Virgin Galactic Holdings, Inc. Files 2023 Annual Report (10-K)

TL;DR

<b>Virgin Galactic Holdings, Inc. has filed its 2023 10-K report detailing financial performance and operational data.</b>

AI Summary

Virgin Galactic Holdings, Inc (SPCE) filed a Annual Report (10-K) with the SEC on February 27, 2024. Virgin Galactic Holdings, Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business address is 1700 Flight Way, Tustin, CA 92782. The filing includes financial data for the fiscal years 2021, 2022, and 2023. Key financial statement components such as Common Stock, Additional Paid-In Capital, Retained Earnings, and Accumulated Other Comprehensive Income are detailed for multiple year-ends.

Why It Matters

For investors and stakeholders tracking Virgin Galactic Holdings, Inc, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Virgin Galactic's financial health and operational status for the fiscal year 2023, crucial for investors assessing the company's trajectory in the commercial spaceflight industry. The detailed financial data, including breakdowns of assets and equity components, allows stakeholders to analyze the company's financial position and historical performance trends.

Risk Assessment

Risk Level: — Virgin Galactic Holdings, Inc shows moderate risk based on this filing. The company operates in a nascent and capital-intensive industry with significant technological and regulatory hurdles, as indicated by the nature of its business and the detailed financial reporting required in a 10-K.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Virgin Galactic's financial position and future prospects in the commercial spaceflight sector.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-27 — Filing Date (Date of submission)

Key Players & Entities

• Virgin Galactic Holdings, Inc. (company) — Filer name
• 1700 Flight Way, Tustin, CA 92782 (address) — Business address
• 2023-12-31 (date) — Fiscal year end
• 2024-02-27 (date) — Filing date

FAQ

Industry Context

Virgin Galactic operates in the commercial spaceflight industry, aiming to provide suborbital space tourism and research flights.

Regulatory Implications

The company is subject to regulations governing aerospace and commercial space activities, which are detailed within its SEC filings.

What Investors Should Do

1. Review the full 10-K filing for detailed financial statements and management discussion.
2. Analyze the risk factors section for potential challenges and uncertainties.
3. Compare the 2023 financial data with previous years to identify trends.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-27: Filing Date — Date the 10-K report was officially submitted to the SEC.

Year-Over-Year Comparison

This filing represents the annual 10-K report for the fiscal year 2023, providing a comprehensive update compared to previous quarterly or annual filings.

Key Financial Figures

• $3.88 — reference to the closing sales price of $3.88 reported on The New York Stock Exchange
• $0.0001 — hares of the registrant's common stock, $0.0001 par value per share, issued and outstan
• $99.7 million — y 750 spaceflight tickets and collected $99.7 million in deposits and membership fees from fu

Filing Documents

• spce-20231231.htm (10-K) — 1911KB
• spce-20231231x10xkxexh211x.htm (EX-21.1) — 6KB
• spce-20231231x10xkxexh231x.htm (EX-23.1) — 5KB
• spce-20231231x10xkxexh232x.htm (EX-23.2) — 2KB
• spce-20231231x10xkxexh311.htm (EX-31.1) — 11KB
• spce-20231231x10xkxexh312.htm (EX-31.2) — 11KB
• spce-20231231x10xkxexh321.htm (EX-32.1) — 7KB
• spce-20231231x10xkxexh322.htm (EX-32.2) — 7KB
• spce-20231231x10xkxexh97xp.htm (EX-97) — 30KB
• spce-20231231_g1.jpg (GRAPHIC) — 32KB
• spce-20231231_g2.jpg (GRAPHIC) — 28KB
• spce-20231231_g3.jpg (GRAPHIC) — 31KB
• spce-20231231_g4.jpg (GRAPHIC) — 281KB
• 0001706946-24-000039.txt (&nbsp;) — 10286KB
• spce-20231231.xsd (EX-101.SCH) — 49KB
• spce-20231231_cal.xml (EX-101.CAL) — 106KB
• spce-20231231_def.xml (EX-101.DEF) — 231KB
• spce-20231231_lab.xml (EX-101.LAB) — 780KB
• spce-20231231_pre.xml (EX-101.PRE) — 526KB
• spce-20231231_htm.xml (XML) — 1488KB

Business

Item 1. Business 4

Risk Factors

Item 1A. Risk Factors 22

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 46

Cybersecurity

Item 1C. Cybersecurity 46

Properties

Item 2. Properties 46

Legal Proceedings

Item 3. Legal Proceedings 47

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 47 Part II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 47

[Reserved]

Item 6. [Reserved] 48

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 49

Quantitative and Qualitative Disclosures about Market Risk

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 56

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 57

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 57

Controls and Procedures

Item 9A. Controls and Procedures 57

Other Information

Item 9B. Other Information 58

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 58 Part III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 59

Executive Compensation

Item 11. Executive Compensation 59

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 59

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 59

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 59 Part IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 60

Form 10-K Summary

Item 16. Form 10-K Summary 63

Signatures

Signatures 64 Index to Consolidated Financial Statements and Supplementary Data F- 1 Table of Contents Cautionary Note Regarding Forward-Looking Statements This Annual Report on Form 10-K contains forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning us and other matters. These statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial condition, or otherwise, based on current beliefs of management, as well as assumptions made by, and information currently available to management. Forward-looking statements may be accompanied by words such as "achieve," "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "future," "grow," "increase," "intend," "may," "opportunity," "plan," "possible," "potential," "predict," "project," "should," "strategy," "target," "will," "would," or similar words, phrases, or expressions. These forward-looking statements are subject to various risks and uncertainties, many of which are outside our control. Therefore, you should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the following: any delay in future commercial flights of our spaceflight fleet; our ability to successfully develop and test our next generation vehicles, and the time and costs associated with doing so; the safety of our spaceflight systems; the development of the markets for commercial spaceflight and commercial research and development payloads; our ability to effectively market and sell spaceflights; our ability to convert our backlog or inbound inquiries into revenue; our anticipated full passenger capacity; our ability to achieve or maintain profitability; delay in development or the manufacture of spaceflight systems; our ability to supply our

Business

Item 1. Business. Overview We are at the vanguard of a new industry, pioneering a consumer space experience using reusable spaceflight systems. We believe the commercial exploration of space represents one of the most exciting and important technological initiatives of our time. This industry is growing dramatically due to new products, new sources of private and government funding, and new technologies. Demand is emerging from new sectors and demographics, which we believe is broadening the total addressable market. As government space agencies have retired or reduced their capacity to send humans into space, private companies are beginning to make exciting inroads into the fields of human space exploration. We have embarked on this journey with a mission to put humans and research experiments into space and return them safely to Earth on a routine and consistent basis. With our next generation vehicles, we plan to be capable of doing so at an unprecedented frequency. We believe that opening access to space will connect the world to the wonder and awe created by space travel, offering customers a transformative experience, and providing the foundation for a myriad of exciting new industries. We are an aerospace and space travel company, offering access to space for private individuals, researchers and government agencies. Our missions include flying passengers to space, as well as flying scientific payloads and researchers to space in order to conduct experiments for scientific and educational purposes. Our operations include the design and development, manufacturing, ground and flight testing, spaceflight operation, and post-flight maintenance of our spaceflight system. Our current spaceflight system was developed using our proprietary technology and processes and is focused on providing space experiences for private astronauts, researcher flights and professional astronaut training. We have also leveraged our knowledge and expertise in manufacturing spaceshi