Delaware |
4522 |
98-1550340 | ||
(State or Other Jurisdiction of Incorporation or Organization) |
(Primary Standard Industrial Classification Code No.) |
(I.R.S. Employer Identification No.) |
W. Stuart Ogg |
Arjun Kampani | |
Goodwin Procter LLP |
Senior Vice President, General Counsel and Secretary | |
601 Marshall Street |
Rocket Lab USA, Inc. | |
Redwood City, CA 94063 |
3881 McGowen Street | |
(650) 752-3100 |
Long Beach, CA 90808 | |
(714) 465-5737 |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☒ | Smaller reporting company | ||||
Emerging growth company |
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F-1 |
• | “ Board |
• | “ Business Combinatio n |
• | “ Bylaws |
• | “ Certificate of Incorporation |
• | “ Charter Amendment |
• | “ Class B ordinary shares founder shares |
• | “ Closing |
• | “ Closing Date |
• | “ DGCL |
• | “ Domestication |
• | “ ESPP |
• | “ Exchange Ratio |
• | “ initial public offering |
• | “ Legacy Rocket Lab |
• | “ Management Redemption Agreement |
• | “ Management Redemption Amount |
• | “ Management Redemption Shares/Options |
• | “ Merger Agreement |
• | “ Mergers |
• | “ New Rocket Lab |
• | “ PIPE Investors |
• | “ PSC Earnout Shares |
• | “ public warrants |
• | “ private placement warrants |
• | “ Rocket Lab Holders |
• | “ Securities Act |
• | “ Sponsor |
• | “ Subscription Agreements |
• | “ units one-third of one warrant, with such whole warrant representing the right to acquire one Class A ordinary share, that were offered and sold by Vector in its initial public offering; |
• | “ U.S. GAAP |
• | “ Vector |
• | “ warrants |
• | “ 2021 Plan |
• | Our ability to effectively manage future growth and achieve operational efficiencies; |
• | changes in the competitive and highly regulated industries in which we operate, variations in operating performance across competitors, changes in laws and regulations affecting our business and changes in the combined capital structure; |
• | changes in governmental policies, priorities, regulations, mandates or funding for programs in which we or our customers participate, which could negatively impact our business; |
• | loss of, or default by, one or more of our key customers or inability of customers to fund contractual commitments, which could result in a decline in future revenues, cancellation of contracted launches or space systems orders or termination or default of existing agreements; |
• | changes in applicable laws or regulations; |
• | success in retaining or recruiting, or changes required in, officers, key employees or directors, and our ability to attract and retain key personnel, including Peter Beck, our President, Chief Executive Officer and Chairman; |
• | any inability of us to operate our Electron Launch Vehicle (“Electron”) at its anticipated launch rate could adversely impact our business, financial condition and results of operations; |
• | defects in or failure of our products to operate in the expected manner, including any launch failure, which could result in a loss of revenue, impact our business, prospects and profitability, increase our insurance rates and damage our reputation and ability to obtain future customers; |
• | inability or failure to protect intellectual property; |
• | disruptions in the supply of key raw materials or components used to produce our products or increases in prices of raw materials; |
• | fluctuations in foreign exchange rates; |
• | the ability to implement our business plans, forecasts and other expectations, and identify and realize additional opportunities; |
• | the risk of downturns in the commercial launch services and spacecraft industry; |
• | our ability to anticipate changes in the markets for rocket launch services, mission services, spacecraft and spacecraft components; |
• | macroeconomic conditions resulting from the global pandemic related to the novel coronavirus (“COVID-19”); |
• | the inability to develop and maintain effective internal controls; |
• | the diversion of management’s attention and consumption of resources as a result of acquisitions of other companies and success in integrating and otherwise achieving the benefits of recent and potential acquisitions; |
• | failure to maintain adequate operational and financial resources or raise additional capital or generate sufficient cash flows; |
• | any significant disruption in or unauthorized access to our computer systems or those of third parties that we utilize in our operations, including those relating to cybersecurity or arising from cyber-attacks; |
• | the effect of the COVID-19 pandemic on the foregoing, including potential delays in the timing of launches due to government lock-downs, including travel restrictions or other factors impacting travel; and |
• | other factors detailed under the section of this prospectus entitled “ Risk Factors |
• | We have experienced rapid growth in recent periods and those growth rates may not be indicative of our future growth. If we fail to manage our growth effectively, we may be unable to execute our business plan and our business, results of operations, and financial condition could be harmed. |
• | We have a limited operating history in an evolving industry, which makes it difficult to forecast our revenue, plan our expenses and evaluate our business and future prospects. |
• | We have a history of losses, we anticipate increasing operating expenses in the future, and we may not be able to achieve and, if ever achieved, maintain profitability. |
• | Our future revenue and operating results are dependent on our ability to generate a sustainable order rate for our products and services and develop new technologies to meet the needs of our customers or potential new customers. |
• | Our business with various governmental entities is subject to the policies, priorities, regulations, |
mandates and funding levels of such governmental entities and may be negatively or positively impacted by any change thereto. |
• | Our business with various governmental entities is concentrated in a small number of primary contracts. The loss or reduction in scope of any one of our primary contracts would materially reduce our revenue. |
• | We derive a substantial amount of our revenues from only a few of our customers. A loss of, or default by, one or more of these major customers, or a material adverse change in any such customer’s business or financial condition, could materially reduce our future revenues and contracted backlog. |
• | Disruptions in U.S. government operations and funding could have a material adverse effect on our revenues, earnings and cash flows, and otherwise adversely affect our financial condition. |
• | We may not be successful in developing new technology, and the technology we are successful in developing may not meet the needs of our customers or potential new customers. |
• | We operate in highly competitive industries and in various jurisdictions across the world which may cause us to have to reduce our prices. |
• | Disruptions in the supply of key raw materials or components and difficulties in the supplier qualification process, as well as increases in prices of raw materials, could adversely impact us. |
• | Uncertain global macro-economic and political conditions could materially adversely affect our results of operations and financial condition. |
• | We often rely on a single vendor or a limited number of vendors to provide certain key products or services and the inability of these key vendors to meet our needs could have a material adverse effect on our business. |
• | Launch vehicles are subject to manufacturing delays, damage or destruction during pre-launch operations, and launch failures, the occurrence of which can materially and adversely affect our operations. |
• | Spacecraft are subject to manufacturing and launch delays, damage or destruction during pre-launch operations, launch failures and incorrect orbital placement, the occurrence of which can materially and adversely affect our operations. |
• | If our launch vehicles and spacecraft fail to operate as intended, it could have a material adverse effect on our business, financial condition and results of operations. |
• | Our revenue, results of operations and reputation may be negatively impacted if our products contain defects or fail to operate in the expected manner. |
• | Any inability to operate Electron at our anticipated launch rate could adversely impact our business, financial condition and results of operations. |
• | If our spacecraft fail to operate as intended, it could have a material adverse effect on our business, financial condition and results of operations. |
• | The expansion of our operations subjects us to additional risks that can adversely affect our operating results. |
• | Acquisitions or divestitures could result in adverse impacts on our operations. |
• | Space is a harsh and unpredictable environment where our products and service offerings are exposed to a wide and unique range of environmental risks, including, among others, coronal mass ejections, solar flares and other extreme space weather events and potential collision with space debris or another spacecraft, which could adversely affect our launch vehicle and spacecraft performance. |
• | Increased congestion from the proliferation of low Earth orbit constellations could materially increase the risks of potential collision with space debris or another spacecraft and limit or impair our launch flexibility and/or access to our own orbital slots. |
• | Our business involves significant risks and uncertainties that may not be covered by insurance. |
• | Interruption or failure of our infrastructure could hurt our ability to effectively perform our daily operations and provide and produce our products and services, which could damage our reputation and harm our operating results. |
• | Any significant disruption in or unauthorized access to our computer systems or those of third parties that we utilize in our operations, including those relating to cybersecurity or arising from cyber-attacks, could result in a loss or degradation of service, unauthorized disclosure of data, or theft or tampering of intellectual property, any of which could materially adversely impact our business. |
• | We are unable to predict the extent to which epidemics, pandemics and similar outbreaks, including the global COVID-19 pandemic, may adversely impact our business operations, across our global footprint, financial performance, results of operations and stock price. |
• | The U.S. presidential executive order concerning mandatory COVID-19 vaccination of U.S.-based employees of companies that work on or in support of federal contracts could have a material adverse impact on our business and results of operations. |
• | If we cannot successfully protect our intellectual property, our business could suffer. |
• | Our technology may violate the proprietary rights of third parties, which could have a negative impact on our operations. |
• | We are highly dependent on the services of Peter Beck, our President, Chief Executive Officer and Chairman, and if we are unable to retain Mr. Beck, our ability to compete could be harmed. |
• | Our inability to hire or retain key personnel could adversely affect our business, operating results and financial condition. |
• | Labor-related matters, including labor disputes, may adversely affect our operations. |
• | Given the relative contribution and materiality of our New Zealand operations, fluctuations in foreign exchange rates or future hedging activities could have a negative impact on our business. |
• | We may require additional capital to support business growth, and this capital might not be available or may be available only by diluting existing stockholders. |
• | As a private company, prior to the Business Combination, we were not required to document and test our internal controls over financial reporting nor had our management been required to certify the effectiveness of our internal controls and our auditors have not been required to opine on the effectiveness of our internal control over financial reporting. We have identified material weaknesses in our internal control over financial reporting which, if not corrected, could affect the reliability of our consolidated financial statements and have other adverse consequences. |
• | A significant portion of our management team has limited experience managing a public company. |
Issuer |
Rocket Lab USA, Inc |
Shares of common stock offered by the Selling Securityholders |
Up to 2,676,864 shares of common stock representing: |
Up to 956,023 PSC Earnout Shares. |
Shares of common stock outstanding as of April 27, 2022 |
463,796,388 |
Use of proceeds |
We will not receive any proceeds from the sale of the common stock by the Selling Securityholders. |
The Selling Securityholders will determine when and how they will dispose of the shares of common stock registered under this prospectus for resale. |
Nasdaq symbols |
Our common stock is listed on the Nasdaq under the symbol RKLB. |
Risk factors |
See “ Risk Factors |
• | Up to 24,186,675 shares of common stock attributable to Legacy Rocket Lab options and restricted stock units assumed in the Business Combination; |
• | Up to 82,522,859 shares of common stock reserved for issuance under our 2021 Stock Option and Incentive Plan, plus any future annual increases under the terms thereof; and |
• | Up to 14,490,480 shares of common stock reserved for issuance under our Employee Stock Purchase Plan, plus any future annual increases under the terms thereof. |
• | scale our revenue and achieve the operating efficiencies necessary to achieve and maintain profitability; |
• | anticipate and respond to changing customer preferences; |
• | anticipate and respond to macroeconomic changes generally, including changes in the markets for rocket launch services, mission services, spacecraft and spacecraft components; |
• | improve and expand our operations and information systems; |
• | successfully compete against established companies and new market entrants; |
• | manage and improve our business processes in response to changing business needs; |
• | effectively scale our operations while maintaining high customer satisfaction; |
• | hire and retain talented employees at all levels of our business; |
• | integrate recent acquisitions, including personnel, systems and business processes; |
• | avoid or manage interruptions in our business from information technology downtime, cybersecurity breaches and other factors affecting our physical and digital infrastructure; |
• | adapt to changing conditions in our industry and related to the COVID-19 pandemic and measures implemented to contain its spread; and |
• | comply with regulations applicable to our business. |
• | recruiting and retaining talented and capable management and employees; |
• | competition from other companies with significant market share in those markets and with better understanding of demand; |
• | difficulties in enforcing contracts, collecting accounts receivables, and longer payment cycles; |
• | regulatory, political or contractual limitations on our ability to operate in certain foreign markets, including trade barriers such as export requirements, tariffs, taxes and other restrictions and expenses; |
• | compliance with anti-bribery laws, including without limitation the Foreign Corrupt Practices Act; |
• | varying security laws and regulations in other countries; |
• | management distraction and constraints on bandwidth from acquisitions; |
• | increased management, travel, infrastructure and legal compliance costs associated with having multiple operations and integrating acquisitions; |
• | differing regulatory and legal requirements and possible enactment of additional regulations or restrictions on the use, import or export of our products and services, which could delay or prevent the sale or use of our products and services in some jurisdictions; |
• | currency translation and transaction risk, which may negatively affect our revenue, cost of net revenue, and gross margins, and could result in exchange losses; |
• | heightened exposure to political instability, war and terrorism; |
• | continued access to our LC-1 at Mahia, New Zealand at lease expiration; |
• | access to launch capacity at government-controlled launch sites, such as our Launch Complex 2 at the NASA-operated Mid-Atlantic Regional Spaceport at Wallops Island, Virginia; |
• | weaker protection of intellectual property rights in some countries; and |
• | overlapping of different tax regimes. |
• | disrupt the proper functioning of our networks, applications and systems and therefore our operations and/or those of certain of our customers or suppliers; |
• | result in the unauthorized access to, and destruction, loss, theft, misappropriation, or release of, our, our customers’, or our suppliers’ proprietary, confidential, sensitive or otherwise valuable information, including trade secrets, which others could use to compete against us or for disruptive, destructive or otherwise harmful purposes and outcomes; |
• | destroy or degrade assets including space, ground and intellectual property assets; |
• | manipulate or tamper with our operations, products, services or other systems delivered to our customers or suppliers; |
• | compromise other sensitive government functions; and |
• | damage our reputation with our customers (particularly agencies of various governments) and the public generally. |
• | We did not design or maintain appropriate controls over completeness and accuracy of schedules supporting journal entries. This included schedules related to accounting estimates used in calculating revenue and cost of sales for long term contracts in sufficient levels of detail to ensure the accuracy and completeness of inputs. |
• | We did not design or maintain the appropriate controls over the review the work of the third parties used to assist management in technical accounting positions such as the accounting for revenue in accordance with ASC 606 and specialists used for income taxes and valuations of common stock, warrants and acquired intangible assets. |
• | We did not maintain appropriate controls which were designed over the review of account reconciliations and the preparation of the statement of cash flows. |
• | We did not design or maintain controls over the segregation of duties and access to relevant financial reporting systems. |
• | incur additional debt; |
• | make distributions or redeem or repurchase our capital stock; |
• | make loans or equity investments or advances to entities that are not subsidiary guarantors; |
• | enter into transactions with affiliates; |
• | create certain liens; |
• | purchase assets or businesses other than permitted acquisitions; |
• | sell, lease, license, transfer or otherwise dispose of assets; and |
• | consolidate, merge or sell all or substantially all of our assets. |
• | restructuring our operations to comply with local regulatory regimes; |
• | identifying, hiring and training highly skilled personnel; |
• | unexpected changes in tariffs, trade barriers and regulatory requirements; |
• | economic weakness, including inflation, or political instability in foreign economies and markets; |
• | compliance with tax, employment, immigration and labor laws for employees living or traveling abroad; |
• | foreign taxes, including withholding of payroll taxes; |
• | the need for U.S. government approval to operate our spacecraft systems outside the U.S.; |
• | foreign currency fluctuations, which could result in increased operating expenses and reduced revenue; |
• | government appropriation of assets; |
• | workforce uncertainty in countries where labor unrest is more common than in the U.S.; and |
• | disadvantages of competing against companies from countries that are not subject to U.S. laws and regulations, including anti-corruption laws and anti-money laundering regulations, as well as exposure of our foreign operations to liability under these regulatory regimes. |
• | Changes in laws and regulations. It is possible that the laws and regulations governing our business and operations will change in the future. A substantial portion of our revenue is generated from customers outside of the U.S. There may be a material adverse effect on our financial condition and results of operations if we are required to alter our business to comply with changes in both domestic and foreign |
regulations, tariffs, or taxes and other trade barriers that reduce or restrict our ability to sell our products and services on a global basis, or by political and economic instability in the countries in which we conduct business. Any failure to comply with such regulatory requirements could also subject us to various penalties or sanctions. |
• | Export Restrictions. Certain of our launch vehicles, spacecraft, spacecraft components, systems, services, or technologies we have developed require the implementation or acquisition of products or technologies from third parties and affiliates, including those in other jurisdictions. In addition, certain of our launch vehicles, spacecraft, spacecraft components, systems, services or technologies may be required to be forwarded or exported to other jurisdictions. In certain cases, if the use of the technologies can be viewed by the jurisdiction in which that supplier, subcontractor or affiliate resides as being subject to export constraints or restrictions relating to national security, we may not be able to obtain the technologies and products that we require from subcontractors and suppliers who would otherwise be our preferred choice or may not be able to obtain the export permits necessary to transfer or export our technology. The inability to obtain or maintain export approvals, and export restrictions or changes during contract execution or non-compliance by our suppliers, subcontractors and customers, could have an adverse effect on our revenues and margins. |
• | U.S. Government Approval Requirements. For certain aspects of our business operations, we are required to obtain U.S. government licenses and approvals and to enter into agreements with various government bodies in order to export launch vehicles, spacecraft, spacecraft components and related equipment, to disclose technical data, or provide defense services to foreign persons. The delayed receipt of or the failure to obtain the necessary U.S. government licenses, approvals and agreements may prohibit entry into or interrupt the completion of contracts which could lead to a customer’s termination of a contract for default or monetary penalties. In addition, certain aspects of our business operations depend on the Agreement between the Government of New Zealand and the Government of the U.S. on Technology Safeguards Associated with U.S. Participation in Space Launches from New Zealand. Any change or termination of this agreement could materially adversely affect our financial condition and results of operations. |
• | Other Government Regulations. Our ability to pursue our business activities is regulated by various agencies and departments of the U.S. government and the governments of other countries. Commercial space launch activities require licenses from the Department of Transportation and, for launches from Launch Complex 1, the New Zealand Space Agency. Our license to conduct launches at Launch Complex 2 requires certification of our flight termination system software by NASA before flight, which has not yet been completed. We cannot provide assurance as to when or if such certification will be completed. Radio communications for launch activities and spacecraft operations require licenses from the Federal Communications Commission and/or New Zealand Radio Spectrum Management and frequency coordination with the International Telecommunication Union. The operation of private remote sensing space systems requires a license from the Department of Commerce. Any failure to comply with these and other regulatory requirements could subject us to various penalties or sanctions and could have a significant adverse effect on our reputation, financial condition and results of operations. |
• | Competitive Impact of U.S. Regulations. Export and import control, economic sanction and trade embargo laws and regulations, including those administered by the U.S. Department of Commerce’s Bureau of Industry and Security, the U.S. State Department’s Directorate of Defense Trade Controls and the U.S. Treasury Department’s Office of Foreign Assets Control, may limit certain business opportunities or delay or restrict our ability to contract with potential foreign customers or suppliers. To the extent that our non-U.S. competitors are not subject to similar export and import control, economic sanction and trade embargo laws and regulations, they may enjoy a competitive advantage with foreign customers, and it could become increasingly difficult for us to recapture this lost market share. |
• | Anti-Corruption Laws. As part of the regulatory and legal environments in which we operate, we are subject to global anti-corruption laws that prohibit improper payments directly or indirectly to government officials, authorities or persons defined in those anti-corruption laws in order to obtain or retain business or other improper advantages in the conduct of business. Our policies mandate compliance with anti-corruption laws. Failure by our employees, agents, subcontractors, suppliers and/ or partners to comply with anti-corruption laws could impact us in various ways that include, but are not limited to, criminal, civil and administrative fines and/or legal sanctions and the inability to bid for or enter into contracts with certain entities, all of which could have a significant adverse effect on our reputation, operations and financial results. |
• | Launch Services is the design, manufacture, and launch of orbital rockets to deploy payloads to various Earth orbits and interplanetary destinations. |
• | Space systems is the design and manufacture of spacecraft components and spacecraft program management services, space data applications and mission operations. |
• | increase our investment in marketing, advertising, sales and distribution infrastructure for our existing and future products and services; |
• | develop additional new products and enhancements to existing products; |
• | obtain, maintain and improve our operational, financial and management performance; |
• | hire additional personnel; |
• | obtain, maintain, expand and protect our intellectual property portfolio; and |
• | operate as a public company. |
Years Ended December 31, |
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2021 |
2020 |
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$ |
% |
$ |
% |
|||||||||||||
Revenues |
$ | 62,237 | 100.0 | % | $ | 35,160 | 100.0 | % | ||||||||
Cost of revenues |
64,130 | 103.0 | % | 46,977 | 133.6 | % | ||||||||||
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Gross loss |
(1,893 | ) | (3.0 | )% | (11,817 | ) | (33.6 | )% | ||||||||
Operating expenses: |
||||||||||||||||
Research and development, net |
41,765 | 67.1 | % | 19,142 | 54.4 | % | ||||||||||
Selling, general and administrative |
58,395 | 93.8 | % | 23,993 | 68.2 | % | ||||||||||
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Total operating expenses |
100,160 | 160.9 | % | 43,135 | 122.6 | % | ||||||||||
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Operating loss |
(102,053 | ) | (163.9 | )% | (54,952 | ) | (156.2 | )% | ||||||||
Other income (expense): |
||||||||||||||||
Interest income (expense), net |
(6,128 | ) | (9.8 | )% | 224 | 0.6 | % | |||||||||
Gain (loss) on foreign exchange |
(567 | ) | (0.9 | )% | 2,420 | 6.9 | % | |||||||||
Change in fair value of liability classified warrants |
(15,294 | ) | (24.6 | )% | (2,417 | ) | (6.9 | )% | ||||||||
Other income (expense), net |
(798 | ) | (1.3 | )% | 187 | 0.5 | % | |||||||||
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Total other income (expense), net |
(22,787 | ) | (36.6 | )% | 414 | 1.1 | % | |||||||||
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Loss before income taxes |
(124,840 | ) | (200.5 | )% | (54,538 | ) | (155.1 | )% | ||||||||
Benefit (provision) for income taxes |
7,520 | 12.1 | % | (467 | ) | (1.3 | )% | |||||||||
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Net loss |
$ | (117,320 | ) | (188.4 | )% | $ | (55,005 | ) | (156.4 | )% | ||||||
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Years Ended December 31, |
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(in thousands, except percentages) |
2021 |
2020 |
$ Change |
% Change |
||||||||||||
Revenues |
$ | 62,237 | $ | 35,160 | $ | 27,077 | 77 | % |
Years Ended December 31, |
||||||||||||||||
(in thousands, except percentages) |
2021 |
2020 |
$ Change |
% Change |
||||||||||||
Cost of revenues |
$ | 64,130 | $ | 46,977 | $ | 17,153 | 37 | % |
Years Ended December 31, |
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(in thousands, except percentages) |
2021 |
2020 |
$ Change |
% Change |
||||||||||||
Research and development, net |
$ | 41,765 | $ | 19,142 | $ | 22,623 | 118 | % |
Years Ended December 31, |
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(in thousands, except percentages) |
2021 |
2020 |
$ Change |
% Change |
||||||||||||
Selling, general and administrative |
$ | 58,395 | $ | 23,993 | $ | 34,402 | 143 | % |
Years Ended December 31, |
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(in thousands, except percentages) |
2021 |
2020 |
$ Change |
% Change |
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Interest income (expense), net |
$ | (6,128 | ) | $ | 224 | $ | (6,352 | ) | (2,836 | )% |
Years Ended December 31, |
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(in thousands, except percentages) |
2021 |
2020 |
$ Change |
% Change |
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Gain (loss) on foreign exchange |
$ | (567 | ) | $ | 2,420 | $ | (2,987 | ) | (123 | )% |
Years Ended December 31, |
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(in thousands, except percentages) |
2021 |
2020 |
$ Change |
% Change |
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Change in fair value of liability classified warrants |
$ | (15,294 | ) | $ | (2,417 | ) | $ | (12,877 | ) | 533 | % |
Years Ended December 31, |
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(in thousands, except percentages) |
2021 |
2020 |
$ Change |
% Change |
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Other income (expense), net |
$ | (798 | ) | $ | 187 | $ | (985 | ) | (527 | )% |
Years Ended December 31, |
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(in thousands, except percentages) |
2021 |
2020 |
$ Change |
% Change |
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Benefit (provision) for income taxes |
$ | 7,520 | $ | (467 | ) | $ | 7,987 | (1,710 | )% |
Years Ended December 31, |
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(in thousands) |
2021 |
2020 |
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Net cash provided by (used in): |
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Operating activities |
$ | (71,791 | ) | $ | (27,757 | ) | ||
Investing activities |
(92,134 | ) | (37,329 | ) | ||||
Financing activities |
799,939 | 21,478 | ||||||
Effect of exchange rate changes |
2,128 | (153 | ) | |||||
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Net increase (decrease) in cash, cash equivalents, and restricted cash |
$ | 638,142 | $ | (43,761 | ) | |||
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|
• | Fair value per share of common stock |
• | Expected volatility |
• | Expected term. |
• | Risk-free interest rate. |
• | Estimated dividend yield. |
• | Flight Heritage – First Mover Advantage: |
• | Unique Technologies: |
• | Carbon composite tanks and structures, delivering substantial mass-savings while maintaining strong structural integrity; |
• | An electric turbo-pump fed rocket engine that delivers high-performance while removing the complexity associated with traditional gas generator cycle engines; |
• | We believe we were the first company to 3D print an orbital rocket engine, and as of December 31, 2021 have flight heritage with over 250 engines launched to space. We leverage our unique 3D printing capabilities beyond engines, to enable ultra-rapid design and testing of new flight hardware and dramatically shorten our time-to-market; |
• | A unique kick stage that delivers spacecraft to precise and individual orbits increasing deployment flexibility and cost effectiveness for our customers. The kick stage can also be utilized as a fully-featured spacecraft, enabling hosted payload opportunities for our customers and for our own constellation applications. |
• | Deep Vertical Integration: |
• | Integrated Design and Test Capabilities: time-to-market |
• | Private Launch Complex: LC-1 in Mahia, New Zealand. This launch complex can support up to 120 launches every year, which is significantly more than the current annual total number of launches from all U.S. spaceports combined. By operating our own private launch complex, we have eliminated the availability issues commonly faced by other launch providers competing for a limited number of slots on shared launch complexes that they do not control. |
• | A complete end-to-end on-orbit constellation management services, Rocket Lab is amassing the strategic keys to space. |
• | Leverage our market position as the first U.S. commercially operational dedicated small launch provider with NASA Category 1 certification and 20 successful launches and 109 spacecraft deployed as of December 31, 2021, to win increasing numbers of launch services contracts and be entrusted with higher value payloads to drive an increase in our average selling price of our launch services. |
• | Expand our addressable launch market with the development of the medium lift Neutron launch vehicle, where the additional lift capacity will enable significantly higher revenue per launch. |
• | Apply world-class manufacturing scaling and cost-reduction capabilities to the production of our spacecraft components and subsystems to capture large constellation design win opportunities and increasing market share. |
• | Expand our portfolio of strategic components for spacecraft by commercializing solutions developed for our launch vehicles and family of Photon spacecraft, including; avionics subsystems, radios and batteries. |
• | Leverage our proven Photon spacecraft platform to provide streamlined hosted payload and technology demonstration capabilities in low Earth orbit to commercial and government customers without the need for customers to procure separately designed and built third-party spacecraft buses. |
