Q2 2024 Intuitive Machines Inc Earnings Call

Intuitive Machine's: Ladies and gentlemen, thank you for standing by. Welcome to the Intuitive Machine's second quarter 2024 conference call.

Operator: Quarter 2024 Conference. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star 11 on your telephone. You will then hear an automated message advising that your hand is raised.

Operator: quarter, 2024 Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during this session, you will need to press Star 11 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 11 again.

Speaker Change: At this time, all participants are in a listen-only mode.

Speaker Change: After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising that your hand is raised.

Operator: Withdraw your question Please press star 1 1 again, please be advised that today's conference is being. I would now like to turn the conference. Zhang, Head of Investor Relations, please go ahead. Good morning.

Operator: Please be advised that today's conference is being recorded.

Speaker Change: To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to Stephen Zhang, Head of Investor Relations. Please go ahead.

Operator: I please go ahead.

Steve Altemus: Good morning. Welcome to the Intuitive Machin Second Quarter, 2024 earnings call. Chief Executive Officer Steve Altemus, an interim Chief Financial Officer and Controller, Steve Vontur, are leaving 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 manufacturers. These factors are described under forward-looking statements in the company's earnings press release and the company's most recent 10-K and 10-Q filed with the SEC.

Stephen Zhang: Welcome to the Intuitive Machines second quarter 2024 earnings call. Chief Executive Officer Steve Altemus and Interim Chief Financial Officer and Controller Steve Vontur 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. However, 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-K and 10-Q filed with the SEC. We do not undertake any obligation to update these forward-looking statements.

Speaker Change: Good morning. Welcome to the Intuitive Machines second quarter 2024 earnings call. Chief Executive Officer Steve Altemus and Interim Chief Financial Officer and Controller Steve Vontur are leading the call today.

Stephen Zhang: We also expect to discuss certain financial measures and information that are non-GAAP measures as defined in the applicable SEC rules and regulations. Reconciliation for the company's gap measures is included in the earnings release filed on Form 8K. 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.intuitivemachines.com slash investor. Now, I'll turn the call over to Steve Altemus.

Speaker Change: Before we begin, please note that some of the information discussed during today's call will consist of forward-looking statements.

Speaker Change: setting forth our current expectations with respect to the future of our business, the economy, and other events.

Speaker Change: The company's actual results could differ materially from those indicated in any forward-looking statements due to many factors.

Speaker Change: These factors are described under forward-looking statements in the company's earnings press release and the company's most recent 10-K and 10-Q filed with the SEC.

Steve Altemus: 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. Reconciliation for 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.

Speaker Change: We do not undertake any obligation to update forward-looking statements.

Speaker Change: We also expect to discuss certain financial measures and information that are non-GAAP measures as defined in the applicable SEC rules and regulations.

Speaker Change: Reconciliation for the company's gap measures are included in the earnings release filed on Form 8K.

Speaker Change: Finally, we posted an earnings call presentation on our website, which provides additional context on our operational and financial performance.

Operator: You can find this presentation on our Investor Relations page at www.intuitiveachines.com slash investors.

Speaker Change: You can find this presentation on our investor relations page at www.intuitivemachines.com slash investors.

Steve Altemus: Now I'll turn the call over to Steve Altemus. Thanks, Stephen, and welcome to everyone joining us this morning. The landmark accomplishments achieved up to and during the second quarter were significant milestones that we believe extend our competitive advantage in providing delivery services, data transmission services, and autonomous operations for living and working in space. I refer to them as the three pillars of space commercialization. The company's ability to advance these three services addresses nearly every commercial vision in space, whether that's at the Moon, living on Mars, mining asteroids, or people just living and operating in space.

Steve Altemus: Thanks, Stephen, and welcome to everyone joining us this morning. The landmark accomplishments achieved up to and during the second quarter were significant milestones that we believe extend our competitive advantage in providing delivery services, data transmission services, and autonomous operations for living and working in space. I refer to them as the three pillars of space commercialization. The company's ability to advance these three services addresses nearly every commercial vision in space. Whether that's living on the moon, living on Mars, mining asteroids, or people just living and operating in space.

Speaker Change: Now I'll turn the call over to Steve Altemus.

Steve Altemus: Thanks, Steven, and welcome to everyone joining us this morning.

Steve Altemus: The landmark accomplishments achieved up to and during the second quarter were significant milestones that we believe extend our competitive advantage in providing delivery services, data transmission services, and autonomous operations.

Speaker Change: for Living and Working in Space.

Steve Altemus: I refer to them as the three pillars of space commercialization.

Steve Altemus: The company's ability to advance these three services addresses nearly every commercial vision in space.

Steve Altemus: whether that's at the moon, living on Mars, mining asteroids, or people just living and operating in space. It all requires a means to get there, send data, and operate autonomously. And that is Intuitive Machine's trajectory.

Steve Altemus: It all requires a means to get there, send data, and operate autonomously. And that is Intuitive Machines' trajectory. Revenue for the first half of the year was $114.5 million, more than all of 2023. Revenue this quarter was $41.4 billion, more than double the same quarter last year.

Steve Altemus: It all requires a means to get there, send data, and operate autonomously. And that is into the machine's trajectory. Revenue for the first half of the year was 114.5 million and more than all of 2023. Revenue this quarter was 41.4 million and more than double the same quarter last year.

Speaker Change: Revenue for the first half of the year was $114.5 million.

Speaker Change: and more than all of 2023.

Speaker Change: Revenue this quarter was $41.4 billion, more than double the same quarter last year.

Steve Altemus: We are advancing into the year's second half with zero debt on our balance sheet and sufficient cash to fund expected operations for the next 12 months. in two of the machines booked nearly $70 million of new backlogged so far this year with several sizeable opportunities still on the horizon. This successful execution is underpinned by Senate appropriations marking up $174.5 million for the OSAM project in 2025, which we believe stabilizes the company's OAMS-3 contract revenue base and gives us confidence in raising the low end of the full year 2024 revenue outlook from $200 million to $210 million, resulting in a new range of $210 million to $240 million.

Steve Altemus: We are advancing into the year's second half with zero debt on our balance sheet and sufficient cash to fund expected operations for the next 12 months. Intuitive Machines has booked nearly $70 million of new backlog so far this year with several sizable opportunities still on the horizon. This successful execution is underpinned by Senate appropriations marking up $174.5 million for the OSAM project in 2025, which we believe stabilizes the company's OMS-3 contract revenue base and gives us confidence in raising the low end of the full year 2024 revenue outlook from $200 million to $210 million, resulting in a new range of $210 million to $240 million. This equates to 2.6 to three times prior year sales.

Speaker Change: We are advancing into the year's second half with zero debt on our balance sheet and sufficient cash to fund expected operations for the next 12 months.

Intuitive Machines: Intuitive Machines booked nearly 70 million dollars of new backlog so far this year with several sizable opportunities still on the horizon.

Speaker Change: This successful execution is underpinned by Senate appropriations marking up $174.5 million for the OSAM project in 2025.

Speaker Change: which we believe stabilizes the company's OMS-3 contract revenue base and gives us confidence in raising the low end of the full year 2024 revenue outlook from $200 million.

Speaker Change: to $210 million, resulting in a new range of $210 million to $240 million. This equates to 2.6 to 3 times prior year sales.

Steve Altemus: This equates to 2.6 to three times prior year sales. For our second mission, we're making considerable progress with the assembly integration and testing of our lander, including successful flight engine qualification. In July, in partnership with NASA, Intuitive Machines finalized the landing site for our next mission. We believe our expertise in reconnaissance and site selection is world-class, and with that, we have the ability to identify landing areas potentially holding valuable resources. Collectively, as part of our continued growth cycle, successful flight engine qualification and landing site selection are foundational capabilities that allow us to evolve our systems as we move towards fielding heavy cargo class landers to support delivery and lunar prospecting activities.

Steve Altemus: For our second mission, we're making considerable progress with the assembly, integration, and testing of our lander, including successful flight engine qualification. In July, in partnership with NASA, Intuitive Machines finalized the landing site for our next mission. We believe our expertise in reconnaissance and site selection is world-class, and with that, we have the ability to identify landing areas potentially holding valuable resources.

Speaker Change: For our second mission, we're making considerable progress with the assembly, integration, and testing of our lander, including successful flight engine qualification.

Speaker Change: In July, in partnership with NASA, Intuitive Machines finalized the landing site for our next mission.

Speaker Change: We believe our expertise in reconnaissance and site selection is world-class, and with that, we have the ability to identify landing areas potentially holding valuable resources.

Steve Altemus: Collectively, as part of our continued growth cycle, successful flight engine qualification and landing site selection are foundational capabilities that allow us to evolve our systems as we move towards fielding heavy cargo class landers to support delivery and lunar prospecting activities. This complements our developing capabilities that are essential for future delivery services, data transmission services, and autonomous operations. Now that we are in our new Houston Spaceport Facility, we have the capacity to construct multiple spacecraft simultaneously.

Speaker Change: Collectively, as part of our continued growth cycle, successful flight engine qualification and landing site selection are foundational capabilities that allow us to evolve our systems as we move

Speaker Change: towards fielding heavy cargo class landers to support delivery and lunar prospecting activities.

Steve Altemus: This complements our developing capabilities that are essential for future delivery services, data transmission services, and autonomous operations.

Speaker Change: This complements our developing capabilities that are essential for future delivery services, data transmission services, and autonomous operations.

Steve Altemus: Now that we are in our new Houston Space Board facility, we have the capacity to construct multiple spacecraft simultaneously. For our third mission, we have designed and manufactured the majority of our flight hardware, received supplier components, and are preparing for assembly and integration. As a part of our lunar missions, I want to point out that Intuitive Machines' rideshare delivery services are offered to fill excess payload capacity on the launch vehicle in addition to our lunar lander missions, which improves mission profitability. As of the second quarter, Intuitive Machines has sold out rideshare capacity on our second mission.

Speaker Change: Now that we are in our new Houston Spaceport Facility.

Steve Altemus: For our third mission, we have designed and manufactured the majority of our flight hardware, received supplier components, and are preparing for assembly and integration. As part of our lunar missions, I want to point out that Intuitive Machines ride-share delivery services are offered to fill excess payload capacity on the launch vehicle in addition to our lunar lander missions, which improves mission profitability. As of the second quarter, Intuitive Machines has sold out rideshare capacity on our second mission.

Speaker Change: We have capacity to construct multiple spacecrafts simultaneously. For our third mission, we have designed and manufactured the majority of our flight hardware, received supplier components, and are preparing for assembly and integration.

Speaker Change: As a part of our lunar missions, I want to point out that Intuda Machines ride-share delivery services are offered to fill excess payload capacity on the launch vehicle in addition to our lunar lander missions, which improves mission profitability.

Speaker Change: As of the second quarter, Intuitive Machines has sold out rideshare capacity on our second mission.

Steve Altemus: We've secured commercial rideshare delivery services for asteroid mining on our third mission, and satellite deployment services on missions beyond our current NASA contract admissions. This model of creating and maturing commercial services through initial government contracts is one we believe is a winning formula.

Steve Altemus: We've secured commercial rideshare delivery services for asteroid mining on our third mission and Satellite Deployment Services on missions beyond our current NASA-contracted mission. This model of creating and maturing commercial services through initial government contracts is one we believe is a winning formula. Now shifting focus to another dimension of our business, we also completed the system requirements review for our Lunar Terrain Vehicles Services Program. This milestone validated Intuitive Machines' wheeled vehicle and heavy cargo class lander design.

Speaker Change: We've secured commercial rideshare delivery services for asteroid mining on our third mission.

Speaker Change: and Satellite Deployment Services on missions beyond our current NASA contracted missions.

Speaker Change: This model of creating and maturing commercial services through initial government contracts is one we believe is a winning formula.

Steve Altemus: Now shifting focus to another dimension of our business, we also completed the system requirements review for our lunar terrain vehicle services program. This milestone validated Intuitive Machines wheeled vehicle and heavy cargo class lander designs. I am as unique among competitors in the TV bidding pool as we are the only competing prime contractor with demonstrated experience delivering to transmitting data from and autonomously operating on the surface of the Moon. Recall in February of this year, Intuitive Machines delivered both NASA and commercial payloads to the lunar surface, providing data services and autonomously operated for 167 hours on the lunar surface through the IAM-1 mission.

Speaker Change: Now shifting focus to another dimension of our business, we also completed the System Requirements Review for our Lunar Terrain Vehicles Services Program. This milestone validated Intuitive Machines' wheeled vehicle and heavy cargo class lander designs.

Steve Altemus: I am unique among competitors in the LTV bidding pool, as we are the only competing prime contractor with demonstrated experience delivering to, transmitting data from, and autonomously operating on the surface of the moon. Recall that in February of this year, Intuitive Machines delivered both NASA and commercial payloads to the lunar surface, provided data services, and autonomously operated for 167 hours on the lunar surface through the IM-1 mission. We continue to develop these services through contracts that support both commercial and government endeavors in space.

Speaker Change: I am as unique among competitors in the LTV bidding pool as we are the only competing prime contractor with demonstrated experience delivering to, transmitting data from, and autonomously operating on the surface of the moon.

Speaker Change: Recall, in February of this year, Intuda Machines delivered both NASA and commercial payloads to the lunar surface, providing data services, and autonomously operated for 167 hours on the lunar surface through the IM-1 mission.

