Q4 2023 Intuitive Machines Inc Earnings Call
[music].
Welcome to the intuitive machines fourth quarter 2023 conference call.
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Good morning, welcome to the intuitive machines fourth quarter 2023 earnings call.
He's executive officer, Steve Alkermes, and interim Chief Financial Officer, Steve Encore are leading the call today.
Before we begin please note that some of the information discussed during today's call will consist of forward looking statements setting forth our current expectations with respect to the future of our business the economy and other events.
The company's actual results could differ materially from those indicated in any forward looking statements due to many factors.
These factors are described under forward looking statements in the company's earnings press release and the company's most recent 10-Q filed with the SEC.
We do not undertake any obligation to update forward looking statements.
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 earnings release filed on form 8-K.
Finally, we posted an earnings call presentation on our website, which provides additional context on our operational and financial performance.
You can find this presentation on our Investor Relations page at Www Dot intuitive machine dotcom flashed investors.
Although now I'll turn the call over to Steve.
Thanks, Steven and welcome everyone and thank you for joining us.
Today, we will delve into two dozen machines fourth quarter financials, covering our physical performance and strategic initiatives.
Moreover, we will share updated information, reflecting our recent successes underscoring our current standing as the only U S company to ever land on the surface of the Moon.
Intuitive machines decision to go public.
Last year was driven by a vision to democratize access to the moon and catalyze the emergence of a lunar economy.
This historic moves paved the way for groundbreaking lunar exploration and a unique opportunity to broaden access to the mood for the general commercial population.
I've been looking forward to the day when we could join this call and say, we accomplish that mission.
Exactly one year after going public intuitive machines launched its I am one mission and one week later on February 22nd we successfully landed marching in the United States first lunar landing in over 50 years.
The successful landing recognized by the White House.
NASA and our commercial customers fundamentally disrupted the economics of landing on the moon, while substantially retiring the cost of developing a little leaner program, including our Nova C class lunar lander.
The same core land or class is currently scheduled for at least two more missions under Nasa's commercial lunar payload services initiative or cliffs program with secured its budget under Nasa's New Appropriations Bill.
The recently enacted fiscal year 2020 for NASA budget continues to support clips along with several other key Artemis initiatives.
And up next we expect the announcement of the agency.
Lunar terrain vehicles services contract in early April responding to the company's first bid as a prime contractor and the agencies Artemis campaign.
The final spending bill appropriate and $24 $9 billion, which was approximately $2 billion less than the NASA request.
The majority of the $2 billion shortfall Paul.
In the Mars sample return program a program intuitive machines has not submitted proposals into.
While naphtha has openly discuss the cost overruns and program delays for it on orbit servicing assembly and manufacturing program or owes him.
There is language in the bill that preserves funding for fiscal year 2024.
This preserves funding continues to planned revenue of the Companys owns three contract.
Despite these political adjustments Nasa's budget continues to bolster the company's roadmap as we leverage the success of I am one to diversify revenue streams and provide a reliable cadence of lunar missions in services for example, Nasa's near Space Networks Services Award is still scheduled.
For me.
As a company, we recognize that returning to the United States to the Moon for the first time since Apollo 17.
It's truly an integrated global effort, we worked with government agencies multiple departments within NASA. The FAA the FCC in a series of domestic and international partners through our leaner data network and supply chain.
Additionally, there is geopolitical and policy alignment with the return to the Moon.
China, and Russia value superiority in space.
The efforts of countries, such as China, India, Russia and Japan.
I like the values placed on superiority in space by other countries. This has ignited a 20 <unk> century space race that is well underway.
Amid the surge in geopolitical lunar activities that has recently seen nation states.
Come to the challenges of space flight.
We believe the success of I am one mission puts the commercial industry firmly into the space race <unk>.
Our cooperation with agencies in other countries positions I am as a first mover in this race.
The I M. One mission delivered over 100 kilograms of payloads and shuttled numerous technology demonstrations to the lunar surface.
It operated more than 144 hours on the lunar surface transmitting more than 1.7 gigabytes of science and engineering data across all commercial and NASA payloads.
The landing and data delivery from the lunar surface.
<unk> and more than $12 million in success milestone payments in 2024 across NASA and commercial customers.
The mission landed further south than any vehicle in the world has ever landed on the moon, establishing a foundation marked by numerous pioneering achievements, including validating the company's scalable liquid methane and liquid oxygen propulsion system, a future facing technology. We believe is the next step in propulsion innovate.
<unk> required to travel further into our solar system.
Our first of its kind vision processing and autonomous landing technology landed within nine nine degrees from the Moon South pole.
Ziv craters steep slopes and difficult lighting conditions, Mark this ominous region of the Moon.
Proving our autonomous landing technology on our first mission sets the stage for I am too, which is intended to land on the Moon South pole at the Shackleton connecting ridge the search for water ice that may be process for propulsion and life support in the future.
The commercial and NASA payloads on I am to complement the pursuit of water on the mood in the effort to establish a foothold on the south pole.
Knott's is $93 billion Artemus campaign is targeting human missions. This decade.
<unk> propulsion and structural components are being assembled in house and we completed integration of the naphtha based mining drill in the fourth quarter.
In addition to the machines micro Novo Hopper designed to search for water rights and permanently shaded regions of the Moon completed thermal vacuum chamber testing before the end of the year.
Since concluding the I M. One mission in February.
On February 29th our team transitioned into assembling and integrating the IMC mission lunar lander. It uses the same core Nova C class vehicle as I am on allowing us to capitalize on schedule and cost efficiencies.
The team assessing I am worn data identified just a handful of adjustments will carry over into the I M. Two mission to optimize and refine performance.
We will complete the assembly and integration process with only these minor adjustments to the flight proven Nova C design.
And two of the machines has been working with NASA to finalize engineering and landing site selection on IMT.
Which may marginally impacted our targeted 2024 at lunchtime.
The I M. One mission success extends beyond our lunar access services business unit.
At the start of the call I touched on global integration.
And two of the machines has achieved remarkable success in globally integrating radio astronomy dishes from over a dozen countries.
Listening ourselves as the sole commercial provider to validate our lunar distance data service from the Moon surface.
This underscores the company's leadership in lunar data services further demonstrated by our successful augmentation and interoperability with Nasa's deep space network.
We believe this creates a clear advantage in our pursuit of Nasa's near Space Network Services contract Award.
In the second quarter.
In one year's time, the orbital services business unit has moved from an incubated idea to a mature revenue and profit center for intuitive and sheets.
The orbital services business units secured and is executing on the omnibus multidisciplinary engineering services contract or one three.
With $12 $5 million in revenue recognized in December 2023 homes three has been instrumental in driving the unit's success.
Moreover, the connection between <unk> three and that was one Oh Sam project is notable as Congress has appropriated funds for owes them ensuring continued revenue for that project within the homes contract through the fiscal year.
Pushes for Osaka and project performance improvements.
Two of the machines remains committed working with NASA through the completion of the ISR mission under the <unk> contract.
As intuitive machines eagerly anticipate snafus announcement for the agency's lunar terrain vehicle services contract. The company is diligently preparing for potential award NASA.
<unk> Ltvs contract holds a total program value of more than $4 billion structured across two phases of award with multiple potential awardees.
The first phase is expected shortly after first quarter of 'twenty 'twenty four entails a feasibility assessment.
The award amounting to approximately $30 million over one year.
If awarded this phase aims to mitigate risks associated with developing the company's Novo D cargo class lunar lander and advancing the lunar terrain vehicle design.
Intuitive machines led moonraker team is comprised of aerospace and automotive leaders such as ABL, Boeing Mitchell and Northrop Grumman and is poised to leverage this opportunity to propel the next generation of lunar surface mobility.
Following the successful completion of the phase one feasibility assessment.
Intuitive machines anticipate bidding on the second LTV S Award. This award is earmarked for developing and delivering the lunar terrain vehicles to them.
The company continues demonstrating its capability and reliability and leaner operations.
The LTV S Award is anticipated to focus on continuously delivering infrastructure supporting both NASA Artemis campaign and commercial interests.
We believe this groundbreaking endeavor positions in two of the machines as a key player in advancing lunar infrastructure.