• | Build upon ongoing interplanetary Photon spacecraft development efforts as well as our announced Neutron launch vehicle development to expand our addressable market for interplanetary scientific and commercial missions. |
• | Leverage our cost and frequency advantaged “access to space,” enabled by our established launch assets and proven capabilities, to further penetrate the available market for on-orbit constellation management. |
• | Launch Services: LC-1, which is our private launch complex in Mahia, New Zealand, and, upon certification of our automated flight termination system software by NASA, will be able to commence launches from LC-2 at NASA’s Wallops Flight Facility, at Wallops Island, Virginia. |
• | Space Systems: on-orbit operations. With our end-to-end on-orbit management from one source, significantly streamlining their path to orbit. |
• | MAX Flight Software runs on a spacecraft flight computer and controls all aspects of spacecraft operations including guidance & control, telecommunications, commanding, telemetry, sequencing, power control, and fault protection. MAX Flight Software is flight-proven off-the-shelf |
• | ODySSy is software that runs on the spacecraft flight computer that simulates all aspects of spacecraft operations on-orbit. This enables analysis and testing of both the software and hardware on the spacecraft through all phases of a spacecraft lifecycle. |
• | SOLIS is a software tool that runs in conjunction with the industry standard Systems Tool Kit software and enables engineers to simulate all aspects of a spacecraft mission. |
• | MAX Ground Data System is software that enables command and control of spacecraft constellations on-orbit and during pre-launch testing. The software sends spacecraft commands, processes and archives telemetry, automates pass operations, and provides telemetry monitoring and alarming. |
• | MAX DevTool is a software tool that allows engineers to rapidly develop new software components within the MAX Flight Software framework. |
• | conferences and industry events at which we participate, sponsor, exhibit and speak; |
• | press releases and media engagement; |
• | social media postings; |
• | merchandising; |
• | cooperative marketing efforts with customers; and |
• | communicating our differentiated selling points and product features through marketing collateral such as our website, payload user guides, product data sheets, presentations, and high-quality launch webcasts and videos. |
• | companies providing dedicated and rideshare launch vehicles to deliver payloads to generic and custom planes/inclinations and altitude trajectories, such as Northrop Grumman, SpaceX, United Launch Alliance (a joint venture between Lockheed Martin Corporation and The Boeing Company), Virgin Orbit and established Russian, Indian, Chinese, European and Japanese launch providers; |
• | companies that are reported to have plans to provide launch vehicles that can deliver payloads to a range of planes/inclinations and altitude trajectories; |
• | companies providing spacecraft solutions, such as Airbus, Lockheed, Boeing, General Atomics, General Dynamics, Maxar Technology, Northrop Grumman, Raytheon Technologies, Thales Alenia Space, Astro Digital, Tyvak and York Space Systems; and |
• | companies providing spacecraft components in the commercial marketplace, such as Ball Aerospace, Raytheon, Collins Aerospace, Bradford Space, Honeywell Aerospace and GOMSpace. |
• | flight heritage and reliability; |
• | delivery schedule; |
• | ability to customize products to meet specific needs of the customer; |
• | performance and technical features; |
• | price; and |
• | customer experience. |
Name |
Age |
Position(s) | ||||
Executive Officers |
||||||
Peter Beck . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
45 | President, Chief Executive Officer and Chairman | ||||
Adam Spice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
53 | Chief Financial Officer | ||||
Shaun O’Donnell . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
44 | Executive Vice President, Global Operations | ||||
Arjun Kampani. . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
50 | Senior Vice President and General Counsel and Corporate Secretary | ||||
Non-Employee Directors |
||||||
Alex Slusky . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
54 | Director | ||||
David Cowan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
56 | Director | ||||
Michael Griffin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
72 | Director | ||||
Sven Strohband . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
48 | Director | ||||
Matt Ocko . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
53 | Director | ||||
Merline Saintil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
45 | Director | ||||
Jon Olson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
68 | Director |
• | the Class I directors, are Jon Olson, Merline Saintil, and Alex Slusky, and their terms will expire at the 2022 annual meeting of stockholders; |
• | the Class II directors, are Michael Griffin and Matt Ocko, and their terms will expire at the 2023 annual meeting of stockholders; and |
• | the Class III directors, are Peter Beck, David Cowan, and Sven Strohband, and their terms will expire at the 2024 annual meeting of stockholders. |
• | Reviewing and reassessing the adequacy of the Audit Committee charter; |
• | appointing, terminating and selecting a firm to serve as our independent registered public accounting firm to audit our financial statements; |
• | ensuring the independence of the independent registered public accounting firm; |
• | overseeing the work of the independent registered public accounting firm; |
• | considering the adequacy of our internal controls; |
• | Reviewing any reports made by the Chief Executive Officer and Chief Financial Officer of the Company to the Audit Committee with respect to (1) any significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting that are reasonable likely to adversely affect the Company’s ability to record, process, summarize and report financial information required to be disclosed by the Company in the reports that is files or submits under the Exchange Act, and (2) any fraud involving management or other employees who have a significant role in the Company’s internal control over financial reporting; |
• | reviewing related-party transactions that are material or otherwise implicate disclosure requirements; and |
• | approving, or as permitted, pre-approving all audit and non-audit services to be performed by the independent registered public accounting firm. |
• | reviewing and reassessing the adequacy of the Compensation Committee charter; |
• | reviewing and approving the compensation and the terms of any compensatory agreements of our Chief Executive Officer and our other non-chief executive officers; |
• | reviewing and recommending to the Board the compensation of its directors; |
• | administering our stock and equity incentive plans; |
• | reviewing and approving, or making recommendations to the Board with respect to, incentive compensation and equity plans; |
• | determining and approving any employment agreements, severance arrangements, retirement arrangements and special or supplemental benefits for each executive officer of the Company, including perquisite benefits; |
• | establishing Rocket Lab’s overall compensation philosophy; and |
• | such other functions as are required to comply with Nasdaq listing rules. |
• | reviewing and reassessing the adequacy of the Nominating and Corporate Governance Committee charter; |
• | determining and, at least annually reviewing the specific minimum qualifications that the Nominating and Corporate Governance Committee believes must be met by a Nominating and Corporate Governance Committee recommended nominee; |
• | establishing a policy with regard to the consideration of director candidates recommended by stockholders and establish procedures to be followed by securityholders in submitting recommendations for director candidates to the Nominating and Corporate Governance Committee; |
• | identifying and recommending candidates for membership on the Board; |
• | recommending individuals to the Board for nomination for election as directors at each annual meeting of stockholders or for appointment as directors by the Board to fill any vacancy on the Board; |
• | recommending to the Board directors for appointment as chairperson and as members of Board committees; and |
• | reviewing all director nominations and proposals submitted to the Company by its stockholders, determine whether the nomination or proposal was submitted in a timely manner. |
Annual Retainer for Board Membership |
||||
Annual service on the board of directors |
$ | 35,000 | ||
Additional retainer for annual service as non-executive chairperson |
$ | 27,500 | ||
Additional retainer for annual service as a lead director of the board of directors |
$ | 17,000 | ||
Additional Annual Retainer for Committee Membership |
||||
Annual service as audit committee chairperson |
$ | 20,000 | ||
Annual service as member of the audit committee (other than chair) |
$ | 10,000 | ||
Annual service as compensation committee chairperson |
$ | 14,000 | ||
Annual service as member of the compensation committee (other than chair) |
$ | 6,000 | ||
Annual service as nominating and governance committee chairperson |
$ | 8,000 | ||
Annual service as member of the nominating and governance committee (other than chair) |
$ | 4,000 |
Name |
Fees Paid or Earned in Cash ($) |
Stock Awards ($) (1) |
Total ($) |
|||||||||
David Cowan (2) |
13,677 | — | 13,677 | |||||||||
Michael Griffin (3) |
43,321 | — | 43,321 | |||||||||
Matt Ocko (4) |
— | — | — | |||||||||
Jon Olson (5) |
37,868 | 2,792,800 | 2,830,668 | |||||||||
Merline Saintil (6) |
41,956 | 2,792,800 | 2,834,756 | |||||||||
Alex Slusky (7) |
13,677 | — | 13,677 | |||||||||
Sven Strohband (8) |
— | — | — |
(1) | The amounts reported represent the aggregate grant date fair value of the restricted stock units granted to our directors during 2021, calculated in accordance with FASB ASC Topic 718, assuming that the liquidity- based vesting condition was satisfied. Such grant date fair values do not take into account any estimated forfeitures. Assumptions used in the calculation of these amounts are included in Note 2 to our financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021. These amounts do not reflect the actual economic value that may be realized by the directors upon the vesting or settlement of the restricted stock units, or the sale of the common stock underlying such awards. |
(2) | As of December 31, 2021, Mr. Cowan did not hold any outstanding equity awards. |
(3) | As of December 31, 2021, Dr. Griffin held 608,256 restricted stock units. |
(4) | As of December 31, 2021, Mr. Ocko did not hold any outstanding equity awards. |
(5) | Mr. Olson joined our Board on in June 2021. As of December 31, 2021, Mr. Olson held 362,386 restricted stock units. |
(6) | Ms. Saintil joined our Board in June 2021. As of December 31, 2021, Ms. Saintil held 362,386 restricted stock units. |
(7) | Mr. Slusky joined our Board in connection with the consummation of the Business Combination. As of December 31, 2021, Mr. Slusky did not hold any outstanding equity awards. |
(8) | As of December 31, 2021, Dr. Strohband did not hold any outstanding equity awards. |
• | Peter Beck, our President and Chief Executive Officer; |
• | Adam Spice, our Chief Financial Officer; and |
• | Shaun O’Donnell, our Executive Vice President, Global Operations. |
Name and Principal Position |
Year |
Salary ($) |
Bonus ($) |
Stock Awards ($) |
Option Awards ($) |
All Other Compensation ($) |
Total ($) |
|||||||||||||||||||||
Peter Beck President Chief Executive Officer and Chairman |
2021 | 306,459 | — | — | — | 18,788 | (1) |
325,246 | ||||||||||||||||||||
|
2020 |
|
327,000 | — | — | — | 46,434 | 373,434 | ||||||||||||||||||||
Adam Spice Chief Financial Officer |
2021 | 315,774 | — | — | 4,707,448 | (2) |
6,168 | (3) |
5,029,390 | |||||||||||||||||||
2020 | 309,000 | 123,600 | — | — | 6,747 | 439,347 | ||||||||||||||||||||||
Shaun O’Donnell Executive Vice President, Global Operations |
2021 | 232,580 | — | 4,934,039 | (4) |
— | — | 5,166,619 | ||||||||||||||||||||
|
2020 |
|
248,000 | 99,280 | — | — | — | 347,280 |
(1) | Represents the incremental cost to us of Mr. Beck’s personal use of a Company car ($17,609) and cell phone reimbursements ($1,179). |
(2) | Represents the incremental fair value, calculated in accordance with FASB ASC Topic 718, resulting from the modification to Mr. Spice’s options to purchase 558,769 shares of Company common stock to provide for cash settlement in connection with the Business Combinations and the management redemptions, as described in more detail below under Narrative Disclosure to the Summary Compensation Table – Equity Incentive Compensation. |
(3) | Represents the Company’s matching contributions to Mr. Spice’s 401(k) account. |
(4) | Represents the incremental fair value, calculated in accordance with FASB ASC Topic 718, resulting from the modification to Mr. O’Donnell’s 498,177 shares of Company common stock to provide for cash settlement in connection with the Business Combinations and the management redemptions, as described in more detail below under Narrative Disclosure to the Summary Compensation Table – Equity Incentive Compensation. |
Option Awards (1) |
Stock Awards (1) |
|||||||||||||||||||||||||||
Name |
Vesting Commencement Date |
Number of Securities Underlying Unexercised Options (#) Exercisable |
Number of Securities Underlying Unexercised Options (#) Unexercisable |
Option Exercise Price ($) |
Option Expiration Date |
Number of Shares or Units of Stock That Have Not Vested (#) |
Market Value of Shares or Units of Stock That Have Not Vested ($) (2) |
|||||||||||||||||||||
Peter Beck |
— | — | — | — | — | — | — | |||||||||||||||||||||
Adam Spice |
5/25/2018 | 4,529,938 | 591,714 | (3) |
1.09 | 8/03/2028 | ||||||||||||||||||||||
Shaun O’Donnell |
8/03/2018 | 1,436,590 | 287,318 | (4) |
1.09 | 8/03/2028 | 724,772 | (5) |
8,900,200 |
(1) | Each equity award is subject to the terms of our 2013 Plan. The equity awards are subject to certain acceleration of vesting provisions pursuant to the Executive Severance Plan, as applicable. |
(2) | Based on the closing market price of a share of our common stock on December 31, 2021, which was $12.28. |
(3) | 1/4 of the shares subject to the stock option vest on the one year anniversary of the vesting commencement date, and 1/48 of the shares subject to the stock option vest on a monthly basis each month thereafter, in each case, subject to the NEO’s continuous service relationship with Rocket Lab through each applicable vesting date. |
(4) | 1/48 of the shares subject to the stock option vest on a monthly basis each month following the first anniversary of the vesting commencement date, subject to the NEO’s continuous service relationship with us through each applicable vesting date. |
(5) | The restricted stock units are subject to both a time-based vesting condition and a liquidity-based vesting condition, both of which must be satisfied prior to the expiration date before the restricted stock units will be deemed vested. The time-based vesting condition is satisfied as follows: 25% of the restricted stock units shall satisfy the Time Condition on the first March 1st, May 22nd, August 22nd or November 22nd (each, a vesting date) following the first anniversary of the vesting commencement date, subject to the NEO’s continuous service relationship with Rocket Lab through each applicable vesting date. Thereafter, the remaining 75% of the restricted stock units satisfy the time-based vesting condition in 12 equal quarterly installments on each vesting date thereafter, in each case subject to the NEO’s continuous service relationship with us through each applicable vesting date. The restricted stock units will satisfy the liquidity based vesting condition on the first to occur of (i) a sale event (as defined in the 2013 Plan) or (ii) Rocket Lab’s initial public offering (as defined in the 2013 Plan), in either case, prior to the expiration date. As of December 31, 2021, the liquidity-based vesting condition had not been satisfied. |
• | each person who is the beneficial owner of more than 5% of the outstanding common stock; |
• | each of our named executive officers and directors; and |
• | all of our current executive officers and directors as a group. |
Name and Address of Beneficial Owner (1) |
Number of Shares |
% of Voting Power |
||||||
Directors and Executive Officers: |
||||||||
Peter Beck (2) |
54,551,250 | 11.8 | % | |||||
Adam Spice (3) |
5,121,651 | 1.1 | % | |||||
Shaun O’Donnell (4) |
1,832,791 | * | ||||||
Matt Ocko (5) |
10,132,385 | 2.2 | % | |||||
David Cowan (6) |
383,149 | * | ||||||
Michael Griffin (7) |
— | — | ||||||
Sven Strohband (8) |
67,552 | * | ||||||
Jon Olson (7) |
— | — | ||||||
Merline Saintil (7) |
— | — | ||||||
Alex Slusky (9) |
— | — | ||||||
All directors and executive officers as a group |
72,088,778 | 15.3 | % | |||||
Five Percent Holders: |
||||||||
Entities Affiliated with Khosla Ventures (10) |
106,863,617 | 23.0 | % | |||||
Entities Affiliated with Bessemer Venture Partners (11) |
73,308,472 | 15.8 | % | |||||
Future Fund Investment Company No. 5 (12) |
42,364,939 | 9.1 | % |
* | Less than 1% |
(1) | Unless otherwise noted, the business address of each of the directors and officers is 3881 McGowen Street, Long Beach, CA 90808. |
(2) | Represents shares held by Equatorial Trust, which is a family trust established by Peter Beck. Peek Street Equatorial Trustee Limited is sole trustee of Equatorial Trust and Peter Beck, Kerryn Beck and Warren Butler are the directors of Peek Street Equatorial Trustee Limited. Equatorial Trust and Peek Street Equatorial Trustee Limited each possess sole voting and investment power and Peter Beck, Kerryn Beck and Warren Butler each possess shared voting and investment power over the shares held by Equatorial Trust and, accordingly, also have beneficial ownership of such shares. |
(3) | Represents shares of common stock issuable upon exercise of stock options exercisable within 60 days of April 27, 2022. |
(4) | Includes 1,652,078 shares of common stock issuable upon exercise of stock options exercisable within 60 days of April 27, 2022, which represents the vested portion as of 60 days from such date of the total 1,723,908 stock options held by Mr. O’Donnell. Excludes 724,772 shares of common stock issuable upon settlement of restricted stock units held by Mr. O’Donnell where settlement remains contingent upon satisfaction of a liquidity based vesting condition. |
(5) | Matt Ocko, a member of our Board, is a partner at DCVC. DCVC’s holdings consist of (i) 2,929,350 shares of common stock issued in the Business Combination upon the conversion of shares of Rocket Lab stock held by Data Collective IV, L.P., or DCVC IV, and (ii) 7,203,035 shares of common stock issued in the Business Combination upon the conversion of shares of Rocket Lab stock held by DCVC Opportunity Fund II, L.P., or DCVC Opportunity Fund II. Data Collective IV GP, LLC, or DCVC IV GP, is the general partner of DCVC IV, and DCVC Opportunity Fund II GP, LLC, or DCVC Opportunity Fund II GP, is the general partner of DCVC Opportunity Fund II. Zachary Bogue and Matt Ocko are the managing members of each of DCVC IV GP and DCVC Opportunity Fund II GP and share voting and dispositive power over the shares held by DCVC IV and DCVC Opportunity Fund II. Mr. Ocko disclaims beneficial ownership interest of the securities held by DCVC IV and DCVC Opportunity Fund II except to the extent of his pecuniary interest therein, if any. The address of the entities listed herein is 270 University Avenue, Palo Alto, California 94301. |
(6) | David Cowan, a member of our Board, is a partner at Bessemer Venture Partners. Mr. Cowan disclaims beneficial ownership interest of the securities held by the Bessemer Entities (as defined below) referred to in footnote 12 below, except to the extent of his pecuniary interest, if any, in such securities by virtue of his interest in Deer VIII L.P. (as defined below) and his indirect limited partnership interest in the Bessemer Entities. |
(7) | Excludes shares of common stock issuable upon settlement of restricted stock units where settlement remains contingent upon satisfaction of a liquidity based vesting condition. |
(8) | Shares held in a trust for the benefit of Sven Strohband and his family. Dr Strohband, a member of our Board, is a partner at Khosla Ventures. Dr. Strohband received such shares in a distribution by Khosla Ventures V, L.P., Khosla Ventures Seed B, L.P. and Khosla Ventures Seed B (CF), L.P. to the limited and general partners. |
(9) | Does not include any shares that may be deemed to be indirectly owned by Mr. Slusky because of his indirect ownership interest in the Sponsor or in Vector Acquisition Partners Aggregator, L.L.C. |
(10) | Consists of (i) 2,746,629 shares of common stock held by Khosla Ventures Seed B CF L.P., (ii) 48,386,526 shares of common stock held by Khosla Ventures Seed B L.P., (iii) 52,371,162 shares of common stock held by Khosla Ventures V L.P. and (iv) 3,359,300 shares of common stock held by VK Services, LLC. Khosla Ventures Seed Associates B, LLC (“KVA Seed B”) is the general partner of Khosla Ventures Seed B (CF), L.P. (“KV Seed B (CF)”) and Khosla Ventures Seed B, L.P. (“KV Seed B”). Vinod Khosla is the managing member of VK Services, LLC (“VK Services”), which is the sole manager of KVA Seed B (CF). Each of KVA Seed B, VK Services and Vinod Khosla may be deemed to possess voting and investment control over such securities held by KV Seed B (CF) and KV Seed B, and each of KVA Seed B, VK Services and Vinod Khosla may be deemed to have indirect beneficial ownership of such securities held by KV Seed B (CF) and KV Seed B. Each of KVA Seed B, VK Services and Vinod Khosla disclaims beneficial ownership of such shares, except to the extent of his or its respective pecuniary interests therein. Khosla Ventures Associates V, LLC (“KVA V”) is the general partner of Khosla Ventures V, L.P. (“KV V”). Vinod Khosla is the managing member of VK Services, which is the sole manager of KVA V. Each of KVA V, VK Services and Vinod Khosla may be deemed to possess voting and investment control over such securities held by KV V, and each of KVA V, VK Services and Vinod Khosla may be deemed to have indirect beneficial ownership of such securities held by KV V. Each of KVA V, VK Services and Vinod Khosla disclaims beneficial ownership of such shares, except to the extent of his or its respective pecuniary interests therein. Sven Strohband, a member of our Board, is a partner at Khosla Ventures. The principal business address of the entities is c/o Khosla Ventures, 2128 Sand Hill Road, Menlo Park, CA 94025. |
(11) | Consists of (i) 40,026,429 shares of common stock held by Bessemer Venture Partners VIII Institutional L.P. (“Bessemer VIII Institutional”), and (ii) 33,282,043 shares of common stock held by Bessemer Venture Partners VIII L.P. (“Bessemer VIII” and, together with Bessemer VIII Institutional, the “Bessemer Entities”). Deer VIII & Co. L.P. (“Deer VIII L.P.”) is the general partner of the Bessemer Entities. Deer VIII & Co. Ltd. (“Deer VIII Ltd.”) is the general partner of Deer VIII L.P. Robert P. Goodman, David Cowan, Jeremy Levine, Byron Deeter and Robert M. Stavis are the directors of Deer VIII Ltd. and hold the voting and dispositive power for the Bessemer Entities. Investment and voting decisions with respect to the shares held by the Bessemer Entities are made by the directors of Deer VIII Ltd. acting as an investment committee. The address for each of the Bessemer Entities is c/ o Bessemer Venture Partners, 1865 Palmer Avenue, Suite 104, Larchmont, NY 10538. |
(12) | Consists of 42,364,939 shares of common stock held by the Northern Trust Company. Shares are held by The Northern Trust Company in its capacity as custodian for Future Fund Investment Company No.5 Pty Ltd (ABN 134 338 926) (FFIC 5). FFIC 5 is a wholly owned subsidiary of the Future Fund Board of Guardians. Investment and voting decisions for the Future Fund are made by the Future Fund Board of Guardians, which is governed by a non-executive board comprised of three or more individuals, and therefore no individual is the beneficial owner of the shares held by Future Fund. The principal business address of the Future Fund is Level 14, 447 Collins Street, Melbourne VIC 3000. |
• | Up to 2,676,864 shares of common stock representing: |
• | 1,720,841 shares of common stock issued to the Selling Securityholders pursuant to the PSC Acquisition; and |
• | up to 956,023 PSC Earnout Shares. |
Selling Securityholders |
Shares of Common Stock Beneficially Owned Prior to this Offering |
Earnout Shares** |
Number of Shares of Common Stock Being Offered |
Shares of Common Stock Beneficially Owned After the Offered Shares of Common Stock are Sold | ||||||||||||||
Number |
Percentage | |||||||||||||||||
Donald Gibbons (1) |
17,243 | 9,579 | 26,822 | — | * | |||||||||||||
Francis Bradford Haughey (2) |
17,243 | 9,579 | 26,822 | — | * | |||||||||||||
Kathleen Holemans (3) |
68,971 | 38,318 | 107,289 | — | * | |||||||||||||
Walter Holemans (4) |
905,252 | 502,918 | 1,408,170 | — | * | |||||||||||||
Donald Kruelski (5) |
17,243 | 9,579 | 26,822 | — | * | |||||||||||||
J. (John) Bruce McKissock (6) |
396,587 | 220,326 | 616,913 | — | * | |||||||||||||
Joseph Reid (7) |
212,088 | 117,827 | 329,915 | — | * | |||||||||||||
Michael Whalen (8) |
86,214 | 47,897 | 134,111 | — | * |
* | less than 1% |
** | represents the PSC Earnout Shares. |
1. | The principal business address of this individual is 620 Old San Francisco Rd., Sunnyvale, CA 94086. |
2. | The principal business address of this individual is 4424 Ridge Street, Chevy Chase, MD 20815. |
3. | The principal business address of this individual is 226 N. Columbus Street, Arlington, VA 22203. |
4. | The principal business address of this individual is 4826 Alton Place NW, Washington, DC 20016. |
5. | The principal business address of this individual is 944 Barton Oaks Place, Herndon, VA 20170. |
6. | The principal business address of this individual is 74 North Clinton Street, Doylestown, PA 18901. |
7. | The principal business address of this individual is 822 S. Arlington Mill Dr., Apt 204, Arlington, VA 22204. |
8. | The principal business address of this individual is 17700 Kirk Lane, Rockville, MD 20853. |
Stockholder |
Shares of Series E-1 Convertible Preferred Stock |
Total Purchase Price |
||||||
Khosla Ventures (1)(2) |
63,428 | $ | 1,999,986 | |||||
DCVC (3) |
31,714 | $ | 999,993 | |||||
Bessemer Ventures Partners (4)(5) |
47,571 | $ | 1,499,989 |
(1) | Affiliates of Khosla Ventures holding Rocket Lab securities, whose shares are aggregated for purposes of reporting the above share ownership information, are Khosla Ventures Seed B, LP, Khosla Ventures Seed B (CF), LP, and Khosla Ventures V, LP. Affiliates of Khosla Ventures beneficially own approximately 31.7% of our outstanding capital stock as of June 7, 2021. |
(2) | Sven Strohband, a member of our Board, is a partner at Khosla Ventures. |
(3) | Matt Ocko, a member of our Board, is a senior managing partner at DCVC. |
(4) | Affiliates of Bessemer Ventures Partners holding Rocket Lab securities, whose shares are aggregated for purposes of reporting the above share ownership information, are Bessemer Venture Partners VIII Institutional L.P. and Bessemer Venture Partners VIII L.P. Affiliates of Bessemer Venture Partners beneficially own approximately 22.5% of our outstanding capital stock as of June 7, 2021. |
(5) | David Cowan, a member of our Board, is a partner at Bessemer Venture Partners. |
• | Shelf registration rights . Within 45 calendar days after the Closing Date, Rocket Lab is required to file a shelf registration statement pursuant to Rule 415 of the Securities Act and use commercially reasonable efforts to cause such registration statement to be declared effective as promptly as reasonably practicable after the initial filing thereof, but in no event later than the earlier of (a) the 90th calendar day following the filing date thereof if the SEC notifies us that it will “review” the Registration Statement and (b) the 10th business day after the date we are notified (orally or in writing, whichever is earlier) by the SEC that the registration statement will not be “reviewed” or will not be subject to further review. At any time we have an effective shelf registration statement with respect to registrable securities of the Sponsor and certain other holders who previously held Class B ordinary shares (the “Sponsor Holders”) and the other parties thereto who hold our common stock (the “New Holders”), a holder may make a written request to effect an underwritten shelf takedown provided that such holder reasonably expects the aggregate gross proceeds in excess of $50,000,000 from such underwritten shelf takedown. |
• | Underwritten offering rights . At any time when there is an effective shelf registration statement, any holders of registrable securities may request to sell all or a portion of their registrable securities in an underwritten offering and we will facilitate such offerings; provided that we will only have such obligation if the registrable securities proposed to be sold by the holders is at least $50 million. Additionally, each of the holders may not demand more than one underwritten offering within any six month period or two underwritten offerings within any 12-month period, for an aggregate of not more than four underwritten offerings within any 12-month period. We are required, upon the written request of (i) the Sponsor and certain other holders who are party to the current amended and restated registration rights agreement who previously held ordinary shares of Vector (ii) the New Holders, to file a registration statement and use reasonable best efforts to effect the registration of all or part of their registrable securities. Rocket Lab is not obligated to effect any demand registration during the period starting with the date 60 days prior to the date of filing of, and ending on a date one hundred and twenty (120) days after the effective date of a registration, provided that we are only required to file such registration statement twice per calendar year for each of the Sponsor, Sponsor members and Rocket Lab holders. |
• | Piggyback rights . At any time after the Closing Date, if we propose to conduct a registered offering of, or file a registration statement to register any of its equity securities under the Securities Act or to conduct a public offering, either for its own account or for the account of any other person, subject to certain exceptions, the holders of registrable securities under the Second Amended and Restated Registration Rights Agreement are entitled to include their registrable securities in such registered offering or registration statement. These piggyback rights will not be available if there is an effective |
shelf registration statement available for the resale of holders’ registrable securities at such time. |
• | Expenses and indemnification . We will bear all expenses incident to registering the shares, including any underwritten offerings, except such expenses shall not include any selling expenses such as underwriters’ commissions and discounts, brokerage fees, underwriter marking costs and legal fees incurred by the holders above a specified amount. The Second Amended and Restated Registration Rights Agreement contains customary cross-indemnification provisions, under which we are obligated to indemnify holders of registrable securities in the event of material misstatements or omissions in the registration statement attributable to us, and holders of registrable securities are obligated to indemnify us for material misstatements or omissions attributable to them. |
• | Registrable securities . Our securities shall cease to be registrable securities upon the earliest to occur of: a registration statement with respect to the sale of such securities shall have become effective under the Securities Act and such securities shall have been disposed of in accordance with such registration statement, such securities shall have been transferred, such securities shall have ceased to be outstanding, such securities have been sold without registration pursuant to Section 4(a)(1) of the Securities Act or Rule 145, such securities have been sold to, or through, a broker, dealer or underwriter in a public securities transaction. |
• | Lock-up |
• | Amendment/Waiver . Amendments or waivers of compliance with the terms of the Second Amended and Restated Registration Rights Agreement may occur with our consent and the consent of the holders of a majority of the total registrable securities and, for so long as the Sponsor and its affiliates or any Rocket Lab stockholder party to the agreement, holds at least one percent of our outstanding shares of common stock, the Sponsor and such Rocket Lab stockholder, as applicable. |
• | 1.0% of the shares of our common stock then outstanding as shown by the most recent report or statement published by us; |
• | the average weekly reported volume of trading in our common stock on all national securities exchanges and/or reported through the automated quotation system of a registered securities association during the four calendar weeks preceding the filing of the notice required to be filed by the seller under Rule 144 or if no such notice is required, the date of receipt of the order to execute the transaction by the broker or the date of execution of the transaction directly with a market maker; or |
• | the average weekly volume of trading in such securities reported pursuant to an effective transaction report plan or an effective national market system plan, as defined in Regulation NMS under the Exchange Act, during the four week period described in the preceding bullet. |
• | the issuer of the securities that was formerly a shell company has ceased to be a shell company; |
• | the issuer of the securities is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act; |
• | the issuer of the securities has filed all Exchange Act reports and material required to be filed, as applicable, during the preceding twelve months (or such shorter period that the issuer was required to file such reports and materials), other than Form 8-K reports; and |
