Intuitive Machines, Inc.

Previous wording

In April 2025, the Texas Space Commission selected Intuitive Machines for a grant up to $10.0 million from the Space Exploration and Research Fund. This funding supports the development of an Earth reentry vehicle and orbital fabrication lab designed to enable microgravity biomanufacturing and is intended to serve as a critical risk-reduction platform for the Company’s future lunar sample return missions.

Current wording

In April 2025, the Texas Space Commission (“TSC”) selected Intuitive Machines for a grant up to $10.0 million from the Space Exploration and Research Fund. This funding supports the development of an Earth reentry vehicle and orbital fabrication lab designed to enable microgravity biomanufacturing and is intended to serve as a critical risk-reduction platform for the Company’s future lunar sample return missions.

Previous wording

We believe that our future success and financial performance depend on several factors that present significant opportunities for our business, but also pose risks and challenges, including those discussed below and in the section titled Part I., Item 1A. “Risk Factors” in the 2024 Annual Report on Form 10-K.

Current wording

We believe that our future success and financial performance depend on several factors that present significant opportunities for our business, but also pose risks and challenges, including those discussed below and in the sections titled Part I., Item 1A. “Risk Factors” in the 2024 Annual Report on Form 10-K, and Part II., Item 1A. “Risk Factors” of this Quarterly Report on Form 10-Q.

Previous wording

We continue to monitor economic conditions and the impact of macroeconomic pressures, including repercussions from the recent banking crisis, rising interest rates, sustained inflation and recession fears, supply chain disruptions, monetary and fiscal policy measures (including future actions or inactions of the United States government related to the “debt-ceiling”), heightened geopolitical tensions (such as the war in Ukraine and Israel), changes to the U.S. federal budget, and the political and regulatory environment (including changes as a result of policy shifts implemented by the current administration)on our business, customers, suppliers and other third parties.

Current wording

We continue to monitor economic conditions and the impact of macroeconomic pressures, including repercussions from elevated interest rates, sustained inflation and recession fears, supply chain disruptions, monetary and fiscal policy measures (including future actions or inactions of the United States government related to the “debt-ceiling” or “Department of Government Efficiency” actions), heightened geopolitical tensions (such as the war in Ukraine and Israel), changes to the U.S. federal budget, and the political and regulatory environment (including changes as a result of policy shifts implemented by the current administration)on our business, customers, suppliers and other third parties.

Previous wording

In the first quarter of 2025, we observed a significant shift in U.S. trade policy, with increased tariffs and the imposition of new tariffs that could impact our supply chain and our business. While some of these wide-reaching tariffs have been paused, these trade policy decisions are outside of our control and may have consequences for our business. Changes in trade policies, such as new tariffs or increases in tariffs, or reactionary measures including retaliatory tariffs or legal challenges, could have an adverse impact our business. Even though we primarily sell our products and services to U.S. Government customers and our suppliers are primarily domestic, we have some exposure to imported materials and components. Based on current conditions, we do not expect a material impact on our 2025 results and will continue to monitor developments and assess potential implications as trade policies evolve.

Current wording

In the first half of 2025, we observed a significant shift in U.S. trade policy, with increased tariffs and the imposition of new tariffs that could impact our supply chain and our business. While some of these wide-reaching tariffs have been paused, these trade policy decisions are outside of our control and may have consequences for our business. Changes in trade policies, such as new tariffs or increases in tariffs, or reactionary measures including retaliatory tariffs or legal challenges, could have an adverse impact on our business. Even though we primarily sell our products and services to U.S. Government customers and our suppliers are primarily domestic, we have some exposure to imported materials and components. Based on current conditions, we do not expect a material impact on our 2025 results. We will continue to monitor the evolving trade landscape and assess potential implications on our supply chain and business.

Previous wording

We are in the preliminary stages of developing our full space infrastructure offerings. These services are expected to grant customers access to cislunar space and the lunar surface at lower price points than previous lunar missions. We are also working to provide data transmission services at lunar distance to include far-side connectivity, along with ancillary services that are likely to include orbital servicing and payload development and manufacture.