Steve Altemus: We continue to develop these services through contracts that support both commercial and government endeavors in space. With respect to our current service capabilities and planned growth, in response to NASA canceling Viper, citing budgetary concerns and delays, Intuitive Machines submitted a letter to NASA expressing interest in commercializing the NASA Viper rover system. The improved economics of our heavy cargo class lander, coupled with our demonstrated capabilities, enables Intuitive Machines the unique opportunity to offer to fly Viper as a commercial mission. Viper is designed to autonomously identify and transmit data in search of key resources on the Moon's South Pole.

Speaker Change: We continue to develop these services through contracts that support both commercial and government endeavors in space.

Steve Altemus: With respect to our current service capabilities and planned growth. In response to NASA canceling Viper, citing budgetary concerns and delays. Intuitive Machines submitted a letter to NASA expressing interest in commercializing the NASA Viper rover system. The improved economics of our heavy cargo class lander, coupled with our demonstrated capabilities, enables Intuitive Machines the unique opportunity to offer to fly Viper as a commercial mission. VIPER is designed to autonomously identify and transmit data in search of key resources on the moon's south pole.

Speaker Change: With respect to our current service capabilities and planned growth, in response to NASA cancelling VIPER, citing budgetary concerns and delays,

Speaker Change: Intuitive Machines submitted a letter to NASA expressing interest in commercializing the NASA Viper rover system.

Speaker Change: The improved economics of our heavy cargo class lander, coupled with our demonstrated capabilities, enables Intuitive Machines the unique opportunity to offer to fly Viper as a commercial mission.

Speaker Change: BIPER is designed to autonomously identify and transmit data in search of key resources on the moon's south pole.

Steve Altemus: We recognize the valuable data Viper could provide to the science community and its importance to U.S. space exploration. The significance of Viper is underscored by China's continued advancements in lunar exploration. Published this past month, Chinese scientists analyzed soil samples from its 2020 sample return mission and discovered water in its molecular form for the first time. In June, the nation autonomously returned the first ever material samples from the far side of the Moon, a capability that requires lunar orbiting data relay satellites. These advancements are part of China's larger push to become the dominant space power. Intuitive Machines believes this is positively impacting policy decisions in Washington that support stable funding and commercial opportunities for Intuitive Machines services.

Steve Altemus: We recognize the valuable data VIPER could provide to the science community and its importance to U.S. space exploration. The significance of VIPER is underscored by China's continued advancements in lunar exploration. Published this past month, Chinese scientists analyzed soil samples from its 2020 sample return mission and discovered water in its molecular form for the first time.

Speaker Change: We recognize the valuable data VIPER could provide to the science community and its importance to U.S. space exploration.

Speaker Change: The significance of Viper is underscored by China's continued advancements in lunar exploration.

Speaker Change: Published this past month, Chinese scientists analyzed soil samples from its 2020 sample return mission and discovered water in its molecular form for the first time.

Steve Altemus: In June, the nation autonomously returned the first ever material samples from the far side of the moon, a capability that requires lunar orbiting data relay satellites. These advancements are part of China's larger push to become the dominant space power. Intuitive Machines believes this is positively impacting policy decisions in Washington that support stable funding and commercial opportunities for Intuitive Machines services. Data transmission is a critical element of NASA's Artemis program. Similar to the satellites that supported China's Far Side Sample Return mission, the Near Space Network Services contract is the keystone for enabling comprehensive data services for navigation, prospecting, and communications around the moon.

Speaker Change: In June, the nation autonomously returned the first-ever material samples from the far side of the moon, a capability that requires lunar-orbiting data relay satellites.

Speaker Change: These advancements are part of China's larger push to become the dominant space power.

Intuitive Machines: Intuitive Machines believes this is positively impacting policy decisions in Washington that support stable funding and commercial opportunities for Intuitive Machines services.

Steve Altemus: Data transmission is a critical element of NASA's Artemis program. Similar to the satellites that supported China's far side sample return mission, the Near Space Network Services contract is the keystone for enabling comprehensive data services for navigation, prospecting, and communications around the Moon. The award for the NSNS contract is imminent, and we believe Intuitive Machines is uniquely positioned to win and deliver orbiting lunar data satellites in support of autonomously operated infrastructure on and around the Moon.

Intuitive Machines: Data transmission is a critical element of NASA's Artemis program.

Intuitive Machines: Similar to the satellites that supported China's Far Side Sample Return mission, the Near Space Network Services contract is the keystone for enabling comprehensive data services for navigation, prospecting, and communications around the moon.

Steve Altemus: The award for the NSNS contract is imminent, and we believe Intuitive Machines is uniquely positioned to win and deliver orbiting lunar data satellites in support of autonomously operated infrastructure on and around the moon. Intuitive Machines remains laser-focused on establishing itself as a pioneering space exploration company.

Intuitive Machines: The award for the NSNS contract is imminent, and we believe Intuitive Machines is uniquely positioned to win and deliver orbiting lunar data satellites in support of autonomously operated infrastructure on and around the moon.

Steve Altemus: Intuitive Machines remains laser focused on establishing itself as a pioneering space exploration company. With the addition of NSNS, Intuitive Machines will be positioned to offer the three key services that enable a robust lunar economy. Leveraging contracted revenue, we continue to develop and demonstrate capabilities that allow for a higher level of delivery services, data transmission services, and autonomous operations. Consistent with our business thesis, we continue to execute on these three pillars of space services. It's exciting to see the lunar economy unfolding at such a rapid pace. We are in a strong financial position with demonstrated technologies and capabilities that we believe underscore our competitive advantage.

Intuitive Machines: Intuitive Machines remains laser-focused on establishing itself as a pioneering space exploration company.

Steve Altemus: With the addition of NSNS, Intuitive Machines will be positioned to offer the three key services that enable a robust lunar economy. Leveraging contracted revenue, we continue to develop and demonstrate capabilities that allow for higher levels of delivery services, data transmission services, and autonomous operations. Consistent with our business thesis, we continue to execute on these three pillars of space service. It's exciting to see the lunar economy unfolding at such a rapid

Intuitive Machines: With the addition of NSNS, Intuitive Machines will be positioned to offer the three key services that enable a robust lunar economy.

Intuitive Machines: Leveraging contracted revenue, we continue to develop and demonstrate capabilities that allow for higher level of delivery services, data transmission services, and autonomous operations.

Intuitive Machines: Consistent with our business thesis, we continue to execute on these three pillars of space services.

Steve Altemus: We are in a strong financial position with demonstrated technologies and capabilities that we believe underscore our competitive advantage. With that, I'll turn the call over to Intuitive Machines Interim Chief Financial Officer, Steve Vontur. Thank you, Steve, and thanks to everyone joining us today. We had another strong quarter financially, with Q2 revenues up 130 percent over the same quarter of the prior year, and coupled with our solid backlog, improves our cash outlook and gives us the confidence to raise the low end of our full year revenue guidance. More on that in a moment.

Intuitive Machines: It's exciting to see the lunar economy unfolding at such a rapid pace.

Intuitive Machines: We are in a strong financial position with demonstrated technologies and capabilities that we believe underscore our competitive advantage.

Steven Vontur: With that, I'll turn the call over to Intuitive Machines interim Chief Financial Officer Steve on tour. Thank you, Steve, and thanks to everyone joining us today. We had another strong quarter financially, with Q2 revenues up 130% over the same quarter of the prior year, and coupled with our solid backlog, improves our cash outlook and gives us the confidence to raise the low end of our full year revenue guidance. More on that in a moment. Revenue in the quarter expanded to 41.4 million compared to 18 million in the second quarter of 2023, driven primarily by the OMS, LTBS, and Jetson Low Power Nuclear Satellite projects.

Steve Vontur: With that, I'll turn the call over to Intuitive Machines Interim Chief Financial Officer, Steve Vontur.

Steve Vontur: Revenue in the quarter expanded to $41.4 million compared to $18 million in the second quarter of 2023, driven primarily by the OMS, LTBS, and Jetson Low-Power Nuclear Satellite Project. The $41.4 million in revenue for the quarter also includes the impact of changes in estimates associated with IM-2 and IM-3 NASA Eclipse contract modifications to increase contract prices, which were under negotiation in Q1.

Speaker Change: Thank you, Steve, and thanks to everyone joining us today.

Steve Vontur: We had another strong quarter financially, with Q2 revenues up 130% over the same quarter of the prior year, and, coupled with our solid backlog, improves our cash outlook and gives us the confidence to raise the low end of our full-year revenue guidance.

Steve Vontur: More on that in a moment.

Steve Vontur: Revenue in the quarter expanded to $41.4 million compared to $18 million in the second quarter of 2023, driven primarily by the OMS, LTBS, and Jetson Low-Power Nuclear Satellite projects.

Steven Vontur: The 41.4 million in revenue for the quarter also includes the impact of changes in estimates associated with IM2 and IM3 NASA Clips contract modifications to increase contract price. These mods were under negotiation in Q1. During the second quarter, we revised contract revenue and cost estimates to align with these modifications, which resulted in lowered progress towards completion. However, the modifications reduced schedule uncertainty going forward on our next two missions, giving us better insight into the landing site location on mission two and NASA payload delivery times for mission three. In the long run, we believe these contract modifications allow us to continue to expand our operational lunar program as well as enhance our capabilities to meet new mission requirements in the future.

Steve Vontur: The $41.4 million in revenue for the quarter also includes the impact of changes in estimates associated with I-M-2 and I-M-3 NASA Eclipse contract modifications to increase contract price.

Steve Vontur: During the second quarter, we revised contract revenue and cost estimates to align with these modifications, which resulted in lowered progress towards completion. However, the modifications reduce schedule uncertainty going forward on our next two missions, giving us better insight into the landing site location for mission two and NASA payload delivery times for mission three. In the long run, we believe these contract modifications allow us to continue to expand our operational lunar program, as well as enhance our capabilities to meet new mission requirements in the future. Operating loss for the quarter was $28.2 million versus $13.2 million in the second quarter of 2023.

Steve Vontur: These mods were under negotiation in Q1.

Steve Vontur: During the second quarter, we revised contract revenue and cost estimates to align with these modifications, which resulted in lowered progress towards completion.

Steve Vontur: However, the modifications reduce schedule uncertainty going forward on our next two missions, giving us better insight into the landing site location.

Steve Vontur: on Mission 2 and NASA payload delivery times for Mission 3. In the long run, we believe these contract modifications allow us to continue to expand our operational lunar program as well as enhance our capabilities to meet new mission requirements in the future.

Steven Vontur: Operating loss for the quarter was 28.2 million versus 13.2 million in the second quarter of 2023. The higher operating loss in the quarter was driven primarily by the completion of the IM1 mission earlier this year. The non-cash impacts of the previously mentioned contract modifications, as well as 3.7 million in higher SG&A due to increases in public company cost, employee compensation benefits, stock-based compensation, and rent on our new corporate headquarters. Our cash balance remains strong at 31.6 million. In the quarter, we pay it off 21.5 million of launch provider payments for our three NASA CLIPS missions and retired 5 million of our outstanding debt.

Speaker Change: Operating loss for the quarter was 28.2 million versus 13.2 million in the second quarter of 2023.

Steve Vontur: The higher operating loss in the quarter was driven primarily by the completion of the IM-1 mission earlier this year, the non-cash impacts of the previously mentioned contract modification, as well as 3.7 million in higher SG&A due to increases in public company costs, employee compensation, stock-based compensation, and rent on our new corporate headquarters. Our cash balance remains strong at $31.6 million.

Speaker Change: The higher operating loss in the quarter was driven primarily by the completion of the IM-1 mission earlier this year, the non-cash impacts of the previously mentioned contract modifications,

Speaker Change: as well as 3.7 million in higher SG&A.

Speaker Change: due to increases in public company cost.

Speaker Change: employee compensation benefits, stock-based compensation, and rent on our new corporate headquarters.

Steve Vontur: In the quarter, we paid off $21.5 million of launch provider payments for our three NASA Eclipse missions and retired $5 million of our outstanding debt. These payments in Q2 helped de-risk the company's cash position going forward, as only the final launch payments for each mission remain at approximately $3 million. In early July, we paid off the outstanding $3 million balance on our credit mobilization loan, and we are now debt-free.

Speaker Change: Our cash balance remains strong at $31.6 million.

Speaker Change: In the quarter, we paid off $21.5 million of launch provider payments for our three NASA Eclipse missions and retired $5 million of our outstanding debt. These payments in Q2 helped de-risk the company's cash position going forward, as only the final launch payments for each mission remain at approximately $3 million each.

Steven Vontur: These payments in Q2 help de-risk the company's cash position going forward, as only the final launch payments for each mission remain at approximately 3 million each. In early July, we paid off the outstanding 3 million balance on our credit mobilization loan, and we are now debt free. With these launch provider payments behind us, coupled with no debt on our balance sheet and the fact that we expect no further significant cash outflows for the company, we believe our cash position is sufficient to fund current expected operations for the next 12 months. This 12-month outlook does not include the impact of any new contract wins, final mission success milestone payments on IM2, or opportunistic capital raises, any of which could further strengthen our cash position.

Speaker Change: In early July, we paid off the outstanding $3 million balance on our credit mobilization loan, and we are now debt-free.