• | at least one year has elapsed from the time that the issuer filed current Form 10 type information with the SEC reflecting its status as an entity that is not a shell company. |
• | the conditions set forth under “Restrictions on the Use of Rule 144 by Shell Companies or Former Shell Companies” are met; and |
• | either (i) the sale occurs at least 90 days after the securities were acquired in the merger and the conditions applicable to resales under Rule 144(b)(2), other than the notice requirement, are satisfied or (ii) for a person who is not an affiliate of ours on the date of sale (and has not been an affiliate of ours within three months prior to the date of sale), either (A) at least one year has elapsed since the securities were acquired in the merger or (B) if we satisfy the current public information requirements set forth in Rule 144, at least six months have elapsed since the securities were acquired in the merger. |
• | block trades (which may include cross trades) in which the broker or dealer so engaged will attempt to sell the securities as agent but may position and resell a portion of the block as principal to facilitate the transaction; |
• | purchases by a broker or dealer as principal and resale by the broker or dealer for its own account; |
• | an exchange distribution or secondary distribution in accordance with the rules of any stock exchange on which the securities may be listed; |
• | ordinary brokerage transactions and transactions in which the broker solicits purchases; |
• | an offering at other than a fixed price on or through the facilities of any stock exchange on which the securities are listed or to or through a market maker other than on that stock exchange; |
• | privately negotiated transactions, directly or through agents; |
• | short sales; |
• | through the writing of options on the securities, whether or the options are listed on an options exchange; |
• | through the distribution of the securities by any security holders to its partners, members or stockholders; |
• | one or more underwritten offerings; |
• | agreements between a broker or dealer and any Selling Stockholder to sell a specified number of the securities at a stipulated price per share; and |
• | any combination of any of these methods of sale or distribution, or any other method permitted by applicable law. |
• | the aggregate number of securities to be sold; |
• | the purchase price; |
• | the public offering price; |
• | if applicable, the names of any underwriter, agent or broker-dealer; and |
• | any applicable commissions, discounts, concessions, fees or other items constituting compensation to underwriters, agents or broker-dealers with respect to the particular transaction (which may exceed customary commissions or compensation). |
Consolidated Financial Statements |
||||
F-2 |
||||
F-3 |
||||
F-4 |
||||
F-5 |
||||
F-6 |
||||
F-7 |
December 31, |
||||||||
2021 |
2020 |
|||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | $ | ||||||
Accounts receivable, net |
||||||||
Contract assets |
||||||||
Inventories |
||||||||
Prepaids and other current assets |
||||||||
|
|
|
|
|||||
Total current assets |
||||||||
Non-current assets: |
||||||||
Property, plant and equipment, net |
||||||||
Intangible assets, net |
||||||||
Goodwill |
||||||||
Right-of-use |
||||||||
Restricted cash |
||||||||
Deferred income tax assets, net |
||||||||
Other non-current assets |
||||||||
|
|
|
|
|||||
Total assets |
$ | $ | ||||||
|
|
|
|
|||||
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) |
||||||||
Current liabilities: |
||||||||
Trade payables |
$ | $ | ||||||
Accrued expenses |
||||||||
Employee benefits payable |
||||||||
Contract liabilities |
||||||||
Current installments of long-term borrowings |
||||||||
Other current liabilities |
||||||||
|
|
|
|
|||||
Total current liabilities |
||||||||
Non-current liabilities: |
||||||||
Long-term borrowings, excluding current installments |
||||||||
Non-current lease liabilities |
||||||||
Deferred tax liabilities |
||||||||
Public and private warrant liabilities |
||||||||
Other non-current liabilities |
||||||||
|
|
|
|
|||||
Total liabilities |
||||||||
|
|
|
|
|||||
COMMITMENTS AND CONTINGENCIES (Note 16) |
||||||||
Redeemable convertible preferred stock (1) |
||||||||
Series A Preferred stock, $ |
||||||||
Series B Preferred stock, $ |
||||||||
Series C Preferred stock, $ |
||||||||
Series D Preferred stock, $ |
||||||||
Series E Preferred stock, $ |
||||||||
Series E-1 Preferred stock, $ |
||||||||
Stockholders’ equity (deficit): |
||||||||
Common stock, $ (1) |
||||||||
Additional paid-in capital |
||||||||
Accumulated deficit |
( |
) | ( |
) | ||||
Accumulated other comprehensive income |
||||||||
|
|
|
|
|||||
Total stockholders’ equity (deficit) |
( |
) | ||||||
|
|
|
|
|||||
Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit) |
$ | $ | ||||||
|
|
|
|
(1) | Shares outstanding for all periods reflect the adjustment for the Exchange Ratio as a result of the Business Combination. See Note 1, Description of Business |
Years Ended December 31, |
||||||||
2021 |
2020 |
|||||||
Revenues |
$ | $ | ||||||
Cost of revenues |
||||||||
|
|
|
|
|||||
Gross loss |
( |
) | ( |
) | ||||
Operating expenses: |
||||||||
Research and development, net |
||||||||
Selling, general and administrative |
||||||||
|
|
|
|
|||||
Total operating expenses |
||||||||
|
|
|
|
|||||
Operating loss |
( |
) | ( |
) | ||||
Other income (expense): |
||||||||
Interest income (expense), net |
( |
) | ||||||
Gain (loss) on foreign exchange |
( |
) | ||||||
Change in fair value of liability classified warrants |
( |
) | ( |
) | ||||
Other income (expense), net |
( |
) | ||||||
|
|
|
|
|||||
Total other income (expense), net |
( |
) | ||||||
|
|
|
|
|||||
Loss before income taxes |
( |
) | ( |
) | ||||
Benefit (provision) for income taxes |
( |
) | ||||||
|
|
|
|
|||||
Net loss |
$ | ( |
) | $ | ( |
) | ||
|
|
|
|
|||||
Other comprehensive income, net of tax: |
||||||||
Foreign currency translation income |
||||||||
|
|
|
|
|||||
Comprehensive loss |
$ | ( |
) | $ | ( |
) | ||
|
|
|
|
|||||
Net loss per share attributable to Rocket Lab USA, Inc.: |
||||||||
Basic and diluted |
$ | ( |
) | $ | ( |
) | ||
|
|
|
|
|||||
Weighted-average common shares outstanding: |
||||||||
Basic and diluted |
Redeemable Convertible Preferred Stock |
Common Stock |
Additional Paid-In Capital |
Accumulated Deficit |
Other Comprehensive Income (Loss) |
Total |
|||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||||||
December 31, 2019 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||||||||||||||||
Retroactive application of Exchange Ratio |
— | ( |
) | — | — | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
December 31, 2019 as adjusted |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Net loss |
— | — | — | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||
Exercise of stock options |
— | — | — | — | ||||||||||||||||||||||||||||
Stock-based compensation |
— | — | — | — | — | — | ||||||||||||||||||||||||||
Issuance of Series E-1 redeemable preferred stock for cash |
— | — | — | — | — | — | ||||||||||||||||||||||||||
Issuance of stock for acquisition |
— | — | — | — | — | — | — | |||||||||||||||||||||||||
Issuance of common stock warrant |
— | — | — | — | — | — | ||||||||||||||||||||||||||
Other comprehensive income |
— | — | — | — | — | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
December 31, 2020 |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Net loss |
— | — | — | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||
Exercise of stock options |
— | — | — | — | — | |||||||||||||||||||||||||||
Stock-based compensation |
— | — | — | — | — | — | ||||||||||||||||||||||||||
Exercise of preferred stock warrants |
— | — | — | — | — | |||||||||||||||||||||||||||
Exchange of preferred stock warrants for common stock warrants |
— | — | — | — | — | — | ||||||||||||||||||||||||||
Conversion of public warrants for common stock |
— | — | — | — | — | |||||||||||||||||||||||||||
Conversion of redeemable convertible preferred stock to common stock |
( |
) | ( |
) | — | — | ||||||||||||||||||||||||||
Issuance of stock for acquisition |
— | — | — | — | — | |||||||||||||||||||||||||||
Reverse recapitalization, net of transaction costs |
— | — | — | — | ||||||||||||||||||||||||||||
Common stock issued upon exercise of warrants |
— | — | — | — | — | — | — | |||||||||||||||||||||||||
Other comprehensive income |
— | — | — | — | — | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
December 31, 2021 |
$ | $ | $ | $ | ( |
) | $ | $ | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended December 31, |
||||||||
2021 |
2020 |
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net loss |
$ | ( |
) | $ | ( |
) | ||
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
Depreciation and amortization |
||||||||
Stock compensation expense |
||||||||
Amortization of inventory step-up |
||||||||
Loss on disposal of assets |
||||||||
Loss on debt extinguishment |
||||||||
Amortization of debt issuance costs and discount |
||||||||
Noncash lease expense |
||||||||
Noncash expense associated with liability-classified warrants |
||||||||
Deferred income taxes |
( |
) | ( |
) | ||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
( |
) | ( |
) | ||||
Contract assets |
||||||||
Inventories |
( |
) | ( |
) | ||||
Prepaids and other current assets |
( |
) | ( |
) | ||||
Other non-current assets |
( |
) | ||||||
Trade payables |
( |
) | ( |
) | ||||
Accrued expenses |
||||||||
Employee benefits payables |
( |
) | ||||||
Contract liabilities |
||||||||
Other current liabilities |
( |
) | ||||||
Non-current lease liabilities |
( |
) | ( |
) | ||||
Other non-current liabilities |
( |
) | ||||||
|
|
|
|
|||||
Net cash used in operating activities |
( |
) | ( |
) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Purchases of property, equipment and software |
( |
) | ( |
) | ||||
Cash paid for acquisitions, net of acquired cash |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net cash used in investing activities |
( |
) | ( |
) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
Proceeds from the exercise of stock options and public warrants |
||||||||
Proceeds from long-term revolving line of credit |
||||||||
Proceeds from long-term secured term loan |
||||||||
Repayments on long-term revolving line of credit |
( |
) | ||||||
Net Proceeds from issuance of Series E-1 Preferred Stock |
||||||||
Proceeds from Business Combination and PIPE Investment, net of transaction costs |
||||||||
Repurchase of shares and options from management |
( |
) | ||||||
|
|
|
|
|||||
Net cash provided by financing activities |
||||||||
Effect of exchange rate changes on cash and cash equivalents |
( |
) | ||||||
|
|
|
|
|||||
Net increase (decrease) in cash and cash equivalents and restricted cash |
( |
) | ||||||
Cash and cash equivalents, and restricted cash, beginning of period |
||||||||
|
|
|
|
|||||
Cash and cash equivalents, and restricted cash, end of period |
$ | $ | ||||||
|
|
|
|
|||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: |
||||||||
Cash paid for interest |
$ | $ | ||||||
Cash refunds/(paid) for income taxes |
( |
) | ||||||
Unpaid purchases of property, equipment and software |
||||||||
Issuance of common stock warrants and accrued issuance costs in connection with loan and security agreement |
||||||||
Unpaid transaction costs |
||||||||
Right-of-use |
||||||||
Issuance of common stock in connection with acquisition, at fair value |
||||||||
Contingent consideration assumed at acquisitions |
||||||||
Warrants assumed as part of Business Combination |
||||||||
Prepaid expenses assumed as part of Business Combination |
1. |
DESCRIPTION OF THE BUSINESS |
• | The Company repurchased $ 40,000 , $ |
• | The remaining outstanding shares of Legacy Rocket Lab common stock and redeemable convertible preferred stock were exchanged for |
• | Holders of |
initial public offering, calculated as of two business days prior to the consummation of the Business Combination, which was approximately $ |
• | The |
• | Vector warrants that were outstanding and unexercised converted into an equal number of warrants to purchase common stock of the Post Combination Company. |
• | Pursuant to subscription agreements entered into in connection with the Merger Agreement (collectively, the “Subscription Agreements”), certain investors agreed to subscribe for an aggregate of newly-issued shares of common stock in the Post Combination Company at a purchase price of $ |
Cash - Vector Trust and cash, net of redemptions |
$ | |||
Cash - PIPE Investment |
||||
Less: transaction costs and advisory fees paid |
( |
) | ||
|
|
|||
Net proceeds from Rocket Lab Business Combination |
||||
Less: Accrued transaction costs |
( |
) | ||
Plus: Prepaid expenses assumed as part of Business Combination |
||||
Less: Warrants assumed as part of Business Combination |
( |
) | ||
Less: Repurchase of Management Shares |
( |
) | ||
|
|
|||
Reverse recapitalization, net of transaction costs |
$ | |||
|
|
• | Legacy Rocket Lab stockholders considered in the aggregate have a majority interest of voting power in the Post Combination Company. |
• | Members of Legacy Rocket Lab’s board of directors comprise five of the six members of the Post Combination Company’s board of directors as of the closing of the Business Combination. |
• | Legacy Rocket Lab’s senior management continue to compose the senior management of the Post Combination Company |
• | The relative size and valuation of Legacy Rocket Lab compared to Vector. |
• | Legacy Rocket Lab’s business comprises the ongoing operations of the Post Combination Company. |
2. |
SIGNIFICANT ACCOUNTING POLICIES |
Asset Category |
Estimated Useful Lives | |
Buildings and improvements | ||
Machinery, equipment, vehicles and office furniture | ||
Computer equipment, hardware and software | ||
Launch site assets | ||
Leasehold improvements |
• | Level 1 |
• | Level 2 |
• | Level 3 |
• | Fair value per share of common stock |
• | Expected volatility |
• | Expected term |
• | Risk-free interest rate |
• | Estimated dividend yield |
3. |
REVENUES |
Year Ended December 31, 2021 |
||||||||||||
Launch Services |
Space Systems |
Total |
||||||||||
Revenues by recognition model |
||||||||||||
Point-in-time |
$ | $ | $ | |||||||||
Over-time |
||||||||||||
|
|
|
|
|
|
|||||||
Total revenue by recognition model |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|||||||
Year Ended December 31, 2020 |
||||||||||||
Launch Services |
Space Systems |
Total |
||||||||||
Revenues by recognition model |
||||||||||||
Point-in-time |
$ | $ | $ | |||||||||
Over-time |
||||||||||||
|
|
|
|
|
|
|||||||
Total revenue by recognition model |
$ | $ | $ | |||||||||
|
|
|
|
|
|
December 31, |
||||||||
2021 |
2020 |
|||||||
Contract balances |
||||||||
Accounts receivable |
$ | $ | ||||||
Contract assets |
||||||||
Contract liabilities |
2021 |
2020 |
|||||||
Contract liabilities, beginning of year |
$ | $ | ||||||
Contract liabilities assumed at acquisition |
||||||||
Customer advances received |
||||||||
Recognition of unearned revenue |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Contract liabilities, end of year |
$ | $ | ||||||
|
|
|
|
4. |
BUSINESS COMBINATIONS |
Description |
Amount |
|||
Cash and cash equivalents |
$ | |||
Accounts receivable |
||||
Intangible assets, net |
||||
Other current liabilities |
( |
) | ||
Other assets and liabilities, net |
||||
|
|
|||
Identifiable net assets acquired |
||||
Goodwill |
||||
|
|
|||
Total purchase price |
$ | |||
|
|
Type |
Estimated Life in Years |
Fair Value |
||||||
Developed technology |
$ | |||||||
In-process technology |
N/A | |||||||
Customer relationships |
||||||||
Backlog |
||||||||
Trademark and tradenames |
||||||||
Non-compete agreement |
||||||||
|
|
|||||||
Total identifiable intangible assets acquired |
$ | |||||||
|
|
Years Ended December 31, |
||||||||
Acquisition stock-based compensation |
2021 |
2020 |
||||||
Shares issued in conjunction with the acquisition |
$ | $ | ||||||
Earnout share achievement |
||||||||
|
|
|
|
|||||
Total stock compensation related to the acquisition |
$ | $ | ||||||
|
|
|
|
Description |
Amount |
|||
Cash and cash equivalents |
$ | |||
Accounts receivable |
||||
Intangible assets |
||||
Employee benefits payable |
( |
) | ||
Other assets and liabilities, net |
||||
|
|
|||
Identifiable net assets acquired |
||||
Goodwill |
||||
|
|
|||
Total purchase price |
$ | |||
|
|
Type |
Estimated Life in Years |
Fair Value |
||||||
Developed technology |
$ | |||||||
In-process technology |
N/A | |||||||
Customer relationships |
||||||||
Trademark and tradenames |
||||||||
|
|
|||||||
Total identifiable intangible assets acquired |
$ | |||||||
|
|
Description |
Amount |
|||
Cash and cash equivalents |
$ | |||
Accounts receivable |
||||
Inventories |
||||
Intangible assets |
||||
Employee benefits payable |
( |
) | ||
Contract liabilities (1) |
( |
) | ||
Other current liabilities |
( |
) | ||
Non-current deferred tax liabilities |
( |
) | ||
Other assets and liabilities, net |
||||
|
|
|||
Identifiable net assets acquired |
||||
Goodwill |
||||
|
|
|||
Total purchase price |
$ | |||
|
|
(1) | Contract liabilities was recorded under ASC 606 in accordance with ASU No. 2021-08; therefore a reduction in contract liabilities related to the estimated fair values of the acquired contract liabilities was not required. |
Type |
Estimated Life in Years |
Fair Value |
||||||
Developed technology |
$ | |||||||
In-process technology |
N/A | |||||||
Customer relationships |
||||||||
Backlog |
||||||||
Trademark and tradenames |
||||||||
|
|
|||||||
Total identifiable intangible assets acquired |
$ | |||||||
|
|
As Reported |
Acquisitions Pro-Forma (Unaudited) |
Consolidated Pro-Forma (Unaudited) |
||||||||||
2021 |
||||||||||||
Revenues |
$ | $ | $ | |||||||||
Net (loss) income |
( |
) | ( |
) | ||||||||
2020 |
||||||||||||
Revenues |
$ | $ | $ | |||||||||
Net (loss) income |
( |
) | ( |
) |
5. |
FAIR VALUE OF FINANCIAL INSTRUMENTS |
December 31, 2021 |
||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
Assets: |
||||||||||||||||
Cash equivalents: |
||||||||||||||||
Money market accounts |
$ | $ | $ | — | $ | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | $ | $ | — | $ | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities: |
||||||||||||||||
Other non-current liabilities: |
||||||||||||||||
Public and Private Warrants (Note 11) |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
December 31, 2020 |
||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
Assets: |
||||||||||||||||
Cash equivalents: |
||||||||||||||||
Money market accounts |
$ | $ | — | $ | — | $ | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | $ | — | $ | — | $ | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities: |
||||||||||||||||
Other non-current liabilities: |
||||||||||||||||
Warrants-preferred stock (Note 11) |
$ | $ | — | $ | $ | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | $ | — | $ | $ | |||||||||||
|
|
|
|
|
|
|
|
Balance, at January 1, 2020 |
$ | |||
Cost of warrants vesting during the year |
||||
Change in fair value included in earnings |
||||
|
|
|||
Balance, at December 31, 2020 |
||||
Cost of warrants vesting during the period |
||||
Change in fair value included in earnings |
||||
Exercise of warrants to purchase Legacy Rocket Lab Series C and D preferred stock |
( |
) | ||
Exchange of warrants to purchase Legacy Rocket Lab Series B preferred stock to common stock warrants |
( |
) | ||
|
|
|||
Balance, at December 31, 2021 |
$ | |||
|
|
6. |
INVENTORIES |
December 31, |
||||||||
2021 |
2020 |
|||||||
Raw materials |
$ | $ | ||||||
Work in process |
||||||||
Finished goods |
— | |||||||
|
|
|
|
|||||
Total inventories |
$ | $ | ||||||
|
|
|
|
7. |
PREPAIDS AND OTHER CURRENT ASSETS |
December 31, |
||||||||
2021 |
2020 |
|||||||
Prepaid expenses |
$ | $ | ||||||
Government grant receivables |
||||||||
Other current assets |
||||||||
|
|
|
|
|||||
Total prepaids and other current assets |
$ | $ | ||||||
|
|
|
|
8. |
PROPERTY, PLANT AND EQUIPMENT, NET |
December 31, |
||||||||
2021 |
2020 |
|||||||
Buildings and improvements |
$ | $ | ||||||
Machinery, equipment, vehicles and office furniture |
||||||||
Computer equipment, hardware and software |
||||||||
Launch site assets |
||||||||
Construction in process |
||||||||
|
|
|
|
|||||
Property, plant and equipment—gross |
||||||||
Less accumulated depreciation and amortization |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Property, plant and equipment—net |
$ | $ | ||||||
|
|
|
|
Years Ended December 31, |
||||||||
2021 |
2020 |
|||||||
Cost of revenues |
$ | $ | ||||||
Research and development, net |
||||||||
Selling, general and administrative |
||||||||
|
|
|
|
|||||
Total depreciation expense |
$ | $ | ||||||
|
|
|
|
9. |
GOODWILL AND INTANGIBLE ASSETS, NET |
Launch Services |
Space Systems |
Total |
||||||||||
Balance at December 31, 2019 |
$ | $ | $ | |||||||||
Acquisitions |
||||||||||||
Foreign currency translation adjustment |
||||||||||||
|
|
|
|
|
|
|||||||
Balance at December 31, 2020 |
||||||||||||
Acquisitions |
||||||||||||
Foreign currency translation adjustment |
||||||||||||
|
|
|
|
|
|
|||||||
Balance at December 31, 2021 |
$ | $ | $ | |||||||||
|
|
|
|
|
|
December 31, 2021 |
||||||||||||
Gross Carrying Amount |
Accumulated Amortization |
Net Carrying Amount |
||||||||||
Finite-Lived Intangible Assets |
||||||||||||
Developed Technology |
$ | $ | ( |
) | $ | |||||||
Capitalized software |
( |
) | ||||||||||
Customer relationships |
( |
) | ||||||||||
Non-compete |
( |
) | ||||||||||
Capitalized intellectual property |
( |
) | ||||||||||
Trademarks and tradenames |
( |
) | ||||||||||
Backlog |
( |
) | ||||||||||
Indefinite-Lived Intangible Assets |
||||||||||||
In-process Technology |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
$ | $ | ( |
) | $ | |||||||
|
|
|
|
|
|
|||||||
December 31, 2020 |
||||||||||||
Gross Carrying Amount |
Accumulated Amortization |
Net Carrying Amount |
||||||||||
Finite-Lived Intangible Assets |
||||||||||||
Developed technology |
$ | $ | ( |
) | $ | |||||||
Capitalized software |
( |
) | ||||||||||
Customer relationships |
( |
) | ||||||||||
Non-compete agreement |
( |
) | ||||||||||
Capitalized intellectual property |
( |
) | ||||||||||
Trademarks and tradenames |
( |
) | ||||||||||
Backlog |
( |
) | ||||||||||
Indefinite-Lived Intangible Assets |
||||||||||||
In-process research and development |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
$ | $ | ( |
) | $ | |||||||
|
|
|
|
|
|
Years Ended December 31, |
||||||||
2021 |
2020 |
|||||||
Cost of revenues |
$ | $ | ||||||
Research and development |
||||||||
Selling, general and administrative |
||||||||
|
|
|
|
|||||
Total amortization expense |
$ | $ | ||||||
|
|
|
|
2022 |
$ | |||
2023 |
||||
2024 |
||||
2025 |
||||
2026 |
||||
Thereafter |
||||
|
|
|||
Total |
$ | |||
|
|
10. |
LOAN AND SECURITY AGREEMENT |
11. |
WARRANTS |
• | in whole and not in part; |
• | at a price of $0.01 per warrant; |
• | upon a minimum of 30 days’ prior written notice of redemption to each warrant holder; and |
• | if, and only if, the closing price of the common shares equals or exceeds $18.00 per share (as adjusted) for any 20 trading days within a 30-trading day period ending three trading days before the Company sends the notice of redemption to the warrant holders. |
• | in whole and not in part: |
• | at a price of $0.10 per warrant upon a minimum of 30 days’ prior written notice of redemption provided that holders will be able to exercise their warrants on a cashless basis prior to redemption and receive that number of shares set forth in the warrant agreement determined based on the redemption date and the fair market value of the common shares; |
• | if, and only if, the closing price of the common shares equals or exceeds $10.00 per share (as adjusted) for any 20 trading days within the 30-trading day period ending three trading days before the Company sends the notice of redemption to the warrant holders; and |
• | if the closing price of the common shares for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders is less than $18.00 per share (as adjusted), the Private Warrants must also be concurrently called for redemption on the same terms as the outstanding Public Warrants, as described above. |
12. |
CAPITALIZATION |
Preferred Stock |
Dividend Rate |
Issue Price |
||||||
Series A |
$ | $ | ||||||
Series B |
$ | $ | ||||||
Series C |
$ | $ | ||||||
Series D |
$ | $ | ||||||
Series E |
$ | $ | ||||||
Series E-1 |
$ | $ |
13. |
STOCK-BASED COMPENSATION |
Years Ended December 31, |
||||||||
2021 |
2020 |
|||||||
Cost of revenues |
$ | $ | ||||||
Research and development |
||||||||
Selling, general and administrative |
||||||||
|
|
|
|
|||||
Total stock-based compensation expense |
$ | $ | ||||||
|
|
|
|
Options to Purchase Common Stock |
Weighted- Average Exercise Price per Share |
Weighted- Average Grant Date Fair Value per Share |
Weighted- Average Remaining Contract Life (In Years) |
Aggregate Intrinsic Value |
||||||||||||||||
Outstanding — at January 1, 2020 |
$ | $ | $ | |||||||||||||||||
Granted |
||||||||||||||||||||
Exercised |
( |
) | ||||||||||||||||||
Forfeited |
( |
) | ||||||||||||||||||
Expired |
( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Outstanding — at December 31, 2020 |
$ | $ | $ | |||||||||||||||||
Granted |
||||||||||||||||||||
Exercised |
( |
) | ||||||||||||||||||
Forfeited |
( |
) | ||||||||||||||||||
Expired |
( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Outstanding — at December 31, 2021 |
$ | $ | $ | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Options vested and exercisable — at December 31, 2021 |
$ | $ | $ | |||||||||||||||||
Options vested and exercisable — at December 31, 2020 |
$ | $ | $ |
2021 |
2020 |
|||||||
Fair value per share of common stock |
$ | $ | ||||||
Expected volatility |
% | % | ||||||
Risk-free interest rate |
% | % | ||||||
Expected life (years) |
||||||||
Dividend rate |
Number of Units |
Weighted- Average Grant Date Fair Value |
|||||||
Outstanding — at January 1, 2020 |
$ | |||||||
Granted |
||||||||
Forfeited |
( |
) | ||||||
|
|
|
|
|||||
Outstanding — at December 31, 2020 |
||||||||
Granted |
||||||||
Forfeited |
( |
) | ||||||
|
|
|
|
|||||
Outstanding — at December 31, 2021 |
$ | |||||||
|
|
|
|
|||||
Units expected to vest — at December 31, 2021 |
$ | |||||||
Units expected to vest — at December 31, 2020 |
$ |
14. |
EMPLOYEE BENEFITS |
15. |
LEASES |
December 31, |
||||||||||
Liabilities |
Presentation |
2021 |
2020 |
|||||||
Current: |
||||||||||
|
Other current liabilities | $ | $ | |||||||
Non-current: |
||||||||||
Operating lease liabilities |
Non-current lease liabilities |
|||||||||
|
|
|
|
|||||||
Total lease liabilities |
$ | $ | ||||||||
|
|
|
|
Years Ended December 31, |
||||||||
2021 |
2020 |
|||||||
Operating lease costs |
$ | $ | ||||||
|
|
|
|
|||||
Finance lease costs: |
||||||||
Amortization of right-of-use |
$ | — | $ | |||||
Interest on lease liabilities |
— | |||||||
|
|
|
|
|||||
Total finance lease costs |
$ | — | $ | |||||
|
|
|
|
Years Ended December 31, |
||||||||
2021 |
2020 |
|||||||
Cash paid for amounts included in the measurement of lease liabilities: |
||||||||
Operating cash flows from operating leases |
$ | $ | ||||||
Operating cash flows from finance leases |
||||||||
Right-of-use |
||||||||
Operating leases |
$ | $ |
Operating Leases |
||||
2022 |
$ | |||
2023 |
||||
2024 |
||||
2025 |
||||
2026 |
||||
Thereafter |
||||
|
|
|||
Total lease payments |
||||
Less imputed interest |
( |
) | ||
|
|
|||
Total |
$ | |||
|
|
16. |
COMMITMENTS AND CONTINGENCIES |
17. |
INCOME TAXES |
Years Ended December 31, |
||||||||
2021 |
2020 |
|||||||
US loss before income taxes |
$ | ( |
) | $ | ( |
) | ||
Foreign income before income taxes |
||||||||
|
|
|
|
|||||
Pretax loss from operations |
$ | ( |
) | $ | ( |
) | ||
|
|
|
|
Years Ended December 31, |
||||||||
2021 |
2020 |
|||||||
Current: |
||||||||
Federal |
$ | |||||||
State |
||||||||
Foreign |
||||||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
|||||
Deferred: |
||||||||
Federal |
( |
) | ||||||
State |
( |
) | ||||||
Foreign |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total |
( |
) | ( |
) | ||||
|
|
|
|
|||||
(Benefit) provision for income taxes |
$ | ( |
) | $ | ||||
|
|
|
|
Years Ended December 31, |
||||||||||||||||
2021 |
2020 |
|||||||||||||||
Federal statutory rate |
$ | ( |
) | % | $ | ( |
) | % | ||||||||
Adjustments for tax effects of: |
||||||||||||||||
Permanent differences and other |
( |
) | % | ( |
)% | |||||||||||
Warrants |
( |
)% | ( |
)% | ||||||||||||
Stock-based compensation |
( |
) | % | ( |
) | % | ||||||||||
Increase in valuation allowance |
( |
)% | ( |
)% | ||||||||||||
|
|
|
|
|||||||||||||
(Benefit) provision for income taxes |
$ | ( |
) | % | $ | ( |
)% | |||||||||
|
|
|
|
December 31, |
||||||||
2021 |
2020 |
|||||||
Deferred tax assets: |
||||||||
Accrued expenses |
$ | $ | ||||||
Inventories |
||||||||
Deferred revenue |
||||||||
Lease liability |
||||||||
Stock options |
||||||||
Warrants |
||||||||
Interest expense |
||||||||
Net operating losses |
||||||||
Tax credits |
||||||||
Other |
||||||||
|
|
|
|
|||||
Total deferred tax assets |
||||||||
Valuation allowance |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total deferred tax assets, net |
||||||||
|
|
|
|
|||||
Deferred tax liabilities: |
||||||||
Right of use asset |
( |
) | ( |
) | ||||
Depreciation and amortization |
( |
) | ||||||
Other |
( |
) | ||||||
Unrealized gain |
( |
) | ||||||
|
|
|
|
|||||
Total deferred tax liabilities |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net deferred tax assets |
$ | $ | ||||||
|
|
|
|
2021 |
2020 |
|||||||
Balance at beginning of year |
$ | $ | ||||||
Increase related to current year tax position |
||||||||
|
|
|
|
|||||
Balance at end of year |
$ | $ | ||||||
|
|
|
|
18. |
NET LOSS PER SHARE |
Years Ended December 31, |
||||||||
2021 |
2020 |
|||||||
Numerator |
||||||||
Net loss attributable to common shareholders-basic and diluted |
$ | ( |
) | $ | ( |
) | ||
Denominator |
||||||||
Weighted average common shares outstanding-basic and diluted |
||||||||
Net loss per share attributable to common stockholders-basic and diluted |
$ | ( |
) | $ | ( |
) |
December 31, |
||||||||
2021 |
2020 |
|||||||
Legacy Rocket Lab preferred stock |
||||||||
Legacy Rocket Lab preferred stock warrants |
||||||||
Legacy Rocket Lab common stock warrants |
||||||||
Stock options and restricted stock units |
||||||||
Public and Private Warrants |
19. |
SEGMENTS |
Years Ended December 31, |
||||||||||||||||
2021 |
2020 |
|||||||||||||||
Launch Services |
Space Systems |
Launch Services |
Space Systems |
|||||||||||||
Revenues |
$ | $ | $ | $ | ||||||||||||
Cost of revenues |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit (loss) |
$ | ( |
) | $ | $ | ( |
) | $ | ||||||||
|
|
|
|
|
|
|
|
20. |
CONCENTRATION OF CREDIT RISK, SIGNIFICANT CUSTOMERS AND GEOGRAPHIC INFORMATION |
December 31, |
||||||||
2021 |
2020 |
|||||||
U.S. commercial customer A |
% | % | ||||||
U.S. commercial customer B |
* | % | ||||||
International customer C |
* | % | ||||||
Commercial customer G |
% | * |
* | Accounts receivable was less than % |
December 31, |
||||||||
2021 |
2020 |
|||||||
U.S. government customer D |
* | % | ||||||
International customer E |
* | % | ||||||
U.S. commercial customer F |
* | % | ||||||
Commercial customer G |
% | % | ||||||
Commercial customer H |
% | * |
* | |
2021 |
2020 |
|||||||||||||||
Amount |
% of total revenues |
Amount |
% of total revenues |
|||||||||||||
United States |
$ | % | $ | % | ||||||||||||
Japan |
% | % | ||||||||||||||
Germany |
% | — | — | % | ||||||||||||
Rest of world |
% | % | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | % | $ | % | ||||||||||||
|
|
|
|
|
|
|
|
December 31, |
||||||||||||||||
2021 |
2020 |
|||||||||||||||
Amount |
% of Long- Lived Assets |
Amount |
% of Long- Lived Assets |
|||||||||||||
United States |
$ | % | $ | % | ||||||||||||
New Zealand |
% | % | ||||||||||||||
Canada |
% | % | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | % | $ | % | ||||||||||||
|
|
|
|
|
|
|
|
21. |
RELATED PARTY TRANSACTIONS |
22. |
SUBSEQUENT EVENTS |
Amount* |
||||
SEC registration fee |
$ | 1,702.28 | ||
Legal fees and expenses |
80,000 | |||
Accounting fees and expenses |
15,000 | |||
Printing, transfer agent and miscellaneous fees |
5,000 | |||
|
|
|||
Total |
$ | 101,702.28 | * |
* | All amounts other than SEC registration fee are estimates |
* | Filed herewith |
+ | Schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Registrant agrees to furnish supplementally a copy of any omitted schedule or exhibit to the SEC upon request. |
†† | Certain confidential portions (indicated by brackets and asterisks) have been omitted from this exhibit pursuant to Item 601(b)(10)(iv). |
‡ | Management contract or compensatory plan or arrangement. |
(i) | to include any prospectus required by Section 10(a)(3) of the Securities Act; |
(ii) | to reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement; and |
(iii) | to include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement; provided, however, that paragraphs (i), (ii) and (iii) do not apply if the registration statement is on Form S-1 and the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the registrant pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of the registration statement; |
(a) | any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424; |
(b) | any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant; |
(c) | the portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of an undersigned registrant; and |
(d) | any other communication that is an offer in the offering made by the undersigned registrant to the purchaser. |
ROCKET LAB USA, INC. | ||
By: | /s/ Peter Beck | |
Name: | Peter Beck | |
Title: | President, Chief Executive Officer and | |
Chairman |
NAME |
POSITION |
DATE | ||
/s/ Peter Beck Peter Beck |
President, Chief Executive Officer and Chairman ( Principal Executive Officer |
May 6, 2022 | ||
/s/ Adam Spice Adam Spice |
Chief Financial Officer ( Principal Financial Officer and Accounting Officer |
May 6, 2022 | ||
/s/ David Cowan David Cowan |
Director | May 6, 2022 | ||
/s/ Michael Griffin Michael Griffin |
Director | May 6, 2022 | ||
/s/ Matthew Ocko Matthew Ocko |
Director | May 6, 2022 | ||
/s/ Jon Olson Jon Olson |
Director | May 6, 2022 |
NAME |
POSITION |
DATE | ||
/s/ Merline Saintil Merline Saintil |
Director | May 6, 2022 | ||
/s/ Alex Slusky Alex Slusky |
Director | May 6, 2022 | ||
/s/ Sven Strohband Sven Strohband |
Director | May 6, 2022 |
Exhibit 5.1
|
Goodwin Procter LLP 601 Marshall Street Redwood City, CA 94063 goodwinlaw.com +1 650 752 3100 |
May 6, 2022
Rocket Lab USA, Inc.
