Q1 2022 Momentus Inc Earnings Call
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Good afternoon, ladies and gentlemen, and welcome to the Momentous, Inc. First quarter 2022 earnings conference call.
At this time, all participants have been placed on a listen only mode, but we will open the floor for your questions. After the presentation. Thank.
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My pleasure to turn the call over to your host barrels kind of EC Vice President of Investor Relations barrel the floor is yours.
Thank you Tom and good afternoon, everyone. Welcome to <unk> first quarter 2022 earnings Conference call with me here today are John <unk>, Chief Executive Officer of the company and chairman of its board of directors as well as <unk>, Kim Chief Financial Officer, each will provide prepared remarks.
Following these prepared remarks, we will take questions from analysts in the interest of time, we would ask that you limit yourself to one question and one brief follow up.
Earlier today, we issued a press release and made a slide presentation available on our Investor Relations website, which provides an overview of our business and financial highlights for.
For the fourth quarter, you can download a copy of the release and presentation slides at investors that momentous that space.
During today's call, we will make certain forward looking statements within the meaning of section 27, a of the Securities Act of 1033 and section 20 <unk> of the Exchange Act of 1034 forward looking statements are predictions projections and other statements about future events that are based on current expectations and assumptions and as a result are subject to risks and uncertainty.
Many factors could cause actual future events to differ materially from the forward looking statements. In this communication you should listen to today's call with the understanding that our actual results may be material materially different from the plans intentions and expectations disclosed in our forward looking statements. We make for more information about factors that may cause actual results to materially differ from forward looking statements. Please refer to the earnings press.
Release, we issued today as well as the company's filings with the Securities and Exchange Commission readers are cautioned not to put 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. Please.
Please also note that we will refer to certain non-GAAP financial information on today's call you can find reconciliations of the non-GAAP financial measures to the most comparable GAAP measures in our earnings press release, none of these non-GAAP financial measures as a substitute for or superior to measures of financial performance prepared in accordance with GAAP.
Technology underlying our anticipated service offerings are still in the process of being developed and has not yet been fully tested and validated in space our ability to execute on our business plan is dependent on the successful development development and commercialization of our technology development of space technology is extremely complex time consuming and expenses and there can be no assurance that our predicted <unk>.
Nicole and ground based results will translate into operational base vehicles that operate within the parameters, we expect or at all.
With that I'd like to turn the call over to our chairman and Chief Executive Officer, John <unk>.
Thank you Darryl and good afternoon.
I'm delighted to be here today to talk to you about our first quarter and the progress that we've made since our last earnings call in early March of this year.
We are on pace to complete our inaugural vigorous demonstration flight this month for that I'd like to extend a heartfelt. Thank you to the entire momentous team, which continues to drive progress toward our objective of providing the backbone infrastructure services to support the emerging space economy.
I'll provide some high level comments on our activities since our last earnings call and particularly our progress toward our inaugural launch both during Q1 and since the quarter ended as Theres been so much progress in the last six weeks.
I will then spend some time discussing our plan for that launch after I make my comments, our CFO <unk> Kim will take you through the Q1 financial highlights.
Turning to slide three.
Overall, the team continues to make impressive progress on our technology as well as on the licensing and regulatory front.
We have continued work to bring the big arrived orbital transfer vehicle to market. During the first quarter, we completed system level thermal vacuum testing on the <unk> three vehicle that we plan to fly in space on its inaugural mission. This month.
Thermal vacuum testing as late stage environmental testing that closely simulates the environment that the vehicle will encounter in space.
In April <unk>, three completed system level vibration testing this test, which is the last of our major ground based environmental test simulates the environment Invigorate will encounter when onboard the Spacex launch vehicles.
Our testing sequence is designed to uncover issues on the ground, where we can deal with them more readily and effectively then we couldnt space.
Following our thermal vacuum and vibration test the team addressed issues that were uncovered and made improvements where necessary. We went through a checkout secrets to ensure that the bigger <unk>. Many sub systems are still functioning normally after being subjected to these environments.
In April we also conducted a flight readiness review integrated customer satellites and other hardware on the vigorous three and shifted to its launch site in Cape Canaveral, Florida.