Current wording

We are in the preliminary stages of developing our full space infrastructure offerings. These services are expected to grant customers access to cislunar space and the lunar surface at lower price points than previous lunar missions. We are also working to provide data transmission services at lunar distance to include far-side connectivity, along with ancillary services that are likely to include orbital servicing, earth reentry, and payload development and manufacture.

Previous wording

Our success will partially depend on our ability to expand our lunar mission operations in 2025 and beyond. We completed the first mission in February 2024 and completed our second mission in March 2025. We are working to establish a regular cadence of missions. We believe that this will provide our customers with proven and reliable cislunar access, with which to plan their future manifest. With binding agreements for additional launches as of March 31, 2025, we have $272.3 million in backlog, and we are in active discussions with numerous potential customers, including government agencies and private companies, to potentially add to our contracted revenue backlog.

Current wording

Our success will partially depend on our ability to expand our lunar mission operations and win government contracts in 2025 and beyond. We completed the first mission in February 2024 and completed our second mission in March 2025. We are working to establish a regular cadence of missions. We believe that this will provide our customers with proven and reliable cislunar access, with which to plan their future manifest. With binding agreements for additional launches as of June 30, 2025, we have $256.9 million in backlog, and we are in active discussions with numerous potential customers, including government agencies and private companies, to potentially add to our contracted revenue backlog.

Previous wording

Prior to commencing missions, we must complete internal integration activities as well as launch vehicle integration with our launch provider, SpaceX. Any delays to our targeted mission launch date or in commencing our missions, including due to congestion at the pad launch site or delays in obtaining various approvals or licenses, could adversely impact our results and growth plans. As we improve production efficiency and schedule reliability and reach our target of multiple missions per year manifested 2-3 years in advance, we expect to improve our market penetration, which we believe will lead to higher revenue from both volume and mission complexity as well as increased operating leverage.

Current wording

Prior to commencing missions, we must complete internal integration activities as well as launch vehicle integration with our launch provider, SpaceX. Any delays to our targeted mission launch date or in commencing our missions, including due to congestion at the pad launch site or delays in obtaining various approvals or licenses, could adversely impact our results and growth plans. As we improve production efficiency and schedule reliability and begin to launch our satellites for our lunar data network, we expect to improve our market penetration, which we believe will lead to higher revenue from both volume and mission complexity as well as increased operating leverage.

Previous wording

Our future growth is largely dependent on our ability to continue to capitalize on increased government spending and private investment in the space economy. U.S. federal government expenditures and private enterprise investment have fueled our growth in recent years, and it has resulted in our continued ability to secure increasingly valuable contracts for products and services in 2024. An increased focus on U.S. federal government spending could unfavorably impact the space exploration sector in the future. On January 20, 2025, President Donald J. Trump announced an executive order establishing the “Department of Government Efficiency” to maximize government efficiency and productivity. Pressures on and uncertainty surrounding the U.S. federal government’s budget and potential changes in budgetary priorities, could adversely affect the funding for individual programs and delay purchasing decisions by our customers. If our existing programs and project pursuits are not focused on the federal government’s higher priorities, our business, prospects, financial condition and operating results could be adversely affected.

Current wording

Our future growth is largely dependent on our ability to continue to capitalize on increased government spending and private investment in the space economy. U.S. federal government expenditures and private enterprise investment have fueled our growth in recent years, and it has resulted in our continued ability to secure increasingly valuable contracts for products and services. An increased focus on U.S. federal government spending could unfavorably impact the space exploration sector in the future. On January 20, 2025, President Donald J. Trump announced an executive order establishing the “Department of Government Efficiency” to maximize government efficiency and productivity. Pressures on and uncertainty surrounding the U.S. federal government’s budget and potential changes in budgetary priorities, could adversely affect the funding for individual programs and delay purchasing decisions by our customers. If our existing programs and project pursuits are not focused on the federal government’s higher priorities, our business, prospects, financial condition and operating results could be adversely affected.

Previous wording

We design, build, and test our landers, spacecraft and subsystems in-house and operate at the forefront of composite structures, liquid rocket engines, guidance, navigation and control software, precision landing and hazard avoidance software, and advanced manufacturing techniques. We believe the synergy of these technologies enables greater responsiveness to the commercial and government requirements for lunar exploration. To continue establishing market share and attracting customers, we plan to continue to make substantial investments in research and development for the continued enhancements of our landers, lunar data network, and other space systems. Over time, we expect our research and development expenditures to continue to grow on an absolute basis, but remain consistent or decrease as a percent of our total revenue as we expand our service offerings.

