Core Highlights: - Net loss was $15.3 million for the six months ended June 30, 2024, a 61.3% decrease from the prior year period. - Gross margin was 100.0% due to having no cost of revenue, an increase of 28.7% over the previous period. - Revenue was $1.7 million, relatively flat compared to the prior year period at $1.7 million as well.
Revenue Breakdown: The Company generates revenue from: - Transportation services (launching customer satellites): $0 for the six months - Hosted payload services: $0 for the six months - Forfeited customer deposits: $35,000 - Engineering project services for the U.S. government (Space Development Agency agreement): $1.7 million Revenue was substantially all from the government contract services this period.
Management Outlook: Management highlighted: - Launched 4 total missions deploying 17 customer satellites to date - 3 missions involved operating the Vigoride orbital transfer vehicle, accumulating flight heritage - Produced next-generation Vigoride 7 vehicle for future missions or as satellite bus - Offering new M-1000 satellite bus product designed to improve capabilities while lowering costs - Completed modifying bus technology under SBIR contract with Space Development Agency Management is focused on continued Vigoride and satellite bus technology development while working to commercialize the products and services.
Operating Data: Other operating data: - Research and development expense down to $5.5 million from $20.3 million - Selling, general and administrative expense down to $11.5 million from $20.3 million - Net cash used in operating activities of $6.4 million - Cash and cash equivalents of $0.9 million as of June 30, 2024 The low cash balance raises substantial doubt about ability to continue as a going concern for the next year without raising additional capital per the financial statements.
Operational Risks: Key risk factors include: - Ability to raise capital to finance operations and business plan - Obtaining licenses/approvals for missions - Readiness of spacecraft to operate as intended - Ability to effectively market/sell satellite buses - Developing and validating new technologies like water plasma propulsion - Converting backlog/inquiries into revenue - Product failures/delays causing customers to use competitors - Regulatory compliance like export controls - Workforce recruiting/retention

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