Furthermore, intuitive machines I am one mission served as a platform for validating groundbait breaking space products and infrastructure with notable achievements, including validating the company's proprietary and scalable.
900 liquid methane liquid oxygen engine.
Engine was validated through the first ever deep space ignition followed by multiple restarts.
Demonstrating reliability and providing successful spacecrafts maneuvers through the lunar surface.
Positioned as a future facing technology, we believe liquid methane and liquid oxygen propulsion or the next evolutionary steps in propulsion technology, which are essential for enabling travel further into the solar system using the resources. We know are already available on other celestial bodies.
Other mission elements, such as software integration for vision processing and create a recognition for autonomous landing technology. We're also successfully validated with these achievements.
Two new machines is fielding inquiries and exploring potential opportunities to enter the market with these validated space products.
Building on this momentum the company has submitted its past performance data to NASA for consideration.
And their next clip submission award.
We've also attracted a surge of interest from commercial and international partners, including space agencies, we are forging a new relationship with the with a world leading cancer research team interested in leveraging the zero gravity environment for science and medicine.
Our lunar data services team is exploring interest and data relates satellite tasking using our flight proven network and mission Operation Center.
We're in re engaging commercial brand partnerships to push traditional earthbound retail technology innovation, while extending new Columbia sportswear innovations through our second mission.
Finally at the start of the call I mentioned, the global landscape of space exploration witnessing a remarkable increase in geopolitical activity with nations worldwide intensifying their efforts to return to the moon and explore beyond.
Last week, South Korea, Korea unveiled ambitious plans to establish a new space industry cluster backed by over $1 billion in funding through 2027.
Costa will foster space craft development, an astronaut training.
View investments in exploration like this with admiration and appreciation.
Recognizing its positive impact on the global pursuit of scientific advancement.
And recall at the end of the fourth quarter of 2023 intuitive machines formed a strategic partnership with <unk> Corporation, South Korea as Premier Healthcare investment company focus on focusing on bolstering critical infrastructure and fostering new research and development ventures and space.
This strategic collaboration exemplifies in two of the machines commitment to aligning itself with the evolving global landscape of space exploration.
Is it 200 machines continues to forge partnerships to diversify revenue.
Company remains dedicated to staying at the forefront.
The shifting dynamics in space exploration.
Aligning with this global momentum we believe in two of the machines is strategically positioned to capitalize on the growing interest in space and the Moon, and we're making tangible progress in that pursuit.
With that I'll turn the call over to into the machines interim Chief Financial Officer, Steve on tour.
Thank you, Steve and thanks to everyone joining us today I'll begin by going through our fourth quarter 2023 results in a few key highlights.
We ended the fourth quarter with a contracted backlog of $268 6 million, an increase of $133 4 million and nearly doubled versus the prior quarter.
This backlog includes the first task orders from the <unk> contract.
Long with $17 6 million for an international space agency payload to be delivered on a future mission and $9 5 million for the Department of Defense Air Force Research Laboratory Jetson Award.
As Steve mentioned earlier, we expect more opportunities to expand backlog. This year as we respond to a steady flow of RFP and resi request.
Holding our landing as well as the award decisions coming on key programs, such as El Tds <unk> and that's it.
Yes.
Revenue in the quarter was driven primarily by Nascar's cliffs contracts and related mission payload along with one month of I'm sorry revenue.
Approximately $12 5 million.
The company concluded the fourth quarter were $30 6 million in revenue compared to $38 million in the fourth quarter of 2022.
Gross margin improved versus prior quarters and was a positive $1.5 million in the current quarter driven primarily by the <unk> revenue in December.
Operating loss was a negative $5 9 million versus 13.0 million and profit for the same quarter of the prior year note.
Note that the prior year included a onetime NASA change order to move our I am on landing location, but came which came with incremental revenue and high drop through down to income in.
In addition, Q4 2023 saw higher cost of revenue as well as public company costs since the peak back in February of 2023.
On the cash side, we ended 2023 with a cash balance of $4 5 million, which is.
After a debt pay down of $12 million in the quarter.
Only $8 million of debt remaining on our balance sheet.
