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Business Combinations | 12 Months Ended
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Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract] |
Business Combinations | Note C – Business Combinations QinetiQ Space NV Acquisition On October 31, 2022, the Company acquired 100% of the equity interests in QinetiQ Space NV (“Space NV”) for $36.9 million (€37 million) in cash. The acquisition supports the Company’s growth in its offering of satellite technologies, berthing and docking equipment, space instruments and advanced payloads, as well as expanded its global footprint. The following table summarizes the fair value of the consideration transferred and the estimated fair values of the major classes of assets acquired and liabilities assumed as of the acquisition date.
| October 31, 2022
Cash paid | $ | 36,930 |
Purchase consideration | $ | 36,930 |
Assets: |
Cash | $ | 3,700 |
Accounts receivable and other receivable | 3,606 |
| October 31, 2022
Contract assets | 18,830 |
Prepaid expenses and other current assets | 3,100 |
Property, plant and equipment | 5,656 |
Right-of-use assets | 1,166 |
Intangible assets | 13,935 |
Equity method investments | 3,000 |
Total assets | 52,993 |
Liabilities: |
Accounts payable | 4,201 |
Short-term operating lease liabilities | 199 |
Short-term finance lease liabilities | 279 |
Accrued expenses | 18,636 |
Deferred revenue | 5,513 |
Other current liabilities | 399 |
Long-term operating lease liabilities | 908 |
Long-term finance lease liabilities | 563 |
Deferred tax liabilities | 2,727 |
Other non-current liabilities | 281 |
Total liabilities | 33,706 |
Fair value of net identifiable assets acquired | 19,287 |
Less: Fair value of noncontrolling interests | 215 |
Goodwill | $ | 17,858 |
The following table summarizes the intangible assets acquired by class:
| October 31, 2022 |  | Weighted average useful life in years
Technology | $ | 4,700 |  |  | 7
Customer relationships | 7,400 |  |  | 30
Software | 235 |  |  | 2
IPR&D | 1,600 |  |  |
Total intangible assets | $ | 13,935 |  |  |
During the year ended December 31, 2023, the Company recorded a non-cash measurement period adjustment to goodwill of $0.5 million, which increased the balance of goodwill to $17.9 million as of December 31, 2023. The fair value of the acquired technology and IPR&D was estimated using the relief from royalty (“RFR”) method. The fair value of the acquired customer relationships was estimated using the excess earnings method. The fair value of the acquired investment in RSS was estimated using the guideline public company method. The acquisition was accounted for as a business combination, whereby the excess of the consideration paid over the fair value of identifiable net assets was allocated to goodwill. The goodwill reflects the potential synergies and expansion of the Company’s offerings across product lines and markets complementary to its existing products and markets. For tax purposes, the goodwill is not deductible. The results of operations of Space NV for the period from October 31, 2022 to December 31, 2022 have been included in the results of operations for the year ended December 31, 2022. The table below presents the post-acquisition revenues, net income (loss) attributable to Redwire Corporation, and acquisition-related costs (included in transaction expenses) of Space NV included in the consolidated statements of operations and comprehensive income (loss) for the following period:
|  |  | December 31, 2022
Post-acquisition revenues |  |  | $ | 11,658 |
Net income (loss) attributable to Redwire Corporation |  |  | $ | (294) |
Transaction expenses |  |  | $ | 3,112 |
Pro Forma Financial Data (Unaudited) The table below presents the pro forma combined results of operations for the business combination for the year ended December 31, 2022 as though the acquisition of Space NV had been completed as of January 1, 2021.
|  |  |  |  | Year Ended
|  |  |  |  | December 31, 2022
Revenues |  |  |  |  | $ | 207,761 |
Net income (loss) attributable to Redwire Corporation |  |  |  |  | (129,645) |
The amounts included in the pro forma information are based on the historical results and do not necessarily represent what would have occurred if the Space NV acquisition had taken place as of January 1, 2021, nor do they represent the results that may occur in the future. Accordingly, the pro forma financial information should not be relied upon as being indicative of the results that would have been realized had the business combination occurred as of the date indicated or that may be achieved in the future. The Company incurred nominal costs during the year ended December 31, 2023 and $3.2 million of costs during the year ended December 31, 2022, related to completed acquisitions as of the respective periods. Costs incurred in 2022 were attributable to the Redwire Space Technologies, Inc. (f/k/a Techshot, Inc.) (“Techshot”) and Space NV acquisitions. These expenses are included in transaction expenses on the consolidated statements of operations and comprehensive income (loss) and are also reflected in the pro forma results for the periods presented in the table above.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479907/805-20-50-5 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//805/tableOfContent + Details
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