Spire Global Provides Update on New Contracts and Revenue Recognition Review of Certain Prior Contracts; Receives NYSE Notice Regarding Late Form 10-Q Filing
Spire Global (NYSE: SPIR) announces new multi-million-dollar contracts and provides an update on its financial reporting status. The company has secured contracts worth $14 million from the U.S. Air Force, £3.5 million from the UK Space Agency, and a $6.7 million renewal from NASA. These contracts focus on enhancing national security, weather forecasting, and climate research.
However, Spire has received a notice from the NYSE regarding its late Form 10-Q filing for Q2 2024. The company is reviewing its revenue recognition practices for certain contracts and will restate financial statements for 2022, 2023, and Q1 2024. The restatement is estimated to impact $10 to $15 million in annual revenue. Spire expects to file the Form 10-Q and complete the restatements within six months.
Spire Global (NYSE: SPIR) annuncia nuovi contratti multimilionari e fornisce un aggiornamento sullo stato dei suoi report finanziari. L'azienda ha ottenuto contratti del valore di 14 milioni di dollari dall'U.S. Air Force, 3,5 milioni di sterline dalla UK Space Agency e un rinnovo di 6,7 milioni di dollari da NASA. Questi contratti si concentrano sul miglioramento della sicurezza nazionale, delle previsioni meteorologiche e della ricerca climatica.
Tuttavia, Spire ha ricevuto una comunicazione da parte del NYSE riguardante il ritardo nella presentazione del Modulo 10-Q per il secondo trimestre del 2024. L'azienda sta esaminando le sue pratiche di riconoscimento delle entrate per alcuni contratti e ripresenterà i bilanci finanziari per il 2022, il 2023 e il primo trimestre del 2024. Si stima che la rettifica impatti tra 10 e 15 milioni di dollari di entrate annuali. Spire prevede di presentare il Modulo 10-Q e completare le rettifiche entro sei mesi.
Spire Global (NYSE: SPIR) anuncia nuevos contratos multimillonarios y proporciona una actualización sobre su estado de informes financieros. La empresa ha asegurado contratos por un valor de 14 millones de dólares de la Fuerza Aérea de EE. UU., 3,5 millones de libras de la Agencia Espacial del Reino Unido, y una renovación de 6,7 millones de dólares de NASA. Estos contratos se centran en mejorar la seguridad nacional, las previsiones meteorológicas y la investigación climática.
Sin embargo, Spire ha recibido un aviso de la NYSE sobre su presentación tardía del formulario 10-Q para el segundo trimestre del 2024. La empresa está revisando sus prácticas de reconocimiento de ingresos para ciertos contratos y reformulará sus estados financieros para 2022, 2023 y el primer trimestre de 2024. Se estima que la rectificación impactará entre 10 y 15 millones de dólares en ingresos anuales. Spire espera presentar el formulario 10-Q y completar las reformulaciones en un plazo de seis meses.
스파이어 글로벌 (NYSE: SPIR)는 새로운 수백만 달러 규모의 계약을 발표하고 재무 보고 상태에 대한 업데이트를 제공합니다. 이 회사는 미국 공군으로부터 1,400만 달러, 영국 우주청으로부터 350만 파운드, NASA로부터 670만 달러의 계약을 확보했습니다. 이 계약들은 국가 안보, 날씨 예측 및 기후 연구를 향상시키는 데 중점을 두고 있습니다.
그러나 스파이어는 2024년 2분기 10-Q 양식 제출 지연에 관한 NYSE의 통지를 받았습니다. 이 회사는 특정 계약의 수익 인식 관행을 검토하고 있으며, 2022년, 2023년 및 2024년 1분기의 재무 제표를 수정할 예정입니다. 이 수정으로 연간 수익에 1,000만에서 1,500만 달러의 영향을 미칠 것으로 예상됩니다. 스파이어는 10-Q 양식을 제출하고 수정 작업을 6개월 이내에 완료할 것으로 기대하고 있습니다.
Spire Global (NYSE: SPIR) annonce de nouveaux contrats de plusieurs millions de dollars et fournit une mise à jour sur son statut de reporting financier. L'entreprise a sécurisé des contrats d'une valeur de 14 millions de dollars de l'U.S. Air Force, 3,5 millions de livres de l'Agence spatiale britannique et un renouvellement de 6,7 millions de dollars de la NASA. Ces contrats se concentrent sur l'amélioration de la sécurité nationale, des prévisions météorologiques et de la recherche climatique.
Cependant, Spire a reçu un avis de la NYSE concernant sa soumission tardive du formulaire 10-Q pour le deuxième trimestre 2024. L'entreprise examine ses pratiques de reconnaissance des revenus pour certains contrats et révisera ses états financiers pour 2022, 2023 et le premier trimestre 2024. Il est estimé que la révision affectera entre 10 et 15 millions de dollars de revenus annuels. Spire s'attend à soumettre le formulaire 10-Q et à compléter les révisions dans un délai de six mois.
Spire Global (NYSE: SPIR) gibt neue multimillionenschwere Verträge bekannt und informiert über den Stand seiner Finanzberichterstattung. Das Unternehmen hat Verträge im Wert von 14 Millionen Dollar von der U.S. Air Force, 3,5 Millionen Pfund von der UK Space Agency und eine 6,7 Millionen Dollar Verlängerung von der NASA gesichert. Diese Verträge konzentrieren sich auf die Verbesserung der nationalen Sicherheit, Wettervorhersage und Klimaforschung.
Allerdings hat Spire eine Mitteilung von der NYSE über die verspätete Einreichung des Formulars 10-Q für das 2. Quartal 2024 erhalten. Das Unternehmen überprüft seine Umsatzrechnungspraktiken für bestimmte Verträge und wird die Finanzberichte für 2022, 2023 und das 1. Quartal 2024 neu aufstellen. Diese Neufeststellung wird voraussichtlich 10 bis 15 Millionen Dollar Jahresumsatz beeinflussen. Spire erwartet, das Formular 10-Q einzureichen und die Neufestellungen innerhalb von sechs Monaten abzuschließen.
- Secured new contracts worth $14 million from U.S. Air Force, £3.5 million from UK Space Agency, and $6.7 million renewal from NASA
- Contracts focus on improving national security, weather forecasting, and climate research
- Company expects to file Form 10-Q and complete financial restatements within six months
- Received NYSE notice for late Form 10-Q filing, indicating non-compliance with listing standards
- Need to restate financial statements for 2022, 2023, and Q1 2024 due to revenue recognition issues
- Estimated $10 to $15 million annual revenue impact from the restatement
Insights
Spire Global's update reveals a mixed financial picture. The company has secured
Spire's recent contract wins highlight its strong position in the small satellite market. The
The NYSE non-compliance notice and the need for financial restatements raise significant legal and regulatory concerns for Spire Global. The company now faces a tight deadline to file its Q2 2024 10-Q by February 19, 2025, to maintain NYSE listing compliance. The restatement of financials for multiple years indicates potential weaknesses in internal controls over financial reporting, which could attract SEC scrutiny. Spire's proactive approach in retaining technical accounting experts and disclosing the issue may mitigate some regulatory risks. However, the company could face shareholder lawsuits, especially if the stock price is negatively impacted. The ongoing review of embedded leases in "Space as a Service" contracts suggests complex legal and accounting challenges in this innovative business model. Spire must navigate these issues carefully to avoid further regulatory complications and maintain investor trust.
Spire announces multi-million-dollar contracts with
The Company expects to report second quarter results and restate impacted historical financials within six-month period
Underscoring Spire’s mission to improve life on Earth with data from space, the Company has been awarded new contracts focused on improving national security, weather forecasting and climate research:
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$14M $14 million U.S. defense operations. This project is expected to leverage advanced sensing technologies, including radio frequency, electro optical infrared, and multi-spectral imagery sensors, to deliver cutting-edge space-based Surveillance, Reconnaissance, and Tracking capabilities.
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£3.5M UK Space Agency grant: The Company has been awarded a£3.5 million grant by theUK Space Agency (UKSA) to develop and demonstrate hyperspectral microwave sensing technology in orbit. Over the three-year project period, Spire expects to collaborate with the Met Office, STFC RAL Space, and STAR-Dundee to enhance global weather forecasting. This initiative will deploy a small satellite equipped with advanced microwave sounders, which is expected to offer high-quality vertical resolution and data accuracy, ultimately improving weather prediction and climate understanding.
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$6.7M $6.7 million U.S. government-funded research with the objective of enhancing global weather forecasting, atmospheric profiling, and climate research.
On August 21, 2024, the Company received notice from the New York Stock Exchange (the “NYSE”) that the Company is not in compliance with the NYSE’s continued listing standards as set forth in Section 802.01E of the NYSE Listed Company Manual due to the Company’s failure to timely file its Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 (the “Form 10-Q”) with the Securities and Exchange Commission (the “SEC”). Under the NYSE’s rules, the Company can regain compliance with this NYSE listing standard by filing the Form 10-Q with the SEC before February 19, 2025.
