Q4 2024 Sidus Space Inc Earnings Call
Unknown Executive: Earnings Conference Call. Joining us today from the company is Carol Craig, Chairman and Chief Executive Officer, and myself, Adarsh Parak, Chief Financial Officer.
Joining us today from the company as Carol Craig Chairman and Chief Executive Officer.
Pereq: And myself, others, Pereq Chief Financial Officer.
Unknown Executive: During today's call, we may make certain forward-looking statements. These statements are based on current expectations and assumptions, and as a result, are subject to risks and uncertainties. Many factors could cause actual results to differ materially from the forward-looking statements made on this call. These factors include our ability to estimate operational expenses and liquidity needs, customer demand, supply chain delays, including launch providers, and extended sales cycles.
Pereq: During today's call we may make certain forward looking statements. These statements are based on current expectations and assumptions.
Pereq: And as a result are subject to risks and uncertainties.
Pereq: Many factors could cause actual results to differ materially from the forward looking statements made on this call.
Pereq: These factors include our ability to estimate operational expenses and liquidity deep.
Pereq: Customer demand supply chain delays, including launch providers.
Pereq: And extended sales cycles.
Unknown Executive: For more information about these risks and uncertainties, please refer to the risk factors in the company's filings with the Securities and Exchange Commission, each of which can be found on our website, www.sidusspace.com. listeners are cautioned not to put any undue reliance on forward looking statements. and the company specifically disclaims any obligation to update the forward looking statements that may be discussed during this call.
Pereq: For more information about these risks and uncertainties. Please refer to the risk factors in the company's filings with the Securities and Exchange Commission.
Pereq: Each of which can be found on our website www dot cited space Dot com.
Pereq: Listeners are cautioned not to put any undue reliance on forward looking statements.
And the company specifically disclaims any obligation to update the forward looking statements that may be discussed during this call.
Unknown Executive: At this time, I'd like to turn the call over to Carol. Carol, please go ahead. Thank you, Adarsh.
Carol: At this time I'd like to turn the call over to Carol Carol. Please go ahead.
Carol: Thank you Alex and welcome everyone on this last day of women's history month.
Carol Craig: And welcome, everyone, on this last day of Women's History Month. On today's call, I'll outline our key accomplishments during 2024, and others will present the financial highlights for the same period. I'll then discuss our 2025 outlook, after which we will address previously submitted Q&A. 2024 was a defining year for Sidus Space, a year in which we validated our technology, expanded our constellations, grew our customer base. and secured key strategic contracts and partnerships that position us for growth and long-term success.
Carol: On today's call I will outline our key accomplishments during 2024 and others will present, the financial highlights for the same period.
Carol: Then discuss our 2025 outlook after which we will address previously submitted Q&A.
Carol: 124, with a defining year for sinus face a year in which we validate our technology.
Carol: Expanded our constellation.
Carol: Grew our customer base and.
Carol: And secured key strategic contracts and partnerships that position us for growth and long term success.
Carol Craig: Just over three years ago, we became a public company through a traditional initial public offering or IPO. And in the past 12 months, We've evolved from a space manufacturing and services company into a full-fledged space technology and AI company. focused on delivering mission-critical AI-powered space data solutions with three LISI satellites designed and manufactured by Sidus, now in orbit. The last couple of years were focused on demonstrating that our decade-plus of heritage experience translates to success no matter what the mission or goal. Our first launch success with LISISAT-1 was quickly followed by the launch of two more operational satellites, and we're now ready to expand our reach into new markets and new customers.
Carol: Just over three years ago, we became a public company through traditional initial public offering or IPO and in the past 12 months, we've evolved from a space manufacturing and services company into a full fledged space technology, an AI company.
Carol: Focused on delivering mission critical AI powered space data solutions with three Looney sat satellite design and manufacture by scientists now in orbit.
Carol: The last couple of years, we're focused on demonstrating that our decade plus of heritage experience translate to success no matter, what the mission of our golf.
Carol: Our first launch success is Lizzie sat one was quickly followed by the launch of two more operational satellites and we're now ready to expand our reach into new markets and new customers.
Carol Craig: We continue to focus on four key principles. strong revenue, diversity and growth. scaling production capabilities.
Carol: We continue to focus on four key principles.
Carol: Strong revenue diversity and growth.
Carol: [noise] scaling production capabilities.
Carol: Pursuing breakthrough developments on advanced technologies that could create new markets.
Carol Craig: Transcription by CastingWords and leading our industry to reimagine SpaceX. As we move up the value chain from trusted supplier to a strategic platform provider, our year-over-year revenue declined as the result of a deliberate strategic shift in 2024 for prioritizing higher margin revenue streams, our satellite design, manufacturing, and launch, and building a more robust pipeline, efforts we believe will lead to a significant increase in our backlog. And so I'd like to share a few examples of our successes to demonstrate how we are already executing in these porky areas. We launched three satellites, LZSAT-1 in March of 2024, LZSAT-2 in December of 2024, and LZSAT-3 in March of 2025, demonstrating our ability to design, build, launch, and operate satellites on an aggressive cadence, setting us apart in the engine We took advantage of our cadence to apply lessons learned, new technologies, and other enhancements to improve the probability of success on LISISAT-3, which launched in March.
Carol: And leading our industry to re imagine the space axis.
Carol: As we move up the value chain from trusted supplier to a strategic platform provider our year over year revenue decline is the result of a deliberate strategic shift in 2024 board prioritizing higher margin revenue streams, our satellite design manufacturing and launch and building a more robust pipeline.
Carol: We believe will lead to a significant increase in our backlog.
Carol: And so I'd like to share a few examples of our successes to demonstrate how we are already executing in these four key areas.
Carol: We launched three satellites, let's use that one in March of 2020 for Lindsay.
Carol: Lizzy sat two in December of 2024.
Carol: And Lizzy sat three in March of 2025, demonstrating our ability to design build launch and operate satellites on an aggressive cadence studying us apart in the industry.
