Q2 mid-quarter status (April 2026): SAT-001 build is mid-program · MES Stage 4 in progress · CLIN-003 long-lead all received with 1 NCR closed (use-as-is) · CLIN-004 build milestones beginning to recognise.

Headwinds: L3Harris telescope expedite premium ($14K) drove CPI to 0.964 · PROP-TANK Moog Bradford slip risk under monitor · YTD net loss $2.6M wider than plan due to early Mfg OH absorption ahead of build-stage revenue.

Tailwinds: SAT-002 framework option (~$30M) tracking close-Q3 with USSF · DSO consistently inside Net 30 · cash burn 25.3 months runway · headcount on plan at 180 (target 218 EOY).

Methodology: Q1 actuals + April in-flight + May-Dec forecast. Forecast updates monthly at FP&A close-out. Q4 expense forecast revised up 2% (Mfg OH absorption · test phase ramp); test costs (5240) revised up 8% reflecting acceptance test campaign load.

Attrition assumption: 8% annual · 14 backfills built into plan · cost per hire $22K (avg) · ITAR clearance pre-screen adds 2-3 weeks to time-to-fill.

Capitalisation policy: > $5K threshold capitalised · depreciated 5-7 years (test equipment) or 39 years (cleanroom build-out leasehold). Below threshold expensed to 6320 IT hardware or relevant OpEx account.

Process: DCMA approves provisional rates annually. Throughout the year, FP&A monitors YTD actual cost-pool absorption vs provisional. If variance > 0.5pts trends sustained, submit revised provisional to DCMA for current-year billing rate. Final true-up at fiscal year-end via DCAA-audited Incurred Cost Submission (ICS).