Momentus (MNTS) 7 Mar 232022 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the Momentus, Inc. Fourth Quarter 2022 Earnings Conference Call.

I would now like to turn to call over to Darryl Genovesi, Vice President of Investor Relations. Please go ahead.

XXXX year quarter call. earnings fourth Difficulty] and XXXX fiscal conference [Technical Directors, Dennis me Rood, Chairman Company of John today of well Executive Board With are the Chief here Financial Interim Mahoney, Chief Officer of its as Officer. as and prepared provide remarks. will Each

time, remarks, to of one one follow-up. would these question the prepared from In you will and we Following ask questions that take analysts. interest we yourself limit brief

Relations issued we highlights available press release which a of made overview presentation Investor and for the financial a and on year. slide our our Earlier website, quarter and an provides today, business the

You can a of presentation the release download at investors.momentus.space. slides copy and

and call, Section the Exchange Section the will we forward-looking certain Act meaning of today’s XXXX. XXA statements Securities of the within XXXX XXE During of of make of Act

Forward-looking cause future risks and predictions, based are in current statements expectations events a forward-looking the future uncertainties. assumptions, and this differ projections Many subject on communication. statements about actual result, that and events could as to are and materially from to statements are other factors

that You understanding call the intentions statements expectations in to actual results different today’s the with and disclosed the be plans, make. should we forward-looking from may listen materially our

forward-looking statements, differ be statements, forward-looking with company call. Commission. the may that actual Exchange For the discussed put about as the are reliance cautioned and and this Readers on filings company’s we well disclaims more to the during Securities may to press information any not specifically that statements update obligation factors undue issued please the release results from to earnings cause to materially forward-looking refer today as

call. on to certain Please also note we that non-GAAP financial information refer today’s will

a in release. financial reconciliations GAAP substitute of performance for the to earnings of accordance superior is non-GAAP financial the GAAP. prepared None press You our to measures with financial comparable measures measures in these can or find non-GAAP most of measures

Rood. Officer, like and our turn Chief call John to the Chairman With that, over to I’d Executive

Darryl. company’s after as I’m also you, through and earnings take CFO, comments for an our make of financial the you for the in thank XXXX I Dennis to as pleased delighted here Dennis the I’m well Mahoney overview plans XXXX Interim as in far call Well, his first progress my our give will highlights. have to so future. you

X. and Turning of to great goal XXXX far being our market Slide in one leaders the of took transportation Momentus in-space strides XXXX toward in infrastructure so services. and in

service of that in one We a launched orbital this the market. companies have are of small vehicles to serve number space

Orbital made of conducting progress the technology have Vigoride XXXX. launch on development, our significant called We X first May our Vigoride Service in Vehicle of

was Canaveral, Low X launched from the Earth SpaceX Orbit Transporter-X into Florida Vigoride mission. Cape on

on Transporter-X by a vehicle addition Pomona. X These third-party. using mission, University made Polytechnic the and launching Vigoride the satellites orbit. State In The X to deployer Vigoride from the into on were for Momentus systems, NTNU, Momentus at launch Orbit California this port in FOSSA deployer, satellites second X X use a placed

We customer a named. to not publicly fourth carry prefers also be from payload who the

followed our from was configuration X.X new launch January year incorporated second vehicle, mission. this X of Vigoride learned then by in of Our and lessons with our Vigoride Block inaugural a a is Vigoride launch and ship which improvements X Vigoride lead X early the

undergoing where coming orbit, prepare the in Vigoride Microwave Electrothermal space is in to electricity to and a ability health continue to a and orbit hosted we wirelessly transmit low commissioning space its collect earth. from it that back in the support orbit, satellite cutting Maneuver the customer fire earth Caltech in X edge to payload the aims energy to in place as good now is process demonstrate is spacecraft deliberate in weeks. solar and and in Thruster

XXXX, we I’m then ground-testing Space its Review of report to months mission launch we Vigoride the Force site and a shipped the Flight We launch Base to that Vigoride to spacecraft X the conducted for on X Vandenberg are Vigoride of we targeted at X. in During California, Readiness track the intend to next assembly, on launch where month. vehicle. SpaceX been X integrated it pleased SpaceX has onto Transporter-X next first launch

We’ve program industry functions engineering at impressive leading development, with the We companies of management, decades capabilities veterans and operations defense of for space our manufacturing leaders chain year. really strengthened and our engineering, industries. over composed and group of an technology past operations experience in and assembled supply

the contributor. culture. chart agility Momentus experienced the the these interplay of top produced and the to early in the the combines chart enterprises, recruited trained stronger talent engineering below organization We’ve of strength down below team with the organization and between innovation people the outstanding stage of highly has a backgrounds level individual also the a

highly organizational spacecraft structure experienced our our our its peers. of develop, our development more team gives to advantage and enable test mature and and engineering development more believe spacecraft, support We to documented competitive processes over streamlined components. We and assemble us engineering rapid a our

