Annual report [Section 13 and 15(d), not S-K Item 405]

Restatement of Quarterly Financial Information (Unaudited) (Tables)

v3.25.0.1
Restatement of Quarterly Financial Information (Unaudited) (Tables)
 12 Months Ended
Dec. 31, 2023
Quarterly Financial Data [Abstract]  
Schedule of Consolidated Balance Sheets

 

 

 

As of March 31, 2023

 

 

As of June 30, 2023

 

 

As of September 30, 2023

 

Unaudited Condensed Consolidated Balance Sheets

 

Notes

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

 

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

 

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

Cash and cash equivalents

 

(i)

$

46,952

 

 

$

-

 

 

$

46,952

 

 

$

43,144

 

 

$

(59

)

 

$

43,085

 

 

$

29,936

 

 

$

(52

)

 

$

29,884

 

Contract assets

 

(ii)

$

4,213

 

 

$

(540

)

 

$

3,673

 

 

$

4,899

 

 

$

(671

)

 

$

4,228

 

 

$

4,489

 

 

$

(1,454

)

 

$

3,035

 

Other current assets

 

(iii)

$

8,949

 

 

$

(1,301

)

 

$

7,648

 

 

$

8,176

 

 

$

(203

)

 

$

7,973

 

 

$

8,401

 

 

$

4,929

 

 

$

13,330

 

Total current assets

 

 

$

99,629

 

 

$

(1,841

)

 

$

97,788

 

 

$

97,764

 

 

$

(933

)

 

$

96,831

 

 

$

81,643

 

 

$

3,423

 

 

$

85,066

 

Property and equipment, net

 

(iv)

$

58,147

 

 

$

598

 

 

$

58,745

 

 

$

62,964

 

 

$

(3,971

)

 

$

58,993

 

 

$

69,610

 

 

$

(9,366

)

 

$

60,244

 

Other long-term assets,
   including restricted cash

 

(v)

$

9,175

 

 

$

-

 

 

$

9,175

 

 

$

9,083

 

 

$

-

 

 

$

9,083

 

 

$

8,399

 

 

$

199

 

 

$

8,598

 

Total assets

 

 

$

263,502

 

 

$

(1,243

)

 

$

262,259

 

 

$

268,363

 

 

$

(4,904

)

 

$

263,459

 

 

$

256,009

 

 

$

(5,744

)

 

$

250,265

 

Contract liabilities,
   current portion

 

(vi)

$

17,444

 

 

$

6,027

 

 

$

23,471

 

 

$

21,854

 

 

$

5,390

 

 

$

27,244

 

 

$

22,763

 

 

$

9,871

 

 

$

32,634

 

Other accrued expenses

 

(vii)

$

7,596

 

 

$

(122

)

 

$

7,474

 

 

$

9,317

 

 

$

(148

)

 

$

9,169

 

 

$

9,650

 

 

$

(318

)

 

$

9,332

 

Total current liabilities

 

 

$

36,418

 

 

$

5,905

 

 

$

42,323

 

 

$

40,447

 

 

$

5,242

 

 

$

45,689

 

 

$

42,759

 

 

$

9,553

 

 

$

52,312

 

Contract liabilities,
   non-current

 

(viii)

$

-

 

 

$

13,683

 

 

$

13,683

 

 

$

-

 

 

$

12,437

 

 

$

12,437

 

 

$

-

 

 

$

13,049

 

 

$

13,049

 

Deferred income tax liabilities

 

(ix)

$

794

 

 

$

(285

)

 

$

509

 

 

$

817

 

 

$

(90

)

 

$

727

 

 

$

780

 

 

$

(167

)

 

$

613

 

Other long-term liabilities

 

(x)

$

556

 

 

$

(547

)

 

$

9

 

 

$

413

 

 

$

(404

)

 

$

9

 

 

$

761

 

 

$

(752

)

 

$

9

 

Total liabilities

 

 

$

169,665

 

 

$

18,756

 

 

$

188,421

 

 

$

174,830

 

 

$

17,185

 

 

$

192,015

 

 

$

178,523

 

 

$

21,683

 

 

$

200,206

 

Accumulated other comprehensive loss

 

(xi)

$

(8,542

)

 

$

64

 

 

$

(8,478

)

 

$

(4,208

)

 

$

80

 

 

$

(4,128

)

 

$

(5,989

)

 

$

284

 

 

$

(5,705

)

Accumulated deficit

 

(xii)

$

(356,320

)

 

$

(20,063

)

 

$

(376,383

)

 

$

(372,586

)

 

$

(22,169

)

 

$

(394,755

)

 

$

(390,381

)

 

$

(27,711

)

 

$

(418,092

)

Total stockholders’
   equity

 

 

$

93,837

 

 

$

(19,999

)

 

$

73,838

 

 

$

93,533

 

 

$

(22,089

)

 

$

71,444

 

 

$

77,486

 

 

$

(27,427

)

 

$

50,059

 

Total liabilities and
   stockholders’ equity

 

 

$

263,502

 

 

$

(1,243

)

 

$

262,259

 

 

$

268,363

 

 

$

(4,904

)

 

$

263,459

 

 

$

256,009

 

 

$

(5,744

)

 

$

250,265

 

Description of restatement adjustments in the condensed consolidated balance sheets:

(i)
The $59 and $52 decreases in cash and cash equivalents as of June 30, 2023 and September 30, 2023, respectively, are related to the cash remeasurement adjustment for cash balances from certain foreign subsidiaries.
(ii)
The $540, $671 and $1,454 decreases in contract assets as of March 31, 2023, June 30, 2023, and September 30, 2023, respectively, are related to the correction of revenue recognition for Space Services and R&D Services Contracts.
(iii)
Adjustments to other current assets:
a.
The $1,301 decrease in other current assets as of March 31, 2023 is related to the fixed asset advance reclassified to property and equipment, net.
b.
The $203 decrease in other current assets as of June 30, 2023 resulted from a decrease of $1,478 from advances for fixed assets that have been reclassified from other current assets to property and equipment, partially offset by an increase of $1,275 from prepaid launch costs for customer-controlled satellites for one specific contract that have been reclassified from property and equipment to other current assets.
c.
The $4,929 increase in other current assets as of September 30, 2023 resulted from an increase of $5,985 from prepaid launch costs for customer-controlled satellites for one specific contract that have been reclassified from property and equipment to other current assets, partially offset by $1,056 of advances for fixed assets that have been reclassified from other current assets to property and equipment.
(iv)
Adjustments to property and equipment:
a.
The $598 increase in property and equipment as of March 31, 2023, resulted from an increase of $1,301 from advances for fixed assets that have been reclassified from other current assets to property and equipment, partially offset by $703 of construction costs for customer-controlled satellites for one specific contract being expensed as cost of revenue rather than capitalized into property and equipment.
b.
The $3,971 decrease in property and equipment as of June 30, 2023 resulted from a decrease of $4,174 from construction costs for customer-controlled satellites being expensed for one specific contract as cost of revenue rather than capitalized into property and equipment and a decrease of $1,275 from prepaid launch costs for such satellites that have been reclassified from property and equipment to other current assets, partially offset by an increase of $1,478 from advances for fixed assets that have been reclassified from other current assets to property and equipment.
c.
The $9,366 decrease in property and equipment as of June 30, 2023 resulted from a decrease of $5,985 from prepaid launch costs for such satellites that have been reclassified from property and equipment to other current assets and a decrease of $4,437 from construction costs for customer-controlled satellites for one specific contract being expensed as cost of revenue rather than capitalized into property and equipment, partially offset by an increase of $1,056 from advances for fixed assets that have been reclassified from other current assets to property and equipment.
(v)
The $199 increase in other long-term assets, including restricted cash as of September 30, 2023, is related to the correction of revenue recognition for Space Services and R&D Services Contracts.
(vi)
The $6,027, $5,390, and $9,871 increases in contract liabilities, current portion as of March 31, 2023, June 30, 2023, and September 30, 2023, respectively, are related to the correction of correct revenue recognition for Space Services and R&D Services Contracts, impacting contract liabilities, non-current.
(vii)
The $122 decrease in other accrued expense as of March 31, 2023 resulted from a decrease of $172 from a customer deposit balance reclassified to contract liabilities, noncurrent, partially offset by an increase of $50 for the Delaware franchise tax accrual. The $148 decrease in other accrued expenses as of June 30, 2023 resulted from a decrease of $168 for a customer deposit balance reclassified to contract liabilities, non-current, partially offset by an increase of $20 from the Delaware franchise tax accrual. The $318 decrease in other accrued expenses as of September 30, 2023 resulted from a decrease of $348 from a customer deposit balance reclassified to contract liabilities, non-current, partially offset by an increase of $30 from Delaware franchise tax accrual.
(viii)
Adjustments to contract liabilities, non-current:
a.
The $13,683 increase in contract liabilities, non-current as of March 31, 2023 resulted from an increase of $12,965 related to the correction of revenue recognition for Space Services and R&D Services Contracts, a $546 balance of contract liabilities, non-current that was historically included within other long-term liabilities, and a $172 increase for a customer deposit balance reclassified from other accrued expense .
b.
The $12,437 increase in contract liabilities, non-current as of June 30, 2023, resulted from an increase of $11,865 related to correction of revenue recognition for Space Services and R&D Services Contracts, a $404 balance of contract liabilities, non-current that was historically included within other long-term liabilities, and a $168 increase for a customer deposit balance reclassified from other accrued expense.
c.
The $13,049 increase in contract liabilities, non-current as of September 30, 2023, resulted from an increase of $11,949 related to the correction of revenue recognition for Space Services and R&D Services Contracts, a $752 balance of contract liabilities, non-current that was historically included within other long-term liabilities, and a $348 increase for a customer deposit balance reclassified from other accrued expense.
(ix)
The $285, $90 and $167 decreases in deferred income tax liabilities as of March 31, 2023, June 30, 2023, and September 30, 2023, respectively, are related to impact to income tax provision as a result of the revenue adjustments.
(x)
The $547, $404, and $752 decreases in other long-term liabilities as of March 31, 2023, June 30, 2023, and September 30, 2023, respectively, represent the non-current contract liabilities balance that was historically included in other long-term liabilities but is now presented in its own line (see restatement adjustment description in (viii)).
(xi)
The $64, $80, and $284 decreases in accumulated other comprehensive loss as of March 31, 2023, June 30, 2023, and September 30, 2023, respectively, are related to the misstatements’ impact on cumulative foreign currency translation loss.
(xii)
The $20,063, $22,169, and $27,711 increases in accumulated deficit as of March 31, 2023, June 30, 2023, and September 30, 2023, respectively, are related to the cumulative adjustments made in the condensed consolidated statements of operations.

 

 

 

As of March 31, 2022

 

 

As of June 30, 2022

 

 

As of September 30, 2022

 

Unaudited Condensed Consolidated Balance Sheets

 

Notes

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

 

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

 

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

Contract assets

 

(i)

$

3,630

 

 

$

(616

)

 

$

3,014

 

 

$

4,402

 

 

$

(936

)

 

$

3,466

 

 

$

3,360

 

 

$

(146

)

 

$

3,214

 

Total current assets

 

 

$

111,494

 

 

$

(616

)

 

$

110,878

 

 

$

120,371

 

 

$

(936

)

 

$

119,435

 

 

$

109,456

 

 

$

(146

)

 

$

109,310

 

Property and equipment, net

 

(ii)

$

52,071

 

 

$

-

 

 

$

52,071

 

 

$

55,073

 

 

$

-

 

 

$

55,073

 

 

$

52,708

 

 

$

(38

)

 

$

52,670

 

Other long-term assets,
   including restricted cash

 

(iii)

$

11,767

 

 

$

120

 

 

$

11,887

 

 

$

11,114

 

 

$

106

 

 

$

11,220

 

 

$

9,936

 

 

$

164

 

 

$

10,100

 

Total assets

 

 

$

283,378

 

 

$

(496

)

 

$

282,882

 

 

$

288,921

 

 

$

(830

)

 

$

288,091

 

 

$

266,615

 

 

$

(20

)

 

$

266,595

 

Contract liabilities,
   current portion

 

(iv)

$

6,483

 

 

$

4,909

 

 

$

11,392

 

 

$

12,080

 

 

$

5,657

 

 

$

17,737

 

 

$

14,244

 

 

$

6,050

 

 

$

20,294

 

Other accrued expenses

 

(v)

$

7,742

 

 

$

143

 

 

$

7,885

 

 

$

8,301

 

 

$

164

 

 

$

8,465

 

 

$

7,881

 

 

$

220

 

 

$

8,101

 

Total current liabilities

 

 

$

26,042

 

 

$

5,052

 

 

$

31,094

 

 

$

28,527

 

 

$

5,821

 

 

$

34,348

 

 

$

32,796

 

 

$

6,270

 

 

$

39,066

 

Contract liabilities,
   non-current

 

(vi)

$

-

 

 

$

7,900

 

 

$

7,900

 

 

$

-

 

 

$

8,785

 

 

$

8,785

 

 

$

-

 

 

$

10,432

 

 

$

10,432

 

Deferred income tax liabilities

 

(vii)

$

813

 

 

$

(19

)

 

$

794

 

 

$

757

 

 

$

(8

)

 

$

749

 

 

$

700

 

 

$

(44

)

 

$

656

 

Other long-term liabilities

 

(viii)

$

1,761

 

 

$

(1,753

)

 

$

8

 

 

$

1,148

 

 

$

(1,140

)

 

$

8

 

 

$

541

 

 

$

(533

)

 

$

8

 

Total liabilities

 

 

$

100,177

 

 

$

11,180

 

 

$

111,357

 

 

$

142,898

 

 

$

13,458

 

 

$

156,356

 

 

$

144,275

 

 

$

16,125

 

 

$

160,400

 

Accumulated other
   comprehensive
   income (loss)

 

(ix)

$

2,591

 

 

$

99

 

 

$

2,690

 

 

$

296

 

 

$

181

 

 

$

477

 

 

$

(4,676

)

 

$

257

 

 

$

(4,419

)

Accumulated deficit

 

(x)

$

(261,028

)

 

$

(11,775

)

 

$

(272,803

)

 

$

(299,293

)

 

$

(14,469

)

 

$

(313,762

)

 

$

(321,104

)

 

$

(16,402

)

 

$

(337,506

)

Total stockholders’
   equity

 

 

$

183,201

 

 

$

(11,676

)

 

$

171,525

 

 

$

146,023

 

 

$

(14,288

)

 

$

131,735

 

 

$

122,340

 

 

$

(16,145

)

 

$

106,195

 

Total liabilities and
   stockholders’ equity

 

 

$

283,378

 

 

$

(496

)

 

$

282,882

 

 

$

288,921

 

 

$

(830

)

 

$

288,091

 

 

$

266,615

 

 

$

(20

)

 

$

266,595

 

 

Description of restatement adjustments in the condensed consolidated balance sheets:

(i)
The $616, $936 and $146 decreases in contract assets as of March 31, 2022, June 30, 2022, and September 30, 2022, respectively, are related to the correction of revenue recognition for Space Services and R&D Services Contracts.
(ii)
The $38 decrease in property and equipment as of September 30, 2022 is related to construction costs for customer-controlled satellites being expensed as cost of revenue rather than capitalized into property and equipment.
(iii)
The $120, $106, and $164 increases in other long-term assets, including restricted cash, as of March 31, 2022, June 30, 2022, and September 30, 2022, respectively, are related to the correction of revenue recognition for Space Services and R&D Services Contracts.
(iv)
The $4,909 increase in contract liabilities, current, as of March 31, 2022 resulted from an increase of $4,740 related to the correction of revenue recognition for Space Services and R&D Services Contracts and an increase of $169 from a customer deposit balance reclassified from other accrued expense. The $5,657 and $6,050 increases in contract liabilities, current as of June 30, 2022 and September 30, 2022, respectively, resulted from the correction of revenue recognition for Space Services and R&D Services Contracts.
(v)
The $143 increase in other accrued expenses as of March 31, 2022 resulted from an increase of $312 for Delaware franchise tax accrual, partially offset by a decrease of $169 from a customer deposit balance reclassified to contract liabilities, non-current. The $164 increase in other accrued expenses as of June 30, 2022 resulted from an increase of $329 from the Delaware franchise tax accrual, partially offset by a decrease of $165 from a customer deposit balance reclassified to contract liabilities, non-current. The $220 increase in other accrued expenses as of June 30, 2022 resulted from an increase of $379 from the Delaware franchise tax accrual, partially offset by a decrease of $159 from a customer deposit balance reclassified to contract liabilities, non-current.
(vi)
Adjustments to contract liabilities, non-current:
a.
The $7,900 increase in contract liabilities, non-current as of March 31, 2022 resulted from an increase of $6,147 related to the correction of revenue recognition for Space Services and R&D Services Contracts and a $1,753 balance of contract liabilities, non-current that was historically included within other long-term liabilities.
b.
The $8,785 increase in contract liabilities, non-current as of June 30, 2022 resulted from an increase of $7,480 related to the correction of revenue recognition for Space Services and R&D Services Contracts, a $1,140 balance of contract liabilities, non-current that was historically included within other long-term liabilities, and a $165 increase from a customer deposit balance reclassified from other accrued expense.
c.
The $10,432 increase in contract liabilities, non-current as of September 30, 2022 resulted from an increase of $9,740 related to the correction of revenue recognition for Space Services and R&D Services Contracts and a $533 balance of contract liabilities, non-current that was historically included within other long-term liabilities, and a $159 increase from a customer deposit balance reclassified from other accrued expense.
(vii)
The $19, $8 and $44 decreases in deferred income tax liabilities as of March 31, 2022, June 30, 2022, and September 30, 2022, respectively, are related to the impact to income tax provision as a result of the revenue adjustments.
(viii)
The $1,753, $1,140, and $533 decreases in other long-term liabilities as of March 31, 2022, June 30, 2022, and September 30, 2022, respectively, are related to the contract liabilities, non-current balance that was historically included in other long-term liabilities but now has been presented in its own line (see restatement adjustment description (vi)).
(ix)
The $99, $181, and $257 increases in accumulated other comprehensive income as of March 31, 2022, June 30, 2022, and September 30, 2022, respectively, are related to the misstatements’ impact on cumulative foreign currency translation loss.
(x)
The $11,775, $14,469, and $16,402 increases in accumulated deficit as of March 31, 2022, June 30, 2022, and September 30, 2022, respectively, are related to the cumulative adjustments made in the consolidated statements of operations.
Schedule of Consolidated Statements of Operations

 

 

 

Three Months Ended March 31, 2023

 

 

Three Months Ended June 30, 2023

 

 

Three Months Ended September 30, 2023

 

Unaudited Condensed Consolidated Statements of Operations

 

Notes

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

 

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

 

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

Revenue

 

(i)

$

24,168

 

 

$

(951

)

 

$

23,217

 

 

$

26,493

 

 

$

1,572

 

 

$

28,065

 

 

$

27,317

 

 

$

(5,191

)

 

$

22,126

 

Cost of revenue

 

(ii)

$

10,360

 

 

$

3,009

 

 

$

13,369

 

 

$

9,633

 

 

$

5,612

 

 

$

15,245

 

 

$

9,555

 

 

$

3,085

 

 

$

12,640

 

Gross profit

 

 

$

13,808

 

 

$

(3,960

)

 

$

9,848

 

 

$

16,860

 

 

$

(4,040

)

 

$

12,820

 

 

$

17,762

 

 

$

(8,276

)

 

$

9,486

 

Research and development

 

(iii)

$

9,663

 

 

$

(2,345

)

 

$

7,318

 

 

$

9,752

 

 

$

(2,097

)

 

$

7,655

 

 

$

10,538

 

 

$

(2,607

)

 

$

7,931

 

General and administrative

 

(iv)

$

11,770

 

 

$

53

 

 

$

11,823

 

 

$

10,899

 

 

$

(181

)

 

$

10,718

 

 

$

11,049

 

 

$

174

 

 

$

11,223

 

Total operating expenses

 

 

$

28,283

 

 

$

(2,292

)

 

$

25,991

 

 

$

27,852

 

 

$

(2,278

)

 

$

25,574

 

 

$

28,736

 

 

$

(2,433

)

 

$

26,303

 

Loss from operations

 

 

$

(14,475

)

 

$

(1,668

)

 

$

(16,143

)

 

$

(10,992

)

 

$

(1,762

)

 

$

(12,754

)

 

$

(10,974

)

 

$

(5,843

)

 

$

(16,817

)

Foreign exchange loss

 

(v)

$

1,024

 

 

$

(11

)

 

$

1,013

 

 

$

(435

)

 

$

(51

)

 

$

(486

)

 

$

(1,829

)

 

$

(11

)

 

$

(1,840

)

Other (expense) income, net

 

(vi)

$

(762

)

 

$

451

 

 

$

(311

)

 

$

(1,038

)

 

$

(92

)

 

$

(1,130

)

 

$

(620

)

 

$

233

 

 

$

(387

)

Total other (expense) income, net

 

 

$

(2,929

)

 

$

440

 

 

$

(2,489

)

 

$

(5,061

)

 

$

(143

)

 

$

(5,204

)

 

$

(6,743

)

 

$

222

 

 

$

(6,521

)

Loss before income taxes

 

 

$

(17,404

)

 

$

(1,228

)

 

$

(18,632

)

 

$

(16,053

)

 

$

(1,905

)

 

$

(17,958

)

 

$

(17,717

)

 

$

(5,621

)

 

$

(23,338

)

Income tax provision

 

(vii)

$

269

 

 

$

(246

)

 

$

23

 

 

$

213

 

 

$

201

 

 

$

414

 

 

$

78

 

 

$

(79

)

 

$

(1

)

Net loss

 

 

$

(17,673

)

 

$

(982

)

 

$

(18,655

)

 

$

(16,266

)

 

$

(2,106

)

 

$

(18,372

)

 

$

(17,795

)

 

$

(5,542

)

 

$

(23,337

)

Basic and diluted net
   loss per share (1)

 

 

$

(0.98

)

 

$

(0.05

)

 

$

(1.03

)

 

$

(0.88

)

 

$

(0.11

)

 

$

(0.99

)

 

$

(0.86

)

 

$

(0.26

)

 

$

(1.12

)

Weighted-average
  shares used in
   computing basic
   and diluted net
   loss per share (1)

 

 

 

18,096,363

 

 

 

-

 

 

 

18,096,363

 

 

 

18,468,949

 

 

 

-

 

 

 

18,468,949

 

 

 

20,756,394

 

 

 

-

 

 

 

20,756,394

 

(1) The shares of the Company's common stock and the per share amounts for the three months ended March 31, 2023 and June 30, 2023 have been retroactively adjusted to reflect the 1-for-8 reverse stock split (Note 1).

Description of restatement adjustments in the condensed consolidated statements of operations:

(i)
The $951 decrease in revenue for the three months ended March 31, 2023, the $1,572 increase in revenue for the three months ended June 30, 2023 and the $5,191 decrease in revenue for the three months ended September 30, 2023, respectively, are related to the correction of revenue recognition for Space Services and R&D Services Contracts.
(ii)
Adjustments to cost of revenue:
a.
The $3,009 increase in cost of revenue for the three months ended March 31, 2023 resulted from an increase of $2,345 from costs associated with R&D Services Contracts being reclassified from research and development expense to cost of revenue, an increase of $642 from construction costs for customer-controlled satellites for one specific contract being expensed to cost of revenue rather than capitalized into property and equipment, and an increase of $22 from the reclassification of supply chain department costs from general and administrative expense to cost of revenue.
b.
The $5,612 increase in cost of revenue for the three months ended June 30, 2023 resulted from an increase of $3,456 from construction costs for customer-controlled satellites for one specific contract being expensed to cost of revenue rather than capitalized into property and equipment, an increase of $2,097 from costs associated with R&D
Services Contracts being reclassified from research and development expense to cost of revenue, and an increase of $59 from the reclassification of supply chain department costs from general and administrative expense to cost of revenue.
The $3,085 increase in cost of revenue for the three months ended September 30, 2023 resulted from an increase of $2,607 from costs associated with R&D Services Contracts being reclassified from research and development expense to cost of revenue, an increase of $407 from construction costs for customer-controlled satellites for one specific contract being expensed to cost of revenue rather than capitalized into property and equipment, and an increase of $71 from the reclassification of supply chain department costs from general and administrative expense to cost of revenue.
(iii)
The $2,345, $2,097, and $2,607 decreases in research and development for the three months ended March 31, 2023, June 30, 2023, and September 30, 2023, respectively, are related to costs associated with R&D Services Contracts being reclassified from research and development to cost of revenue.
(iv)
Adjustments to general and administrative:
a.
The $53 increase in general and administrative for the three months ended March 31, 2023 resulted from an increase of $451 from the other state taxes reclassified from other expense, net, partially offset by a decrease of $376 from the Delaware franchise tax accrual and reclassification and a decrease of $22 for supply chain department costs reclassified to cost of revenue.
b.
The $181 decrease in general and administrative for the three months ended June 30, 2023 resulted from a decrease of $92 for the other state taxes reclassified from other expense, net, a decrease of $59 for the supply chain department costs reclassified to cost of revenue, and a decrease of $30 for the Delaware franchise tax accrual and reclassification.
c.
The $174 increase in general and administrative expense for the three months ended September 30, 2023 resulted from an increase of $235 from vendor dispute settlement reclassified from other expense, net and an increase of $12 from Delaware franchise tax accrual and reclassification, partially offset by a decrease of $71 from supply chain department costs reclassified to cost of revenue and a decrease of $2 from the other state taxes reclassified from other expense, net.
(v)
The $11, $51, and $11 additional foreign exchange losses for the three months ended March 31, 2023, June 30, 2023 and September 30 , 2023, respectively, are related to the correction of revenue and cash remeasurement adjustment.
(vi)
Adjustments to other expense, net:
a.
The $451 decrease in other expense, net for the three months ended March 31, 2023 is related to the other state taxes reclassified to general and administrative.
b.
The $92 increase in other expense, net for the three months ended June 30, 2023 is related to the reclassification of other state tax to general and administrative expense.
c.
The $233 decrease in other expense, net for the three months ended September 30 2023 resulted from a decrease of $235 from a vendor dispute settlement reclassified to general and administrative, partially offset by an increase of $2 for the other state taxes reclassified to general and administrative.
(vii)
The $246 decrease, $201 increase and $79 decrease in income tax provision for the three months ended March 31, 2023, June 30, 2023 and September 30, 2023, respectively, are related to the impact to income tax provision as a result of the revenue adjustments.

 

 

 

 

 

Six Months Ended June 30, 2023

 

 

Nine Months Ended September 30, 2023

 

 

Three Months Ended December 31, 2023

 

Unaudited Condensed Consolidated Statements of Operations

 

Notes

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

 

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

 

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

Revenue

 

(i)

$

50,661

 

 

$

621

 

 

$

51,282

 

 

$

77,978

 

 

$

(4,570

)

 

$

73,408

 

 

$

27,725

 

 

$

(3,521

)

 

$

24,204

 

Cost of revenue

 

(ii)

$

19,993

 

 

$

8,621

 

 

$

28,614

 

 

$

29,548

 

 

$

11,706

 

 

$

41,254

 

 

$

12,886

 

 

$

4,884

 

 

$

17,770

 

Gross profit

 

 

$

30,668

 

 

$

(8,000

)

 

$

22,668

 

 

$

48,430

 

 

$

(16,276

)

 

$

32,154

 

 

$

14,839

 

 

$

(8,405

)

 

$

6,434

 

Research and development

 

(iii)

$

19,415

 

 

$

(4,442

)

 

$

14,973

 

 

$

29,953

 

 

$

(7,049

)

 

$

22,904

 

 

$

8,970

 

 

$

(4,224

)

 

$

4,746

 

General and administrative

 

(iv)

$

22,669

 

 

$

(128

)

 

$

22,541

 

 

$

33,718

 

 

$

46

 

 

$

33,764

 

 

$

8,776

 

 

$

(541

)

 

$

8,235

 

Allowance for current expected credit loss on
   notes receivable

 

(v)

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

1,218

 

 

$

1,218

 

Total operating expenses

 

 

$

56,135

 

 

$

(4,570

)

 

$

51,565

 

 

$

84,871

 

 

$

(7,003

)

 

$

77,868

 

 

$

23,047

 

 

$

(3,547

)

 

$

19,500

 

Loss from operations

 

 

$

(25,467

)

 

$

(3,430

)

 

$

(28,897

)

 

$

(36,441

)

 

$

(9,273

)

 

$

(45,714

)

 

$

(8,208

)

 

$

(4,858

)

 

$

(13,066

)

Foreign exchange loss

 

(vi)

$

589

 

 

$

(62

)

 

$

527

 

 

$

(1,240

)

 

$

(73

)

 

$

(1,313

)

 

$

2,740

 

 

$

97

 

 

$

2,837

 

Other (expense) income, net

 

(vii)

$

(1,800

)

 

$

359

 

 

$

(1,441

)

 

$

(2,420

)

 

$

592

 

 

$

(1,828

)

 

$

(143

)

 

$

(301

)

 

$

(444

)

Total other income (expense), net

 

 

$

(7,990

)

 

$

297

 

 

$

(7,693

)

 

$

(14,733

)

 

$

519

 

 

$

(14,214

)

 

$

(4,502

)

 

$

(204

)

 

$

(4,706

)

Loss before income taxes

 

 

$

(33,457

)

 

$

(3,133

)

 

$

(36,590

)

 

$

(51,174

)

 

$

(8,754

)

 

$

(59,928

)

 

$

(12,710

)

 

$

(5,062

)

 

$

(17,772

)

Income tax provision

 

(viii)

$

482

 

 

$

(45

)

 

$

437

 

 

$

560

 

 

$

(124

)

 

$

436

 

 

$

(488

)

 

$

(90

)

 

$

(578

)

Net loss

 

 

$

(33,939

)

 

$

(3,088

)

 

$

(37,027

)

 

$

(51,734

)

 

$

(8,630

)

 

$

(60,364

)

 

$

(12,222

)

 

$

(4,972

)

 

$

(17,194

)

Basic and diluted net
   loss per share (1)

 

 

$

(1.86

)

 

$

(0.17

)

 

$

(2.03

)

 

$

(2.71

)

 

$

(0.45

)

 

$

(3.16

)

 

$

(0.58

)

 

$

(0.24

)

 

$

(0.82

)

Weighted-average
  shares used in
   computing basic
   and diluted net
   loss per share (1)

 

 

 

18,283,958

 

 

 

-

 

 

 

18,283,958

 

 

 

19,117,078

 

 

 

-

 

 

 

19,117,078

 

 

 

20,953,695

 

 

 

-

 

 

 

20,953,695

 

(1) The shares of the Company's common stock and the per share amounts for the six months ended June 30, 2023 have been retroactively adjusted to reflect the 1-for-8 reverse stock split (Note 1).

Description of restatement adjustments in the condensed consolidated statements of operations:

(i)
The $621 increase in revenue for the six months ended June 30, 2023, the $4,570 decrease for the nine months ended September 30, 2023 and the $3,521 decrease in revenue for the three months ended December 31, 2023, respectively, relates to the correction of revenue recognition for Space Services and R&D Services Contracts.
(ii)
Adjustments to cost of revenue:
a.
The $8,621 increase in cost of revenue for the six months ended June 30, 2023 resulted from an increase of $4,442 from costs associated with R&D Services Contracts being reclassified from research and development to cost of revenue, an increase of $4,100 from construction costs for customer-controlled satellites for one specific contract being expensed to cost of revenue rather than capitalized into property and equipment, and an increase of $79 from the reclassification of supply chain department costs from general and administrative to cost of revenue.
b.
The $11,706 increase in cost of revenue for the nine months ended September 30, 2023 resulted from an increase of $7,049 from costs associated with R&D Services Contracts being reclassified from research and development to cost of revenue, an increase of $4,507 from construction costs for customer-controlled satellites for one specific contract being expensed to cost of revenue rather than capitalized into property and equipment, and an increase of $150 from the reclassification of supply chain department costs from general and administrative to cost of revenue.
c.
The $4,884 increase in cost of revenue for the three months ended December 31, 2023 resulted from an increase of $4,224 from costs associated with R&D Services Contracts being reclassified from research and development to cost of revenue, an increase of $412 from construction costs for customer-controlled satellites for one specific contract being expensed to cost of revenue rather than capitalized into property and equipment, and an increase of $248 from the reclassification of supply chain department costs from general and administrative to cost of revenue.
(iii)
The $4,442, $7,049, and $4,224 decreases in research and development expense for the for the six months ended June 30, 2023, the nine months ended September 30, 2023, and the three months ended December 31, 2023, respectively, is related to costs associated with R&D Services Contracts being reclassified from research and development expense to cost of revenue.
(iv)
Adjustments to general and administrative:
a.
The $128 decrease in general and administrative for the six months ended June 30, 2023 resulted from a decrease of $408 from the Delaware franchise tax accrual and reclassification and a decrease of $79 from the supply chain department costs reclassified to cost of revenue, partially offset by an increase of $359 from the other state taxes reclassified from other expense, net.
b.
The $46 increase in general and administrative for the nine months ended September 30, 2023 resulted from increases of $357 and $235 from the other state taxes and vendor dispute settlement reclassified from other expense, net, respectively, partially offset by a decrease of $396 from the Delaware franchise tax accrual and reclassification and a decrease of $150 from the supply chain department costs reclassified to cost of revenue.
c.
The $541 decrease in general and administrative expense for the three months ended December 31, 2023 resulted from a decrease of $301 from the other state taxes reclassified from other expense, net, and a decrease of $248 from the supply chain department costs reclassified to cost of revenue, partially offset by an increase of $8 from the Delaware franchise tax accrual and reclassification.
(v)
The $1,218 increase in allowance for current expected credit loss on notes receivable for the three months ended December 31, 2023 is related to the allowance for current expected credit loss related to a $4,500 note receivable issued to a customer.
(vi)
The $62 decrease, $73 decrease, and $97 increase in foreign exchange loss for the six months ended June 30, 2023, nine months ended September 30, 2023, and three months ended December 31, 2023, respectively, are related to the correction of revenue and cash remeasurement adjustment.
(vii)
Adjustments to other expense, net:
a.
The $359 decrease and $301 increase in other expense, net for the six months ended June 30, 2023 and three months ended December 31, 2023, respectively, are related to the other state taxes reclassified to general and administrative.
b.
The $592 decrease in other expense, net for the nine months ended September 30, 2023 resulted from $357 of other state taxes and a $235 vendor dispute settlement reclassified to general and administrative expense.
(viii)
The $45 decrease, $124 decrease and $90 decrease in income tax provisions for the six months ended June 30, 2023, nine months ended September 30, 2023, and three months ended December 31, 2023, respectively, are related to the impact to income tax provision as a result of the revenue adjustments.
Schedule of Consolidated Statements of Comprehensive Loss

 

 

 

Three Months Ended March 31, 2023

 

 

Three Months Ended June 30, 2023

 

 

Three Months Ended September 30, 2023

 

Unaudited Condensed Consolidated Statements of Comprehensive Loss

 

Notes

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

 

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

 

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

Net loss

 

 

$

(17,673

)

 

$

(982

)

 

$

(18,655

)

 

$

(16,266

)

 

$

(2,106

)

 

$

(18,372

)

 

$

(17,795

)

 

$

(5,542

)

 

$

(23,337

)

Foreign currency
   translation
   adjustments

 

(i)

$

(1,589

)

 

$

(25

)

 

$

(1,614

)

 

$

4,341

 

 

$

16

 

 

$

4,357

 

 

$

(1,779

)

 

$

204

 

 

$

(1,575

)

Comprehensive loss

 

 

$

(19,218

)

 

$

(1,007

)

 

$

(20,225

)

 

$

(11,932

)

 

$

(2,090

)

 

$

(14,022

)

 

$

(19,576

)

 

$

(5,338

)

 

$

(24,914

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2023

 

 

Nine Months Ended September 30, 2023

 

 

Three Months Ended December 31, 2023

 

Unaudited Condensed Consolidated Statements of Comprehensive Loss

 

Notes

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

 

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

 

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

Net loss

 

 

$

(33,939

)

 

$

(3,088

)

 

$

(37,027

)

 

$

(51,734

)

 

$

(8,630

)

 

$

(60,364

)

 

$

(12,222

)

 

$

(4,972

)

 

$

(17,194

)

Foreign currency
   translation
   adjustments

 

(ii)

$

2,752

 

 

$

(9

)

 

$

2,743

 

 

$

973

 

 

$

195

 

 

$

1,168

 

 

$

1,505

 

 

$

(355

)

 

$

1,150

 

Comprehensive loss

 

 

$

(31,150

)

 

$

(3,097

)

 

$

(34,247

)

 

$

(50,726

)

 

$

(8,435

)

 

$

(59,161

)

 

$

(10,718

)

 

$

(5,327

)

 

$

(16,045

)

Description of restatement adjustments in the condensed consolidated statements of comprehensive loss:

(i)
The $25 foreign currency translation loss, $16 foreign currency translation gain, and $204 foreign currency translation gain for the three months ended March 31, 2023, June 30, 2023, and September 30, 2023, respectively, are related to the foreign currency translation impact of consolidated statements of operations adjustments (i) to (v) above.
(ii)
The $9 foreign currency translation loss, $195 foreign currency translation gain and $355 foreign currency translation loss for the six months ended June 30, 2023, the nine months ended September 30, 2023, and the three months ended December 31, 2023, respectively, are related to the foreign currency translation impact of consolidated statements of operations adjustments (i) to (v) above.
Schedule of Consolidated Statements of Cash Flows

 

 

 

Three Months Ended March 31, 2023

 

 

Six Months Ended June 30, 2023

 

 

Nine Months Ended September 30, 2023

 

Unaudited Condensed Consolidated Statements of Cash Flows

 

Notes

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

 

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

 

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

Net loss

 

 

$

(17,673

)

 

$

(982

)

 

$

(18,655

)

 

$

(33,939

)

 

$

(3,088

)

 

$

(37,027

)

 

$

(51,734

)

 

$

(8,630

)

 

$

(60,364

)

Other, net

 

(i)

$

(110

)

 

$

(240

)

 

$

(350

)

 

$

(281

)

 

$

8

 

 

$

(273

)

 

$

(448

)

 

$

(78

)

 

$

(526

)

Change in contract
   assets

 

(ii)

$

(855

)

 

$

68

 

 

$

(787

)

 

$

(1,506

)

 

$

199

 

 

$

(1,307

)

 

$

(1,146

)

 

$

801

 

 

$

(345

)

Other current assets

 

(iii)

$

117

 

 

$

(805

)

 

$

(688

)

 

$

263

 

 

$

(1,917

)

 

$

(1,654

)

 

$

(177

)

 

$

(7,219

)

 

$

(7,396

)

Change in contract
   liabilities

 

(iv)

$

1,259

 

 

$

895

 

 

$

2,154

 

 

$

5,467

 

 

$

(819

)

 

$

4,648

 

 

$

6,977

 

 

$

4,014

 

 

$

10,991

 

Other accrued expenses

 

(v)

$

(548

)

 

$

(372

)

 

$

(920

)

 

$

766

 

 

$

(407

)

 

$

359

 

 

$

(536

)

 

$

(589

)

 

$

(1,125

)

Net cash used in
   operating activities

 

 

$

(11,290

)

 

$

(1,436

)

