UrtheCast close to finalizing $65m contract as Q3 losses jump 40%

UrtheCast CEO Scott Larson 

The Vancouver-based tech company behind the first Ultra HD camera to stream video from outer space is in the midst of finalizing a five-year contract worth $65 million.

UrtheCast (TSX:UR) CEO Scott Larson confirmed on a November 13 conference call with investors the company has just received an authorization to proceed (ATP) with a confidential client.

The deal was announced in August and the finalization of the contract has “taken a little longer than we would’ve liked,” COO and president Wade Larson told investors.

“The project has gone extremely quickly overall. Far faster than is typical for these kinds of projects,” he said.

But because the confidential client is a government organization, Wade Larson said there is a “fair degree of process and bureaucracy associated with the paperwork.”

He added UrtheCast had a team on the ground working with the client and reported all indications are that the finalization of the contract is imminent and the budget for it will be approved.

Meanwhile, the company also revealed it posted comprehensive losses of $3.9 million in the third quarter of 2014 — a 40% jump from the same period in 2013 when losses were at $2.6 million.

As the company still is in the development stage, CFO Issa Nakhleh said losses are likely to remain around the $2.5 million mark for a while.

“It will vary quarter to quarter, but it’s not going to materially change too much,” he said.

However, UrtheCast expects the finalization of the $65-million contract will result in an advance payment of $3 million arriving in the company’s coffers by the fourth quarter. An additional $10 million deposit is expected to come in by the first quarter of 2015.

The company has already installed its HD camera on the International Space Station and is expecting the device to go operational soon.