The delay in the filing of the Form 10-Q is due to the Company requiring additional time to prepare and complete its financial statements for the three and six months ended June 30, 2024 as further described in the Company’s Form 12b-25 filed with the SEC on August 14, 2024 and in the Company’s Current Report on Form 8-K filed with the SEC on August 27, 2024.
The Company has retained technical accounting experts to help examine and make recommendations regarding the potential existence of embedded leases of identifiable assets in certain contracts in the Company’s “Space as a Service” business (the “Contracts”) and the recognition of revenue and related costs for pre-space mission activities under such Contracts.
The Company is reviewing the potential existence of embedded leases of identifiable assets in the Contracts at this time. Separately from this ongoing review, the Company has determined that its accounting for these Contracts, including primarily revenue and cost recognition timing for pre-space mission activities, need to be revised to remove certain previously recorded pre-space mission activity revenue from the period in which pre-space mission activities were performed under the Contracts, and instead, record that revenue over the period in which data is delivered.
In connection with this evaluation, on August 23, 2024, the audit committee of the board of directors of the Company, after discussion with the Company’s management and with PricewaterhouseCoopers LLP, concluded that the Company’s previously issued consolidated financial statements for the annual and interim periods within the fiscal years ended December 31, 2023 and 2022, and for the quarter ended March 31, 2024 (collectively, the “Affected Periods”) will need to be restated.
While the Company’s review is ongoing, at the time of issuing this press release, the type of Contracts that the Company has identified for re-evaluation and restatement resulted in recognized revenue currently estimated to be
The Company is working to complete its review and these restatements as soon as practicable and to file the Form 10-Q within the six-month period provided by the NYSE. The Company will make a subsequent announcement to schedule the date and time of its earnings release and conference call for the second quarter and six months ended June 30, 2024.
About Spire Global, Inc.
Spire (NYSE: SPIR) is a global provider of space-based data, analytics and space services, offering unique datasets and powerful insights about Earth so that organizations can make decisions with confidence in a rapidly changing world. Spire builds, owns, and operates a fully deployed satellite constellation that observes the Earth in real time using radio frequency technology. The data acquired by Spire’s satellites provides global weather intelligence, ship and plane movements, and spoofing and jamming detection to better predict how their patterns impact economies, global security, business operations and the environment. Spire also offers Space as a Service solutions that empower customers to leverage its established infrastructure to put their business in space. Spire has nine offices across the
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or the Company’s anticipated financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “would,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “project,” “potential,” “seek” or “continue” or the negative of these words or other similar terms or expressions that concern the Company’s expectations, strategy, plans or intentions. Forward-looking statements contained in this press release include, but are not limited to, statements about recent contracts entered into by the Company, including the ability to complete the services and realize the anticipated value under such agreements; the preparation of the Company’s condensed consolidated financial statements as of June 30, 2024 and for the three and six months ended June 30, 2024; the annual and interim periods affected by the matters discussed above and subject to restatement; the cause of the delay in preparing and filing the Form 10-Q; the timing to restate the Company’s financial statements for the Affected Periods and to file the Form 10-Q; and the potential scope and impact of the issues discussed above, which are estimates as of the date hereof.
The Company cautions you that the foregoing list may not contain all of the forward-looking statements made in this press release. You should not rely upon forward-looking statements as predictions of future events. Factors that may cause future results to differ materially from the Company’s current expectations include, among other things, the performance of Spire and its partners under the contracts discussed above, the timing and nature of the resolution of the issues discussed in this press release, any further delay in the filing of required periodic reports, the timing and results of the Company's review of the effectiveness of internal control over financial reporting and related disclosure controls and procedures, whether a restatement of financial results will be required for other accounting issues and adverse effects on the Company related to the disclosures made in this press release. For other risk factors affecting the Company, see “Risk Factors” in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Moreover, the Company operates in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. The Company cannot assure you that the results, events, and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events, or circumstances could differ materially from those described in the forward-looking statements.
Neither the Company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. Moreover, the forward-looking statements made in this press release relate only to expectations as of the date on which the statements are made. The Company undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. The Company may not actually achieve the plans, intentions or expectations disclosed in the forward-looking statements and you should not place undue reliance on the forward-looking statements.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240827125562/en/
For media:
Kristina Spychalski
Head of Communications
Comms@Spire.com
For investors:
Benjamin Hackman
Head of Investor Relations
Benjamin.Hackman@Spire.com
Source: Spire Global, Inc.
FAQ
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