Vigoride relative are on earlier we vehicle, the issues of only X what Vigoride which than Vigoride our represented do not we also rapidly. assembly Vigoride fewer did X of X. and evident, encounter resolving And issues the to far as testing we results technicians engineers we Vigoride already encountered assembly during seeing more mature, we’re we our relative the X, processes To XX% and as test The non-conformances are and the X. progressively experienced to issues specific, on that big a be production during fewer reported improvement fewer

All our the of Vigoride reliability in increased Vehicle. gives of Service confidence Orbital us this

improved, gains Vigoride [we with our hours faster X, see X fewer and is completed] we already vehicle assembly continued underway. Vigoride X substantially similarly labor [ph] next to than during has of testing production Productivity expect and the that Vigoride productivity

LuxSpace, customers, how CONTEC. follow contracts as has X NASA, additional X interest Vigoride with CUAVA with from customer as pleased and well recently our trending. secured several been orders We’re We customers including on of

Memorandum collaboration companies. two during a its with the satellites Sidus Space explore launching signed LizzieSat our also generally of onboard between to Understanding in Vigoride XXXX Momentus foster

call, mentioned I represent last Defense on started can business departments grow with the major part and these like on to our earnings U.S. Momentus ultimately to government NASA, As our customers growing focus Department we and our agencies a has think of business.

is the in big difference the hired led lead new government and he effort, civil defense Kinman, Chief To and as making for business Department us Officer. satellite their to this comes Systems, more growth brings in development our for experience capture we’ve Space in Chris Chris from already and driving a Community. Grumman Chris payload where Northrop us. opportunities the Defense team and space Intelligence sectors, he of X decades than commercial Commercial

and today. tools with profitable better and interim processes companies. a Financial that financial Executive cybersecurity, Dennis During improved traded defining one negotiated Senior has acquisitions been and X and and deep Mahoney, should user with He workforce hired We’ve and productivity. the finance experience we systems, growth has strategy, better comes new and X our and of CFO experience company at CFO, driving a processes or closed operations companies. here XXXX, technology to Momentus in scaling our tools He publicly accounting also improve is who for IT Dennis improved us sale.

Dennis We’re to really have board. happy on

You’ll in our him a hear financials. from just about QX minute

including obligations before from we’ve a retiring some lawsuit. few the last public, class the legacy progress just and made settling was weeks, company Over action

We million and successfully proceeds divested million also an Momentus to from were founders of has former $XX a The U.S. $XX company. company X or share raised purpose. investor. a for the the gross in the million do XXXX the this SRA, $XX institutional from ownership the concerns of agreement, roughly payment foreign for founders in repurchase paid January previously company final Government

is is economy. capital million issues, in to for the space of provide total growing the the forward company these to Retirement with equivalent vision to investment the meet move provided which the the way specified SRA. Momentus obligations its backbone $XX for infrastructure to the services The to here in SRA,

mission X allows X. next previous that call from for payloads is second this our include Turning capable X.X of us Block compared more bay a vehicle Vigoride swap a much early launched modular vehicles. X to to Improvements generation year, additional January which to our we We customer is In Vigoride propellant. that configuration, payload Slide spacecraft. Vigoride our with our

Electrothermal enhanced payload Microwave and MET, its which capabilities onboard allow generation Vigoride hosting Thruster, next or designed Our is to predecessor, than capable host to X. us more from that Caltech be experiments multiple

is Orbit from completed. now in Turning launch to Earth separation undergoing Slide X Vigoride of Vigoride X. Low has Launching vehicle X the commissioning. been

activities power and commissioning ranges. remains continued The Recent and nominally X downlink vehicles I a fully operations pressurization deployed the the propulsion completing in and generating the do with solar in are arrays have determination vehicles and advanced As good commissioning the nominal vehicle healthy. might system with attitude both the communications included systems uplink Vigoride thermal to of system. are health add, power

As of of commissioning the and now Momentus returning camera spacecraft, campaign, a has images been evaluation. the spacecraft been for activated uses has engineering part which

collected images is now. displayed we’ve One of the

to to demands a innovative engine, a microwave coming to and weeks, water creates energy. this the which meet prioritize a the is expelling Electrothermal Momentus thrust the plasma infrastructure designed a hot reaction, Momentus produce testing for and create aims transportation efficient, nozzle. technology. In Thruster, to gases designed Momentus through MET extremely Using as using will Microwave propellant environmentally through offer and MET. in-space cost effective, safe friendly is MET vehicles pioneer use chemical rocket The MET, is a conventional the the thrust a commercializing by propulsion Unlike thrust rocket and or services. in

through to using operate to Vigoride to plan We the ability test maneuver flight powered orbits MET. its in and different space