3881 McGowen Street
Long Beach, CA 90808
Re: Securities Registered under Registration Statement on Form S-1
Ladies and Gentlemen:
We have acted as counsel to you in connection with your filing of a Registration Statement on Form S-1 (as amended or supplemented, the Registration Statement) on May 6, 2022 with the Securities and Exchange Commission pursuant to the Securities Act of 1933, as amended (the Securities Act), relating to the registration by Rocket Lab USA, Inc., a Delaware corporation (the Company), of (a) the offer and sale from time to time by selling securityholders listed in the Registration Statement under Selling Securityholders (the Selling Securityholders) of up to 1,720,841 outstanding shares (the Outstanding Resale Shares) of the Companys common stock, $0.0001 par value (Common Stock), and (b) the offer and resale from time to time by the Selling Securityholders of up to 956,023 shares of Common Stock reserved for issuance pursuant to contractual earn-out obligations of the Company pursuant to the terms of that certain Agreement and Plan of Merger dated November 15, 2021 (the PSC Merger Agreement), by and among the Company, Platinum Merger Sub, Inc., Planetary Systems Corporation, and Michael Whalen as shareholder representative (the Earnout Resale Shares).
We have reviewed such documents and made such examination of law as we have deemed appropriate to give the opinions set forth below. We have relied, without independent verification, on certificates of public officials and, as to matters of fact material to the opinions set forth below, on certificates of officers of the Company. For purposes of the opinion set forth in numbered paragraph 2, we have assumed that before the Earnout Resale Shares are issued the Company does not issue shares of Common Stock or reduce the total number of shares of Common Stock that the Company is authorized to issue under its certificate of incorporation such that the number of unissued shares of Common Stock authorized under the Companys certificate of incorporation is less than the number of Earnout Resale Shares.
Rocket Lab USA, Inc.
May 6, 2022
Page 2
The opinions set forth below are limited to the Delaware General Corporation Law.
Based on the foregoing, we are of the opinion that:
1. The Outstanding Resale Shares have been duly authorized and validly issued and are fully paid and nonassessable.
2. The Earnout Resale Shares have been duly authorized and, when and if issued pursuant to the terms of the PSC Merger Agreement, will be validly issued, fully paid and nonassessable.
This opinion letter and the opinions it contains shall be interpreted in accordance with the Core Opinion Principles as published in 74 Business Lawyer 815 (Summer 2019).
We hereby consent to the inclusion of this opinion as Exhibit 5.1 to the Registration Statement and to the references to our firm under the caption Legal Matters in the Registration Statement. In giving our consent, we do not admit that we are in the category of persons whose consent is required under Section 7 of the Securities Act or the rules and regulations thereunder.
Very truly yours, |
/s/ Goodwin Procter LLP |
GOODWIN PROCTER LLP |
EXHIBIT 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the use in this Registration Statement on Form S-1 of our report dated March 23, 2022, relating to the financial statements of Rocket Lab USA, Inc. We also consent to the reference to us under the heading Experts in such Registration Statement.
/s/ Deloitte & Touche, LLP
Los Angeles, CA
May 6, 2022
Exhibit 107
Calculation of Filing Fee Tables
Form S-1
(Form Type)
Rocket Lab USA, Inc.
(Exact Name of Registrant as Specified in its Charter)
Table 1: Newly Registered and Carry Forward Securities
Security Type |
Security Class Title |
Fee Calculation or Carry Forward Rule |
Amount Registered |
Proposed Maximum Offering Price Per Unit |
Maximum Aggregate Offering Price |
Fee Rate |
Amount of Registration Fee |
Carry Forward Form Type |
Carry Forward File Number |
Carry Forward Initial effective date |
Filing Fee Previously Paid In Connection with Securities Forward | |||||||||||||||||
Newly Registered Securities | ||||||||||||||||||||||||||||
Fees to Be Paid |
Equity | Common Stock, par value $0.0001 per share | 457(c) | 1,720,841 (1) | $6.86(3) | $11,804,969.26(3) | 0.0000927 | $1,094.32 | ||||||||||||||||||||
Fees to Be Paid |
Equity |
Common Stock, par value $0.0001 per share | 457(c) |
956,023 (2) | $6.86(3) |
$6,558,317.78(3) | 0.0000927 | $607.96 |
||||||||||||||||||||
Fees Previously Paid |
||||||||||||||||||||||||||||
Carry Forward Securities | ||||||||||||||||||||||||||||
Carry Forward Securities |
||||||||||||||||||||||||||||
Total Offering Amounts | $18,363,287.04 | $1,702.28 | ||||||||||||||||||||||||||
Total Fees Previously Paid | $0.00 | |||||||||||||||||||||||||||
Total Fee Offsets | $0.00 | |||||||||||||||||||||||||||
Net Fee Due | $1,702.28 |
(1) | Represents 1,720,841 shares of common stock offered for resale by selling securityholders identified in this Registration Statement issued pursuant to the PSC Acquisition (as defined in the prospectus). |
(2) | Represents up to 956,023 shares of common stock that may be issuable as PSC Earnout Shares (as defined in the prospectus) and are offered for resale by selling securityholders identified in this Registration Statement. |
(3) | Estimated solely for the purpose of calculating the amount of the registration fee pursuant to Rule 457(c) under the Securities Act, based upon the average of the high and low prices of the Common Stock as reported on the Nasdaq Capital Market on May 4, 2022, which is a date within five business days prior to the filing of this Registration Statement. |
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Cover Page |
12 Months Ended |
---|---|
Dec. 31, 2021 | |
Document Information [Line Items] | |
Document Type | S-1 |
Amendment Flag | false |
Entity Registrant Name | ROCKET LAB USA, INC. |
Entity Central Index Key | 0001819994 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
DESCRIPTION OF THE BUSINESS |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Standards Update and Change in Accounting Principle [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DESCRIPTION OF THE BUSINESS |
Rocket Lab USA, Inc. (“Rocket Lab” and, together with its consolidated subsidiaries, the “Company,” “we,” “us” or “our”) is an end-to-end on-orbit management solutions that make it faster, easier and more affordable to access space. We operate one of the only private orbital launch ranges in the world, located in Mahia, New Zealand, enabling a unique degree of operational flexibility and control of customer launch manifests and mission assurance. While our business has historically been centered on the development of small-class launch vehicles and related sale of launch services, we are currently innovating in the areas of medium-class launch vehicles and launch services, space systems design and manufacturing, on-orbit management solutions, and space data applications. On August 25, 2021 (the “Closing Date”), the Company consummated the previously announced merger pursuant to that certain Agreement and Plan of Merger, dated March 1, 2021, and amended by Amendment No. 1 thereto, dated May 7, 2021 and Amendment No. 2 thereto, dated June 25, 2021 (the “Merger Agreement”), by and among the Company (formerly known as Vector Acquisition Corporation (“Vector”)), Rocket Lab USA, Inc., (“Legacy Rocket Lab”)) and Prestige USA Merger Sub, Inc., a Delaware corporation and a wholly-owned subsidiary of Legacy Rocket Lab (“Merger Sub”). Vector filed a notice of deregistration and necessary accompanying documents with the Cayman Islands Registrar of Companies, and a certificate of incorporation and a certificate of corporate domestication with the Secretary of State of the State of Delaware, under which Vector was domesticated and continued as a Delaware corporation (the “Domestication”), changing its name to “Vector Acquisition Delaware Corporation” (“Vector Delaware”). As contemplated by the Merger Agreement, Merger Sub merged with and into Vector Delaware, with the separate corporate existence of Merger Sub ceasing and Vector Delaware being the surviving corporation and a wholly owned subsidiary of Legacy Rocket Lab (the “First Merger”) and immediately following the First Merger, Legacy Rocket Lab merged with and into Vector Delaware with Vector Delaware being the surviving corporation in the merger (the “Second Merger,” and, together with the First Merger and the Domestication, the “Business Combination”). The Business Combination was unanimously approved by the boards of directors of each of Vector and Legacy Rocket Lab. In connection with the closing of the Business Combination, the Company changed its name from Vector Acquisition Corporation to Rocket Lab USA, Inc. The “Post Combination Company” following the Business Combination is Rocket Lab USA, Inc. The Business Combination On August 25, 2021, the Company consummated the Business Combination. The following occurred upon the Closing:
In addition, if the closing price of the Post Combination Company common stock was equal to or greater than $20.00 for a period of at least 20 trading days out of 30 consecutive trading days during the period commencing on the 90th day following the Closing Date and ending on the 180th day following the Closing Date (the “Stock Price Target”), the holders of Legacy Rocket Lab’s equity securities, including options, warrants, restricted stock units and other rights to acquire stock of Legacy Rocket Lab, would have been entitled to receive an aggregate of 32,150,757 additional shares of Post Combination Company Common Stock (the “Earnout Shares”), subject, in the case of holders of options, warrants, restricted stock units and other rights to acquire stock of Legacy Rocket Lab, to the terms of such options, warrants, restricted stock units and other rights. In evaluating the accounting treatment for the earnout, we have concluded that the earnout is not a liability under Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity Compensation—Stock Compensation Derivative and Hedging Immediately after giving effect to the Business Combination and the PIPE Financing, the following were outstanding: (i) 447,919,591 shares of Rocket Lab Common Stock, consisting of (a) 362,188,208 shares of Post Combination Company Common Stock issued to holders of Legacy Rocket Lab common stock and redeemable convertible preferred stock, (b) 31,031,383 shares issued to the holders of Vector’s Class A ordinary shares, which reflects the redemption of 968,617 Class A ordinary shares with respect to which holders exercised their redemption right, (c) 8,000,000 shares issued to the holders of Vector’s Class B ordinary shares, and (d) 46,700,000 shares of Post Combination Company Common Stock issued in the PIPE Investment; (ii) warrants to purchase 16,266,666 shares of Post Combination Company Common Stock at an exercise price of $11.50 per share issued upon conversion of the outstanding Vector warrants prior to the Business Combination; (iii) warrants to purchase 891,380 shares of Post Combination Company Common Stock attributable to Legacy Rocket Lab warrants prior to the Business Combination, which had a weighted average exercise price of approximately $0.29 per share, (iv) options to purchase 17,961,684 shares of Post Combination Company Common Stock attributable to Legacy Rocket Lab options prior to the Business Combination, which had a weighted average exercise price of $1.04 per share and 14,253,283 of which were vested, (v) 14,903,640 restricted stock units attributable to restricted stock units of Rocket Lab prior to the Rocket Lab Business Combination, including 4,065,304 with respect to which the time-based vesting conditions had been satisfied and (vi) an earnout obligation of Legacy Rocket Lab prior to the Business Combination pursuant to which the Post Combination Company may be required to issue up to 1,915,356 shares of Post Combination Company Common Stock. In addition, the Earnout Shares will not be issued as described above. The following table reconciles the elements of the Business Combination to the Condensed Consolidated Statement of Cash Flows and the Condensed Consolidated Statement of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) for the year ended December 31, 2021:
The Business Combination was accounted for as a reverse recapitalization in accordance with ASC 805, Business Combinations
In accordance with guidance applicable to these circumstances, the equity structure has been recast in all comparative periods up to the Closing Date to reflect the number of shares of the Company’s common stock, $0.0001 par value per share, issued to Legacy Rocket Lab’s stockholders in connection with the Business Combination. As such, the shares and corresponding capital amounts and earnings per share related to Legacy Rocket Lab redeemable convertible preferred stock, common stock, warrants, options, and restricted stock units prior to the Business Combination have been retroactively recast as shares reflecting the Exchange Ratio of 9.059659 established in the Business Combination. Post Combination Company common stock and warrants commenced trading on the Nasdaq Stock Market LLC (“Nasdaq”) under the symbols “RKLB” and “RKLBW,” respectively, on August 25, 2021. |
SIGNIFICANT ACCOUNTING POLICIES |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES |
Principals of Consolidation and Basis of Presentation The consolidated financial statements are presented in conformity with accounting standards generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of Rocket Lab USA, Inc. and its wholly owned subsidiaries after elimination of intercompany accounts and transactions. Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended (the “Securities Act”), as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, our management evaluates estimates and assumptions including those related to revenue recognition, contract costs, loss reserves, valuation of warrants and stock-based compensation and deferred tax valuation allowances. We based our estimates on historical data and experience, as well as various other factors that our management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities. Actual results could differ from these estimates and assumptions. Cash and Cash Equivalents The Company considers cash and cash equivalents to be only those investments which are highly liquid, readily convertible to cash and which have a maturity date within ninety days from the date of purchase. The carrying amounts for the Company’s cash equivalents approximate fair value due to their short maturities. Cash equivalents are recorded at fair value and consist primarily of money market funds. Restricted Cash The Company considers restricted cash to include any cash that is legally restricted as to withdrawal or usage. The Company had $1,116 and $1,141 as of December 31, 2021 and 2020, respectively. The balance relates to collateral for letters of credit and money market accounts and is presented in restricted cash in the consolidated balance sheets. Accounts Receivable, Net Accounts receivables represent amounts billed and currently due from customers. The amounts are stated at their net estimated realizable value. The Company monitors collections and payments from its customers and maintains an allowance for doubtful accounts, which effective January 1, 2020, is based upon applying an expected credit loss rate to receivables based on the historical loss rate from similar high-risk customers adjusted for current conditions, including any specific customer collection issues identified, and forecasts of economic conditions. Delinquent account balances are written off after management has determined that the likelihood of collection is remote. The allowance for credit losses as of December 31, 2021 and 2020, and the activity in this account, including the current-period provision for expected credit losses for the years ended December 31, 2021 and 2020, were not material. Inventories Inventories consist of components and subassemblies, spare parts and consumable goods. Inventories are recorded at actual acquisition costs and adjusted to the lower of cost or estimated net realizable value. Costs include direct material, direct labor, applicable manufacturing and engineering overhead, and other direct costs. The determination of net realizable value of long-term contract costs is based upon quarterly contract reviews that determine an estimate of costs to be incurred to complete all contract requirements. When actual contract costs and the estimate to complete exceed total estimated contract revenues, a loss provision is recorded. Prepaids and Other Current Assets Prepaids and other current assets include goods and services tax, prepaid expenses, government grant receivables and miscellaneous receivables. Property, Plant and Equipment, Net Property, plant and equipment, are stated at cost, less accumulated depreciation. Depreciation on Launch Services is calculated using a diminishing value method which approximates a double-declining method over the estimated useful lives of assets. Depreciation on Space Systems is calculated using the straight-line method over the estimated useful lives of assets.
Launch site assets include buildings, machinery and equipment at launch sites. Repair and maintenance costs are expensed as incurred. Assets disposed of or retired are removed from cost and accumulated depreciation accounts and any resulting gain or loss is reflected in the Company’s consolidated statements of operations and comprehensive loss. Business Combination The results of businesses acquired in a business combination are included in our consolidated financial statements from the date of the acquisition. The Company uses the acquisition method of accounting for business combinations and recognizes assets acquired and liabilities assumed measured at their fair values on the date acquired. Goodwill is measured as of the acquisition date as the excess of consideration transferred over the net acquisition date fair value of the assets acquired and the liabilities assumed. The Company performs valuations of assets acquired and liabilities assumed and allocates the purchase price to its respective assets and liabilities. Determining the fair value of assets acquired and liabilities assumed requires us to use significant judgment and estimates, including the selection of valuation methodologies, estimates of future revenue, costs and cash flows, discount rates and selection of comparable companies. The Company engages the assistance of valuation specialists in concluding on fair value measurements in connection with determining fair values of assets acquired and liabilities assumed in a business combination. Intangible Assets, Net Intangible assets consist of purchased intangible assets including developed technology, in-process research and development, customer relationships, backlog, trademarks and tradenames, non-compete agreements, capitalized software and capitalized intellectual property and are amortized over their useful lives ranging from to twenty years using the straight-line method of amortization. The Company evaluates the recoverability of intangible assets periodically by considering events or circumstances that may warrant revised estimates of useful lives or that indicate the asset may be impaired. Impairment of Long-Lived Assets Long-lived assets consist of property, plant equipment and intangible assets with estimable useful lives subject to depreciation and amortization. The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Recoverability of an asset or asset group to be held and used is measured by a comparison of the carrying amount of an asset or asset group to the estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of the asset or asset group exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset or asset group exceeds the fair value of the asset or asset group. There was no impairment of long-lived assets during the years ended December 31, 2021 and 2020. Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combination. We test goodwill for impairment at least annually during the fourth fiscal quarter, or more frequently if indicators of impairment exist during the fiscal year. Events or circumstances which could trigger an impairment review include a significant adverse change in legal factors or in the business climate, loss of key customers, an adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, significant changes in the manner of the Company’s use of the acquired assets or the strategy for the Company’s overall business, significant negative industry or economic trends or significant underperformance relative to expected historical or projected future results of operations. When testing goodwill for impairment, the Company first performs a qualitative assessment. If the Company determines it is more likely than not that a reporting unit’s fair value is less than its carrying amount, then a one-step impairment test is required. If the Company determines it is not more likely than not a reporting unit’s fair value is less than its carrying amount, then no further analysis is necessary. To identify whether a potential impairment exists, the Company compares the estimated fair value of the reporting unit with its carrying amount, including goodwill. If the estimated fair value of the reporting unit exceeds its carrying amount, goodwill is not considered to be impaired. If, however, the fair value of the reporting unit is less than its carrying amount, then such balance would be recorded as an impairment loss. Any impairment loss is limited to the carrying amount of goodwill allocated to the reporting unit. There was no impairment of goodwill during the years ended December 31, 2021 and 2020. Fair Value of Financial Instruments We utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. We estimate fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which is categorized in one of the following levels:
The Company considers the carrying values of cash, restricted cash, accounts receivable, accounts payable, and accrued expenses to approximate fair value for these financial instruments due to the short maturities of these instruments. The Company’s preferred stock warrant options and public and private warrants are carried at fair value and determined according to the fair value hierarchy above (Note 5). Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis Certain assets and liabilities, including goodwill and intangible assets, are subject to measurement at fair value on a non- recurring basis upon initial acquisition in a business combination or if they are deemed to be impaired as a result of an impairment review. Fair Value of Common Stock Subsequent to the Business Combination, the fair value of the Company’s common stock is based on the closing market price on the date of grant. Prior to the Business Combination, due to the absence of an active market for the Company’s common stock, the fair value of the Company’s common stock is estimated based on current available information. This estimate required significant judgment and considers several factors, such as estimated probabilities of future liquidation scenarios, future equity values estimated based on project future cash flows and guideline public company information, discount rates, expected volatility and discounts for lack of marketability. These estimates were highly subjective in nature and involved a large degree of uncertainty. Such estimates of the fair value of the Company’s common stock were used in the measurement of stock-based compensation expense and common stock and preferred stock warrants prior to the Business Combination. Equity Issuance Costs Certain transaction costs incurred in connection with the Merger Agreement that are direct and incremental to the Business Combination (see Note 1) have been recorded as a component of additional paid-in capital within the Condensed Consolidated Balance Sheets. Revenue Recognition The Company generates revenue from launch services and space systems. Launch services may be provided as a mission dedicated to a single customer or as a rideshare arrangement with multiple spacecraft from multiple customers. Space systems revenue is comprised of space engineering, program management, spacecraft components, spacecraft manufacturing, space software and mission operations. Revenue is recognized when control of the promised product or service is transferred to our customers at an amount that reflects the consideration the Company expects to be entitled to in exchange for those products or services. The Company’s revenue contracts are generally fixed-price contracts or time and materials contracts depending upon the nature of the contract. In fixed-price contracts, to the extent actual costs vary from the cost upon which the price was negotiated, the company will generate variable levels of profit or could incur a loss. The Company enters into contracts that can include various combinations of products and services, including contracts that contain both launch services and space systems products and services. In general, each launch and space system product or service is capable of being distinct and accounted for as separate performance obligations. Where contracts contain a single performance obligation, the entirety of the transaction price is allocated to this one performance obligation. For contracts with multiple performance obligations, the transaction price is allocated to each performance obligation based on the estimated standalone selling price of the product or service underlying each performance obligation. The standalone selling price represents the amount the Company would sell the product or service to a customer on a standalone basis. The transaction price represents the amount of consideration to which the Company expects to be entitled in exchange for transferring the promised services to its customers. The consideration promised within a contract may include fixed amounts and variable amounts. Variable consideration may consist of final milestone payments or mission success fees that are earned when the payload is delivered to the specified orbit, amongst other types. The Company estimates variable consideration at the most likely amount, which is included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur. The Company recognizes revenue when or as control is transferred to the customer, either over-time or at a point-in-time. Generally, launch services revenue is recognized at a point-in-time over-time when it is determined that there is no alternative use for the mission, due to contractual or practical limitations, and when the Company has an enforceable right to payment for the services performed to date including a reasonable profit. Revenue for space systems is recognized at a point-in-time or over-time depending upon the nature of the contract with customer. For contracts to provide space engineering, program management and mission operations, the Company recognizes revenues over-time as the customer simultaneously receives and consumes the benefits provided by the Company’s performance as the Company performs. Similarly, spacecraft manufacturing is recognized over-time when it is determined that there is no alternative use for the spacecraft, due to contractual or practical limitations, and where the Company has an enforceable right to payment for the services performed to date including a reasonable profit. Contracts to provide components for spacecraft that do not qualify for over-time recognition are recognized at a point-in-time when control is transferred. For revenue recognized over-time, the Company uses either an input method, based on costs incurred relative to total estimated costs at completion to estimate the percentage of completion, or an output method, based upon days of service, depending upon the nature of the performance obligation. For revenues measured utilizing an input method, the costs incurred are determined by assessing the physical and technical progress on the performance obligation applied to the standard costs. Due to the nature of the work performed under spacecraft construction contracts, the estimation of physical and technical progress requires judgment and is subject to many variables including but not limited to actual progress and costs incurred, labor productivity, changes in cost and availability of materials. Contracts for space software provide the customer with a right to use the software as it exists when made available to the customer. Customers may purchase perpetual entity-wide licenses or mission-based licenses, which provide customers with the same functionality and differ primarily in the number of spacecraft into which the software may be integrated. Revenue from space software is recognized upfront at the point-in-time when the software is made available to the customer. When customers purchase when and if available software maintenance in addition to the space software license, revenues allocated to the maintenance are recognized ratably over the maintenance period. Due to their nature, time and materials contracts contain variable consideration; however, in general, the Company’s performance obligations under time and materials contracts qualify for the “right to invoice” practical expedient. Under this practical expedient, the Company recognizes revenue, over time, in the amount to which the Company has a right to invoice. In addition, the Company is not required to estimate such variable consideration upon inception of the contract and reassess the estimate each reporting period. The Company determined that this method best represents the transfer of services as, upon billing, the Company has a right to consideration from a customer in an amount that directly corresponds with the value to the customer of the Company’s performance completed to date. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. Timing may differ between the satisfaction of performance obligations and the invoicing and collection of amounts related to our contracts with customers. Contract assets include unbilled amounts under contracts when revenue recognized exceeds the amount billed to the customer. Contract assets are transferred to accounts receivable when the right to invoice becomes unconditional and the invoice is issued. Contract assets are classified as current if the invoice will be delivered to the customer within the succeeding 12-month period with the remaining recorded as long-term. These contract assets are not considered a significant financing component of the company’s contracts as the payment terms are intended to protect the customer in the event the company does not perform on its obligations under the contract. Contract liabilities primarily consists of customer billings in advance of revenues being recognized. Contract liabilities are not a significant financing component as they are generally utilized to pay for contract costs within a one-year period or are used to ensure the customer meets contractual requirements. Cost of Revenues Cost of revenues includes direct material costs, compensation and benefits and other costs, such as launch service supplies and consumables, lab supplies, insurance, travel, vehicle and equipment related costs directly associated with generating revenues. Selling, General and Administrative Selling, general and administrative expenses consist of indirect costs, including management and executive compensation, corporate costs related to finance, accounting, human resources, information technology, legal, administrative, safety, professional services, rent and other general expenses. Advertising costs are expensed as incurred and presented within selling, general and administrative expenses in the consolidated statements of operations and comprehensive loss. For the years ended December 31, 2021 and 2020, advertising costs were not material. Research and Development Costs, net Research and development costs, net primarily include labor, prototype, and professional services related to the development of our Space System platform and components and the Neutron Launch Vehicle. These costs are based on a cost model for research and development relating to internal product development programs not associated with customer contractual arrangements. These costs are presented net of government grants on the consolidated statements of operations and comprehensive loss. Government Grants The Company entered into a funding agreement for a research and development growth grant with an agency of the New Zealand federal government during the year ended 2013. The grant reimbursed up to 20% of the Company’s qualifying research and development costs incurred. The Company recognized a grant receivable once eligible reimbursable research and development expenses are incurred and submitted for reimbursement. Any corresponding grant receivable would be presented within prepaids and other current assets on the consolidated balance sheets. The Company received $3,695 in grant proceeds during the year ended December 31, 2020, which is presented within research and development costs, net in consolidated statements of operations and comprehensive loss. The Company entered into a research and development tax incentive program with the New Zealand government effective from January 1, 2021. The tax incentive will reimburse up to 15% of the Company’s qualifying research and development costs incurred. The Company may recognize a grant receivable once eligible reimbursable research and development expenses are incurred and submitted for reimbursement. Any corresponding grant receivable will be presented within other current assets on the consolidated balance sheets. The Company accrued for an estimated amount of $2,563 during the year ended December 31, 2021, which is presented within research and development costs, net in consolidated statements of operations and comprehensive loss. The Company entered into an agreement with the U.S. Space Force’s Space Systems Command for development of the Neutron launch vehicle’s upper stage during the year ended 2021. The Company received $393 in proceeds during the year ended December 31, 2021, which is presented within research and development costs, net in consolidated statements of operations and comprehensive loss. Stock-Based Compensation The Company’s stock compensation plan is classified as an equity plan which permits stock awards in the form of employee stock options and restricted stock awards. For awards that vest solely based on continued service, the fair value of an award is recognized as an expense over the requisite service period on a straight-line basis. For awards that contain performance conditions, the fair value of an award is recognized based on the probability of the performance condition being met. The fair value of stock options under the Company’s employee equity incentive plan are estimated as of the grant date using the Black-Scholes option valuation model, which is affected by estimates of the fair value per share of the Company’s common stock, the risk-free interest rate, expected dividend yield, expected term and the expected share price volatility of its common shares over the expected term, which are estimated as follows:
