Company: IRDM
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001628280-25-005302
Chunk: 153

Company: Iridium Communications Inc.
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 153
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 membership interest. The Company’s investment in Aireon Holdings is accounted for as an equity method investment. The carrying value of the Company’s investment in Aireon Holdings was $41.5 million and $44.6 million as of December 31, 2024 and 2023, respectively. The investments by the Company prior to June 2022 had previously been written down to a carrying value of zero.At each of December 31, 2024 and 2023, the Company’s fully diluted ownership stake in Aireon Holdings was approximately 39.5%, which is subject to partial future redemption under provisions contained in the Aireon Holdings LLC Agreement.Under the agreements with Aireon, Aireon will pay the Company fees of $200.0 million to host the ADS-B receivers, of which $110.5 million had been paid as of December 31, 2024. These fees are recognized over the estimated useful lives of the satellites, which is expected to result in revenue of approximately $9.3 million per year, following the change in estimate of the useful lives of the satellites that occurred in the fourth quarter of 2023. The Company recognized hosting fee revenue of $9.3 million, $14.4 million and $16.1 million for the years ended December 31, 2024, 2023 and 2022, respectively. There were no receivables due from Aireon for hosting fees as of December 31, 2024 and 2023. Additionally, Aireon pays power and data services fees of approximately $23.5 million per year, in the aggregate, for the delivery of the air traffic surveillance data over the Iridium system. The Company recorded $23.5 million of power and data service fee revenue from Aireon for each of the years ended December 31, 2024, 2023 and 2022. Receivables due from Aireon under this agreement totaled $2.0 million as of December 31, 2024. There were no receivables due under this agreement as of December 31, 2023. Under two services agreements, the Company also provides Aireon with administrative services and support services, the fees for which are paid monthly. Aireon receivables due to the Company under these two agreements totaled $1.7 million and $2.2 million for the years ended December