Greetings, and welcome to the Sidus Space Second Quarter 2025 Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to introduce the management team with Sidus Space. Thank you. You may begin.

Good evening, everyone, and thank you for joining us for Sidus Space's 2025 Second 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. On today's call, I'll start by outlining our key accomplishments for the quarter, along with the strategic direction that continues to guide our growth across government and commercial markets. Following that, Adarsh will provide a detailed overview of our financial results, and I'll return to share our outlook for Q3 and the remainder of the year, including how we plan to build on our momentum. Q2 was a pivotal quarter for Sidus Space as we continue to advance our mission of transforming space access and delivering vertically integrated solutions across hardware, software and data. We remain focused on execution across 3 core growth areas: satellite manufacturing and integration, space-based data and AI services and commercial product lines, including our high-performance onboard computing system, Fortis VPX. At Sidus, we believe we have capabilities and capacity like no other, agility to scale, creativity to innovate and differentiation to create long-term value. We're not just building technology. We're building the foundation to expand across new markets, delivering recurring revenue and leading in an evolving space economy. Additionally, the uniqueness of our capabilities and offerings while maintaining lean operations means that we are one of the few vertically integrated space companies with the ability to design, manufacture and operate space hardware and data platforms entirely in-house. This gives us speed, control and adaptability that few, if any, can match. So to provide you with operational highlights, I want to start with our most recent success on orbit. We completed commissioning of the ADCS system on LizzieSat-3 with cutting-edge autonomous, machine learning-powered onboard GNC software to enable full autonomous pointing and set the stage for solar array deployment and payload activation. This demonstrates the ability of our satellites to accept technological software advancements while on orbit. This also represents a major step…

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 on expanding our satellite constellation, advancing innovation and implementing a robust ERP system to support scale and profitability. Momentum from 2024 and the first quarter of 2025 carried into the second quarter of 2025, which reflects both our transition to commercialization of dual use, multi-domain products and the near-term financial impacts of scaling a deep tech space-based enterprise. During the second quarter of 2025, we continued our progress establishing Sidus space as a space mission enabler. Our rich space and defense heritage positions us to take advantage of opportunities across all sectors with a combined focus on commercial space innovations and national defense priorities. Let's review our results starting with the 6 months ended June 30, 2025. Total revenue for the first half of 2025 was approximately $1.5 million compared to $2.0 million in the same period in 2024. While this reflects a decrease of $478,000 or 24%, the change aligns with our strategic shift away from legacy contract work toward higher-value commercial space-based and AI-driven solutions. This repositioning is intentional and expected to generate more sustainable recurring revenue in the future periods. The impact of milestone-based revenue recognition also influenced the year-over-year comparison. Cost of revenue rose to approximately $4.2 million, a 52% increase from $2.7 million in the first half of 2024. Key contributors included a $1.1 million increase in depreciation tied to satellite and software investments, a changing contract mix requiring greater material and labor inputs, ongoing supply chain pressures impacting manufacturing operations. Gross profit for the period was a loss of $2.7 million compared…

Thanks, Adarsh. The milestones we achieved this quarter are more than operational wins. They create pathways to future revenue across commercial, civil and defense markets. Each satellite launch, hardware delivery and AI demonstration strengthens our track record and reinforces Sidus as a trusted partner for critical missions. Sustaining that momentum requires constant innovation, which is why we continue to invest in internal R&D, advance new technologies and grow our patent portfolio to protect our IP and increase the value of our platform. Our presence now spans the full spectrum of space from LEO to GEO to lunar missions, expanding our relevance and reach, whether hosting government payload in orbit enabling edge AI for real-time data delivery or contributing to long-term lunar infrastructure, we're building a presence that touches every layer of the evolving space economy. This from Sidus Space diversification strategy reduces reliance on any single market segment and essential to driving long-term sustainable growth. Our mission remains the same: deliver reliable, scalable and intelligent solutions from initial design through deployment. Our vertically integrated model and culture of innovation gives us a strategic advantage, allowing us to innovate faster, control quality across the life cycle and bring advanced technologies to market more efficiently than traditional aerospace providers. As you've heard today, Sidus is at a pivotal inflection point, shifting from R&D and infrastructure build-out to commercialization and revenue generation. We've launched and began commissioning our third satellite, established the foundation for scalable micro constellation and introduced a new generation of rugged dual-use technologies. Lean operations allow us to operate with lower fixed costs, competitive prices and pursue strategically valuable contracts that may be overlooked by larger players. And while we do not expect to turn a profit in 2025, we're building meaningful momentum and a stronger foundation for the future. We've strengthened our balance sheet, launched high potential new platforms like Orlaith and Fortis VPX and are positioned to generate diversified revenue in the second half of the year. The path forward is ambitious, but it's the right one for unlocking sustainable growth. Our multi-domain, multi-revenue model enables us to adapt quickly, serve diverse customers and scale with demand. So in closing, I want to thank our employees, partners and our shareholders for your continued trust and support. We look forward to delivering strong progress in the months ahead. Thank you.

With that, this does conclude today's teleconference. We thank you for your participation. You may disconnect your lines at this time.