v3.23.2
Revenue (Tables)
 6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Schedule of revenue disaggregated by product and services
The following table discloses revenue disaggregated by type of product and service (amounts in thousands):

Three Months EndedSix Months Ended
June 30, 2023June 30, 2022June 30, 2023June 30, 2022
Service revenue:
Subscriber services
Duplex$6,359 $6,936 $12,110 $13,082 
SPOT11,039 11,536 22,353 22,791 
Commercial IoT5,356 5,038 10,534 9,708 
Wholesale capacity services25,478 8,825 55,889 15,668 
Engineering and other services416 713 716 1,143 
Total service revenue48,648 33,048 101,602 62,392 
Subscriber equipment sales:
Duplex$17 $143 $36 $273 
SPOT2,513 1,674 4,439 3,149 
Commercial IoT3,901 1,908 7,713 3,714 
Other(7)27 (74)44 
Total subscriber equipment sales6,424 3,752 12,114 7,180 
Total revenue$55,072 $36,800 $113,716 $69,572 
The following table discloses revenue disaggregated by geographical market (amounts in thousands):
Three Months EndedSix Months Ended
June 30, 2023June 30, 2022June 30, 2023June 30, 2022
Service revenue:
United States$40,643 $24,875 $85,704 $47,163 
Canada3,640 4,128 7,469 7,817 
Europe1,706 1,671 3,219 3,154 
Central and South America2,477 2,248 4,844 3,984 
Others182 126 366 274 
Total service revenue$48,648 $33,048 $101,602 $62,392 
Subscriber equipment sales:
United States$2,562 $2,227 $4,545 $3,783 
Canada2,129 879 4,435 1,677 
Europe907 309 1,727 945 
Central and South America825 328 1,402 757 
Others1 9 5 18 
Total subscriber equipment sales$6,424 $3,752 $12,114 $7,180 
Total revenue$55,072 $36,800 $113,716 $69,572 
Schedule of accounts receivable and contract liabilities The Company's receivable balances by type and classification are presented in the table below net of allowance for credit losses and may include amounts related to earned but unbilled receivables (amounts in thousands).
As of:
June 30, 2023December 31, 2022
Accounts receivable, net of allowance for credit losses
Subscriber accounts receivable$20,816 $14,850 
Wholesale capacity accounts receivable7,481 7,234 
Agency agreement accounts receivable1,891 4,245 
Total accounts receivable, net of allowance for credit losses$30,188 $26,329 
Long-term wholesale capacity accounts receivable16,100 16,100 
Total accounts receivable (short-term and long-term), net of allowance for credit losses$46,288 $42,429 
The Company's contract liabilities by type and classification are presented in the table below (amounts in thousands).
As of:
June 30, 2023December 31, 2022
Short-term contract liabilities
Subscriber contract liabilities$24,074 $21,987 
Wholesale capacity contract liabilities32,650 52,652 
Total short-term contract liabilities$56,724 $74,639 
Long-term contract liabilities
Subscriber contract liabilities$1,770 $1,704 
Wholesale capacity contract liabilities, net of contract asset3,150 61,173 
Total long-term contract liabilities$4,920 $62,877 
Total contract liabilities$61,644 $137,516 
The components of wholesale capacity contract liabilities are presented in the table below (amounts in thousands).

As of:
June 30, 2023December 31, 2022
Wholesale capacity contract liabilities, net:
Advanced payments for services expected to be performed with the second-generation satellite constellation during Phase 1 (1) (3)
$6,426 $99,671 
Additional consideration associated with the 2021 Funding Agreement (4)
10,519 — 
Advanced payments for services expected to be performed with the ground spare satellite launched in June 2022 during Phases 1 and 224,552 25,438 
Advanced payments contractually owed for services expected to be performed with the next-generation satellite constellation prior to the Phase 2 Service Period16,602 22,540 
Additional consideration associated with the 2023 Funding Agreement (5)
4,509 — 
Advanced payments for the Phase 1 service fee and service-related operating expenses and capital expenditures
19,871 18,872 
Contract asset (2)
(46,679)(52,696)
Wholesale capacity contract liabilities, net$35,800 $113,825 

(1)In accordance with applicable accounting guidance, the Company records imputed interest associated with the significant financing component, totaling $4.8 million and $5.3 million as of June 30, 2023 and December 31, 2022, respectively, which is included in deferred revenue and represents the remaining amount to be recognized over the Company's performance obligations.
(2)In November 2022, the Company issued warrants to Partner (the "Warrants"). The initial fair value of the Warrants at the time of issuance was $48.3 million and recorded in equity with an offset to a contract asset on the Company's consolidated balance sheets. The fair value of the Warrants is recorded as a reduction to revenue over the period in which the Company performs its performance obligations through the estimated completion of the contract term, consistent with the period in which the customer benefits from the services provided.
(3)During 2021, the Company received payments from Partner totaling $94.2 million (the "2021 Funding Agreement"). In February 2023, the Service Agreements were amended. This amendment, which was effective in April 2023, changed certain terms in the 2021 Funding Agreement, including granting Partner a first lien security interest in substantially all of the assets of the Company and its domestic subsidiaries. This amendment resulted in $88.0 million previously recorded as deferred revenue to be re-characterized as debt during the second quarter of 2023. See further discussion in Note 5: Long-Term Debt and Other Financing Arrangements.
(4)In connection with the Company recording the fair value of the financial obligations in the amended 2021 Funding Agreement, it recorded a debt discount of $11.6 million, representing the difference between the present value of the future principal payments discounted using the prevailing market rate at the date of issuance of the debt and the effective rate. The offset was recorded to deferred revenue and is being recognized into revenue over the Phase 1 Service Period.
(5)In connection with the Company recording the fair value of the financial obligations in the 2023 Funding Agreement (as defined in Note 5: Long-Term Debt and Other Financing Arrangements), it recorded a debt discount of $4.5 million, representing the difference between the present value of the future principal payments discounted using the prevailing market rate at the date of issuance of the debt and the effective rate. The offset was recorded to deferred revenue and will be recognized into revenue over the Phase 2 Service Period.