UrtheCast reports Q1 2020 financial results and is awarded $1M government contract

Credit: UrtheCast.

UrtheCast financial results for the first quarter of 2020 showed steady revenue year-to-year, though the company is still having trouble securing financing for the UrtheDaily Constellation.

While revenue stayed steady at $4.4 million, operating costs increased to $7.8 million. The company reported a net loss from continuing operations of $2.5 million and a net loss from discontinued operations of $8.6 million.

The discontinued operations they are referring to is the Deimos Imaging business. Specifically, the company states that “as a result of the planned sale of the Deimos Imaging business or its assets, the operations of Deimos Imaging have been classified as a discontinued operation for the three months ended March 31, 2020 and the associated comparative prior period.”

Q1 2020 Financial Results.
Q1 2020 Financial Results. Credit: UrtheCast.

UrtheCast – The good news

There was some good news. UrtheCast reported that it had “signed a non-binding letter of intent with an institutional investor to provide equity or junior subordinated debt financing for a portion of the UrtheDaily project.”

Furthermore they state that “together with the expected senior secured debt, government funding and other supplier financing arrangements, these sources would finance the build, launch and operational commissioning of the UrtheDaily Constellation.”

The UrtheDaily Constellation is still listed on their website as being launched in 2022. The Constellation of six medium resolution Earth Observation satellites would include six 9 spectral bands cross calibrated to Sentinel-2.

Coincidentally, yesterday’s quarterly announcement came on the same day the Canadian Space Agency announced the first set of contracts from this years Space Technology Development program. That announcement included $999,916 being awarded to UrtheCast for its UrthePlatform Analytics Engine.

In the UrtheCast press release Donald Osborne, CEO of UrtheCast, said, “Despite the unique challenges presented by COVID-19, our team’s diligence and focus have enabled us to make important progress towards securing financing for the UrtheDaily Constellation. I am pleased to say that we have recently entered into a non-binding letter of intent with an institutional investor for equity or junior debt that will serve as the foundation of the UrtheDaily financing. Building on this positive momentum, we also continue to advance discussions for the remaining senior debt funding that will, in combination with expected government and supplier financing, enable us to complete the financing package and put our ground-breaking UrtheDaily Constellation into orbit.”

UrtheCast did not hold an investors quarterly conference call.

About Marc Boucher

Marc Boucher
Boucher is an entrepreneur, writer, editor & publisher. He is the founder of SpaceQ Media Inc. and CEO and co-founder of SpaceRef Interactive Inc. Boucher has 20 years working in various roles in the space industry and a total of 28 years as a technology entrepreneur including creating Maple Square, Canada's first internet directory and search engine.

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