Quarterly report [Sections 13 or 15(d)]

Information on Segment Reporting

v3.25.3
Information on Segment Reporting
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Information on Segment Reporting
14.
Information on Segment Reporting

The Company operates as one reportable and operating segment, which derives revenue from the sale of subscription-based data, insights, predictive analytics and related project-based services to global customers across a range of industries. All of the segment’s activities are interrelated, and each activity is dependent upon and supportive of the other. Accordingly, all significant operating decisions are based upon analysis of the Company at the consolidated level. The accounting policies of the segment are the same as those described in Note 2.

The Company’s chief operating decision maker (“CODM”), who is the Company's chief executive officer, regularly reviews consolidated net income (loss) as reported on the consolidated statements of operations, along with other financial information presented on a consolidated basis, for purposes of making operating decisions, assessing financial performance and allocating resources. The CODM measures performance and how to allocate resources for the segment primarily based on net income (loss), revenue, and gross margin. The CODM's objective is to make resource allocation decisions that optimize the Company's consolidated financial results by monitoring actual results compared to forecasted results.

The measure of segment assets is reported as total assets on the condensed consolidated balance sheets and total capital expenditures for additions to long-lived assets, which were $3,606 and $12,507, for the three and six months ended June 30, 2025, respectively, and $5,526 and $12,585 for the three and six months ended June 30, 2024, respectively.

The following table includes segment revenue and significant segment expenses:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Revenue

 

$

19,182

 

 

$

25,399

 

 

$

43,058

 

 

$

60,224

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Employee expense (a)

 

 

24,561

 

 

 

18,955

 

 

 

44,857

 

 

 

37,089

 

Equipment and software expenses (b)

 

 

6,574

 

 

 

6,980

 

 

 

16,893

 

 

 

23,018

 

Depreciation and amortization

 

 

2,524

 

 

 

5,652

 

 

 

6,937

 

 

 

12,489

 

Professional services

 

 

4,508

 

 

 

2,268

 

 

 

13,380

 

 

 

4,703

 

Facilities expense (b)

 

 

1,097

 

 

 

1,017

 

 

 

2,146

 

 

 

1,988

 

Contactor expense

 

 

400

 

 

 

482

 

 

 

778

 

 

 

1,118

 

Other operating and marketing expenses

 

 

1,502

 

 

 

1,447

 

 

 

2,781

 

 

 

2,564

 

Loss on decommissioned satellites and disposal of assets

 

 

1,110

 

 

 

501

 

 

 

6,239

 

 

 

924

 

Allowance for current credit loss on notes receivable

 

 

—

 

 

 

40

 

 

 

—

 

 

 

81

 

Interest expense

 

 

1,686

 

 

 

4,772

 

 

 

7,416

 

 

 

9,825

 

Change in fair value of contingent liability and warrant liabilities

 

 

3,016

 

 

 

(1,052

)

 

 

(3,858

)

 

 

3,195

 

Gain on sale of a business

 

 

(154,305

)

 

 

—

 

 

 

(154,305

)

 

 

—

 

Loss on extinguishment of debt

 

 

12,008

 

 

 

—

 

 

 

12,008

 

 

 

—

 

Issuance of stock warrants

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,399

 

Other segment items (c)

 

 

(5,089

)

 

 

896

 

 

 

(8,289

)

 

 

2,934

 

Segment net income (loss)

 

$

119,590

 

 

$

(16,559

)

 

$

96,075

 

 

$

(42,103

)

(a) Employee expense included stock-based compensation expense of $6,222 and $11,127 for the three and six months ended June 30, 2025, respectively, and $4,795 and $8,423 for the three and six months ended June 30, 2024, respectively.

(b) In the second quarter of 2025, the Company reclassified certain expenses from Facilities expense to Equipment and software expenses within its segment reporting to better reflect the nature of the costs. Prior period amounts have been recast to conform to the current year period presentation. This reclassification impacted only the composition of the expense categories regularly provided to the Company’s CODM and had no impact on total segment expenses, the condensed consolidated statements of operations, or earnings (loss) per share.

(c) Other segment items included in segment net income (loss) include foreign exchange gain (loss), income tax provision, equity investment loss, income tax benefit, travel and meals expenses, and interest income.