<unk> III is now at Cape Canaveral mated to the Falcon nine launch vehicle that will carry to orbit on the Spacex transporter five mission targeted for this month.
Turning to slide four.
This slide has some great pictures that illustrate the progress we've made in preparing the big ride through spacecraft for its operation space.
The picture at the top left shows the spacecraft and our clean earnings San Jose.
San Jose, California that is the other photos trace its journey through stages of testing in preparation for launch.
We're excited to see the bigger I've vehicle integrated of the Spacex Falcon nine rocket that we'll take into space and eager for its debut in space soon.
Turning to slide five while our engineers have been busy getting bigger.
Ready for our inaugural mission, our legal and security teams have been working hard to further implement the compliance tasks required under our national security agreement or NSA.
The U S. Government. This includes screening all the licenses securing all the licenses and approvals that we need for our inaugural mission, which we've now done.
In particular, we received two license updates from the National Oceanic and atmospheric administration or NOAA on March 21, and April 27.
Noah license authorizes vigorous three to operate its Cameron specs.
Then on April 28, we received a license from the Federal Communications Commission or FCC authorizing momentous to use radio frequencies to communicate with vigor.
Finally on May 4th we received a favorable payload determination from the federal Aviation administration or FAA. You may have previously heard this referred to as a momentous license from the FAA, but in fact, what we needed and have obtained is FAA payload approval input.
As part of this review the FAA consulted with other government agencies to determine whether the launch of a proposed payload would present any issues affecting public health and safety the safety of property U S National security or foreign policy interests, our international obligations of the United States.
The FAA payload determination was the final regulatory hurdle for the company to overcome in order to proceed with its first flight on transport five which as I said Spacex is currently targeting for this month.
I'm proud of our team's efforts to ready the big rides spacecraft for its inaugural mission.
The next step is for Spacex to deliver bigger I'd safely towards it.
Given the strong Spacex track record we have good reason to be confident that we will soon have our vehicle in orbit.
We thank Spacex for the partnership and cooperation they are providing to support our inaugural with a great launch.
While the company has faced several regulatory challenges in the past 18 months, our substantial progress in implementing our MSA has resulted in obtaining the necessary government licenses and approvals for our planned inaugural launch.
The team's focus on implementing the NSA will continue side by side with bringing forward. The best product, we can for our customers and to the benefit of our shareholders.
Turning to slide six.
While momentous plans to take some customer payloads to orbit and generate a small amount of revenue the primary goals of our inaugural mission or the test figure out on orbit learned from any issues encountered and incorporate the lessons learned into future big REIT vehicles.
Under our FCC license the mission could last as long as six months, our plans to complete test and demonstration tasks with the spacecraft and less in that time period.
As mentioned earlier <unk> III is currently made it to the Falcon nine rocket that Spacex is targeting for launch this month on the transporter five mission.
Submission plan calls for a vigorous <unk> injected into a sun synchronous orbit at approximately 500 kilometers altitude or just over 300 miles above the surface of the Earth.
After separating from the launch vehicle vigorous three is slated to go through a disciplined sequence of startup procedures, including powering up deploying its solar panels and establishing communications with the ground stations that we will use to control the vehicle from Earth.
During vigorous III flight, we plan to deploy nine satellites from the vehicle.
We also plan to operate space hardware to support a customer test of this hardware.
All told these services support a total of three customers using vigorous.
As customer satellites are deployed we will recognize a small amount of revenue.
Once we have fulfilled our obligations to our customers we plan to operate vigorous III space through powered flight and test its ability to maneuver to different orbits over.
Over the course of the mission.
To operate and monitor the performance of the spacecraft and its sub systems, including our propulsion system to inform future design iterations.
At the conclusion of the mission, we plan to de orbit the grade three sodas burns up on reentry.
In the history of space flight, it's common to experience issues, particularly on early missions. Our intention is not just to perform the planned flight demonstration mission and meet our objectives, but also to find issues that we can correct on future flights.
This approach is critical to our future success, we plan to learn from any anomalies, we experienced during our inaugural flight and apply the lessons learned to improve our technology going forward.
Our core business objective is to become an industry leader, providing transportation and in space.
Infrastructure services for the burgeoning new space economy, and our planned inaugural mission represents a key step along that path.
