Quarterly report pursuant to Section 13 or 15(d)

Equity Method Investments

v3.22.1
Equity Method Investments
 3 Months Ended
Mar. 31, 2022
Equity Method Investments and Joint Ventures [Abstract]  
Equity Method Investments
6. Equity Method Investments
LeoStella
The Company accounts for its investment in LeoStella as an equity method investment. The Company did not make any additional capital investments in LeoStella during the three months ended March 31, 2022 or
2021. During the three months ended March 31, 2022 and 2021, respectively, the Company remitted $9.7 million and $7.4 million of payments to LeoStella for satellite manufacturing and satellite software development.
X-Bow
In 2017, the Company entered into a stock subscription and technology transfer agreement with X-Bow, whereby the Company assigned and transferred certain intellectual property rights owned by the Company to X-Bow in exchange for 13.5 million shares of X-Bow, a strategic investment in a space technology company specializing in additive manufacturing of solid rocket motors. As of March 31, 2022, the Company's interest in X-Bow was 15.1%.
The following tables present summarized financial information for the Company’s equity method investments as of March 31, 2022 and December 31, 2021 and for the three months ended March 31, 2022 and 2021.
March 31, December 31,
Summarized balance sheets 2022 2021
(in thousands)
Current assets $ 54,125  $ 60,652 
Non-current assets 6,857  5,798 
Total assets $ 60,982  $ 66,450 
Current liabilities $ 34,053  $ 39,612 
Non-current liabilities 591  706 
Total liabilities $ 34,644  $ 40,318 
Three Months Ended March 31,
Summarized statements of operations 2022 2021
(in thousands)
Revenue $ 16,733  $ 6,384 
Gross margin 2,485  1,420 
Net income 101  668 
Current assets of the Company’s equity method investees primarily consisted of inventories of $8.9 million and $17.0 million as of March 31, 2022 and December 31, 2021, respectively. Total liabilities of the Company’s equity method investees primarily consisted of customer advances from related parties of $30.6 million and $35.2 million as of March 31, 2022 and December 31, 2021, respectively.
The revenue related to equity method investments attributable to related parties was $8.1 million and $6.4 million for the three months ended March 31, 2022 and 2021, respectively. The Company has differences between the carrying value of its equity method investments and the underlying equity in the net assets of the investees of $2.6 million as of March 31, 2022 and $2.9 million as of December 31, 2021. The difference is the result of the elimination of upstream intra-entity profits from the sale of satellites.