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Financial Highlights for the First Quarter Ending March 31, 2024:
Total revenue for the three months ended March 31, 2024, totaled approximately $1.1 million, a decrease of $1.2 million compared to total revenue for the three months ended March 31, 2024. This decrease was primarily driven by the timing of fixed price manufacturing milestone contracts related to delivery of hardware as directed by the contract requirements. Additionally, timing of satellite contract payments from existing customers varies for each calendar year. Due to customer driven delays, both manufacturing and satellite milestone payments shifted to the right and are expected to increase in the second half of the year.
Cost of revenue decreased 29% for the three months ended March 31, 2024, to approximately $1 million as compared to approximately $1.4 million for the three months ended March 31, 2023. The decrease in cost of revenue is primarily driven by the reduction of total revenue.
Gross profit margin decreased to 8% for the first quarter of 2024 as compared to 40% for the first quarter of 2023 due to the higher percentage of material costs as compared to labor for manufacturing contracts and the shifting of the satellite milestones due to customer delays along with the change in calculation of COGS.
Selling, general, and administrative expenses for the first quarter ended March 31, 2024, totaled approximately $3.6 million as compared to $3.5 million for the same period the prior year. The slight increase was primarily due to fundraising expenses from two capital raises in Q1 2024 and an increase in Mission Operations support expense related to ground support required for tracking and communicating with our first satellite, partly offset by a reduction in D&O insurance expenses, marketing and investor relations expenses.