Turning to slide seven.
As I said on our March earnings call, we have secured two ports on the Spacex.
Mitch.
<unk> three has been made to one of these ports and on the second court of third party deploy our system has been made it to the Falcon nine launch vehicle.
This system, which is shown in the picture on the slide is made by one of our partners who is also handling the customer launch vehicle integration work for the second part.
This system is slated to deploy in orbit five satellites or for different customers.
As I said in our last earnings call. The system cannot provide the last mile transportation service to precise custom orbitz. The vigorous can however, it meets the needs of some of our customers and our backlog, particularly those that don't need to get to a precise orbit have less complex requirements and theyre looking for a lower cost way to reach low.
<unk> orbit or Leo Leo.
This represents an effort to explore other market segments that are adjacent to our current addressable market with vigor.
<unk> offering a lower cost option alongside vigor allows us to address the market in multiple ways and serve the diverse needs of our customers more economically than we could if we were to fly every one of them on a more capable bigger I'd vehicle.
Turning to slide eight.
We also continue to plan for our future beyond the first launch of bigger right during.
During the first quarter, we signed launch services agreements with Spacex that reserve space for us on four additional rideshare emissions, including transporter six which is targeted for October 2022 transport or seven targeted for January 2023 transporter eight targeted for April 2023, and.
Transport nine targeted for October 2023.
In all we are now manifested on each of the dedicated rideshare emissions that Spacex plans to operate from now through the end of 2023.
Recall that once we've established initial product liability, we plan to broaden our service offerings with vigor I'd beyond the hub and spoke transportation mission.
Demonstrating some of the technologies for these broader offerings as part of what we planned to do during these follow on missions.
As an initial step towards broadening the product offering we plan to carry a hosted payload customer on transport six which Spacex is currently targeting for October 2022.
This will allow us to demonstrate our hosted payload capability and grow our hosted payload business with other potential customers.
Hosted payloads involve carrying a payload for customer board vigorous in which the payload received different types of support such as power communications are being operated to test its performance in space.
We also plan to fly our first.
Block two two big ride vehicle on transport or six.
We are planning to introduce a reusable version of our big REIT vehicle towards the middle of the decade.
We expect this move to Reusability will allow us to provide more economical transportation services.
It will also allow us to further expand the type of services, we're able to offer our customers, including in orbit maintenance refueling of satellites, removing debris and de orbiting satellites at the end of their useful life as well as other satellite satellite services.
We've been continuing work ourselves and with partners on the technologies to enable provision of these services such as a robotic arm for vigorous.
We also plan to test a sensor package to enable rendezvous and proximity operations and our fluid transfer system for vigor to replenish its propellant tanks space.
We plan to begin on orbit testing of some key technologies that we will need for reusable.
On the 2023, Spacex missions that we've booked.
Turning now to slide nine.
This slide provides an overview of where we stand in production of our early vehicles.
So far we've produced three complete vigor ides with three more in various stages of production.
<unk>, one and <unk> two are fully built and tested.
As we've said in the past we learned a significant amount from production of these early vehicles that we plan to retain and storage and potentially use its brown test articles in support of future vigorous development.
I'll discuss the status of Big ride three earlier in this call, but this chart provides a nice visual of its comprehensive ground testing campaign.
Our integration and testing processes based on industry best practices for spacecraft manufacturing and testing.
We continue to stress the importance of using ground testing not only to validate our designs and engineering processes.
But also as a critical part of a disciplined approach to put us in the best position possible for success on orbit.
After our inaugural mission with <unk> III, we plan to begin operating vehicles from our improved blocked too to vigor and configuration, beginning with big Red five.
During the first quarter, we completed our block two two critical design review to incorporate design changes relative to the prior configuration. These.
These changes include a new modular tank system that will allow us to swap propellant for payload depending on the mission requirements as well as a more efficient structural design and improved payload hosting capabilities. We now have three blocks to two vehicles in different stages of production.
Turning to slide 10.
We continue to build out and improve our executive leadership team, adding high caliber individuals that bring the type of experience and skill sets that we need to grow our business.