Carol: We took advantage of our cadence to apply lessons learned new technologies and other enhancements to improve the probability of success unless he sat three which launched in March.
Carol Craig: In less than two hours from deployment, we established communication and control of the space. It was our updates to software, efficiencies in sequencing, and enhanced technologies that we integrated into LizzieCat 3 that resulted in rapid operations and control. While IZEASAT-1 and IZEASAT-2 were not as quick to operations, both were instrumental in developing and learning best practices and are still functioning and providing value. LZSAT-1 continues to operate in great health with over a year on orbit and supports customers such as the NASA Stennis Space Center for Autonomous Satellite Technology, who awarded us a follow-on contract for additional support for their Resilient Application, or ASTRA, historic in-space payload mission.
Carol: Less than two hours from employment, we established communication and control of the space craft.
Carol: It was our updates to software.
Carol: [laughter] fishing season sequencing and enhanced technologies that we integrated until we've got three that resulted in rapid operations and control.
Carol: Well at least at one and two were not as quick to operations. Both were instrumental in developing and learning best practices and are still functioning and providing value.
Carol: Ladies that one continues to operate in great health with over a year on orbit and supports customers such as the naphtha Stennis space Center for autonomous satellite technology, who awarded US a follow on contract for additional support for their resilient application our Astra historically the space Taylor mission.
Carol Craig: LISISAT-2 was launched into a mid-inclination orbit, which differs from our typical polar inclination missions, and we're currently continuing to work through the commissioning phase. And as I mentioned, LizzySat-3, which is equipped with both Sidus and customer-hosted technology, is healthy and in the commissioning phase as well.
Carol: Lizzy sat two was launched into amid inclination orbit, which differs from our typical polar inclination missions and we are currently continuing to work through the commissioning phase.
Speaker Change: As I mentioned, Lizzie <unk>, three which is equipped with both scientists and customer hosted technology is healthy and in the commissioning phase as well.
Carol Craig: This past year, we received approval by the U.S. Federal Communications Commission, or the FCC, for operation of a micro-constellation of remote-sensing, multi-mission satellites in low-Earth orbit, and we look forward to further expanding our constellation in the upcoming months. We established a fully operational Mission Control Center with 24-7 capabilities to manage satellite operations, orchestrate collection management tasks, and satisfy data distribution requests for our own constellation and others. Our partnerships and relationships with companies like LeoLabs and NeuroSpace further strengthens our space traffic management and LEOP, or Launch and Early Operations Support Services, enhancing Sidus' constellation operation capability.
Speaker Change: This past year, we received approval by the U S. Federal Communications Commission or the SEC for operation of micro constellation of remote sensing multi mission satellites and lower harvest and we look forward to further expanding our constellation in the upcoming months.
Speaker Change: We established a fully operational mission control center with 24, seven capabilities to manage satellite operations Orchestrate collection management tasks and satisfy data distribution request for own constellation and others are.
Speaker Change: Our partnerships and relationships with companies like Leo Labs, and aerospace further strengthens our space traffic management and Lee off our launch in early operational support services enhancing side is this constellation operation capabilities.
Carol Craig: We were selected to exclusively design and build the first generation lunar fleet of data storage spacecraft for Lone Star Data Holdings, a provider of premium data storage and resiliency as a service, which reinforces the adaptability of the LZSAT platform for deep space missions. The lunar design is approximately 800 kilograms in size, and it's another example of how our proven LISISAT platform enables rapid mission configuration and scalability across a wide range of satellite sizes, efficiently addressing unique mission requirements. We introduce SILENT or LATE, our next generation AI-driven space data ecosystem, enabling real-time on-orbit data processing and dramatically reducing latency for mission-critical applications.
Speaker Change: We were selected to exclusively design and build the first generation lunar fleet of data storage space craft for Lone Star data holdings, a provider of premium data storage and resiliency as a service, which reinforces the adaptability of the Lizzie SAP platform for deep space missions.
Speaker Change: Lunar design is approximately 800 kilograms in size and it's another example of how our proven Lizzie sat platform enables rapid mission configuration and scalability across a wide range of satellite sizes efficiently addressing unique mission requirements.
Speaker Change: We introduced or late our next generation AI driven space data ecosystem, enabling real time on orbit data processing and dramatically reducing latency for mission critical applications.
Carol Craig: We demonstrated its on-orbit capability with an AI-enhanced thermal-sensing firefighting software solution showcasing the ability to process large sets of raw data in space and deliver only relevant information to end-users. This achievement established flight heritage for our Sidus Orlais AI ecosystem, edge computing, hardware, and software solution. And related to our AI solutions, we secured FCC approval for a space-to-space data relay, a key advancement that will allow LIZEASAT-3 and future satellites to provide direct-to-user data transfer, significantly improving timeliness and efficiency for our customers.
Speaker Change: We demonstrated it's on orbit capability with an AI enhanced thermal sensing firefighting software solution.
Speaker Change: Do you think the ability to process large sets of raw data and space and deliver only relevant information to end users.
Speaker Change: This achievement established slight heritage for our scientists for late AI ecosystem edge computing hardware and software solutions.
Speaker Change: And related to our AI solutions to be secured FCC approval for our space to space data relay a key advancements that will allow Lizzie sat three and future satellites to provide direct to use their data transfer significantly improving timeliness and efficiency for our customers.
Carol Craig: We continue to strengthen our global partnerships, signing agreements with several international firms that expand our global footprint while positioning us for sustained technology innovation and domestic growth. These include collaborations with Reflex Aerospace, a German satellite manufacturing startup focused on agile, high-performance satellite platforms. Warp Space, a Japanese space tech company specializing in next generation optical communication technology. and Nemesis, a Bahrain-based multidisciplinary technology and electronic security consultancy actively supporting space initiatives in Saudi Arabia. These partnerships not only extend our global reach, but also align with our commitment to advancing next-generation space technology through collaborative innovation. We expanded our defense and government business by securing new contracts with NASA, U.S.