Current wording

We design, build, and test our landers, satellites, spacecraft and subsystems in-house and operate at the forefront of composite structures, liquid rocket engines, guidance, navigation and control software, precision landing and hazard avoidance software, and advanced manufacturing techniques. We believe the synergy of these technologies enables greater responsiveness to the commercial and government requirements for lunar exploration. To continue establishing market share and attracting customers, we plan to continue to make substantial investments in research and development for the continued enhancements of our landers, lunar data network, and other space systems. Over time, we expect our research and development expenditures to continue to grow on an absolute basis, but remain consistent or decrease as a percent of our total revenue as we expand our service offerings.

Previous wording

In connection with the Private Placement, Warrant Exercise Agreement, and the Bridge Loan Conversion, the Company has issued warrants which are classified as liabilities on our balance sheet. At each period end, the warrants are remeasured to their fair value with the changes during the period recognized in other income (expense) on our condensed consolidated statement of operations. See Notes 8 and 10 of the condensed consolidated financial statements for additional information on the warrant liabilities.

Current wording

In connection with the Private Placement, Warrant Exercise Agreement, and the Bridge Loan Conversion, the Company has issued warrants which are classified as liabilities on our balance sheet. At each period end, the warrants are remeasured to their fair value with the changes during the period recognized in other income (expense) on our condensed consolidated statement of operations. As of June 30, 2025, only the Bridge Loan Conversion warrants remain outstanding. See Notes 8 and 10 of the condensed consolidated financial statements for additional information on the warrant liabilities.

Previous wording

Net income (loss) attributable to redeemable noncontrolling interest

Current wording

Net loss attributable to redeemable noncontrolling interest

Previous wording

Redeemable noncontrolling interests represents the portion of Intuitive Machines, LLC that the Company controls and consolidates but does not own. The noncontrolling interests was created as a result of the Business Combination and represents 68,150,754 Class A and Class B units issued by Intuitive Machines, LLC to the prior investors represents approximately 81.2% of the ownership interests in the Company at the Closing Date. The Company allocates net income or loss attributable to the noncontrolling interests based on the weighted average ownership interests during the period. The net income or loss attributable to noncontrolling interests is reflected in the condensed consolidated statement of operations.

Current wording

Redeemable noncontrolling interest represents the portion of Intuitive Machines, LLC that the Company controls and consolidates but does not own. The noncontrolling interest was created as a result of the Business Combination and represented the common units issued by Intuitive Machines, LLC to the prior investors. The Company allocates net income or loss attributable to the noncontrolling interest based on the weighted average ownership interest during the period. The net income or loss attributable to noncontrolling interests is reflected in the condensed consolidated statement of operations. As of June 30, 2025, the financial results of Intuitive Machines, LLC were consolidated into Intuitive Machines, Inc. and resulted in the allocation of approximately 34.2% of Intuitive Machines, LLC’s net loss to noncontrolling interest.

Previous wording

The following table sets forth information regarding our consolidated results of operations for the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

Current wording

The following table sets forth information regarding our consolidated results of operations for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, and for the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

Previous wording

Revenue for the three months ended March 31, 2025 and 2024 was primarily driven by NASA and other commercial payload contracts associated with the IM-1, IM-2 and IM-3 lunar payload missions as well as the OMES III contract where we provide engineering services to the Landsat Servicing mission at the Goddard Space Flight Center in Maryland.

Current wording

Revenue for the three and six months ended June 30, 2025 and 2024 was primarily driven by NASA and other commercial payload contracts associated with our lunar payload missions as well as the OMES III contract where we provide engineering services to the Landsat Servicing mission at the Goddard Space Flight Center in Maryland, the NSN contract for the development of a satellite communications and navigation network, and the LTV contract leading the development of the Moon RACER Lunar Terrain Vehicle.

Previous wording

•The NASA payload contract for the IM-1 mission was awarded in June 2019 and was completed in February 2024. As a result of the successful landing on the lunar surface, previously constrained revenue of approximately $12.3 million as of December 31, 2023 was released and approximately$11.6 million was recognized as revenue during the first quarter of 2024, bringing the total IM-1 mission contract revenue under NASA and other commercial fixed-priced contracts to $132.4 million. As of March 31 2024, the IM-1 mission and all related contracts have been closed out.