The fair value of restricted stock units granted under the Company’s employee equity incentive plans are estimated as of the grant date in an amount equal to the estimated fair value per share of the Company’s common stock. Forfeitures are recognized as incurred for as they occur. Unless otherwise approved, options must be exercised while the individual is an employee or within 90-days of termination when applicable. The expiration date of newly issued options is ten years after grant date unless earlier terminated as provided for in the Plan. The assumptions used in calculating the fair value of stock-based awards represent our best estimates, however, these estimates involve inherent uncertainties and the application of judgment. As a result, if factors change or we use different assumptions, stock-based compensation expense could be materially different in the future. Income Taxes The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized by applying the statutory tax rates in effect in the years in which the differences between the financial reporting and tax filing bases of existing assets and liabilities are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company utilizes a two-step approach to recognizing and measuring uncertain income tax positions (tax contingencies). The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. The Company makes estimates, assumptions and judgments to determine its provision for income taxes and also for deferred tax assets and liabilities and any valuation allowances recorded against deferred tax assets. Actual future operating results and the underlying amount and type of income could differ materially from the Company’s estimates, assumptions and judgments thereby impacting its consolidated financial position and results of operations. The Company’s policy is to recognize interest and/or penalties related to all tax positions in income tax expense. To the extent that accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision in the period that such determination is made. Interest and penalties related to uncertain tax positions were not material as of and for the years ended December 31, 2021 and 2020. Segment Information Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s CODM is its Chief Executive Officer. The Company has determined that it operates in two reportable segments: Launch Services and Space Systems. Foreign Currencies The functional currency of certain of the Company’s wholly owned subsidiaries is the currency of the primary economic environment in which they operate. Assets and liabilities denominated in currencies other than the functional currency are remeasured at the exchange rate in effect on the balance sheet date, with exchange differences or remeasurement included in other (expense) income, net on our consolidated statement of operations and comprehensive loss. Revenue and expenses are translated at average rates of exchange prevailing during the respective period. Translation adjustments resulting from this process are recorded as a component of accumulated other comprehensive income (loss) in the consolidated statement of redeemable convertible preferred stock and shareholders’ deficit. Leases The Company leases certain property, vehicles and equipment. At contract inception, the Company determines if contract contains a lease and whether the lease should be classified as an operating or financing lease. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, it uses the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The ROU asset also includes any lease prepayments made and excludes lease incentives. The Company’s lease terms include options to extend or terminate the lease when it is reasonably certain that it will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. Finance leases result in the recognition of depreciation expense, which is recognized on a straight-line basis over the expected life of the leased asset, and interest expense, which is recognized following an effective interest rate method. The Company excludes short-term leases (term of 12 months or less) from the balance sheet presentation and accounts for non-lease and lease components in a contract as a single lease component for certain asset classes. Warrant Liability The Company accounts for the warrants assumed in connection with the Business Combination in accordance with the guidance contained in ASC 815-40, Derivatives and Hedging re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the Consolidated Statements of Operations and Comprehensive Loss. Recently Adopted Accounting Pronouncements In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2021-08, Business Combinations (Topic 805) Accounting for Contract Assets and Contract Liabilities from Contracts with Customers Revenue from Contracts with Customers For public business entities, the amendments in ASU No. 2021-08 are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The amendments in ASU
No. 2021-08 should be applied prospectively to business combinations occurring on or after the effective date of the amendments. Early adoption of the amendments is permitted. An entity that early adopts should apply the amendments (1) retrospectively to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period of early application and (2) prospectively to all business combinations that occur on or after the date of initial application. The Company has early adopted ASU No. 2021-08 effective January 1, 2021, which resulted in the contract liabilities being recognized under ASC 606 instead of fair value at the acquisition dates. There were no other impacts due to the adoption of this guidance on our consolidated financial statements. |
REVENUES |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUES |
The Company disaggregates revenue by reportable segment and revenue recognition pattern, as it believes these categories best depicts how the nature, timing and uncertainty of revenue and cash flows are affected by economic factors. The following tables provide information about disaggregated revenue and a reconciliation of the disaggregated revenue during the years ended December 31, 2021 and 2020:
The timing of revenue recognition, billings, and cash collections results in billed accounts receivable, unbilled receivables (presented within contract assets) and customer advances and deposits (presented within contract liabilities) on the consolidated balance sheets, where applicable. Amounts are generally billed as work progresses in accordance with agreed-upon milestones. These individual contract assets and liabilities are reported in a net position on a contract-by-contract basis on the consolidated balance sheets at the end of each reporting period. The following table presents the balances related to enforceable contracts as of December 31, 2021 and 2020:
Changes in contract liabilities were as follows:
The revenue recognized from the contract liabilities consisted of the Company satisfying performance obligations during the normal course of business. The amount of revenue recognized from changes in the transaction price associated with performance obligations satisfied in prior years during the years ended December 31, 2021 and 2020 was not material. Remaining unsatisfied performance obligations represent the total dollar value of work to be performed on contracts awarded and in progress. The amount of remaining unsatisfied performance obligations increases with new contracts or additions to existing contracts and decreases as revenue is recognized on existing contracts. Contracts are included in the amount of remaining unsatisfied performance obligations when an enforceable agreement has been reached. Remaining unsatisfied performance obligations totaled $241,463 as of December 31, 2021, of which approximately 60% is expected to be recognized within 12 months, with the remaining 40% to be recognized beyond 12 months. |
BUSINESS COMBINATIONS |
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS COMBINATIONS |
Sinclair Interplanetary On April 28, 2020, the Company acquired 100% of the outstanding capital stock and voting interest of Sinclair Interplanetary (“Sinclair Interplanetary”), pursuant to a stock purchase agreement with Sinclair, dated March 6, 2020. The results of Sinclair’s operations have been included in the consolidated financial statements since the acquisition close date. Sinclair Interplanetary is a leading provider of high-quality, flight-proven spacecraft hardware and is headquartered in Toronto, Canada. As a result of the acquisition, management expects to strengthen and expand the Company’s ability to become a one stop shop for customers who desire to design, build and launch a spacecraft. Acquisition Consideration The acquisition-date consideration transferred consisted of cash of $12,340. The following table presents estimates of the fair value of the assets acquired and the liabilities assumed by the Company in the acquisition:
The following is a summary of identifiable intangible assets acquired and the related expected lives for the finite-lived intangible assets:
Goodwill of $2,895 was recorded for the Sinclair Interplanetary acquisition, representing the excess of the purchase price over the fair value of the identifiable net assets. Goodwill recognized primarily represents the future revenue and earnings potential and certain other assets which were acquired, but that do not meet the recognition criteria, such as assembled workforce. None of the goodwill is expected to be deductible for income tax purposes. The Company recognized $1,026 of acquisition and integration related costs that were expensed in the year ended December 31, 2020. These costs are included in the consolidated statement of operations in the line item entitled “Selling, General and Administrative Expense.” Compensation Arrangements In connection with the Sinclair Interplanetary acquisition, the Company issued 2,470,814 shares of common stock to the seller upon closing of the acquisition. The shares are subject to a share restriction agreement which restricts the transferability of the shares and provides the Company with a right to repurchase the shares for $0 upon termination of employment of the seller. The Company’s repurchase right lapses in eight equal quarterly installments over the two-year period subsequent to the acquisition date as the seller continues to provide service as an employee, such that at the end of the two-year period following the acquisition date, the shares will be fully transferable, and the Company will no longer have a right to repurchase the shares. Therefore, the shares are accounted for as post-combination compensation expense for services as an employee over the two-year vesting period following the acquisition date. Additionally, the Company agreed to issue to the seller of Sinclair Interplanetary an earnout of up to 1,915,357 additional shares of the Company’s common stock to be paid over a two-year period following the acquisition close date. Issuance of the earnout shares is contingent upon the acquired business meeting certain post-acquisition gross revenue and gross margin targets and the seller continuing to provide services to the Company as an employee during the earnout period. The earnout shares are divided into three tranches. The number of shares to be earned in the first tranche (between 0 and 957,679 shares) is based on revenue and gross margin of the acquired business during the first one-year period following acquisition. The number of shares to be earned in second tranche (between 0 and 957,678 shares) is based on revenue and gross margin of the acquired business during the second one-year period following acquisition. The arrangement also provides for a make-up share tranche, whereby the seller may earn additional shares not earned in the first one-year period following acquisition if the revenue and gross margin of the second one-year period following acquisition met certain specified thresholds. In no event will more than 1,915,357 shares be earned. Due to the continuing employment requirement of the shares issued upon closing of the transaction and continuing employment requirement of the earnout shares, the costs associated with the shares are recognized as post-combination compensation expense recognized in research and development expenses in the condensed consolidated statements of operations and comprehensive loss. The stock-based compensation of this award is recognized based on the probability of the performance condition being fully met. The following table provides stock-based compensation expense recognized in conjunction with the Sinclair Interplanetary acquisition:
ASI On October 12, 2021, the Company completed the acquisition of Advanced Solutions, Inc. (“ASI”). ASI is an engineering company that develops flight software, simulation systems and guidance, navigation and control systems. ASI’s customers include agencies within the Defense Department, Air Force, NASA, other aerospace prime contractors, commercial spacecraft developers and space startups. ASI will be part of the Company’s Space Systems operating segment and continue to serve its current customers and support the Company’s Photon missions, spacecraft components, and space and ground software capabilities. Acquisition Consideration The acquisition-date consideration transferred consisted of cash of $29,935. The purchase agreement also includes an additional potential earn out payment of up to $ 5,500 based on achievement of certain performance metrics for the business in its fiscal year ending December 31, 2021. The contingent cash consideration was classified as a liability and included in accrued expenses on the Company’s consolidated balance sheet. To estimate the fair value of the contingent consideration liability, management valued the earn-out based on the likelihood of reaching targets contained in the purchase agreement. At the acquisition date, the fair value of the contingent consideration payable was determined to be $5,500. At December 31, 2021, there were no material changes in the range of expected outcomes and the fair value of the contingent consideration from the acquisition date. The following table presents estimates of the preliminary fair value of the assets acquired and the liabilities assumed by the Company in the acquisition:
The following is a summary of preliminary identifiable intangible assets acquired and the related expected lives for the finite-lived intangible assets (in thousands):
Goodwill of $16,659 was recorded for the ASI acquisition, representing the excess of the purchase price over the fair value of the identifiable net assets. Goodwill recognized primarily represents the future revenue and earnings potential and certain other assets which were acquired, but that do not meet the recognition criteria, such as assembled workforce. Goodwill is expected to be deductible for income tax purposes. The Company recognized $522 of acquisition and integration related costs that were expensed in the current period. These costs are included in the consolidated statement of operations in the line item entitled “Selling, General and Administrative Expense.” Compensation Arrangements In connection with the acquisition, the Company deposited $12,015 with an escrow agent pursuant to purchase agreement for key ASI employees which was included in prepaid and other current assets and other non-current assets on the Company’s consolidated balance sheet. The employees must stay employed with the Company through each vesting date to be eligible to receive the performance reserve payments, and non-vested payments are forfeited if employment with the Company ceases. The performance reserve vests quarterly beginning with January 1, 2022 through October 1, 2023. In addition, under the agreement, the Company will make payment for a partial tax gross up. Due to the continuing employment requirement of the performance reserve, the costs associated with the performance reserve are recognized as post-combination compensation expense recognized in production and selling, general and administrative expense in the consolidated statements of operations and comprehensive loss. The Company recognized $1,895 in connection with the performance reserve payments during the year ended December 31, 2021. PSC On November 15, 2021, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”), by and among the Company, Platinum Merger Sub, Inc. (“Merger Sub”), Planetary Systems Corporation (“PSC”), and Michael Whalen as shareholder representative, which provides for, among other things, the merger of Merger Sub with and into PSC, with PSC being the surviving corporation of the merger and a direct, wholly owned subsidiary of the Company. Pursuant to the terms of the Merger Agreement, all of the issued and outstanding shares of PSC will be cancelled in exchange for aggregate consideration of up to approximately $42,000 in cash, 1,720,841 shares of the Company’s common stock, and up to 956,023 shares of the Company’s common stock that are subject to a performance based earn-out, subject to customary adjustments at closing for cash, working capital, transaction expenses and indebtedness, and amounts held back by the Company (the “Acquisition”). The Merger Agreement contains representations, warranties and indemnification provisions customary for transactions of this kind. In connection with the Acquisition, the Company has entered into customary offer letters or employment agreements with certain key employees of PSC. On November 30, 2021, the Company completed the acquisition of PSC. PSC is a trusted leader in separation systems and spacecraft dispensers across the space industry, PSC’s flight-proven, cost-effective, and lightweight hardware streamlines the process of attaching spacecraft to rockets and releasing them in space while ensuring they’re protected during the journey to orbit. PSC’s products to date have a 100% mission success heritage across more than 100 missions launched. Acquisition Consideration The acquisition-date consideration transferred consisted of cash of $42,400 and stock consideration valued at $11,568. The purchase agreement also includes an additional potential earn out payment of up to $10,000 based on achievement of certain performance metrics for the business in its fiscal year ending December 31, 2022 and 2023. The contingent consideration, to be paid in common stock, was classified as a liability and included in other non-current liabilities on the Company’s consolidated balance sheet. To estimate the fair value of the contingent consideration liability, management valued the earn-out based on the likelihood of reaching targets contained in the purchase agreement. At the acquisition date, the fair value of the contingent consideration payable was determined to be $1,800. At December 31, 2021, there were no material changes in the range of expected outcomes and the fair value of the contingent consideration from the acquisition date. The following table presents estimates of the preliminary fair value of the assets acquired and the liabilities assumed by the Company in the acquisition:
The following is a summary of preliminary identifiable intangible assets acquired and the related expected lives for the finite-lived intangible assets (in thousands):
Goodwill of $23,451 was recorded for the PSC acquisition, representing the excess of the purchase price over the fair value of the identifiable net assets. Goodwill recognized primarily represents the future revenue and earnings potential and certain other assets which were acquired, but that do not meet the recognition criteria, such as assembled workforce. None of the goodwill is expected to be deductible for income tax purposes. The Company recognized $1,024 of acquisition and integration related costs that were expensed in the current period. These costs are included in the consolidated statement of operations in the line item entitled “Selling, General and Administrative Expense.” Compensation Arrangements In connection with the acquisition, the Company issued 1,720,841 shares of the Company common stock to the seller upon closing of the acquisition, of which 991,446 shares are held by key PSC employees. The shares are subject to a holdback agreement which restricts the transferability of the shares. The Company’s repurchase right lapses in eight equal quarterly installments over the two-year period subsequent to the acquisition date as the seller continues to provide service as an employee, such that at the end of the two-year period following the acquisition date, the shares will be fully transferable, and the Company will no longer have a right to repurchase the shares. Therefore, the shares are accounted for as post-combination compensation expense for services as an employee over the two-year vesting period following the acquisition date. Due to the continuing employment requirement of the shares issued upon closing of the transaction and the earnout shares, the costs associated with the shares are recognized as post-combination compensation expense recognized in selling, general and administrative expense in the consolidated statements of operations and comprehensive loss. The Company recognized $715 of stock-based compensation during the year ended December 31, 2021 in connection with the holdback agreement shares. Unaudited Pro Forma Information The Company’s 2021 consolidated statement of operations includes revenues and operating loss of $6,617 and $3,877, respectively, related to the PSC and ASI acquisitions. The Company’s 2020 consolidated statement of operations includes revenue and operating loss of $2,075 and $936, respectively, related to the Sinclair acquisition. The unaudited consolidated financial information summarized in the following table gives effect to the 2021 and 2020 acquisitions assuming they occurred on January 1, 2020. These unaudited consolidated pro forma operating results do not assume any impact from revenue, cost or other operating synergies that are expected as a result of the acquisitions. These unaudited consolidated pro forma operating results are presented for illustrative purposes only and are not indicative of the operating results that would have been achieved had the acquisitions occurred on January 1, 2020, nor does the information project results for any future period.
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FAIR VALUE OF FINANCIAL INSTRUMENTS |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS |
As of December 31, 2021 and 2020, the following financial assets and liabilities are measured at fair value on a recurring basis and are categorized using the fair value hierarchy as follows:
The estimated fair value amounts shown above are not necessarily indicative of the amounts that the Company would realize upon disposition, nor do they indicate the Company’s intent or ability to dispose of the financial instrument. The Company’s warrant liability as of December 31, 2021 includes public and private placement warrants that were originally issued by Vector, but which were transferred to the Company as part of the Closing of the Business Combination (the “Public Warrants” and “Private Warrants”, respectively, or together, the “Public and Private Warrants”). The Public and Private Warrants are recorded on the balance sheet at fair value. The carrying amount is subject to remeasurement at each balance sheet date. With each remeasurement, the carrying amount will be adjusted to fair value, with the change in fair value recognized in the Company’s consolidated statements of operations and comprehensive loss. The Public Warrants are publicly-traded under the symbol “RKLBW”, and the fair value of the Public Warrants at a specific date is determined by the closing price of the Public Warrants as of that date. As such, the Public Warrants are classified within Level 1 of the fair value hierarchy. The Private Warrants are held by a single holder. ASC 820, Fair Value Measurements, within Level 1 of the fair value hierarchy. The closing price of the Public Warrants was $2.96 and $3.58 as of August 25, 2021 and December 31, 2021, respectively. The fair value of the Public and Private Warrants was $48,149 and $58,227 as of August 25, 2021 and December 31, 2021, respectively. The preferred stock warrants consisted of warrants to purchase Legacy Rocket Lab Series B, Series C and Series D preferred stock. On July 12, 2021, the holders of the warrants to purchase Legacy Rocket Lab Series C and Series D preferred stock exercised the warrants. In connection with the closing of the Business Combination, the warrants to purchase Legacy Rocket Lab Series B preferred stock were exchanged for warrants to purchase common stock. On September 10, 2021, these common stock warrants were exercised by the holders (see Note 11). As of December 31, 2020, the fair value of the preferred stock warrants was estimated primarily using a combination of the guideline public company method, an income approach based on discounted estimated future cash flows, the probability-weighted expected return method and the option pricing method. Under these approaches, the value of the warrants was estimated for various future scenarios and then probability-weighted based on the likelihood of each future scenario. The estimates used in the valuation of the warrants are highly subjective in nature and involve a large degree of uncertainty. The valuation of the warrants is considered to be at Level 3 of the fair value hierarchy due to the need to use assumptions in the valuation that are both significant to the fair value measurement and unobservable. There were no transfers between fair value measurement levels during the years ended December 31, 2021 and 2020. The change in the warrant liabilities measured at fair value using level three unobservable inputs is as follows for the years ended December 31, 2021 and 2020:
As of the December 31, 2020, the fair value of the preferred stock warrants was estimated primarily using a combination of the guideline public company method, an income approach based on discounted estimated future cash flows, the
probability-weighted expected return method and the option pricing method. Under these approaches, the value of the warrants was estimated for various future scenarios and then probability-weighted based on the likelihood of each future scenario. The valuation technique changed as of December 31, 2020, due to the lack of a recent and relevant stock transaction as well as recent developments in the Company’s likely liquidation scenarios. The estimates used the valuation of the warrants are highly subjective in nature and involve a large degree of uncertainty. The valuation of the warrants is considered to be at Level 3 of the fair value hierarchy due to the need to use assumptions in the valuation that are both significant to the fair value measurement and unobservable. |
INVENTORIES |
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Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES |
Inventories as of December 31, 2021 and 2020 consisted of the following:
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PREPAIDS AND OTHER CURRENT ASSETS |
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Prepaid Expense and Other Assets, Current [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PREPAIDS AND OTHER CURRENT ASSETS |
Prepaids and other current assets as of December 31, 2021 and 2020 consisted of the following:
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PROPERTY, PLANT AND EQUIPMENT, NET |
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Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT, NET |
Property, plant and equipment, net, as of December 31, 2021 and 2020 consisted of the following:
Depreciation expense recorded in the consolidated statements of operations and comprehensive loss during the years ended December 31, 2021 and 2020 consisted of the following:
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GOODWILL AND INTANGIBLE ASSETS, NET |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS, NET |
Goodwill The following table presents the changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2021 and 2020:
Intangible Assets The components of intangible assets consisted of the following as of December 31, 2021 and 2020:
Amortization expense recorded in the condensed consolidated statements of operations and comprehensive loss during the years ended December 31, 2021 and 2020, respectively consisted of the following:
The following table outlines the estimated future amortization expense related to finite-lived intangible assets held as of December 31, 2021:
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LOAN AND SECURITY AGREEMENT |
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Dec. 31, 2021 | |||
Debt Disclosure [Abstract] | |||
LOAN AND SECURITY AGREEMENT |
Hercules Capital Secured Term Loan On June 10, 2021, the Company entered into a $100,000 secured term loan agreement with Hercules Capital, Inc. (the “Hercules Capital Secured Term Loan”) and borrowed the full amount under the secured term loan agreement. The term loan has a maturity date of June 1, 2024 and is secured by substantially all of the assets of the Company. Payments due for the term loan are interest-only until the maturity date with interest payable monthly in arrears. The outstanding principal bears (i) cash interest at the greater of (a) 8.15% or (b) 8.15% plus the prime rate minus 3.25% and (ii) payment-in-kind interest of 1.25% which is accrued and added to the outstanding principal balance. Prepayment of the outstanding principal is permitted under the loan agreement and subject to certain prepayment fees. In connection with the secured term loan, the Company paid an initial facility charge of $1,000 and the Company will be required to pay an end of term charge of $3,250 upon repayment of the loan. The secured term loan agreement contains customary representations, warranties, non-financial covenants, and events of default. The Company was in compliance with all debt covenants related to its long-term borrowings as of December 31, 2021. As of December 31, 2021, there was $100,124 outstanding under the Hercules Capital Secured Term Loan, of which $2,827 is classified as current in the Company’s condensed consolidated balance sheets, with the remainder classified as long-term borrowing. As of December 31, 2021, the Company had no availability under the Hercules Capital Secured Term Loan. In connection with the $100,000 Hercules Capital Secured Term Loan, the Company repaid the $15,000 advance under the Revolving Line and Term Loan Line and terminated the Loan and Security Agreement (see below). Revolving Line and Term Loan Line On December 23, 2020, the Company entered into a Loan and Security Agreement “(the Loan and Security Agreement”) with Silicon Valley Bank (“SVB”) for a maximum of $35,000 in financing and issued SVB warrants to purchase 121,689 shares of common stock at a price of $1.28 per share (see Note 11). The $ 35,000 could be drawn upon utilizing the Revolving Line and Term Loan Line (the “Revolving Line and Term Loan Line”) subject to certain terms and conditions. On May 13, 2021, the Company borrowed $15,000 as a Term Loan advance under its Loan and Security Agreement. On June 10, 2021, the Company repaid the $15,000 as a Term Loan advance under its Loan and Security Agreement upon funding of the Hercules Capital Secured Term Loan and the Revolving Line was closed. |
WARRANTS |
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||
Warrants and Rights Note Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||
WARRANTS |
Equity Classified Common Stock Warrants During December 2020, in connection with the Loan and Security Agreement (see Note 10), the Company issued warrants to acquire 121,689 shares of common stock at an exercise price of $1.28 per share at any given time during a period of ten years beginning on the instrument’s issuance date. The fair value of these warrants was $496 at issuance which was recorded to interest expense upon repayment of the amounts outstanding under the Loan and Security Agreement during the year ended December 31, 2021. During 2016, the Company issued warrants to acquire 463,710 shares of common stock at an exercise price of approximately $0.09 per share at any given time during a period of ten years beginning on the instrument’s issuance date. The estimated fair value of these warrants was $23 at issuance, reflected as equity in the consolidated balance sheet as of December 31, 2020 within additional paid-in capital. The warrants were classified as equity in accordance with ASC 480, Distinguishing Liabilities from Equity On September 10, 2021, all 585,399 warrants were exercised on a net share basis, which resulted in the holders of the warrants receiving 575,840 shares of common stock. Liability Classified Preferred Stock Warrants During 2015, the Company issued warrants to acquire 305,981 shares of Legacy Rocket Lab Series B Preferred Stock at an exercise price of approximately $0.20 per share at any given time during a period of ten years beginning on the instrument’s issuance date. The fair value of the warrants was $1,466 as of December 31, 2020. In connection with the Business Combination, these warrants were exchanged for warrants to acquire 305,981 shares of common stock at an exercise price of approximately $0.20 per share. Immediately prior to the exchange, the warrants were adjusted to current fair value of $2,975. On September 10, 2021, all 305,981 common stock warrants were exercised on a net share basis, which resulted in the holders of the warrants receiving 303,047 shares of common stock. During 2016, the Company issued warrants to acquire 118,591 shares and 699,388 shares of Legacy Rocket Lab Series C and D Preferred Stock, respectively, at an exercise price of $0.25 and $2.10 per share, respectively, as a sales incentive for entering into a development agreement with a current customer. The warrants vest as certain milestones within the development agreement are achieved and cost associated with the vesting of the warrants is recognized as a reduction in revenues within the condensed consolidated statements of operations and comprehensive loss as the related revenue is recognized. The cost associated with the remeasurement of the vested warrants to fair value is recognized within other (expense) income, net within the condensed consolidated statements of operations and comprehensive loss. As of December 31, 2020, warrants to purchase 86,973 shares of Legacy Rocket Lab Series C Preferred Stock and 512,885 shares of Legacy Rocket Lab Series D Preferred Stock were vested. The fair value of the vested warrants was $2,433 as of December 31, 2020. On July 12, 2021, all of the warrants to purchase Legacy Rocket Lab Series C and D Preferred Stock were exercised into shares of Legacy Rocket Lab Series C and D Preferred Stock. The fair value of the warrants was $6,514 immediately prior to their exercise. The proceeds of the exercise of the warrants are reflected as equity in the condensed consolidated balance sheet as of December 31, 2021 within additional paid-in capital. As of December 31, 2020, and for the period prior to their exchange for common stock warrants or exercise, the above warrants to purchase Legacy Rocket Lab preferred stock were classified as liabilities in accordance with ASC 480, Distinguishing Liabilities from Equity paid-in capital. Public and Private Warrants As part of the closing of the Business Combination, the Company assumed Public Warrants and Private Warrants to purchase up to 10,666,666 shares and 5,600,000 shares of common stock of the Post Combination Company, respectively, which are exercisable at $11.50 per share. Public Warrants may only be exercised for a whole number of shares. No fractional shares will be issued upon exercise of the Public Warrants. The Public Warrants became exercisable on September 29, 2021, one year from the closing of the Vector IPO. The Public Warrants will expire five years from the completion of the Business Combination or earlier upon redemption or liquidation. Once the warrants become exercisable, the Company may redeem the outstanding warrants (except as described with respect to the Private Warrants):
Once the warrants become exercisable, the Company may redeem the outstanding warrants (except as described with respect to the Private Warrants):
