Credit risk is the risk that a counterparty fails to discharge an obligation to us. We are exposed to credit risk from financial assets including cash, cash equivalents and restricted cash held at banks, accounts receivable and other receivables.

The credit risk is managed based on our credit risk management policies and procedures. Credit risk of any entity doing business with us is systematically analyzed, including aspects of a qualitative nature. The measurement and assessment of our total exposure to credit risk covers all financial instruments involving any counterparty risk.

The credit risk in respect of cash balances held with banks and deposits with banks are managed via diversification of bank deposits and are only with major reputable financial institutions.

As our risk exposure is mainly influenced by the individual characteristics of each customer, we continuously analyze the creditworthiness of significant customers. Accounts receivable are non-interest bearing and generally on terms of 30 to 90 days. As of June 30, 2026, two customers accounted for 74% of accounts receivable. As of December 31, 2025, one customer accounted for 66% of our accounts receivable.

We had two customers that each accounted for more than 10% of our revenue totaling $11.6 million for the three months ended June 30, 2026 and three customers that each accounted for more than 10% of our revenue totaling $3.1 million for the three months ended June 30, 2025.

We had three customers that each accounted for more than 10% of our revenue totaling $14.3 million for the six months ended June 30, 2026 and four customers that each accounted for more than 10% of our revenue totaling $6.1 million for the six months ended June 30, 2025.

We assess potential impairments to long-lived assets whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. An impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the assets or asset group. We performed an impairment test as of June 30, 2026 due to our operating losses and net cash used in operations for the six months then ended and concluded that the asset group is not impaired.

Estimates of future cash flows are highly subjective judgments based on management’s experience and knowledge of the Company's operations. These estimates can be significantly impacted by many factors, including changes in global economic conditions, operating costs, obsolescence of technology and competition.

If estimates or underlying assumptions change in the future, we may be required to record impairment charges. If the fair value of an asset group is less than its carrying amount, then the carrying amount of the asset group would be reduced to its fair value. That reduction is an impairment loss that would be recognized in the Condensed Consolidated Statements of Operations and Comprehensive Loss.

Aggregate foreign currency gains and losses, such as those resulting from the settlement of receivables or payables, contracts denominated in foreign currencies and short-term intercompany advances in a currency other than the relevant subsidiary’s functional currency, are recorded currently in the Condensed Consolidated Statements of Operations and Comprehensive Loss (included in other income (expense), net) and resulted in gains of $0.3 million and losses of $0.3 million for the three months ended June 30, 2026 and 2025, respectively and gains of $0.4 million and losses of $0.5 million during the six months ended June 30, 2026 and 2025, respectively.

For the three months ended June 30, 2026 and 2025, lease expense was $0.5 million and $0.4 million, respectively and for the six months ended June 30, 2026 and 2025, lease expense was $1.0 million and $0.8 million, respectively.

Accounts are written off against the allowance for credit losses account when they are determined to be no longer collectible. The following table shows the activity in the allowance for credit losses for the six months ended June 30, 2026 and 2025:


	June 30,
	2026		2025
Allowance for credit losses as of beginning of year	$	52	$	148
Provision (release)	(34)		(49)
Write offs	—		(11)


Allowance for credit losses as of end of period	$	18	$	88


	June 30,		December 31,
	2026		2025
Cash and cash equivalents	$	112,809	$	94,430
Restricted cash	9,118		7,407
Restricted cash included in Other non-current assets	1,214		255
Total cash, cash equivalents and restricted cash	$	123,141	$	102,092


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Cash paid during the period for:
Income tax, net of (refunds)	$	—	$	146	$	(2)	$	302
Interest	$	—	$	3	$	1,493	$	1,673


	Six Months Ended June 30,
	2026		2025
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Unpaid property and equipment included in accounts payable at June 30	$	1,758	$	375
Conversion of secured convertible notes to common stock	$	78,450	$	—
Non-cash reclassification from property and equipment to inventory for capitalized costs paid in a prior period.	$	456	$	—

Proceeds from sales of in-orbit satellites are recognized as cash flows from investing activities as the components to construct the satellites were recognized as cash used in investing activities.

For the three months ended June 30, 2026 and 2025, research and development expenses were $1.5 million and $1.2 million, respectively, and for the six months ended June 30, 2026, and 2025, research and development expenses were $2.9 million and $2.6 million, respectively. Research and development expenses are included in Engineering on the Condensed Consolidated Statement of Operations and Comprehensive Loss.

Effective October 1, 2025, the Company elected to change its method of disclosing remaining performance obligations ("RPO"). Historically, the Company utilized the practical expedient available under ASC 606-10-50-14, which allowed for the exclusion of contracts with an original expected duration of one year or less.

The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers, which establishes a five‑step model for recognizing revenue: (i) identification of the contract with a customer, (ii) identification of the performance obligations in the contract, (iii) determination of the transaction price, (iv) allocation of the transaction price to the performance obligations, and (v) recognition of revenue when, or as, the Company satisfies a performance obligation.

Product revenue is derived from contracts for the sale of satellites. At contract inception, the Company evaluates whether the contract includes a single performance obligation to transfer a satellite or multiple performance obligations. For contracts in which the satellite and any related promised services are determined to be distinct, the transaction price is allocated to each performance obligation based on their relative stand-alone selling prices, or, if stand-alone selling prices are not available, the transaction price is allocated based on an estimate using other appropriate valuation techniques.

Service revenue consists primarily of sales of satellite imagery and related services, which may be provided on a per‑image basis or through subscription‑based arrangements that provide customers with satellite capacity to provide access to imagery tasking over a defined contract term. Accordingly, the sales of satellite imagery are treated as a single performance obligation and revenue is recognized at a point in time when the imagery is delivered or made available to the customer. Subscription-based arrangements are a separate, distinct performance obligation and revenue is recognized over time as the Company delivers promises outlined in the contract to the customer. In addition, services associated with our satellite sales, such as training and integration services, are evaluated to determine distinct performance obligations and for those performance obligations, revenue is typically recognized over time.

Effective January 1, 2026, the Company transitioned the accounting for its 4.7% interest in Officina Stellare from the Equity Method (ASC 323) to Fair Value through Net Income (ASC 321).

The Company’s OS investment transitioned to and is now classified as a Level 2 fair value measurement, as OS has a Readily Determinable Fair Value in the Euronext Growth Milan market, which management determined to be a market not actively traded under ASC 820-10-35-48b due to low trading volume relative to the Company’s holding.