Caltech’s Vigoride to plan mission. entirety desired its we deploy the payload satellite will Qosmosys for X in host its of orbit, While

the the space, during technology. our mission, apply in obligations knowledge This is technology and for [ph]. mission, the learned is inaugural that our lessons only gained meet to [fly mission case to was our our test improve perform through our planned and can customers the intention our reserves] to be harder As flight

Turning Slide X. to

next satellites mission TASSA. Vigoride on or commercial The Tape Solar NASA, for X, as to as payloads customers, includes Beyond Array Vigoride targeted plan we for well the month. Spring manifest Vigoride X X prototype SpaceX Momentus launch several of X Transporter-X a for

mission. assembly testing. that or that Enhancements launch We simulate Density campaign testing contracted Ionosphere/Thermosphere us We’re tests ground to including X the L-L-I-T-E-D, NASA thermal will rigorous recently delighted Vigoride environment for the vibration satellites and in in and completed with Vigoride X X and Latitude their on space. Those a encounter LLITED, Low fly vehicle

testing the The onto beginning its and Readiness assemble preparation. Customer to launch launch This integrated Review now conducted a it its we our picture made XX, of launch we week about we’ve Vigoride at that to at where has with ago. preparing cleanroom, traced photos in satellites been Space spacecraft our showing top were have the the illustrates and integrated left the and February just through Flight X, progress Vigoride Vandenberg site in Force we’re California, shows the Vigoride we slide X. X Base shipped on various and vehicle. when journey stages other it been Then

to for track mission next on month. the Vigoride targeted Transporter-X launch We’re X on SpaceX

to Turning X. Slide

will One [mission TASSA, tested] of X the Array, key or Solar Tape orbit. Vigoride [ph] on Spring objectives the of be

manufacturing a TASSA. Our technology lead working on Vigoride applied team years We’ve patented times. behind concept by unit reducing as and been means Schwarz, CTO, for of potential our the has Rob led the several TASSA costs

XX-feet about team competing it’s savings. roughly mandrel weight You sheets springs. arrays, TASSA, rollout unfurled left, see to of smaller those the TASSA can solar take XX cells meters large To flexible the than solar is provides which or the X-inch The fully much bonded long. using on build

that complete, could as by months. array These Vigoride estimate much about time are improvements is while production reducing Vigoride continue we at lower from transition potentially TASSA Vigoride cost to overall as to replacing the development third-party as development reduce production Once of we important costs. with by XX%, lead recurring several solar unit

its be government rather equipped from TASSA. standard arrays, We’re upper so a with power up will TASSA X deck will customers in Vigoride be payload its interest fold X. hosted also and from main TASSA seeing as source will of fly Vigoride the commercial not solar

stowed position bottom the its right Vigoride in the corner the On chart, X upper can deck. of you on see TASSA

Slide Turning to X.

sensor to suite attempt as it or space and Vigoride’s October space a be closer scheduled ability in We farther Vigoride the technology and to proximity other launched test next Vigoride distance close mission operations, deploy with X plan a using demonstrate designed maintain Vigoride our intend with have for proximity, will on X targeted satellite X, away mission to Transporter-X to then demonstration another in relative maneuver On we rendezvous SpaceX and objects XXXX. maintain for as for and well to and rendezvous RPO.

be Vigoride during its a after Vigoride current serve would missions. the than in to reusable that its and, additional and to Block clear, Recall orbit lower reusable is stay what reentry. customers an it to by satellites. services and version launching X.X completing at on customer and space decaying refueled later with therefore, After Vigoride. Vigoride A rendezvous mission Momentus moves cost by would allow reused expendable. of would mission, is completing and burns up one we To mean that be it building additional can This provide

key need upgrade our RPO few manufacturing include including vehicle of launch to from maintenance a the costs. Vigoride in transitioning and key customer capability technologies, to to that deeply their is can to and of potential services of menu the reusable expendable of provide think an also part with the and to Vigoride end reduce orbit We offers a the satellites, of de-orbiting useful And satellites expand Vigoride our at ability is RPO. life. to life-extension refueling process that

that This Korean XX. transportation slide part in CubeSat early Momentus National plans commercial company and few the highlights JINJUSat-X for from is customer. Slide to Space. the provide to is a XXXX. of a XXXX quarter a fourth new CONTEC a Turning in support of services shows Korean