During the first quarter, we welcome Jason <unk> as our New Security Officer adjacent reports to security Director Vic Mercado, who continues to lead our security function and implementation of our NSA, which is overseen by the department of defense and the department of the Treasury.
Receiving the government approvals required for the upcoming Invigorate launch is a testament to the big difference Jason is already made in implementing our NSA.
We're also building out our engineering development manufacturing and supply chain leadership, along with restructuring the organization and making sure our people have the resources they need to succeed including access to technical experts.
Charles Chase recently joined our team full time as vice President of Engineering.
Charles is a world class talent and innovation in plasma technologies. He has a 30 year track record at Lockheed Martin Skunk works, taking aerospace and defense technologies from concept to working prototype to production to retirement.
Charles has already been an enormous asset to us through his participation in our strategic advisory group, particularly when it comes to mentoring our junior engineering talent.
We are lucky to have been able to attract them to join us full time.
We also welcome Nick Zillow recently, as our new Vice President of manufacturing and operations, Nick as another member of our strategic environment regroup, whom we are very fortunate to bring on full time Nick.
Nick is an expert in product development and manufacturing with experience across the aerospace automotive.
<unk> and construction industries.
Most recently Nick worked at Max our technologies, where he served as vice president of small satellite operations and delivery among other rules.
Prior to that Nick held leadership positions at a robotics company and at General Motors.
Finally, Gary Bachman also joined US recently as vice President of supply chain.
Gary brings deep expertise in supply chain management from his experience at <unk> solutions, United launch Alliance and Lockheed Martin where he led teams responsible for strategy development execution and supply chain solutions.
I would say given the preponderance of supply chain issues across the U S and global economies. We're fortunate to have a pro like Gary on our staff, who can make supply chain excellence a competitive advantage for a momentous.
Consistent with the strategy that we discussed on our prior call. We've also been adding engineering talent below the executive level and we look forward.
And we will continue to Opportunistically populate our company with talented individuals and develop them to position the company for a bright future.
Before I hand, the call over to our CFO <unk> Kim for comments on the Q1 financials.
I just wanted to reiterate my excitement for the progress the company's making.
To our first launch has not been without its challenges with our licenses in hand, and our vehicle now with the launch site. The future is bright for a moment, just particularly compared to where we set just a year ago.
I'd like to thank our dedicated team for getting us here.
I would also like to thank our customers and investors for their patients through this period.
I will hand, the mic off to our CFO <unk> Kim and then we'll take your questions.
Thank you John before I begin thank you I would like to take the opportunity to thank moment. This team for their hard work and dedication as we progressed towards the inaugural launch turning to slide 11.
Our first quarter results reflect our ongoing progress and investments towards the inaugural launch.
We have accumulatively signed contracts for approximately $69 million in backlog or potential revenues as of April 32022.
Contracts include firm orders as well as options. These options gives our customers the flexibility to quickly up into an available launch slot on short notice without requiring a separate agreement.
Breadth of these signed contracts spanned across 25 companies in 15 different countries in general our customers have the right to cancel their contracts with the understanding that they will forgo their deposits and milestone payments.
If a customer cancels the contract before all of the payments are made.
<unk> revenues will be less than the full value of the backlog.
We ended Q1 with non restricted cash and cash equivalents of $136 million and approximately $24 million in outstanding gross debt.
We started making principal payments on the term loan in March.
Invested approximately $25 million in cash during Q1.
We expect our quarterly cash investment rate to increase.
The year progresses, driven by higher operational tempo increased vehicle increased launch vehicle milestone payments.
As well as continued investments in the say implementation public company infrastructure and debt repayments.
Did not recognize any revenue during the quarter and as John said, we will begin to recognize revenue once we begin flying customers to space and fulfill our performance obligations.
In the quarter, we generated approximately $25 million in losses from operations on.
On a non-GAAP basis, our adjusted EBITDA was a negative $17 million.
Which was approximately $1 million lower sequentially from Q4 2021.
Please refer to the earnings press release issued today for the reconciliation of.
Adjusted EBITDA to GAAP net income.
non-GAAP SG&A expenses for the quarter totaled approximately $8 million approximately $1 million higher than the prior quarter.
non-GAAP R&D expenses for the quarter totaled approximately 9 million unchanged from the prior quarter.
We ended Q1 with approximately 81 8 million shares outstanding.
Thank you John .
In a moment, we will move on to the question and answer portion of our call I.
I would like to remind participants that all disclaimers outlined at the outset of this call extend to the question and answer session.
Our disclaimer relating to the non-GAAP financial information forward looking statements and technology underlying our plant and service offerings.
Tom would you please remind participants how to enter the queue.
Certainly ladies and gentlemen, if you would like to enter the queue to ask a question at this time. Please press star one on your telephone keypad to enter the queue. We ask if lifting on speakerphone today to please pickup your handset while asking your question to provide optimal sound quality once again, ladies and gentlemen, anybody who would like to enter the queue at this.
Time to ask a question May press star one on the telephone keypad at this time, please hold a moment, while we poll for questions.
And the first question say is coming from Mike machinery from Wolfe Research. Your line is live. Please go ahead.
Hi, everyone. Good afternoon.
John you talked a bit about that.
First phone is coming up but I'm just wondering how will you be measuring success on that first mission.
Well thank you for the question.
The vigorous three mission that we plan to conduct later this month is a flight demonstration mission. Our objective is to test how well the vigorous vehicle and its sub systems working space. We will also deliver customers to orbit and generate a small amount of revenue.
There are many systems onboard including communications the propulsion system called the microwave electro thermal thruster power systems like solar arrays are reaction control system avionics and other systems.
While we've rigorously tested the vehicle on the ground, there's really no substitute for actually flying the vehicle space. It testing it there so at a high level. The purpose of the mission is to demonstrate the performance of the garage assess.
And then we'll see where we need to make improvements.
With this in mind I will say, we will learn from both sides of the coin seeing what works the way, we expect as well as the other side of the coin where adjustments may be needed because things didn't work the way that we expected.
We've defined key performance requirements that will aim to meet these tests include communications operation of the hardware and the software systems that sub systems that I mentioned earlier like propulsion and of course, the deployment of the customer payloads.
Again in summation the focus is on testing the vehicle learning for many issues and then incorporating lessons learned on the future vigorous vehicles.
Got it. Thank you and then following on that.
Our relationship with Spacex it appears healthy quality some of your competitors.
That might not be the case that degree is that something that you see as a competitive advantage or an opportunity for you guys.
We see it as a potential competitor competitive advantage and we do see it as an opportunity we're very proud of our partnership with Spacex. We appreciate the collaboration in consideration they have provided to us that as we work through some of the legacy regulatory issues that the company has.
Momentum is very pleased I'm very pleased that we've overcome a number of challenges recently and frankly, we know how hard that can be in our business.
So while I wouldn't want to comment as to our competitors' relationship with Spacex or their potential efforts to remedy their issues I do know how hard that can be for customers and others to deal with that uncertainty. So frankly, we plan to be opportunistic during this period and we'd be happy to accommodate an assist satellite.
<unk>, who need a rider whose plans may have been disrupted.
Got it thanks again for the time.
Thank you thanks for the questions.
Thank you. Your next question is coming from Robert Stallard from vertical research partners.
Robert Your line is live please go ahead.
Thanks, so much good evening.
How are you.
And also Matt Thanks, Scott a couple of questions for you first of all on the bigger right. So you've got to have licenses in place now are there any ongoing licensing risks, though for future missions.
We don't anticipate any issues given that we've recently and just recently been through these processes for the vigorous three launch and we received all the licenses and approvals that we needed for our upcoming mission from the FAA FCC and Noah.
We really appreciate the collaboration shown by these government agencies and we don't see any noteworthy risks going forward. In fact, we've been in discussions with the FCC for follow up missions. For example for vigorous three we applied for and received a special temporary authority license.
FCC is since advised us that they would like us to apply for a part 25 conventional license for vigorous five which we've already done and we don't anticipate needing to apply for an FAA payload determination or seek a modification to our no license for our next mission of course, we'll do so with modifications are needed or Miss.
<unk> requirements call for it so we see this as a noteworthy area of progress for a momentous that we've overcome our challenges in this regard.
Secured the necessary licenses and approvals for our upcoming launch and we don't anticipate any issues going forward for future missions.
