ACQUISITIONS

6 Months Ended

Jun. 30, 2025

Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]

ACQUISITIONS

ACQUISITIONS

Business Combination

Optical Physics Company

On May 2, 2025, the Company acquired 100% of the equity securities of Optical Physics Company (“OPC”) for approximately $9.5 million in cash, equity and contingent consideration. The Company paid cash of $6.7 million, equity of $1.0 million in common stock and contingent consideration of $1.8 million. OPC provides competencies in building high precision optics; opto-mechanical assemblies and associated electronics, computer interfacing, signal acquisition and signal processing. As of the acquisition date, OPC was consolidated into the Defense and National Security reporting segment. OPC is immaterial to the Defense and National Security reporting segment. The total fair value for the purchase was attributed to tangible assets of $2.1 million, intangible assets of $5.5 million and goodwill of $4.0 million, offset by liabilities assumed of $2.1 million. This acquisition was not considered material, individually or in the aggregate to our condensed consolidated financial statements. As a result, no pro forma information has been provided. None of the goodwill acquired is tax deductible.

LeoCloud Inc.

During the quarter, the Company also acquired LeoCloud Inc. for an immaterial amount of cash consideration. The acquisition resulted in an immaterial acquisition of receivables and cash for an immaterial amount of consideration. The acquisition of LeoCloud was an onboarding of personnel to further in-orbit data exchange.