Steve Vontur: With these launch provider payments behind us, coupled with no debt on our balance sheet and the fact that we expect no further significant cash outflows for the company, we believe our cash position is sufficient to fund current expected operations for the next 12 months. This 12-month outlook does not include the impact of any new contract wins, final mission success milestone payments on IM2, or opportunistic capital raises, any of which could further strengthen our cash position.

Speaker Change: With these launch provider payments behind us, coupled with no debt on our balance sheet, and the fact that we expect no further significant cash outflows for the company, we believe our cash position is sufficient to fund current expected operations for the next 12 months.

Speaker Change: This 12 month outlook does not include the impact of any new contract wins, final mission success milestone payments on IN2, or opportunistic capital raises, any of which could further strengthen our cash position.

Steven Vontur: For added color, we ended July with a 32.3 million cash balance.

Steve Vontur: For Added Color, we ended July with a $32.3 million cash balance. Operating cash used was $31.3 million in the quarter, with CapEx of $2.2 million, resulting in free cash flow in the quarter of an outflow of $33.5 million. As mentioned earlier, this outflow was predominantly driven by $21.5 million in launch provider payments for our three lunar missions. Going forward, we expect higher inflows in the second half of the year, driven by our strong visibility into the timing of collection for contracted milestone payments. We ended the second quarter with a contracted backlog of $213 million, and we expect a decline of $9.4 million as we execute on OMS and other contracts.

Speaker Change: For Added Color, we ended July with a $32.3 million cash balance.

Steven Vontur: Operating cash used was 31.3 million in the quarter, with capex of 2.2 million, resulting in free cash flow in the quarter of an outflow of 33.5 million. As mentioned earlier, this outflow was predominantly driven by 21.5 million of launch provider payments for our three. Going forward, we expect higher inflows in the second half of the year driven by our strong visibility at the timing of collection for contracted milestone payments. We ended the second quarter with a contracted backlog of 213 million and expected decline of 9.4 million as we executed on the OMS and other contracts.

Speaker Change: Operating cash used was $31.3 million in the quarter with CapEx of $2.2 million, resulting in free cash flow in the quarter of an outflow of $33.5 million. As mentioned earlier, this outflow was predominantly driven by $21.5 million of launch provider payments for our three lunar missions.

Speaker Change: Going forward, we expect higher inflows in the second half of the year, driven by our strong visibility into the timing of collection for contracted milestone payments.

Speaker Change: We ended the second quarter with a contracted backlog of $213 million.

Speaker Change: And expect a decline of 9.4 million as we execute it on OMS and other contracts.

Steven Vontur: Partially, I'll set my new award, such as the $29 million for Phase I of the LTBS project and contract price increases on our remaining NASA eclipse contracts, as I discussed earlier. We expect to grow backlog through the remainder of the year driven by key program awards, including the next OMS-3 task quarters, coupled with the new award decisions on NSNS and CP-22. Moving on to our outlook for the year, as Steve said, we had a great first half of the year with 114.5 million in revenues, which already exceed revenue for all of 2023. Given our confidence and visibility into the remainder of 2024, we are raising the low end of our full-year revenue guidance from 200 to 210 million, resulting in a new range of 210 to 240 million for the year.

Steve Vontur: Although partially offset by new awards, such as the $29 million for phase one of the LTBS project and contract price increases on our remaining NASA Eclipse contracts, as I discussed earlier, we expect to grow backlog through the remainder of the year, driven by key program awards, including the next OMS III task orders, coupled with the new award decisions on NSNS and CP22. Moving on to our outlook for the year, as Steve said, we had a great first half of the year with $114.5 million in revenues, which already exceeds revenues for all of 2023.

Marshall: Partially offset by new awards, such as the $29 million for Phase 1 of the LTBS project, and contract price increases on our remaining NASA Eclipse contracts, as I discussed earlier.

Speaker Change: We expect to grow backlog through the remainder of the year driven by key program awards, including the next OMS III task orders, coupled with the new award decisions on NSNS and CP22.

Speaker Change: Moving on to our outlook for the year, as Steve said, we had a great first half of the year with $114.5 million in revenues, which already exceeds revenue for all of 2023.

Steve Vontur: Given our confidence and visibility into the remainder of 2024, we are raising the low end of our full-year revenue guidance from $200 to $210 million, resulting in a new range of $210 to $240 million for the year. Overall, this was another strong quarter for Intuitive Machines.

Speaker Change: Given our confidence and visibility into the remainder of 2024, we are raising the low end of our full year revenue guidance from $200 to $210 million, resulting in a new range of $210 to $240 million for the year.

Operator: quarter, 2024 conference call. At this time, all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star 11 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 11 again.

Steven Vontur: Overall, this was another strong quarter for Intuitive Machines. We look forward to the pending award decisions in the coming weeks that will continue to drive accelerated growth and solidify our long-term business plan.

Speaker Change: Overall, this was another strong quarter for Intuitive Machines. We look forward to the pending award decisions in the coming weeks that will continue to drive accelerated growth and solidify our long-term business plan. With that, Operator, we are now ready for questions.

Operator: With that, operator, we are now ready for questions. Certainly, as a reminder to ask a question, press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by when we compile the Q&A roster.

Operator: We look forward to the pending award decisions in the coming weeks that will continue to drive accelerated growth and solidify our long-term business plan. With that, Operator, we are now ready for questions. As a reminder, to ask a question, press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 118.

Operator: Please be advised that today's conference is being recorded.

Speaker Change: Certainly. As a reminder, to ask a question, press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster.

Operator: Standby while we compile the Q&A rod, and our first question will be coming soon. DeSilva of Roth Capital, your line: Good morning, Steve, and Steve, congratulations on the progress here. Steve Altemus, I wanted to start with the Lunar Rover program and NASA VIPER.

Operator: I please go ahead. Good morning. Welcome to the Intuitive Machin second quarter, 2024 earnings call.

Suzy De Silva: And our first question will be coming from Suzy De Silva of Roth Capital; your line is open. Good morning, Steve. Steve, congrats on the progress here.

Speaker Change: And our first question will be coming from Suzy DaSilva of Roth Capital. Your line is open.

Steve Altemus: Chief executive officer Steve Altemus, an interim chief financial officer and controller, Steve Vontur, are leaving 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 manufacturers.

Steve Altemus: Steve, I want to start with the Lunar Rover Program and NASA VIPER. Understanding the, you know, that NASA is going to respond to you for your submission. You know, what's the schedule timing of that response? And, you know, what are the implications of Viper is unable to continue in terms of how you move forward with the critical information we are going to gather? Yeah, good morning, Suzy. Thanks for the question. Viper is a very interesting story referencing budget challenges on NASA's side. They canceled the Viper Rover Program, but asked if there were any interested parties commercially or internationally.

Speaker Change: Good morning, Steve. Steve, congrats on the progress here. Steve Altemus, I wanted to start with the Lunar Rover program and NASA VIPER. Understanding the...

Suji DeSilva: Understanding the, You know, the that NASA is going to respond to you with for your submission. You know, what's the scheduled timing of that response? And, you know, what are the implications if Viper is unable to continue? How you move forward with the critical information. Yeah, good morning, Suji.

Steve Altemus: These factors are described under forward looking statements in the company's earnings press release and the company's most recent 10K and 10Q 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. Reconciliation for the company's GAAP measures are included in the earnings release filed on Form 8K. Finally, we posted an earnings call presentation on our website, which provides additional context on our operational and financial performance.

Speaker Change: You know the that NASA is going to respond to you with for your submission You know, what's the scheduled timing of that response? And you know What are the implications of Viper is unable to continue in terms of how you move forward with the the critical information was going to gather

Steve Altemus: Thanks for the question. Viper is a very interesting story referencing budget challenges on NASA's side. They canceled the Viper rover program, but asked if there were any interested parties commercially or internationally. And so Intuitive Machines, like I said, has the capability to fly about 1,500 kilograms of payload to the surface on our heavy cargo class lander called Nova-D. Viper, as we know, is about 500

Speaker Change: Yeah, good morning, Suji. Thanks for the question. VIPER is a very interesting story referencing budget challenges on NASA's side. They canceled the VIPER rover program but asked if there was any interested parties.

Steve Altemus: And so, in two of the machines, like I said, has the capability to fly about 1,500 kilograms of payload to the surface on our heavy cargo class lander called Nova D. Viper, as we know, is about 500 kilograms. That gives us about 1,000 kilograms of extra payload space on Nova D to improve the economics. If we can monetize that 1,000 kilograms, that'll offset any costs for actually flying the mission commercially. Propose that to NASA in partnership with other commercial companies, international partners, and universities. We put in that coalition together in a response to NASA via an RFI, which came out on Friday.

Speaker Change: commercially or internationally and so Intuitive Machines like I said has the capability to fly about 1,500 kilograms of payload to the surface on our heavy cargo class lander called Nova D.

Steve Altemus: That gives us about 1,000 kilograms of extra payload space on Nova-D to improve the economics. If we can monetize that 1,000 kilograms, that will offset any costs for actually flying the mission commercially. Proposed that to NASA in partnership with other commercial companies, international partners, and universities. We're putting that coalition together in a response to NASA via an RFI, which came out on Friday, and we expect to submit that here this month with that solution.

Speaker Change: Viper as we know it is about 500 kilograms that gives us about a thousand kilograms of extra payload space

Speaker Change: on NOVA-D to improve the economics.

Speaker Change: If we can monetize that 1,000 kilograms, that'll...

Speaker Change: offset any costs for actually flying the mission commercially.

Speaker Change: proposed that to NASA in partnership with other commercial companies, international partners, and universities.

Operator: You can find this presentation on our Investor Relations page at www.intuitiveachines.com slash investors.

Speaker Change: We're putting that coalition together in a response to NASA via an RFI, which came out on Friday.

Steve Altemus: And we expect to submit that here in the month with that solution. And, you know, our position there is that Viper's science is important to the lunar scientists and the future of the Artemis program. And it's very important in terms of prospecting for volatiles and trained water ice in the soil. Our mission, too, does some prospecting, but the really engineering demonstration Viper is a highly sophisticated scientific instrument. We think that the data that collects is precursor data for Artemis to help astronauts understand how to live and work on the surface of the Moon. So, we think that science is very important.

Steve Altemus: Now I'll turn the call over to Steve Altemus. Thanks Stephen and welcome to everyone joining us this morning. The landmark accomplishments achieved up to and during the second quarter were significant milestones that we believe extend our competitive advantage in providing delivery services, data transmission services and autonomous operations for living and working in space.

Steve Altemus: And, you know, our position there is that Viper's science is important to the lunar scientists and the future of the Artemis program, and it's very important in terms of prospecting for volatiles, entrained water ice in the soil.

Speaker Change: and we expect to submit that here in a month.

Speaker Change: with that solution and you know our position there is that Viper science is important to the lunar scientists and the future of the Artemis program.

Speaker Change: And it's very important in terms of prospecting for volatiles, entrained water ice in the soil.

Steve Altemus: Our mission, too, does some prospecting but is really an engineering demonstration. Viper is a highly sophisticated scientific instrument. We think that the data that it collects is precursor data for Artemis to help astronauts understand how to live and work on the surface of the moon. So we think that science is very important. We think that the LTV science that we'll collect based on that rover will also come too late for influencing the designs of systems that need to be deployed to the surface.

Speaker Change: Our mission too does some prospecting.

Steve Altemus: I refer to them as the three pillars of space commercialization. The company's ability to advance these three services addresses nearly every commercial vision in space, whether that's at the moon, living on Mars, mining asteroids, or people just living and operating in space. It all requires a means to get there, send data, and operate autonomously. And that is into the machines trajectory. Revenue for the first half of the year was 114.5 million and more than all of 2023.

Speaker Change: But really engineering demonstration, VYPR is a highly sophisticated scientific instrument. We think that the data that it collects is precursor data for Artemis.

Speaker Change: to help astronauts understand how to live and work on the surface of the moon.

Steve Altemus: We think that the LTV science that will collect based on that rover comes also, but maybe comes too late for influencing the designs of systems that need to be deployed to the surface.

Speaker Change: We think that science is very important. We think that the LTV science that we'll collect based on that rover comes also but maybe comes too late for influencing the designs of systems that need to be deployed to the surface.

Suzy De Silva: Davis. All right. Thanks, Steve.

Steve Altemus: All right, thanks, Steve. And then, you know, diversifying from the launch capabilities, the communications. I'm curious, what are the next milestones for building a lunar comms network, having satellites orbiting, or that can help with future missions? What are the next milestones or steps to watch for in that important endeavor? Yeah, let's see. As you know, we built the ground network on our first mission. We used about 12 radio astronomy dishes, large aperture dishes on Earth to round out the ground network so we could communicate directly from Earth to the moon.

Steve Altemus: And then, you know, diversifying from the launch capabilities, the communications, I'm curious, what are the next milestones we're building, the Lunar Combs Network having satellites orbiting, and that can help with future missions? What are the next milestones or steps to watch for in that important endeavor? Yeah, let's see. As you know, we've built the ground network on our first mission. We used about 12 radio astronomy dishes, large aperture dishes on Earth to round out the ground networks so we can communicate direct to Earth, from Earth to the Moon. We have under construction communications satellite data relay satellite for our first instantiation.

