# Delos Aerospace
Capitalization Strategy & Non-Dilutive Funding Roadmap

## Zero-Dilution Pathway to Prime Acquisition

The traditional aerospace startup model relies on Venture Capital (VC), which dilutes founder ownership by 20% to 30% at every funding round. Delos Aerospace rejects that model. By strictly utilizing State Grants, the Small Business Innovation Research (SBIR) program, and strategic Memorandums of Understanding (MOUs) for hardware, Delos will fund the entire R&D and prototyping lifecycle without selling a single share of equity. This strategy legally isolates the Intellectual Property (IP) under DFARS and positions the Founder to own 100% of the company at the time of a multi-billion-dollar strategic buyout.

## Phase 0: IP Formalization & State Capital (Months 1–6)

**Objective:** Establish the legal entity, secure initial operational capital, and legally ring-fence the intellectual property prior to federal engagement.

**Funding source:** Self-funding (minimal) and State Micro-Grants (e.g., NC IDEA MICRO: $10k).

**Equity dilution:** 0%

**Key milestones:**
- Incorporate Delos Aerospace, LLC in North Carolina.
- Secure EIN and register in SAM.gov (obtain UEI and CAGE code).
- Process SDVOSB certification through the SBA VetCert portal.
- Execute Provisional Patent Applications (PPA) for the "System and Method" of the Sky-Dock release and thermal-clearance "snapback" maneuver.
- Complete initial CAD modeling and kinematic physics proofs.

**Prerequisites to unlock Phase 1:**
- Active SAM.gov UEI and CAGE code.
- SDVOSB VetCert actively displayed on the federal profile.
- Clean, separate business bank accounts proving that all Phase 0 IP was developed exclusively at private expense to guarantee Limited Rights under DFARS 252.227-7013.

## Phase 1: Federal Feasibility (Months 6–12)

**Objective:** Secure DoD validation and fund high-fidelity computational fluid dynamics (CFD) and thermal modeling.

**Funding source:** SpaceWERX / AFWERX SBIR Phase I ($75,000–$150,000).

**Equity dilution:** 0%

**Key milestones:**
- Win a Phase I SBIR under a TacRS or "Open Topic" solicitation.
- Identify the Space Force Program Executive Office (PEO) or Defense Innovation Unit (DIU) transition partner that will champion the Sky-Dock.
- Activate statutory SBIR Data Rights, establishing a 20-year legal firewall preventing the DoD from sharing Delos technical data with competing Prime contractors.

**Prerequisites to unlock Phase 2:**
- Completed Phase I feasibility report proving the physics of the "Weaponized Snapback."
- Signed MOUs with established COTS rocket providers (e.g., Firefly, ABL) proving Delos has a "Buy vs. Build" hardware pipeline.
- Signed Customer Memorandum (Letter of Support) from a DoD end-user stating they want to test the prototype.

## Phase 2: Prototyping & Strategic Teaming (Months 12–24)

**Objective:** Build the physical Sky-Dock, mate it to a sub-scale COTS rocket, and execute the first physical "Drop and Pop" test.

**Funding source:** SpaceWERX SBIR Phase II / TACFI ($1,000,000–$1,500,000) or State Bridge Grants (NC IDEA SEED: $50k).

**Equity dilution:** 0%

**Key milestones:**
- Convert Phase 0 provisional patents into full utility patents.
- Manufacture the thermally isolated kinematic release bus (Sky-Dock).
- Execute the first physical drop and cold-gas stabilization test at Roosevelt Roads or a tethered test site.
- Draft the Justification & Approval (J&A) white paper citing FAR 6.302-1 ("Only One Responsible Source").

**Prerequisites to unlock Phase 3:**
- Video and telemetry data proving a successful, stable release of the COTS hardware from the Sky-Dock.
- Full utility patent granted or heavily pending to legally enforce the "Only One Responsible Source" monopoly.

## Phase 3: Uncapped Sole-Source Production (Months 24–48)

**Objective:** Transition from prototyping to building the full Ghost Fleet and Universal HAPS architecture.

**Funding source:** SBIR Phase III Sole-Source Contract or DIU Production OTA ($50M–$100M+).

**Equity dilution:** 0%

**Key milestones:**
- Secure a massive, uncapped non-compete contract to provide "TacRS Launch as a Service."
- Build maritime clamshell launch barges and procure full-scale HALE envelopes.
- Integrate Regenerative Fuel Cell Systems (RFCS) and deploy Airborne eLORAN and FEMA disaster-relief nodes.

**Prerequisites to unlock the exit:**
- Guaranteed recurring TacRS and HAPS revenue streams secured by multi-year DoD contracts.
- Ironclad patents that force Prime contractors to buy Delos rather than attempt to circumvent the architecture.

## Phase 4: The 80/20 Generational Exit (Year 5)

**Objective:** Liquidate the majority of the company for generational wealth while retaining a high-value stake in ongoing global expansion.

**Funding source:** Private strategic acquisition by a Prime Contractor (e.g., Lockheed Martin, L3Harris, Northrop Grumman).

**Founder payout:** 80% of a $1.2B to $3.5B+ valuation.

**Key milestones:**
- Execute the buyout while retaining 20% equity and a board seat.
- Capture ongoing upside as the Prime Contractor scales the Sky-Dock globally and hits future earn-out thresholds.
- Complete a standard 18-to-24-month transition contract as VP of Stratospheric Architectures before a clean exit.