In line with these key areas of our strategic focus, we recently reorganized our leadership structure to ensure operational efficiency and resourcing in the right places. In September, we announced the appointment of Leonardo Riera to the position of Chair of the Board. Leo’s significant Board experience will be invaluable in managing governance and other related matters, and this will provide me with an increased ability to focus on the execution of our commercial development strategy to build value for our shareholders. We also promoted Jared Novick to the role of Chief Operating Officer; Lindsey Waitt to Lizzie Sapp, Program Manager, and appointed Jessica Curry as our Senior Vice President of Supply Chain. And as we gear up for the launch of LizzieSat in 2024 and scale up production of our LizzieSat satellite, these roles will be critical in ensuring our success.
These changes will not only allow for more streamlined and efficient management of technical and operational aspects speaks within Sidus Space, but also ensure that we are right-sized and efficiently resourced to achieve our launch program. And I will now hand the call over to Teresa to discuss the financial highlights.
Teresa Burchfield: Thanks, Carol. It is a pleasure to be here today to discuss our third quarter 2023 financial results. You can find more details on our results in our Q3 Form 10-Q filed with the SEC on Tuesday, November 14th, 2023. As we progress towards the LizzieSat launches, we are focused on conserving capital to ensure that we have everything in place to execute upon our strategy. Sidus achieved revenue of approximately $986,000 for the quarter ended September 30th, 2023, compared to $1.32 million for the same period last year. While revenue declined period-over-period, primarily due to timing of fixed price milestone contracts, our higher margin satellite revenue continued to increase. From a year-to-date perspective, it is important to note that for nine months ended September 30th, 2023, our satellite revenue has continued to increase and was up 135% versus the same period last year.
Our gross profit was approximately negative $96,000 or negative 10% for the quarter ended September 30th, 2023, compared to approximately negative $86,000 or negative 7% for the third quarter of 2022. It is key to note that although gross profit was down 12% versus prior year, this was based on 25% lower revenue, and reflects the positive gross profit impact, as we continue to increase the percentage of our higher margin satellite-related revenue. As we have mentioned before, our gross margin will be lumpy when looked at quarter-to-quarter but smooths out when looked at over time. For the nine months ended September 30th, 2023, our gross margin as a percent of revenue was 28% versus 25% last year and was almost $68,000 higher on $344,000 less sales year-over-year, again a reflection of increased percentage of our overall revenue coming from our higher margin satellite side of the business.
Third quarter operating loss was $3.87 million, which was comparable with the third quarter of last year. Overall, operating expenses decreased slightly $11,000 for the three months ended September 30th, 2023 versus prior year. To provide investors with additional information in connection with our results that’s determined in accordance with GAAP, we also included in our Q3 Form 10-Q non-GAAP measures to determine our adjusted EBITDA. We use adjusted EBITDA in order to evaluate our operating performance and make strategic decisions regarding the future direction of the company. We define adjusted EBITDA as net income as determined by U.S. GAAP is adjusted for interest expense, depreciation and amortization expense, acquisition deal costs, severance costs, capital market and advisory fees, equity-based compensation, and warrant costs.
These non-GAAP measures may be different from non-GAAP measures made by other companies since not all companies will use the same measures. Therefore, these non-GAAP measures should not be considered in isolation or as a substitute for relevant U.S. GAAP measures and should be read in conjunction with the information presented on a U.S. GAAP basis. Moving now to our capital structure. Close the end of the quarter on October 11, 2023, the company executed a registered direct offering in which the company sold an aggregate of 2,000 shares of Series A convertible preferred stock as well as a concurrent private placement of warrants to purchase up to approximately 19.7 million shares of Class A common stock. The preferred shares are convertible into approximately 19.7 million shares of our Class A common stock.
Gross proceeds from the offering were approximately $2 million. Please reference our September 30, 2023, 10-Q for additional details. We are using the proceeds to continue to execute our strategic plan, including continued satellite development at an accelerated pace and to fulfill a steady launch cadence. We remain focused on managing our operating expenses closely with only a small amount of debt on our balance sheet. And with that, I’ll hand the call back over to Carol.
Carol Craig: Thank you, Teresa. Before we move on to the Q&A portion of the call, I’ll address the topic of our stock’s performance. We recently received a delisting notice from NASDAQ since our Class A common stock was trading under $0.10 for 10 consecutive trading days. NASDAQ provides a hearing process and we have requested a hearing, which will say any delisting action by NASDAQ. In order to comply with NASDAQ continuing listing rules, we’ve secured board and shareholder approval for a reverse stock split of our outstanding common stock, which we expect to occur in December. We have filed an information statement with the SEC, which details the specifics of the proposed reverse split. I want to thank our shareholders for your continued support of Sidus.