Speaker Change: We continued to strengthen our global partnerships signing agreements with several international firms that expand our global footprint, while positioning us for sustained technology innovation and domestic growth.
Speaker Change: These include collaborations with reflects aerospace a German satellite manufacturing start up focused on agile high performance satellite platforms.
Speaker Change: Workspace, a Japanese based tech companies specializing in next generation optical communication technology.
Speaker Change: And the emphasis of our rain based multi disciplinary technology and electronic security consultancy actively supporting space initiatives in Saudi Arabia.
Speaker Change: These partnerships not only extend our global reach but also align with our commitment to advancing next generation space technology collaborative innovation.
Speaker Change: We expanded our defense and government business by securing new contracts with NASA U S Navy and prime contract you're supporting the department of defense.
Carol Craig: Navy, and prime contractors supporting the Department of Defense. And these wins further integrated us into the broader space defense and intelligence ecosystem. The contract spans support and services related to our LISISAT data, Orlais AI, and hardware manufacturing and engineering support. including our role on the $30 million Intuitive Machines-led Moon Racer team, or LTBS contract, which is part of the agency's Artemis campaign. This contract is already underway. This contract mix shows how our vertically integrated model with complementary lines of business enables us to unlock new potential revenue, generating opportunities, while maintaining diversity of revenue. We're not dependent on a single line of business or customer, which provides us the optionality to scale where the market needs demand.
Speaker Change: And these wins further integrated into the broader space defense and intelligence ecosystem.
Speaker Change: The contract spans support services related to our <unk> data or AI and hardware manufacturing and engineering support.
Speaker Change: Including our role on the $30 million intuitive machines led moon racer team, our Ltvs contract, which is part of the agency's Artemis campaign. This contract is already underway.
Speaker Change: This contract mix shows how our vertically integrated model with complementary lines of business enables us to unlock new potential revenue generating opportunities, while maintaining diversity of revenue.
Dependent on a single line of business or customer, which provides us the optionality to scale, where the market needs demand. This diversity mitigates risk associated with external factors like macroeconomic shifts our technological disruptions.
Carol Craig: This diversity mitigates risks associated with external factors like macroeconomic shifts or technological disruption. Our flexibility allows us to adapt swiftly to market changes supporting growth across all our business lines. In addition to new contracts, we continue to support our current customers and contracts, which includes completing the critical design review for LISISAT-NL, a laser communication satellite contracted by the Netherlands organization. We also produced and delivered thousands of unique parts to over 14 different customers across commercial, government, and defense sectors, reinforcing Sidus' role as a trusted provider of mission-critical hardware. Also, strengthening our ability to support multiple customers, offer thousands of products and scale effectively is our implementation of SAP in 2024.
Speaker Change: Our flexibility allows us to adapt quickly to market changes supporting growth across all our business lines.
Speaker Change: In addition to new contracts, we continue to support our current customers and contracts, which includes completing the critical design review for Lizzie L. A laser communication satellite contracted by the Netherlands organization.
Speaker Change: We also produced and delivered thousands of unique cards over 14 different customers across commercial government and defense sectors reinforcing situs his role as a trusted provider of mission critical hardware.
Speaker Change: Also strengthening our ability to support multiple customers.
Speaker Change: Thousands of products and scale effectively is our implementation of SAP in 2024.
Carol Craig: SAP is now live on the manufacturing side of the business with full integration across the organization expected in 2025. We've further expanded our product offering by developing and achieving Flight Heritage for the Sidus Low Voltage Differential Signaling Switchcard, which extends the capabilities of the payload processor, enabling communication with multiple optical sensors through high-speed LVDS data connection. This product and others are key to our pursuit of advanced technologies that not only enhance our satellite offering, but create new markets. This key principle has resulted in a strengthened intellectual property portfolio with the approval of new patents, which includes the publication of a patent application protecting enhanced functionality of the LISI modular satellite platform system.
Speaker Change: He is now alive on the manufacturing side of the business with full integration across the organization expected in 2025.
Speaker Change: We further expanded our product offering by developing achieving flight heritage for the scientists low voltage differential signaling switch card, which extends the capabilities of the payload processor, enabling communication with multiple optical sensors through high speed Lvs data connections.
Speaker Change: This product and others are key to our pursuit of advanced technology that not only enhance our satellite offering but create new markets.
Speaker Change: This key principle has resulted in a strengthened intellectual property portfolio with the approval of new patents includes the publication of a patent application protecting enhanced functionality of the Lizzie modular satellite platform system and we currently have 14 issued patents with 13 pending.
Carol Craig: And we currently have 14 issued patents with 13 patents.
Carol Craig: As we looked at the plan for 2025 and focused on growth, we expanded our physical presence with the opening of a West Coast office in El Segundo, California. So we are now located in close proximity to both Eastern and Western launch sites. Additionally, we bolstered our capital position, raising $37 million in funding to support our next phase of growth, and we ended 2024 with a cash balance of $15.7 million, following a successful equity raise in December.
Speaker Change: As we looked at the plan for 2025 and are focused on growth, we expanded our physical presence with the opening of our West Coast office in El Segundo, California. So we are now located in close proximity to both eastern and Western launch sites.
Speaker Change: Additionally, we bolstered our capital position raising $37 million in funding to support our next phase of growth and we ended 2024 with a cash balance of $15 7 million. Following a successful equity raise in December.
Carol Craig: So the new administration has made it clear that it intends to maximize the impact of federal spending by shifting from large government owned costless development programs to commercial service models. These models emphasize private sector innovation and require providers to operate efficiently within fixed price environments. And this is precisely the type of ecosystem in which we excel. Our lean, agile mindset has been core to our DNA from day one. This shift presents a meaningful opportunity for us to further diversify within the space and defense sector. Diversification has always been our North Star, and we continue to execute on that vision by layering in complementary capabilities and advancing multiple milestones in parallel.
Speaker Change: The New administration has made it clear that it intends to maximize the impact of federal spending by shifting from large government owned cost plus development programs to commercial service models.
Speaker Change: These models emphasize private sector innovation and require providers to operate efficiently within fixed price environments and this is precisely the type of ecosystem in which we excel are lean agile mindset has been core to our DNA from day one.
Speaker Change: This shift presents a meaningful opportunity for us to further diversify within the space and defense sectors diversification has always been our north star and we continue to execute on that vision by layering in complementary capabilities and advancing multiple milestones in parallel.
Carol Craig: But it's important to note that a lean mindset does not imply a narrow, vertically focused business. Instead, it enables us to adapt quickly, reduce overhead, and make faster decisions. Autonomy and Artificial Intelligence play a critical role in our strategy. especially given the complexity and remoteness of space operations. Space is inherently challenging and unpredictable, and each mission carries risk and the possibility of subsystem faults. But it's also a realm of untapped opportunity, where innovation can transform initial concepts into entirely new capabilities. A great example is LISISAT-1, which has evolved into an AI testing platform for both internal initiatives and external programs across commercial and government sectors.
Speaker Change: But it's important to note that our lean mindset does not employ narrow vertically focused business instead it enables us to adapt quickly.
Speaker Change: Reduce overhead and make faster decisions.
Speaker Change: Autonomy and artificial intelligence play a critical role in our strategy, especially given the complexity and remoteness of space operations.
Speaker Change: This is inherently challenging and unpredictable and each mission carries risk and the possibility of a subsystem fault, but it's also around the untapped opportunity where innovation can transform initial concepts into entirely new capabilities.
Speaker Change: A great example is Lizzie sat one which has evolved into an AI testing platform for both internal initiatives and external programs across commercial and government sectors.
Carol Craig: Our LISISAT Constellation is an internal program, meaning that the intellectual property, along with all data generated by the satellite and Sidus funded sensors, remains proprietary to Sidus. Related to that, we recently received approval for a key patent covering our modular satellite with a configurable design, leveraging our 3D composite printing and incorporating an advanced thermal control system, multi-layer insulation, and thermally responsive paint. Unique and disruptive, it's this innovation that forms the technical foundation of our versatile multi-mission LISISAT platform. And as I've said before, we are smartly vertically integrated, which has reduced overhead, improved decision velocity, and accelerated our development cycle.
Speaker Change: Our lives he sat constellations in internal program, meaning that the intellectual property along with all data generated by the satellite in situs funded sensors remains proprietary to situs.
Speaker Change: Related to that we recently received approval for a key patent covering our modular satellite with a configurable design leveraging our three D composite printing and incorporating an advanced thermal control system multi layer installation and thermally responsive paints unique and disruptive. It's this innovation that formed the tech.
Speaker Change: Nickel foundation of our versatile multi mission Lizzie SAP platform.
Speaker Change: And as I've said before we're smartly vertically integrate it which has reduced overhead improved decision velocity and accelerated our development cycles.
Carol Craig: This integration empowers us to innovate faster, work more flexibly with suppliers, and iterate rapidly. Embracing the test-fail-learn approach.
Speaker Change: This integration empowers us to innovate faster work more flexibly with suppliers and iterate rapidly.
Speaker Change: Embracing the test fail learn approach.
Carol Craig: While we're rooted in a strong legacy of reliability, we remain relentlessly forward looking, operating at the edge of new space innovation.
Speaker Change: While were rooted in our strong legacy of a liability we remain relentlessly forward looking operating at the edge of new space innovation.
Adarsh Parak: And I'll now turn it over, Adish, for discussion of our finance. Thank you, Carol. I'm excited to share our fourth quarter and full year 2024 financial results, which reflect our continued progress in executing our long term strategy. Over the past year we've made significant investments in our AI driven space data services, expanded our satellite constellation, and improved operational efficiencies, all of which is essential to our transition from a primarily manufacturing driven revenue model to a much more scalable high margin data and technology services business. As we have continuously reinforced, we often see lumpy contract awards from quarter to quarter and year to year because of our portfolio of capabilities.
Speaker Change: And I'll now turn it over for a discussion of our financials.
Speaker Change: Thank you Carol I'm excited to share our fourth quarter and full year of 2024 financial results, which reflect our continued progress in executing our long term strategy.
Speaker Change: Over the past year, we've made significant investments in our AI driven space data services.
Speaker Change: Expanded our satellite constellation.
Speaker Change: And improved operational efficiencies.
Speaker Change: All of which is essential to our transition from a primarily manufacturing driven revenue model to a much more scalable high margin data and technology services business.
Speaker Change: As we have continuously reinforced we often see lumpy contract awards from quarter to quarter and year to year because of our portfolio of capabilities. However.
Adarsh Parak: However, as we transition to data and technology services, we expect to see smoother and more stable revenue trends as well. While we've maintained a strong foundation manufacturing and subcontracting work, the successful deployment of our LZSAT constellation positions us for future revenue growth in AI-powered space intelligence and real-time data delivery. Today, I'll walk through our financial performance, key drivers behind our results, and how we're strengthening our position for the next phase of growth. So now on to our 2024 financial results.
Speaker Change: However, as we transition to data and technology services, we expect to see smoother and more stable revenue trends as well.
Well, you've maintained a strong foundation manufacturing and subcontracting work the successful deployment of our Lizzie sat constellation position positions us for future revenue growth and AI powered space intelligence and real time data delivery.
Speaker Change: Today, I'll walk through our financial performance key drivers behind our results and how we are strengthening our position for the next phase of growth.
Speaker Change: So now onto our 2024 financial results.
Adarsh Parak: Total revenue for the 12 months ending December 31st, 2024, was approximately $4.7 million, a decrease of $1.3 million, or 22%, compared to total revenue for the 12 months ended December 31st, 2023. This decline reflects Sidus' intentional strategic shift up the value chain. from a trusted component supplier to a provider of higher margin mission critical solutions, including data services, advanced technologies, and satellite manufacturing for both internal use and external customers. This shift included strengthening our pipeline of opportunities with an estimated $200 million in identified opportunities, including approximately $78 million in proposals submitted throughout 2024. Cost of revenue increased 42% for the 12 months ended December 31, 2024, to approximately $6.1 million, as compared to approximately $4.3 million for the 12 months ended December 31, 2023.
Speaker Change: Total revenue for the 12 months ending December 31, 2024 was approximately $4 $7 million, a decrease of $1.3 million or 22% compared to total revenue for the 12 months ended December 31 2023.
Speaker Change: This decline reflects cytosis intentional strategic shift up the value chain.
Speaker Change: From a trusted component supplier to a provider of higher margin mission critical solutions, including data services advanced technologies and satellite manufacturing for both internal use and external customers.
Speaker Change: This shift included strengthening our pipeline of opportunities with an estimated $200 million in identified opportunities, including approximately $78 million in proposals submitted throughout 2024.
Speaker Change: Cost of revenue increased 42% for the 12 months ended December 31, 2024 to approximately $6 $1 million as compared to approximately $4 $3 million for the 12 months ended December 31 2023.
Adarsh Parak: The increase was primarily driven by higher depreciation costs associated with our first satellite asset deployed in March 2024. Our mix of varying contracts with higher material and labor expenses shifts in milestone payments for our higher margin satellite related business and continue to increase supply chain related costs. Although depreciation will continue to impact cost of revenue, it should be significantly offset as we grow our higher margin satellite and data related revenue.
Speaker Change: The increase was primarily driven by higher depreciation costs associated with our first satellite asset deployed in March 'twenty 'twenty four.
Speaker Change: Our mix of varying contracts with higher material and labor expenses.
Speaker Change: Shifting in milestone payments for our higher margin satellite related business.
Speaker Change: And continue to increase supply chain related costs.
Speaker Change: Although depreciation will continue to impact cost of revenue.
Speaker Change: <unk> is significantly offset as we grow our higher margin satellite and data related revenue.
Adarsh Parak: Our gross profit for the 12 months ended December 31st, 2024 decreased 31% to a loss of approximately $1.5 million. compared to a gross profit of approximately $1.6 million for the 12 months ended December 31st, 2023. Gross profit margin was negative 31% for the full year 2024, as compared to 28% for the full year of 2023. The change was mainly driven by higher depreciation costs associated with our first satellite asset deployed in March 2024, our mix of varying contracts with higher material and labor expenses, and shifts in milestone payments for our higher margin satellite related business.
Speaker Change: Our gross profit for the 12 months ended December 31, 2024 decreased 31% to a loss of approximately $1.5 million.
Speaker Change: Compared to a gross profit of approximately $1.6 million for the 12 months ended December 31 2023.
Speaker Change: Gross profit margin was negative 31% for the full year 2024, as compared to 28% for the full year of 2023.
The change was mainly driven by higher depreciation costs associated with our first satellite asset deployed in March 2024, or.
Speaker Change: Our mix of varying contracts with higher material and labor expenses in.
And shifts in milestone payments for our higher margin satellite related business.
Adarsh Parak: Selling general and administrative expenses for the 12 months ended December 31st, 2024 totaled approximately $14.2 million, approximately in line with the same period in the prior year. Increases to consulting services for business development, mission control expenses, fundraising expenses, and board-related compensation were offset by reductions in D&O insurance expense, professional fees, R&D costs, and investor and public relations expenses as a result of bringing more of these functions in-house. To provide investors with additional information in connection with our results as determined in accordance with GAAP, we also include in our 2024 Form 10-K non-GAAP measures to determine our adjusted EBITDA.
Speaker Change: Selling general and administrative expenses for the 12 months ended December 31, 2024 totaled approximately $14 $2 million.
Speaker Change: Approximately in line with the same period in the prior year.
Speaker Change: Increases to consulting services for business development mission.
Speaker Change: Mission control expenses fundraising expenses and board related compensation were offset by reductions in D&O insurance expense professional fees R&D costs, and investor and public relations expenses as a result of bringing more of these functions in house.
Speaker Change: To provide investors with additional information in connection with our results as determined in accordance with GAAP.
Speaker Change: We also include in our 2024 Form 10-K.
Speaker Change: non-GAAP measures to determine our adjusted EBITDA.
Adarsh Parak: We use adjusted EBITDA to evaluate our operating performance and make strategic decisions about the company's future direction. Adjusted EBITDA loss, a non-gap measure for the 12 months ended December 31st, 2024, totaled $12.9 million, as compared to an adjusted EBITDA loss of $10.9 million for the same period the prior year, which represents a 19% reduction in our adjusted EBITDA. Total non-GAAP adjustments for interest expense, depreciation and amortization, acquisition deal costs, severance costs, capital markets and advisory fees, equity-based compensation and warrant costs are provided in the reconciliation table listed in our fourth quarter and full year 2024 earnings press release released earlier today.
Speaker Change: We use adjusted EBITDA to evaluate our operating performance and make strategic decisions about the company's future direction.
Speaker Change: Adjusted EBITDA loss, a non-GAAP measure for the 12 months ended December 31 2024.
Speaker Change: Totaled $12 $9 million.
Speaker Change: That's compared to an adjusted EBITDA loss of $10 $9 million for the same period the prior year.
Speaker Change: Which represents a 19% reduction in our adjusted EBITDA.
Speaker Change: Total non-GAAP adjustments for interest expense depreciation and amortization.
Speaker Change: The acquisition deal costs.
Speaker Change: Severance costs capital markets and advisory fees equity.
Speaker Change: Equity based compensation and warrant costs are provided in the reconciliation table listed in our fourth quarter and full year of 2024 earnings press release released earlier today.
Adarsh Parak: Net loss for the 12 months ended December 31st, 2024 was $17.5 million compared to a net loss of $14.3 million in the period of 2023. Turning to the balance sheet, as of December 31st, 2024, the company had $15.7 million of cash as compared to $1.2 million on December 31st, 2023. which represents an increase of $14.5 million. The increased cash balance puts Sidus in an excellent position to transition towards its core higher margin businesses of space manufacturing and space technology. As we continue to manage our cash conservatively, we will prioritize the strategic use of our cash resources to pay down debt and fund our upcoming satellite builds, which are crucial for driving revenue and overall growth and profitability.
Speaker Change: Net loss for the 12 months ended December 31, 2024 was $17 $5 million.
Speaker Change: Compared to a net loss of $14 $3 million in the period of 2023.
Speaker Change: Turning to the balance sheet as of December 31, 2024, the company had $15 $7 million of cash as compared to $1.2 million on December 31 2023.
Which represents an increase of $14 $5 million.
Speaker Change: The increased cash balance puts site is in an excellent position to transition towards its core <unk>.
Speaker Change: Higher margin businesses of space manufacturing and space technology.
Speaker Change: As we continue to manage our cash conservatively, we will prioritize the strategic use of our cash resources to pay down debt and fund our upcoming satellite builds which are crucial for driving revenue and overall growth and profitability.
Adarsh Parak: We will also continue to identify additional opportunities to reduce expenses and increase efficiencies within our business.
Speaker Change: We will also continue to identify additional opportunities to reduce expenses and.
Speaker Change: And increase efficiencies within our business.
Carol Craig: With that, I'll hand the call back to Carol. Thanks, Abish. As our multi-mission constellation grows, our technology portfolio expands, and our satellite design and manufacturing capability extends outward to government and commercial customers, 2025 is about execution. delivering measurable value through mission-driven innovation and operational excellence while maximizing the value of our assets. We're focused on sustained growth. profitability.
Carol: With that I'll hand, the call back to Carol.
Carol: Thanks, Josh.
Carol: As our multi machine constellation grows.
Carol: Our technology portfolio expands and our satellite design and manufacturing capability extends outward to government and commercial customers 2025, it's about execution.
Carol: Delivering measurable value through mission, driven innovation and operational excellence, while maximizing the value of our assets.
Carol: We're focused on sustained growth.
Carol: Profitability.
Carol Craig: and Realistic Discipline Projection. Our broad and diverse product line is built for cost efficiency and global reach, supported by robust ITAR compliant processes and procedures. We have the heritage, we have the technology, we have the track record. Now the focus is on achieving evident positivity and generating free cash. As others mentioned, as we shifted to an increased focus on broader higher margin services, we continue to strengthen our pipeline of opportunities with an estimated 200 million in identified opportunities, including approximately 78 million in proposals submitted throughout 2024. This growth is a direct result of successful launches.
Carol: And realistic disciplined projections.
Carol: Our broad and diverse product line is built for cost efficiency and global reach supported by robust ISR compliant processes and procedures.
Carol: We have the heritage we have the technology.
Carol: We have the track record now the focus is on achieving EBITDA positivity and generating free cash flow.
Carol: As Alex mentioned as we shifted to an increased focus on broader higher margin services. We continue to strengthen our pipeline of opportunities with an estimated $200 million and identified opportunities, including approximately $78 million in proposal submitted throughout 2024.
Speaker Change: This growth is a direct result of successful launches.
Carol Craig: manufacturing capabilities and AI development, as well as a focused effort to pursue larger and more strategic opportunities. We're submitting bids on a consistent cadence. And while there is no certainty in the outcome, we believe that converting even a portion of these opportunities will result in a significant increase in backlog. Our goal is diversification to spread our exposure across different markets, products, or customer segments.
Speaker Change: Manufacturing capabilities, and AI development as well as a focused effort to pursue larger and more strategic opportunities.
Speaker Change: We're submitting bids on a consistent cadence.
Speaker Change: And while there is no certainty on the outcome, we believe that converting even a portion of these opportunities will result in a significant increase in backlog.
Speaker Change: Our goal is diversification to spread our exposure across different markets products or customer segments.
Carol Craig: The constantly evolving space ecosystem is susceptible to economic shifts, supply chain disruptions, or changing consumer trends, and diversification can help offset the impact, reducing overall business For more information visit www.FEMA.gov Unlike companies focused on a single technology, we've deliberately built a platform that can evolve with the industry. Our architecture is designed to mitigate technological obsolescence, enabling rapid integration of new technologies and supporting a true multi-mission environment, both at the satellite and constellation level. Ultimately, our aim is to demonstrate a cost-efficient, steady operational cadence. As we transition from non-recurring engineering to production, supported by Flight Heritage, we believe that our revenue streams, both from satellite hardware and data in the service, will become increasingly predictable and stable.
The constantly evolving space ecosystem is susceptible to economic shifts supply chain disruptions or changing consumer trends and diversification can help offset the impact reducing overall business risk.
Unlike companies focused on a single technology, we've deliberately built a platform that can evolve with the industry. Our architecture designed to mitigate technological obsolescence, enabling rapid integration of new technologies and supporting a true multi mission environment, both at the satellite and constellation level.
Speaker Change: Ultimately our aim is to demonstrate a cost efficient steady operational cadence as we transition from nonrecurring engineering to production supported by flight Heritage. We believe that our revenue streams, both from satellite hardware and David and the service will become increasingly predictable stable.
Carol Craig: In 2025, we're on track to achieve key satellite and AI milestones, including expanding the capabilities of our AI-driven micro-constellation with LISISAT-3, integrating Cytosolase to deliver on-orbit AI analytics for real-time space situational awareness, maritime monitoring, and disaster response. utilizing space to space data relay module to enable direct to user data transfers and reducing latency for time sensitive application. Completing the design for Lone Star Data Holdings' first lunar satellite mission, expanding our expertise beyond low-Earth orbit into cislunar operations. and continuing to support the NASA Stennis Astro Mission through the entire life of the LucySat-1 satellite. We're also focused on product and partnership expansion, including reinforcing our three core pillars, technology, AI, and space by expanding our AI-driven solutions and mission critical space services.
Speaker Change: In 2025 are on track to achieve key satellite and AI and milestones including <unk>.
Speaker Change: Expanding the capabilities of our AI, driven micro constellation with Lizzie factory integrating cytosorb late to deliver on orbit AI analytics for real time space situational awareness maritime monitoring and disaster response.
Speaker Change: Utilizing space to space data relay module to enable direct to use your data transfers and reducing latency for time sensitive applications.
Speaker Change: Completing the design for Lone Star data Holdings first lunar satellite mission, expanding our expertise beyond low earth orbit and assist lunar operations.
Speaker Change: And continuing to support the NASA Stennis Astro mission through the entire life is always used that one satellite.
Speaker Change: We're also focused on product and partnership expansion, including reinforcing our three core pillars technology, AI and space by expanding our AI driven solutions and mission critical space services.
Carol Craig: bringing VPX SOSA Aligned Space Hardware into full production and entering the market supporting scalable satellite and data solution. Advancing our Alem Flatsat, which is a lab-based integration and testbed platform for next-generation technology demonstrations. Spanning In-Orbit Demonstrations and AI Algorithms Enhancing Our Ability to Provide Near-Real-Time Autonomous Intelligence, Surveillance, and Reconnaissance, Tasking, and Execution Expanding our satellite platforms to include 200 kg, 400 kg and 800 kg bus sizes in support of LEO, GEO and Lunar missions with the next LEO launches planned for 2026 and 2027.
Speaker Change: Bringing <unk> online space hardware into full production at entering the market supporting scalable satellite and data solutions.
Speaker Change: Advancing our 11th flaps that which is a lab based integration and test bed platform for next generation technology demonstrations.
Speaker Change: Expanding in orbit demonstrations and AI algorithm AI algorithms enhancing our ability to provide near real time autonomous intelligence surveillance and reconnaissance tasking and execution.
Speaker Change: Expanding our satellite platforms.
Speaker Change: To include 200 kilograms, 400, kilogram and 800 kilogram bus sizes and supportive Leo Jill and lunar missions with a next Leo launches planned for 2026 and 2027.
Carol Craig: With three LISISAT satellites now in orbit and a robust pipeline of technology and data contracts, we're at a critical inflection point in our business. For years, our revenue was driven by manufacturing and subcontracting work. And while that remains a part of our foundation, our core strategy is now focused on scaling complementary business lines, including our AI-driven space data service. Sidus is no longer just a satellite company. We're a space technology and AI company that is transforming how data is collected, processed, and delivered in space. This evolution fundamentally changes our business model. We're leveraging our design and manufacturing efficiencies to build custom technology solutions for LEO, cislunar, and deep space missions, ensuring that we remain at the forefront of next generation space infrastructure.
With three Lizzie satellites now in orbit and a robust pipeline of technology and data contracts. We're at a critical inflection point in our business for years, our revenue was driven by manufacturing and some contracting work and while that remains a part of our foundation. Our core strategy is now focused on scaling and complementary business lines, including our AI driven space David.
Speaker Change: Services.
Speaker Change: So this is no longer just a satellite company, whereas space technology and AI company that is transforming how data is collected processed and delivered in space. This evolution fundamentally changes our business model.
Speaker Change: We're leveraging our design and manufacturing efficiencies to build custom technology solutions for Leo Cislunar in deep space missions, ensuring that we remain at the forefront of next generation space infrastructure.
Carol Craig: We're expanding our manufacturing beyond one-time hardware manufacturing contracts to building constellations for others. and we're creating AI-driven insights on orbit, reducing the cost and time associated with transmitting large amounts of raw satellite data to Earth and growing our high-margin recurring data and service model. Our competitive advantage lies in our vertically-integrated approach. We don't just manufacture satellites. We design, build, and operate them while leveraging cutting-edge AI to process data in orbit. This gives us control over the entire data lifecycle, allowing us to provide faster, more secure, and more cost-effective insights than traditional space service providers. Our AI-driven technology, operational efficiency, and growing multi-mission constellation continue to set us apart in the industry, positioning us for long-term success and leadership in the evolving space and defense landscape.
Speaker Change: We're expanding our manufacturing beyond one time hardware manufacturing contracts to building constellations for others.
Speaker Change: And we're creating AI driven insights on orbit, reducing the cost and time associated with transmitting large amounts of raw satellite data to earth and growing our high margin recurring data as a service model.
Speaker Change: Our competitive advantage lies in our vertically integrated approach, we don't just manufacture satellites, we design build and operate them, while leveraging cutting edge AI to process data in orbit. This gives us control over the entire data lifecycle, allowing us to provide faster more secure and more cost effective insights.
Speaker Change: In traditional space service providers.
Speaker Change: Our AI driven technology operational efficiency and growing multi mission constellation continue to set us apart in the industry positioning us for long term success and leadership in the evolving space and defense landscape.
Carol Craig: We've spent the last several years building the capabilities, partnerships, and infrastructure necessary to lead an AI power and space intelligence. Now, as we transition into a full scale space technology company, we're focused on scaling our data services, expanding our market presence. and driving long-term sustainable growth in 2025 and beyond.
Speaker Change: We've spent the last several years building the capabilities partnerships and infrastructure necessary to lead in AI powered space intelligence now as we transition into a full scale space technology company, we're focused on scaling our data services expanding our market presence.
Speaker Change: And driving long term sustainable growth in 2025 and beyond.
Carol Craig: What we achieved in 2024 is just the start. In 2025, we're not only continuing to execute, but we are accelerating. as our conflict expands. AI capabilities advance, partnerships grow and our presence in the satellite manufacturing market deepens, Sidus is redefining what's possible in space. We're excited for what's ahead, and we're just getting started.
Speaker Change: What we achieved in 2024 is just a start in.
Speaker Change: In 2025 are not only continuing to execute but we are accelerating.
Speaker Change: As our constellation of fans.
Speaker Change: AI capabilities advance partnerships grow and our presence in the satellite manufacturing market deepens sinus is redefining what is possible in space.
Speaker Change: We're excited for what's ahead and we're just getting started.
Unknown Executive: And we'll now move on to the Q&A portion of the call. We received a couple of submitted questions from our investors that we would like to address. The first one. Despite Sidus's operational milestones and strategic advancements, the stock price has not reflected this progress. What factors do you believe are contributing to this disconnect? And how do you plan to address?
