Financial Analysis

10. Commitments and Contingencies Contingencies The Company recognized $ 15.7 million and $ 19.5 million in contingent liabilities related to Spaceflight, Inc. contracts as of June 30, 2025 and December 31, 2024 , respectively, which is included in other non-current liabilities in the unaudited condensed consolidated balance sheets.

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9. Notes Payable and Warrants Financing Agreement On July 17, 2023, the Company entered into a financing agreement (as amended from time to time and last amended August 13, 2024, the Financing Agreement) among the Company, as the Borrower, certain subsidiaries of the Company (collectively, Guarantors), lenders (the Lenders) and U.S. Bank Trust Company, N.A., as administrative agent and collateral agent (Agent). The Financing Agreement provided term loans in the aggregate principal amount of $ 136.1 million as of June 30, 2025 , comprised of $ 103.5 million principal amount of term A loans (the Term A Loans) and $ 32.6 million principal amount of term B loans (the Term B Loans, and together with the Term A Loans, and along with the incremental term loans from subsequent amendments from time to time, the Term Loans). The Term Loans mature on July 17, 2028 (the Term Loan Maturity Date). All obligations under the Financing Agreement are guaranteed by the Company and Guarantors, comprised of all wholly owned domestic subsidiaries of the Company other than certain excluded subsidiaries, and are secured by substantially all of the Companys assets. An AON Insurance Policy was issued to the Agent on behalf of the Lenders, which indemnifies the Lenders up to $ 103.5 million of the Term A Loans for any loss incurred if the Company fails to pay the Term Loans when due. The Company paid the initial insurance premium of $ 15.0 million using the proceeds from the Term Loans. The Company is …

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The following table presents revenue disaggregated by type for the three and six months ended June 30, 2025 and 2024 : For the Three Months Ended June 30, For the Six Months Ended June 30, 2025 2024 2025 2024 Launch revenue $ 6,349 $ 2,979 $ 11,519 $ 4,281 Spacecraft Solutions revenue 9,200 18,092 59,885 25,107 Total revenue $ 15,549 $ 21,071 $ 71,404 $ 29,388

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7. Fair Value Measurement The Company measures its financial assets and liabilities at fair value each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. A financial instruments classification within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company uses the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The carrying amounts of Companys financial instruments, which include cash equivalents, accounts receivable, prepaid expenses, other current assets, accounts payable, accrued liabilities and certain other current liabilities approximate fair value because of their short-term maturities. The Company issued warrants to purchase Series J Preferred Stock (the Series J Warrants) in connection with the Companys entrance into the Term Loans (as defined in Note 9. Notes Payable and Warrants ) and issued warrants to purchase common stock (the Common Warrants, together with the Series J Warrants, the Warrants) and two tranche obligations: (1) the RPM Call Option and (2) the Majority Sponsor Top-Up (both as defined in Note 11. Stockholders Deficit and Redeemable Convertible Preferred Stock ) in connection with the Comp …

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6. Goodwill The Company completed its annual goodwill impairment assessment as of October 1, 2024 and determined that no adjustments to the carrying value of goodwill were necessary. Goodwill is allocated to the Companys single reporting unit, which is both its sole operating segment and only reportable segment. The carrying amount of the Companys goodwill was $ 17.1 million at both June 30, 2025 and December 31, 2024 . …

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12. Income Taxes The Company computes its provision for income taxes by applying the estimated annual effective tax rate to year-to-date income from recurring operations and adjusts the provision for discrete tax items recorded in the period. The Company had no income tax expense for either the three or six months ended June 30, 2025 or for the three and six months ended June 30, 2024 , income tax expense was primarily attributable to the valuation allowance established against U.S. federal and state deferred income tax assets.

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Recently Issued Accounting Standards ASU 2023-06 In October 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-06, Disclosure Improvements: Codification Amendments in Response to the SECs Disclosure Update and Simplification Initiative , which incorporates certain disclosure requirements from the Commission into the FASB Accounting Standards Codification (ASC). The amendments in the ASU are expected to clarify or improve disclosure and presentation requirements of a variety of ASC topics, allow investors to more easily compare entities subject to the Commissions existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the ASC with the Commissions regulations. The effective date for each amendment will be the date on which the Commissions removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. The amendments in this ASU should be applied prospectively. The Company does not expect ASU 2023-06 will have a material impact on its consolidated financial statements. ASU 2023-09 In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , to enhance the transparency and decision-usefulness of income tax disclosures, particularly in the rate reconciliation table and disclosures about income taxes paid. The ASUs amendments are effective for annual peri …

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13. Related Party Transactions Investments and Debts The following transactions occurred between the Company and AE Industrial, which acquired the Company during 2022 and was a 42.04 % equityholder in the Company as of June 30, 2025. Even though the Company is part of AE Industrials portfolio of companies, it is not a part of AE Industrials consolidated tax return and files its tax returns independently. During the six months ended June 30, 2025 , AE Industrial purchased 0.3 million shares of the Series D-1 Preferred Stock for an aggregate purchase price of $ 5.0 million. Refer to Note 11. Stockholders Deficit and Redeemable Convertible Preferred Stock for further detail. Accounts Payable and Expenses G.S. Precision and Redwire Corporation are related parties of the Company, as these entities are part of AE Industrials portfolio and share a common board of directors. Belcan, LLC was a related party of the Company until August 31, 2024. The following is a summary of the Companys related party accounts payable as of June 30, 2025 and December 31, 2024, and related party research and development and selling, general, and administrative expenses for the three and six months ended June 30, 2025 and 2024: June 30, 2025 December 31, 2024 Accounts payable: AE Industrial $ 346 $ 46 Redwire Corporation 95 40 $ 441 $ 86 For the Three Months Ended June 30, For the Six Months Ended June 30, 2025 2024 2025 2024 Expenses: AE Industrial $ 105 $ $ 105 $ G.S. Precision 179 223 Redwire Corporat …

