Quarterly report [Sections 13 or 15(d)]

Restatement of Quarterly Financial Information

v3.25.0.1
Restatement of Quarterly Financial Information
 9 Months Ended
Sep. 30, 2024
Disclosure Text Block [Abstract]  
Restatement of Quarterly Financial Information
13.
Restatement of Quarterly Financial Information

The following tables present the effect of the restatement on the Company's previously reported: unaudited condensed consolidated statements of operations and condensed consolidated statements of comprehensive loss for the three and nine months ended September 30, 2023 and unaudited condensed consolidated statements of cash flows for the nine months ended September 30, 2023. The values as previously reported were derived from the previously filed Quarterly Reports on Form 10-Q for the periods ended September 30, 2023.

 

 

 

Three Months Ended September 30, 2023

 

 

Nine 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

 

Revenue

 

(i)

$

27,317

 

 

$

(5,191

)

 

$

22,126

 

 

$

77,978

 

 

$

(4,570

)

 

$

73,408

 

Cost of revenue

 

(ii)

$

9,555

 

 

$

3,085

 

 

$

12,640

 

 

$

29,548

 

 

$

11,706

 

 

$

41,254

 

Gross profit

 

 

$

17,762

 

 

$

(8,276

)

 

$

9,486

 

 

$

48,430

 

 

$

(16,276

)

 

$

32,154

 

Research and development

 

(iii)

$

10,538

 

 

$

(2,607

)

 

$

7,931

 

 

$

29,953

 

 

$

(7,049

)

 

$

22,904

 

General and administrative

 

(iv)

$

11,049

 

 

$

174

 

 

$

11,223

 

 

$

33,718

 

 

$

46

 

 

$

33,764

 

Total operating expenses

 

 

$

28,736

 

 

$

(2,433

)

 

$

26,303

 

 

$

84,871

 

 

$

(7,003

)

 

$

77,868

 

Loss from operations

 

 

$

(10,974

)

 

$

(5,843

)

 

$

(16,817

)

 

$

(36,441

)

 

$

(9,273

)

 

$

(45,714

)

Foreign exchange loss

 

(v)

$

(1,829

)

 

$

(11

)

 

$

(1,840

)

 

$

(1,240

)

 

$

(73

)

 

$

(1,313

)

Other (expense) income, net

 

(vi)

$

(620

)

 

$

233

 

 

$

(387

)

 

$

(2,420

)

 

$

592

 

 

$

(1,828

)

Total other expense, net

 

 

$

(6,743

)

 

$

222

 

 

$

(6,521

)

 

$

(14,733

)

 

$

519

 

 

$

(14,214

)

Loss before income taxes

 

 

$

(17,717

)

 

$

(5,621

)

 

$

(23,338

)

 

$

(51,174

)

 

$

(8,754

)

 

$

(59,928

)

Income tax provision (benefit)

 

(vii)

$

78

 

 

$

(79

)

 

$

(1

)

 

$

560

 

 

$

(124

)

 

$

436

 

Net loss

 

 

$

(17,795

)

 

$

(5,542

)

 

$

(23,337

)

 

$

(51,734

)

 

$

(8,630

)

 

$

(60,364

)

Basic and diluted net
   loss per share

 

 

$

(0.86

)

 

$

(0.26

)

 

$

(1.12

)

 

$

(2.71

)

 

$

(0.45

)

 

$

(3.16

)

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

 

 

 

20,756,394

 

 

 

-

 

 

 

20,756,394

 

 

 

19,117,078

 

 

 

-

 

 

 

19,117,078

 

 

Description of restatement adjustments in condensed consolidated statements of operations:

(i)
The $5,191 and $4,570 decreases in revenue for the three months and nine 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 $3,085 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.
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 expense 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.
(iii)
The $2,607 and $7,049 decreases in research and development expense for the three months and nine months ended September 30, 2023, respectively, are 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 $174 increase in general and administrative expense for the three months ended September 30, 2023 resulted from an increase of $235 for 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.
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.
(v)
The $11 and $73 decreases in foreign exchange loss for the three months and nine months ended September 30, 2023, respectively, are related to the correction of revenue recognition for Space Services and R&D Services Contracts.
(vi)
Adjustments to other expense, net:
a.
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.
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.
(vii)
The $79 and $124 decreases in income tax provisions for the three months and nine months ended September 30, 2023, respectively, are related to the impact to income tax provision as a result of the revenue adjustments.

 

 

 

 

Three Months Ended September 30, 2023

 

 

Nine 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

 

Net loss

 

 

$

(17,795

)

 

$

(5,542

)

 

$

(23,337

)

 

$

(51,734

)

 

$

(8,630

)

 

$

(60,364

)

Foreign currency
   translation adjustments

 

(i)

$

(1,779

)

 

$

204

 

 

$

(1,575

)

 

$

973

 

 

$

195

 

 

$

1,168

 

Comprehensive loss

 

 

$

(19,576

)

 

$

(5,338

)

 

$

(24,914

)

 

$

(50,726

)

 

$

(8,435

)

 

$

(59,161

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

(i)
The $204 and $195 foreign currency translation gains for the three months and nine months ended September 30, 2023, respectively, are related to the foreign currency translation impact of consolidated statements of operations adjustments (i) to (v) above.

 

 

 

 

Nine Months Ended September 30, 2023

 

Unaudited Condensed Consolidated Statements of Cash Flows

 

Notes

As Previously Reported

 

 

Restatement Adjustments

 

 

As Restated

 

Net loss

 

 

$

(51,734

)

 

$

(8,630

)

 

$

(60,364

)

Other, net

 

(i)

$

(448

)

 

$

(78

)

 

$

(526

)

Change in contract assets

 

(ii)

$

(1,146

)

 

$

801

 

 

$

(345

)

Other current assets

 

(iii)

$

(177

)

 

$

(7,219

)

 

$

(7,396

)

Change in contract liabilities

 

(iv)

$

6,977

 

 

$

4,014

 

 

$

10,991

 

Other accrued expenses

 

(v)

$

(536

)

 

$

(589

)

 

$

(1,125

)

Net cash used in
   operating activities

 

 

$

(27,733

)

 

$

(11,701

)

 

$

(39,434

)

Purchase of property and equipment

 

(vi)

$

(23,694

)

 

$

11,701

 

 

$

(11,993

)

Net cash used in investing activities

 

 

$

(19,946

)

 

$

11,701

 

 

$

(8,245

)

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

 

(vii)

$

2,343

 

 

$

(52

)

 

$

2,291

 

Cash, cash equivalents and restricted cash -
   Ending balance

 

 

$

30,407

 

 

$

(52

)

 

$

30,355

 

 

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

(i)
The $78 adjustment to change in other, net for the nine months ended September 30, 2023 represents the change in deferred income tax liabilities related to the impact to income tax provision as a result of the revenue adjustments.
(ii)
The $801 adjustment to change in contract assets for the nine months ended September 30, 2023 is 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)
The $7,219 adjustment to 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)
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 a customer deposit balance reclassified from other accrued expense to contract liabilities, non-current.
(v)
The $589 adjustment to change in other accrued expense for the nine months ended September 20, 2023 resulted from a $413 adjustment for Delaware franchise tax accrual and a $176 adjustment for customer deposit balance reclassification.
(vi)
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 in prepaid launch costs for the customer-controlled satellites 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.
The $52 decrease in cash and cash equivalents as of September 30, 2023 is related to the cash remeasurement adjustment for cash balances from certain foreign subsidiaries, which resulted in a $52 change in effect of foreign currency translation on cash, cash equivalents and restricted cash for the nine months ended September 30, 2023.