The Space Investor - 🚀 Spire's Revenue Adjustments

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• Following last weeks lower revised financials, CFO departure and -68% stock move, Mynaric continued with the negative news this week with current CEO, Mustafa Veziroglu, departing and a CRO being appointed. The Annual Meeting scheduled for August 29th will also be postponed.
   
• Andreas Reif, who will serve as CRO, will focus on "reducing costs and near-term cash usage while working closely with customers to meet their requirements."
   
• Shares finished the week down -20%, bringing the prior two weeks to -75% in shareholder value. Not ideal.

• On August 14th, Spire postponed earnings as the company was "in process of reviewing its accounting practices and procedures with respect to revenue recognition related to certain contracts in its 'Space as a Service' business."
   
• On Tuesday the company announced a decision to restate FY2022, FY2023 and Q1 2024 financials following its review of revenue recognition accounting for certain contracts.
   
• The review is ongoing, but the contracts identified for re-evaluation / restatement "resulted in recognized revenue currently estimated to be $10-15M on an annual basis." Spire believes that "the restatement of its revenue recognition for these Contracts will not impact its overall cash flows for any period."
   
• Spire also took this opportunity to announce three new contract wins:
  • $14M Air Force Research Laboratory Contract
  • £3.5M UK Space Agency Grant
  • $6.7M NASA Contract Renewal
     
• The company also signed a waiver and amendment to its financing agreement with Blue Torch Capital that adjusted certain financial covenants and required a $10M payment toward principal. Cash & Equivalents as of 6/30/2024 were $46M.

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