Speaker Change: And we'll now move on to the Q&A portion of the call. We received a couple of submitted questions from our investors that we would like to address.
Speaker Change: The first one is.
Speaker Change: Despite the operational milestones and strategic advancements stock price has not reflected this progress what factors do you believe are contributing to this disconnect and how do you plan to address it.
Carol Craig: So I completely understand the frustration some investors may feel when looking at our stock performance relative to the significant milestones we've achieved. Over the past year, we've successfully lost three satellites, expanded our AI-driven data services, secured key government and commercial contracts, and strengthened our global partnerships. By all operational metrics, Sidus Space is executing on its strategy and building a strong foundation for the future. However, stock performance is influenced by a variety of external factors beyond our operational success. Broader market conditions, sector-specific trends, and macroeconomic forces all play a role. The space sector in particular has seen volatility over the past year impacting valuations across the entire industry.
Speaker Change: So I completely understand the frustration some investors may feel when looking at our stock performance relative to the significant milestones are achieved.
Speaker Change: Over the past year, we successfully launched three satellites expanded our AI driven data services secured key government and commercial contracts and strengthen our global partnerships by all operational metrics basically executing on its strategy and building a strong foundation for the future.
Speaker Change: However stock performance is influenced by a variety of external factors beyond our operational success broader market conditions sector specific trends and macroeconomic forces all play a role.
Speaker Change: The space sector in particular has seen volatility over the past year impacting valuations across the entire industry.
Carol Craig: That being said, our focus remains on executing our long-term strategy, scaling our AI-driven space data business, and demonstrating our value through continued execution. We're confident that as we further expand our data as a service model, strengthen recurring revenue streams, and continue our disciplined financial management, the market will ultimately recognize the full potential of Sidus Space.
Speaker Change: That being said our focus remains on executing our long term strategy scaling our AI driven space data business and demonstrating our value through continued execution.
Speaker Change: And then as we further expand our data as a service model strengthen our recurring revenue streams and continue our disciplined financial management the market will ultimately recognize the full potential of cyberspace.
Carol Craig: We remain committed to creating value for our shareholders and will continue to engage with the investment community to ensure our progress and future opportunities are well under way.
Speaker Change: We remain committed to creating value for our shareholders and we'll continue to engage with the investment community to ensure our progress and future opportunities are well understood.
Carol Craig: The next question is, Can you provide insight into Sidus's approach to capital strategy moving forward? Specifically, what level of dilution should investors anticipate as the company continues to scale its operations? Sidus Space is still in the early stages of scaling our business, and like many innovative technology companies, we require upfront investment to develop and prove out our capabilities. As a small but rapidly evolving space technology and AI company, our investment profile is asymmetrical, meaning that while the initial phase requires significant capital to build and launch our infrastructure, once in place, those assets become powerful revenue-generating tools with significantly lower ongoing capital needs.
Speaker Change: The next question is can you provide insight into the siding and approach to capital strategy moving forward, specifically what level of dilution should investors anticipate as the company continues to scale its operations.
Speaker Change: I'm sorry to say so it's still in the early stages of scaling our business. Unlike many innovative technology companies will require upfront investments and develop and prove out our capabilities as a small but rapidly evolving space technology and AI company, our investment profile asymmetrical, meaning that while the initial phase requires significant capital to build and launch our.
Speaker Change: Once in place those assets become powerful revenue generating tools with significantly lower ongoing capital needs.
Carol Craig: Over the past year we've made strategic investments in our satellite constellation, AI driven data services, and key partnerships to position CIDR as a leader in space-based intelligence. And these investments are designed to create long-term value. We're already seeing momentum as we shift from a purely hardware manufacturing-driven model to a higher-margin constellation and data-as-a-service business. And in terms of dilution, we recognize that managing our capital structure responsibly is really critical. While raising capital is sometimes necessary to support key growth initiatives, we remain focused on executing in a way that maximizes shareholder value. As we expand our revenue streams and scale our recurring data service, we anticipate needing significantly less external capital over time, as we'll be leveraging the infrastructure we've already built to generate revenue.
Speaker Change: Over the past year, we've made strategic investments in our satellite constellation.
Speaker Change: Driven data services and key partnerships to physician cider as a leader in a space based intelligence.
Speaker Change: And these investments are designed to create long term value, we're already seeing momentum as we shift from a purely hardware manufacturing driven model to a higher margin constellation and data as a service business and in terms of dilution, we recognize that managing our capital structure and responsibly as really critical while raising capital are sometimes necessary to support.
Speaker Change: Key growth initiatives, we remain focused on executing in a way that maximizes shareholder value.
Speaker Change: As we expand our revenue streams and scale our recurring data service, we anticipate needing significantly less external capital over time as we'll be leveraging the infrastructure that we've already built to generate revenue.
Carol Craig: Our goal is to reach a point where the business is increasingly self-sustaining and we continue to evaluate all available options to balance growth with prudent financial management.
Speaker Change: Our goal is to reach a point, where the business is increasingly self sustaining and we continue to evaluate all available options to balance growth with prudent financial management.
Carol Craig: I want to personally thank our team, our partners and our investors for your continued support and confidence. We appreciate everyone taking the time to listen today. We are excited about 2025 and we are looking forward to the next year of growth for both Sidus and the space industry. Thank you so much.
Speaker Change: I want to personally thank our team our partners and our investors for your continued support and confidence. We appreciate everyone taking the time to listen today. We are excited about 2025, and we're looking forward to the next year of growth for both situs and the state's industry. Thank you so much.
Unknown Executive: This concludes today's conference. You may disconnect your lines.
Speaker Change: This concludes today's conference you may disconnect your lines at this time.
Speaker Change: Okay.
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Unknown Executive: Seattle, Georgia, April 7, 1984 effective August 19, 2012 rescind the 10 year prison for what was an attempt to John Cruz Producer & Copyright born 2008
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