Greetings. And welcome to Sidus Space, Inc.'s 2025 Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. Please note this conference is being recorded as of today, November 14, 2025. I will now turn the conference over to Adarsh Parekh, Chief Financial Officer. You may begin.

Good evening, everyone. And thank you for joining us for Sidus Space, Inc.'s 2025 third quarter earnings conference call. Joining us today from the company is Carol M. Craig, Chairwoman 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 our current expectations with respect to the future of our business, the economy, and other events, 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. We also expect to discuss certain financial measures and information that are non-GAAP measures as defined in the applicable SEC rules and regulations. Reconciliations to the company's GAAP measures are included in the management discussion and analysis of financial conditions and results of operations section within Sidus' 10-Q. 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. Good evening, and thank you all for joining us. On our second quarter earnings call, we shared that Sidus Space, Inc. is evolving into a diversified space and defense innovator. Not just a satellite manufacturer, but a company with capabilities that span the full mission life cycle, from low Earth orbit to the lunar environment and beyond. In the third quarter, we continued executing on this strategy by expanding our vertical integration, advancing our LizzieSat constellation, and strengthening partnerships that support both commercial and defense customers. Our goal remains clear: to deliver full-spectrum solutions from design and manufacturing to on-orbit operations and data services, with the agility to meet evolving mission requirements. We are building a company designed for long-term sustainable growth driven by innovation, dual-use and software-defined satellites, all-domain computing solutions, and recurring data-as-a-service opportunities. Over the past eighteen months, we have proven our ability to design, build, launch, and operate advanced multi-mission satellites with extended design life and complex functionality. These are not CubeSats; they are precision-engineered microsatellites built to deliver mission-critical performance. Our vertically integrated model enables scalability and efficiency, allowing us to adapt our manufacturing facility quickly to new priorities. Like our products, our operations are designed for adaptability and speed. Sidus Space, Inc. is already a trusted part of the space supply chain, and our offerings now extend across civil, defense, and commercial markets. This diversification strengthens our ability to support national security programs, including Golden Dome, SDA's proliferated architecture, and NASA's Artemis initiatives. Our multi-mission all-domain approach represents a new model for how space companies operate, combining agility, integration, and strategic focus to meet diverse customer requirements. For those who are new to our story, Sidus Space, Inc. has consistently executed while adapting to a very dynamic environment. During the third…

Thank you, Carol. At Sidus Space, Inc., 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 2025 carried into 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 2025, we continued our progress in establishing Sidus Space, Inc. as a mission enabler. Our rich space and defense heritage positions us to take advantage of opportunities across multiple sectors, with a combined focus on commercial space innovation and national defense priorities. Let's review our results starting with the nine months ended September 30, 2025. Total revenue for the first nine months of 2025 was approximately $2.8 million compared to $3.8 million in the same period in 2024. While this reflects a decrease of about $1 million or 27%, the change aligns with our strategic shift away from legacy contract work toward higher-value commercial space and AI-driven solutions. This repositioning is intentional and expected to generate more sustainable recurring revenue in future periods. The impact of milestone-based revenue recognition also influenced year-over-year performance and comparison. Cost of revenue rose to approximately $8 million, a 48% increase from $4.6 million during the first nine months of 2024. Key contributors to the cost of revenue included a $1.6 million increase in depreciation tied to satellite and software investments, a changing contracts mix requiring greater material and labor inputs, ongoing global supply chain pressures impacting manufacturing operations. Gross loss for the period was approximately $4 million compared to a…

Thank you, 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 Space, Inc. 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 technologies, designs, and capabilities now span the full spectrum of space, from LEO to GEO to lunar missions, expanding our relevance and reach. Whether hosting government payloads in orbit, enabling Edge AI for real-time data delivery, or contributing to long-term lunar infrastructure, we are building a presence that touches every layer of the evolving space economy. Sidus Space, Inc. is not just building satellites; we are enabling the next generation of real-time intelligent data connectivity by linking sea, ground, air, and space into one integrated domain. This sea-to-space diversification strategy reduces reliance on any single market segment and is central 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 give 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. And as you have heard today, Sidus Space, Inc. continues to shift from R&D and infrastructure build-out to commercialization and revenue generation. We have launched and begun commissioning our third satellite, established the foundation for a scalable micro constellation, and introduced a new generation of rugged dual-use technologies. Lean operations allow us to operate with lower fixed…

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. Please disconnect your lines and have a wonderful day.