Credit risk is the risk that a counterparty fails to discharge an obligation to us. We are exposed to credit risk from financial assets including cash, cash equivalents and restricted cash held at banks, trade and other receivables.

The credit risk is managed based on our credit risk management policies and procedures. Credit risk of any entity doing business with us is systematically analyzed, including aspects of a qualitative nature. The measurement and assessment of our total exposure to credit risk covers all financial instruments involving any counterparty risk.

The credit risk in respect of cash balances held with banks and deposits with banks are managed via diversification of bank deposits and are only with major reputable financial institutions.

As our risk exposure is mainly influenced by the individual characteristics of each customer, we continuously analyze the creditworthiness of significant customers. Accounts receivable are non-interest bearing and generally on terms of 30 to 90 days. As of June 30, 2025, three customers accounted for 60% of accounts receivable, net of allowance. As of December 31, 2024, two customers accounted for 70% of our accounts receivable net of allowance.

We had three customers that each accounted for more than 10% of our revenue totaling $3.1 million for the three months ended June 30, 2025 and three customers that each accounted for more than 10% of our revenue totaling $2.5 million for the three months ended June 30, 2024.

We had four customers that each accounted for more than 10% of our revenue totaling $6.1 million for the six months ended June 30, 2025 and three customers that each accounted for more than 10% of our revenue totaling $4.6 million for the six months ended June 30, 2024.

We assess potential impairments to long-lived assets whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. An impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the assets or asset group. We performed an impairment test as of June 30, 2025 due to our net losses for the three months then ended and concluded that the asset group is not impaired.

Estimates of future cash flows are highly subjective judgments based on management’s experience and knowledge of the Company's operations. These estimates can be significantly impacted by many factors, including changes in global economic conditions, operating costs, obsolescence of technology and competition.

If estimates or underlying assumptions change in the future, we may be required to record impairment charges. If the fair value of an asset group is less than its carrying amount, then the carrying amount of the asset group would be reduced to its fair value. That reduction is an impairment loss that would be recognized in the Consolidated Statements of Operations and Comprehensive Loss.

Aggregate foreign currency gains and losses, such as those resulting from the settlement of receivables or payables, foreign currency contracts and short-term intercompany advances in a currency other than the relevant subsidiary’s functional currency, are recorded currently in the Consolidated Statements of Operations and Comprehensive Loss (included in other

(expense) income, net) and resulted in losses of $0.3 million and gains of $0.9 million during the three months ended June 30, 2025 and 2024 and losses of $0.5 million and gains of $2.2 million during the six months ended June 30, 2025 and 2024, respectively.

For the three months ended June 30, 2025 and 2024, lease expense was $0.4 million and $0.6 million, respectively and for the six months ended June 30, 2025 and 2024, lease expense was $0.8 million and $1.1 million, respectively. The decrease in lease expense was due primarily to the 2024 termination of a facility lease in the Netherlands. Lease obligations and right of use assets increased as of June 30, 2025 compared to December 31, 2024 due primarily to new ground station antenna leases in the six months ended June 30, 2025.

Accounts are written off against the allowance for credit losses account when they are determined to be no longer collectible. The following table shows the activity in the allowance for credit losses for the six months ended June 30, 2025 and 2024:


	June 30,
	2025		2024
Allowance for credit losses as of beginning of year	$	148	$	126
Provision	(8)		47
Write offs	(11)		—
Recoveries collected	(41)		(59)

Allowance for credit losses as of end of period	$	88	$	114


	June 30,		December 31,
	2025		2024
Cash and cash equivalents	$	32,569	$	22,493


Restricted cash included in Other non-current assets	1,010		1,189
Total cash, cash equivalents and restricted cash	$	33,579	$	23,682


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Cash paid during the period for:
Income tax, net of refunds	$	146	$	1,974	$	302	$	1,974
Interest	$	3	$	2	$	1,673	$	11


	June 30,
	2025		2024
Supplemental cash flow information
Unpaid property and equipment included in accounts payable	$	375	$	1,064