Note that as of March one 2024, our cash balance increased to $54 6 million driven by $56 million of warrant exercises from an institutional investor along with a 10 million equity strategic investment.
In addition, we have invoiced NASA, along with other commercial payload customers submission completion payments for am one totaling approximately $12 5 million as a result of our successful landing.
We'll further strengthen our cash position for the year.
It's worth noting that our March 1st cash position as the largest balances any quarter end position last year, and we believe provides us with sufficient capital for the near term given our continued capital and cost discipline.
Going forward, we will continue to be opportunistic in the capital markets for defensive capital to further strengthen the balance sheet.
We became shelf eligible on March 1st and as a good housekeeping measure we plan to file and Thats pretty much self registration statement following our 10-K.
Operating cash used during the quarter was $22 3 million with Capex of $2 2 million.
Resulting in free cash flow in the quarter of an outflow of $24 6 million.
As previously discussed with the completion of our new lunar production and Operation Center Capex was normalized in the fourth quarter compared to recent quarters going forward Capex is expected to be significantly lower relative to the prior year, excluding the impact of any new awards and associated Capex requirements.
Looking ahead, we expect 2024 to be a transformational year for us both operationally and financially building off our recent mission execution success.
On the revenue side, we expect sales to expand significantly this year based on the current backlog and our revenue outlook and outlook and 2024 could be further favorably impacted.
We are successful in winning our existing policies, such as El Tds, TV <unk> and SNS.
We expect gross margin will continue to improve as we execute on homes as well as drive cost efficiency for IMTT and IMTT given the prior development.
And learnings from our successful I am on mission.
Q1 in particular is expected to be favorable given the full quarter on the execution, along with our final NASA and commercial payload payments Brian one.
As I mentioned earlier on our backlog, we expect continued backlog growth. This year driven by key program Awards L. TBS is expected to be awarded in the coming weeks within SNS and the next clips award <unk> expected sometime in Q2 2024.
Additionally, we have seen a significant uptick in requests for proposals and information following our successful lunar landing and we hope to capitalize on our momentum.
On the cash side with $54 6 million as of March 1st and the final I am one success payments to be collected.
A main well capitalized to execute on existing contracts and to fund future growth.
Overall, we come into 2024 from a position of financial strength, we've expanded our cash position with lower debt, we've grown backlog, our margins are improving and our future opportunities for brighter than ever and we look forward to another successful year of execution.
With that operator, we are now ready for questions.
Thank you Les.
Speaker Change: Ladies and gentlemen, just as a reminder, if you would like to ask a question. Please press Star then one now on your Touchtone phone.
Today's first question is coming from Austin Moeller of Canaccord Genuity. Please go ahead.
Austin Nathan Moeller: Hi, good morning, Steve and Steve.
Austin Nathan Moeller: I am too.
Do you have to make I guess, a relatively minor does that still put you in a position to launch that Michigan in 2024.
Austin Good morning, Steve Ultimate here.
Austin Nathan Moeller: We have.
Then through a review of reconstructing the mission and identified the areas that needed adjustments you know in terms of antenna.
Antennas and cameras and software changes certainly a laser range finder enables switch [laughter] harnessing improvements those have all been made so we really don't see any impact to the schedule based on.
The changes from I M. One there are fairly straightforward.
We are working with NASA closely as NASA is repositioning our landing site you know they want to get to an area, where they have some confidence that there might be water ice on the south pole and so we are adjusting the landing site to the Shackleton connecting ridge and what that does is.
That might have a marginal impact.
Austin Nathan Moeller: Generally, but we are still planning for 2024 mission for I am too.
That's great and just a follow up on SNS.
Do you expect you'll be able to collect more revenues from that program. Once the first con satellite is positioned in winter orbit.
Speaker Change: Well actually there is what they call.
We anticipate an award notification in the May timeframe as I indicated in my opening remarks.
And that contract is structured in a way where.
NASA funds, what they call a verification task order and that verification task order is to put in place that basic initial operating capability that that gives you the data relay from around the moon and back to Earth and so it's not necessarily figure a little singular.
