Financial Data and Key Metrics Changes - Total revenue for the first half of 2025 was approximately $1.5 million, a decrease of 24% compared to $2 million in the same period in 2024, reflecting a strategic shift away from legacy contracts towards higher value commercial space-based and AI-driven solutions [31] - Cost of revenue rose to approximately $4.2 million, a 52% increase from $2.7 million in 2024, driven by increased depreciation and supply chain pressures [32] - Gross profit for the period was a loss of $2.7 million compared to a loss of $757,000 in the same period last year, primarily due to increased depreciation and a shift in contract structure [33] - Selling, general and administrative (SG&A) expenses totaled $8.7 million, up from $6.7 million in the prior year, supporting key growth initiatives [34] - Adjusted EBITDA for the first half of 2025 was $8.6 million compared to $5.9 million in the same period last year, reflecting ongoing investment in scaling the platform [35] Business Line Data and Key Metrics Changes - The company successfully launched its third satellite, LIDSYSAT-3, which is expected to generate recurring revenue through data services [7][9] - The Fortis VPX product line is being expanded to meet growing demand across various sectors, including aerospace and defense, with three scalable tiers introduced [11][12] - The transition from development to commercialization is foundational to the company's growth strategy for 2025 [8] Market Data and Key Metrics Changes - The company is positioned to benefit from increased U.S. manufacturing incentives and rising allied defense spending, particularly in Europe [27] - The focus on dual-use technologies aligns with national security priorities, enhancing the company's relevance in the evolving space economy [20][21] Company Strategy and Development Direction - The company aims to build a vertically integrated model that allows for rapid innovation and cost-effective solutions across space, technology, and AI [30] - The strategic focus includes expanding satellite constellations and advancing dual-use technologies for diverse applications [22][23] - The company is committed to a multi-domain strategy that reduces reliance on any single market segment, essential for long-term sustainable growth [41] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by supply chain pressures but remains optimistic about the transition to higher-margin recurring revenue models [32][36] - The company does not expect to turn a profit in 2025 but is building momentum for future growth [42] - The focus remains on innovation and strategic investments to support long-term profitability and operational efficiency [38][39] Other Important Information - The company completed a public offering of 7.1 million shares at a price of $1.05 per share, realizing approximately $6.7 million in net proceeds [38] - The company has approximately 28 patents approved or pending, reinforcing its competitive edge in the market [19] Q&A Session Summary Question: What are the company's expectations for revenue growth in the coming quarters? - Management indicated that the groundwork laid in 2025 positions the company for material revenue growth in the second half of the year, driven by the commercialization of new technologies and expanding customer contracts [26][42] Question: How is the company addressing supply chain challenges? - The company is actively pursuing cost optimizations and operational efficiencies to mitigate the impact of supply chain pressures on manufacturing operations [32][38]