Okay. Thanks for that and then secondly, it's obviously been a.
Volatile 2022, so far in terms of macroeconomic issues and geopolitical risks I was wondering if that's just fed through in any way to the market demand for your services be it on the commercial side or on the National security side.
We continue to see very solid customer interest in the type of capabilities that we would provide.
We continue to feel good about how that service offering is aligning with the.
The market trends.
Soon and emerge in a new space economy.
In our 10-K for instance, you would see there is a number of third party market forecasts that indicate the total addressable market for space transportation continues to grow rapidly.
Once we've had the opportunity to fly a big ride on orbit and demonstrate its capabilities, we are expecting to convert more customer interest to firm orders and backlog.
I would say youre right about the broader macroeconomic conditions course concerns about inflation the war in Ukraine and elsewhere.
Putting a damper on the broader market, but similar to our peers, we have seen some.
Impact on our stock price, but in terms of operational capabilities and our work there we're not seeing that impact its a matter of fact, we feel like we've been relatively successful at navigating things like the supply chain challenges.
<unk> facing our industry and the others.
Do have some impacts of that for example.
One of the rooms in our facility is lacking its doors right now because they are on a ship I'm told off the coast that hasnt quite been unloaded yet.
Slate. So there are supply chain impacts, but we haven't been able to we've been able to navigate those challenges in a way in our production of our vehicles, where we've been able to maintain the schedule.
And we're really focused well there are some things outside our control like the inflationary pressures are certainly the Russian aggression, Ukraine, but.
I and my team, we're very focused on what we can control improving the fundamentals in the business and we think we are continuing to show improvements in overcoming our regulatory challenges overcoming operational challenges to improve the capability and quality of the company.
That's very helpful. Thank you.
Thank you.
Thank you.
And your next question is coming from David Strauss from Barclays.
David Your line is live please go ahead.
Hey, guys you got Brad Barton here on for David Good evening.
Good evening.
Just just quickly starting off now.
Now that you've got the company back on solid operational footing is there anything you can say.
On the forward financial outlook.
Yes, <unk>, Kim our CFO will take that.
Yes.
System with our stated strategy, our focus has been to bring bigger rising market as early as possible.
With the features and reliability that we know that our customer needs as.
As we look at our inaugural launch we're pleased with the success of our deliberate and disciplined approach as Bob and we plan on continuing with this approach, making progress both operationally and financially.
As we said on our prior earnings call, we have sufficient cash runway through the early part of 2023.
These cash investments will secure future launches as well as future funds for vigor out vehicles that will need to support these missions.
We continue to make investments on the big REIT vehicle to enhance performance and reduce operating costs, we expect customer order activity to pick up once we establish flight heritage.
But it is customary for customers to book our orders saw 12 to 12 plus months out ahead of launch so there will be some lag between the receiving of the orders to the recognizing of the revenues and ultimately the profitability of the company.
Okay.
And then I guess with the with.
With sufficient cash to early 2023.
How are you thinking about accessing the capital markets given how the stocks been performing recently.
Yes, so I mean as John commented earlier, the capital markets have not been kind to anyone right, but with that we do have sufficient cash runway through the early part of 'twenty three we.
We are comfortable now with the capital that we have based on our destocking efforts and our ability to serve.
<unk>.
To support our near term needs.
But we will evaluate the right timing of our next capital market raise relative to the execution of the business.
And I would just add we plan to assess the market conditions.
Based on when we think that's the correct conditions, then we'll go to market and raise some additional capital.
We're feeling comfortable with where we're at at the moment.
Alright, Thanks, and if I could just squeeze one more in on.
Transport I think I said last quarter that scheduled to get the transporter five is pretty tight.
Can you say anything about how you are looking for transport or six in October .
Yes.
As I as I mentioned.
We are manifested on four follow on Spacex transporter rideshare emissions.
Beyond transport five.
Starting with transport or six which is scheduled that theres transport five in October then Theres transport or six scheduled for January of 2023 transport or 7% in April of 2023 and transporter.
Eight in trends in October of 2023.
We were on 567% to eight going forward are similar to what I said last quarter. The scheduled to prepare vigorous five is tight.
I said last quarter that we had a tight schedule to get bigger at three.