Current wording

•The NASA payload contract for the IM-1 mission was awarded in June 2019 and was completed in February 2024. As a result of the successful landing on the lunar surface, previously constrained revenue of approximately $12.3 million as of December 31, 2023 was released and approximately$11.6 million was recognized as revenue during the first quarter of 2024, bringing the total IM-1 mission contract revenue under

Previous wording

•The initial NASA payload contract for the IM-2 mission was awarded in October 2020 and the mission was completed in March 2025, with post-launch services to extend to no later than August 2025. Total IM-2 mission estimated contract revenue under NASA and other commercial fixed-priced contracts was $125.3 million (excluding constrained revenue of $14.4 million) as of March 31, 2025.

Current wording

•The initial NASA payload contract for the IM-2 mission was awarded in October 2020 and the mission was completed in March 2025, with post-launch services to extend to no later than August 2025. Total IM-2 mission estimated contract revenue under NASA and other commercial fixed-priced contracts was$125.5 million (excluding constrained revenue of$5.7 million) as of June 30, 2025. We expect to close out the remaining customer contracts for this mission in the third quarter of 2025.

Previous wording

•The initial NASA payload contract for the IM-3 mission was awarded in November 2021 with an initial targeted mission launch date no later than June 2024 under our current contract with NASA. Total IM-3 mission estimated revenue under fixed-priced contracts is $93.1 million (excluding constrained revenue of $9.8 million) as of March 31, 2025 as compared to $87.0 million as of March 31, 2024. The increase in total mission estimated contract revenue is primarily due to a task order modification with NASA to identify its complement of payloads and extend the IM-3 mission timeline to no later than June 2026.

Current wording

•The initial NASA payload contract for the IM-3 mission was awarded in November 2021 with an initial targeted mission launch date no later than June 2024. Total IM-3 mission estimated revenue under fixed-priced contracts is$93.0 million (excluding constrained revenue of$9.7 million) as of June 30, 2025 as compared to$86.9 million as of June 30, 2024. The increase in total mission estimated contract revenue is primarily due to a third quarter 2024 task order modification with NASA to identify its complement of payloads which extended the IM-3 mission timeline to no later than June 2026. However, as discussed below, we expect to further extend the mission launch window into the second half of 2026.

Previous wording

Total revenue decreased by $10.7 million, or 15%, for the three months ended March 31, 2025 compared to the same period in 2024, primarily driven by the OMES III contract decrease in revenue of $20.1 million due to NASA’s cancellation of the OSAM project, an overall net decrease in revenue from CLPS mission contracts of $1.5 million (as further discussed below), offset by increases in revenue related to the LTV contract for $6.9 million and NSN contract for $3.0 million. Other engineering services revenue increased by$1.0 million.

Current wording

Total revenue decreased by$2.0 million, or 2%, for the six months ended June 30, 2025 compared to the same period in 2024, primarily driven by the OMES III contract decrease in revenue of$39.6 million due to NASA’s cancellation of the OSAM project task orders. This decrease was partially offset by a net increase in revenue from CLPS mission contracts of$10.2 million (as further discussed below), as well asincreases in revenue related to the LTV contract of$10.9 million, the ramp up of the NSN contract of$12.6 million, and other engineering services revenue of$3.9 million.

Previous wording

The IM-1 mission successfully completed in February 2024 and resulted in the release of approximately $12.3 million of previously constrained revenue during the first quarter of 2024. Revenue on the IM-2 mission increased slightly by $2.7 million as the mission was completed in March 2025. We expect to finalize post-launch services and IM-2 mission contracts with NASA in the second quarter of 2025. Revenue from the IM-3 mission increased to $7.3 million for the three months ended March 31, 2025 from $5.5 million for the same period in 2024. The IM-3 mission was approximately 76% complete as of March 31, 2025. The IM-4 mission which was awarded in August 2024, recognized revenue of $6.4 million during the three months ended March 31, 2025.