If the Company calls the Public Warrants for redemption, as described above under the heading “ Redemption of warrants when the price per common share equals or exceeds $10.00 The Private Warrants are identical to the Public Warrants, except that the Private Warrants and the common shares issuable upon the exercise of the Private Warrants were not transferable, assignable or salable until 30 days after the Business Combination, subject to certain limited exceptions. Additionally, the Private Warrants will be exercisable on a cashless basis and be non-redeemable, except as described above under the heading “Redemption of warrants when the price per common share equals or exceeds $10.00 As of December 31, 2021, the Public and Private Warrants are classified as liabilities in accordance with ASC 815, Derivatives and Hedging On December 22, 2021, the Company announced it would redeem (the “Redemption”) all of its Public Warrants and Private Warrants for a redemption price of $0.10 per Warrant (the “Redemption Price”). In connection with the Redemption, Public Warrants may be exercised by holders prior to January 31, 2022 either (i) in cash, at an exercise price of $11.50 per share of the Company’s common stock or (ii) on a cashless basis, for 0.2843 shares of common stock per Public Warrant. See Note 22 for more information. |
CAPITALIZATION |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CAPITALIZATION |
Common Stock The holder of each share of common stock has the right to one vote for each share and is entitled to notice of any stockholders’ meeting and to vote upon certain events. Redeemable Convertible Preferred Stock Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock, Series E Preferred Stock and Series E-1 Preferred Stock together will be referred as “Preferred Stock”. The dividend rate and issue price of Preferred Stock, par value of $0.0001, as of December 31, 2020 were as follows:
Upon the Closing of the Business Combination, the outstanding shares of Preferred Stock were converted into shares of common stock of the Post Combination Company at the Exchange Ratio of 9.059659. |
STOCK-BASED COMPENSATION |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION |
Equity Incentive Plans The Company has a single active equity incentive plan, the Rocket Lab 2021 Stock Option and Incentive Plan (the “2021 Plan”), with the objective of attracting and retaining available employees and directors by providing stock-based and other performance-based compensation. The 2021 Plan provides for the grant of equity awards to officers, employees, directors and other key employees as well as service providers which include incentive stock options, non-qualified stock options, restricted stock awards, unrestricted stock awards, restricted stock units or any combination of the foregoing any of which may be performance based, as determined by the Company’s Compensation Committee. An aggregate of 59,875,000 shares are reserved for the issuance of awards under the 2021 Plan. The number of shares reserved for issuance under the 2021 Plan automatically increases each January 1, beginning on January 1, 2022, by 5% of the outstanding number of shares of common stock on the immediately preceding December 31, or such lesser amount as determined by the plan administrator. The Company was authorized to issue up to 60,206,872 shares of common stock as equity awards to participants under the 2021 Plan as of December 31, 2021. There were 57,901,558 shares of common stock available for grant as of December 31, 2021. Prior to the Business Combination, the Company maintained the Rocket Lab 2013 Stock Option and Grant Plan (the “2013 Plan”). The 2013 Plan was terminated in connection with the consummation of the Business Combination, and accordingly, no shares are available for future issuance under the 2013 Plan following the Closing Date. Upon the consummation of the Business Combination, all outstanding stock options under the 2013 Plan, whether vested or unvested, were converted into options to purchase a number of shares of common stock of the Post Combination Company based on the Exchange Ratio, with a corresponding adjustment to the exercise price such that there was no change to the aggregate exercise price for the options. Similarly, upon consummation of the Business Combination, all outstanding restricted stock units under the 2013 Plan, whether vested or unvested, were converted into a number of restricted stock units of the Post Combination Company based on the Exchange Ratio. The 2013 Plan will continue to govern outstanding awards granted thereunder. Total stock-based compensation recorded in the consolidated statements of operations and comprehensive loss during the years ended December 31, 2021 and 2020 consisted of the following:
Options Options issued to all optionees under the 2013 Plan vest over four years from the date of issuance (or earlier vesting start date, as determined by the board of directors) as follows: 25% on the first anniversary of date of grant and the remaining vest monthly over the remaining vesting term. The following summarizes the stock option activity of the 2013 Plan for the years ended December 31, 2021 and 2020:
The following weighted-average assumptions were used in the Black-Sholes option-pricing model calculation for stock options granted for the years ended December 31, 2021 and 2020:
As of December 31, 2021, total estimated unrecognized stock compensation expense related to unvested options granted under the 2013 Plan was $1,331, which is expected to be recognized over the next 0.8 years. Performance-based Restricted Stock Units time-based service vesting condition and a performance-based vesting condition, both of which must be satisfied before the restricted stock units will be deemed vested. The time-based service vesting condition is generally satisfied over a period of approximately four years as the employees provide service. The performance-based vesting condition is only satisfied upon a sale event (e.g., (i) liquidation of the Company, (ii) sale of all or substantially all of the assets of the Company, (iii) a merger, reorganization or consolidation pursuant to which the holders of the Company’s outstanding voting power immediately prior to such transaction do not own a majority of the outstanding voting power of the surviving or resulting entity) or the Company’s initial public offering. As of December 31, 2020, the Company believed it is not probable that the performance condition for the performance-based restricted stock units will be satisfied as such events which would satisfy the performance condition are generally not deemed probable until the event occurs. Accordingly, the Company did not recognize any stock-based compensation expense during the year ended December 31, 2020, for these awards. Upon consummation of the Business Combination, it became probable that the performance condition for the performance-based restricted stock units would be satisfied. Accordingly, the Company recognized $26,987 of stock-based compensation expense related to these awards during the year ended December 31, 2021. As of December 31, 2021, the total unrecognized compensation expense related to unvested performance-based restricted stock units granted under the 2013 Plan and 2021 Plan was $49,081 and will be recognized upon vesting. The following summarizes the performance-based restricted stock unit activity of the Plan for the years ended December 31, 2021 and 2020:
Management Redemption In connection with the Business Combination, the Company modified 498,177 shares of common stock and vested options to purchase 558,769 shares of common stock held by certain members of management and obtained through stock-based compensation arrangements to provide for cash redemption, which resulted in a change from equity to liability classification for these shares and options. The Company redeemed these shares and options on August 25, 2021 for $10,000. The Company recognized the redemption amount in excess of the amounts previously recognized within additional paid-in capital for these awards as stock-based compensation expense. This resulted in the recognition of $9,642 of compensation expense associated with the redemption and an adjustment of approximately $359 to additional paid-in capital for stock compensation previously recognized related to these awards. In addition, on August 25, 2021, the Company redeemed 2,989,088 shares of common stock held by management for $30,000 as an adjustment to additional paid-in capital. 2021 Employee Stock Purchase Plan In August 2021, the 2021 Employee Stock Purchase Plan (the “2021 ESPP”) was approved to reserve 9,980,000 shares of common stock for issuance for awards in accordance with the terms of the 2021 ESPP. In addition, the number of shares reserved for issuance will ultimately increase on January 1 of each year from 2022 to 2031 by the lesser of (i) 9,980,000 shares of common stock, (ii) 1% of the number of shares of common stock outstanding as of the close of business on the immediately preceding December 31 or (iii) the number of common stock shares as determined by the Board. The purpose of the 2021 ESPP is to enable eligible employees to use payroll deductions to purchase shares of common stock and thereby acquire an interest in the Company. Eligible employees are offered shares through a 12-month offering period, which consists of two consecutive
6-month purchase periods. Employees may purchase a limited amount of shares of our stock at a discount of up to 15% of the lesser of the fair market value at the beginning of the offering period or the end of each 6-month purchase period. No shares were issued under the 2021 ESPP during the year ended December 31, 2021. As of December 31, 2021, 9,980,000 shares remain available for issuance under the 2021 ESPP. Total ESPP stock-based compensation recorded in the consolidated statements of operations and comprehensive loss for the year ended December 31, 2021 was $338. |
EMPLOYEE BENEFITS |
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Retirement Benefits [Abstract] | |||
EMPLOYEE BENEFITS |
Defined Contribution Plans The Company’s 401(k) Savings and Retirement Plan covers any eligible employee on the active payroll of the Company. The Company’s contributions were approximately $441 and $277 during the years ended December 31, 2021 and 2020, respectively. The Company’s contributions consist of matching contributions, and non-elective contributions on behalf of employees. |
LEASES |
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LEASES |
The Company has operating leases for properties, vehicles and equipment. The Company’s leases have remaining lease terms of one year to nineteen years, some of which include options to extend the lease term for up to one year, and some of which include options to terminate the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. Supplemental balance sheet information related to leases as of December 31, were as follows:
The components of lease expense were as follows during the years ended December 31:
Supplemental cash flow information related to leases is as follows for the years ended December 31: Cash paid for amounts included in the measurement of lease liabilities:
The weighted average remaining lease term related to operating leases was 10.6 years and 12.1 years as of December 31, 2021 and 2020, respectively. The weighted average discount rate related to operating leases was 4.8% and 5.5% as of December 31, 2021 and 2020, respectively. The following is a schedule of the future minimum operating lease payments by year as of December 31:
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COMMITMENTS AND CONTINGENCIES |
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Commitments and Contingencies Disclosure [Abstract] | |||
COMMITMENTS AND CONTINGENCIES |
Litigation and Claims The Company is, and from time to time may be, a party to claims and legal proceedings generally incidental to its business that are principally covered under contracts with its customers and insurance policies. In the opinion of management, there are no legal matters or claims likely to have a material adverse effect on the Company’s financial position, results of operations or cash flows. Other Commitments The Company has commitments under its lease obligations (Note 15). Contingencies The Company records a contingent liability when it is both probable that a loss has been incurred, and the amount can be reasonably estimated. If these estimates and assumptions change or prove to be incorrect, it could have a material impact on the Company’s consolidated financial statements. Contingencies are inherently unpredictable, and the assessments of the value can involve a series of complex judgments about future events and can rely heavily on estimates and assumptions. On May 23, 2016, the Company entered into a launch services agreement with a customer to provide three commercial dedicated launches which would deliver the customer’s payloads over the period of 2017 through 2020. Per the terms of the agreement, each dedicated launch shall have a firm fixed price below current launch vehicle costs. During the year ended December 31, 2018, the Company determined that it was probable that the costs to provide the services as stipulated by the launch services agreement would exceed the fixed firm price of each launch. As such, the Company recorded a provision for contract loss for these three dedicated launches. During the year ended December 31, 2020, one of the three launches occurred. On April 21, 2021, the launch services agreement was amended, resulting in one additional launch and the potential for price increases on the second and third launches dependent on the customer’s desired payload configuration. The provision for contract losses outstanding as of December 31, 2021, which primarily is related to the remaining three remaining launches, was $4,803. |
INCOME TAXES |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES |
The components of the pretax loss from domestic and foreign operations for the years ended December 31, 2021 and 2020 were as follows:
The provision (benefit) for income taxes for the years ended December 31, 2021 and 2020 is as follows:
The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to pretax income as a result of the following differences:
The significant components of the Company’s deferred tax assets and liabilities were as follows as of December 31, 2021 and 2020:
The realization of deferred tax assets may be dependent on the Company’s ability to generate sufficient income in future years in the associated jurisdiction to which the deferred tax assets relate. A valuation allowance against the net deferred tax assets has been recorded at December 31, 2021 and 2020, in the amount of $58,235 and $39,084, respectively, as realization of the deferred tax assets is uncertain. The Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial performance. Based on the review of all positive and negative evidence, including a three-year cumulative pre-tax book loss, it was concluded that a full valuation allowance should be recorded against all U.S. deferred tax assets at December 31, 2021 and 2020. In the event that the Company were to determine that it would be able to realize all or part of its U.S. deferred tax assets in the future, it would decrease the valuation allowance and recognize a corresponding tax benefit in the period in which it made such a determination. The Company acquired Planetary Systems Corporation in a plan of reorganization under IRC Section 368 on November 15, 2021. Under ASC 805-740, the Company recorded deferred tax liabilities of $6,762 related to developed technology, customer lists, backlog, trademarks and trade name and fixed assets as part of the business combination. As a result of recording the deferred tax liabilities, the Company’s valuation allowance decreased by $6,296. While the adjustment is a result of the plan of reorganization, ASC 805-740-30-3 requires the reduction in the valuation allowance to be recognized as a benefit in the income statement, and not as a component of acquisition accounting. As of December 31, 2021 and 2020, the Company had unrecognized tax benefits of $835 and $800 related to net operating losses incurred in prior years, respectively, of which $667 and $632 will affect the effective tax rate if recognized when the Company no longer has a valuation allowance offsetting its deferred tax assets, respectively. The reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits for the years ended December 31 is as follows:
The Company believes it is reasonably possible it will not reduce its unrecognized tax benefits within the next year. Due to the net operating loss (“NOL”) carryforwards, the U.S. federal and state returns are open to examination by the Internal Revenue Service and state jurisdictions for all years beginning with the year ended March 31, 2016. Our foreign subsidiaries are generally subject to examination within four years from the end of the tax year during which the tax return was filed. The years subject to audit may be extended if the entity substantially understates corporate income tax. The Company is not currently under examination by the IRS, foreign or state and local tax authorities. The Company recognizes interest and penalties related to uncertain tax positions as a component of the income tax provision. As of December 31, 2021 and 2020, there were no accrued interest and penalties. At December 31, 2021 and 2020, the Company had federal NOL carryforwards of approximately $195,305 and $143,712, respectively, which is comprised of definite and indefinite NOLs. The Company had definite federal NOL carryforwards of approximately $57,135 as of December 31, 2021 and 2020, which begin to expire in varying amounts beginning in 2034. Federal NOLs generated after 2017 of approximately $138,170 and $86,577 as of December 31, 2021 and 2020, respectively will up to 80% of future taxable income each year. The Company also had state NOL carryforwards of approximately $19,587 and $10,769 as of December 31, 2021 and 2020, respectively, available to reduce future taxable income, if any. If not realized, the state NOLs will begin to expire in varying amounts beginning in 2035. Utilization of the NOL carryforwards may become subject to annual limitations due to ownership changes that could occur in the future as provided by Section 382 of the Internal Revenue Code of 1986, as amended, as well as similar state and foreign provisions. These ownership changes may limit the amount of the NOL and tax credit carryforwards that can be utilized annually to offset future taxable income. The Company has engaged outside consultants to perform a Section 382 analysis, which, as of December 31, 2021, has not been completed. If a Section 382 ownership change has occurred, then the carrying amount of any tax attribute carryforwards may be restricted or eliminated. If eliminated, the related asset would be removed from the deferred tax assets with a corresponding reduction in the valuation allowance. The Company does not record U.S. income taxes on the undistributed earnings of its foreign subsidiaries based upon the Company’s intention to permanently reinvest undistributed earnings to ensure sufficient working capital and further expansion of existing operations outside the United States. In the event the Company is required to repatriate funds from outside of the United States, such repatriation would be subject to local laws, customs and tax consequences. The Jobs Act subjects a U.S. shareholder to tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. The Company has elected to account for GILTI in the year the tax is incurred in accordance with the FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income, which states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or to provide for the tax expense related to GILTI in the year the tax is incurred as a period expense. The Jobs Act amended the Internal Revenue Code (the “Code”), effective for amounts paid or incurred in tax years beginning after December 31, 2021, to eliminate the immediate expensing of research and experimental expenditures (“R&E”) and require taxpayers to charge their R&E expenditures and software development costs (collectively, R&E expenditures) to a capital account. Capitalized costs are required to be amortized over five years (15 years for expenditures attributable to foreign research). Additionally, we may claim the R&E credit only for costs that are eligible to be treated as R&E expenditures under the Code, it is expected that any amounts treated as qualified research expenditures for purposes of the R&E credit also will be capitalized under Code. Generally, we would expect both the amount of our net operating losses and R&E credits generated to decrease compared to tax years 2021 and prior over the next 5 years. Due to our full federal valuation allowance, we anticipate these changes to be immaterial. On March 27, 2020, The CARES Act was signed into law in response to the economic challenges facing U.S. businesses. The CARES Act provides sweeping tax changes in response to the COVID-19 pandemic. Some of the more significant provisions are removal of certain limitations on utilization of net operating losses, increasing the loss carryback period for certain losses to five years, and increasing the ability to deduct interest expense, as well as amending certain provisions of the previously enacted Tax Cuts and Jobs Act. On December 27, 2020, the United States enacted the Consolidated Appropriations Act of 2021 (“CAA”). The CAA includes provisions extending certain CARES Act provisions and adds coronavirus relief, tax and health extenders. |
NET LOSS PER SHARE |
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NET LOSS PER SHARE |
Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding during each period. While outstanding, each series of Preferred Stock was considered to be a participating security. Therefore, the Company applies the two-class method in calculating its net loss per share for periods when the Company generates net income. Net losses are not allocated to the Preferred Stockholders, as they were not contractually obligated to share in the Company’s losses. Diluted net loss per share is computed by dividing net loss attributable to common stockholders by the weighted average number of common and dilutive common equivalent shares outstanding for the period using the treasury-stock method or the as-converted method, or two-class method for participating securities, whichever is more dilutive. Potentially dilutive shares are comprised of Preferred Stock, Preferred Stock warrants, common stock warrants, restricted stock units, stock options, and Earnout Shares issuable upon the achievement of the Stock Price Target (see Note 1). For the years ended December 31, 2021 and 2020, there is no difference in the number of shares used to calculate basic and diluted shares outstanding due to the Company’s net loss and potentially dilutive shares being anti-dilutive. The following table summarizes the computation of basic and diluted net loss per share attributable to common stockholders of the Company for the years ended December 31:
The following equity shares were excluded from the calculation of diluted net loss per share attributable to common stockholders because their effect would have been anti-dilutive for the years ended December 31, 2021 and 2020:
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SEGMENTS |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENTS |
The Company reports segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Company’s reportable segments. The Company manages its business primarily based upon two operating segments, Launch Services and Space Systems. Each of these operating segments represents a reportable segment. Launch Services provides launch services to customer on a dedicated mission or ride share basis. Space Systems is comprised of space engineering, program management, spacecraft components, spacecraft manufacturing and mission operations. Although many of the Company’s contracts with customers contain elements of Space Systems and Launch Services, each reporting segment is managed separately to better align with customer’s needs and the Company’s growth plans. The accounting policies of the various segments are the same as those described in Note 2. The Company evaluates the performance of its reportable segments based on gross profit. For contracts with customers that contain both Space Systems and Launch Services elements, revenues for each reporting segment are generally allocated based upon the overall costs incurred for each of the reporting segments in comparison to total overall costs of the contract. The following table shows information by reportable segment for the years ended December 31, 2021 and 2020:
Management does not regularly review either reporting segment’s total assets or operating expenses. This is because in general, the Company’s
long-lived assets, facilities, and equipment are shared by each reporting segment. |
CONCENTRATION OF CREDIT RISK, SIGNIFICANT CUSTOMERS AND GEOGRAPHIC INFORMATION |
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Risks and Uncertainties [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentration Of Credit Risk, Significant Customers And Geographic Information |
Concentration of Credit Risk and Significant Customers The Company is subject to concentration of credit risk with respect to its cash, cash equivalents and accounts receivable. The Company maintains bank accounts in the United States and New Zealand and attempts to minimize by maintaining its cash, cash equivalents with major high credit quality financial institutions. From time to time cash balances held may exceed limits federally insured by the Federal Deposit Insurance Corporation. The Company has not experienced losses in such accounts and believes it is not exposed to any significant credit risk associated with these accounts. The services provided by Rocket Lab are to U.S. Government and commercial customers. The Company has a significant concentration of credit risk associated with its accounts receivables that is solely based on the good faith and credit of the U.S. Government. We extend differing levels of credit to commercial customers, do not require collateral deposits, and, when necessary, maintain reserves for potential credit losses based upon the expected collectability of accounts receivable. We manage credit risk related to our customers by following credit approval processes, establishing credit limits, performing periodic evaluations of credit worthiness and applying other credit risk monitoring procedures. As of December 31, 2021 and 2020, the Company’s customers that accounted for 10% or more of the total accounts receivable, net, were as follows:
For the years ended December 31, 2021 and 2020, the Company’s customers that accounted for 10% or more of the total revenue were as follows:
Geographic Information The Company’s consolidated net revenues by geographic area based on customer billing location are as follows for the years ended December 31, 2021 and 2020:
Long-lived assets, which consists of property, plant and equipment, net, leased right-of-use assets, intangible assets, net and goodwill, by geographic area are as follows as of December 31:
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RELATED PARTY TRANSACTIONS |
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Dec. 31, 2021 | |||
Related Party Transactions [Abstract] | |||
Related Party Transactions |
There are three members of our board of directors that are affiliated with three separate entities that are invested in our common stock, two of which individually hold greater than 5% beneficial ownership. Each entity was granted one seat on our board which is filled by a partner of the affiliated entity. On September 14, 2018 and through subsequent closings, Rocket Lab sold an aggregate of 39,575,426 shares of its Series E convertible preferred stock for an aggregate purchase price of $137,739. In connection with this transaction, these entities acquired 3,028,345 of Series E convertible preferred stock for $10,539 and Rocket Lab entered into certain Amended and Restated Investors’ Rights Agreement, Amended and Restated Voting Agreement, and Amended and Restated First Refusal and Co-Sale Agreement with each of the purchasers of Rocket Lab’s Series E convertible preferred stock, and certain other Rocket Lab stockholders (collectively, the “Investor Agreements”). Such Investor Agreements were subsequently amended and restated in connection with Rocket Lab’s Series E-1 convertible preferred stock financing on May 18, 2020 whereby Rocket Lab sold an aggregate of 5,890,047 shares of its Series E-1 convertible preferred stock for an aggregate purchase price of $20,500. These entities with an affiliated director purchased 1,292,931 shares of Series E-1 convertible preferred stock for $4,499. In connection with the Business Combination, all of the convertible preferred stock was converted into shares of common stock. As of December 31, 2020 and 2021, there are no amounts due to or from related parties. |
SUBSEQUENT EVENTS |
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Dec. 31, 2021 | |||
Subsequent Events [Abstract] | |||
SUBSEQUENT EVENTS |
Acquisition of SolAero On January 18, 2022, the Company closed on the acquisition (the “SolAero Acquisition”) of SolAero Holdings, Inc. (“SolAero”) pursuant to an Agreement and Plan of Merger (the “SolAero Merger Agreement”), dated as of December 10, 2021, by and among the Company, Supernova Acquisition Corp. (“SolAero Merger Sub”), SolAero, and Fortis Advisors LLC as stockholder representative, which provides for, among other things, the merger of SolAero Merger Sub with and into SolAero, with SolAero being the surviving corporation of the merger and a direct, wholly owned subsidiary of the Company. Pursuant to the terms of the SolAero Merger Agreement, all of the issued and outstanding shares of SolAero were cancelled in exchange for aggregate consideration of $80,000 in cash (the “SolAero Merger Consideration”). In addition, $3,600 of the SolAero Merger Consideration was placed into escrow by the Company in order to secure recovery of any Adjustment Amount (as defined in the SolAero Merger Agreement) and as security against indemnity claims. In connection with the SolAero Acquisition, the Company entered into customary employment or consulting agreements with certain key employees of SolAero. The Company has not yet completed the initial purchase price allocation for this acquisition, including obtaining all of the information required for the valuation of the acquired intangible assets, goodwill, assets and liabilities assumed, due to the timing of the close of the transaction. Warrant Redemption On December 22, 2021, the Company announced the Redemption of all of its Public Warrants and Private Warrants for a redemption. On January 20, 2022, the Company extended the redemption date of its public warrants to January 31, 2022. In connection with the Redemption, Public Warrants were to be exercised by holders prior to January 31, 2022 either (i) in cash, at an exercise price of $11.50 per share of the Company’s common stock or (ii) on a cashless basis, for 0.2843 shares of common stock per Private Warrant and Public Warrant. Subsequent to December 31, 2021 and prior to the conclusion of the redemption notice period on January 31, 2022, an aggregate of 10,383,077 Public Warrants were exercised on a cashless basis in exchange for the issuance of 2,951,781 shares and 10,969 Public Warrants were exercised for an aggregate of 10,969 shares of Company common stock at an exercise price of $11.50 per share, for aggregate cash proceeds to the Company of $126. At the conclusion of the redemption notice period on January 31, 2022, the remaining 270,470 Public Warrants issued and outstanding were redeemed at a price of $0.10 per warrant for aggregate cash payment from the Company of $27. On January 31, 2022, the Public Warrants were delisted from Nasdaq. In addition, subsequent to December 31, 2021, the 5,600,000 Private Warrants were exercised on a cashless basis for an aggregate of 1,592,080 shares of the Company’s common stock. |
SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||
Principals of Consolidation and Basis of Presentation | Principals of Consolidation and Basis of Presentation The consolidated financial statements are presented in conformity with accounting standards generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of Rocket Lab USA, Inc. and its wholly owned subsidiaries after elimination of intercompany accounts and transactions. |
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Emerging Growth Company | Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended (the “Securities Act”), as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. |
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, our management evaluates estimates and assumptions including those related to revenue recognition, contract costs, loss reserves, valuation of warrants and stock-based compensation and deferred tax valuation allowances. We based our estimates on historical data and experience, as well as various |
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Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers cash and cash equivalents to be only those investments which are highly liquid, readily convertible to cash and which have a maturity date within ninety days from the date of purchase. The carrying amounts for the Company’s cash equivalents approximate fair value due to their short maturities. Cash equivalents are recorded at fair value and consist primarily of money market funds. |
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Restricted Cash | Restricted Cash The Company considers restricted cash to include any cash that is legally restricted as to withdrawal or usage. The Company had $1,116 and $1,141 as of December 31, 2021 and 2020, respectively. The balance relates to collateral for letters of credit and money market accounts and is presented in restricted cash in the consolidated balance sheets. |
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Accounts Receivable, Net | Accounts Receivable, Net Accounts receivables represent amounts billed and currently due from customers. The amounts are stated at their net estimated realizable value. The Company monitors collections and payments from its customers and maintains an allowance for doubtful accounts, which effective January 1, 2020, is based upon applying an expected credit loss rate to receivables based on the historical loss rate from similar high-risk customers adjusted for current conditions, including any specific customer collection issues identified, and forecasts of economic conditions. Delinquent account balances are written off after management has determined that the likelihood of collection is remote. The allowance for credit losses as of December 31, 2021 and 2020, and the activity in this account, including the current-period provision for expected credit losses for the years ended December 31, 2021 and 2020, were not material. |
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Inventories | Inventories Inventories consist of components and subassemblies, spare parts and consumable goods. Inventories are recorded at actual acquisition costs and adjusted to the lower of cost or estimated net realizable value. Costs include direct material, direct labor, applicable manufacturing and engineering overhead, and other direct costs. The determination of net realizable value of
long-term contract costs is based upon quarterly contract reviews that determine an estimate of costs to be incurred to complete all contract requirements. When actual contract costs and the estimate to complete exceed total estimated contract revenues, a loss provision is recorded. |
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Prepaids and Other Current Assets | Prepaids and Other Current Assets Prepaids and other current assets include goods and services tax, prepaid expenses, government grant receivables and miscellaneous receivables. |
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Property, Plant and Equipment, Net | Property, Plant and Equipment, Net Property, plant and equipment, are stated at cost, less accumulated depreciation. Depreciation on Launch Services is calculated using a diminishing value method which approximates a double-declining method over the estimated useful lives of assets. Depreciation on Space Systems is calculated using the straight-line method over the estimated useful lives of assets.
