Company: IRDM
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001628280-25-005302
Chunk: 155

Company: Iridium Communications Inc.
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 155
---
 underlying stock options and RSUs outstanding with anti-dilutive effects:Year Ended December 31,202420232022(In thousands)Performance-based RSUs— — 210 

16. Segments, Significant Customers, Supplier and Service Providers and Geographic Information

The Company’s operations are primarily located in the United States and the Company operates in one business segment, providing global satellite communications services and products. Its Chief Executive Officer has been determined to be the Chief Operating Decision Maker (“CODM”) to make key operating decisions and assess performance. The CODM evaluates the segment operating performance based on consolidated net income and reviews components of cost of services, including certain costs related to delivering engineering and other support services, which is considered a significant expense. Costs to support engineering and other support services, included within cost of services in the accompanying consolidated statements of operations and comprehensive income (loss), were $93.7 million, $77.6 million and $35.8 million for the years ended December 31, 2024, 2023 and 2022, respectively. The CODM considers budget-to-actual forecast and prior view-to-current view variances on a monthly and quarterly basis for evaluating performance and making decisions about allocating capital and other resources on a consolidated basis. The Company derived approximately 27%, 25% and 21% of its total revenue in the years ended December 31, 2024, 2023 and 2022, respectively, from prime contracts or subcontracts with agencies of the U.S. government. For the years ended December 31, 2024, 2023 and 2022, no single commercial customer accounted for more than 10% of the Company’s total revenue.Approximately 51% and 46% of the Company’s accounts receivable balance at December 31, 2024 and 2023, respectively, was due from prime contracts or subcontracts with agencies of the U.S. government. As of December 31, 2024 and 2023, no single commercial customer accounted for more than 10% of the Company’s total accounts receivable balance.The Company contracts for the manufacture of its subscriber equipment primarily from a limited number of manufacturers and utilizes other sole source suppliers for certain component parts of its devices. Should events or circumstances prevent the manufacturer or the suppliers from producing the equipment or component parts, the Company’s business could be adversely 

85

affected until the Company is able to move production to other facilities of the manufacturer or secure a replacement