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3. Revenue The following table presents revenue disaggregated by type for the three and six months ended June 30, 2025 and 2024 : For the Three Months Ended June 30, For the Six Months Ended June 30, 2025 2024 2025 2024 Launch revenue $ 6,349 $ 2,979 $ 11,519 $ 4,281 Spacecraft Solutions revenue 9,200 18,092 59,885 25,107 Total revenue $ 15,549 $ 21,071 $ 71,404 $ 29,388 Launch Revenue The Company has contracts with commercial and government entities to provide launch and integration services for payloads requiring transportation into orbit via launch vehicles. These contracts may include milestone payments and deposits. The Company considers the performance obligation under these contracts to be the initiation of the launch and recognizes revenue at that point in time. When the contract contains multiple performance obligations, stand-alone selling prices are established for each performance obligation in the contract based on cost plus margin or market prices for similar goods and services. The Company also enters into contracts with its customers to provide engineering services and related components, and to develop and provide licenses for intellectual property. In these cases, the Companys performance obligation is satisfied over time since the tasks are performed according to the customers specifications, which creates an asset with no alternative use to the Company, for which the Company has an enforceable right to payment for performance completed to date. The measure …

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15. Segment and Geographical Info rmation The Company has determined that it operates in one ope rating segment and as a result, manages its operations and allocates resources as a single operating segment. The Companys Chief Operating Decision Maker (CODM) is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. The CODM uses net income or loss to evaluate the return on assets and to determine investment opportunities related to product development, platform enhancements, and new technologies. The CODM also uses net income or loss to monitor budget versus actual results. The following table includes the significant expense categories and amounts that are regularly provided to the CODM: For the Three Months Ended June 30, For the Six Months Ended June 30, 2025 2024 2025 2024 Revenue $ 15,549 $ 21,071 $ 71,404 $ 29,388 Less: Cost of sales ( 11,554 ) ( 18,120 ) ( 65,189 ) ( 28,360 ) Compensation (1) ( 23,348 ) ( 20,306 ) ( 46,052 ) ( 40,003 ) Materials and consumables (1) ( 18,354 ) ( 14,864 ) ( 37,715 ) ( 32,142 ) Contractors and outside services (1) ( 4,389 ) ( 4,319 ) ( 7,536 ) ( 6,334 ) Depreciation and amortization (1) ( 2,987 ) ( 2,760 ) ( 5,999 ) ( 4,690 ) Interest expense, net ( 5,237 ) ( 3,738 ) ( 10,401 ) ( 7,491 ) Other segment items (2) ( 13,458 ) ( 10,417 ) ( 22,383 ) ( 16,592 ) Net loss and comprehensive loss $ ( 63,778 …

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11. Stockholders Deficit and Redeemable Convertible Preferred Stock Redeemable Convertible Preferred Stock On January 12, 2024, the Company sold 1.3 million shares of its Series C Preferred Stock at $ 16.0640 per share for aggregate gross proceeds of $ 21.0 million. On February 15, 2024, the Company issued 0.1 million shares of its Series M Preferred Stock at $ 16.0640 per share to one of the Companys service providers in exchange for the settlement for $ 1.1 million of existing payables owed by the Company to the service provider. On March 11, 2024, the Company issued 6,000 shares of Series M Preferred Stock at $ 16.0640 per share to another of the Companys service providers in exchange for the settlement of $ 0.1 million of existing payables owed by the Company to the service provider. On October 31, 2024, the Company entered into the Series D Purchase Agreement with certain investor parties (the Series D Purchase Agreement) and on the same date sold 10.4 million shares of its Series D-1 Preferred Stock at a purchase price of $ 16.9213 per share for aggregate gross proceeds of $ 175.5 million (the Series D Initial Closing), including $ 25.8 million principal and accrued interest from the conversion of the subordinated convertible promissory notes. On November 15, 2024, the Company completed a subsequent closing (the Series D Second Closing) and sold an additional 0.1 million shares of Series D-1 Preferred Stock at $ 16.9213 per share for aggregate gross proceeds of $ 1.3 mi …

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16. Subsequent Events Series D Financing On July 3, 2025, the Company issued 2.8 million shares of its Series D-4 Preferred Stock in a private placement and received aggregate cash proceeds of $ 58.7 million. Preferred Stock Dividends On July 10, 2025, the Companys Board of Directors declared a dividend (the Preferred Stock Dividend) payable in shares of our common stock in respect of all accrued and unpaid dividends on the Companys outstanding shares of Series C, Series D-1, Series D-2, and Series D-3 Preferred Stock held as of July 11, 2025. The Company paid the Preferred Stock Dividends on July 16, 2025, upon receipt of consents that were required from certain third parties, and issued approximately 3.3 million shares of common stock to the then-existing holders of our Series C, Series D-1, Series D-2, and Series D-3 Preferred Stock. On August 8, 2025, the Companys Board of Directors declared a dividend (the IPO Closing Preferred Stock Dividend) payable in cash in respect of all unpaid dividends on the Companys outstanding shares of Series C, Series D-1, Series D-2, and Series D-3 Preferred Stock that had accrued following July 11, 2025 through the conversion of such Preferred Stock into shares of common stock on August 8, 2025 in connection with the completion of the IPO. On August 28, 2025, the Company paid the IPO Closing Preferred Stock Dividend in an aggregate amount of $ 5.0 million in cash. One Big Beautiful Bill Act On July 4, 2025, the One Big Beautiful Bill Act w …

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