Revenue Recognition

Adjustment affecting $10–15 million in annual recognized revenue

Q2 2024 adjustments stem from a corrective reclassification of revenue recognition: revenue from pre-space mission activities has been shifted to be recorded once data is delivered rather than when services were performed, contrasting with previous periods. This re-evaluation is due to issues with the timing in recognizing revenue for its “Space as a Service” contracts. " "

Share Price

Declined by $3.41 per share (a 33.56% drop)

Triggered by the revenue recognition issues and subsequent restatement of financial results, investor confidence dropped sharply compared to prior periods, resulting in a significant share price decline following the Q2 2024 announcement. " " " " " " " "

Gross Profit

Potential reduction (exact magnitude not specified)

With the recognition and timing adjustments for revenue and related costs, gross profit figures are expected to be negatively affected compared to previous periods. These adjustments may lower margins as costs are realigned with the revised revenue timing. " "