Two a a a satellite that we put around but it's getting through that verification phase of the data really satellites over a period of I think it's 24 months.
Four to 36 months to get that verification done so after that.
Accomplish the service revenue would kick in.
Yeah.
Great. Thanks for the details there.
Thank you. The next question is coming from Josh Sullivan of the Benchmark Company. Please go ahead.
Hey, good morning.
Good morning, Josh Hey, Josh.
As far as the new Aerospace network service contract.
Weight is put on past performance and now that you know intuitive is validated lunar data service from that from the Moon is can you just provide us any detail on kind of the contract structure waiting.
Josh: [noise], well lets see I might not be able to correlate it directly.
Josh: Two are awaiting number however, we know the contract procurement process is moving forward as well.
Several of the vendors, including into the machines of course have made the competitive range.
And NASA has opened up oral discussions and talk to us about clarifications Ah.
Josh: And that's for a final proposal.
For that so we know the procurements moving forward, we know also that relevant experience and past performance is.
As was requested updates to that and specific updates are based on our mission success for mission. One so well that gives us some confidence that we're moving forward in the processing and closer to an award hopefully in the May timeframe Josh.
Josh: Got it and then just on the changes or potential changes in the landing site for I am too are you expecting any change payments as you received for I am one when that happened.
Yeah.
Yes in fact, we are masses centers yesterday.
Refresh the request for task orders modification too.
Impact.
From a cost and schedule standpoint.
And technically what it would take to move to this particular landing site on the Shackleton Ridge. It's just the very close to our original landing site.
But theres been back and forth and analysis, that's been done and all of that will be a cost did and submitted back to the government here in the first week of April and then we will expect that modification at and certainly will cover our costs that were.
We would anticipate based on that movement in the schedule.
Got it and then just one last one as far as the lunar terrain vehicle contracts or are you still bidding as a prime there.
[noise], Oh, yes, Josh really proud as intuitive machines enters human space flight as the prime contractor on the Artemis program LTV that's it.
Develop lunar terrain vehicle or moon buggy with two of the machines as a prime the moon racer team includes a.
And automotive company includes Boeing Northrop Grumman and Michelin to name a few and so that's where.
We have a really powerful team we're very confident.
In our capability and our design.
Speaker Change: We're looking forward to hearing about that next week.
Speaker Change: And in the coming weeks.
Speaker Change: So it represents a significant entrance for us.
That was a essentially a system integrator for for Artemis program element, what's interesting about that I don't know if folks know is that that's really a blend.
Speaker Change: A NASA element that is owned and operated by the commercial entity, which is doing the machines. In this case, so that while NASA is operating the Rover.
Speaker Change: With their astronauts when they're not there.
Two of the machines can operate that Rover are autonomously and provide services for commercial customers and international governments.
Our mobility on the surface and to collect science and engineering data. So it really becomes an asset of intuitive machines on the moon, that's operating for up to 10 years.
Great. Thanks for the update.
Thank you. The next question is coming from address Shepherd of Cantor Fitzgerald. Please go ahead.
Yeah.
Hi, Good morning, Steve Steve.
And Steve Thanks for taking our questions.
Turning on to it.
Congratulations on the quarter and let me just once more share my congratulations on that on our first successful mission.
Speaker Change: Mission.
I wanted to touch on the the backlog.
So the 268 million can you just remind us.
Over what time period, you might expect to to recognize that into revenue and then Additionally, we now $12 5 million in revenue collected from the <unk> contract should we expect that kind of a similar run rate on a on a monthly basis over the next five years is that the best way to.
Think about it. Thank you yeah. This is Steve on for Andreas and thanks for the comments.
So any of the increase in backlog.
At year end came from the homes past quarters, and so and that's a one year a set of task orders that we were awarded so we will expect to burn that off in 2020 for them as far as the run rate, we expect the 12 and a half million in December is right on par.
Mark what we expect monthly throughout the rest of the past quarter term.
Got it Okay. That's super helpful. Appreciate that and I guess just.
On liquidity.
Hugh you mentioned your cash balance as of end of March.
I'm curious what kind of.
Margins are you expecting throughout the year end and how are you thinking about that that capital need.