Applications We [Technical Research Uncrewed and Center Council Difficulty] Aerial or CubeSats, Vehicles CUAVA. for have also Australian signed their Training the

Earth X Orbit. the a is contracts Low Our of CubeSats CUAVA customer. to new CUAVA transportation for

We also for X and FOSSA X X signed pocketPod the of satellites, deployer satellites. Systems contracts Spain in transportation carrying with

customer deployed that mission mentioned, finally, satellites a signed publicly. a previous I named As repeat Momentus with to contract FOSSA our X participated customer, not is prefer We deployer. in X would And a from another who on mission. FOSSA we Vigoride who be then,

Slide XX. to Turning

detail transportation growth about or where changes to segment regulatory sizes excited for in we recent services, We’re mile the estimates Commission, Federal markets Communications market growth we the serve. expect last that given the potential This chart de-orbiting and from accelerate other FCC, X covered their the last conclusion, to as as will regulatory in resemble for earnings after new the de-orbit bodies to require in mission FCC years from call closely we satellites operators our well global that within rules. potential harmonization

are growing. government civil and budgets Defense space

appeal we’re has and billions the the team can We you in believe decades positions] see, and defense of these senior of [ph]. our they’re the with customers business development measured As aerospace and experience dollars. right efforts. Department [in in industry, That’s Momentus the focusing experience to where at of Defense

in XX. Turning space Momentus summary with to Slide well the of positioned to I my reasons a prepared why remarks conclude would the is key market. like

serve First, are rapidly developing. we the that markets

space trending and to these with de-orbiting an satellite the space rules favorably size The As by costs, sector public the than services of forecast need, over and and is more at of estimates the deployments private and a recognize Bank result example. lower FCC Space market team environment even the is and billion additional growth. the about $X of economy growing, to Morgan they sector Stanley progressively satellites once expects faster get other number regulatory America XXXX. important to Both today, need this of the $XXX being trillion the space. groups Foundation double new

vehicles portion a its third. positioned of space a well Momentus well X is this is is to way capture Momentus to market. now launched to Second, on Vigoride launching growing and

in deployed companies While already space, we customer one X and are of of select others have a group we’ve just aspirations, flying satellites.

currently power service, capabilities, hosted generation flying We a in us configuration and transportation and offer and competitive give size payload our substantial a of flexibility services, our Caltech. are in-space payload believe the our for advantage this Beyond we hosting segment.

such We offering and on and services, satellite orbital refueling, our to to build service debris plan continue in-orbit maintenance removal. introduce as and

to should XXXX, plan Our this us in demonstration RPO effort. aid

launch are Our vehicle moreover, relationships strong, as launch SpaceX such Vigoride companies agnostic. with

increasing providers amongst competition and So launch benefit we over from time. launch should price associated capacity

our were and we by improvements in Third, encouraged inefficiency. reliability

scale. we’re to be that once on get we a confident We’re business profitable a path

the as low Vigorides we’re exceed today, are and frequency. still a early costs curve revenue and flying Our at producing on learning

generation to vehicle mission As capacity we we Vigoride revenue increase. expect per increase reliability, utilization and

At for of efficiently Vigorides as result expect produce efforts designed to time, the of cost manufacturing able more and and same be TASSA. reduction learning we a scale our to economies targeted like

result, expand as a to As in grows, plan revenue and we the future. achieve profitability margins

save Vigoride start margin costs. discreet reusable Additionally, introduce once to we manufacturing boost and expect a on we

finally, And, of I economy, by progress, made leadership other favorable in-space for as companies, demand position the capable transportation evidenced these new combination the last space of believe has all competitive all XX we believe I service to to be driving in providers, outlook credible for that our Overall, a team the company and and improvement as the most highly months. this the provide, among relative advantages potential and the well for future. growing services space margin Momentus experienced

were XXXX, I’m vehicles, XXXX, able X progress launch next of with in service the X customer what deployment our orbital to accomplish month, the so X of satellites, in towards we the capital repurchase the our Vigoride contracts, conducting far action pleased and launch of and through retirement the lawsuit, the agreement legacy class progress plan, cost to customer settlements with raising expenses recent the former cover share reduction of our on matters founders. further and including and

back since great are to not being today. we how many from last public public, Perhaps But by look all me levels company strides gone startup company over that future has a gives we’ve seeing relentless adding what new of for This focused, any is the taken easy months, is months success. we’ve means. proud and XX these I in consequential quit. resulted of of all, As a refuses culture the XX to over been at has Momentus not most optimism I’m discipline done the is talent what successfully our

for us our interim your to team their to here, CFO, customers continued thank support. and dedicated like to and we’ll off I’d getting I’ll our the questions. Dennis like our thank hand mic now and then take investors would also for Mahoney,

team I year comparisons corresponding pleased fourth the and by financial with John. results you, achieved present of our to periods. Momentus fiscal to prior quarter highlights XXXX Thank am the during