Speaker Change: yeah

Speaker Change: Okay, all right. Thanks Steve

Speaker Change: And then, you know, diversifying from the launch capabilities, the communications, I'm curious, what are the next milestones for building a lunar comms network, having satellites orbiting and that can help with future missions, what are the next milestones or steps to watch for in that important endeavor?

Steve Altemus: Revenue this quarter was 41.4 million and more than double the same quarter last year. We are advancing into the year's second half with zero debt on our balance sheet and sufficient cash to fund expected operations for the next 12 months, in two of the machines booked nearly $70 million of new backlogged so far this year with several sizeable opportunities still on the horizon. This successful execution is underpinned by Senate appropriations marking up $174.5 million for the OSAM project in 2025, which we believe stabilizes the company's OAMS-3 contract revenue base and gives us confidence in raising the low end of the full year 2024 revenue outlook from $200 million to $210 million, resulting in a new range of $210 million to $240 million.

Speaker Change: Yeah, let's see. As you know, we built the ground network on our first mission. We used about 12...

Speaker Change: Radio Astronomy dishes, large aperture dishes on Earth to round out the ground network so we can communicate direct from Earth to the moon.

Steve Altemus: We have under construction a communications satellite and data relay satellite for our first instantiation. We're aiming for mission three to put that satellite on, but we'll see where that ends up. The major milestone here this year is going to be the near space network services contract. Intuitive Machines made the competitive range on both the direct-to-earth, they call it, contract line item and also the data relay contract line item.

Speaker Change: We have under construction a communications satellite, data relay satellite for our first instantiation. We're aiming for Mission 3 to put that satellite on, but we'll see where that ends up. The major milestone here this year is going to be the Near Space Network Services contract.

Steve Altemus: We're aiming for mission three to put that satellite on, but we'll see where that ends up. The major milestone here this year is going to be the Nearspace Network Services Contract. Intuitive Machines made the competitive range on both the direct to Earth, they call it a contract line item, and also the data relay contract line item. We expect those awards this month in August and in September for those two contract awards. That is the beginning, really, to kick us off on the initial operational capability and instantiating that in space.

Speaker Change: Intuitive Machines made the competitive range on both the direct-to-earth, they call it, contract line item and also the data relay contract line item. We expect those awards this month in August and in September for those two contract awards.

Steve Altemus: We expect those awards this month, in August and in September for those two contract awards. That is the beginning, really, to kick us off on the initial operational capability and instantiating that in space. Hopefully, we can talk about that next quarter. One quick financial question.

Steve Altemus: This equates to 2.6 to three times prior year sales. For our second mission, we're making considerable progress with the Assembly integration and testing of our lander, including successful flight engine qualification. In July, in partnership with NASA, Intuitive Machines finalized the landing site for our next mission. We believe our expertise in reconnaissance and site selection is world-class, and with that, we have the ability to identify landing areas potentially holding valuable resources. Collectively, as part of our continued growth cycle, successful flight engine qualification and landing site selection are foundational capabilities that allow us to evolve our systems as we move towards fielding heavy cargo class landers to support delivery and lunar prospecting activities. This complements our developing capabilities that are essential for future delivery services, data transmission services, and autonomous operations.

Speaker Change: That is the beginning really to kick us off on the initial operational capability and instantiating that in space.

Steve Altemus: Hopefully, we can talk about that next quarter.

Steven Vontur: Great, then one quick financial question. You talked about the cash covering you for the next several quarters. Are facilities cost already in place? Is the CAPEX for the required facilities done, or is there more that has to happen in the next 12 months? We've essentially completed the CAPEX investment for the facility. As you know, our new lunar production operations center was financed by the City of Houston, and we pay in a long-term leaseback arrangement to the city. So our lease costs come out of our working capital or operating income, and the CAPEX is essentially our portion of that is essentially paid off.

Steve Vontur: You talked about the cash covering you for the next several quarters. Are facilities costs already in place? Is the CapEx for the required facilities done, or is there more that has to happen in the next 12 months? We've essentially completed the CapEx investment for the facility. As you know, our new Lunar Production Operations Center was financed by the city of Houston, and we pay in a long-term lease-back arrangement to the city. So our lease costs come out of our working capital or operating income, and the CapEx is, essentially, our portion of that is essentially paid off.

Speaker Change: Hopefully we can talk about that next quarter.

Speaker Change: Okay, great. Then one quick financial question. You talked about the cash covering you for the next several quarters. Have our facilities cost already in place? Is the CapEx for the required facilities done or is there more that has to happen in the next 12 months?

Speaker Change: We've essentially completed the CapEx investment for the facility. As you know, our new Lunar Production Operations Center was financed by the City of Houston.

Speaker Change: And we pay in a long-term leaseback arrangement to the city. So our lease costs come out of our working capital or operating income.

Steve Vontur: So we don't expect any large CapEx requirements going forward. Thanks again. Congratulations on the prize.

Steven Vontur: So we don't expect any large CAPEX requirements going forward.

Speaker Change: The CAPEX is essentially, our portion of that is essentially paid off. So we don't expect any large CAPEX requirements going forward.

Steve Altemus: Now that we are in our new Houston Space Board facility, we have capacity to construct multiple spacecraft simultaneously. For our third mission, we have designed and manufactured the majority of our flight hardware, received supplier components, and are preparing for assembly and integration. As a part of our lunar missions, I want to point out that Intuitive Machines' rideshare delivery services are offered to fill excess payload capacity on the launch vehicle in addition to our lunar lander missions, which improves mission profitability.

Suji DeSilva: Thanks, Suji. And our next question will be coming from Griffin Boss of B Raleigh Securities. Your line is: Hi, good morning.

Speaker Change: Okay, thanks again, and congrats on the progress.

Griffin Boss: And our next question will be coming from a Griffin boss of the Riley Securities. Your line is open, Griffin. Hi. Good morning. Thank you for taking my question. So first, I just want to pick you back on the NSNS conversation. I believe in the last call, your expectation for that award, and I guess for CP22, the Diane Formation as well, was for earlier this summer. Just here is if you have any color or any idea what's causing the delay there? Beyond both of those contracts, you know, we see this kind of up and down in terms of trying to predict procurement awards from the government.

Suji: Thanks, Suji.

Suji: And our next question will be coming from Griffin Boss.

Griffin Boss: Thank you for taking my question. So, first, I just want to piggyback on the NSNS conversation. I believe in the last call, your expectation for that award and, I guess, for CP22, the IAM4 mission as well, was for earlier this summer. Just curious if you have any color or any idea what's causing the delay there.

Speaker Change: Of the Raleigh Securities, your line is open, Griffin.

Speaker Change: Hi, good morning. Thank you for taking my question.

Griffin Boss: piggyback on the NSNS conversation. I believe in the last call your expectation for that award and I guess for CP22, the IAM4 mission as well, was for earlier this summer. Just curious if you have any color or any idea what's causing the delay there?

Steve Altemus: As of the second quarter, Intuitive Machines has sold out rideshare capacity on our second mission. We've secured commercial rideshare delivery services for asteroid mining on our third mission, and satellite deployment services on missions beyond our current NASA contract admissions. This model of creating and maturing commercial services through initial government contracts is one we believe is a winning formula.

Steve Altemus: Yeah, on both of those contracts, you know, we see this kind of ups and down in terms of trying to predict procurement awards from the government. Sometimes that takes longer than anticipated. We take the best information we get from NASA on their scheduled procurement, and then we take the updates and communicate them to us. So right now, we're fairly confident we're going to hear both the CP22 award and the NSNS award outcomes in August here, and the second of the NSNS awards in September, and that's directly from our counterparts inside the government. Okay. Thanks, Steve. And then I also wanted to get some clarity on Viper as well.

Speaker Change: Yeah, on both of those contracts, you know, we see this kind of up and down in terms of trying to predict procurement awards from the government.

Steve Altemus: Sometimes, that takes longer than anticipated. We take the best information we get from NASA on their scheduled procurement, and then we take the updates and communicate them to us. So right now, we're fairly confident. We're going to hear both the CP22 award and the NSNS award outcomes in August here; the second of the NSNS awards in September. And that's directly from our counterparts inside the government. Yes. Understood. Okay.

Speaker Change: Sometimes that takes longer than anticipated.

Speaker Change: We take the best information we get from NASA on their...

Steve Altemus: Now shifting focus to another dimension of our business, we also completed the system requirements review for our lunar terrain vehicle services program. This milestone validated Intuitive Machines wheeled vehicle and heavy cargo class lander designs. I am as unique among competitors in the TV bidding pool as we are the only competing prime contractor with demonstrated experience delivering to transmitting data from and autonomously operating on the surface of the moon. Recall in February of this year Intuitive Machines delivered both NASA and commercial payloads to the lunar surface providing data services and autonomously operated for 167 hours on the lunar surface through the IAM-1 mission.

Speaker Change: scheduled procurement, and then we take the updates and communicate them to us. So right now we're fairly confident we're going to hear both the CP22 award and the NSNS award outcomes.

Speaker Change: in August here, the second of the NSNS awards in September. And that's directly from our counterparts inside the government.

Steve Altemus: Is there any, does Intuitive need to invest, or would Intuitive need to invest anything into Viper to complete that rover? Or are the costs really what you outlined, which would be basically just transporting the rover? Well, I think we're still trying to understand and get a handle on how far NASA goes to and plans to take the rover. Is it all the way up to delivery? I know they're completing the thermal vacuum testing, which was one area that they had planned to stop before they did that, but I believe that's moving forward.

Griffin Boss: Thanks, Steve.

Steve Altemus: And then also, I wanted to get some clarity on Viper as well. Is there any, does Intuitive need to invest or would Intuitive need to invest anything into Viper to complete that rover, or are the costs really what you outlined, which would be basically just transporting the rover? Well, I think still trying to understand and get a handle on how far NASA goes to and plans to take the rover. Is it all the way up to delivery? I know they're completing the thermal vacuum testing, which was one area that they had plans to stop before they did that, but I believe that's moving forward.

Speaker Change: Understood. Okay, thanks Steve. And then also I wanted to get some clarity on Viper as well. Is there any, does Intuitive need to invest or would Intuitive need to invest anything into Viper to complete that rover or are the costs really what you outlined which would be basically just transporting the rover?

Steve Altemus: We continue to develop these services through contracts that support both commercial and government endeavors in space. With respect to our current service capabilities and planned growth, in response to NASA canceling Viper, citing budgetary concerns and delays, Intuitive Machines submitted a letter to NASA expressing interest in commercializing the NASA Viper Rover system. The improved economics of our heavy cargo class lander coupled with our demonstrated capabilities enables Intuitive Machines the unique opportunity to offer to fly Viper as a commercial mission.

Speaker Change: Well I think we're still trying to understand and get a handle on how far NASA goes to and plans to take the rover. Is it all the way up to delivery? I know they're completing the thermal vacuum testing which was one area that

Steve Altemus: That's a cost that we won't have to cover. I think there are some operational costs to actually operate the instruments on the surface, where there would be some either contribution by NASA or some investment needed to be made to pay for that. I don't think that the $84 million budget left to go is actually realistic in terms of what we would do commercially. That's a government number.

Steve Altemus: That's a cost that we won't have to cover. I think there are some operational costs to actually operate the instruments on the surface where there would be some either contribution by NASA or some investment needed to pay for that. I don't think that the $84 million budget left to go is actually real in terms of what we would do commercially. That's a government number. That's not a commercial number. So it's not that significant, in my opinion. But I would want to take key select members from the build team and from the science team and have them join our team to help us operate on the surface.

Speaker Change: They had planned to stop.

Speaker Change: Before they did that, but I believe that's moving forward. That's a cost that we won't have to cover

Speaker Change: I think there are some operational costs to actually operate the instruments on the surface where there would be some either contribution by NASA or some investment needed to be made to pay for that.

Speaker Change: I don't think that the $84 million budget left to go is actually...

Steve Altemus: That's not a commercial number, so it's not that significant, in my opinion. But I would want to take key select members from the build team and from the science team and have them join our team to help us operate on the surface. Got it. Okay, that's super helpful, Steve. And then just last one for me, just trying to get a better sense of, in terms of modeling, when we could expect milestone payments for IM2, the wording in the press release and the queue are a little bit different.

Steve Altemus: Viper is designed to autonomously identify and transmit data in search of key resources on the Moon South Pole. We recognize the valuable data Viper could provide to the science community and its importance to US space exploration. The significance of Viper is underscored by China's continued advancements in lunar exploration. Published this past month, Chinese scientists analyzed soil samples from its 2020 sample return mission and discovered water in its molecular form for the first time.

Speaker Change: in terms of what we would do commercially. That's a government number. That's not a commercial number, so it's not...

Speaker Change: That's significant in my opinion, but I would want to take key select members from the build team and the science team and have them join our team to help us operate on the surface.

Griffin Boss: Got it. Okay, that's super helpful, Steve.

Steve Altemus: And then just last one for me, just trying to get a better sense of in terms of modeling when we could expect a milestone, potential milestone payments for IAM 2. The wording and the press release and the queue is a little bit different. So, in the queue, you say that the launch window was extended to early 2025. So just want to get some clarity. If you have any sense of whether you're expecting that. The IAM 2 launch is to be in January 25. Is that correct? Oh, I see what you're referring to. What we have to manage to what I found out of the first mission is it's better to manage to our ship date when we go to the cake.

