BlackSky Technology Inc. General form of registration statement for all companies including face-amount certificate companies

General form of registration statement for all companies including face-amount certificate companies

Property and Equipment - net

Property and Equipment - net

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Property and Equipment - net

8.	Property and Equipment - net

The following summarizes property and equipment - net as of:


	June 30,			December 31,
	2021			2020

	(in thousands)
Satellites	$	41,380		$	32,340
Computer equipment and software		1,435			1,315
Office furniture and fixtures		870			1,388
Other equipment		550			434
Site equipment		1,231			1,311
Ground station equipment		1,264			1,415

Total		46,730			38,203
Less: accumulated depreciation		(22,249	)		(17,351	)

Property and equipment — net	$	24,481		$	20,852

On May 15, 2021, a Rocket Lab Electron rocket carrying two of our satellites suffered a failure during flight, resulting in the loss of both satellites. This resulted in the total carrying value of $18.4 million being impaired in the second quarter of 2021 of which; $8.4 million relates to amounts that had been recorded to satellite procurement work in progress as of December 31, 2020, There was no impairment for the six months ended June 30, 2020

Depreciation of property and equipment from continuing operations during the six months ended June 30, 2021 and 2020 was $5.6 million and $3.1 million, respectively. During the six months ended June 30, 2021, the Company has disposed of $0.7 million property and equipment, which consisted of site equipment, furniture and ground station equipment at a loss of $24

thousand.

8.	Property and Equipment—net

The following summarizes property and equipment—net as of:


	December 31,
	2020			2019
	(in thousands)
Satellites	$	32,340		$	14,288
Computer equipment and software		1,315			1,477
Office furniture and fixtures		1,388			2,052
Other equipment		434			718
Site equipment		1,311			1,271
Ground station equipment		1,415			1,415

Total		38,203			21,221
Less: accumulated depreciation		(17,351	)		(9,543	)
Less: held for sale, net		—			(710	)

Property and equipment - net	$	20,852		$	10,968

Depreciation of property and equipment from continuing operations for the years ended December 31, 2020 and 2019 was $8.5 million and $5.5 million, respectively.

During the year ended December 31, 2019, the Company recorded an impairment charge of $6.6 million related to a

non-functioning

satellite resulting in the derecognition of the carrying amount of the asset. The $6.6 million was never included as part of property and equipment balance; therefore, it is not included in the property and equipment schedule. In addition, in the year ended December 31, 2019, the Company reduced the useful life of one of the operational satellites to 1.5 years to reflect its impaired ability to collect imagery, subsequent to launch. There was no impairment for 2020.