XX. Turning to Slide

have potential of XX countries, future to to decline the total and future with quarter in million to QX at fourth XX, results ongoing QX million progress Our totals cancellations, fiscal million into toward combination the the to December fiscal option fiscal in as dates. of $XX participate revenue in agreements our year-end companies year entered XXXX to investments similar representing $XX XXXX, periods. XXXX, entered currently been and XX compared of the of flights prior backlog backlog at exploration of XXXX our year fee contracts for $XX for reflect a We is approximately in million launches. fiscal and The end contracts, had end. The at Momentus contracts prior XXXX XXXX into XXXX, fulfillments and due in $XX compared at and

the or customers a backlog. when cancel milestone all a his made. are contract of a our be and the so resulting less the Typically, The needs other payments, cancel for full of customer value should and forego reservation, their the doing right will than revenue to have reasons, payments before rescheduling flight deposits

our backlog with to flexibility firm without options. firm due Momentus QX has of an the of our a Of a backlog decline opt is historically was available at million to well $XX factors, end both expiration separate the from customers give QX XXXX. combination into The as in These including order launch orders these of reported levels options options. contracted slot the in periods backlog at consistent requiring prior agreement. included to as note, particular XXXX

of $XX term at believe March the balances meet company compared and quarter fourth and We compared XXXX. in XX million has cash outstanding needs cash we cash million year the at of in $XX with in in next $XX We liquidity QX ended million the $XX approximately with a gross amounts loan plan. $XX XXXX. to XXXX, and its the sufficient debt ended million QX to of in million XXXX of our XXXX months. XXXX year alike and repay of which that operations approximately XXXX million, with non-restricted line equivalents $XX invested to consisting compared QX $XXX to million for $XX We million XXXX at $XX million We investments versus ended QX began in in include QX XXXX. to XXXX ending

in $XXX,XXX $XXX,XXX compared recognized XXXX. revenue We in in to XXXX

accounted XXXX, to as in included of options. to deposits we upon Other $XXX,XXX deploy as it recognized our customer which X, platform and forfeited QX performance customers. satellites, revenue revenue, the related obligations continued Vigoride for under Vigoride our and customer still because expiration the development During to of Vigoride XXXX costs costs is fulfilling The expense, development. majority research manufacturing launch are

and We will gross production not expect for costs Vigoride margins of and when development is completed, to phase cost research decline the enter expenses. we as be and revenue development once accounted

for fourth EBITDA approximately million the $XX operations. losses improvement generated issued basis, to negative the adjusted which Please non-GAAP $XXX,XXX XXXX. of XXXX, an On press the refer represents our today earnings income. quarter approximately of from reconciliation versus million, was EBITDA release of GAAP In $XX.X QX to a in we net

fourth expenses $X with XXXX. for outstanding. the million, XXXX R&D Non approximately line million QX approximately approximately the lower $XX million QX XXXX. for totaled of expenses fourth $X totaled million quarter in GAAP approximately We XX than QX ended Non-GAAP SG&A XXXX XXXX with quarter shares

will hand back to Darryl. call now the I

at the Mandeep, portion on In forward-looking you remind relating non-GAAP the and we to This how question-and-answer session. will financial all includes our extend of disclaimers call of the please the to like Thank outset this disclaimers to participants question-and-answer move our I would enter call. you, measures Dennis. participants to statements. a would remind queue? outlined that to moment

from questions. your first Stifel. [Operator comes from Please Instructions] now The Erik for floor Rasmussen is Our open proceed. question

far just given you Maybe X, communications. seen services? of the think, with milestones of achievement around, orbits so starting to changed do I questions. the arrays improved taking power the and maybe mentioned success solar or your the the timeframe for certain this being deployment transportation for able that and you’ve thanks precise vehicle’s Vigoride Yeah, Has

is the being in Vigoride conducted first The of we’ve of year The Well, able one we’re Low second through X in and spacecraft in and Erik. arrays mission, last generating health. spacecraft to are deployed we’re the thanks for solar communications back good Earth Its right fully question, nominally, are health. and the good is May is discharge charge that course, and XXXX. Again, power X uplinks telemetry batteries in the Vigoride Orbit. normally. getting The regular the mission now