Speaker Change: Got it. Okay, that's super helpful, Steve. And then, just last one for me, just trying to get a better sense of, in terms of modeling, when we could expect milestone, potential milestone payments for IM2.

Steve Altemus: So in the queue, you say that the launch window was extended to early 2025. So just want to get some clarity if you have any sense of whether you're expecting the IM2 launch to be on, you know, January 25. Is that correct?

Speaker Change: The wording in the press release and the queue is a little bit different. So in the queue you say that the launch window was extended to early 2025. So I just want to get some clarity if you have any sense of whether you're expecting that.

Steve Altemus: In June, the nation autonomously returned the first ever material samples from the far side of the Moon, a capability that requires lunar orbiting data relay satellites. These advancements are part of China's larger push to become the dominant space power. Intuitive Machines believes this is positively impacting policy decisions in Washington that support stable funding and commercial opportunities for Intuitive Machines services. Data transmission is a critical element of NASA's Artemis program. Similar to the satellites that supported China's far side sample return mission, the Near Space Network Services contract is the keystone for enabling comprehensive data services for navigation, prospecting, and communications around the Moon. The award for the NSNS contract is imminent, and we believe Intuitive Machines is uniquely positioned to win and deliver orbiting lunar data satellites in support of autonomously operated infrastructure on and around the Moon.

Speaker Change: the IM-2 launch to be in January 25, is that correct?

Steve Altemus: Oh, I see what you're referring to. What we have to manage to, and what I found out from the first mission is it's better to manage our ship date when we go to the Cape. That's when the lander is essentially completed, and that's what we can track internally and within our control, barring any technical problems. We then have about a 35-day flow at the launch site through the payload processing facility at the launch pad.

Speaker Change: Oh, I see what you're referring to. What we have to manage to, what I found out of the first mission, is it's better to manage to our ship date when we go to the Cape.

Steve Altemus: That's when the landers essentially completed. That's what we can track to internally and within our control, barring any technical problems. We then have about a 35-day flow at the launch site through the payload processing facility in the launch pad. Some of that work on scheduling the actual launch time is not within our control. As you recall, there were several highly important missions from our last attempt that pushed us around the launch manifest several months. And so, to the greatest extent, I want to stress that the importance isn't the actual launch day. It's that this timeframe of the year, this season of launching to the South Pole, is of the most importance.

Speaker Change: That's when the lander is essentially completed, that's what we can track to internally and within our control, barring any technical problems. We then have about a 35 day flow at the launch site through the payload processing facility in the launch pad.

Steve Altemus: Some of that work on scheduling the actual launch time is not within our control. As you recall, there were several highly important missions from our last attempt that pushed us around the launch manifest for several months. And so, to the greatest extent, I want to stress that the importance isn't the actual launch day. It's that this timeframe of the year, this season of launching to the South Pole, is of the utmost importance. And we have that season will be December through the first quarter of January.

Speaker Change: Some of that work on scheduling the actual launch time is not within our control. As you recall, there were several highly important missions from our last attempt that pushed us around the launch manifest several months.

Speaker Change: And so to the greatest extent, I want to stress that the importance isn't the actual launch day. It's that this time frame of the year, this season of launching to the South Pole, is of the most importance. And we have that season will be December through the first quarter of January. And so as long as we get off in that region, I'm confident...

Steve Altemus: Intuitive Machines remains laser focused on establishing itself as a pioneering space exploration company. With the addition of NSNS Intuitive Machines will be positioned to offer the three key services that enable a robust lunar economy. Leveraging contracted revenue, we continue to develop and demonstrate capabilities that allow for higher level of delivery services, data transmission services, and autonomous operations. Consistent with our business thesis, we continue to execute on these three pillars of space services. It's exciting to see the lunar economy unfolding at such a rapid pace. We are in a strong financial position with demonstrated technologies and capabilities that we believe underscore our competitive advantage.

Steve Altemus: And we have that season will be December through the first quarter of January. And so, as long as we get off in that region, I'm confident we won't have any major delays. And so we're tracking to the rollout date or ship date to the Cape. And then we'll see what happens in terms of that season of launch opportunities. One, we've already just not disclosed, but actually de-conflicted is the potential for Europa mission as a planetary window. NASA's Europa mission will take absolute priority on the launch pad, and so we chose to move out of November and focus on the December, January time frame for our launch attempts.

Steve Altemus: And so, as long as we get off the ground in that region, I'm confident we won't have any major delays. And so, we're tracking to the rollout date or ship date to the Cape, and then we'll see what happens in terms of that season of launch opportunities. One, we've already just... Not disclosed, but actually de-conflicted is the potential Europa mission as a planetary window. NASA's Europa mission will take absolute priority on the launch pad.

Speaker Change: Boom.

Speaker Change: Not disclosed, but actually deconflicted is the potential Europa mission.

Steve Altemus: And so we chose to move out of November and focus on the December-January timeframe for our launch attempt. Got it. Great. Yeah, no, that's really helpful. Thanks, Steve. Appreciate it. And thanks for taking my call. Again, Andres Sheppard, your line is open. Hi, good morning, everyone.

Speaker Change: as a planetary window, NASA's Europa mission will take absolute priority on the launch pad. And so we chose to move out of November and focus on the December-January timeframe for our launch attempts.

Griffin Boss: That's really helpful. Thanks to you, I appreciate it, and thanks for taking my questions. Great, Griffin.

Steven Vontur: With that, I'll turn the call over to Intuitive Machines Interim Chief Financial Officer Steve on tour. Thank you, Steve, and thanks to everyone joining us today. We had another strong quarter financially with Q2 revenues up 130% over the same quarter of the prior year, and coupled with our solid backlog, improves our cash outlook and gives us the confidence to raise the low end of our full year revenue guidance.

Speaker Change: Got it. Great. That's where you...

Speaker Change: Yeah, that's really helpful. Thanks, Steve. Appreciate it. And thanks for taking my questions.

Griffin Boss: Great, Griffin.

Griffin Boss: Andres Sheppard,

Griffin Boss: [inaudible]

Steven Vontur: More on that in a moment. Revenue in the quarter expanded to 41.4 million compared to 18 million in the second quarter of 2023, driven primarily by the OMS, LTBS, and Jetson Low Power Nuclear Satellite projects. The 41.4 million in revenue for the quarter also includes the impact of changes in estimates associated with IM2 and IM3 NASA Clips contract modifications to increase contract price. These mods were under negotiation in Q1. During the second quarter, we revised contract revenue and cost estimates to align with these modifications, which resulted in lowered progress towards completion.

Andres Sheppard: Again, Andres Sheppard, your line is open.

Speaker Change: Thank you for watching. If you liked this video, please subscribe. And if you want to see more videos like this, please subscribe to my channel. I'll see you in the next video.

Andres Sheppard: Hi, good morning, everyone. Thanks for taking our questions, and congratulations on another great quarter. Steve wanted to maybe, hey guys, I want to just follow up maybe on the last question there.

Speaker Change: Again, Andreas Shepherd, your line is open.

Andres Sheppard: Thanks for taking our questions and congratulations on another great quarter. Steve wanted to maybe, um, guys, why don't you just follow up on the last question there? Can you maybe remind us? I know you touched on it briefly.

Speaker Change: Hi, good morning everyone. Thanks for taking our questions and congratulations on another great quarter.

Speaker Change: Hey guys, I wanted to just follow up maybe on the last question there.

Steve Altemus: So, can you maybe remind us, I know you touched on it briefly, what are kind of the important milestones for the IM-2 mission that are needed throughout this year, as you get closer to that Q-125 launch, and then maybe additionally, how should we now think about the timeline for the IM-3 mission? Thank you. Steve mentioned in his comments, we had just finalized contract mods with NASA that accounted for schedule movement on the IM-2 and IM-3 mission based on landing site selection for mission 2 and for payload delivery dates moving to the right on NASA, payload delivery dates moving to the right.

Andres Sheppard: What are the kind of important milestones for the IM-2 mission that are needed throughout this year as you get closer to that Q1-25 launch? And then, maybe additionally, how should we now think about the timeline for the IM-3 mission? Thank you. As Steve mentioned in his comments, we have just finalized contract mods with NASA that accounted for schedule movement on the IM-2 and IM-3 missions based on landing site selection for Mission-2 and for payload delivery dates moving to the right based on NASA payload delivery dates moving to the right. So again, we tried to line those modifications up to the seasons when we would be able to hit those specific landing sites for Mission-2 and Mission-3.

Speaker Change: Can you maybe remind us, I know you touched on it briefly,

Speaker Change: What are the important milestones for the IM-2 mission that are needed throughout this year as you get closer to that Q1-25 launch? And then maybe additionally, how should we now think about the timeline for the IM-3 mission? Thank you.

Steven Vontur: However, the modifications reduced schedule uncertainty going forward on our next two missions, giving us better insight into the landing site location on mission two and NASA payload delivery times for mission three. In the long run, we believe these contract modifications allow us to continue to expand our operational lunar program as well as enhance our capabilities to meet new mission requirements in the future.

Speaker Change: As Steve mentioned in his comments, we have just finalized contract mods with NASA.

Speaker Change: that accounted for schedule movement on the IM-2 and IM-3 mission based on landing site selection.

Steven Vontur: Operating loss for the quarter was 28.2 million versus 13.2 million in the second quarter of 2023. The higher operating loss in the quarter was driven primarily by the completion of the IM1 mission earlier this year. The non-cash impacts of the previously mentioned contract modifications as well as 3.7 million in higher SG&A due to increases in public company cost, employee compensation benefits, stock based compensation and rent on our new corporate headquarters. Our cash balance remains strong at 31.6 million.

Speaker Change: for mission two and for payload delivery dates moving to the right on NASA payload delivery dates moving to the right. So again we tried to line those modifications up to the seasons on where we would be able to hit those specific landing sites.

Steven Vontur: So again, we tried to line those modifications up to the seasons on where we would be able to hit those specific landing sites for Mission 2 and Mission 3. So mission 2 pushed towards the end of the year and into the first quarter. What we did from a financial standpoint is we planned to book the final milestone payments, as you know, about 10% of that mission 2 clips contract in the new year and not affect the financials of year and close for 2024. Knowing that there's a lot of variability in outside parties that can affect our date.

Steve Vontur: So Mission-2 pushed towards the end of the year and into the first quarter. What we did from a financial standpoint was we planned to book the final milestone payments, as you know, about 10% of that Mission-2 CLPS contract in the new year and not affect the financials of year-end close for 2024, knowing that there's a lot of variability in outside parties that can affect our date. So we took a conservative approach there, and so for our forecast, we don't have that booked this year.

Speaker Change: for Mission 2 and Mission 3.

Speaker Change: So Mission 2 pushed towards the end of the year and into the first quarter. What we did from a financial standpoint is we planned to book

Speaker Change: The final milestone payments, as you know, about 10% of that Mission 2 CLPS contract in the new year and not affect

Steven Vontur: In the quarter, we pay it off 21.5 million of launch provider payments for our three NASA Clips missions and retired 5 million of our outstanding debt. These payments in Q2 help de-risk the company's cash position going forward as only the final launch payments for each mission remain at approximately 3 million each. In early July, we paid off the outstanding 3 million balance on our credit mobilization loan and we are now debt free.

Speaker Change: The financials of year-end close for 2024.

Andres Sheppard: So we took a conservative approach there, and so for our forecast, we don't have that book this year. So I don't expect an impact even if we were to go in January to the financials for 2024. For 2025, again, we're looking at the season and in the modification that's a did-agreed. We're finalizing that today, but did agree in principle on the launch in landing moving into the October, November timeframe. Again, fourth quarter of 2025. Got it. Super helpful. I appreciate all that color.

Speaker Change: knowing that there's a lot of variability in outside parties that can affect our date. So we took a conservative approach there, and so for our forecast, we don't have that book this year. So I don't expect an impact.

Steve Vontur: So I don't expect an impact, even if we were to go in January, on the financials for 2024. For 2025, again, we're looking at the season and in the modification, NASA did agree, we're finalizing that today, but did agree in principle on the launch and landing moving into the October-November timeframe. Again, fourth quarter of 2025. Got it. Super helpful, Steve. Appreciate all that color.

Speaker Change: even if we were to go in January to the financials for 2024.

Steven Vontur: With these launch provider payments behind us, coupled with no debt on our balance sheet and the fact that we expect no further significant cash outflows for the company, we believe our cash position is sufficient to fund current expected operations for the next 12 months. This 12 month outlook does not include the impact of any new contract wins, final mission success milestone payments on IM2, or opportunistic capital raises, any of which could further strengthen our cash position. For added color, we ended July with a 32.3 million cash balance.

Speaker Change: For 2025, again, we're looking at the season and in the modification, NASA did agree, we're finalizing that today, but did agree in principle on the landing.

Speaker Change: Launch and landing moving into the October-November timeframe, again, fourth quarter of 2025.

Steven Vontur: Maybe this is a quick follow-up as it pertains to own. Williams. I'm wondering if you can maybe give us some color on kind of how that contract is progressing. And specifically, you know, what kind of margins should we expect for this year? Thank you. Well, I'll give you the first part of it, at least. And then Steve can talk about the margins we see. But the OAMS contract, as you know, was at the end of last year, was embattled. It was the OSAAM project itself was up for cancellation review or continuation review. They call it what we got as a new contractor coming in.

Steve Altemus: And maybe just as a quick follow-up, as it pertains to owning. I'm wondering if you can maybe give us some color on kind of how that contract is progressing and specifically, you know, what kind of margins we should expect for this year. Well, I'll give you the first part of it, at least, and then Steve can talk about the margins we see. But the OHMS contract, as you know, at the end of last year was embattled.

Steve: Got it. Super helpful, Steve. Appreciate all that color. And maybe just as a quick follow-up, as it pertains to OMS,

Steven Vontur: Operating cash used was 31.3 million in the quarter with capex of 2.2 million, resulting in free cash flow in the quarter of an outflow of 33.5 million. As mentioned earlier, this outflow was predominantly driven by 21.5 million of launch provider payments for our three Going forward, we expect higher inflows in the second half of the year driven by our strong visibility at the timing of collection for contracted milestone payments. We ended the second quarter with a contracted backlog of 213 million and expected decline of 9.4 million as we executed on the OMS and other contracts.

Speaker Change: I'm wondering if you can maybe give us some color on kind of how that contract is progressing and specifically, you know, what kind of margins should we expect for this year? Thank you.

Speaker Change: Well, I'll give you the first part of it at least, and then Steve can talk about the margins we see.

Speaker Change: The OHMS contract, as you know, was, at the end of last year, was embattled. It was, the OSAMP project itself was up for cancellation review or continuation review, they call it.

Steve Altemus: The OSAM project itself was up for cancellation review or continuation review, they call it. What we got as a new contractor coming in, we got a fresh look at that OSAM project. We were asked to look at what it would take to ramp that down, but we also got the opportunity to say how you might save that project, how you might get it back on schedule and back on budget. We did that, and we worked with NASA to put a plan together that actually put it back on schedule for its launch and back in the budget box that was briefed up the chain to NASA.

Steve Altemus: We got a fresh look at that OSAAM project. We were asked to go look at what it would take to ramp that down. But also we got the opportunity to say how you might save that project, how you might get it back on schedule and back on budget. We did that, and we worked with NASA to put a plan together that actually puts it back on schedule for its launch and back in the budget box. That was briefed up the chain to NASA. And there was some language, authorization language or appropriations language that said they wanted a review again.

Speaker Change: What we got as a new contractor coming in, we got a fresh look at that OSAM project.

Steven Vontur: Partially, I'll set my new award, such as the $29 million for Phase I of the LTBS project and contract price increases on our remaining NASA eclipse contracts as I discussed earlier. We expect to grow backlog through the remainder of the year driven by key program awards, including the next OMS-3 task quarters, coupled with the new award decisions on NSNS and CP-22.

Speaker Change: We were asked to go look at what it would take to ramp that down, but also we got the opportunity to say how you might save that project, how you might get it back on schedule and back on budget.

Speaker Change: We did that and we worked with NASA to put a plan together that actually puts it back on schedule for its launch and back in the budget box.

Steven Vontur: Moving on to our outlook for the year, as Steve said, we had a great first half of the year with 114.5 million in revenues, which already exceed revenue for all of 2023. Given our confidence and visibility into the remainder of 2024, we are raising the low end of our full-year revenue guidance from 200 to 210 million resulting in a new range of 210 to 240 million for the year.

Steve Altemus: There was some authorization language or appropriations language that said they wanted to review again, but they've reaffirmed their interest in flying the OSAM mission with a line item in the appropriations bill that gave it the necessary funds into 2025 to continue on the path as we've restructured it for success.

Speaker Change: That was briefed up the chain to NASA.

Speaker Change: There was some language, authorization language or appropriations language that said they wanted a review again.

Steven Vontur: But they reaffirmed their interest in flying the OSAAM mission with a line item in the appropriations bill that gave it the necessary funds into 2025 to continue on the path as we re-structured it for success. So that's a very positive sign, and that gives us a sense of what the run out on OAMS would be for the balance of the year and gave us confidence in our revenue projections. We currently look at the margins there as probably high single-digit margins on that type of service contract. Nothing else further; I think Steve covered the margin bit there at the end.

Speaker Change: but they've reaffirmed their interest in flying the OSAM mission with a line item in the Appropriations Bill that gave it the necessary funds into 2025 to continue on the path as we've restructured it for success.

Steve Altemus: So that's a very positive sign, and that gives us a sense of what the run-out on OMS would be for the balance of the year and gives us confidence in our revenue projections. We currently look at the margins there as probably high single-digit margins on that type of service contract. Nothing else further than I think Steve covered the margin bit there at the end. We were running fairly hot during the first half of the year.

Steven Vontur: Overall, this was another strong quarter for Intuitive Machines. We look forward to the pending award decisions in the coming weeks that will continue to drive accelerated growth and solidify our long-term business plan.

Speaker Change: So that's a very positive sign, and that gives us a sense of what the run-out on OMS would be for the balance of the year and gave us confidence in our revenue projections. We currently look at the margins there as probably high single-digit margins on that type of service contract.

Operator: With that, operator, we are now ready for questions. Certainly, as a reminder to ask a question, press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by when we compile the Q&A roster.

Steven Vontur: We were running fairly high during the first half of the year. That may tail off just a tad as we get into the second half of the year, but still consistent with our expectations overall for the year.

Speaker Change: Yeah, nothing else further to add. I think Steve covered the margin bit there at the end. We were running fairly hot during the first half of the year. That may tail off just a tad as we get into the second half of the year, but still consistent with our expectations overall for the year.

Steve Altemus: That may slip off just a tad as we get into the second half of the year, but still consistent with our expectations overall. Wonderful, super helpful. And congratulations again. Thanks so much. I'll pass.

Suzy De Silva: And our first question will be coming from Suzy De Silva of Roth Capital, your line is open. Good morning, Steve. Steve, congrats on the progress here.

Andres Sheppard: Wonderful, super helpful, and congratulations again. Thanks so much. I ll pass it on. Thanks, Audrey.

Steve Altemus: Steve, I want to start with the Lunar Rover Program and NASA Viper. Understanding the, you know, that NASA is going to respond to you for your submission. You know, what's the schedule timing of that response? And, you know, what are the implications of Viper is unable to continue in terms of how you move forward with the critical information we are going to gather? Yeah, good morning, Suzy. Thanks for the question. Viper is a very interesting story referencing budget challenges on NASA side.

Andres Sheppard: Thanks, Andres. Thank you and one moment for our next question. Our next question will be coming from Laura, of Dolce Bank. Your line is open, Laura.

Speaker Change: Wonderful, super helpful and congratulations again. Thanks so much. I'll pass it on.

Laura Li: Thank you, and one moment for our next question. Our next question will be coming from Laura Lee. Abdochi Bank, your line is open, Laura. Hey, thank you for taking my question, and congrats on the progress.

Speaker Change: Thanks Andres. Thank you and one moment for our next question.

Speaker Change: Our next question will be coming from Laura Lee.

Laura Li: Hey, thank you for taking my question, and congrats on the progress. So my question is, looking forward, do you have a line of sight on any potential DoD work? Or how do you think about, like, diversifying beyond NASA in the future? Laura, thank you for your question. That's a great question.

Speaker Change: of Dochi Bank. Your line is open, Laura.

Laura Lee: Hey, thank you for taking my question and congrats on the progresses.

Steve Altemus: So my question is looking forward, do you have a line of set on any potential DOD work or how do you think about that worthifying beyond the NASA in the future? Laura, thank you for your question. That's a great question. We have submitted several proposals through our business development group into the DOD for work. We've recently signed a contract with an organization called Sea Ops to do rideshare payloads. We've increased; I mentioned in the script that we gained some rideshare business to take payloads out into exploration class orbits and not necessarily to the surface, but out into some orbits of interest for the DOD.

Laura Lee: So my question is, looking forward, do you have a line of sight on any potential DoD work? Or how do you think about diversifying beyond NASA in the future?

Steve Altemus: They canceled the Viper Rover Program, but asked if there was any interested parties commercially or internationally. And so, in two of the machines, like I said, has the capability to fly about 1500 kilograms of payload to the surface on our heavy cargo class lander called Nova D. Viper, as we know, is about 500 kilograms. That gives us about 1,000 kilograms of extra payload space on Nova D to improve the economics. If we can monetize that 1,000 kilograms that'll offset any costs for actually flying the mission commercially.

Steve Altemus: We have submitted several proposals through our business development group to the DOD for work. We've recently signed a contract with an organization called CEOPS to do rideshare payloads. And so we've increased, I mentioned in the script, that we gained some rideshare business to take payloads out into exploration class orbits. And not necessarily to the surface, but out into some orbits of interest for the DOD.

Speaker Change: Laura, thank you for your question. That's a great question. We have submitted

Speaker Change: several proposals through our business development group into the DoD for work. We've recently signed a contract with an organization called CEOPS to do rideshare payloads.

Speaker Change: Thank you.

Speaker Change: And so we've increased, I've mentioned in the script, that we gained some rideshare business to take payloads out into exploration class orbits, and not necessarily to the surface, but out into

Steve Altemus: Propose that to NASA in partnership with other commercial companies, international partners, and universities. We put in that coalition together in a response to NASA via an RFI, which came out on Friday. And we expect to submit that here in the month with that solution. And, you know, our position there is that Viper's science is important to the lunar scientists and the future of the Artemis program. And it's very important in terms of prospecting for volatiles and trained water ice in the soil.

Steve Altemus: So that's pretty exciting, and then we have also a subcontract with another commercial entity to work on a project with the DOD. We started that one, took that to PDR, and we're expecting a next phase of it. So we are gaining traction there in small bits, and we expect that business to continue to grow. One added thing, Laura, we're also continuing to execute on the jets of low power contract that we started late last year, so that's still in full swing; another AFRL contract. Yeah, correct. Thanks, Steve, for reminding AFRL contract for the jets in nuclear satellite at low power, so we're moving ahead there.

Steve Altemus: So that's pretty exciting. And then we also have a subcontract with another commercial entity to work on a project with the DOD. We started that one, took that to PDR, and we're expecting a next phase of it. So we are gaining traction there in small bits, and we expect that business to continue to grow. One added thing, Laura, we're also continuing to execute on the Jetson Low Power contract that we started late last year. So that's still in full force, another AFRL contract. Yeah, that's correct.

Steve Altemus: Our mission, too, does some prospecting, but the really engineering demonstration Viper is a highly sophisticated scientific instrument. We think that the data that collects is precursor data for Artemis to help astronauts understand how to live and work on the surface of the moon. So, we think that science is very important. We think that the LTV science that will collect based on that rover comes also, but maybe comes too late for influencing the designs of systems that need to be deployed to the surface.

Speaker Change: and to some orbits of interest for the DoD.

Speaker Change: That's pretty exciting. And then we have also a subcontract with another commercial entity to work on a project with the Department of

Speaker Change: DOD, we started that one, took that to PDR, and we're expecting a next phase of it. So we are gaining traction there in small bits, and we expect that business to continue to grow.

Speaker Change: One added thing, Laura, we're also continuing to execute on the Jetson low power contract that we started late last year, so that's still in full swing.

Steve Altemus: Thanks, Steve, for the reminder. The AFRL contract for the Jetson nuclear satellite got low powered, so we're moving ahead there. Okay, all right. Thank you for the color.

Speaker Change: Another AFRL contract. Yeah, correct. Thanks Steve for the reminder. AFRL contract for the Jetson nuclear satellite got low power and so we're moving ahead there.

Laura Li: Okay, thank you for the color. Yeah, that's where it helped.

Andrew Steinhardt: One moment for our next question. Our next question will be coming from Andrew Steinhardt of Canaccord Genuity; your line is open. Hi there, thanks for taking the question, and congrats on a solid quarter. Just a couple quick questions.

Laura Li: Yeah, that's right. One moment for our next question. Our next question will be coming from Andrew Steinhardt of Canaccord Genuity. Your line is open. Uh, hi there.

Laura Lee: Okay, okay. Thank you for the color. Yeah, that's very helpful.

Speaker Change: One moment for our next question.

Speaker Change: Our next question will be coming from Andrew Steinhardt of Canaccord Genuity. Your line is open.

Andrew Steinhardt: Thanks for taking the question. And congrats on a solid quarter. Just a couple quick questions. First,

Suzy De Silva: Davis. All right. Thanks, Steve.

Andrew Steinhardt: Hi there. Thanks for taking the question and congrats on a solid quarter. Just a couple quick questions. First,

Steve Altemus: And then, you know, diversifying from the launch capabilities, the communications, I'm curious, what are the next milestones we're building, the Lunar Combs Network having satellites orbiting, and that can help with future missions? What are the next milestones or steps to watch for in that important endeavor? Yeah, let's see. As you know, we've built the ground network on our first mission. We used about 12 radio astronomy dishes, large aperture dishes on Earth to round out the ground networks so we can communicate direct to Earth, from Earth to the Moon.

Steve Altemus: First, you know, what has, have you guys been speaking with NASA about potentially moving the Viper over to the Nova D mission? People buy any color around that. Yeah, so we have been speaking in NASA again. I spoke about putting a coalition together led by Intuitive Machines, of universities, international partners, and other companies to put together the services we need in terms of the Nova D heavy cargo lander, the launch vehicle, and then the operations piece. We have expressed interest from several different countries, agencies, space agencies, and several companies and several universities. So putting that together will respond in NASA's request for information in greater detail.

