Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.22.1
Segment Information
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Segment Information

Note 14 Segment Information

The Company’s Chief Executive Officer is its chief operating decision maker (the “CODM”). The Company reports segment information based on how the CODM evaluates performance and makes decisions about how to allocate resources. Accordingly, the Company has two operating and reportable segments: Satellite Solutions and Earth Observation Solutions.

The reportable segments are defined as follows:

•
Satellite Solutions

The Satellite Solutions segment is a vertically integrated satellite provider with modern facilities and a global ground station network that delivers end-to-end satellite solutions, including spacecraft design, development, launch services and on-orbit operations for critical missions across a number of applications in a variety of orbits to governmental agencies and commercial businesses.

•
Earth Observation Solutions

Through the Satellite Solutions segment, the Earth Observation Solutions segment has commenced developing satellites and intends to continue to develop, build, launch and operate a constellation of Earth observation satellites that will feature Synthetic Aperture Radar ("SAR") and electro-optical capabilities to provide Earth observation data and mission solutions that it believes will be distinguished by breadth of coverage, revisit rates and ability to observe and detect during day and night and through clouds and other interference. In addition, the Earth Observation Solutions segment plans to provide secondary payload solutions and onboard data processing capabilities on its satellite constellation, including sensors, optical links or other mission solutions.

The Earth Observation Solutions segment is still in its developmental stage and does not yet generate any material revenue. The scope and timing of the satellite constellation is subject to continuing assessments of customer demand and the Company's financial and other resources. The Company has designed and began building the first two satellites of the constellation and plans to launch the two satellites in late 2022 or the first half of 2023.

The CODM uses income (loss) from operations by segment as the segment profitability measure in order to evaluate segment performance. Income (loss) from operations by segment excludes share-based compensation expense and corporate and other costs included within the Company’s consolidated income (loss) from operations.

The CODM does not review the Company's assets by segment; therefore, such information is not presented.

The following table presents revenue by segment and a reconciliation to consolidated revenue for the periods presented:

 

 

Three Months Ended March 31,

 

(in thousands)

2022

 

 

2021

 

Satellite Solutions

$

12,974

 

 

$

10,494

 

Earth Observation Solutions

 

146

 

 

 

—

 

Revenue

$

13,120

 

 

$

10,494

 

 

The following table presents loss from operations by segment for the periods presented:

 

 

Three Months Ended March 31,

 

(in thousands)

2022

 

 

2021

 

Satellite Solutions

$

(6,048

)

 

$

(980

)

Earth Observation Solutions

 

(660

)

 

 

(912

)

Loss from operations by segment

$

(6,708

)

 

$

(1,892

)

 

During the three months ended March 31, 2022, depreciation and amortization expense included in loss from operations by segment totaled $641 thousand and $184 thousand for Satellite Solutions and Earth Observation Solutions, respectively. During the three months ended March 31, 2021, depreciation and amortization expense included in loss from operations by segment totaled $671 thousand and related entirely to Satellite Solutions.

The following table presents a reconciliation of loss from operations by segment to consolidated loss from operations and net loss for the periods presented:

 

 

Three Months Ended March 31,

 

(in thousands)

2022

 

 

2021

 

Loss from operations by segment

$

(6,708

)

 

$

(1,892

)

Corporate and other

 

(9,007

)

 

 

(3,853

)

Share-based compensation expense

 

(17,335

)

 

 

(168

)

Loss from operations

 

(33,050

)

 

 

(5,913

)

Interest expense, net

 

2,923

 

 

 

907

 

Loss on extinguishment of debt

 

23,141

 

 

 

70,667

 

Change in fair value of warrant and derivative liabilities

 

11,853

 

 

 

(34

)

Other expense

 

403

 

 

 

15

 

Loss before income taxes

 

(71,370

)

 

 

(77,468

)

Provision for income taxes

 

2

 

 

 

28

 

Net loss

$

(71,372

)

 

$

(77,496

)