that is up performance aim system coming we’re to propellant of to I pressurization the going – key The we our – And enabled. mentioned, move to spacecraft. fuel we’re on determination as meet the been essentially attitude that allows has you requirements soon, water the around

coming are So things will Microwave be Electrothermal And of that control the do The commissioning the the as Thruster. water of system the first. completion same the we’ve our same in propellant tank control to that. ability soon system reaction tested reaction uses

altitudes perform, only features that Electrothermal RCS, adjust the we of not way. our based we and should attitude space water to in for in can as that Microwave maneuver one using the with some the the position but and vehicle reason so adjust Vigoride And will we not different Thruster that if it’s necessary, have that control our system reaction redundancy reorient

providing – in the conditions the do Electrothermal course, next the coming now, earth I the to to system. And and should forward like the soon through space and Microwave the we transportation dozens the Caltech. Thruster customer stimulate generation, keys test Thruster it, expect of we’re space. say, transportation, customer customers mentioned. and plan latest, plan to to kind looking Electrothermal Having to just we operating on a as precise that Now, deliver in this maneuver dozens times we space. orbits, either we’re But, or our of to weeks, ability of that service test hosted that through space of payload Microwave tested to We’ve to we services, those are

provides needs think and advantage margin our And hosted in opportunity particularly those hosted do a our in we And differentiation payloads payloads. to competitive that service technology expansion. there’s ability for more

Great.

this in follow-up ongoing like X in April. is an process as we’ll But out maybe question. seems up and the Vigoride it’s obviously – my the coming and it with more So just just then coming weeks find

settled drag the on class should we a scale that efficiencies, breakeven? lawsuit your thinking continue You how the business, the you. and material Thank timeframe rate as drive cash was and you action the achieving about for business burn quarterly to be

mention to, we things a we’re CFO, Sure. business. that Maybe of that something I’ll over couple turn the matter. scale and begin paying to attention our it’s Certainly, on Dennis, close to as

the mentioned class the You settlement, lawsuit. action

it our does while pleased but the near-term us. behind is very outflow, spending to reduce We’re ongoing allow that to It’s And settlement while. issue us provides a us. have that cash behind a been now, pending legal for

why of So to outlook? the to some don’t Dennis cash the cover I things turn on

progress you are Erik, perhaps and you, I Well, we absolutely our guidance, it’s in arrows right thank achieved And, on more clarify we’ve focused we and that just John. ended. made results appropriately. managing you meet Also, Well, behind forward-looking year Right. Erik, putting cash resource do this for about our of we course, all our utilization, on and to very wood give the this call. not can nice

judgment forward. our we course, continue opportunities, good to act with believe we will We going and watch markets we say watch also, and can opportunistically, and of watch –

future, fourth $X.X cash and burns this $X the quarter cash in And certainly first of year monthly in the goal. trend at look the million. for might we’re million that well cash our burn million And that last to this was were trend. between compares burn also the half that we of focused be what $X year, our year while see we When a on the predict we can’t

So a tightly. fiscal trend manage business We’ll very king. watch good we completed had is and to continue as it our Cash we year XXXX.

Dennis were monthly course, figures of that And, provided. those

for Understood. the Great. update. Thanks Good luck.

Erik. you, Thank

line the of proceed. from Our Barclays. David next Strauss Please comes question from

on afternoon. good This for Corn Hi, David. Josh is

wanted forward sales to the ask Thanks. how look? pipeline Just does

Sure.

we we’re we of heritage, and cycle. One pleased development as things about that as very our the further flight in get is, generate more

interest as well from as commercial seeing growing We’re customers, government customers.

the service continue way customers to go-to-market. feel bidding On the see plans with good aligns pipeline, we our we offering opportunities about, about our customer to

as actively Department As in to orders customer we like CUAVA, business Systems, new mentioned and customers that and from announced pursuing like CONTEC NASA. where significant we’re as we’re repeat we is seeing earlier, our recently and opportunities Defense grow the customers FOSSA with well

we’re a of spacecraft, is receiving market very And capabilities power intelligence, and scientific coins some systems competitors. support that the apart of a to is Orbital Department of to payload, payloads, that the you Orbital that realm the allow to Vigoride has hosted that set things Vehicle, Service our operations onboard different one the with support do of of is relative missions Vehicle the to lot power The Defense of and and things military, instruments, our to them. the discriminators the at nature, that and range needs, in we NASA, the and encouraging so think Vigoride the of us of ability feedback about its Service

would able that payload it. our I to the our size number compared not the flying of of are a flexible configuration other on very of is competitors. X. say configuration fly and Caltech a Right our we’re competitors now, because Secondly, of payload to type, Vigoride

