Pale Blue sent a written notice of contract cancellation to Axelspace Corporation (Axelspace)regarding the in-orbit demonstration services contract executed as of 16 December 2025. While Pale Blue and Axelspace have made good-faith efforts toward the execution of this contract, due to specific technical issues arising with the satellite being developed by Axelspace for this project, Pale Blue determined that continuing the contract would be difficult and requested its cancellation. Pale Blue and Axelspace commenced discussions regarding the contract on October 6. Moving forward, Pale Blue will continue to actively pursue diverse opportunities to ensure the early in-orbit demonstration of its products.