Current wording

The IM-1 mission successfully completed in February 2024 and resulted in the release of approximately $12.3 million of previously constrained revenue during the first quarter of 2024. For the six months ended June 30, 2025 compared to the same period in 2024, revenue on the IM-2 mission increased by$3.1 million as the mission was completed in March 2025 with the mission close-out process expected to be finalized in the third quarter of 2025. Revenue from the IM-3 mission increased to $8.1 million for the six months ended June 30, 2025 as compared to $2.7 million for the same period in 2024, mostly driven by the 2024 unfavorable adjustments from task order modifications which extended the targeted mission launch window. The IM-4 mission which was awarded in August 2024, recognized revenue of$14.0 million during the six months ended June 30, 2025.

Previous wording

Total cost of revenue decreased by $3.4 million, or 6%, for the three months ended March 31, 2025 compared to the same period in 2024, primarily driven by the OMES III contract decrease of $19.4 million due to NASA’s cancellation of the OSAM project, offsetby overall cost increases related to the mission contracts of $5.3 million (as further discussed below), the LTV contract for $7.7 million and NSN contract for $1.6 million. Other engineering services cost of revenue increased by $1.4 million.

Current wording

Total cost of revenue increased slightly by$1.1 million, or 1%, for the six months ended June 30, 2025 compared to the same period in 2024, primarily driven byoverall cost increases related to the mission contracts of $18.4 million (as further discussed below), the LTV contract of $11.0 million, the NSN contract of $5.3 million, and other engineering services cost of revenue of $4.5 million, offset by the OMES III contract cost decrease of $38.1 million due to NASA’s cancellation of the OSAM project.

Previous wording

The IM-1 mission completed in February 2024 and incurred cost of revenue of $5.0 million during the first quarter of 2024. On the IM-2 mission, cost of revenue increased slightly by approximately $2.4 million for the three months ended March 31, 2025 compared to the same period in 2024 as the mission was completed in March 2025. IM-3 mission cost of revenue increased slightly by approximately $0.8 million for the three months ended March 31, 2025 compared to the same period in 2024. As of March 31, 2025, the IM-3 contract is in a loss position and the accrued contract loss increased slightly by approximately $0.2 million during the three months ended March 31, 2025. The IM-4 mission which was awarded in August 2024, incurred cost of revenue of$7.1 million during the three months ended March 31, 2025.

Current wording

The IM-1 mission completed in February 2024 and incurred cost of revenue of $4.9 million during the first quarter of 2024. On the IM-2 mission, cost of revenue decreased by approximately $6.2 million for the six months ended June 30, 2025 compared to the same period in 2024 as the mission was completed in March 2025. IM-3 mission cost of revenue increased by approximately $11.3 million for the six months ended June 30, 2025 compared to the same period in 2024, mostly driven by decisions to align the mission schedule with the completion of an internally-developed satellite to be placed in lunar orbit to meet NSNS contract obligations. As of June 30, 2025, the IM-3 contract is in a loss position and the accrued contract loss increased by approximately $18.5 million during the six months ended June 30, 2025, driven by the cost adjustments as previously discussed. The IM-4 mission which was awarded in August 2024, incurred cost of revenue of$18.2 million during the six months ended June 30, 2025. During the second quarter of 2025, IM-4 became a loss contract with an accrued contract losses of approximately $2.7 million for the six months ended June 30, 2025.

Previous wording

Total other income (expense), net favorable change of $126.3 million for the three months ended March 31, 2025 compared to the same period in 2024 was primarily due to the favorable change in the fair value of warrant liabilities of $67.0 million, the non-recurrence of the $68.7 million loss on issuance of securities incurred in 2024, slightly offset by the unfavorable change in the fair value of earn-out liabilities of $10.8 million.

Current wording

Total other income (expense), net favorable change of $72.6 million for the six months ended June 30, 2025 compared to the same period in 2024 was primarily due to the non-recurrence of the $68.1 million loss on issuance of securities incurred in 2024, the favorable change in the fair value of warrant liabilities of $32.9 million, and the $4.8 million of interest income earned on cash and cash equivalents balances held by us in highly liquid interest bearing overnight sweep and demand deposits accounts slightly offset by the unfavorable change in the fair value of earn-out liabilities of $32.9 million.

