Spire announces multi-million-dollar contracts
with U.S. Air Force, UK Space Agency and NASA
The Company expects to report second quarter
results and restate impacted historical financials within six-month
period
Spire Global, Inc. (NYSE: SPIR) (“Spire” or the “Company”)
announces new multi-million-dollar contracts, the receipt of an
NYSE notice regarding its late Form 10-Q filing and the Company’s
decision to restate certain historical financials following its
review of the technical revenue recognition accounting for certain
contracts.
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:
- $14M Air Force contract: Spire has been awarded a $14
million contract by the Air Force Research Laboratory (AFRL) under
the SBIR Phase II STRATFI program. Over the next 48 months, Spire
agreed to develop and deploy a cluster of satellites designed to
detect and track moving objects on Earth with the goal of enhancing
situational awareness for 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.
- £3.5M UK Space Agency grant: The Company has been
awarded a £3.5 million grant by the UK 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.
- $6.7M NASA contract renewal: Spire has been awarded a
$6.7 million, 12-month contract renewal from NASA under the
Commercial Smallsat Data Acquisition (CSDA) Program. This marks the
second consecutive year of increased contract value, allowing Spire
to continue delivering its comprehensive Earth observation data,
including GNSS radio occultation, GNSS Reflectometry, and space
weather measurements. Spire’s data will support 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 $10 to $15 million on an annual
basis. Depending on the results of the review, additional financial
measures such as gross profit could also be impacted. However, the
Company believes that the restatement of its revenue recognition
for these Contracts will not impact its overall cash flows for any
period.
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 U.S., Canada, UK,
Luxembourg, Germany and Singapore. To learn more, visit
spire.com.
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
Spire Global (NYSE:SPIR)
Gráfico Histórico do Ativo
De Nov 2024 até Dez 2024
Spire Global (NYSE:SPIR)
Gráfico Histórico do Ativo
De Dez 2023 até Dez 2024
