Quarterly report [Sections 13 or 15(d)]

Restatement of Previously Issued Financial Statements (Tables)

v3.25.0.1
Restatement of Previously Issued Financial Statements (Tables)
 3 Months Ended
Mar. 31, 2024
Condensed Financial Information Disclosure [Abstract]  
Schedule of Unaudited Condensed Consolidated Balance Sheet

 

 

 

 

As of March 31, 2024

 

Unaudited Condensed Consolidated Balance Sheet

 

Notes

 

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

Cash and cash equivalents

 

(i)

 

$

51,985

 

 

$

(254

)

 

$

51,731

 

Contract assets

 

(ii)

 

$

5,205

 

 

$

(218

)

 

$

4,987

 

Other current assets

 

(iii)

 

$

12,241

 

 

$

(3,116

)

 

$

9,125

 

Total current assets

 

 

 

$

93,780

 

 

$

(3,588

)

 

$

90,192

 

Property and equipment, net

 

(iv)

 

$

71,853

 

 

$

(12,253

)

 

$

59,600

 

Other long-term assets, including restricted cash

 

(v)

 

$

7,503

 

 

$

198

 

 

$

7,701

 

Total assets

 

 

 

$

267,972

 

 

$

(15,643

)

 

$

252,329

 

Contract liabilities, current portion

 

(vi)

 

$

22,617

 

 

$

(387

)

 

$

22,230

 

Other accrued expenses

 

(vii)

 

$

11,309

 

 

$

(184

)

 

$

11,125

 

Total current liabilities

 

 

 

$

41,942

 

 

$

(571

)

 

$

41,371

 

Contract liabilities, non-current

 

(viii)

 

$

-

 

 

$

19,259

 

 

$

19,259

 

Deferred income tax liabilities

 

(ix)

 

$

1,058

 

 

$

(263

)

 

$

795

 

Other long-term liabilities

 

(x)

 

$

1,221

 

 

$

(1,213

)

 

$

8

 

Total liabilities

 

 

 

$

182,662

 

 

$

17,212

 

 

$

199,874

 

Accumulated other comprehensive loss

 

(xi)

 

$

(6,234

)

 

$

116

 

 

$

(6,118

)

Accumulated deficit

 

(xii)

 

$

(427,859

)

 

$

(32,971

)

 

$

(460,830

)

Total stockholders’ equity

 

 

 

$

85,310

 

 

$

(32,855

)

 

$

52,455

 

Total liabilities and stockholders’ equity

 

 

 

$

267,972

 

 

$

(15,643

)

 

$

252,329

 

Description of restatement adjustments in the condensed consolidated balance sheets:

(i)
The $254 decrease in cash and cash equivalents as of March 31, 2024, is related to the cash remeasurement adjustment for cash balances from certain foreign subsidiaries.
(ii)
The $218 decrease in contract assets as of March 31, 2024, is related to adjustments to correct revenue recognition for Space Services and R&D Services Contracts.
(iii)
The $3,116 decrease in other current assets as of March 31, 2024, resulted from a decrease of $1,858 related to advances for fixed assets that have been reclassified from other current assets to other property and equipment and a decrease of $1,258 related to the allowance for current expected credit loss related to the note receivable issued to a customer recorded in other current assets.
(iv)
The $12,253 decrease in property and equipment as of March 31, 2024, resulted from a decrease of $14,111 related to 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 $1,858 of advances for fixed assets that have been reclassified from other current assets to property and equipment instead of other current assets.
(v)
The $198 increase in other long-term assets, including restricted cash as of March 31, 2024, is related to adjustments to long-term contract assets to correct revenue recognition for Space Services and R&D Services Contracts.
(vi)
The $387 decrease in contract liabilities, current portion as of March 31, 2024 is related to the correction of revenue recognition for Space Services and R&D Services Contracts.
(vii)
The $184 decrease in other accrued expenses as of March 31, 2024 resulted from a decrease of $182 related to a customer deposit balance reclassified from other accrued expense to contract liabilities, non-current, and a decrease of $52 from income tax provision change as a result of the revenue adjustments, partially offset by $50 Delaware franchise tax accrual.
(viii)
The $19,259 increase in contract liabilities, non-current as of March 31, 2024 resulted from an increase of $17,864 related to the correction of revenue recognition for Space Services and R&D Services Contracts, an increase of $1,213 from the historical balance of contract liabilities, non-current that was included within other long-term liabilities but now presented in its own line and an increase of $182 from a customer deposit balance reclassified to contract liabilities, non-current.
(ix)
The $263 decrease in deferred income tax liabilities as of March 31, 2024, is related to the impact to income tax provision as a result of the revenue adjustments.
(x)
The $1,213 decrease in other long-term liabilities as of March 31, 2024 represents the contract liabilities, non-current balance that was historically included in other long-term liabilities but is now presented in its own line.
(xi)
The $116 decrease in accumulated other comprehensive loss as of March 31, 2024, is related to the misstatements’ impact on cumulative foreign currency translation loss.
(xii)
The $32,971 increase in accumulated deficit as of March 31, 2024, is related to the cumulative adjustments made in the condensed consolidated statements of operations.
Schedule of Unaudited Condensed Consolidated Statements of Operations

 

 

 

 

Three Months Ended March 31, 2024

 

 

Three Months Ended March 31, 2023

 

Unaudited Condensed Consolidated Statements of Operations

 

Notes

 

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

 

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

Revenue

 

(i)

 

$

25,688

 

 

$

9,137

 

 

$

34,825

 

 

$

24,168

 

 

$

(951

)

 

$

23,217

 

Cost of revenue

 

(ii)

 

$

12,546

 

 

$

13,050

 

 

$

25,596

 

 

$

10,360

 

 

$

3,009

 

 

$

13,369

 

Gross profit

 

 

 

$

13,142

 

 

$

(3,913

)

 

$

9,229

 

 

$

13,808

 

 

$

(3,960

)

 

$

9,848

 

Research and development

 

(iii)

 

$

9,909

 

 

$

(3,872

)

 

$

6,037

 

 

$

9,663

 

 

$

(2,345

)

 

$

7,318

 

General and administrative

 

(iv)

 

$

9,818

 

 

$

26

 

 

$

9,844

 

 

$

11,770

 

 

$

53

 

 

$

11,823

 

Allowance for current expected credit loss on notes receivable

 

(v)

 

$

-

 

 

$

40

 

 

$

40

 

 

$

-

 

 

$

-

 

 

$

-

 

Total operating expenses

 

 

 

$

25,023

 

 

$

(3,806

)

 

$

21,217

 

 

$

28,283

 

 

$

(2,292

)

 

$

25,991

 

Loss from operations

 

 

 

$

(11,881

)

 

$

(107

)

 

$

(11,988

)

 

$

(14,475

)

 

$

(1,668

)

 

$

(16,143

)

Foreign exchange (loss) gain

 

(vi)

 

$

(1,538

)

 

$

(248

)

 

$

(1,786

)

 

$

1,024

 

 

$

(11

)

 

$

1,013

 

Other (expense) income, net

 

(vii)

 

$

(551

)

 

$

17

 

 

$

(534

)

 

$

(762

)

 

$

451

 

 

$

(311

)

Total other income (expense), net

 

 

 

$

(13,334

)

 

$

(231

)

 

$

(13,565

)

 

$

(2,929

)

 

$

440

 

 

$

(2,489

)

Loss before income taxes

 

 

 

$

(25,215

)

 

$

(338

)

 

$

(25,553

)

 

$

(17,404

)

 

$

(1,228

)

 

$

(18,632

)

Income tax (benefit) provision

 

(viii)

 

$

41

 

 

$

(50

)

 

$

(9

)

 

$

269

 

 

$

(246

)

 

$

23

 

Net loss

 

 

 

$

(25,256

)

 

$

(288

)

 

$

(25,544

)

 

$

(17,673

)

 

$

(982

)

 

$

(18,655

)

Basic and diluted net loss per share (1)

 

 

 

$

(1.16

)

 

$

(0.01

)

 

$

(1.17

)

 

$

(0.98

)

 

$

(0.05

)

 

$

(1.03

)

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

 

 

 

 

21,813,045

 

 

 

-

 

 

 

21,813,045

 

 

 

18,096,363

 

 

 

-

 

 

 

18,096,363

 

(1) The shares of the Company's common stock and the per share amounts for the three months ended March 31, 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 $9,137 increase and $951 decrease in revenue for the three months ended March 31, 2024 and March 31, 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 $13,050 increase in cost of revenue for the three months ended March 31, 2024, resulted from an increase of $9,178 in construction costs and launch costs for customer-controlled satellites for one specific contract being expensed to cost of revenue and an increase of $3,872 of costs associated with R&D Services Contracts being reclassified from research and development expense to cost of revenue.
b.
The $3,009 increase in cost of revenue for the three months ended March 31, 2023 resulted from an increase of $2,345 of costs associated with R&D Services Contracts for one specific contract being reclassified from research and development expense to cost of revenue, an increase of $642 in construction costs and launch costs for customer-controlled satellites being expensed to cost of revenue, and an increase of $22 from the reclassification of supply chain department costs from general and administrative expense to cost of revenue.
(iii)
The $3,872 and $2,345 decreases in research and development expense for the three months ended March 31, 2024 and March 31, 2023, respectively, are related to costs associated with R&D Services Contracts being reclassified from research and development expense to cost of revenue.
(iv)
The $26 increase in general and administrative expenses for the three months ended March 31, 2024 resulted from an increase of $17 from the reclassification of other state taxes from other expense, net and an increase of $9 to adjust for the Delaware franchise tax accrual. The $53 increase in general and administrative expenses for the three months ended March 31, 2023, resulted from an increase of $450 from the reclassification of other state taxes from other expense, net,
partially offset by a decrease of $377 to adjust for the Delaware franchise tax accrual and a decrease of $20 from the reclassification of supply chain department costs from general and administrative expense to cost of revenue.
(v)
The $40 increase in allowance for current expected credit loss on notes receivable for the three months ended March 31, 2024 is related to the additional allowance for current expected credit loss related to a $4,500 note receivable issued to a customer.
(vi)
The $248 and $11 changes in foreign exchange loss for the three months ended March 31, 2024 and March 31, 2023, respectively, are related to the cash remeasurement adjustment for cash balances from certain foreign subsidiaries.
(vii)
The $17 and $451 changes in other (expense) income, net for the three months ended March 31, 2024 and March 31, 2023, respectively, are related to the other state taxes reclassified to general and administrative.
(viii)
The $50 and $246 decreases in income tax provision for the three months ended March 31, 2024 and March 31, 2023, respectively, are related to the impact to income tax provision as a result of the revenue adjustments.
Schedule of Unaudited Condensed Consolidated Statements of Comprehensive Loss

 

 

 

 

Three Months Ended March 31, 2024

 

 

Three Months Ended March 31, 2023

 

Unaudited Condensed Consolidated Statements of Comprehensive Loss

 

Notes

 

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

 

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

Net loss

 

 

 

$

(25,256

)

 

$

(288

)

 

$

(25,544

)

 

$

(17,673

)

 

$

(982

)

 

$

(18,655

)

Foreign currency translation adjustments

 

(i)

 

$

(1,747

)

 

$

187

 

 

$

(1,560

)

 

$

(1,589

)

 

$

(25

)

 

$

(1,614

)

Comprehensive loss

 

 

 

$

(27,005

)

 

$

(101

)

 

$

(27,106

)

 

$

(19,218

)

 

$

(1,007

)

 

$

(20,225

)

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

(i)
The $187 foreign currency translation gain and $25 foreign currency translation loss for the three months ended March 31, 2024, and March 31, 2023, respectively, are related to the foreign currency translation impact of consolidated statements of operations adjustments (i) to (iv) above.
Schedule of Unaudited Condensed Consolidated Statements of Cash Flows

 

 

 

 

Three Months Ended March 31, 2024

 

 

Three Months Ended March 31, 2023

 

Unaudited Condensed Consolidated Statements of Cash Flows

 

Notes

 

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

 

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

Net loss

 

 

 

$

(25,256

)

 

$

(288

)

 

$

(25,544

)

 

$

(17,673

)

 

$

(982

)

 

$

(18,655

)

Other, net

 

(i)

 

$

(20

)

 

$

248

 

 

$

228

 

 

$

(110

)

 

$

(240

)

 

$

(350

)

Change in contract assets

 

(ii)

 

$

624

 

 

$

(1,266

)

 

$

(642

)

 

$

(855

)

 

$

68

 

 

$

(787

)

Other current assets

 

(iii)

 

$

392

 

 

$

7,703

 

 

$

8,095

 

 

$

117

 

 

$

(805

)

 

$

(688

)

Change in contract liabilities

 

(iv)

 

$

775

 

 

$

(7,932

)

 

$

(7,157

)

 

$

1,259

 

 

$

895

 

 

$

2,154

 

Other accrued expenses

 

(v)

 

$

973

 

 

$

30

 

 

$

1,003

 

 

$

(548

)

 

$

(372

)

 

$

(920

)

Net cash used in operating activities

 

 

 

$

(7,345

)

 

$

(1,505

)

 

$

(8,850

)

 

$

(11,290

)

 

$

(1,436

)

 

$

(12,726

)

Purchase of property and equipment

 

(vi)

 

$

(8,564

)

 

$

1,505

 

 

$

(7,059

)

 

$

(4,649

)

 

$

1,436

 

 

$

(3,213

)

Net cash used in investing activities

 

 

 

$

(8,684

)

 

$

1,505

 

 

$

(7,179

)

 

$

(6,957

)

 

$

1,436

 

 

$

(5,521

)

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

 

(vii)

 

$

711

 

 

$

(246

)

 

$

465

 

 

$

(1,846

)

 

$

-

 

 

$

(1,846

)

Cash, cash equivalents and restricted cash -
   Beginning balance

 

 

 

$

29,641

 

 

$

(8

)

 

$

29,633

 

 

$

47,569

 

 

$

-

 

 

$

47,569

 

Cash, cash equivalents and restricted cash -
   Ending balance

 

 

 

$

52,471

 

 

$

(254

)

 

$

52,217

 

 

$

47,362

 

 

$

-

 

 

$

47,362

 

 

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

(i)
The $248 and $240 adjustments to change in other, net for the three months ended March 31, 2024 and March 31, 2023, respectively, are related to the impact to income tax provision as a result of the revenue adjustment.
(ii)
The $1,266 and $68 adjustments to change in contract assets for the three months ended March 31, 2024 and March 31, 2023, respectively, are related to the impact to current and non-current balances of contract assets from the correction of revenue recognition for Space Services and R&D Services Contracts.
(iii)
The $7,703 additional decrease in other current assets for the three months ended March 31, 2024 resulted from expensing the $7,585 prepaid launch costs capitalized into other current assets in 2023, a $78 net change in advances for fixed assets balance that was reclassified to property and equipment, and an additional allowance for current expected credit loss of $40 recorded for the $4,500 note receivable. The $805 increase in other current assets for the three months ended March 31, 2023 related to the net change in advances for fixed assets balance that is reclassified to property and equipment.
(iv)
The $7,932 adjustment to change in contract liabilities for the three months ended March 31, 2024 resulted from a $7,860 impact in contract liabilities from the correction of revenue recognition for Space Services and R&D Services Contracts and a $72 change in the customer deposit balance reclassified from other accrued expense to contract liabilities, non-current. The $895 adjustment to change in contract liabilities for the three months ended March 31, 2023 is related to the impact to current and non-current balances of contract liabilities from the correction of revenue recognition for Space Services and R&D Services Contracts.
(v)
The $30 decrease in other accrued expense for the three months ended March 31, 2024 resulted from a decrease of $52 from the impact to income tax provision as a result of the revenue adjustment, partially offset by an increase of $72 for change in the customer deposit balance reclassified to contract liability and an increase of $10 to the Delaware franchise tax accrual. The $372 decrease in other accrued expense for the three months ended March 31, 2023 is related to the Delaware franchise tax accrual.
(vi)
Adjustments to purchase of property and equipment:
a.
The $1,505 decrease in purchase of property and equipment for the three months ended March 31, 2024 resulted from a decrease of $9,074 related to costs incurred to design/build the customer-controlled satellites for one specific contract being expensed rather than capitalized into the Company's property and equipment and a decrease of $16 related to the reclassification of advances for fixed assets, partially offset by an increase of $7,585 from prepaid launch costs for such satellites reclassified into other current assets.
b.
The $1,436 decrease in purchase of property and equipment for the three months ended March 31, 2023 resulted from a decrease of $825 noncash addition to property and equipment from prior period advances that was incorrectly reflected as a cash purchase and a decrease of $611 related to costs incurred to design/build the customer-controlled satellites for one specific contract being expensed rather than capitalized into the Company's property and equipment.
(vii)
The $8 and $254 decreases in cash and cash equivalents as of December 31, 2023 and March 31, 2024, respectively, are related to the cash remeasurement adjustment for cash balances from certain foreign subsidiaries, which resulted in a $246 change in effect of foreign currency translation on cash, cash equivalents and restricted cash for the three months ended March 31, 2024.