Launch site assets include buildings, machinery and equipment at launch sites. Repair and maintenance costs are expensed as incurred. Assets disposed of or retired are removed from cost and accumulated depreciation accounts and any resulting gain or loss is reflected in the Company’s consolidated statements of operations and comprehensive loss. |
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Business Combination | Business Combination The results of businesses acquired in a business combination are included in our consolidated financial statements from the date of the acquisition. The Company uses the acquisition method of accounting for business combinations and recognizes assets acquired and liabilities assumed measured at their fair values on the date acquired. Goodwill is measured as of the acquisition date as the excess of consideration transferred over the net acquisition date fair value of the assets acquired and the liabilities assumed. The Company performs valuations of assets acquired and liabilities assumed and allocates the purchase price to its respective assets and liabilities. Determining the fair value of assets acquired and liabilities assumed requires us to use significant judgment and estimates, including the selection of valuation methodologies, estimates of future revenue, costs and cash flows, discount rates and selection of comparable companies. The Company engages the assistance of valuation specialists in concluding on fair value measurements in connection with determining fair values of assets acquired and liabilities assumed in a business combination. |
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Intangible Assets, Net | Intangible Assets, Net Intangible assets consist of purchased intangible assets including developed technology,
in-process research and development, customer relationships, backlog, trademarks and tradenames, non-compete agreements, capitalized software and capitalized intellectual property and are amortized over their useful lives ranging from to twenty years using the straight-line method of amortization. The Company evaluates the recoverability of intangible assets periodically by considering events or circumstances that may warrant revised estimates of useful lives or that indicate the asset may be impaired. |
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Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets consist of property, plant equipment and intangible assets with estimable useful lives subject to depreciation and amortization. The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Recoverability of an asset or asset group to be held and used is measured by a comparison of the carrying amount of an asset or asset group to the estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of the asset or asset group exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset or asset group exceeds the fair value of the asset or asset group. There was no impairment of long-lived assets during the years ended December 31, 2021 and 2020. |
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Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combination. We test goodwill for impairment at least annually during the fourth fiscal quarter, or more frequently if indicators of impairment exist during the fiscal year. Events or circumstances which could trigger an impairment review include a significant adverse change in legal factors or in the business climate, loss of key customers, an adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, significant changes in the manner of the Company’s use of the acquired assets or the strategy for the Company’s overall business, significant negative industry or economic trends or significant underperformance relative to expected historical or projected future results of operations. When testing goodwill for impairment, the Company first performs a qualitative assessment. If the Company determines it is more likely than not that a reporting unit’s fair value is less than its carrying amount, then a one-step impairment test is required. If the Company determines it is not more likely than not a reporting unit’s fair value is less than its carrying amount, then no further analysis is necessary. To identify whether a potential impairment exists, the Company compares the estimated fair value of the reporting unit with its carrying amount, including goodwill. If the estimated fair value of the reporting unit exceeds its carrying amount, goodwill is not considered to be impaired. If, however, the fair value of the reporting unit is less than its carrying amount, then such balance would be recorded as an impairment loss. Any impairment loss is limited to the carrying amount of goodwill allocated to the reporting unit. There was no impairment of goodwill during the years ended December 31, 2021 and 2020. |
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Fair Value of Financial Instruments | Fair Value of Financial Instruments We utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. We estimate fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which is categorized in one of the following levels:
The Company considers the carrying values of cash, restricted cash, accounts receivable, accounts payable, and accrued expenses to approximate fair value for these financial instruments due to the short maturities of these instruments. The Company’s preferred stock warrant options and public and private warrants are carried at fair value and determined according to the fair value hierarchy above (Note 5). |
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Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis | Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis Certain assets and liabilities, including goodwill and intangible assets, are subject to measurement at fair value on a
non- recurring basis upon initial acquisition in a business combination or if they are deemed to be impaired as a result of an impairment review. |
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Fair Value of Common Stock | Fair Value of Common Stock Subsequent to the Business Combination, the fair value of the Company’s common stock is based on the closing market price on the date of grant. Prior to the Business Combination, due to the absence of an active market for the Company’s common stock, the fair value of the Company’s common stock is estimated based on current available information. This estimate required significant judgment and considers several factors, such as estimated probabilities of future liquidation scenarios, future equity values estimated based on project future cash flows and guideline public company information, discount rates, expected volatility and discounts for lack of marketability. These estimates were highly subjective in nature and involved a large degree of uncertainty. Such estimates of the fair value of the Company’s common stock were used in the measurement of stock-based compensation expense and common stock and preferred stock warrants prior to the Business Combination. |
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Equity Issuance Costs | Equity Issuance Costs Certain transaction costs incurred in connection with the Merger Agreement that are direct and incremental to the Business Combination (see Note 1) have been recorded as a component of additional paid-in capital within the Condensed Consolidated Balance Sheets. |
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Revenue Recognition | Revenue Recognition The Company generates revenue from launch services and space systems. Launch services may be provided as a mission dedicated to a single customer or as a rideshare arrangement with multiple spacecraft from multiple customers. Space systems revenue is comprised of space engineering, program management, spacecraft components, spacecraft manufacturing, space software and mission operations. Revenue is recognized when control of the promised product or service is transferred to our customers at an amount that reflects the consideration the Company expects to be entitled to in exchange for those products or services. The Company’s revenue contracts are generally fixed-price contracts or time and materials contracts depending upon the nature of the contract. In fixed-price contracts, to the extent actual costs vary from the cost upon which the price was negotiated, the company will generate variable levels of profit or could incur a loss. The Company enters into contracts that can include various combinations of products and services, including contracts that contain both launch services and space systems products and services. In general, each launch and space system product or service is capable of being distinct and accounted for as separate performance obligations. Where contracts contain a single performance obligation, the entirety of the transaction price is allocated to this one performance obligation. For contracts with multiple performance obligations, the transaction price is allocated to each performance obligation based on the estimated standalone selling price of the product or service underlying each performance obligation. The standalone selling price represents the amount the Company would sell the product or service to a customer on a standalone basis. The transaction price represents the amount of consideration to which the Company expects to be entitled in exchange for transferring the promised services to its customers. The consideration promised within a contract may include fixed amounts and variable amounts. Variable consideration may consist of final milestone payments or mission success fees that are earned when the payload is delivered to the specified orbit, amongst other types. The Company estimates variable consideration at the most likely amount, which is included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur. The Company recognizes revenue when or as control is transferred to the customer, either over-time or at a point-in-time. Generally, launch services revenue is recognized at a point-in-time over-time when it is determined that there is no alternative use for the mission, due to contractual or practical limitations, and when the Company has an enforceable right to payment for the services performed to date including a reasonable profit. Revenue for space systems is recognized at a point-in-time or over-time depending upon the nature of the contract with customer. For contracts to provide space engineering, program management and mission operations, the Company recognizes revenues over-time as the customer simultaneously receives and consumes the benefits provided by the Company’s performance as the Company performs. Similarly, spacecraft manufacturing is recognized over-time when it is determined that there is no alternative use for the spacecraft, due to contractual or practical limitations, and where the Company has an enforceable right to payment for the services performed to date including a reasonable profit. Contracts to provide components for spacecraft that do not qualify for over-time recognition are recognized at a point-in-time when control is transferred. For revenue recognized over-time, the Company uses either an input method, based on costs incurred relative to total estimated costs at completion to estimate the percentage of completion, or an output method, based upon days of service, depending upon the nature of the performance obligation. For revenues measured utilizing an input method, the costs incurred are determined by assessing the physical and technical progress on the performance obligation applied to the standard costs. Due to the nature of the work performed under spacecraft construction contracts, the estimation of physical and technical progress requires judgment and is subject to many variables including but not limited to actual progress and costs incurred, labor productivity, changes in cost and availability of materials. Contracts for space software provide the customer with a right to use the software as it exists when made available to the customer. Customers may purchase perpetual entity-wide licenses or mission-based licenses, which provide customers with the same functionality and differ primarily in the number of spacecraft into which the software may be integrated. Revenue from space software is recognized upfront at the point-in-time when the software is made available to the customer. When customers purchase when and if available software maintenance in addition to the space software license, revenues allocated to the maintenance are recognized ratably over the maintenance period. Due to their nature, time and materials contracts contain variable consideration; however, in general, the Company’s performance obligations under time and materials contracts qualify for the “right to invoice” practical expedient. Under this practical expedient, the Company recognizes revenue, over time, in the amount to which the Company has a right to invoice. In addition, the Company is not required to estimate such variable consideration upon inception of the contract and reassess the estimate each reporting period. The Company determined that this method best represents the transfer of services as, upon billing, the Company has a right to consideration from a customer in an amount that directly corresponds with the value to the customer of the Company’s performance completed to date. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. Timing may differ between the satisfaction of performance obligations and the invoicing and collection of amounts related to our contracts with customers. Contract assets include unbilled amounts under contracts when revenue recognized exceeds the amount billed to the customer. Contract assets are transferred to accounts receivable when the right to invoice becomes unconditional and the invoice is issued. Contract assets are classified as current if the invoice will be delivered to the customer within the succeeding 12-month period with the remaining recorded as long-term. These contract assets are not considered a significant financing component of the company’s contracts as the payment terms are intended to protect the customer in the event the company does not perform on its obligations under the contract. Contract liabilities primarily consists of customer billings in advance of revenues being recognized. Contract liabilities are not a significant financing component as they are generally utilized to pay for contract costs within a one-year period or are used to ensure the customer meets contractual requirements. |
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Cost of Revenues | Cost of Revenues Cost of revenues includes direct material costs, compensation and benefits and other costs, such as launch service supplies and consumables, lab supplies, insurance, travel, vehicle and equipment related costs directly associated with generating revenues. |
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Selling, General and Administrative | Selling, General and Administrative Selling, general and administrative expenses consist of indirect costs, including management and executive compensation, corporate costs related to finance, accounting, human resources, information technology, legal, administrative, safety, professional services, rent and other general expenses. Advertising costs are expensed as incurred and presented within selling, general and administrative expenses in the consolidated statements of operations and comprehensive loss. For the years ended December 31, 2021 and 2020, advertising costs were not material. |
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Research and Development Costs, net | Research and Development Costs, net Research and development costs, net primarily include labor, prototype, and professional services related to the development of our Space System platform and components and the Neutron Launch Vehicle. These costs are based on a cost model for research and development relating to internal product development programs not associated with customer contractual arrangements. These costs are presented net of government grants on the consolidated statements of operations and comprehensive loss. |
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Government Grants | Government Grants The Company entered into a funding agreement for a research and development growth grant with an agency of the New Zealand federal government during the year ended 2013. The grant reimbursed up to 20% of the Company’s qualifying research and development costs incurred. The Company recognized a grant receivable once eligible reimbursable research and development expenses are incurred and submitted for reimbursement. Any corresponding grant receivable would be presented within prepaids and other current assets on the consolidated balance sheets. The Company received $3,695 in grant proceeds during the year ended December 31, 2020, which is presented within research and development costs, net in consolidated statements of operations and comprehensive loss. The Company entered into a research and development tax incentive program with the New Zealand government effective from January 1, 2021. The tax incentive will reimburse up to 15% of the Company’s qualifying research and development costs incurred. The Company may recognize a grant receivable once eligible reimbursable research and development expenses are incurred and submitted for reimbursement. Any corresponding grant receivable will be presented within other current assets on the consolidated balance sheets. The Company accrued for an estimated amount of $2,563 during the year ended December 31, 2021, which is presented within research and development costs, net in consolidated statements of operations and comprehensive loss. The Company entered into an agreement with the U.S. Space Force’s Space Systems Command for development of the Neutron launch vehicle’s upper stage during the year ended 2021. The Company received $393 in proceeds during the year ended December 31, 2021, which is presented within research and development costs, net in consolidated statements of operations and comprehensive loss. |
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Stock-Based Compensation | Stock-Based Compensation The Company’s stock compensation plan is classified as an equity plan which permits stock awards in the form of employee stock options and restricted stock awards. For awards that vest solely based on continued service, the fair value of an award is recognized as an expense over the requisite service period on a straight-line basis. For awards that contain performance conditions, the fair value of an award is recognized based on the probability of the performance condition being met. The fair value of stock options under the Company’s employee equity incentive plan are estimated as of the grant date using the Black-Scholes option valuation model, which is affected by estimates of the fair value per share of the Company’s common stock, the risk-free interest rate, expected dividend yield, expected term and the expected share price volatility of its common shares over the expected term, which are estimated as follows:
The fair value of restricted stock units granted under the Company’s employee equity incentive plans are estimated as of the grant date in an amount equal to the estimated fair value per share of the Company’s common stock. Forfeitures are recognized as incurred for as they occur. Unless otherwise approved, options must be exercised while the individual is an employee or within 90-days of termination when applicable. The expiration date of newly issued options is ten years after grant date unless earlier terminated as provided for in the Plan. The assumptions used in calculating the fair value of stock-based awards represent our best estimates, however, these estimates involve inherent uncertainties and the application of judgment. As a result, if factors change or we use different assumptions,
stock-based compensation expense could be materially different in the future. |
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Income Taxes | Income Taxes The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized by applying the statutory tax rates in effect in the years in which the differences between the financial reporting and tax filing bases of existing assets and liabilities are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company utilizes a two-step approach to recognizing and measuring uncertain income tax positions (tax contingencies). The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. The Company makes estimates, assumptions and judgments to determine its provision for income taxes and also for deferred tax assets and liabilities and any valuation allowances recorded against deferred tax assets. Actual future operating results and the underlying amount and type of income could differ materially from the Company’s estimates, assumptions and judgments thereby impacting its consolidated financial position and results of operations. The Company’s policy is to recognize interest and/or penalties related to all tax positions in income tax expense. To the extent that accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision in the period that such determination is made. Interest and penalties related to uncertain tax positions were not material as of and for the years ended December 31, 2021 and 2020. |
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Segment Information | Segment Information Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s CODM is its Chief Executive Officer. The Company has determined that it operates in two reportable segments: Launch Services and Space Systems. |
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Foreign Currencies | Foreign Currencies The functional currency of certain of the Company’s wholly owned subsidiaries is the currency of the primary economic environment in which they operate. Assets and liabilities denominated in currencies other than the functional currency are remeasured at the exchange rate in effect on the balance sheet date, with exchange differences or remeasurement included in other (expense) income, net on our consolidated statement of operations and comprehensive loss. Revenue and expenses are translated at average rates of exchange prevailing during the respective period. Translation adjustments resulting from this process are recorded as a component of accumulated other comprehensive income (loss) in the consolidated statement of redeemable convertible preferred stock and shareholders’ deficit. |
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Leases | Leases The Company leases certain property, vehicles and equipment. At contract inception, the Company determines if contract contains a lease and whether the lease should be classified as an operating or financing lease. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, it uses the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The ROU asset also includes any lease prepayments made and excludes lease incentives. The Company’s lease terms include options to extend or terminate the lease when it is reasonably certain that it will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. Finance leases result in the recognition of depreciation expense, which is recognized on a straight-line basis over the expected life of the leased asset, and interest expense, which is recognized following an effective interest rate method. The Company excludes
short-term leases (term of 12 months or less) from the balance sheet presentation and accounts for non-lease and lease components in a contract as a single lease component for certain asset classes. |
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Warrant Liability | Warrant Liability The Company accounts for the warrants assumed in connection with the Business Combination in accordance with the guidance contained in ASC 815-40,
Derivatives and Hedging re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the Consolidated Statements of Operations and Comprehensive Loss. |
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Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2021-08, Business Combinations (Topic 805) Accounting for Contract Assets and Contract Liabilities from Contracts with Customers Revenue from Contracts with Customers For public business entities, the amendments in ASU No. 2021-08 are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The amendments in ASU
No. 2021-08 should be applied prospectively to business combinations occurring on or after the effective date of the amendments. Early adoption of the amendments is permitted. An entity that early adopts should apply the amendments (1) retrospectively to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period of early application and (2) prospectively to all business combinations that occur on or after the date of initial application. The Company has early adopted ASU No. 2021-08 effective January 1, 2021, which resulted in the contract liabilities being recognized under ASC 606 instead of fair value at the acquisition dates. There were no other impacts due to the adoption of this guidance on our consolidated financial statements. |
DESCRIPTION OF THE BUSINESS (Tables) |
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Summary of reconciles the elements of the business combination to the condensed consolidated statement | The following table reconciles the elements of the Business Combination to the Condensed Consolidated Statement of Cash Flows and the Condensed Consolidated Statement of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) for the year ended December 31, 2021:
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SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Schedule of Estimated Useful Lives of Property Plant and Equipment | Depreciation on Space Systems is calculated using the straight-line method over the estimated useful lives of assets.
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REVENUES (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Disaggregation of Revenue | The following tables provide information about disaggregated revenue and a reconciliation of the disaggregated revenue during the years ended December 31, 2021 and 2020:
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Balances Related to Enforceable Contracts | The following table presents the balances related to enforceable contracts as of December 31, 2021 and 2020:
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Changes in Contract Liabilities | Changes in contract liabilities were as follows:
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BUSINESS COMBINATIONS (Tables) |
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Summary of consolidated statement of operations includes revenues and net income | These unaudited consolidated pro forma operating results are presented for illustrative purposes only and are not indicative of the operating results that would have been achieved had the acquisitions occurred on January 1, 2020, nor does the information project results for any future period.
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Sinclair Interplanetary [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimates Fair Value of Assets Acquired and Liabilities Assumed | The following table presents estimates of the fair value of the assets acquired and the liabilities assumed by the Company in the acquisition:
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Summary of Identifiable Intangible Assets Acquired and Related Expected Lives for the Finite-Lived Intangible Assets | The following is a summary of identifiable intangible assets acquired and the related expected lives for the finite-lived intangible assets:
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Summary of Stock Based Compensation Expense | The following table provides stock-based compensation expense recognized in conjunction with the Sinclair Interplanetary acquisition:
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Advanced Solutions Inc [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimates Fair Value of Assets Acquired and Liabilities Assumed | The following table presents estimates of the preliminary fair value of the assets acquired and the liabilities assumed by the Company in the acquisition:
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Summary of Identifiable Intangible Assets Acquired and Related Expected Lives for the Finite-Lived Intangible Assets | The following is a summary of preliminary identifiable intangible assets acquired and the related expected lives for the finite-lived intangible assets (in thousands):
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Planetary Systems Corporation [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimates Fair Value of Assets Acquired and Liabilities Assumed | The following table presents estimates of the preliminary fair value of the assets acquired and the liabilities assumed by the Company in the acquisition:
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Summary of Identifiable Intangible Assets Acquired and Related Expected Lives for the Finite-Lived Intangible Assets | The following is a summary of preliminary identifiable intangible assets acquired and the related expected lives for the finite-lived intangible assets (in thousands):
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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | As of December 31, 2021 and 2020, the following financial assets and liabilities are measured at fair value on a recurring basis and are categorized using the fair value hierarchy as follows:
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Summary of Warrant Liabilities Measured at Fair Value | The change in the warrant liabilities measured at fair value using level three unobservable inputs is as follows for the years ended December 31, 2021 and 2020:
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INVENTORIES (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory | Inventories as of December 31, 2021 and 2020 consisted of the following:
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PREPAIDS AND OTHER CURRENT ASSETS (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid Expense and Other Assets, Current [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Prepaids and Other Current Assets | Prepaids and other current assets as of December 31, 2021 and 2020 consisted of the following:
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PROPERTY, PLANT AND EQUIPMENT, NET (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property Plant and Equipment, Net | Property, plant and equipment, net, as of December 31, 2021 and 2020 consisted of the following:
Depreciation expense recorded in the consolidated statements of operations and comprehensive loss during the years ended December 31, 2021 and 2020 consisted of the following:
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GOODWILL AND INTANGIBLE ASSETS, NET (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in the Carrying Amount of Goodwill | The following table presents the changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2021 and 2020:
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Components of Intangible Assets | The components of intangible assets consisted of the following as of December 31, 2021 and 2020:
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Summary of Amortization expense | Amortization expense recorded in the condensed consolidated statements of operations and comprehensive loss during the years ended December 31, 2021 and 2020, respectively consisted of the following:
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Schedule of Estimated Future Amortization Expense Related to Finite Intangible Assets | The following table outlines the estimated future amortization expense related to finite-lived intangible assets held as of December 31, 2021:
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CAPITALIZATION (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Temporary Equity | The dividend rate and issue price of Preferred Stock, par value of $0.0001, as of December 31, 2020 were as follows:
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STOCK-BASED COMPENSATION (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock-based Compensation Recorded in Consolidated Statements of Operations and Comprehensive Loss | Total stock-based compensation recorded in the consolidated statements of operations and comprehensive loss during the years ended December 31, 2021 and 2020 consisted of the following:
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Summary of Stock Option Activity | The following summarizes the stock option activity of the 2013 Plan for the years ended December 31, 2021 and 2020:
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Summary of Weighted-average Assumptions | The following weighted-average assumptions were used in the Black-Sholes option-pricing model calculation for stock options granted for the years ended December 31, 2021 and 2020:
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Summary of Performance-based Restricted Stock Unit Activity | The following summarizes the performance-based restricted stock unit activity of the Plan for the years ended December 31, 2021 and 2020:
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LEASES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases as of December 31, were as follows:
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Components of Lease Expense | The components of lease expense were as follows during the years ended December 31:
|
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Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases is as follows for the years ended December 31: Cash paid for amounts included in the measurement of lease liabilities:
|
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Schedule of Future Minimum Operating Lease Payments | The following is a schedule of the future minimum operating lease payments by year as of December 31:
|
INCOME TAXES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Pretax Loss From Domestic and Foreign Operations | The components of the pretax loss from domestic and foreign operations for the years ended December 31, 2021 and 2020 were as follows:
|
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Schedule of Provision (Benefit) for Income Taxes | The provision (benefit) for income taxes for the years ended December 31, 2021 and 2020 is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Differences Between Federal Statutory Income Tax Rate and Provision for Income Taxes | The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to pretax income as a result of the following differences:
|
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Schedule of Deferred Tax Assets and Liabilities | The significant components of the Company’s deferred tax assets and liabilities were as follows as of December 31, 2021 and 2020:
|
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Schedule of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | The reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits for the years ended December 31 is as follows:
|
NET LOSS PER SHARE (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Basic and Diluted net Loss Per Share Attributable to Common Stockholders | The following table summarizes the computation of basic and diluted net loss per share attributable to common stockholders of the Company for the years ended December 31:
|
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Summary of Diluted Net Loss Per Share Attributable to Common Stockholders | The following equity shares were excluded from the calculation of diluted net loss per share attributable to common stockholders because their effect would have been anti-dilutive for the years ended December 31, 2021 and 2020:
|
SEGMENTS (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Information by Reportable Segment | The following table shows information by reportable segment for the years ended December 31, 2021 and 2020:
|
CONCENTRATION OF CREDIT RISK, SIGNIFICANT CUSTOMERS AND GEOGRAPHIC INFORMATION (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Total Accounts Receivable Net | As of December 31, 2021 and 2020, the Company’s customers that accounted for 10% or more of the total accounts receivable, net, were as follows:
|
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Schedules of Total Revenue | For the years ended December 31, 2021 and 2020, the Company’s customers that accounted for 10% or more of the total revenue were as follows:
|
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Schedule of Consolidated Net Revenue by Geographic Area | The Company’s consolidated net revenues by geographic area based on customer billing location are as follows for the years ended December 31, 2021 and 2020:
|
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Schedule of Long-lived Assets by Geographic Area | Long-lived assets, which consists of property, plant and equipment, net, leased right-of-use assets, intangible assets, net and goodwill, by geographic area are as follows as of December 31:
|
Description Of The Business - Summary of Reconciles the Elements of the Business Combination to the Condensed Consolidated Statement (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Cash | $ 310,330 | |
Less: transaction costs and advisory fees paid | (49,075) | |
Net proceeds from Rocket Lab Business Combination | 728,255 | |
Less: Accrued transaction costs | (27) | |
Plus: Prepaid expenses assumed as part of Business Combination | 219 | |
Less: Warrants assumed as part of Business Combination | (48,149) | |
Less: Repurchase of Management Shares | (30,358) | |
Reverse recapitalization, net of transaction costs | 649,940 | |
Pipe Investment [Member] | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Cash | $ 467,000 |
Revenues - Reconciliation of Disaggregation of Revenue (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Disaggregation Of Revenue [Line Items] | ||
Revenues | $ 62,237 | $ 35,160 |
Launch Services | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 38,971 | 33,085 |
Space Systems | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 23,266 | 2,075 |
Point-in-time | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 49,154 | 33,903 |
Point-in-time | Launch Services | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 36,576 | 31,993 |
Point-in-time | Space Systems | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 12,578 | 1,910 |
Over time | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 13,083 | 1,257 |
Over time | Launch Services | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 2,395 | 1,092 |
Over time | Space Systems | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | $ 10,688 | $ 165 |
Revenues - Balances Related to Enforceable Contracts (Detail) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|---|
Disaggregation of Revenue [Abstract] | |||
Accounts receivable | $ 13,957 | $ 2,730 | |
Contract assets | 2,490 | 2,045 | |
Contract liabilities | $ 59,749 | $ 26,132 | $ 10,211 |
Revenues - Changes in Contract Liabilities (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Disaggregation of Revenue [Abstract] | ||
Contract liabilities, beginning of year | $ 26,132 | $ 10,211 |
Contract liabilities assumed at acquisition | 5,560 | 0 |
Customer advances received | 41,614 | 24,694 |
Recognition of unearned revenue | (13,557) | (8,773) |
Contract liabilities, end of year | $ 59,749 | $ 26,132 |
Revenues - Additional Information (Detail) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2021
USD ($)
| |
Disaggregation of Revenue [Abstract] | |
Remaining unsatisfied performance obligations | $ 241,463 |
Revenue recognized description | approximately 60% is expected to be recognized within 12 months, with the remaining 40% to be recognized beyond 12 months. |
Business Combinations - Summary of Identifiable Intangible Assets Acquired and Related Expected Lives for the Finite-Lived Intangible Assets (Detail) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2021
USD ($)
| |
Sinclair Interplanetary [Member] | |
Business Acquisition [Line Items] | |
Total identifiable intangible assets acquired | $ 10,250 |
Sinclair Interplanetary [Member] | Developed Technology [Member] | |
Business Acquisition [Line Items] | |
Estimated Life in Years | 7 years |
Total identifiable intangible assets acquired | $ 9,200 |
Sinclair Interplanetary [Member] | In Process Technology [Member] | |
Business Acquisition [Line Items] | |
Total identifiable intangible assets acquired | $ 100 |
Sinclair Interplanetary [Member] | Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Estimated Life in Years | 3 years |
Total identifiable intangible assets acquired | $ 600 |
Sinclair Interplanetary [Member] | Backlog [Member] | |
Business Acquisition [Line Items] | |
Estimated Life in Years | 8 months 12 days |
Total identifiable intangible assets acquired | $ 50 |
Sinclair Interplanetary [Member] | Trademarks and Trade Names [Member] | |
Business Acquisition [Line Items] | |
Estimated Life in Years | 3 years |
Total identifiable intangible assets acquired | $ 100 |
Sinclair Interplanetary [Member] | Noncompete Agreements [Member] | |
Business Acquisition [Line Items] | |
Estimated Life in Years | 4 years |
Total identifiable intangible assets acquired | $ 200 |
Advanced Solutions Inc [Member] | |
Business Acquisition [Line Items] | |
Total identifiable intangible assets acquired | $ 15,900 |