Andrew Steinhardt: What is, uh, have you guys been speaking with NASA about, um... We're actually moving the Viper over to the NOVA-D mission to provide some, you know, color around. Yeah, so we have been speaking with NASA. Again, I spoke about putting together a coalition led by Intuitive Machines of universities, international partners, and other companies to put together the services we need in terms of the NOVA-D heavy cargo lander, the launch vehicle, and then the operations piece.

Andrew Steinhardt: You know, what is, have you guys been speaking with NASA about potentially moving the Viper over to the NOVA-D mission? Do you provide any, you know, color around that?

Speaker Change: Yeah, so we have been speaking to NASA again. I spoke about putting a coalition together led by intuitive machines of universities, international partners.

Speaker Change: and other companies to put together the services we need in terms of the NOVA-D heavy cargo lander, the launch vehicle, and then the operations piece. We have expressed interest from several different countries, agencies.

Andrew Steinhardt: We have expressed interest from several different countries, agencies, space agencies, and several companies and several universities. So putting that together, we'll respond to NASA's request for information in greater detail. We did write a letter and express our interest immediately upon notice of cancellation.

Steve Altemus: We have under construction communications satellite data relay satellite for our first instantiation. We're aiming for mission three to put that satellite on, but we'll see where that ends up. The major milestone here this year is going to be the Nearspace Network Services Contract, Intuitive Machines made the competitive range on both the direct to Earth, they call it a contract line item and also the data relay contract line item. We expect those awards this month in August and in September for those two contract awards. That is the beginning really to kick us off on the initial operational capability and instantiating that in space. Hopefully we can talk about that next quarter.

Speaker Change: space agencies, and several companies, and several universities.

Speaker Change: So putting that together, we'll respond in NASA's request for information in greater detail. We did write a letter and express our interest.

Steve Altemus: We did write a letter and express our interest immediately upon notice of cancellation. We think that science is important for the lunar scientists, and we think it's important to gather that in the, I imagine, probably the late 2027 timeframe is when we aim for that mission, but we'll have to see what all the constraints are and what the comments are back from NASA and what their expectations are. I think it's giving the commercial sector an opportunity to pick this rover up and deliver the science and try to do that, or attempt to do that commercially, is a good thing.

Steve Altemus: We think that science is important for lunar scientists, and we think it's important to gather that information in, I imagine, probably the late 2027 timeframe is when we'd aim for that mission. But we'll have to see what all the constraints are and what the comments are back from NASA and what their expectations are. I think giving the commercial sector an opportunity to pick this rover up and deliver the science is a good thing. That rover is nearly 90% complete, probably more than that, and we'd like to see it fly.

Speaker Change: immediately upon notice of cancellation.

Speaker Change: We think that science is important for the lunar scientists.

Speaker Change: We think it's important to gather that in, I imagine, probably the late 2027 time frame is when we'd aim for that mission, but we'll have to see what all the constraints are and what the comments are back from NASA and what their expectations are.

Steve Altemus: Great, then one quick financial question. You talked about the cash covering you for the next several quarters. Are facilities cost already in place? Is the CAPEX for the required facilities done or is there more that has to happen in the next 12 months? We've essentially completed the CAPEX investment for the facility. As you know, our new lunar production operations center was financed by the City of Houston, and we pay in a long-term lease back arrangement to the city. So our lease costs come out of our working capital or operating income, and the CAPEX is essentially our portion of that is essentially paid off. So we don't expect any large CAPEX requirements going forward.

Speaker Change: I think it's giving the commercial sector an opportunity to pick this rover up and deliver the science.

Speaker Change: and try to do that or attempt to do that commercially is a good thing. That rover is nearly 90% complete, probably more than that, and we'd like to see it fly.

Andrew Steinhardt: That rover is nearly 90% complete, probably more than that, and we'd like to see it fly. So we'll have more information on that once we finalize the RFI and submit that to the government and get some feedback. We think that feedback will come in the September timeframe. God, that's excellent. I'll be keeping an eye out for that timeframe in September.

Steve Altemus: We'll have more information on that once we finalize the RFI and submit that to the government and get some feedback. We think that feedback will come in the September time frame. Got it. That's it. I'll be...

Speaker Change: We'll have more information on that once we finalize the RFI and submit that to the government and get some feedback. We think that feedback will come in the September time frame.

Andrew Steinhardt: Thank you for keeping an eye out for that. September, um, and just, uh, follow-up. Sorry, goodbye, which was already covered, but. What are your timing expectations on a contract receipt for IM4 or Near Space Network service? Oh yeah, we received information from NASA, official information, that the NS contract awards would occur in August for the data relay satellites, in the August time frame, and September for the direct-to-Earth, Earth-to-Moon communications in the September time frame. So we're waiting for those patiently, and then the CP22, the next CLPS award, we expect this month in August. Got it. I appreciate all the color.

Speaker Change: Got it. That's excellent. I'll be

Steve Altemus: I'm just a quick follow-up. I guess I'm sorry if I missed it, if it was already covered, but what are the timing expectations on a contract receipt for time for, or near-space network services? Oh, yeah. We received information from NASA, official information, that the NS, NS contract awards would occur in the August timeframe for the data relay satellites, and September for the direct-to-earth to moon communications in the September timeframe. So we're waiting for those patiently. And then the CP-22, the next Clips Award, we expect this month in August. Thank you, Andrew.

Speaker Change: for keeping an eye out for that time frame in September.

Speaker Change: A quick follow-up, I guess.

Speaker Change: I'm sorry if I missed this if it was already covered but what are the what are your timing expectations on a contract receipt for IM4 or near space network services?

Griffin Boss: And our next question will be coming from a Griffin boss of the Riley Securities. Your line is open, Griffin. Hi. Good morning. Thank you for taking my question. So first, I just want to pick you back on the NSNS conversation. I believe in the last call, your expectation for that award, and I guess for CP22, the Diane Formation as well, was for earlier this summer. Just here is if you have any color or any idea what's causing the delay there?

Speaker Change: Oh yeah, we received information from NASA, official information, that the NS contract awards would occur in the August for the data relay satellites, August time frame, and September for the direct-to-Earth.

Speaker Change: Earth-to-moon communications in the September time frame. So we're waiting for those patiently. And then the CP22, the next CLPS award, we expect this month in August.

Griffin Boss: Beyond both of those contracts, you know, we see this kind of up and down in terms of trying to predict procurement awards from the government. Sometimes that takes longer than anticipated. We take the best information we get from NASA on their scheduled procurement, and then we take the updates and communicate them to us. So right now, we're fairly confident. We're going to hear both the CP22 award and the NSNS award outcomes in August here, the second of the NSNS awards in September. And that's directly from our counterparts inside the government. Yes. Understood. Okay. Thanks, Steve.

Speaker Change: Got it. Appreciate all the color. Thank you.

Josh Sullivan: One moment for our next question, which will be coming from Josh Sullivan of the Benchmark Company. Your line is open. Thank you. Good morning. What a Josh.

Andrew Steinhardt: Thank you, Andrew. Thanks.

Andrew Steinhardt: Thank you, Andrew. One moment for our next question. Next we'll be coming from Josh Sullivan of The Benchmark Company. Your line is open. Say good morning. Hey Josh. Hey Josh.

Andrew Steinhardt: One moment for our next question.

Speaker Change: which will be coming from Josh Sullivan of the Benchmark Company. Your line is open.

Josh Sullivan: You know, looking at an election year here, you know, as far as the timing of NSNS and some of the other contracts you're talking about, do you think the government typical September budget flush is going to help move these along, or is this not related to that, do you think? Well, I think in particular, Josh, the NSNS contract, that proposal was submitted last year, and we're patiently awaiting for that award. There's been quite the deliberation. Both contract line items: the Klin 1.2 and Klin 2.2. Both of those have been had selections already to a competitive range.

Joshua Sullivan: You know, we're looking at an election year here. As far as the timing of NSNS and some of the other contracts you're talking about, do you think the government's typical September budget flush is going to help move these along? Or is this not right?

Speaker Change: Hey, good morning.

Josh Sullivan: Hey Josh. Hey Josh.

Josh Sullivan: Looking at an election year here, you know, as far as the timing of NSNS and some of the other contracts you're talking about, do you think that the government typical September budget flush is going to help move these along, or is this not related to that, do you think?

Steve Altemus: And then also, I wanted to get some clarity on Viper as well. Is there any, does Intuitive need to invest or would Intuitive need to invest anything into Viper to complete that rover or are the costs really what you outlined, which would be basically just transporting the rover? Well, I think still trying to understand and get a handle on how far NASA goes to and plans to take the rover. Is it all the way up to delivery?

Steve Altemus: Well, I think in particular, Josh, the NSNS contract. That proposal was submitted last year, and we're patiently awaiting that award. There's been quite a bit of deliberation. Both contract line items, the CLIN 1.2 and CLIN 2.2, both of those have already had selections made to a competitive range. We've made those competitive range brackets and moved forward. We had to proceed to oral discussions. We've had oral discussions with the government on both.

Josh Sullivan: Well, I think in particular, Josh, the NSNS contract, that proposal was submitted last year and we're patiently awaiting for that award. There's been quite the deliberation. Both contract line items.

Josh Sullivan: the CLIN 1.2 and CLIN 2.2. Both of those have been had selections already to a competitive range.

Steve Altemus: We've made those competitive range brackets and moved forward. We had to proceed into oral discussions. We've had oral discussions with the government on both Klin's contract line items, and then we were asked for final proposals for each one of those, and those have been submitted. So we know the programs moving forward, the contracts moving forward in earnest, and, like I said, the government's notified us that an award would be made in August and September, respectively.

Speaker Change: We've made those those competitive range brackets and moved forward. We had to proceed into oral discussions. We've had oral discussions with the government on both

Steve Altemus: I know they're completing the thermal vacuum testing, which was one area that they had plans to stop before they did that, but I believe that's moving forward. That's a cost that we won't have to cover. I think there are some operational costs to actually operate the instruments on the surface where there would be some either contribution by NASA or some investment needed to be made to pay for that. I don't think that the $84 million budget left to go is actually real in terms of what we would do commercially.

Steve Altemus: Clins, Contract Line Items, and then we were asked for final proposals for each one of those, and those have been submitted. So we know the program's moving forward, the contract's moving forward in earnest, and like I said, the government notified us that an award would be made in August and September respectively. So I don't believe that the potential of the election or a continuing resolution will affect the award. And then maybe just one on the Lunar Terrain Program: as far as the requirement to have a viable commercial model, as well as a competitive bid, what are you seeing from commercial demand? You know, would the COPS relationship be a vector for LTV?

Speaker Change: Clins, Contract Line Items, and then we were asked for final proposals for each one of those, and those have been submitted. So, we know the program's moving forward, the contract's moving forward in earnest.

Speaker Change: And like I said, the government notified us that an award would be made in August and September respectively.

Steve Altemus: So I don't believe that the potential of the election or a continued resolution will affect the awards.

Speaker Change: So I don't believe that the potential of the election or a continuing resolution will affect the awards.

Steve Altemus: That's a government number. That's not a commercial number. So it's not that significant in my opinion. But I would want to take key select members from the build team and from the science team and have them join our team to help us operate on the surface. Got it. Okay, that's super helpful, Steve.

Steve Altemus: And then maybe just one on the literature and program, you know, as far as the requirement to have, you know, a viable commercial model as well as a competitive bid. What are you seeing from commercial demand interest? You know, what would the COPS relationship be a vector for LPD? COPS is not necessarily a factor for LTV and that their primary focus is in a delivery transport leg of putting payloads out into what I call exotic orbits or more non-traditional orbits. And so we can accommodate them with rideshare. I do see the LTV as a really interesting commercial opportunity where about seven months of the year NASA will operate that manned rover, both autonomously and with crew.

Speaker Change: Okay, got it. And then maybe just one on the Lunar Terrain Program, you know, as far as the requirement to have, you know, viable commercial model as well as a competitive bid, what are you seeing from commercial demand interest? You know, would the COPS relationship be a vector for LPV?

Steve Altemus: C-Ops is not necessarily a factor for LTV in that their primary focus is on the delivery transport leg of putting payloads out into what I call exotic orbits or more nontraditional orbits, and so we can accommodate them with rideshare. I do see the LTV as a really interesting commercial opportunity where, for about seven months of the year, NASA will operate that manned rover, both autonomously and with crew. And that, you know, whether they're collecting valuable scientific data or doing crewed operations on the surface, that is what their interests are.

Steve Altemus: And then just last one for me, just trying to get a better sense of in terms of modeling when we could expect a milestone, potential milestone payments for IAM 2. The wording and the press release and the queue is a little bit different. So in the queue, you say that the launch window was extended to early 2025. So just want to get some clarity. If you have any sense of whether you're expecting that.

Speaker Change: CEOPS is not necessarily a factor for LTV in that their primary focus is in a delivery transport leg of putting payloads out into what I call exotic

Speaker Change: orbits or more non-traditional orbits and so we can accommodate them with rideshare.

Speaker Change: I do see the LTV as a really interesting commercial opportunity where about seven months of the year NASA will operate that.

