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Revenue
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue
NOTE 3 - REVENUE
Disaggregated Revenue
We disaggregate our revenue from contracts with customers by contract type. The following table provides information about disaggregated revenue for the three and nine months ended September 30, 2024 and 2023 (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Revenue by Contract Type
Cost reimbursable$33,844 58 %$— — %$115,581 67 %$— — %
Fixed price23,097 39 %10,259 81 %52,759 30 %42,803 87 %
Time and materials1,537 3 %2,472 19 %4,998 3 %6,157 13 %
Total$58,478 100 %$12,731 100 %$173,338 100 %$48,960 100 %
Contract Assets and Liabilities
Contract assets primarily relate to deferred contract costs for subcontracted launch services, as well as work completed not yet billed for performance obligations that are satisfied over time. Deferred contract costs and unbilled receivables are recorded contract assets on our condensed consolidated balance sheets. Contract assets related to deferred contract costs are amortized straight-line across the life of the long-term service arrangement. Contract assets related to work completed for performance obligations that are satisfied over time are transferred to receivables when the right to consideration becomes unconditional. Contract liabilities relate to billings or consideration received in advance of performance (obligation to transfer goods or services to a customer) under the contract as well as provisions for loss contracts. Contract liabilities are recognized as revenue when the performance obligation has been performed. Current deferred revenue and provisions for loss contracts are recorded in current contract liabilities on our condensed consolidated balance sheets. Long-term deferred revenue and provisions for loss contracts are recorded in long-term contract liabilities on our condensed consolidated balance sheets.
The following table presents contract assets as of September 30, 2024 and December 31, 2023 (in thousands):
September 30,
2024		December 31,
2023
Contract Assets
Unbilled receivables$16,772 $6,146 
Deferred contract costs4,800 343 
Total$21,572 $6,489 
Amortization expense associated with deferred contract costs for subcontracted launch services was recorded in cost of revenue and was $2.5 million and $8.7 million, respectively, for the three and nine months ended September 30, 2024, and $7.1 million and $25.1 million, respectively, for the three and nine months ended September 30, 2023.

The following table presents contract liabilities as of September 30, 2024 and December 31, 2023 (in thousands):
September 30,
2024		December 31,
2023
Contract liabilities – current
Deferred revenue$44,364 $22,896 
Contract loss provision8,167 5,457 
Accrued launch costs2,274 13,018 
Total contract liabilities – current54,805 41,371 
Contract liabilities – long-term
Contract loss provision879 — 
Total contract liabilities – long-term879 — 
Total contract liabilities$55,684 $41,371 
Revenue recognized from amounts included in contract liabilities at the beginning of the period was $8.4 million and $33.4 million during the nine months ended September 30, 2024 and 2023, respectively.
Loss Contracts
A contract loss occurs when the current estimate of the consideration that we expect to receive is less than the current estimate of total estimating costs to complete the contract. For purposes of determining the existence of or amount of a contract loss, we consider total contract consideration, including any variable consideration constrained for revenue recognition purposes. We may experience favorable or unfavorable changes to contract losses from time to time due to changes in estimated contract costs and modifications that result in changes to contract price. We recorded net losses related to contracts with customers of $1.7 million and $22.8 million, respectively, for the three and nine months ended September 30, 2024, and $15.4 million and $25.6 million, respectively, for the three and nine months ended September 30, 2023.
As of September 30, 2024, the status of these loss contracts was as follows:
•The first contract, for lunar payload services, became a loss contract due to estimated contract costs exceeding the estimated amount of consideration that we expected to receive. The contract was successfully completed in February 2024. As a result of the successful mission, previously constrained variable consideration of $12.3 million as of December 31, 2023 was released and approximately $11.6 million was recognized as revenue during the first quarter of 2024. For the nine months ended September 30, 2024, and 2023, changes in estimated contract costs resulted in an additional $5.7 million and $8.2 million in contract loss, respectively.
•The second contract, for lunar payload services, became a loss contract in 2021 due to estimated contract costs exceeding the estimated amount of consideration that we expected to receive. For the nine months ended September 30, 2024 and 2023, changes in estimated contract costs resulted in an additional $9.9 million and $5.9 million in contract loss, respectively. As of September 30, 2024, and 2023, this contract was approximately 64% complete and 55% complete, respectively. The period of performance for this contract currently runs through June 2026 as a result of modifications to the contract. As of September 30, 2024 and December 31, 2023, the contract loss provision recorded in contract liabilities, current was $7.2 million and $4.6 million, respectively, and $0.9 million and zero, respectively, in contract liabilities, non-current in our condensed consolidated balance sheets.
•The third contract, for lunar payload services, became a loss contract in 2023 due to estimated contract costs exceeding the estimated amount of consideration that we expected to receive. For the nine months ended September 30, 2024 and 2023, changes in estimated contract costs resulted in an additional $7.2 million and $11.4 million in contract loss, respectively. As of September 30, 2024 this contract was approximately 93% complete. The period of performance for this contract currently runs through August 2025 as a result of modifications to the contract. As of September 30, 2024 and December 31, 2023, the contract loss provision recorded in contract liabilities, current in our condensed consolidated balance sheets was $1.0 million and $0.9 million, respectively.
•The remaining loss contracts are individually and collectively immaterial.
Remaining Performance Obligations
Remaining performance obligations represent the remaining transaction price of firm orders for which work has not been performed and excludes unexercised contract options. As of September 30, 2024, the aggregate amount of the transaction price allocated to remaining fixed price performance obligations was $195.5 million. The Company expects to recognize revenue on approximately 10-15% of the remaining performance obligations over the next 3 months, 45-50% in 2025 and the remaining thereafter. Remaining performance obligations do not include variable consideration that was determined to be constrained as of September 30, 2024.
For time and materials contracts and cost reimbursable contracts, we have adopted the practical expedient that allows us to recognize revenue based on our right to invoice; therefore, we do not report unfulfilled performance obligations for time and materials and cost reimbursable agreements.