Previous wording

Orders comprising backlog as of a given balance sheet date are typically invoiced in subsequent periods. As of March 31, 2025, we expect to recognize approximately 45-50% of our backlog over the remainder of 2025, approximately 25-30% over the subsequent twelve months of 2026 and the remaining thereafter. Our backlog could experience volatility between periods, including as a result of customer order volumes and the speed of our fulfillment, which in turn may be impacted by the nature of products and services ordered, the amount of inventory on hand to satisfy orders and the necessary development and manufacturing lead time required to satisfy certain orders.

Current wording

Orders comprising backlog as of a given balance sheet date are typically invoiced in subsequent periods. As of June 30, 2025, we expect to recognize approximately 30-35% of our backlog over the remainder of 2025, approximately 40-45% over the subsequent twelve months of 2026 and the remaining thereafter. Our backlog could experience volatility between periods, including as a result of customer order volumes and the speed of our fulfillment, which in turn may be impacted by the nature of products and services ordered, the amount of inventory on hand to satisfy orders and the necessary development and manufacturing lead time required to satisfy certain orders.

Previous wording

Backlog decreased by $56.0 million as of March 31, 2025 compared to December 31, 2024, primarily due to continued performance on existing contracts of $62.5 million, slightly offset by $6.5 million in new awards primarily associated with the OMES III contract and other federal services contracts.

Current wording

Backlog decreased by $71.4 million as of June 30, 2025 compared to December 31, 2024, primarily due to continued performance on existing contracts of $112.8 million and IM-2 mission close-out adjustments of $8.4 million, partially offset by $49.8 million in new awards primarily associated with the NSN contract of $18.0 million, TSC grant of $10.0 million, OMES III contract of $7.0 million, and various other contracts.

Previous wording

As of March 31, 2025, our backlog of $272.3 million exceeded our remaining performance obligations of $135.9 million as reported in Note 3 - Revenue to our condensed consolidated financial statements included in this Quarterly Report. The difference of $136.4 million was primarily related to $64.6 million of variable consideration associated with constrained revenue and $71.8 million in backlog related to the funded value of OMES III contract, the NSN contract, and various other contracts where revenue is recognized when services are performed and contractually billable and therefore not included in remaining performance obligations.

Current wording

As of June 30, 2025, our backlog of $256.9 million exceeded our remaining performance obligations of $125.4 million as reported in Note 3 - Revenue to our condensed consolidated financial statements included in this Quarterly Report. The difference of $131.5 million was primarily related to $56.0 million of variable consideration associated with constrained revenue and $75.5 million in backlog related to the funded value of OMES III contract, the NSN contract, and various other contracts where revenue is recognized when services are performed and contractually billable and therefore not included in remaining performance obligations.

Previous wording

Since inception, we have funded our operations through internally generated cash on hand, proceeds from sales of our capital stock, proceeds from warrant exercises, and our proceeds from the issuance of bank debt. We assess our liquidity in terms of our ability to generate adequate amounts of cash to meet current and future needs. Our expected primary uses of cash on a short and long-term basis are for working capital requirements, capital expenditures, general corporate purposes, including operations, research and development and potential mergers and acquisitions. Our primary working capital requirements are for project execution activities including purchases of materials, subcontracted services and payroll which fluctuate during the year, driven primarily by the timing and extent of activities required on new and existing projects. Our capital expenditures are primarily related to machinery and equipment, computers and software, and leasehold improvements.

Current wording

Since inception, we have funded our operations through internally generated cash on hand, proceeds from sales of our capital stock, proceeds from warrant exercises, and our proceeds from the issuance of bank debt. We assess our liquidity in terms of our ability to generate adequate amounts of cash to meet current and future needs. Our expected primary uses of cash on a short and long-term basis are for working capital requirements, general corporate purposes, and capital expenditures as well as research and development efforts and potential mergers and acquisitions. Our primary working capital requirements are for project execution activities including purchases of materials, subcontracted services and payroll which fluctuate during the year, driven primarily by the timing and extent of activities required on new and existing projects. Our capital expenditures are primarily related to machinery and equipment, computers and software, and leasehold improvements for general corporate and operational purposes. We expect construction in progress to continue to increase as we develop data relay satellites and ground networks associated with our Data Transmission Services business.