Finished and ready for launch and our schedule for preparing vigorous five for its planned launch in October is similarly tight.
We're working very hard to meet that plan schedule, we expect the <unk>.
<unk> mission, though will be a learning experience and we're going to use what we've learned in that vigor.
Vigorous three flights scheduled for as early as this month.
Two to learn from it and then as necessary, we will assess its performance and if we should find any anomalies or any performance that is not what we had expected depending on the nature and significance of that.
That activity then this obviously could affect the schedule for future launches and obviously, if we were to experience initiative that caused a launch delay we would seek to fly again shortly thereafter.
With the additional agreements we have with Spacex through the end of 2023, we do have other launch slots available that we could utilize as necessary.
So again, we're working hard though to make the schedule, but the schedule for launch of the <unk> five in October is tight.
Okay.
Thank you.
Your next question is coming from Allison <unk> from Deutsche Bank.
Allison Your line is live please go ahead.
Hi, everyone congratulations on hitting all the milestones.
First question I think this was alluded to earlier.
Spacex had a really shall we say a high profile.
Breakup breakup of our relationship.
With a competitor of yours.
And I was wondering have you seen any sort of pickup in business.
Or increase.
Activity since that occurred just given.
Obviously fly anymore on those rideshare emissions.
I would think thats, a pretty substantial amount of business.
Well. Thank you again for the question Edison.
As I mentioned earlier, we're very proud of the partnership that we've built with Spacex.
They've been a strong partner to us they've been collaborative they've provided consideration, where we needed it and we thank them for that.
Aye.
No from experience how difficult it can be to overcome the kind of challenges and business uncertainties that our competitors are facing.
As you know.
Spacex has been the primary space launch vehicle that they have used in others and so.
Certainly I wouldn't want to comment on what if anything they are doing to address that issue.
For us we do think we're a very attractive alternative.
We know that we have overcome our regulatory issues.
Poised for our first launch and after we begin generating some flight heritage from that launch we do expect.
Orders to pick up and that this will be an opportunity for us to.
To secure some additional customers and so.
Hugh.
Well I want to be cautious not to comment too much on our competitors and what their challenges are certainly for us we do want to be opportunistic in this period and as I mentioned earlier, we would be quite happy to accommodate assist any other satellite operator, whose plans have been disrupted as a result of Spacex has to.
Decision with respect to our competitor.
Understood understood and following up.
I know you mentioned there is actually several customers.
To launch.
Are you able to disclose any of these customers coming up or maybe talk about the kind of payloads there'll be there'll be deployed.
Yes.
On our vigorous three mission that again is scheduled volumes transported five that Spacex.
<unk> is transported five mission scheduled for this month.
<unk>.
We're going to have some paying customers on the flight of our primary goals just to reiterate it.
Test vigorous orbitz since it's a flight demonstration mission, but we will.
Released some customer satellites nine in total from bigger IDE and then we'll also test.
Piece of space hardware that another customer has provided we have three customers invigorate.
Two of them one is called the foster.
SSA and second customer is called orbit.
<unk> and <unk> from Norway.
A university.
And then.
We will also.
Test.
Some some hardware as I said from another customer.
There is a second port as you recall that.
The momentous had purchased on the transporter five mission on one court will be the vigorous three vehicle on the other port.
A third party deploy our system has been successfully made it to that port with customer payloads, one of which is a momentous customer Cal Poly Pomona, who we are proud to fly and take to orbit on that mission. There are some other customers that our partner is also planning to fly so in.
Totaled five satellites will be released from that third party deploy our system Edison.
Edison as you recall the use of that third party deploy our system, it's as part of the <unk>.
Exploration that we have to look at.
Other ways of doing business using rideshare aggregation.
Putting them on a lower cost less capable system that still meets the needs that are less complex for some of these customers and some of the customers in our backlog and would give us a lower cost method of meeting their needs and invigorate, which is more capable and able to take customers to precise customer orbits.
Alright. Thank.
Thank you.
Thank you and there are no further questions in queue at this time.
Ladies and gentlemen, this does conclude today's conference call. Thank you for your participation you may disconnect. Your phone lines at this time and have a wonderful day.
Okay.