Equity Method Investments
|9 Months Ended|
Sep. 30, 2023
|Equity Method Investments and Joint Ventures [Abstract]|
|Equity Method Investments||
6. Equity Method Investments
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 and nine months ended September 30, 2023 or 2022.
LeoStella's revenue from related parties was $3.3 million and $3.0 million for the three months ended September 30, 2023 and 2022, respectively, and $17.9 million and $20.2 million for the nine months ended September 30, 2023 and 2022, respectively. The Company had differences between the carrying value of its equity method investments and the underlying equity in the net assets of the investees of $2.2 million and $2.6 million as of September 30, 2023 and December 31, 2022, respectively. The difference is the result of the elimination of upstream intra-entity profits from the sale of satellites.
The following table presents summarized financial information for the Company’s investments in LeoStella and X-Bow for the three and nine months ended September 30, 2023 and 2022.
The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef