid the foundation for a scalable micro-constellation, and introduced a new generation of rugged dual-use technologies. While Q1 reflects the near-term financial impact of that transformation, we are confident in our long-term trajectory. We've strengthened our balance sheet, launched high-potential new platforms like Orlaith, and are poised to generate revenue from diversified initiatives in the second half of the year. The path we've chosen is ambitious, but it's the right one for unlocking meaningful, sustainable growth. Most importantly, I want to thank our employees, our partners, and our shareholders for your continued trust and support. We look forward to delivering strong progress in the months ahead.

Thank you. This does conclude today's teleconference. We thank you for your participation. You may now disconnect your lines.