the that’s provides. Vigoride second so advantage that And

hosting be would third payload The capacity. the

market. to be our would speed Fourth,

at under within the the mention vehicles. those is space or outside our we then all produce government it particularly launch last, us are to our third feedback was produced to pulled the we here real just discriminator differentiator go we’re cheering that customers for We compete away to site very a getting intend to which a on be moments the can pieces of some as in speed in the One it truck joy the be industry. headquarters year, and cost special And aggressively. one the and is, I’ll to from competitive

years X requiring that is real optimistic the satellites end change de-orbital for change say all lastly, regulators the the reasons, those FCC new So useful life future. this very at we’re I an I’d environment. in there’s then, their external rule of a think, government have after the brought, about And

according of GAO, a about sense satellites GAO of The are orbit. a over next will orbit. you Accountability years. Government in to give XX-fold X,XXX be estimates XX,XXX the XXXX or X roughly the Office, expansion in scale by the to Just that, That’s over today,

about are so, a de-orbit service their satellites as we going rules to that implement those FCC for like with like provide Europe orbital and Vigoride. the the significant think that’s going begin places to in another And opportunity government vehicle new to need counterparts rule, to flexible consistent

from comes from Please Edison of question next line Yu proceed. Bank. the Deutsche Our

Hey, taking our thanks questions. for

define to you I mind would Curious, or understand First, going weeks. you test success? you are how properly next are MET that. you’re some thinking how and have success parameters about in various that in of the few Do level a

thanks to Well, Vigoride the The Microwave Electrothermal intend we weeks, we here for the Thruster onboard that in is question, test Edison. X something mentioned. coming as

chamber, the once control the it and once Vigoride using sequence the begins, the onboard vaporized. we’ll can is the is that thrust Vigoride it water duration of startup the there’s we that then and it’s startup X, sequence, because if things will, and MET. burn X that modify we’ll you carefully, first, of of And Some monitor a to moved the position evaluate evaluate

telemetry evaluate and any we’ll the we’ll we at look And, we’ll we’re its so receiving. performance assess the in at performance. performance, very That’s And carefully refinements offer to look the deliberately want that of its it plan. and

altitude we change intend your satellites operation, the is do to location. MET That’s take an Now, service the vehicle and orbital to from off begins of altitudes different of one Vigoride. ability the once drop to of benefits the inclination

to orbit, location general customers but going space, XXX about receive just in not being kilometers up they’re custom a they the So to go. of want they’re to specifically your going where

the so we port, payloads lot equivalent being ship, a it be that’s intend to Earth series to a of cargo play. that the of that And launch role on and vehicle container takes a but play like the our needs redistributed the cargo in elsewhere, to

so whether whatever mission, Then more or location to can it’s customers’ secondly, depending needs, particular communications go to for modify a customer inclination the a or the orbits it’s remote mission a on requirements allows that their change, a on that sensing you precise are. optimized you that

coming plan that’s anyways, with we’ll our do things using the to those those that things weeks. MET So in do the

one, savings. tech the you to here X, do of you terms mentioned Vigoride on sense needed And how a the are comfortable Separately the also about significant talking are reusable have of upgrades Understood. the with cost? that in much this? Do you we’re how

is Jose, in will Edison, next call this weeks, the integrated which X our vehicle, it. is X clarify, that Well, configuration, and from same over a of here, expendable be Vigoride the Vigoride will is X just assembled which in X Vigoride is and San launch Vigoride coming month. orbit complete for the doing – Vigoride Block cleanroom now currently X as to is X.X we’re California. testing assembled being Vigoride

future on those reusable roadmap. with reusable needed or the key X a some a proximity operations, first of Now, Vigoride RPO will And demonstration our part technologies Vigoride for product of be the is projects. of version remote

maintenance develop think largest eventually in-orbit add it’s us streams are costs refueling, a potential reusable which and allowing the also vehicle, as our important very de-orbiting. We to and Vigoride to X items, while has such as reduce cost revenue launch new costs, to do manufacturing this

of cost call the for In terms assess magnitude is to of the rule to the you the Vigoride in space. or reduction, stay refuelable of reusable thumb might intent it

customers, there. hosted or stay on in-space deliver support and its servicing, space then it do So to would launch vehicle, or the payloads go

the refuel is additional is And payloads the payloads plan Vigoride or be delivered, would and reusable in on subsequent the itself, a could take launch to future vehicle, and continue onward, a fuel few version do then this times. replenishment and

launch the Vigoride, about to set think cost you if useful of produce so support then and one And one missions. to one

to X, much, X, It’s X, additional up but the exactly by but new you vehicle not more launch much just can all, fuel the being not XXX% itself, the after payloads, for you’re can efficient that do If costs. and a because reduction, in reduction of X send you commensurate payloads. you the see missions, fuel have rather in launching the mass

I more could one in. sneak Thanks. just

call, going after have the you I on prospects update your any contracts. of mentioned bidding or contracts, the defense government think, on some last we those? earnings Do had

Yes. question. Thanks for good the

Department they that government we on These receiving They’re ways are have available, that commenting that are we’re platform can the with rewarding. vehicles of the and platform, has that’s very We focusing that interest government particularly been cost. a pursuing – the business, the organizations the see differentiated. are power us. speed the with flexibility the which we produce about Defense we are being engaging number the at the capabilities there they And our of like our the actively

additional active NASA in with we’re pursue like and dialogue Space organizations we’re Department SDA, Force, to also the So into DARPA, talking Defense business.

optimistic And long so, these are business the know, you about those cycle as we’re government. with

don’t we to today. announce have any so And contracts

optimistic we’re the area. in However, about future that

you. Thank

from Our ISI. next of question Please proceed. James comes the Evercore Ratcliffe line from

the a the way prices you thanks how are the raised picture, in question. we’re those to looking I if recently cost directly, that the Hi, against aggregation Thanks. bigger ago? overall regards taking orbit all, versus on call your know now business? SpaceX at things in that and it, And for particularly, in And you regards for trends does the for year rideshare to view what’s protected increases? mean what to,

cover in planned planned We the agreements is the XXXX, one and SpaceX launched thanks January with James. signed that will currently in have targeted for launches Well, question, for which service currently of XXXX, our – that XXXX. first

which After those a would missions, to prices missions, really with in others that there where – to SpaceX to will not though, new launch contract, our like have announced. that come has interface meant Those introduced. the services be And flexibility provide affected already market a that contracts, ridesharing in customers. the to structure, agreement also is prices be subject recently on designed increased for by the SpaceX increased we signed pricing is those new we SpaceX so increase pricing

We into once cost SpaceX. costs I maintain a come framework. those And permission very close that our new new be will higher say will under with dialogue play,

planning competitors, and, the they’re cost by market will rocket, And, launch larger, larger that that at flying substantially understatement certainly, they’re be pound unique to reduce Starship affect will to SpaceX are us, to per it also SpaceX. of or our who that course, British year. orbit. will much things significantly once the Starship also per course, it’s That’s to place introduced However, this is saying on a there, of kilogram

new to SpaceX have – own all shortly. first planning be instance, that. conducting to here us is, doing tested. other their rockets we about their talking launch the The their other thing of relativity, systems begin I’d say mature we’re difficulty other seeing competitors And for in to reminds conduct to seen is it’s It

Agency, here the You probably hours last HX the XX the the unfortunate about saw Japanese news and failure launch the from Space in of Tanegashima.

examples other of And and Vega their failure, recent ABL with we’ve Orbit. seen that Arianespace Virgin and

to is But begin just more we more industry. in from think, how we’re demand online, existing costs systems new So capacity, of the launch launch those that price reminds be. lot come as there’s competition we of vehicle and can going see see it us the come this one to for have and So, Starship, positively space difficult to including to capacity things down? a affected

our there space, will is customers think benefit. more I to so, opportunities go And also

you. Thank

the for question. Thanks

Our line [ph] from Singular final from proceed. of the [Michael comes Please question Mathison] Research.

Good evening, gentlemen.

Just figures coming back work to financial we that with. some of the

your But with is committed figure at You and order portion million to come that stands mentioned here you of $XX end, quarter the do for the committed periods. I that disclose didn’t backlog as the of prior amount? figure, consistent

that not breakdown. Now, disclosing we been have

Okay.

some orders million. that announced that year previous million And component $XX December firm key takeaway Michael, And because quarters well as we at options the $XX was options. and contracts. when fixed of includes in if them component that that’s business. of that the they signed we firm would from steady be site XX, the The decline for has was as the backlog our remained cases end, future the allow is obviously, we recent our to advantage some options. future to of new And, potentially with gain due expiration an the for us way contracts backlog wish customers

last options of quarter. those expired number this a so, had And

clarifying. for Thanks good. Very

going this revenue October have year for modeling payloads launch? Do committed the through for just we anyway. So

backlog, to more. and one to trying We have I’m for are committed get out launch more. I October for obviously some that XXXX our hoping get payloads salespeople And the are in presently

– you are the quarter. well, much very for you we thank taking thank and for what good So questions

Michael. you, Thank

today’s ladies does gentlemen, call. you Thank conclude your and this for you, participation. Thank

You may disconnect. now