Obviously, you can have a phone contract kicking in every month every quarter do you foresee a need to have to raise additional capital or do you feel like you're in a good place now where given where you are.
So overall on margins, we expect margins to improve.
No one is a big factor there since it is a positive margin contract.
And our outlook.
The the rest of the day the cash balance that we currently have.
We believe will be sufficient to get us through the remainder of the year.
Without any further awards that were currently pursuing so I think that's the best way to look at our current cash balance as of March 1st.
And how it burns through the rest of the year.
Speaker Change: But then anything.
We get awarded would hopefully be positive to that cash.
Cash flow forecast.
Speaker Change: And.
Does that answer your question.
I would add one other piece.
Speaker Change: Is that we will continue to remain opportunistic about capital raised in the future to keep looking at ways to accelerate the growth of the company.
Speaker Change: Steve said, we are confident that the cash balance carries us through the year, that's with no additional wins, but we are in a in a fantastic position for for awards on LTV in the CPE 'twenty two the next clips award we can't forget about that one that's moving forward.
<unk> contract and so with.
With the existing contract backlog, we have this year, which would which will burn off.
Speaker Change: Nearly 80% of that this year.
And those additional contract awards that puts us in a great position moving forward, even beyond 'twenty 'twenty four and then should we have delays like we experienced last year, we're still sufficient capital.
On the balance sheet to get us through 2024.
Got it that's wonderful Super helpful. Appreciate it and maybe if I could just squeeze one last one.
Speaker Change: Regarding the contract I, just want make sure I'm understanding this correctly. So I think you said you expect the contracts to be decided over the next few weeks if I heard correctly and then let's see one you expect that to be awarded her multiple cool if I understand correctly. So.
I guess, what would be the contract work, but you are targeting for that phase one or what's the best way to think about that thank you.
Yes, the phase one work we do.
Believe it will be essentially to face towards.
And each one is a gate to move to the next phase.
We think this is a multiple award <unk>.
Two or more teams might win an award in phase one.
And what that will be will be the preliminary design and assessment of the delivery system. In this cases are Nova D cargo lunar lander that takes about one and a half metric tons to the lunar surface and it's also the preliminary design and assessment of the LTV itself at the 12.
<unk> period.
Priced at roughly $30 million.
We expect two or three awards like I said the follow on there will be a result of.
Speaker Change: All of that to take the design to a full maturation and then we think the full value of that contract is on the order of $4 $5 billion over a 10 year period and that'll be divided under multiple Awardees, we believe.
Got it Super helpful. Thanks, again, congratulations on the quarter and I'll pass it on thank you.
Thanks, John.
Thank you. The next question is coming from city to Silva of Roth.
Speaker Change: Please go ahead.
Hi, Good morning, Hey, good morning team and obviously these calls are easier now that you've made to the Moon Im sure you great.
Congratulations guys.
The LTV awards.
Patrick the LTV the LTV award for Phase two isn't there a significant synergy if you are providing.
T and the lender that would de risk that that would make that up.
A fairly significant consideration in that award.
[noise], absolutely Susie that was our intent and our strategy going into the bid was to put a team together that can provide a complete service.
With demonstrated ability to deliver such a high value piece of cargo for the Artemis program to the surface of the Moon and with our first mission success.
It really just.
Puts us standing tall in terms of our competitiveness without procurement.
Okay great.
One is on the.
The staffing you're at now in the east.
The operations Center, you opened up and supporting these incremental pipeline awards.
Are you at a staff, where you could support those would that need to be incrementally added just any thoughts there would be helpful.
Yeah.
[noise].
Yeah currently we're SaaS.
Both here in Houston at our lunar production operations Center and up in Maryland, you know based on that <unk> contract.
For the first satellite servicing and and then Noah work, we're doing on <unk> III, we have adequate staff as we look at these awards. It's a first world problem to add incremental staff to organize and manage the work as it comes in.
We're fairly we anticipate that will remain fairly flat in terms of SaaS needs and burn rate. This year, even with these significant awards because.
Speaker Change: Number one we've rolled off mission one so that if we do receive a <unk> 22 awards that workforce will roll into <unk> 'twenty, two which is the next clips award and then the LTV and NSS contracts as I've talked about have other team members that will also provide workforce and so we're.
Not necessarily looking for a large ramp up this year in workforce associated with these contracts that we're talking about just the minor adjustments as we go forward.
Okay. Thanks, guys congratulations.
Thank you James.
Thank you. The next question is coming from Mike Crawford of B Riley Securities. Please go ahead.
Mike Crawford: Thank you I guess this is perceived run two or did you say that of the 269 million of backlog that you expect to recognize 80% or $215 million of that is.
Revenue in 2024.
Speaker Change: Approximately that would be primarily the owned contract as I said earlier, we're burning at about $12 5 million in revenue on that.
And then the rest would be cliffs contracts <unk>, two and three.
Okay, Great and then of the <unk>.
12, and a half billion of success payments do you expect to receive from our board.
Speaker Change: That.
Speaker Change: Out of a possible how much of success payments, where you eligible to potentially receive.
Well I'll answer that one.
Mike.
That's what the way we broke it down with the milestones.
Speaker Change: The only payload that we did not receive data back.
From was the scouts payload, which studied the.
Engine plume interaction with the dust on the surface of the Moon.
And so we held back.
5% based on that pay or not well not activating not collecting that data. However, we were able to get data.
Four to replace that through our own cameras are that gave us a good understanding of the regular behavior and we're going to offer that pack to massive so we expect the combination of.
About 95% of the NASA payment.
Be received and then an augmentation for equitable adjustments for the additional data that we can.
Speaker Change: We can deliver to master that puts us well over 100% of the planned payment.
Excellent and then just finally, one kind of broader.
Speaker Change: Question, while we're waiting for department at final NDAA. Besides just a continuing resolution we do have the NASA budget. Although it's you know flattish is there anything that you.
Like or don't like about the NASA budget.
Sure.
Speaker Change: Well you know like I said in my comments the budget is.
Probably $2 billion less and requested by NASA and when we first looked at it it looks like the roadmap that we've put together.
As a company for commercializing cislunar space in providing infrastructure.
So the moon is fully supported and.
And we like that that puts us that means we're on the right track and it shows that the government is still committed to.
Returning in humans to the Moon and sustainable way and so that's that's really a fantastic outcome, perhaps such strong bipartisan support.
For the Artemis campaign.
We did see I did mentioned the Osage project, which is on orbit satellite servicing and manufacturing that's under the <unk> contract. When we took over that contract that project has some cost challenges and schedule challenges and so we're working very closely with NASA to kind of put that project back in the box and get it.
Launched.
And under the cost bogie that.
But that's always looking to meet we received.
Notice from the from the spending bill in the appropriations that that funding is in place for the task order in 2024, but the future is not set there should.
Should we.
NASA and and that's as the prime contractor might be able to put that back in the box. There's a chance that the will to fly that one won't be there and so there's a little uncertainty there in the <unk> contract after 'twenty 'twenty four.
The only piece that you.
You asked that.
Give us some pause and that's the one that I mentioned in my opening remarks, but we're confident we have a plan for that one and where we're at full funding. These task orders run a year by year.
So there.
There is.
Considerable amount of alternative work that fits that one contract. It's an omnibus multidisciplinary engineering contract. So a number of projects and programs within Goddard fall under that contract and so if we see the old sand project in under a threat well have additional work I'm sure.
Speaker Change: <unk> provided by the center and NASA.
Protect those jobs up in Maryland.
Other than that I think I'm very pleased with where the NASA budget is.
Excellent. Thank you very much.
Thank you Sir no further questions I'd like to have the floor back over to intuitive she'd CEO, Steve autonomous for closing comments.
Well. Thank you everyone for joining today's call I. Appreciate your thanks for our successful landing on February 22nd it was truly a monumental event.
And two of the machines made history with that soft landing on the Moon, and we look forward to representing the United States and our stakeholders as we make more historic achievements in the months and years to come. So thank you very much. Thank you guys.
Ladies and gentlemen, thank you for your participation. This concludes today's event you may disconnect. Your lines have log off the webcast at this time and enjoy the rest of your day.
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