 

$

(12,726

)

 

$

(22,591

)

 

$

(6,024

)

 

$

(28,615

)

 

$

(27,733

)

 

$

(11,701

)

 

$

(39,434

)

Purchase of property
   and equipment

 

(vi)

$

(4,649

)

 

$

1,436

 

 

$

(3,213

)

 

$

(12,677

)

 

$

6,024

 

 

$

(6,653

)

 

$

(23,694

)

 

$

11,701

 

 

$

(11,993

)

Net cash used in
   investing activities

 

 

$

(6,957

)

 

$

1,436

 

 

$

(5,521

)

 

$

(10,122

)

 

$

6,024

 

 

$

(4,098

)

 

$

(19,946

)

 

$

11,701

 

 

$

(8,245

)

Effect of foreign currency translation on cash,
   cash equivalents and restricted cash

 

(vii)

$

(1,846

)

 

$

-

 

 

$

(1,846

)

 

$

597

 

 

$

(59

)

 

$

538

 

 

$

2,343

 

 

$

(52

)

 

$

2,291

 

Cash, cash equivalents
   and restricted cash -
   Ending balance

 

 

$

47,362

 

 

$

-

 

 

$

47,362

 

 

$

43,627

 

 

$

(59

)

 

$

43,568

 

 

$

30,407

 

 

$

(52

)

 

$

30,355

 

 

Description of restatement adjustments in the condensed consolidated statements of cash flows:

(i)
The $240, $8, and $78 adjustments to change in other, net for the three months ended March 31, 2023, six months ended June 30, 2023, and nine months ended September 30, 2023, respectively, represent the change in deferred income tax liabilities related to the impact to income tax provision as a result of the revenue adjustments.
(ii)
The $68, $199, and $801 adjustments to change in contract assets for the three months ended March 31, 2023, six months ended June 30, 2023, and nine months ended September 30, 2023, respectively, are related to the impact to short-term and long-term balances of contract assets from the correction of revenue recognition for Space Services and R&D Services Contracts.
(iii)
Adjustments to change in other current assets:
a.
The $805 increase in other current assets for the three months ended March 31, 2023, is related to the net change in advances for fixed assets balance reclassified from other current assets into property and equipment.
b.
The $1,917 increase in other current assets for the six months ended June 30, 2023 resulted from an increase of $1,274 in prepaid launch costs for customer-controlled satellites for one specific contract that is capitalized into other current assets instead of property and equipment and an increase of $643 from the net change in advances for fixed assets balance reclassified out of other current assets into property and equipment.
c.
The $7,219 increase in other current assets for the nine months ended September 30, 2023 resulted from an increase of $5,985 in prepaid launch costs for customer-controlled satellites for one specific contract that is capitalized into other current assets instead of property and equipment, and an increase of $1,234 of net change in advances for fixed assets that were reclassified out of other current assets into property and equipment.
(iv)
Adjustments to change in contract liabilities:
a.
The $895 adjustment to change in contract liabilities for the three months ended March 31, 2023 is related to the correction of revenue recognition for Space Services and R&D Services Contracts.
b.
The $819 adjustment to change in contract liabilities for the six months ended June 30, 2023 is related to the correction of revenue recognition for Space Services and R&D Services Contracts.
c.
The $4,014 adjustment to change in contract liabilities for the nine months ended September 30, 2023 resulted from a $3,838 impact in contract liabilities from the correction of revenue recognition for Space Services and R&D Services Contracts and $176 from the change in the customer deposit balance reclassified from other accrued expense to contract liabilities, non-current.
(v)
The $372 adjustment to change in other accrued expense for the three months ended March 31, 2023 is related to the Delaware franchise tax accrual. The $407 adjustment to change in other accrued expense for the six months ended June 30, 2023 is related to the Delaware franchise tax accrual. The $589 adjustment to change in other accrued expense for the nine months ended September 20, 2023 resulted from a $413 adjustment from Delaware franchise tax accrual and a $176 customer deposit reclassification.
(vi)
Adjustment to purchase of property and equipment:
a.
The $1,436 decrease in purchase of property and equipment for the three months ended March 31, 2023 resulted from a decrease of $825 from noncash addition to property and equipment from the prior period advances that was incorrectly reflected as current period’s cash purchase and a decrease of $611 in costs incurred to build the customer-controlled satellites for one specific contract being expensed rather than capitalized into the Company's property and equipment.
b.
The $6,024 decrease in purchase of property and equipment for the six months ended June 30, 2023 resulted from a decrease of $4,101 in costs incurred to build the customer-controlled satellites being for one specific contract being expensed rather than capitalized into the Company's property and equipment, a decrease of $1,275 from prepaid launch costs for the customer-controlled satellites being reclassified into other current assets rather than capitalized into the Company's property and equipment, and a decrease of $648 from noncash addition to property and equipment from the prior period advances that were incorrectly reflected as current period’s cash purchase.
c.
The $11,701 decrease in purchase of property and equipment for the nine months ended September 30, 2023 resulted from a decrease of $5,985 prepaid launch costs for the customer-controlled satellites for one specific contract being reclassified into other current assets rather than capitalized into the Company's property and equipment, a decrease of $4,646 in costs incurred to design/build the customer-controlled satellites being expensed
rather than capitalized into the Company's property and equipment and a decrease of $1,070 from noncash addition to property and equipment from the prior period advances that was incorrectly reflected as current period’s cash purchase.
(vii)
The $59 and $52 decreases in cash and cash equivalents as of June 30, 2023 and September 30, 2023, respectively, are related to the cash remeasurement adjustment for cash balances from certain foreign subsidiaries, which resulted in a $59 and $52 change in effect of foreign currency translation on cash, cash equivalents and restricted cash for the six months ended June 30, 2023 and the nine months ended September 30, 2023, respectively.