Advanced Solutions Inc [Member] | Developed Technology [Member] | |
Business Acquisition [Line Items] | |
Estimated Life in Years | 7 years |
Total identifiable intangible assets acquired | $ 11,400 |
Advanced Solutions Inc [Member] | In Process Technology [Member] | |
Business Acquisition [Line Items] | |
Total identifiable intangible assets acquired | $ 300 |
Advanced Solutions Inc [Member] | Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Estimated Life in Years | 10 years |
Total identifiable intangible assets acquired | $ 3,100 |
Advanced Solutions Inc [Member] | Trademarks and Trade Names [Member] | |
Business Acquisition [Line Items] | |
Estimated Life in Years | 7 years |
Total identifiable intangible assets acquired | $ 1,100 |
Planetary Systems Corporation [Member] | |
Business Acquisition [Line Items] | |
Total identifiable intangible assets acquired | $ 33,000 |
Planetary Systems Corporation [Member] | Developed Technology [Member] | |
Business Acquisition [Line Items] | |
Estimated Life in Years | 8 years |
Total identifiable intangible assets acquired | $ 23,500 |
Planetary Systems Corporation [Member] | In Process Technology [Member] | |
Business Acquisition [Line Items] | |
Total identifiable intangible assets acquired | $ 1,500 |
Planetary Systems Corporation [Member] | Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Estimated Life in Years | 15 years |
Total identifiable intangible assets acquired | $ 3,400 |
Planetary Systems Corporation [Member] | Backlog [Member] | |
Business Acquisition [Line Items] | |
Estimated Life in Years | 1 year |
Total identifiable intangible assets acquired | $ 400 |
Planetary Systems Corporation [Member] | Trademarks and Trade Names [Member] | |
Business Acquisition [Line Items] | |
Estimated Life in Years | 15 years |
Total identifiable intangible assets acquired | $ 4,200 |
Business Combinations - Summary of Stockbased Compensation Expense Recognized in Conjunction with the Sinclair Interplanetary Acquisition (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Aug. 25, 2021 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Business Acquisition [Line Items] | |||
Allocated share based compensation | $ 9,642 | $ 32,557 | $ 4,218 |
Sinclair Interplanetary [Member] | |||
Business Acquisition [Line Items] | |||
Allocated share based compensation | 3,032 | 934 | |
Stock Issued In Conjunction With The Acquisition | Sinclair Interplanetary [Member] | |||
Business Acquisition [Line Items] | |||
Allocated share based compensation | 1,402 | 934 | |
Earnout Share Achievement | Sinclair Interplanetary [Member] | |||
Business Acquisition [Line Items] | |||
Allocated share based compensation | $ 1,630 | $ 0 |
Business Combinations - Summary of consolidated statement of operations includes revenues and net income (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
As Reported [Member] | ||
Business Acquisition [Line Items] | ||
Revenues | $ 62,237 | $ 35,160 |
Net (loss) income | (117,320) | (55,005) |
Acquisitions Pro-Forma (Unaudited) [Member] | ||
Business Acquisition [Line Items] | ||
Revenues | 21,629 | 21,525 |
Net (loss) income | 6,377 | 6,664 |
Consolidated Pro-Forma (Unaudited) [Member] | ||
Business Acquisition [Line Items] | ||
Revenues | 83,866 | 56,685 |
Net (loss) income | $ (110,943) | $ (48,341) |
Fair Value Of Financial Instruments - Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|---|
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | |||
Warrants-preferred stock (Note 11) | $ 3,899 | $ 1,284 | |
Fair Value, Recurring [Member] | |||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | |||
Money market accounts | 635,269 | 49,869 | |
Total | 635,269 | 49,869 | |
Public and Private Warrants liabilities | 58,227 | ||
Warrants-preferred stock (Note 11) | 3,899 | ||
Total | 58,227 | 3,899 | |
Level 1 | Fair Value, Recurring [Member] | |||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | |||
Money market accounts | 635,269 | 49,869 | |
Total | 635,269 | 49,869 | |
Public and Private Warrants liabilities | 58,227 | ||
Warrants-preferred stock (Note 11) | |||
Total | 58,227 | 0 | |
Level 2 | Fair Value, Recurring [Member] | |||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | |||
Money market accounts | 0 | ||
Total | 0 | ||
Public and Private Warrants liabilities | 0 | ||
Total | 0 | ||
Level 3 | Fair Value, Recurring [Member] | |||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | |||
Public and Private Warrants liabilities | 0 | ||
Warrants-preferred stock (Note 11) | 3,899 | ||
Total | $ 0 | $ 3,899 |
Fair Value Of Financial Instruments - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 22, 2021 |
Aug. 25, 2021 |
Jul. 12, 2021 |
|
Fair Value Measurements [Line Items] | |||||
Warrants and rights outstanding | $ 58,227 | $ 0 | $ 6,514 | ||
Transfers between fair value measurement levels | $ 0 | $ 0 | |||
Public Warrants [Member] | |||||
Fair Value Measurements [Line Items] | |||||
Exercise price of warrants or rights | $ 3.58 | $ 0.2843 | $ 2.96 | ||
Warrants and rights outstanding | $ 48,149 | ||||
Private Placement Warrants [Member] | |||||
Fair Value Measurements [Line Items] | |||||
Warrants and rights outstanding | $ 58,227 |
Fair Value Of Financial Instruments - Summary of Warrant Liabilities Measured at Fair Value (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Beginning balance | $ 3,899 | $ 1,284 |
Cost of warrants vesting during the period | 352 | 198 |
Change in fair value included in earnings | 5,238 | 2,417 |
Exercise of warrants to purchase Legacy Rocket Lab Series C and D preferred stock | (6,514) | |
Exchange of warrants to purchase Legacy Rocket Lab Series B preferred stock to common stock warrants | (2,975) | |
Ending balance | $ 3,899 |
Inventories - Schedule of Inventory (Detail) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 21,517 | $ 14,023 |
Work in process | 24,166 | 12,112 |
Finished goods | 2,221 | |
Total inventories | $ 47,904 | $ 26,135 |
Prepaid and Other Current Assets - Schedule of Prepaid and Other Current Assets (Detail) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Prepaid Expense and Other Assets [Abstract] | ||
Prepaid expenses | $ 14,787 | $ 2,628 |
Government grant receivables | 2,563 | 5,870 |
Other current assets | 2,104 | 914 |
Total prepaids and other current assets | $ 19,454 | $ 9,412 |
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment, Net (Detail) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 87,530 | $ 65,680 |
Less accumulated depreciation and amortization | (22,191) | (15,848) |
Property, plant and equipment—net | 65,339 | 49,832 |
Buildings and Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 25,075 | 20,330 |
Machinery, Equipment, Vehicles and Office Furniture [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 24,848 | 23,755 |
Computer Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 5,617 | 3,836 |
Launch Site Assets [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 9,611 | 7,582 |
Construction In Process [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 22,379 | $ 10,177 |
Property, Plant and Equipment, Net - Schedule of Depreciation Expense (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Property Plant And Equipment [Line Items] | ||
Total depreciation expense | $ 7,530 | $ 6,534 |
Cost of revenues [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total depreciation expense | 4,608 | 4,527 |
Research and Development Expense | ||
Property Plant And Equipment [Line Items] | ||
Total depreciation expense | 585 | 416 |
Selling, general and administrative | ||
Property Plant And Equipment [Line Items] | ||
Total depreciation expense | $ 2,337 | $ 1,591 |
Goodwill and Intangible Assets, Net - Schedule of Changes in the Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Finite Lived Intangible Assets [Line Items] | ||
Begning Balance | $ 3,133 | $ 0 |
Acquisitions | 40,110 | 2,895 |
Foreign currency translation adjustment | 65 | 238 |
Ending Balance | 43,308 | 3,133 |
Launch Services | ||
Finite Lived Intangible Assets [Line Items] | ||
Begning Balance | 0 | 0 |
Acquisitions | 0 | 0 |
Foreign currency translation adjustment | 0 | 0 |
Ending Balance | 0 | 0 |
Space Systems | ||
Finite Lived Intangible Assets [Line Items] | ||
Begning Balance | 3,133 | 0 |
Acquisitions | 40,110 | 2,895 |
Foreign currency translation adjustment | 65 | 238 |
Ending Balance | $ 43,308 | $ 3,133 |
Goodwill and Intangible Assets, Net - Components of Intangible Assets (Detail) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 64,259 | $ 15,021 |
Accumulated Amortization | (6,772) | (3,672) |
Net Carrying Amount | 57,487 | 11,349 |
Developed Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 45,066 | 10,090 |
Accumulated Amortization | (3,039) | (973) |
Net Carrying Amount | 42,027 | 9,117 |
Capitalized Software [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,769 | 3,541 |
Accumulated Amortization | (2,893) | (2,379) |
Net Carrying Amount | 876 | 1,162 |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 7,163 | 658 |
Accumulated Amortization | (458) | (148) |
Net Carrying Amount | 6,705 | 510 |
Non-compete agreement [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 221 | 219 |
Accumulated Amortization | (93) | (37) |
Net Carrying Amount | 128 | 182 |
Capitalized Intellectual Property [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 374 | 199 |
Accumulated Amortization | (80) | (51) |
Net Carrying Amount | 294 | 148 |
Trademark and Tradenames [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5,411 | 149 |
Accumulated Amortization | (120) | (29) |
Net Carrying Amount | 5,291 | 120 |
In Process Research and Development [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 110 | |
Accumulated Amortization | 0 | |
Net Carrying Amount | 110 | |
In Process Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,800 | |
Accumulated Amortization | 0 | |
Net Carrying Amount | 1,800 | |
Backlog [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 455 | 55 |
Accumulated Amortization | (89) | (55) |
Net Carrying Amount | $ 366 | $ 0 |
Goodwill and Intangible Assets, Net - Summary of Amortization Expense (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Finite Lived Intangible Assets [Line Items] | ||
Amortization of Intangible Assets | $ 3,321 | $ 2,222 |
Cost of revenues [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Amortization of Intangible Assets | 559 | 1,289 |
Research and Development [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Amortization of Intangible Assets | 2,088 | 6 |
Selling, General and Administrative [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Amortization of Intangible Assets | $ 674 | $ 927 |
Goodwill and Intangible Assets, Net - Schedule of Estimated Future Amortization Expense Related to Finite Intangible Assets (Detail) $ in Thousands |
Dec. 31, 2021
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 | $ 8,118 |
2023 | 7,371 |
2024 | 7,161 |
2025 | 7,066 |
2026 | 7,037 |
Thereafter | 18,934 |
Total | $ 55,687 |
Loan and Security Agreement - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Jun. 10, 2021 |
Dec. 31, 2021 |
Dec. 22, 2021 |
May 13, 2021 |
Dec. 31, 2020 |
Dec. 23, 2020 |
Dec. 31, 2016 |
|
Shares Issued And Outstanding [Line Items] | |||||||
Loan and security agreement, maximum amount | $ 100,000 | $ 35,000 | |||||
Term loan facility, initial facility charge | $ 1,000 | ||||||
Term loan facility, end of term charge upon repayment of the loan | 3,250 | ||||||
Long-term borrowings, excluding current installments | 97,297 | $ 0 | |||||
Current installments of long-term borrowings | $ 2,827 | ||||||
Common Stock [Member] | |||||||
Shares Issued And Outstanding [Line Items] | |||||||
Class of warrant or right number of securities called by warrants or rights | 121,689 | 121,689 | 463,710 | ||||
Exercise price of warrants or rights | $ 11.50 | $ 1.28 | $ 1.28 | $ 0.09 | |||
Term Loan Facility [Member] | |||||||
Shares Issued And Outstanding [Line Items] | |||||||
Loan agreement maturity date | Jun. 01, 2024 | ||||||
Description of outstanding principal of term loan facility | The outstanding principal bears (i) cash interest at the greater of (a) 8.15% or (b) 8.15% plus the prime rate minus 3.25% and (ii) payment-in-kind interest of 1.25% which is accrued and added to the outstanding principal balance. | ||||||
Long-term borrowings, excluding current installments | $ 100,124 | ||||||
Repayment of term loan advance | $ 15,000 | $ 15,000 | |||||
Term Loan Advances Aggregate Amount | $ 15,000 |
Warrants - Additional Information (Detail) - USD ($) |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Sep. 10, 2021 |
Aug. 25, 2021 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 22, 2021 |
Jul. 12, 2021 |
Dec. 23, 2020 |
Dec. 31, 2016 |
|
Class Of Warrant Or Right [Line Items] | ||||||||
Exchange of preferred stock warrants for common stock warrants | $ 2,975,000 | $ 496,000 | ||||||
Fair value of warrants | 2,433,000 | |||||||
Warrants assumed as part of Business Combination | $ 58,227,000 | $ 0 | $ 6,514,000 | |||||
Fair value per share of common stock | $ 0 | $ 1.41 | ||||||
Series C Preferred Stock [Member] | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Class of warrant or right number of securities called by warrants or rights | 118,591 | |||||||
Warrants exercise price | $ 0.25 | |||||||
Warrants to purchase vested | 86,973 | |||||||
Series D Preferred Stock [Member] | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Class of warrant or right number of securities called by warrants or rights | 699,388 | |||||||
Warrants exercise price | $ 2.10 | |||||||
Warrants to purchase vested | 512,885 | |||||||
Common Class A [Member] | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Warrants for Redemption Description | Redemption of warrants when the price per common share equals or exceeds $18.00. Once the warrants become exercisable, the Company may redeem the outstanding warrants (except as described with respect to the Private Warrants): •in whole and not in part; •at a price of $0.01 per warrant; •upon a minimum of 30 days’ prior written notice of redemption to each warrant holder; and •if, and only if, the closing price of the common shares equals or exceeds $18.00 per share (as adjusted) for any 20 trading days within a 30-trading day period ending three trading days before the Company sends the notice of redemption to the warrant holders. | |||||||
Fair value per share of common stock | $ 18.00 | |||||||
Legacy Rocket Lab common stock warrants [Member] | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Class of warrant or right number of securities called by warrants or rights | 585,399 | |||||||
Class of warrants and rights issued during the period | 575,840 | |||||||
Legacy Rocket Lab preferred stock warrants [Member] | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Warrants exercise price | $ 0.20 | |||||||
Exchange of preferred stock warrants for common stock warrants | $ 1,466,000 | |||||||
Class of warrants and rights issued during the period | 303,047 | |||||||
Class of warrant or right, outstanding | 305,981 | |||||||
Warrants assumed as part of Business Combination | $ 2,975,000 | |||||||
Public Warrants [Member] | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Warrants exercise price | $ 2.96 | $ 3.58 | $ 0.2843 | |||||
Warrants assumed as part of Business Combination | $ 48,149,000 | |||||||
Number of securities called by each warrant or right | 0 | |||||||
Class of warrant or right, date from which warrants or rights exercisable | Sep. 29, 2021 | |||||||
Warrants and rights outstanding, term | 5 years | |||||||
Public and Private Warrants [Member] | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Warrants exercise price | 0.2843 | |||||||
Redemption Price | 0.10 | |||||||
Private Placement Warrants [Member] | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Warrants assumed as part of Business Combination | $ 58,227,000 | |||||||
Private Placement [Member] | Common Class A [Member] | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Warrants for Redemption Description | Redemption of warrants when the price per common share equals or exceeds $10.00. Once the warrants become exercisable, the Company may redeem the outstanding warrants (except as described with respect to the Private Warrants): •in whole and not in part: •at a price of $0.10 per warrant upon a minimum of 30 days’ prior written notice of redemption provided that holders will be able to exercise their warrants on a cashless basis prior to redemption and receive that number of shares set forth in the warrant agreement determined based on the redemption date and the fair market value of the common shares; •if, and only if, the closing price of the common shares equals or exceeds $10.00 per share (as adjusted) for any 20 trading days within the 30-trading day period ending three trading days before the Company sends the notice of redemption to the warrant holders; and •if the closing price of the common shares for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders is less than $18.00 per share (as adjusted), the Private Warrants must also be concurrently called for redemption on the same terms as the outstanding Public Warrants, as described above. | |||||||
Warrant exercise price per share | $ 10.00 | |||||||
Common Stock [Member] | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Class of warrant or right number of securities called by warrants or rights | 121,689 | 121,689 | 463,710 | |||||
Warrants exercise price | $ 1.28 | $ 11.50 | $ 1.28 | $ 0.09 | ||||
Fair value of warrants | $ 23,000 | |||||||
Class of warrants and rights issued during the period | 305,981 | |||||||
Common Stock [Member] | Public Warrants [Member] | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Warrants assumed as part of Business Combination | $ 10,666,666,000 | |||||||
Common Stock [Member] | Private Placement Warrants [Member] | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Warrants exercise price | $ 11.50 | |||||||
Warrants assumed as part of Business Combination | $ 5,600,000,000 |
Capitalization - Additional Information (Detail) - $ / shares |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Schedule Of Capitalization Equity [Line Items] | ||
Preferred stock, convertible, conversion ratio | $ 9.059659 | |
Redeemable Convertible Preferred Stock [Member] | ||
Schedule Of Capitalization Equity [Line Items] | ||
Temporary equity, par value | $ 0.0001 |
Capitalization - Schedule of Temporary Equity (Detail) |
12 Months Ended |
---|---|
Dec. 31, 2020
$ / shares
| |
Series A Preferred Stock [Member] | |
Schedule Of Capitalization Equity [Line Items] | |
Dividend Rate | $ 0.01 |
Issue Price | 0.09 |
Series B Preferred Stock [Member] | |
Schedule Of Capitalization Equity [Line Items] | |
Dividend Rate | 0.01 |
Issue Price | 0.20 |
Series C Preferred Stock [Member] | |
Schedule Of Capitalization Equity [Line Items] | |
Dividend Rate | 0.02 |
Issue Price | 0.37 |
Series D Preferred Stock [Member] | |
Schedule Of Capitalization Equity [Line Items] | |
Dividend Rate | 0.19 |
Issue Price | 3.15 |
Series E preferred stock | |
Schedule Of Capitalization Equity [Line Items] | |
Dividend Rate | 0.21 |
Issue Price | 3.48 |
Series E-1 Preferred Stock | |
Schedule Of Capitalization Equity [Line Items] | |
Dividend Rate | 0.21 |
Issue Price | $ 3.48 |
Stock-based Compensation - Additional Information (Detail) - USD ($) $ in Thousands |
1 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Aug. 25, 2021 |
Aug. 31, 2021 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options vesting period | 4 years | |||
Options vesting on first anniversary of date of grant, percentage | 25.00% | |||
Options granted expected to be recognized period | 4 years | |||
Stock-based compensation | $ 359 | |||
Allocated share based compensation | $ 9,642 | $ 32,557 | $ 4,218 | |
Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common Stock, Shares Held in Employee Trust, Shares | 2,989,088 | |||
APIC, Share-based Payment Arrangement, ESPP, Increase for Cost Recognition | $ 30,000 | |||
Common Stock [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation | $ 338 | |||
Share-based compensation arrangement by share-based payment award, plan modification shares | 498,177 | |||
Share-based compensation arrangement by share-based payment award | 558,769 | |||
Stock redeemed or called during period, value | $ 10,000 | |||
Common stock for issuance for awards | 9,980,000 | 9,980,000 | ||
Common Stock Outstanding Rate | 1.00% | |||
Employee Stock Options Discount Rate | 15.00% | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of Units, granted | 6,542,426 | 5,954,309 | ||
Stock-based compensation | $ 26,987 | |||
2021 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Sale of aggregate, shares | 59,875,000 | |||
Outstanding number of shares of common stock | 5.00% | |||
Shares available for grant | 57,901,558 | |||
Shares authorized to issue under equity award plan | 60,206,872 | |||
2013 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unrecognized stock compensation expense | $ 1,331 | |||
Unrecognized stock compensation expense period for recognition | 9 months 18 days | |||
2013 Plan And 2021 Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ 49,081 |
Stock-based Compensation - Schedule of Stock-based Compensation Recorded in Consolidated Statements of Operations and Comprehensive Loss (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Aug. 25, 2021 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 9,642 | $ 32,557 | $ 4,218 |
Cost of revenues [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation expense | 10,996 | 1,400 | |
Research and Development Expense | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation expense | 9,973 | 1,183 | |
Selling, general and administrative | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 11,588 | $ 1,635 |
Stock-based Compensation - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Share-based Payment Arrangement [Abstract] | |||
Options to Purchase Common Stock, Outstanding, beginning | 22,088,726 | 27,263,775 | |
Options to Purchase Common Stock, Granted | 0 | 90,597 | |
Options to Purchase Common Stock, Exercised | (3,708,786) | (2,771,051) | |
Options to Purchase Common Stock, Forfeited | (857,579) | (1,508,243) | |
Options to Purchase Common Stock, Expired | (177,033) | (986,352) | |
Options to Purchase Common Stock, Outstanding, ending | 17,345,328 | 22,088,726 | 27,263,775 |
Options to Purchase Common Stock, Options vested and exercisable | 15,112,440 | 14,739,214 | |
Weighted- Average Exercise Price per Share, Outstanding, beginning | $ 1.03 | $ 0.97 | |
Weighted- Average Exercise Price per Share, Granted | 1.41 | ||
Weighted- Average Exercise Price per Share, Exercised | 1.00 | 0.36 | |
Weighted- Average Exercise Price per Share, Forfeited | 1.21 | 1.26 | |
Weighted- Average Exercise Price per Share, Expired | 1.16 | 1.05 | |
Weighted- Average Exercise Price per Share, Outstanding, ending | 1.03 | 1.03 | $ 0.97 |
Weighted- Average Exercise Price per Share, Options vested and exercisable | 1.01 | 0.97 | |
Weighted- Average Grant Date Fair Value per Share, Outstanding, beginning | 0.53 | 0.50 | |
Weighted- Average Grant Date Fair Value per Share, Granted | 0.78 | ||
Weighted- Average Grant Date Fair Value per Share, Exercised | 0.51 | ||
Weighted- Average Grant Date Fair Value per Share, Forfeited | 0.60 | ||
Weighted- Average Grant Date Fair Value per Share, Expired | 0.31 | ||
Weighted- Average Grant Date Fair Value per Share, Outstanding, ending | 0.54 | 0.53 | $ 0.50 |
Weighted- Average Grant Date Fair Value per Share, Options vested and exercisable | $ 0.52 | $ 0.49 | |
Weighted- Average Remaining Contract Life (In Years), Outstanding | 6 years 10 days | 7 years 1 month 13 days | 7 years 11 months 12 days |
Weighted- Average Remaining Contract Life (In Years), Granted | |||
Weighted- Average Remaining Contract Life (In Years), Exercised | 4 years 3 months 25 days | 3 years 2 months 15 days | |
Weighted- Average Remaining Contract Life (In Years), Forfeited | 3 days | ||
Weighted- Average Remaining Contract Life (In Years), Expired | |||
Weighted- Average Remaining Contract Life (In Years), Outstanding, Ending balance | 6 years 10 days | 7 years 1 month 13 days | 7 years 11 months 12 days |
Weighted- Average Remaining Contract Life (In Years), Options vested and exercisable | 5 years 10 months 24 days | 6 years 9 months 29 days | |
Aggregate Intrinsic Value, Outstanding | $ 195,111 | $ 85,853 | $ 11,941 |
Aggregate Intrinsic Value, Granted | 0 | ||
Aggregate Intrinsic Value, Exercised | 41,822 | 2,565 | |
Aggregate Intrinsic Value, Forfeited | 9,131 | ||
Aggregate Intrinsic Value, Expired | 1,969 | ||
Aggregate Intrinsic Value, Exercised, Ending Balance | 195,111 | 85,853 | $ 11,941 |
Aggregate Intrinsic Value, Options vested and exercisable | $ 170,320 | $ 57,660 |
Stock-based Compensation - Summary of Weighted-Average Assumptions (Detail) - $ / shares |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Share-based Payment Arrangement [Abstract] | ||
Fair value per share of common stock | $ 0 | $ 1.41 |
Expected volatility | 0.00% | 60.00% |
Risk-free interest rate | 0.00% | 0.60% |
Expected life (years) | 6 years 3 months | |
Expected dividend yield | 0.00% | 0.00% |
Stock-based Compensation - Summary of Performance-based Restricted Stock Unit Activity (Detail) - Performance-based Restricted Stock Unit (PRSU) [Member] - $ / shares |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Units, Outstanding, beginning | 11,831,055 | 6,818,453 |
Number of Units, granted | 6,542,426 | 5,954,361 |
Number of Units, Forfeited | (1,426,559) | (941,759) |
Number of Units, Outstanding, ending | 16,946,922 | 11,831,055 |
Number of Units, Expected to vest | 16,946,922 | |
Weighted- Average Grant Date Fair Value, Outstanding, begininng | $ 1.33 | $ 1.41 |
Weighted- Average Grant Date Fair Value, Granted | 9.68 | 1.25 |
Weighted- Average Grant Date Fair Value, Forfeited | 2.10 | 1.40 |
Weighted- Average Grant Date Fair Value, Outstanding, ending | 4.49 | 1.33 |
Weighted- Average Grant Date Fair Value, Expected to vest | $ 4.49 |
Employee Benefits - Additional Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Retirement Benefits [Abstract] | ||
Defined contribution plan, employer discretionary contribution amount | $ 441 | $ 277 |
Leases - Additional Information (Detail) |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Lessee Lease Description [Line Items] | ||
Operating Lease, Weighted Average Remaining Lease Term | 10 years 7 months 6 days | 12 years 1 month 6 days |
Operating Lease, Weighted Average Discount Rate, Percent | 4.80% | 5.50% |
Maximum | ||
Lessee Lease Description [Line Items] | ||
Lessee, operating lease, option to extend | one year | |
Vehicles and Equipment [Member] | Minimum | ||
Lessee Lease Description [Line Items] | ||
Lessee, operating lease, remaining lease term | 1 year | |
Vehicles and Equipment [Member] | Maximum | ||
Lessee Lease Description [Line Items] | ||
Lessee, operating lease, remaining lease term | 19 years |
Leases - Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Current liabilities: | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Non-current liabilities: | ||
Non-current lease liabilities | $ 28,302 | $ 27,299 |
Total lease liabilities | 30,685 | 28,969 |
Other Current Liabilities [Member] | ||
Current liabilities: | ||
Operating lease liabilities | 2,383 | 1,670 |
Noncurrent Lease Liabilities [Member] | ||
Non-current liabilities: | ||
Non-current lease liabilities | $ 28,302 | $ 27,299 |
Leases - Components of Lease Expense (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Leases [Abstract] | ||
Operating lease costs | $ 3,356 | $ 2,552 |
Amortization of right-of-use assets | 583 | |
Interest on lease liabilities | 95 | |
Total finance lease costs | $ 678 |
Leases - Supplemental Cash Flow Information Related To Leases (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 3,051 | $ 2,080 |
Operating cash flows from finance leases | 0 | 95 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 3,916 | $ 2,410 |
Leases - Schedule of The Future Minimum Operating Lease Payments (Detail) $ in Thousands |
Dec. 31, 2021
USD ($)
|
---|---|
Leases [Abstract] | |
2022 | $ 3,799 |
2023 | 4,076 |
2024 | 3,984 |
2025 | 3,728 |
2026 | 3,790 |
Thereafter | 21,636 |
Total lease payments | 41,013 |
Less imputed interest | (10,328) |
Total | $ 30,685 |
Commitments and Contingencies - Additional Information (Detail) $ in Thousands |
Dec. 31, 2021
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Provision for contract loss | $ 4,803 |
Income Taxes - Schedule of Pretax Loss from Domestic and Foreign Operations (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Income Tax Disclosure [Abstract] | ||
US loss before income taxes | $ (132,585) | $ (56,439) |
Foreign income before income taxes | 7,745 | 1,901 |
Loss before income taxes | $ (124,840) | $ (54,538) |
Income Taxes - Schedule of Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Current: | ||
Federal | $ 0 | $ 0 |
State | 2 | 0 |
Foreign | 2,377 | 1,410 |
Total | 2,379 | 1,410 |
Deferred: | ||
Federal | (5,957) | 0 |
State | (339) | 0 |
Foreign | (3,603) | (943) |
Total | (9,899) | (943) |
(Benefit) Provision for income taxes | $ (7,520) | $ 467 |
Income Taxes - Schedule of Differences Between Federal Statutory Income Tax Rate and Provision for Income Taxes (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Income Tax Disclosure [Abstract] | ||
Federal statutory rate | $ (26,216) | $ (11,453) |
Adjustments for tax effects of: | ||
Permanent differences and other | (477) | 634 |
Warrants | 2,421 | 200 |
Stock-based compensation | (2,399) | (203) |
Increase in valuation allowance | 19,151 | 11,289 |
(Benefit) Provision for income taxes | $ (7,520) | $ 467 |
Federal statutory rate | 21.00% | 21.00% |
Adjustments for tax effects of: | ||
Permanent differences and other | 0.38% | (1.16%) |
Warrants | (1.94%) | (0.37%) |
Stock-based compensation | 1.92% | 0.37% |
Increase in valuation allowance | (15.34%) | (20.70%) |
Provision for income taxes | 6.02% | (0.86%) |
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Deferred tax assets: | ||
Accrued expenses | $ 2,105 | $ 1,969 |
Inventories | 409 | 353 |
Deferred revenue | 14,160 | 5,503 |
Lease liability | 7,244 | 7,426 |
Stock options | 7,950 | 2,082 |
Warrants | 0 | 519 |
Interest expense | 1,075 | 0 |
Net operating losses | 41,688 | 30,264 |
Tax credits | 898 | 923 |
Other | 0 | 4 |
Total deferred tax assets | 75,529 | 49,043 |
Valuation allowance | (58,235) | (39,084) |
Total deferred tax assets, net | 17,294 | 9,959 |
Deferred tax liabilities: | ||
Right of use asset | (6,723) | (6,954) |
Depreciation and amortization | (5,160) | 0 |
Other | (18) | 0 |
Unrealized gain | 0 | (757) |
Total deferred tax liabilities | (11,901) | (7,711) |
Net deferred tax assets | $ 5,393 | $ 2,248 |
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Operating Loss Carryforwards [Line Items] | |||
Deferred tax assets, valuation allowance | $ 58,235 | $ 39,084 | |
Unrecognized tax benefits | 835 | 800 | $ 800 |
Effective tax rate | 667 | 632 | |
Operating loss carryforwards | 195,305 | 143,712 | |
Deferred tax liabilities | $ 6,762 | ||
Decreased valuation allowance | 6,296 | ||
Capitalized costs amortization | Capitalized costs are required to be amortized over five years (15 years for expenditures attributable to foreign research). | ||
Indefinite Carryforward | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards, description | carryforward indefinitely and are available to offset up to 80% of future taxable income each year. | ||
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 57,135 | 57,135 | |
Expiration year | 2034 | ||
Domestic Tax Authority | Indefinite Carryforward | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 138,170 | 86,577 | |
State | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 19,587 | 10,769 | |
Expiration year | 2035 | ||
Accrued Interest And Penalties [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Accrued interest and penalties | $ 0 | $ 0 |
Income Taxes - Schedule of Reconciliation of Beginning and Ending Amount Of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Income Tax Disclosure [Abstract] | ||
Balance at beginning of year | $ 800 | $ 800 |
Increases related to current year tax position | 35 | 0 |
Balance at end of year | $ 835 | $ 800 |
Net Loss Per Share - Summary of Basic and Diluted net Loss Per Share Attributable to Common Stockholders (Detail) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Earnings Per Share [Abstract] | ||
Net loss attributable to common shareholders-basic and diluted | $ (117,320) | $ (55,005) |
Denominator | ||
Weighted average common shares outstanding-basic and diluted | 209,895,135 | 75,414,888 |
Net loss per share attributable to common stockholders-basic and diluted | $ (0.56) | $ (0.73) |
Net Loss Per Share - Summary of Diluted Net Loss Per Share Attributable to Common Stockholders (Detail) - shares |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Legacy Rocket Lab preferred stock warrants [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Equity shares | 0 | 1,123,959 |
Legacy Rocket Lab common stock warrants [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Equity shares | 0 | 585,399 |
Stock Options And Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Equity shares | 34,292,250 | 22,088,726 |
Public and Private Warrants [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Equity shares | 16,264,516 | 0 |
Legacy Rocket Lab preferred stock [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Equity shares | 0 | 283,843,764 |
Segments - Additional Information (Detail) |
12 Months Ended |
---|---|
Dec. 31, 2021
Segments
| |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segments - Summary of Information by Reportable Segment (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Sales Information [Line Items] | ||
Cost of revenues | $ 64,130 | $ 46,977 |
Gross profit (loss) | (1,893) | (11,817) |
Launch Services [Member] | ||
Sales Information [Line Items] | ||
Revenues | 38,971 | 33,085 |
Cost of revenues | 53,827 | 45,872 |
Gross profit (loss) | (14,856) | (12,787) |
Space Systems [Member] | ||
Sales Information [Line Items] | ||
Revenues | 23,266 | 2,075 |
Cost of revenues | 10,303 | 1,105 |
Gross profit (loss) | $ 12,963 | $ 970 |
Concentration of Credit Risk, Significant Customers and Geographic Information - Schedule of Total Accounts Receivable Net (Detail) |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
U S Commercial Customer A [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 18.00% | 62.00% |
U S Commercial Customer B [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 13.00% | |
International Customer C [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 12.00% | |
Commercial Customer G [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 23.00% | |
Accounts Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 10.00% | 10.00% |
Concentration of Credit Risk, Significant Customers and Geographic Information - Additional Informatiion (Detail) |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Accounts Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 10.00% | 10.00% |
Concentration Risk, Percentage | Accounts receivable was less than 10% | |
Revenue [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 10.00% | |
Concentration Risk, Percentage | Revenue was less than 10% |
Concentration of Credit Risk, Significant Customers and Geographic Information - Schedule of Total Revenue (Detail) |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Commercial Customer G [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 23.00% | |
Revenue [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 10.00% | 10.00% |
Revenue [Member] | U.S. Government Customer D [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 21.00% | |
Revenue [Member] | International Customer E [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 18.00% | |
Revenue [Member] | U S Commercial Customer F [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 15.00% | |
Revenue [Member] | Commercial Customer G [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 40.00% | 14.00% |
Revenue [Member] | Commercial Customer H [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 16.00% |
Concentration of Credit Risk, Significant Customers and Geographic Information - Schedule of Consolidated Net Revenue by Geographic Area (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Concentration Risk [Line Items] | ||
Revenue | $ 62,237 | $ 35,160 |
Percentage of total revenue | 100.00% | 100.00% |
United States [Member] | ||
Concentration Risk [Line Items] | ||
Revenue | $ 45,750 | $ 25,881 |
Percentage of total revenue | 74.00% | 74.00% |
Japan [Member] | ||
Concentration Risk [Line Items] | ||
Revenue | $ 769 | $ 6,498 |
Percentage of total revenue | 1.00% | 18.00% |
Germany [Member] | ||
Concentration Risk [Line Items] | ||
Revenue | $ 9,770 | |
Percentage of total revenue | 16.00% | |
Rest of World [Member] | ||
Concentration Risk [Line Items] | ||
Revenue | $ 5,948 | $ 2,781 |
Percentage of total revenue | 9.00% | 8.00% |
Concentration of Credit Risk, Significant Customers and Geographic Information - Schedule of Long Lived Assets by Geographic Area (Detail) - Long Lived Assets [Member] - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Concentration Risk [Line Items] | ||
Long-Lived Assets | $ 194,558 | $ 91,216 |
Concentration risk percentage | 100.00% | 100.00% |
United States [Member] | ||
Concentration Risk [Line Items] | ||
Long-Lived Assets | $ 148,248 | $ 34,303 |
Concentration risk percentage | 76.00% | 38.00% |
New Zealand [Member] | ||
Concentration Risk [Line Items] | ||
Long-Lived Assets | $ 45,050 | $ 43,323 |
Concentration risk percentage | 23.00% | 47.00% |
Canada [Member] | ||
Concentration Risk [Line Items] | ||
Long-Lived Assets | $ 1,260 | $ 13,590 |
Concentration risk percentage | 1.00% | 15.00% |
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands |
Jan. 18, 2022 |
May 18, 2020 |
Sep. 14, 2018 |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|---|---|---|
Related Party Transactions Details [Line Items] | |||||
Beneficial ownership percentage | 5.00% | ||||
Related party transaction, due from (to) related party | $ 0 | $ 0 | |||
Series E preferred stock | |||||
Related Party Transactions Details [Line Items] | |||||
Aggregate shares | 39,575,426 | ||||
Issuance of redeemable preferred stock, value | $ 137,739 | ||||
Series E preferred stock | Affiliated Entity [Member] | |||||
Related Party Transactions Details [Line Items] | |||||
Issuance of redeemable preferred stock, value | $ 10,539 | ||||
Issuance of redeemable preferred stock, share | 3,028,345 | ||||
Series E 1 preferred stock | |||||
Related Party Transactions Details [Line Items] | |||||
Issuance of redeemable preferred stock, value | $ 20,500 | ||||
Issuance of redeemable preferred stock, share | 5,890,047 | ||||
Series E 1 preferred stock | Affiliated Entity [Member] | |||||
Related Party Transactions Details [Line Items] | |||||
Issuance of redeemable preferred stock, value | $ 4,499 | ||||
Issuance of redeemable preferred stock, share | 1,292,931 |
Subsequent Events - Additional Information (Detail) - USD ($) |
Jan. 31, 2022 |
Jan. 18, 2022 |
Dec. 31, 2021 |
Dec. 22, 2021 |
Aug. 25, 2021 |
Jul. 12, 2021 |
Dec. 31, 2020 |
Dec. 23, 2020 |
Dec. 31, 2016 |
---|---|---|---|---|---|---|---|---|---|
Subsequent Event [Line Items] | |||||||||
Warrants and rights outstanding | $ 58,227,000 | $ 6,514,000 | $ 0 | ||||||
Public Warrants [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Exercise price of warrants or rights | $ 3.58 | $ 0.2843 | $ 2.96 | ||||||
Number of securities called by each warrant or right | 0 | ||||||||
Warrants and rights outstanding | $ 48,149,000 | ||||||||
Private Warrants [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Warrants and rights outstanding | $ 1,592,080,000 | ||||||||
Warrants Issued and Outstanding | 5,600,000 | ||||||||
Public and Private Warrants [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Exercise price of warrants or rights | 0.2843 | ||||||||
Common Stock [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Exercise price of warrants or rights | $ 11.50 | $ 1.28 | $ 1.28 | $ 0.09 | |||||
Class of warrant or right number of securities called by warrants or rights | 121,689 | 121,689 | 463,710 | ||||||
Common Stock [Member] | Public Warrants [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Warrants and rights outstanding | $ 10,666,666,000 | ||||||||
Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of securities called by each warrant or right | 2,951,781 | ||||||||
Cash proceeds from warrants issued | $ 126,000 | ||||||||
Warrant exercise price per share | $ 0.10 | ||||||||
Subsequent Event [Member] | Public Warrants [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Class of warrant or right number of securities called by warrants or rights | 10,383,077 | ||||||||
Number of securities called by each warrant or right | 10,969 | ||||||||
Cash proceeds from warrants issued | $ 27,000 | ||||||||
Warrants Issued and Outstanding | 270,470 | ||||||||
Subsequent Event [Member] | Common Stock [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Exercise price of warrants or rights | $ 11.50 | ||||||||
Warrants and rights outstanding | $ 10,969,000 | ||||||||
Subsequent Event [Member] | SolAero Holdings, Inc [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Payments to acquire businesses, Gross | $ 80,000,000 | ||||||||
Cash consideration transferred | $ 3,600,000 |
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