Steve Altemus: The IAM 2 launch to be in January 25. Is that correct? Oh, I see what you're referring to. What we have to manage to what I found out of the first mission is it's better to manage to our ship date when we go to the cake. That's when the landers essentially completed. That's what we can track to internally and within our control, barring any technical problems. We then have about a 35 day flow at the launch site through the payload processing facility in the launch pad.

Speaker Change: manned rover, both autonomously and with crew. And that, you know, whether they're collecting valuable science data or doing crewed operations on the surface is what their interests are.

Steve Altemus: And that, you know, whether they're collecting valuable science data or doing a crewed operation on the surface, is what their interests are. The other five months of the year, it's turned over completely commercially, and our design for that is a technique where we can actually collect science pallets and deploy science pallets or navigation stations or power stations to support commercial endeavors on the moon. And we've talked to several space agencies and commercial companies that have an interest. And so we think that while we're doing the development to actually do the designs and get ready for the demonstrations, we're cultivating the market for that LTV.

Steve Altemus: The other five months of the year, it's turned over completely to commercial use, and our design for that is a technique where we can actually collect science pallets and deploy science pallets or navigation stations or power stations to support commercial endeavors on the moon.

Speaker Change: The other five months of the year, it's turned over completely commercially.

Speaker Change: And our design for that is a technique where we can actually collect science pallets and deploy science pallets or navigation stations or power stations to support

Steve Altemus: Some of that work on scheduling the actual launch time is not within our control. As you recall, there were several highly important missions from our last attempt that pushed us around the launch manifest several months. And so to the greatest extent, I want to stress that the importance isn't the actual launch day. It's that this timeframe of the year, this season of launching to the South Pole is of the most importance.

Steve Altemus: And we've talked to several space agencies and commercial companies that have an interest, and so we think that while we're doing the development to actually do the designs and get ready for the demonstrations, we're cultivating the market for that LTV. And so by the time we deploy that in the 27, 28 timeframe, that market will come to bear so that we can monetize the LTV commercially. Thank you for your time. Thanks, Josh. And I have no further questions at this time. I would now like to turn the call back. CEO, Steve Altemus, for closing.

Speaker Change: commercial endeavors on the moon. And we've talked to several space agencies and commercial companies that have an interest.

Speaker Change: And so we think that while we're doing the development to actually do the designs and get ready for the demonstrations, we're cultivating the market for that LTV. And so by the time we deploy that in the

Josh Sullivan: And so, by the time we deploy that in the 27, 28 timeframe, that market will come to bear so that we can monetize the LTV commercially. Great. Thank you for the time. Thanks, Josh.

Steve Altemus: And we have that season will be December through the first quarter of January. And so as long as we get off in that region, I'm confident we won't have any major delays. And so we're tracking to the rollout date or ship date to the Cape. And then we'll see what happens in terms of that season of launch opportunities. One, we've already just Not disclosed, but actually de-conflicted is the potential for Europa mission as a planetary window.

Speaker Change: 27, 28 timeframe, that market will come to bear so that we can monetize the LTV commercially.

Operator: Thank you. And I shall know further questions at this time.

Speaker Change: Thank you for the time.

Steve Altemus: I would now like to turn the call back to Intuitive Machin CEO, Steve Altemus, Altemus for closing remarks. Well, thank you everyone for joining today's call. Like, I appreciate it. That you appreciate we have an excellent quarter and look forward to the key award discussions in the coming week. And we'll support that continued growth for our company. Thank you very much.

Josh Sullivan: Thanks Josh. Thank you.

Speaker Change: And I show no further questions at this time. I would now like to turn the call back to Intuitive Machine CEO Steve Altemus for closing remarks.

Steve Altemus: Well, thank you, everyone, for joining today's call. I appreciate that you appreciate we have had an excellent quarter and look forward to key award discussions in the coming week. And we'll support that continued growth for our company. Thank you very much. This concludes today's conference call. Thank you for participating. You may now disconnect.

Steve Altemus: Well, thank you everyone for joining today's call. I appreciate it that you appreciate we have an excellent quarter and look forward to key award discussions in the coming week, and we'll support that continued growth for our company. Thank you very much.

Steve Altemus: NASA's Europa mission will take absolute priority on the launch pad, and so we chose to move out of November and focus on the December, January, time frame for our launch attempts. That's really helpful, thanks to you, appreciate it, and thanks for taking my questions. Great, Griffin.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.

Speaker Change: This concludes today's conference call. Thank you for participating. You may now disconnect.

Speaker Change: [inaudible]

Andres Sheppard: Again, Andres Sheppard, your line is open.

Andres Sheppard: Hi, good morning, everyone. Thanks for taking our questions and congratulations on another great quarter. Steve, wanted to maybe, hey guys, I want to just follow up maybe on the last question there. So, can you maybe remind us, I know you touched on it briefly, what are kind of the important milestones for the IM-2 mission that are needed throughout this year, as you get closer to that Q-125 launch, and then maybe additionally, how should we now think about the timeline for the IM-3 mission?

Andres Sheppard: Thank you. Steve mentioned in his comments, we had just finalized contract mods with NASA that accounted for schedule movement on the IM-2 and IM-3 mission based on landing site selection for mission 2 and for payload delivery dates moving to the right on NASA, payload delivery dates moving to the right. So again, we tried to line those modifications up to the seasons on where we would be able to hit those specific landing sites for mission 2 and mission 3.

Andres Sheppard: So mission 2 pushed towards the end of the year and into the first quarter. What we did from a financial standpoint is we planned to book the final milestone payments as you know, about 10% of that mission 2 clips contract in the new year and not affect the financials of year and close for 2024. Knowing that there's a lot of variability in outside parties that can affect our date. So we took a conservative approach there and so for our forecast, we don't have that book this year.

Andres Sheppard: So I don't expect an impact even if we were to go in January to the financials for 2024. For 2025, again, we're looking at the season and in the modification that's a did-agreed. We're finalizing that today, but did agree in principle on the launch in landing moving into the October, November timeframe. Again, fourth quarter of 2025. Got it. Super helpful. I appreciate all that color. Maybe this is a quick follow up as it pertains to own.

Andres Sheppard: Williams. I'm wondering if you can maybe give us some color on kind of how that contract is progressing. And specifically, you know, what kind of margins should we expect for this year? Thank you. Well, I'll give you the first part of it, at least. And then Steve can talk about the margins we see. But the OAMS contract, as you know, was at the end of last year was embattled. It was the OSAAM project itself was up for cancellation review or continuation review.

Andres Sheppard: They call it what we got as a new contractor coming in. We got a fresh look at that OSAAM project. We were asked to go look at what it would take to ramp that down. But also we got the opportunity to say how you might save that project, how you might get it back on schedule and back on budget. We did that and we worked with NASA to put a plan together that actually puts it back on schedule for its launch and back in the budget box.

Andres Sheppard: That was briefed up the chain to NASA. And there was some language, authorization language or appropriations language that said they wanted a review again. But they reaffirmed their interest in flying the OSAAM mission with a line item in the appropriations bill that gave it the necessary funds into 2025 to continue on the path as we re-structured it for success. So that's a very positive sign and that gives us a sense of what the run out on OAMS would be for the balance of the year and gave us confidence in our revenue projections.

Andres Sheppard: We currently look at the margins there as probably high single digit margins on that type of service contract. Nothing else further, I think Steve covered the margin bit there at the end. We were running fairly high during the first half of the year. That may tail off just a tad as we get into the second half of the year but still consistent with our expectations overall for the year.

Andres Sheppard: Wonderful, super helpful and congratulations again. Thanks so much. I ll pass it on. Thanks, Audrey. Thank you and one moment for our next question.

Laura Li: Our next question will be coming from Laura Lee. Abdochi Bank, your line is open Laura. Hey, thank you for taking my question and congrats on the progress.

Steve Altemus: So my question is looking forward, do you have a line of set on any potential DOD work or how do you think about that worthifying beyond the NASA in the future? Laura, thank you for your question. That's a great question. We have submitted several proposals through our business development group into the DOD for work. We've recently signed a contract with an organization called Sea Ops to do rideshare payloads. We've increased, I mentioned in the script that we gained some rideshare business to take payloads out into exploration class orbits and not necessarily to the surface but out into some orbits of interest for the DOD.

Steve Altemus: So that's pretty exciting and then we have also a subcontract with another commercial entity to work on a project with the DOD. We started that one, took that to PDR and we're expecting a next phase of it. So we are gaining traction there in small bits and we expect that business to continue to grow. One added thing, Laura, we're also continuing to execute on the jets of low power contract that we started late last year, so that's still in full swing, another AFRL contract.

Steve Altemus: Yeah, correct, thanks Steve for reminding AFRL contract for the jets in nuclear satellite at low power, so we're moving ahead there. Okay, thank you for the color, yeah, that's where it helped. One moment for our next question.

Andrew Steinhardt: Our next question will be coming from Andrew Steinhardt of Canacorn Genuity, your line is open. Hi there, thanks for taking the question and congrats on a solid quarter, just a couple quick questions. First, you know, what has, have you guys been speaking with NASA about potentially moving the Viper over to the Nova D mission? People buy any color around that. Yeah, so we have been speaking in NASA again, I spoke about putting a coalition together led by intuitive machines of universities, international partners and other companies to put together the services we need in terms of the Nova D heavy cargo lander, the launch vehicle, and then the operations piece.

Andrew Steinhardt: We have expressed interest from several different countries, agencies, space agencies and several companies and several universities. So putting that together will respond in NASA's request for information in greater detail. We did write a letter and express our interest immediately upon notice of cancellation. We think that science is important for the lunar scientists and we think it's important to gather that in the, I imagine, probably the late 2027 timeframe is when we aim for that mission, but we'll have to see what all the constraints are and what the comments are back from NASA and what their expectations are.

Andrew Steinhardt: I think it's giving the commercial sector an opportunity to pick this rover up and deliver the science and try to do that or attempt to do that commercially is a good thing. That rover is nearly 90% complete, probably more than that, and we'd like to see it fly. So we'll have more information on that once we finalize the RFI and submit that to the government and get some feedback. We think that feedback will come in the September timeframe. God, that's excellent. I'll be keeping an eye out for that timeframe in September.

Steve Altemus: I'm just a quick follow-up. I guess, I'm sorry, if I missed it, if it was already covered, but what are the, what are your timing expectations on a contract receipt for time for, or near-space network services? Oh, yeah. We received information from NASA, official information, that the NS, NS contract awards would occur in the August for the data relay satellites, August timeframe, and September for the direct-to-earth to moon communications in the September timeframe. So we're waiting for those patiently. And then the CP-22, the next Clips Award, we expect this month in August. Thank you, Andrew.

Josh Sullivan: One moment for our next question, which will be coming from Josh Sullivan of the Benchmark Company. Your line is open. Thank you. Good morning. What a Josh.

Steve Altemus: You know, looking at an election year here, you know, as far as the timing of NSNS and some of the other contracts you're talking about, do you think the government typical September budget flush is going to help move these along or is this not related to that, do you think? Well, I think in particular, Josh, the NSNS contract, that proposal was submitted last year, and we're patiently awaiting for that award. There's been quite the deliberation.

Steve Altemus: Both contract line items. The Klin 1.2 and Klin 2.2. Both of those have been had selections already to a competitive range. We've made those those competitive range brackets and moved forward. We had to proceed into oral discussions. We've had oral discussions with the government on both Klin's contract line items, and then we were asked for final proposals for each one of those and those have been submitted. So we know the programs moving forward, the contracts moving forward in earnest, and like I said, the government's notified us that an award would be made in August and September respectively. So I don't believe that the potential of the election or a continued resolution will affect the awards.

Steve Altemus: And then maybe just one on the literature and program, you know, as far as the requirement to have, you know, a viable commercial model as well as a competitive bid. What are you seeing from commercial demand interest? You know, what would the COPS relationship be a vector for LPD? COPS is not necessarily a factor for LTV and that their primary focus is in a delivery transport leg of putting payloads out into what I call exotic orbits or more non-traditional orbits.

Steve Altemus: And so we can accommodate them with rideshare. I do see the LTV as a really interesting commercial opportunity where about seven months of the year NASA will operate that manned rover, both autonomously and with crew. And that, you know, whether they're collecting valuable science data or doing a crewed operations on the surface is what their interests are. The other five months of the year, it's turned over completely commercially and our design for that is a technique where we can actually collect science pallets and deploy science pallets or navigation stations or power stations to support commercial endeavors on the moon.

Steve Altemus: And we've talked to several space agencies and commercial companies that have an interest. And so we think that while we're doing the development to actually do the designs and get ready for the demonstrations, we're cultivating the market for that LTV. And so by the time we deploy that in the 27, 28 timeframe, that market will come to bear so that we can monetize the LTV commercially.

Josh Sullivan: Great. Thank you for the time. Thanks, Josh. Thank you.

Operator: And I shall know further questions at this time.

Steve Altemus: I would now like to turn the call back to Intuitive Machin CEO, Steve Altemus, Altemus for closing remarks. Well, thank you everyone for joining today's call. Like, I appreciate it. That you appreciate we have an excellent quarter and look forward to the key award discussions in the coming week. And we'll support that continued growth for our company. Thank you very much.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.