XML 243 R19.htm IDEA: XBRL DOCUMENT v3.25.2
SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
The Company’s business is organized into market sectors based on its products and services and has three reportable segments: (i) Defense and National Security; (ii) Space Solutions; and (iii) Starlab Space Stations. The Company organizes its reportable segments based on the nature of the products and services offered.
Transactions between segments are generally negotiated and accounted for under terms and conditions similar to other government and commercial contracts. The reconciling item “corporate expense” includes the portion of corporate costs not considered allocable to the segments, such as legal, management and administration, and other corporate unallocable costs.
The Company’s CODM is our CEO and Chairman. The CODM uses net sales and adjusted EBITDA to assess segment performance and make decisions regarding the allocation of capital and other investments. Adjusted EBITDA is defined as EBITDA (earnings before interest, taxes, depreciation, and amortization) adjusted for certain items affecting comparability as specified in the calculation. During the second quarter of 2025, the Adjusted EBITDA metric used within the business by the CODM was modified to remove non-cash services as an add back. In alignment with ASC 280-10-50-36, the Company has recast its prior period Adjusted EBITDA measures to align with the new composition of the metric and the current financial benchmark used to monitor operations of the segments. These costs were historically only prevalent within the Starlab Space Stations segment and at the Corporate level.
Adjusted EBITDA is used to monitor budget versus actual results. The CODM also uses Adjusted EBITDA in analysis of the operational performance of each reporting segment. The CODM considers budget-to-actual variances on a quarterly basis for both profit measures when making decisions about allocating capital and personnel to the segments. The monitoring of budgeted versus actual results is used in assessing performance of the segments and in establishing management’s compensation. The CODM does not review segment expense items pursuant to ASC 280-10-50-26A. Therefore, the Company does not disclose these expense items by segment. The CODM does not use assets by segment to evaluate performance or allocate resources. Therefore, the Company does not disclose assets by segment.
The following table summarizes the operating performance of the Company’s segments:
Three Months EndedSix Months Ended
June 30, 2025June 30, 2024June 30, 2025June 30, 2024
Net Sales:
Defense and National Security$35,191 $19,029 $58,736 $33,730 
Space Solutions11,124 20,100 23,428 37,143 
Starlab Space Stations— — — — 
Total net sales, reportable segments46,315 39,129 82,164 70,873 
Intersegment eliminations(641)(2,476)(1,983)(4,004)
Total Net Sales$45,674 $36,653 $80,181 $66,869 
Other Segment Expenses(1)
Defense and National Security$33,345 $18,012 $56,778 $32,974 
Space Solutions12,472 19,031 25,954 37,197 
Starlab Space Stations1,969 8,052 4,783 10,532 
Total other segment expenses, reportable segments47,786 45,095 87,515 80,703 
Intersegment eliminations(641)(2,476)(1,983)(4,004)
Corporate and other expenses7,595 1,727 25,071 5,019 
Total other segment expenses
$54,740 $44,346 $110,603 $81,718 
Adjusted EBITDA:
Defense and National Security$1,846 $1,017 $1,958 $756 
Space Solutions(1,348)1,069 (2,526)(54)
Starlab Space Stations(1,969)(8,052)(4,783)(10,532)
Total Adjusted EBITDA, reportable segments(1,471)(5,966)(5,351)(9,830)
Intersegment eliminations— (1)— (24)
Corporate and other expenses(7,595)(1,727)(25,071)(5,019)
Depreciation & amortization(2,708)(2,758)(5,310)(5,471)
Stock-based compensation(11,547)(1,113)(13,270)(1,843)
Impairment— — — — 
Finance and interest expense, net(2,523)(3,095)(5,252)(6,089)
Net loss attributable to noncontrolling interests(1,683)(2,729)(2,674)(2,858)
Other(5,457)(8,784)(3,937)(9,743)
Loss before taxes$(32,984)$(26,173)$(60,865)$(40,877)
__________________
(1)Other Segment Expenses consist of cost of sales, research and development, selling, general, and administrative and other income or expense items which are not deducted when calculating Adjusted EBITDA.
The Company’s capital expenditures are as follows:
Three Months Ended June 30, 2025Defense and National SecuritySpace SolutionsStarlab Space StationsCorporateTotal
Capital expenditures:
Property, plant and equipment$346 $316 $30,214 $18 $30,894 
Total$346 $316 $30,214 $18 $30,894 
Three Months Ended June 30, 2024Defense and National SecuritySpace SolutionsStarlab Space StationsCorporateTotal
Capital expenditures:
Property, plant and equipment$309 $549 $15,417 $— $16,275 
Total$309 $549 $15,417 $— $16,275 
Six Months Ended June 30, 2025Defense and National SecuritySpace SolutionsStarlab Space StationsCorporateTotal
Capital expenditures:
Property, plant and equipment$984 $720 $56,108 $53 $57,865 
Total$984 $720 $56,108 $53 $57,865 
Six Months Ended June 30, 2024Defense and National SecuritySpace SolutionsStarlab Space StationsCorporateTotal
Capital expenditures:
Property, plant and equipment$809 $909 $30,607 $— $32,325 
Total$809 $909 $30,607 $— $32,325 
Substantially all of the Company’s long-lived tangible assets were in the United States as of June 30, 2025 and December 31, 2024, respectively.