Previous wording

Cash Flows for the three months ended March 31, 2025 and 2024

Current wording

Cash Flows for the six months ended June 30, 2025 and 2024

Previous wording

During the three months ended March 31, 2025, our operating activities provided $19.4 million of net cash as compared to$6.4 million of net cash used during the three months ended March 31, 2024. Changes in operating assets and liabilities which consist primarily of working capital balances for our projects may vary and are impacted by the stage of completion and contractual terms of projects. The primary components of our working capital accounts are trade accounts receivable, contract assets, accounts payable, and contract liabilities.

Current wording

During the six months ended June 30, 2025, our operating activities provided $0.2 million of net cash as compared to$37.7 million of net cash used during the six months ended June 30, 2024. Changes in operating assets and liabilities which consist primarily of working capital balances for our projects may vary and are impacted by the stage of completion and contractual terms of projects. The primary components of our working capital accounts are trade accounts receivable, contract assets, accounts payable, and contract liabilities.

Previous wording

During the three months ended March 31, 2025, investing activities used $6.1 million of net cash as compared to $1.6 million of net cash used during the three months ended March 31, 2024. The $4.5 million increase in investing activitieswas driven by capital expenditures associated primarily with the new NSN contract awarded in late 2024

Current wording

During the six months ended June 30, 2025, investing activi ties used $14.2 million of net cash as compared to $3.8 million of net cash used during the six months ended June 30, 2024. The $10.4 million increase in investing activities was driven by capital expenditures associated primarily with the fabrication and development of commercial communications satellites and navigation network.

Previous wording

During the three months ended March 31, 2025, financing activities provided $152.3 million of net cash as compared to $60.8 million of net cash provided during the three months ended March 31, 2024.

Current wording

During the six months ended June 30, 2025, financing activities provided $151.3 million of net cash as compared to $70.6 million of net cash provided during the six months ended June 30, 2024.

Previous wording

During 2025, our financing activities primarily included$176.6 million in proceeds from the exercise of warrants, slightly offset by $20.7 million for share repurchase, and $3.5 million in net activity related to our share-based awards.

Current wording

During 2025, our financing activities primarily included$176.6 million in proceeds from the exercise of warrants, slightly offset by $20.7 million for share repurchase, and $4.5 million in net activity related to our share-based awards.

Previous wording

During 2024, our financing activities primarily included$50.6 million in proceeds from the exercise of warrants, $10.0 million in proceeds received in borrowings offset by the repayment of $10.0 million, and $10.0 million in proceeds from the issuance of securities.

Current wording

During 2024, our financing activities primarily included$51.4 million in proceeds from the exercise of warrants, $27.0 million in net proceeds from the issuance of securities, $10.0 million in proceeds received in borrowings under the Bridge Loan offset by the repayment of $10.0 million, $5.0 million repayment on a loan under the Credit Mobilization Facility, and $2.1 million in net activity related to our share-based awards.

Previous wording

We believe that the following acco unting policies involve a high degree of judgement and complexity. Accordingly, these are the policies we believe are the most critical to aid in fully understanding and evaluating our consolidated financial condition and results of our operations. Significant accounting policies employed by us, including the use of estimates, are presented in Note 2 - Summary of Significant Accounting Policies to our condensed consolidated financial statements included elsewhere in this Quarterly Report and our audited consolidated financial statements as of and for the years ended December 31, 2024 and 2023 contained in our Annual Report on Form 10-K, filed with the SEC on March 25, 2025.

Current wording

We believe that the following accounting policies involve a high degree of judgement and complexity. Accordingly, these are the policies we believe are the most critical to aid in fully understanding and evaluating our consolidated financial condition and results of our operations. Significant accounting policies employed by us, including the use of estimates, are presented in Note 2 - Summary of Significant Accounting Policies to our condensed consolidated financial statements included elsewhere in this Quarterly Report and our audited consolidated financial statements as of and for the years ended December 31, 2024 and 2023 contained in our Annual Report on Form 10-K, filed with the SEC on March 25, 2025.

Previous wording

We are an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart our Business Startups Act of 2012, (the “JOBS Act”), and may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved.

Current wording

We are an “emerging growth company” (“EGC”), as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart our Business Startups Act of 2012, (the “JOBS Act”), and may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved.