Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 26, 2020 | Jun. 28, 2019 | |
Entity Listings [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-38202 | ||
Entity Registrant Name | Virgin Galactic Holdings, Inc | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 98-1366046 | ||
Entity Address, Address Line One | 166 North Roadrunner Parkway, Suite 1C | ||
Entity Address, City or Town | Las Cruces | ||
Entity Address, State or Province | NM | ||
Entity Address, Postal Zip Code | 88011 | ||
City Area Code | 575 | ||
Local Phone Number | 424-2100 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 720.4 | ||
Entity Common Stock, Shares Outstanding | 195,769,015 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement relating to its annual meeting of stockholders to be held in 2020 (the “2020 Annual Meeting”), to be filed with the Securities and Exchange Commission (the “SEC”) within 120 days after the end of the fiscal year to which this Annual Report on Form 10-K relates, are incorporated herein by reference where indicated. Except with respect to information specifically incorporated by reference in this Annual Report on Form 10-K, such proxy statement is not deemed to be filed as part hereof. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001706946 | ||
Current Fiscal Year End Date | --12-31 | ||
Units | |||
Entity Listings [Line Items] | |||
Title of 12(b) Security | Units consisting of one share of common stock, $0.0001 par value per share, and one-third of one warrant to purchase one share of common stock | ||
Trading Symbol | SPCE.U | ||
Security Exchange Name | NYSE | ||
Common Stock | |||
Entity Listings [Line Items] | |||
Title of 12(b) Security | Common stock, $0.0001 par value per share | ||
Trading Symbol | SPCE | ||
Security Exchange Name | NYSE | ||
Warrants | |||
Entity Listings [Line Items] | |||
Title of 12(b) Security | Warrants to purchase common stock | ||
Trading Symbol | SPCE.WS | ||
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 480,443 | $ 73,990 |
Restricted cash | 12,278 | 7,378 |
Accounts receivable | 461 | 1,279 |
Inventories | 26,817 | 23,288 |
Prepayments and other current assets | 16,672 | 4,195 |
Due from related party, net | 0 | 8,967 |
Total current assets | 536,671 | 119,097 |
Property, plant, and equipment, net | 49,333 | 34,214 |
Right-of-use asset | 16,927 | |
Other noncurrent assets | 2,615 | 2,728 |
Total assets | 605,546 | 156,039 |
Current liabilities | ||
Accounts payable | 7,038 | 7,217 |
Current portion of operating lease obligation | 2,354 | |
Current portion of finance lease obligation | 47 | |
Current portion of capital lease obligation | 56 | |
Accrued liabilities | 22,277 | 18,166 |
Customer deposits | 83,362 | 80,883 |
Due to related parties, net | 767 | 0 |
Total current liabilities | 115,845 | 106,322 |
Deferred rent | 8,158 | |
Operating lease obligation, net of current portion | 21,867 | |
Financing lease obligation, net of current portion | 274 | |
Total liabilities | 137,986 | 114,480 |
Commitments and contingencies (Note 14) | ||
Stockholders' Equity | ||
Net parent investment | 41,477 | |
Preferred stock, $0.0001 par value; 10,000,000 authorized; none issued and outstanding | 0 | 0 |
Common stock, $0.0001 par value; 700,000,000 shares authorized; 196,001,038 and 0 shares issued and outstanding as of December 31, 2019 and 2018, respectively | 20 | 0 |
Additional paid-in capital | 589,158 | 0 |
Accumulated deficit | (121,677) | 0 |
Accumulated other comprehensive income | 59 | 82 |
Total stockholders' equity | 467,560 | 41,559 |
Total liabilities and stockholders' equity | $ 605,546 | $ 156,039 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) | Dec. 31, 2019$ / sharesshares |
Statement of Financial Position [Abstract] | |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 |
Preferred stock, shares outstanding (in shares) | 0 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 |
Common stock, shares authorized (in shares) | 700,000,000 |
Common stock, shares issued (in shares) | 196,001,038 |
Common stock, shares outstanding (in shares) | 196,001,038 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Revenue | $ 3,781 | $ 2,849 | $ 1,754 |
Cost of revenue | 2,004 | 1,201 | 488 |
Gross profit | 1,777 | 1,648 | 1,266 |
Selling, general, and administrative expenses | 82,166 | 50,902 | 46,886 |
Research and development expenses | 132,873 | 117,932 | 93,085 |
Operating loss | (213,262) | (167,186) | (138,705) |
Interest income | 2,297 | 633 | 241 |
Interest expense | 36 | 10 | 21 |
Other income | 128 | 28,571 | 453 |
Loss before income taxes | (210,873) | (137,992) | (138,032) |
Income tax expense | 62 | 147 | 155 |
Net loss | (210,935) | (138,139) | (138,187) |
Other comprehensive loss: | |||
Foreign currency translation adjustment | (23) | (52) | (21) |
Total comprehensive loss for the year | $ (210,958) | $ (138,191) | $ (138,208) |
Net loss per share: | |||
Basic and diluted (in dollars per share) | $ (1.09) | $ (0.71) | $ (0.71) |
Weighted-average shares outstanding | |||
Basic and diluted (in shares) | 194,378,154 | 193,663,150 | 193,663,150 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands | Total | Net Parent Investment | Member's Equity | Preferred Stock | Common Stock | Additional paid-in capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2016 | $ 23,320 | $ 23,165 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 155 |
Beginning balance (in shares) at Dec. 31, 2016 | 0 | 0 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (138,187) | (138,187) | ||||||
Other comprehensive income (loss) | (21) | (21) | ||||||
Net transfer from Parent Company | 137,955 | 137,955 | ||||||
Ending balance at Dec. 31, 2017 | 23,067 | 22,933 | $ 0 | $ 0 | $ 0 | 0 | 0 | 134 |
Ending balance (in shares) at Dec. 31, 2017 | 0 | 0 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (138,139) | (138,139) | ||||||
Other comprehensive income (loss) | (52) | (52) | ||||||
Net transfer from Parent Company | 156,683 | 156,683 | ||||||
Ending balance at Dec. 31, 2018 | 41,559 | 41,477 | $ 0 | $ 0 | $ 0 | 0 | 0 | 82 |
Ending balance (in shares) at Dec. 31, 2018 | 0 | 0 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (210,935) | (89,258) | (121,677) | |||||
Other comprehensive income (loss) | (23) | (23) | ||||||
Net transfer from Parent Company | 106,119 | 106,119 | ||||||
Contributions from Parent Company | 56,310 | $ 56,310 | ||||||
Conversion from net parent investment into members' equity | 0 | (58,338) | $ 58,338 | |||||
Conversion from net parent investment into members' equity (in shares) | 100 | |||||||
Conversion of member's equity into common stock (in shares) | (100) | 114,790,438 | ||||||
Conversion of members' equity into common stock | 0 | $ (114,648) | $ 12 | 114,636 | ||||
Stock-based compensation | 2,535 | 2,535 | ||||||
Issuance of common stock, net of costs (in shares) | 1,924,402 | |||||||
Issuance of common stock, net of costs | 20,000 | 20,000 | ||||||
Effect of reverse acquisition, net of costs (in shares) | 79,286,198 | |||||||
Effect of reverse recapitalization, net of costs | 451,995 | $ 8 | 451,987 | |||||
Ending balance at Dec. 31, 2019 | $ 467,560 | $ 0 | $ 0 | $ 0 | $ 20 | $ 589,158 | $ (121,677) | $ 59 |
Ending balance (in shares) at Dec. 31, 2019 | 0 | 0 | 196,001,038 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Net loss | $ (210,935) | $ (138,139) | $ (138,187) |
Stock-based compensation | 2,535 | 0 | 0 |
Depreciation and amortization | 6,999 | 5,807 | 5,148 |
Deferred rent | (547) | 1,464 | |
(Gain) loss on disposal of property and equipment | (38) | 25 | 0 |
Change in assets and liabilities | |||
Accounts receivable | 819 | (416) | 138 |
Inventories | (3,528) | (13,122) | (1,191) |
Prepayments and other current assets | (12,476) | (76) | 1,205 |
Other noncurrent assets | 1,178 | 101 | (4) |
Due from related party, net | 9,734 | (1,786) | (3,653) |
Accounts payable and accrued liabilities | (323) | 3,690 | 62 |
Customer deposits | 2,479 | (1,240) | (1,657) |
Net cash used in operating activities | (203,556) | (145,703) | (136,675) |
Cash flows from investing activity | |||
Capital expenditures | (19,411) | (10,590) | (5,597) |
Cash used in investing activity | (19,411) | (10,590) | (5,597) |
Cash flows from financing activities | |||
Payments of capital lease obligations | (104) | ||
Payments of finance lease obligations | (88) | (85) | |
Net transfer from Parent Company | 56,310 | 0 | 0 |
Proceeds from Parent Company | 106,119 | 156,683 | 137,955 |
Proceeds from issuance of common stock | 20,000 | 0 | 0 |
Proceeds from reverse recapitalization | 500,000 | 0 | 0 |
Payments for reverse recapitalization and common stock issuance costs | (48,005) | 0 | 0 |
Net cash provided by financing activities | 634,320 | 156,595 | 137,870 |
Net increase (decrease) increase in cash and cash equivalents | 411,353 | 302 | (4,402) |
Cash, cash equivalents and restricted cash at beginning of year | 81,368 | 81,066 | 85,468 |
Cash, cash equivalents and restricted cash at end of year | 492,721 | 81,368 | 81,066 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |||
Cash, cash equivalents and restricted cash | $ 492,721 | $ 81,066 | $ 81,066 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Virgin Galactic Holdings, Inc. and its wholly owned subsidiaries ("VGH, Inc.") are focused on the development, manufacture and operations of spaceships and related technologies for the purpose of conducting commercial human spaceflight and flying commercial research and development payloads into space. The development and manufacturing activities are located in Mojave, California with plans to operate the commercial spaceflights out of Spaceport America located in New Mexico. VGH, Inc. is majority owned by Vieco USA, Inc. (“Vieco US”), a wholly owned subsidiary of Vieco 10 Limited, a British Virgin Islands Company ("V10"). VGH, Inc. was originally formed as a Cayman Islands exempted company on May 5, 2017 under the name Social Capital Hedosophia Holdings Corp (“SCH”). SCH was a public investment vehicle incorporated as a blank check company for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. On July 9, 2019, SCH and V10 executed a definitive merger agreement between SCH and the entities under common control of V10 comprising the Virgin Galactic operating businesses (the “VG Companies”) (the “Virgin Galactic Business Combination”). The closing of the Virgin Galactic Business Combination occurred on October 25, 2019 and, in connection with the closing, SCH re-domiciled as a Delaware corporation under the name Virgin Galactic Holdings, Inc. Upon closing, the entities comprising the VG Companies became wholly owned subsidiaries of VGH, Inc. and in exchange the VGH, Inc. common stock due to V10 as consideration was received and directly held by Vieco US. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting PoliciesVirgin Galactic Business Combination and Basis of Presentation The Virgin Galactic Business Combination was accounted for as a reverse recapitalization. Under this method of accounting, SCH has been treated as the acquired company for financial reporting purposes. This determination was primarily based on current shareholders of the VG Companies having a relative majority of the voting power of the combined entity, the operations of the VG Companies prior to the acquisition comprising the only ongoing operations of the combined entity, and senior management of the VG Companies comprising the majority of the senior management of the combined entity. Accordingly, for accounting purposes, the financial statements of the combined entity represent a continuation of the financial statements of the VG Companies with the acquisition being treated as the equivalent of the VG Companies issuing stock for the net assets of SCH, accompanied by a recapitalization. The net assets of SCH were recognized as of the date of the Virgin Galactic Business Combination at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the Virgin Galactic Business Combination in these financial statements are those of the VG Companies and the accumulated deficit of VG Companies has been carried forward after the Virgin Galactic Business Combination. Earnings per share calculations for all periods prior to the Virgin Galactic Business Combination have been retrospectively adjusted for the equivalent number of shares outstanding immediately after the Virgin Galactic Business Combination to effect the reverse acquisition. These consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). All intercompany transactions and balances between the various legal entities comprising the Company have been eliminated in consolidation. Prior to the Virgin Galactic Business Combination, these consolidated financial statements have been derived from the historical consolidated financial statements of V10 and include assets, liabilities, revenues and expenses directly attributable to our operations and allocations of corporate expenses from the V10 and GV for providing certain corporate functions, which included, but are not limited to, general corporate expenses related to finance, legal, compliance, facilities, and employee benefits. Following the Virgin Galactic Business Combination, these consolidated financial statements represent the stand-alone activity of the Company. Prior to the Virgin Galactic Business Combination, corporate expenses were allocated to us from V10 and GV on the basis of direct usage when identifiable or on the basis of headcount. The Company, V10 and GV each consider the basis on which the expenses have been allocated to be a reasonable reflection of the utilization of services provided to or the benefit received by the Company. Following the Virgin Galactic Business Combination, the Company expects to incur additional expenses as a stand-alone company. It is not practicable to estimate actual costs that would have been incurred had the Company been a stand-alone company during the periods presented prior to the Virgin Galactic Business Combination. Actual costs that may have been incurred if the Company had been a stand-alone company would depend on a number of factors, including the chosen organizational structure, what functions were outsourced or performed by employees and strategic decisions made in areas such as information technology and infrastructure. The historical consolidated financial statements prior to the Virgin Galactic Business Combination do not reflect any attribution of debt or allocation of interest expense. Following the Virgin Galactic Business Combination, we perform these corporate functions using our own resources or purchased services. We have entered into a transition service agreement with V10 in connection with the separation, many of which are expected to have terms longer than one year. Prior to the Virgin Galactic Business Combination, the Company was historically funded as part of our V10 and GV’s treasury program. Cash and cash equivalents were managed through bank accounts legally owned by us, V10 and GV. Accordingly, cash and cash equivalents held by our V10 and GV at the corporate level were not attributable to us for any of the periods presented. Only cash amounts legally owned by entities dedicated to the Company are reflected in the condensed consolidated balance sheets. Transfers of cash, both to and from V10 and GV’s treasury program by us or related parties, are reflected as a component of net parent investment or membership equity in the consolidated balance sheets and as a financing activity on the accompanying consolidated statements of cash flows. Prior to the Virgin Galactic Business Combination, as the various entities that make up the Company were not historically held by a single legal entity prior to the contribution of the VG Companies into VGH, LLC on July 8, 2019, total net parent investment is shown in lieu of equity in the consolidated financial statements as of the applicable historical periods. Balances between us, V10 and GV that were not historically cash settled are included in net parent investment. Net parent investment represents V10’s interest in the recorded assets of us and represents the cumulative investment by V10 in us through July 8, 2019, inclusive of operating results. Prior to the Virgin Galactic Business Combination, certain of our employees historically participated in V10’s stock-based compensation plans in the form of options issued pursuant to V10's plan. The performance conditions set forth in V10 stock-based compensation plans resulted in no stock-based compensation expense recognized during all periods presented prior to consummation of the Virgin Galactic Business Combination. Prior to the Virgin Galactic Business Combination, the operations of the Company were included in the consolidated U.S. federal, and certain state and local and foreign income tax returns filed by GV, where applicable. Income tax expense and other income tax related information contained in the consolidated financial statements for periods prior to the Virgin Galactic Business Combination are presented on a separate return basis as if the Company had filed its own tax returns. The income taxes of the Company as presented in the consolidated financial statements may not be indicative of the income taxes that the Company will generate in the future. Additionally, certain tax attributes such as net operating losses or credit carryforwards are presented on a separate return basis and have been removed subsequent to the Virgin Galactic Business Combination. In jurisdictions where the Company has been included in the tax returns filed by GV, any income tax receivables resulting from the related income tax provisions have been reflected in the consolidated balance sheets within net parent investment or membership equity, as applicable. Following the Virgin Galactic Business Combination, the Company will file separate standalone tax returns as we effectively became a new and separate tax filer from GV with zero tax attributes and liabilities carrying over. The accompanying financial statements include reclassification from prior presentation as summarized below: 12/31/2018 Reclassification 12/31/2018 (In thousands) Balance Sheet Current assets Cash and cash equivalents $ 81,368 $ (7,378) $ 73,990 Restricted cash and cash equivalents — 7,378 7,378 Total current assets 119,097 — 119,097 Total assets $ 156,039 $ — $ 156,039 We reclassified to restricted cash any cash deposits received from our future astronauts that are contractually restricted for operational use until the condition of carriage is signed or deposits are refunded. These reclassifications did not have a material impact on our condensed consolidated statements of operations or cash flows. See Note 2 for further information regarding our adoption of Accounting Standards Update 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. Property, plant, and equipment, net and leasehold improvements are stated at cost, less accumulated depreciation. Depreciation on property, plant, and equipment, net is calculated on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter period of the estimated life or the lease term. The estimated useful lives of property and equipment are principally as follows: Asset Useful Life Buildings 39 years Leasehold Improvements Shorter of the estimated useful life or lease term Aircraft 20 years Machinery & equipment 5 to 7 years IT software and equipment 3 to 5 years We incur repair and maintenance costs on major equipment, which is expensed as incurred. We utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. We estimate fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which is categorized in one of the following levels: • Level 1 inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date; • Level 2 inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability; and • Level 3 inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. The carrying amounts included in the Consolidated Balance Sheets under current assets and current liabilities approximate fair value because of the short maturity of these instruments. The following tables summarize the fair value of assets that are recorded in the Company’s Consolidated Balance Sheets as of December 31, 2019 and December 31, 2018 at fair value on a recurring basis: Fair Value Measurements as of December 31, 2019 Level 1 Level 2 Level 3 (In thousands) Assets Money Market $ 423,149 $ — $ — Certificate of deposit 42,630 — — Total assets at fair value $ 465,779 $ — $ — Fair Value of Measurements as of December 31, 2018 Level 1 Level 2 Level 3 (In thousands) Assets Money Market $ 22,908 $ — $ — Certificate of deposit 24,277 — — Total asset at fair value $ 47,185 $ — $ — Spaceflight operations and other revenue is recognized for providing human spaceflights and carrying payload cargo into space. While we have yet to undertake our first commercial human spaceflight, we successfully carried multiple payloads into space in February 2019 and the year ended December 31, 2018 and recognized revenue related to these spaceflights during the years ended December 31, 2019 and 2018, respectively. No revenue was recognized for the year ended December 31, 2017. In addition, we have a sponsorship arrangement for which revenue is recognized over the sponsorship term. Engineering services revenue is recognized for providing services for the research, design, development, manufacture, integration and sustainment of advanced technology aerospace systems, products and services. We have arrangements as a subcontractor to the primary contractor of a long-term contract with the U.S. Government and perform the specified work on a time-and-materials basis subject to a guaranteed maximum price. For the year ended December 31, 2019 We recognize revenue when control of the promised service is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those services. Our spaceflight operations and other revenue contracts generally contain only one type of distinct performance obligation, carrying spaceflight payloads with delivery of the associated flight data. Revenue for each spaceflight payload is recognized at a point in time upon delivery of flight data to the customer. Revenue for future contracts for human spaceflights is expected to be recognized at a point in time upon successful completion of a spaceflight. Our engineering services revenue contract obligates us to provide services that together are one distinct performance obligation; the delivery of engineering services. The Company elected to apply the ‘as-invoiced’ practical expedient to such revenues, and as a result, will bypass estimating the variable transaction price. Revenue is recognized as control of the performance obligation is transferred over time to the customer. Disaggregation of Revenue Spaceflight operations revenue, engineering services revenue and sponsorship revenue was $0.8 million, $2.8 million, and $0.2 million for the year ended December 31, 2019, respectively. Contract Balances Contract assets are comprised of billed accounts receivable and unbilled receivables, which is the result of timing of revenue recognition, billings and cash collections. The Company records accounts receivable when it has an unconditional right to consideration. The revenue recognized in the engineering services revenue contract often exceeds the amount billed to the customer. The Company records the portion of the revenue amounts to which the Company is entitled but for which the Company has not yet been paid as an unbilled receivable. Unbilled receivables are included in accounts receivable on the Consolidated Balance Sheets and were $0.2 million as of January 1, 2019. As of December 31, 2019, there were no unbilled receivables. As of December 31, 2019, the Company has no other contract assets. Contract liabilities primarily relate to spaceflight operations and other revenue contracts and are recorded when cash payments are received or due in advance of performance. Cash payments for spaceflight services are classified as customer deposits until enforceable rights and obligations exist, when such deposits also become nonrefundable. Customer deposits become nonrefundable and are recorded as deferred revenue following the Company’s delivery of the conditions of carriage to the customer and execution of an informed consent. As of December 31, 2019, the Company has no deferred revenue. Payment terms vary by customer and type of revenue contract. It is generally expected that the period of time between payment and transfer of promised goods or services will be less than one year. In such instances, the Company has elected the practical expedient to not evaluate whether a significant financing component exists. Remaining Performance Obligations As of December 31, 2019, we have one engineering services revenue contract for which we expect to transfer all remaining promises to the customer in the fiscal year ending December 31, 2020. We do not disclose information about remaining performance obligations for (a) contracts with an original expected length of one year or less, (b) revenues recognized at the amount at which we have the right to invoice for services performed, or (c) variable consideration allocated to wholly unsatisfied performance obligations. Contract Costs The Company has not incurred any contract costs in obtaining or fulfilling its contracts. All of the Company’s revenues are related to two customers for the year ended December 31, 2019, with a single customer accounting for approximately 42% of accounts receivable as of December 31, 2019. For the years ended December 31, 2018 and 2017 We recognize revenue when delivery of our obligations to our customer has occurred, the collection of the relevant receivable is probable, persuasive evidence of an arrangement exists, and the sales price is fixed or determinable. Revenue is measured at the fair value of the consideration received excluding discounts, rebates, value added tax, and other sales taxes or duty. Cash payments for spaceflight services are classified as customer deposits until persuasive evidence of an arrangement exists, when such deposits also become nonrefundable. Customer deposits become nonrefundable and are recorded as deferred revenue following the Company’s delivery of the conditions of carriage to the customer and execution of an informed consent. Spaceflight operations revenue is recognized when delivery of the service has been completed, namely the experience of spaceflight or satellite payload flight. Cash payments for sponsorships are deferred and recognized as revenue evenly over the sponsorship term. Engineering services revenue is recognized on a time-and-materials basis for direct labor hours incurred at fixed hourly rates. Spaceflight operations revenue was $0.8 million for the year ended December 31, 2018. No spaceflight operations revenue was recognized for the year ended December 31, 2017. Engineering services revenue was $1.2 million and $1.0 million for the years ended December 31, 2018 and 2017, respectively. Sponsorship revenue was $0.8 million and $0.8 million for the years ended December 31, 2018 and 2017, respectively. As of October 25, 2019 and December 31, 2018 and for the period from January 1, 2019 through October 25, 2019 and for the years ended December 31, 2018 and 2017, we adopted the separate return approach for the purpose of presenting the combined financial statements, including the income tax provisions and the related deferred tax assets and liabilities. The historic operations of the Company reflect a separate return approach for each jurisdiction in which the Company had a presence and GV has filed tax returns for the years ended December 31, 2018 and 2017 and will file a tax return for the period from January 1, 2019 through October 25, 2019. As of December 31, 2019 and for the period from October 26, 2019 through December 31, 2019, we will file a separate stand-alone tax return. The Company records income tax expense for the anticipated tax consequences of the reported results of operations using the asset and liability method. Under this method, the Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, as well as for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. The Company records valuation allowances to reduce its deferred tax assets to the net amount that it believes is more likely than not to be realized. Its assessment considers the recognition of deferred tax assets on a jurisdictional basis. Accordingly, in assessing its future taxable income on a jurisdictional basis, the Company considers the effect of its transfer pricing policies on that income. The Company has placed a full valuation allowance against U.S. federal and state deferred tax assets since the recovery of the assets is uncertain. The Company recognizes tax benefits from uncertain tax positions only if it believes that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. As the Company expands, it will face increased complexity in determining the appropriate tax jurisdictions for revenue and expense items which may differ from that of GV. The Long Term Incentive Plan Prior to the consummation of the Virgin Galactic Business Combination, certain members of management participated in V10’s Long Term Incentive Plan (the “LTIP Plan”). The LTIP Plan’s purpose was to enhance the ability for us to attract, motivate, and retain certain of our key executives and to strengthen their commitment to us by providing additional compensation in the form of one or more bonus pools payable under the LTIP Plan in the case of a trigger event. Upon any trigger event (generally a stock sale, asset sale, public offering, or full return of capital at V10), a bonus pool was to be created where the realization value for such trigger event is greater than the base value, as defined by the LTIP Plan. The participants would then be entitled to receive their allocation of the bonus pool in cash within 60 days of the trigger event’s occurrence. In 2018, the LTIP Plan was cancelled and replaced with a multiyear cash incentive plan (the “Cash Incentive Plan”), described below. Cash Incentive Plan On June 19, 2017, the Company adopted the Cash Incentive Plan to provide cash bonuses to employees based on the attainment of three qualifying milestones with defined target dates. The maximum aggregate amount of cash awards under the Cash Incentive Plan is $30.0 million, and approved awards have been allocated equally to each milestone. Compensation cost is recognized when it is probable that a milestone will be achieved. Upon achieving each milestone by the defined target date, 50% of the cash award for that milestone will be vested and the remaining 50% will be vested upon the one year anniversary of the target date if the employee maintained employment in good standing. In the event the milestone is not achieved by the defined target date, but no later than six months after the defined target date, the milestone award would be reduced by half, of which 50% will be vested upon achieving the delayed target date and the remaining 50% will be vested upon the one year anniversary of the delayed target date if the employee maintained employment in good standing. If the milestone is not achieved by six months after the defined target date, the award attributed to that milestone would expire and the associated cash award value would be reserved for future grants under the Cash Incentive Plan. The first qualifying milestone was not achieved under the Cash Incentive Plan. The second qualifying milestone under the Company’s multiyear cash incentive plan was amended upon the closing of the Virgin Galactic Business Combination such that the participants who remained continuously employed through the closing of the Virgin Galactic Business Combination were entitled to receive 100% of the bonus that such participant would have otherwise received upon the achievement of the original second qualifying milestone, as amended. The Company recognized and settled the $9.9 million in compensation costs owed to participants for the second qualifying milestone upon the closing of the Transaction. The remaining third milestone is deemed not probable of being achieved. As such, no accrual has been recorded related to this plan as of December 31, 2019 or December 31, 2018. In the event the Company believes a payment related to the Cash Incentive Plan will become probable in the future, an accrual will be recorded at that time based on the anticipated payout. We recognize all stock-based awards to employees and directors as stock-based compensation expense based upon their fair values on the date of grant. We estimate the fair value of stock-based payment awards on the date of grant. The value of the portion of the award that is ultimately expected to vest is recognized as an expense during the requisite service periods. We have estimated the fair value for each option award as of the date of grant using the Black-Scholes option pricing model. The Black-Scholes option pricing model considers, among other factors, the expected life of the award and the expected volatility of our stock price. We recognize the stock-based compensation expense over the requisite service period using the straight-line method for service condition only awards, which is generally a vesting term of four years. Stock options typically have a contractual term of 10 years. The stock options granted have an exercise price equal to the closing stock price of our common stock on the grant date. Compensation expense for restricted stock units are based on the market price of the shares underlying the awards on the grant date. Compensation expense for performance-based awards reflects the estimated probability that the performance condition will be met. Compensation expense for awards with total stockholder return performance metrics reflects the fair value calculated using the Monte Carlo simulation model, which incorporates stock price correlation and other variables over the time horizons matching the performance periods. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASU”). The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position and results of operations. (a) Issued Accounting Standard Updates In August 2018, the FASB issued ASU 2018-13, Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement (Topic 820) , which modified the disclosure requirements on fair value measurements. ASU 2018-13 is effective for annual and interim periods in fiscal years beginning after December 15, 2019, with early adoption permitted for removed or modified disclosures. The Company is currently assessing the impact of ASU 2018-13 in its consolidated financial statements. In May 2019, the FASB issued ASU 2019-05, Financial Instruments - Credit Losses (Topic 326) . The purpose of ASU 2019-05 is to provide the option to irrevocably elect the fair value option applied on an instrument-by-instrument basis for certain financial assets upon adoption of ASU 2016-13. Adoption of ASU 2019-05 coincides with the adoption of ASU 2016-13 and will therefore be effective for interim and annual reporting periods beginning after December 15, 2019. The Company’s traded accounts receivables are within the scope of ASU 2019-05. The Company has concluded that historical data, adjusted for any current events and expected future economic factors, is the most appropriate modelling information to determine the Company’s expected credit losses. The Company is currently assessing the impact of ASU 2019-05 in its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) , which affects general principles within Topic 740, and are meant to simplify and reduce the cost of accounting for income taxes. It removes certain exceptions to the general principles in Topic 740 and simplifies areas including franchise taxes that are partially based on income, transactions with a government that result in a step up in the tax basis of goodwill, the incremental approach for intraperiod tax allocation, interim period income tax accounting for year-to-date losses that exceed anticipated losses and enacted changes in tax laws in interim periods. The changes are effective for annual periods beginning after December 15, 2020. The Company is currently assessing the impact of ASU 2019-12 in its consolidated financial statements. (b) Adopted Accounting Standard Updates Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , with subsequent amendments. The amended ASU 2016-02 requires lessees to recognize on the balance sheet a right-of-use asset, representing its right to use the underlying asset for the lease term, and a lease liability for all leases with terms greater than 12 months. Under legacy GAAP, operating leases were not recognized by a lessee in its balance sheet. In general, the asset and liability each equal the present value of lease payments. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from current GAAP. The amended ASU 2016-02 retains a distinction between finance leases (i.e., capital leases under current GAAP) and operating leases. The classification criteria for distinguishing between finance leases and operating leases will be substantially similar to the classification criteria for distinguishing between capital leases and operating leases under current GAAP. The amended ASU 2016-02 also requires qualitative and quantitative disclosures designed to assess the amount, timing, and uncertainty of cash flows arising from leases. A modified retrospective transition approach shall be used when adopting ASU 2016-02, which includes a number of optional practical expedients that entities may elect to apply. Prior to January 1, 2019, the Company accounted for leases under ASC 840, Accounting for Leases . Effective January 1, 2019, the Company adopted the guidance of ASC 842, Leases, which requires an entity to recognize a right-of-use asset ( lessee's right to use an asset over the life of a lease or “ROU”) and a lease liability for virtually all leases. The Company adopted ASC 842 under the simplified transition method, which allows companies to forgo the comparative reporting requirements initially required under the modified retrospective transition approach and apply the new guidance prospectively. The new standard provides a number of optional practical expedients in transition. The Company elected the ‘package of practical expedients’, which permitted the Company not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs; and all of the new standard’s available transition practical expedients. As a result, the comparative financial information has not been updated and the required disclosures prior to the date of adoption have not been updated and continue to be reported under the accounting standards in effect for those periods. The adoption of ASC 842 on January 1, 2019 resulted in the recognition of operating lease right-of-use assets of $16.7 million, lease liabilities for operating leases of $24.8 million, and a zero cumulative-effect adjustment to accumulated deficit. The Company elected to exclude from its balance sheets recognition of leases having a term of 12 months or less (“short-term leases”). Lease expense is recognized on a straight-line basis over the lease term. The adoption did not have a significant impact on the Consolidated Statement of Operations and Comprehensive Loss because the majority of the Company’s leases are currently classified as operating, which under the guidance will continue to be recognized as expense on a straight-line basis. The adoption, however, resulted in a significant gross-up in total assets and total liabilities on the consolidated balance sheet. The amount of the liability represents the aggregate discounted amount of the Company’s minimum lease obligations as of the reporting date. The difference between the asset and liability amounts represents deferred rent liabilities and lease incentives as of the reporting date that are netted against the asset amount. As of December 31, 2019, total future undiscounted minimum payments under our operating leases amounted to $48.8 million. Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, ASU 2014-09 requires additional disclosure around the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. On January 1, 2019, the Company adopted ASU 2014-09 and applied this guidance to those contracts which were not completed at the date of adoption using the modified retrospective method. The Company elected to not separately evaluate the effects of each contract modification before the date of initial application. The comparative information has not been restated and continues to be reported under our accounting policies in effect for those periods. The Company did not have a cumulative effect of initially applying the new revenue standard and there was no adjustment to the opening balance of net parent investment. There were also no effects on net cash provided by operating activities, net cash used in investing activities or net cash used in financing activities for the year ended December 31, 2019. Other Effective January 1, 2019, we early adopted ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows companies to reclassify from accumulated comprehensive other income to retained earnings stranded tax effects resulting from the enactment of the Tax Act. ASU 2018-02 was enacted on December 22, 2017 and requires certain disclosures about the stranded tax effects. An entity has the option of applying the new guidance at the beginning of the period of adoption or retrospectively to each period (or periods) in which the tax effects related to items remaining in accumulated other comprehensive income are recognized. The adoption of ASU 2018-02 did not have a material impact on the Company’s consolidated financial statements. Effective January 1, 2019, we adopted ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash and retrospectively for the years presented, which requires restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning and ending amounts in the statements of cash flows. The adoption of ASU 2016-18 did not have a material effect on the Company's consolidated financial statements. Effective January 1, 2019, we adopted ASU 2018-07, Stock Compensation - Nonemployee Share-Based Payments (Topic 718) , which simplifies the accounting for share-based payments to nonemployees by aligning with the accounting for share-based payments to employees, with certain exceptions. The adoption of ASU 2018-07 did not have a material effect on the Company’s consolidated financial statements. Effective January 1, 2018, we adopted ASU 2017-09, Stock Compensation – Scope of Modification Accounting (Topic 718) , which requires an entity to apply modification accounting in Topic 718 for changes to terms or conditions of a share-based payment awards. The adoption of ASU 2017-09 did not have a material effect on the Company’s consolidated financial statements. Effective January 1, 2017, we adopted ASU 2016-09, Compensation – Stock Compensation (Topic 718) , which requires an entity to recognize excess tax benefits and tax deficiencies (including tax benefits of dividends) on share-based compensation awards as income tax expense. Previously such benefits or deficiencies were recognized in the balance sheet as adjustments to additional paid-in capital. The adoption of ASU 2016-09 did not have a material impact on the Company’s consolidated financial statements. Effective January 1, 2017, we adopted ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory , which requires an entity to measure inventory at the lower of cost or net realizable value and eliminates current GAAP options for measuring market value. ASU 2015-11 defines realizable value as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The adoption of ASU 2015-11 did not have a material impact on the Company’s consolidated financial statements. |
Virgin Galactic Business Combin
Virgin Galactic Business Combination | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Virgin Galactic Business Combination | Virgin Galactic Business Combination The closing of the Virgin Galactic Business Combination occurred on October 25, 2019. In connection with the Virgin Galactic Business Combination: • Holders of 15,877,288 Class A public shares of SCH exercised their rights to redeem those shares to cash, of which 3,771,178 shares were redeemed on September 9, 2019 at a redemption price approximating $10.37 per share for an aggregate redemption of $39.1 million and 12,106,110 shares were redeemed on October 23, 2019 at a redemption price approximating $10.39 per share for an aggregate redemption of $125.7 million; • SCH filed a notice of deregistration with the Cayman Islands Registrar of Companies and concurrently filed a certificate of incorporation and a certificate of corporate domestication with the Secretary of State of the State of Delaware under the name Virgin Galactic Holdings, Inc.; • Upon the domestication, each issued and outstanding Class A ordinary share, par value $0.0001 per share, of SCH was converted, on a one-for-one basis, into one share of VGH, Inc. common stock, par value $0.0001 per share; • Upon the domestication, each issued and outstanding Class B ordinary share, par value $0.0001 per share, of SCH was converted, on a one-for-one basis, into one share of VGH, Inc. common stock; provided, however, that with respect to the 17,250,000 Class B ordinary shares of SCH held by SCH Sponsor Corp. (the "Sponsor"), the Sponsor instead received 15,750,000 shares of VGH, Inc. common stock; • VGH, Inc. issued 130,000,000 new shares of its common stock to Vieco US at a deemed value of $10.00 per share for an aggregate merger consideration of $1.3 billion in exchange for all outstanding shares of common stock or limited liability company interests, as applicable, of each of the VG Companies; • Vieco US elected for VGH, Inc. to repurchase 5,209,562 shares of VGH, Inc. common stock held by Vieco US at a price of $10.00 per share in cash for an aggregate cash consideration of $52.1 million (the “Repurchase”); • Vieco US elected for Chamath Palihapitiya, SCH's chief executive officer and member of its board of directors, to purchase 10,000,000 shares of the VGH, Inc. common stock held by Vieco US at a price of $10.00 per share in cash, of which has no impact to the cash and cash equivalents balance held by VGH, Inc. subsequent to the Virgin Galactic Business Combination or the total shares of VGH, Inc.’s common stock issued and outstanding (the “Secondary Purchase”); • VGH, Inc. settled the outstanding underwriting fees incurred by SCH in connection with the SCH initial public offering that were deferred until the closing of the Virgin Galactic Business Combination for which the final cash amount owed subsequent to all redemptions was $21.9 million and recorded as a reduction to additional paid-in capital; • VGH, Inc. settled the $30.0 million in remaining unpaid direct and incremental transaction costs incurred by SCH, V10, and the VG Companies prior to, or concurrent with, the closing of the Virgin Galactic Business Combination, of which $25.1 million was settled in cash and $4.9 million was settled by the issuance of 413,486 shares of VGH, Inc. common stock. These transaction costs were recorded as a reduction to additional paid-in capital; • An entity affiliated with The Boeing Company (“Boeing”) purchased 1,924,402 newly issued shares of VGH, Inc. common stock in exchange for aggregate consideration of $20.0 million; • The VG Companies settled the $9.9 million owed to participants of the amended cash incentive plan upon the achievement of the second qualifying milestone in connection with the closing of the Virgin Galactic Business Combination. • SCH granted 1,500,000 RSU awards to certain former members of the board of directors of SCH in connection with the Virgin Galactic Business Combination that are to be settled in VGH, Inc. common stock (the "Director RSU Awards"). The Director RSU Awards were vested upon grant and remain unsettled as the underlying shares have not been issued. Remaining funds held in the trust account of $453.0 million, before proceeds raised pursuant to the issuance of new shares to Boeing and payment by the VG Companies to settle the amounts owed under the second qualifying milestone of the Cash Incentive Plan, were released to be used for working capital and general corporate purposes. After giving effect to the redemption of the Class A public shares, the Repurchase, and the Secondary Purchase, shares of our common stock issued and outstanding immediately after the closing of the Virgin Galactic Business Combination were as follows: Shareholder No. of Shares % Ownership Vieco US 114,790,438 58.6 % VGH, Inc.'s public shareholders 53,122,712 27.1 % SCH Sponsor Corp. & related parties (including Mr. Palihapitiya) 25,750,000 13.1 % Boeing 1,924,402 1.0 % Shares issued to settle transaction costs (1) 413,486 0.2 % Total (2) 196,001,038 100.0 % ________________________________ (1) Shared were issued in November 2019 as partial consideration for advisory services rendered in connection with the Virgin Galactic Business Combination. (2) Outstanding shares of our common stock excludes the 1,500,000 shares of our common stock underlying the Director RSU Awards that were granted by SCH in connection with the Virgin Galactic Business Combination. The Director RSU Awards vested at the closing of the Virgin Galactic Business Combination but will not settle into shares of common stock until a date, selected by us, that occurs between January 1, 2020 and December 31, 2020. Transaction Costs Advisory, financing, integration and other transaction costs directly incurred by Virgin Galactic Business Combination totaled $52.9 million for the year ended December 31, 2019, including $4.9 million in stock-based compensation expense recorded for the shares issued to the financial advisors. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company licenses its brand name from certain entities affiliated with Virgin Enterprises Limited (“VEL”), a company incorporated in England. VEL is an affiliate of V10. Under the trademark license, the Company has the exclusive right to operate under the brand name “Virgin Galactic” within the United States, Australia, South Africa, and the European Union. Royalty payables, excluding sponsorship royalties, for the use of license are the greater of 1% of revenue or $0.05 million per quarter, adjusted to $0.02 million per quarter effective on the fourth quarter of 2017, prior to the commercial launch date. Sponsorship royalties payable are 25% of revenue. We paid license and royalty fees of $0.08 million, $0.09 million and $0.15 million for the years ended December 31, 2019, 2018, and 2017, respectively. As a result of the Virgin Galactic Business Combination, the Company entered into a transition services agreement ("TSA") with Virgin Orbit, LLC ("VO") and GV on October 25, 2019. Prior to the Virgin Galactic Business Combination, the VG Companies historically performed certain services for VO, V10 and GV. The Company is allocated corporate expenses from V10 and GV for corporate-related functions based on an allocation methodology that considers our headcount, unless directly attributable to the business. General corporate overhead expense allocations include tax, accounting and auditing professional fees, and certain employee benefits. From the effective date to the period ended December 31, 2019, the Company billed VO, V10 and GV for services provided under the TSA. We were allocated $1.20 million, $0.13 million and $0.13 million corporate expenses, net, from V10 and GV for the years ended December 31, 2019, 2018 and 2017, respectively. Corporate expense are included within selling, general and administrative expenses in the accompanying consolidated statements of operations. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory As of December 31, 2019 and 2018, inventory is comprised of the following: As of December 31, 2019 2018 (In thousands) Raw Materials $ 22,578 $ 20,940 Work in-progress 4,239 2,348 $ 26,817 $ 23,288 For the year ended December 31, 2019, the Company wrote down $0.3 million and there were no write downs of inventory to net realizable value for the years ended December 31, 2018 and 2017. |
Property, Plant, and Equipment,
Property, Plant, and Equipment, net | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, net | Property, Plant, and Equipment, net As of December 31, 2019 and 2018, property, plant, and equipment, net consists of the following : As of December 31, 2019 2018 (In thousands) Buildings $ 9,142 $ 9,142 Leasehold improvements 20,048 16,570 Aircraft 320 320 Machinery and equipment 33,608 22,114 IT software and equipment 17,151 13,602 Construction in progress 3,674 620 83,943 62,368 Less accumulated depreciation and amortization (34,610) (28,154) Property, plant, and equipment, net $ 49,333 $ 34,214 Total depreciation and amortization for the years ended December 31, 2019, 2018 and 2017 was $6.9 million, $5.8 million and $5.1 million, respectively, of which $3.7 million, $1.2 million and $1.4 million was recorded in research and development expense, respectively. Depreciation and amortization of assets acquired under finance leases was $0.10 million, $0.08 million and $0.08 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases We lease our offices and other facilities and certain manufacturing and office equipment under long-term, non-cancelable operating and finance leases. Some leases include options to purchase, terminate, or extend for one or more years. These options are included in the lease term when it is reasonably certain that the option will be exercised. We do not recognize ROU assets and lease liabilities for leases with terms at inception of twelve months or less. At inception, we determine if an arrangement contains a lease and whether that lease meets the classification criteria of a finance or operating lease. Some of our arrangements contain lease components (e.g., minimum rent payments) and non-lease components (e.g., services). We have elected to account for these lease and non-lease components as a single lease component. We are also electing not to apply the recognition requirements to short-term leases of twelve months or less and instead will recognize lease payments as expense on a straight-line basis over the lease term. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. The Company utilizes its incremental borrowing rate in determining the present value of lease payments unless the implicit rate is readily determinable. The Company’s incremental borrowing rate varies between 8.3% to 11.8% depending on the length of the lease. This was determined by a third-party valuation firm based on market yields. The operating lease ROU asset includes any lease payments made and excludes lease incentives. Our variable lease payments primarily consist of lease payments resulting from changes in the consumer price index. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. Our ROU assets and lease payments may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Finance leases are recorded as an asset and an obligation at an amount equal to the present value of the minimum lease payments during the lease term. Amortization expense and interest expense associated with finance leases are included in selling, general, and administrative expense and interest expense, respectively, on the consolidated statements of comprehensive loss. The following table approximates the impact that the adoption of ASC 842 had on the Company’s December 31, 2019 Consolidated Balance Sheet as impacted by landlord provided incentives and the present value of future cash flows calculation against both the asset and liability: The components of lease expense related to leases for the period are as follows: Year ended December 31, 2019 (In thousands) Lease Cost: Operating lease expense $ 4,243 Short-term lease expense 219 Finance lease cost: Amortization of right-of-use assets 98 Interest on lease liabilities 29 Total finance lease cost 127 Variable lease cost 803 Total lease cost $ 5,392 The components of supplemental cash flow information related to leases for the period are as follows: Year ended December 31, 2019 (In thousands, except term and rate data) Cash flow information: Cash paid for amounts included in the measurement of lease liabilities for the year ended December 31, 2019: Operating cash flows from operating leases $ 4,462 Operating cash flows from finance leases $ 29 Financing cash flows from finance leases $ 104 Non-cash activity: Right-of-use assets obtained in exchange for lease obligations Operating leases $ 17,658 Finance Leases $ 430 Other Information: Weighted average remaining lease term: Operating leases (in years) 13.36 Finance leases (in years) 3.96 Weighted average discount rates: Operating leases 11.77 % Finance leases 9.37 % The supplemental balance sheet information related to leases for the period is as follows: As of December 31, 2019 (In thousands) Operating leases Long-term right-of-use assets $ 16,632 Short-term operating lease liabilities $ 2,354 Long-term operating lease liabilities 21,867 Total operating lease liabilities $ 24,221 Lease expense for the years ended December 31, 2019, 2018 and 2017 was $5.3 million, $4.5 million and $3.9 million, respectively. |
Leases | Leases We lease our offices and other facilities and certain manufacturing and office equipment under long-term, non-cancelable operating and finance leases. Some leases include options to purchase, terminate, or extend for one or more years. These options are included in the lease term when it is reasonably certain that the option will be exercised. We do not recognize ROU assets and lease liabilities for leases with terms at inception of twelve months or less. At inception, we determine if an arrangement contains a lease and whether that lease meets the classification criteria of a finance or operating lease. Some of our arrangements contain lease components (e.g., minimum rent payments) and non-lease components (e.g., services). We have elected to account for these lease and non-lease components as a single lease component. We are also electing not to apply the recognition requirements to short-term leases of twelve months or less and instead will recognize lease payments as expense on a straight-line basis over the lease term. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. The Company utilizes its incremental borrowing rate in determining the present value of lease payments unless the implicit rate is readily determinable. The Company’s incremental borrowing rate varies between 8.3% to 11.8% depending on the length of the lease. This was determined by a third-party valuation firm based on market yields. The operating lease ROU asset includes any lease payments made and excludes lease incentives. Our variable lease payments primarily consist of lease payments resulting from changes in the consumer price index. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. Our ROU assets and lease payments may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Finance leases are recorded as an asset and an obligation at an amount equal to the present value of the minimum lease payments during the lease term. Amortization expense and interest expense associated with finance leases are included in selling, general, and administrative expense and interest expense, respectively, on the consolidated statements of comprehensive loss. The following table approximates the impact that the adoption of ASC 842 had on the Company’s December 31, 2019 Consolidated Balance Sheet as impacted by landlord provided incentives and the present value of future cash flows calculation against both the asset and liability: The components of lease expense related to leases for the period are as follows: Year ended December 31, 2019 (In thousands) Lease Cost: Operating lease expense $ 4,243 Short-term lease expense 219 Finance lease cost: Amortization of right-of-use assets 98 Interest on lease liabilities 29 Total finance lease cost 127 Variable lease cost 803 Total lease cost $ 5,392 The components of supplemental cash flow information related to leases for the period are as follows: Year ended December 31, 2019 (In thousands, except term and rate data) Cash flow information: Cash paid for amounts included in the measurement of lease liabilities for the year ended December 31, 2019: Operating cash flows from operating leases $ 4,462 Operating cash flows from finance leases $ 29 Financing cash flows from finance leases $ 104 Non-cash activity: Right-of-use assets obtained in exchange for lease obligations Operating leases $ 17,658 Finance Leases $ 430 Other Information: Weighted average remaining lease term: Operating leases (in years) 13.36 Finance leases (in years) 3.96 Weighted average discount rates: Operating leases 11.77 % Finance leases 9.37 % The supplemental balance sheet information related to leases for the period is as follows: As of December 31, 2019 (In thousands) Operating leases Long-term right-of-use assets $ 16,632 Short-term operating lease liabilities $ 2,354 Long-term operating lease liabilities 21,867 Total operating lease liabilities $ 24,221 Lease expense for the years ended December 31, 2019, 2018 and 2017 was $5.3 million, $4.5 million and $3.9 million, respectively. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities A summary of the components of accrued liabilities are as follows: As of December 31, 2019 2018 (In thousands) Accrued payroll $ 2,027 $ 3,386 Accrued vacation 2,797 2,717 Accrued bonus 6,502 5,828 Other accrued expenses 10,951 6,235 Total accrued liabilities $ 22,277 $ 18,166 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes As of October 25, 2019 and December 31, 2018 and for the period from January 1, 2019 through October 25, 2019 and for the years ended December 31, 2018 and 2017, we adopted the separate return approach for the purpose of presenting the combined financial statements, including the income tax provisions and the related deferred tax assets and liabilities. The historic operations of the Company reflect a separate return approach for each jurisdiction in which the Company had a presence and GV filed tax returns for the years ended December 31, 2018 and 2017, respectively. GV will file tax returns for the period from January 1, 2019 through October 25, 2019. As of December 31, 2019, and for the period from October 26, 2019 through December 31, 2019, we will file separate standalone tax returns. For the years ended December 31, 2019, 2018 and 2017, loss before income taxes are as follows: Years ended December 31, 2019 2018 2017 (In thousands) U.S. operations $ (211,405) $ (137,952) $ (138,368) Foreign operations 532 (40) 336 Loss before income taxes $ (210,873) $ (137,992) $ (138,032) Income tax expense attributable to loss from continuing operations consists of: Current Deferred Total (In thousands) Year ended December 31, 2019 U.S. operations $ — $ — $ — State and local 27 — 27 Foreign jurisdiction 50 (15) 35 $ 77 $ (15) $ 62 Year ended December 31, 2018 U.S. operations $ — $ — $ — State and local 2 — 2 Foreign jurisdiction 142 3 145 $ 144 $ 3 $ 147 Year ended December 31, 2017 U.S. operations $ — $ — $ — State and local 7 — 7 Foreign jurisdiction 130 18 148 $ 137 $ 18 $ 155 Prior to the Virgin Galactic Business Combination, the Company's income tax return was included in the consolidated U.S. Federal and state tax returns of GV. The Virgin Galactic Business Combination resulted in a separation from GV whereby the historical tax attributes including research and development tax credits, net operating loss carryforwards, income taxes payable and reserves for uncertain tax positions remain with GV. Immediately following the Virgin Galactic Business Combination, the Company effectively became a new and separate tax filer from GV with zero tax attributes and liabilities carrying over. In accordance with ASC 740-20-45-11, the Virgin Galactic Business Combination is considered a transaction among or with its shareholders requiring the tax effects to be recorded through equity. Were it not for the valuation allowance, the Company would have recorded a tax expense of $130.5 million through equity to account for the change in deferred tax assets and liabilities. Due to the offsetting decrease in the valuation allowance on the Company’s U.S. federal and state net deferred tax assets, there is a corresponding the net tax benefit of $(130.5) million resulting in zero total tax effect recorded to equity. Further, as a result of the Virgin Galactic Business Combination, the estimated purchase price consideration (“Purchase Price”) was allocated to the Company’s assets pursuant to Internal Revenue Code §1060 and related Treasury Regulations with the remaining balance of an estimated $230.5 million recorded to tax goodwill in deferred tax assets and liabilities. The estimated tax goodwill represent provisional amounts and the Company’s current best estimates. Any subsequent adjustments recorded to the provisional amounts will be recorded as adjustments to tax expense for the year ending December 31, 2020. Deferred Tax Assets and Liabilities Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and (b) operating losses and tax credit carryforwards. The Company records income tax expense for the anticipated tax consequences of the reported results of operations using the asset and liability method. Under this method, the Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, as well as for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. The Company records valuation allowances to reduce its deferred tax assets to the net amount that it believes is more likely than not to be realized. Its assessment considers the recognition of deferred tax assets on a jurisdictional basis. Accordingly, in assessing its future taxable income on a jurisdictional basis, the Company considers the effect of its transfer pricing policies on that income. The Company has placed a full valuation allowance against U.S. federal and state deferred tax assets since the recovery of the assets is uncertain. The tax effects of significant items comprising the Company’s deferred taxes are as follows: 2019 2018 (In thousands) Deferred tax assets: Net operating loss carryforwards $ 10,981 $ 177,297 Start-up costs — 97,195 Research and development 2,955 43,367 Accrued liabilities 3,402 872 Deferred rent 1,843 1,555 Deferred revenue 8 618 Plant and equipment, principally due to differences in depreciation and capitalized interest 1,254 — Goodwill 230,543 — Total gross deferred tax assets 250,986 320,904 Less valuation allowance (250,818) (317,444) Net deferred tax assets $ 168 $ 3,460 Deferred tax liabilities: Plant and equipment, principally due to differences in depreciation and capitalized interest $ — $ (3,313) Total gross deferred tax liabilities — (3,313) Net deferred tax assets $ 168 $ 147 ASC 740 requires that the tax benefit of net operating losses (“NOLs”), temporary differences and credit carryforwards be recorded as an asset to the extent that management assesses that realization is “more likely than not.” Realization of the future tax benefits is dependent on the Company’s ability to generate sufficient taxable income within the carryforward period. Management believes that recognition of the deferred tax assets arising from the above-mentioned future tax benefits from operating loss carryforwards is currently not likely to be realized and, accordingly, has provided a valuation allowance has provided a full valuation allowance against its deferred tax assets. During the year ended December 31, 2019, as a result of the Virgin Galactic Business Combination, the Company obtained an increase in the U.S. federal and state tax basis of its assets. This resulted in a significant change the Company’s deferred tax balances and valuation allowance presented in the required disclosure when comparing December 31, 2019 to December 31, 2018. The changes in valuation allowance related to current year operating activity was an increase in the amount of $65 million during the year ended December 31, 2019. The overall change in valuation allowance for the year included a $130.5 million increase recorded directly to equity related to a deferred tax adjustments recorded as a result of the Virgin Galactic Business Combination. NOLs and tax credit gross carryforwards as of December 31, 2019 are as follows: Amount Expiration Years (In thousand) NOLs, Federal $ 45,375 See notes below NOLs, State $ 20,809 See notes below Tax credits, Federal $ 1,755 See notes below Tax credits, State $ 1,200 See notes below The effective tax rate of the Company’s (provision) benefit for income taxes differs from the federal statutory rate as follows: Years Ended December 31, 2019 2018 2017 (In thousands) Statutory rate $ (44,401) 21.0 % $ (28,978) 21.0 % $ (48,311) 35.0 % Rate change 0 — % 0 — % 108,906 (78.9) % State income tax (5,867) 2.8 % (9,497) 6.9 % (7,922) 5.7 % Research & Development (8,593) 4.1 % (3,806) 2.8 % (2,367) 1.7 % Change in valuation allowance 64,515 (30.5) % 43,476 (31.5) % (51,864) 37.6 % Reduction of allocated R&D from GV (8,376) 4.0 % — — % — — % Other, net 2,784 (1.4) % (1,048) 0.8 % 1,713 (1.1) % Total 62 — % 147 — % 155 — % The total tax provision for the period January 1, 2019 through December 31, 2019 excludes the tax effects of the Virgin Galactic Business Combination which was recorded to equity. Net Operating Losses All tax attributes, including net operating losses (“NOL’s”) generated prior to the Virgin Galactic Business Combination were realized by GV. There are no subsequent changes to the ownership structure and accordingly, there are no IRC limitations to the Company’s NOL’s, and Tax Credits generated for the period from October 26, 2019 to December 31, 2019. As of December 31, 2019, the Company has approximately $45.4 million and $20.8 million of federal and state NOLs respectively. Under the new Tax Cuts and Jobs Act, all NOLs incurred after December 31, 2017 are carried forward indefinitely for federal tax purposes. California has not conformed to the indefinite carry forward period for NOLs. The NOLs begin expiring in the calendar year 2039 for state purposes. In the ordinary course of its business, the Company incurs costs that, for tax purposes, are determined to be qualified research and development ("R&D") expenditures within the meaning of IRC §41 and are, therefore, eligible for the Increasing Research Activities credit under IRC §41. The R&D tax credit carryforward as of December 31, 2019 is $1.8 million and $1.2 million for Federal and State, respectively. The R&D tax credit carryforwards begin expiring in the calendar year 2039 for federal purposes. The Company has adjusted the deferred tax assets related to Federal R&D credit carryover to account for any expiring tax credits. Uncertain Tax Positions The Company recognizes tax benefits from uncertain tax positions only if it believes that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. As the Company expands, it will face increased complexity in determining the appropriate tax jurisdictions for revenue and expense items. The Company’s policy is to adjust these reserves when facts and circumstances change, such as the closing of a tax audit or refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the income tax expense in the period in which such determination is made and could have a material impact on its financial condition and operating results. The income tax expense includes the effects of any accruals that the Company believes are appropriate, as well as the related net interest and penalties. As of December 31, 2019, the Company has total uncertain tax positions of $0.9 million of which $0.7 million is net of tax related to R&D tax credit, which is recorded as a reduction of the deferred tax asset related credit carry-forwards. No interest or penalties have been recorded related to the uncertain tax positions. A reconciliation of the beginning and ending balances of unrecognized tax benefits is as follows: Years ending December 31, 2019 2018 (In thousands) Balance at the beginning of the year $ 18,040 $ 16,984 Additions based on tax positions related to current year 3,324 1,067 Additions based on tax positions related to prior years — — Deductions based on tax positions related to prior years (9) (11) Reductions of allocated tax attributes from GV (20,450) — Balance at the end of year $ 905 $ 18,040 The U.S. federal and state unrecognized tax benefits through October 25, 2019 were calculated under the separate return method and relieved as a result of the Virgin Galactic Business Combination. Accordingly, the tabular rollforward reflects other reductions for the unrecognized tax benefits accrued up to the date of the Virgin Galactic Business Combination. The ending unrecognized tax benefits at December 31, 2019 are for the expected tax positions taken during the period from October 26, 2019 through December 31, 2019. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Preferred and Common Stock The total number of shares of all classes of capital stock which we have authority to issue is 710,000,000 of which 700,000,000 are common stock, par value $0.0001 per share, and 10,000,000 are preferred stock par value $0.0001 per share. The designations and the powers, privileges and rights, and the qualifications, limitations or restrictions thereof in respect to each of our class of capital stock are as follows: (a) Preferred Stock - Subject to the stockholders’ agreement entered in connection with the Virgin Galactic Business Combination, the Company's Board of Directors (the "Board") is expressly granted authority to issue shares of the preferred stock, in one or more series, and to fix for each such series such voting powers, full or limited, or no voting powers, and such designations, preferences and relative participating, optional or other special rights and such qualifications, limitations or restrictions thereof, including without limitation thereof, dividend rights, conversion rights, redemption privileges and liquidation preferences, as shall be stated and expressed in the resolution or resolutions adopted by the Board providing for the issue of such series all to the fullest extent now or hereafter permitted by Delaware Law. (b) Common Stock - Each holder of common stock is entitled to one vote for each share of common stock held by such holder. The holders of common stock are entitled to the payment of dividends when and as declared by the Board in accordance with applicable law and to receive other distributions from the Company. Any dividends declared by the Board to the holders of the then outstanding shares of common stock will be paid to the holders thereof pro rata in accordance with the number of shares of common stock held by each such holder as of the record date of such dividend. In the event of any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, the funds and assets of the Company that may be legally distributed to the Company’s stockholders will be distributed among the holders of the then outstanding shares of Common Stock pro rata in accordance with the number of shares of common stock held by each such holder. The foregoing rights of the holders of the common stock are subject to and qualified by the rights of, the holders of the preferred stock of any series as may be designated by the Board upon any issuance of the preferred stock of any series. Warrants In SCH's initial public offering, each unit sold at a price of $10.00 per unit consisted of one Class A ordinary share and one-third of one warrant (each whole warrant, a “SCH Public Warrant”). In connection with the Virgin Galactic Business Combination, upon Domestication, each then issued and outstanding redeemable SCH Public Warrant (including SCH Public Warrants that were part of SCH's outstanding units at the time of the Virgin Galactic Business Combination) converted automatically into a redeemable warrant (the "VGH, Inc. Public Warrants). Each VGH, Inc. Public Warrant entitles the holder to purchase one ordinary share of VGH, Inc. common stock at a price of $11.50 per share and were exerciseable as of December 31, 2019. Unless earlier redeemed, the VGH, Inc. Public Warrants will expire five years from the completion of the Virgin Galactic Business Combination. The Company may redeem the outstanding VGH, Inc. Public Warrants at a price of $0.01 per VGH, Inc. Public Warrant upon a minimum of 30 days’ prior written notice of redemption, and only in the event that the last sale price of the Company's common stock is at least $18.00 per share for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which notice of redemption is given. If the Company redeems the VGH, Inc. Public Warrants as described above, it will have the option to require all holders that wish to exercise their VGH, Inc. Public Warrants to do so on a “cashless basis.” As of December 31, 2019, there were 22,999,977 outstanding VGH, Inc. Public Warrants (including VGH, Inc. Public Warrants that were part of VGH, Inc.'s then outstanding units). The Warrant Agreement relating to the VGH, Inc. Public Warrants also obligates the Company to use its best efforts to file with the Securities and Exchange Commission a registration statement for the registration, under the Securities Act of 1933, as amended (the “Securities Act”), of the issuance of the shares of VGH, Inc. common stock issuable upon exercise of the VGH, Inc. Public Warrants, and to cause the same to become effective and remain effective while the VGH, Inc. Public Warrants remain outstanding. On January 27, 2020, by the terms of the Warrant Agreement and on account of no such registration statement being effective, the holders of the VGH, Inc. Public Warrants became entitled to exercise their VGH, Inc. Public Warrants on a cashless basis for so long as such an effective registration statement is not available. Simultaneously with the consummation of the initial public offering of SCH, the Sponsor purchased 8,000,000 warrants to purchase one SCH Class A ordinary share at an exercise price of $11.50 (the “SCH Private Placement Warrants”) at a price of $1.50 per warrant, or $12.0 million in the aggregate, in a private placement. In connection with the Virgin Galactic Business Combination, upon the domestication, each of the then-outstanding SCH Private Placement Warrants converted automatically into a warrant to acquire one share of VGH, Inc. common stock pursuant to the Warrant Agreement (the “VGH Private Placement Warrants”). Each VGH Private Placement Warrant entitles the holder to purchase one ordinary share of VGH, Inc. common stock for $11.50 per share. The VGH Private Placement Warrants are identical to the VGH, Inc. Public Warrants except that the SCH Private Placement Warrants are not redeemable by VGH, Inc., and may be exercised for cash or on a cashless basis so long as they are held by the Sponsor or any of its permitted transferees. Additionally, pursuant to the terms of the amended and restated registration rights agreement entered in connection with the consummation of the Virgin Galactic Business Combination, the Sponsor has the right to have the resale of such shares of VGH, Inc. common stock acquired upon exercise of the VGH Private Placement Warrants registered under the Securities Act of 1933, as amended. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents net loss per share and related information: Years Ended December 31, 2019 2018 2017 (in thousands, except for per share data) Basic and diluted: Net loss $ (210,935) $ (138,139) $ (138,187) Weighted average common shares outstanding 194,378,154 193,663,150 193,663,150 Basic and diluted net loss per share $ (1.09) $ (0.71) $ (0.71) Earnings per share calculations for all periods prior to the Virgin Galactic Business Combination have been retrospectively adjusted for the equivalent number of shares outstanding immediately after the Virgin Galactic Business Combination to effect the reverse recapitalization. Subsequent to the Virgin Galactic Business Combination, earnings per share will be calculated based on the weighted average number of common stock then outstanding. Basic and dilutive net loss per share is computed by dividing the net loss for the period by the weighted average number of common stock outstanding during the period. The weighted average shares of common stock outstanding is based on the 193,663,150 shares of common stock outstanding immediately after the reverse recapitalization in connection with Virgin Galactic Business Combination and assumes these shares have been outstanding as of the beginning of the earliest period presented. The weighted average shares of common stock outstanding also reflects as of the closing date of the Virgin Galactic Business Combination the issuance of 1,924,402 shares to Boeing, the issuance of 413,486 shares to settle transaction costs and the common stock equivalent of the vested 1,500,000 Director RSU Awards granted in connection to the Virgin Galactic Business Combination that remain unsettled as of December 31, 2019. For the years ended December 31, 2019, 2018 and 2017, the Company has excluded the potential effect of warrants to purchase shares of common stock totaling 30,999,977 shares and the dilutive effect of outstanding stock options and unvested restricted stock units, as described in Note 13, in the calculation of diluted loss per share, as the effect would be anti-dilutive due to losses incurred. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation 2014 Stock Plan Prior to the Virgin Galactic Business Combination, the Company maintained a stock-based compensation plan (the "2014 Plan") at the V10 level. The 2014 Stock Plan provided for grants of nonqualified stock options for employees. The exercise price was determined based on invested capital at the time of the grant, and escalates by an 8% hurdle rate on an annual basis. The exercisability of these options was based on time and performance vesting conditions. Performance vesting was defined as change in control, defined as greater than 50% at V10 or an initial public offering at the V10, provided such change in control or initial public offering at V10, occurred on or before the seventh anniversary of the applicable grant date. In the event that the performance vesting condition were satisfied prior to the full satisfaction of the time vesting condition, the option would have continued to vest and become exercisable in accordance with the vesting schedule unless the compensation committee approved to fully vest these options. On October 25, 2019, the 2014 Stock Plan was canceled and was replaced with the 2019 Incentive Award Plan (the "2019 Plan"). As the performance conditions set forth in the 2014 Plan were not probable of being met, no stock-based compensation expense was recognized for the period from January 1, 2019 through October 25, 2019 or the years December 31, 2018, and 2017. No options were exercisable for the period from January 1, 2019 through October 25, 2019 or the years ended December 31, 2018 or 2017. Options outstanding Shares Number of Weighted- Weighted- Balances as of December 31, 2016 1,775,660 840,525 $ 7.50 5.14 Authorized — — Granted (167,750) 167,750 8.66 Forfeited 750 (750) 9.66 Balances as of December 31, 2017 1,608,660 1,007,525 $ 7.69 4.50 Authorized — — Granted (1,000) 1,000 9.44 Forfeited 134,125 (134,125) 7.72 Balances as of December 31, 2018 1,741,785 874,400 $ 7.70 3.53 Authorized — — Granted — — $ — Forfeited 154,775 (154,775) $ 7.68 Cancelled (1,896,560) (719,625) $ 7.70 Balances as of October 25, 2019 — — $ — 0 2019 Plan The Board and stockholders of the Company adopted the 2019 Plan in connection with the Virgin Galactic Business Combination. Pursuant to the 2019 Plan, up to 21,208,755 shares of common stock have been reserved for issuance, upon exercise of awards made to employees, directors and other service providers. The Company made a grant of stock options to certain employees in connection with the consummation of the Virgin Galactic Business Combination. Twenty five percent of such stock options cliff vest at the grant date first anniversary and will ratably vest monthly over the next three years, subject to continued employment on each vesting date. Vested options will be exercisable at any time until ten years from the grant date, subject to earlier expiration under certain terminations of service and other conditions. The stock options granted have an exercise price equal to the closing stock price of our common stock on the grant date. The following table sets forth the summary of options activity under the Plans (dollars in thousands except per share data): Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (1) Options outstanding at December 31, 2018 — $ — 0 — Granted 6,212,609 $ 11.58 Exercised — $ — Forfeited options (90,565) $ 11.79 Options outstanding at December 31, 2019 6,122,044 $ 11.58 9.83 — Options exercisable at December 31, 2019 — $ — 9.83 — __________________ (1) Aggregate intrinsic value is calculated based on the difference between our closing stock price at year end and the exercise price, multiplied by the number of in-the-money options and represents the pre-tax amount that would have been received by the option holders, had they all exercised all their options on the fiscal year end date. For the year ended December 31, 2019, we recorded $1.9 million of stock-based compensation expense of which $1.2 million and $0.7 million was included in selling, general and administrative expenses and research and development, respectively. At December 31, 2019, the unrecognized stock-based compensation related to these options was $44.8 million and is expected to be recognized over a weighted-average period of 3.8 years. Restricted Stock Units For the year ended December 31, 2019, we granted 1,795,209 RSUs to employees. The RSUs vest over four years with 25% cliff vest at the first year anniversary of the grant date and ratably over the next three years and granted that the Company's share price value is greater than $10 per share at the time RSUs vest. Stock-based compensation expense for the RSUs is recognized on a straight-line basis using the Monte Carlo valuation method for the RSUs granted to employees. For the year ended December 31, 2019, we recorded $0.5 million of RSU expense of which $0.3 million and $0.2 million was included in selling, general and administrative expenses and research & development, respectively. At December 31, 2019, the unrecognized stock-based compensation related to RSUs was $12.0 million and is expected to be recognized over a weighted-average period of 3.8 years. RSU activity during the year ended December 31, 2019 was as follows: Shares Weighted Average Fair Value Outstanding at January 1, 2019 — $ — Granted 1,795,209 7.11 Vested — — Forfeited (27,495) 7.11 Outstanding at December 31, 2019 1,767,714 $ 7.11 Fair value of our RSUs is based on our closing stock price on the date of grant. The weighted average grant date fair value of RSUs that were granted during the year ended December 31, 2019 was $12.8 million. The weighted average grant date fair value RSUs granted during the year ended December 31, 2019 was $7.11. Stock-Based Compensation We use the Black-Scholes option pricing model to determine the fair value of stock options. The determination of the fair value of stock-based payment awards on the date of grant using an option-pricing model is affected by our stock price as well as assumptions regarding complex and subjective variables. These variables include the expected stock price volatility over the term of the awards, risk-free interest rate and expected dividends. We estimated expected volatility based on historical data of the price of our common stock over the expected term of the options. The expected term, which represents the period of time that options granted are expected to be outstanding, is estimated based on guidelines provided in U.S. SEC Staff Accounting Bulletin No. 110 and represents the average of the vesting tranches and contractual terms. The risk-free rate assumed in valuing the options is based on the U.S. Treasury rate in effect at the time of grant for the expected term of the option. We do not anticipate paying any cash dividends in the foreseeable future and, therefore, used an expected dividend yield of zero in the option pricing model. Stock-based compensation awards are amortized on a straight-line basis over a four The weighted average assumptions used to value the option grants are as follows: 2019 Expected life (in years) 6.0 Volatility 75.0 % Risk free interest rate 1.7 % Dividend yield — % The weighted average fair value per option at the grant date for options issued during the year ended December 31, 2019 was $7.63. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies (a) Leases The Company has certain noncancelable operating leases primarily for its premises. These leases generally contain renewal options for periods ranging from 3 to 20 years and require the Company to pay all executory costs, such as maintenance and insurance. Certain lease arrangements have rent free periods or escalating payment provisions, and we recognize rent expense of such arrangements on a straight line basis. Future minimum lease payments under noncancelable operating leases (with initial or remaining lease terms in excess of one year) and future minimum finance lease payments as of December 31, 2019 are as follows: Operating Leases Finance (In thousands) Year ending December 31: 2020 $ 5,006 $ 57 2021 4,093 117 2022 3,269 102 2023 3,226 82 2024 3,226 34 Thereafter 30,000 — Total lease payments $ 48,820 $ 392 Less: Imputed interest/present value discount (24,599) $ (71) Present value of lease liabilities $ 24,221 $ 321 As of December 31, 2018, our contractual obligations for future minimum lease payments with initial or remaining noncancelable lease terms in excess of one year are as follows: Payments Due by Periods (In thousands) < 1 year 4,072 1-3 years 7,772 3-5 years 7,310 > 5 years 32,339 Total 51,493 (b) Legal Proceedings From time to time, the Company is a party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of business. The Company applies accounting for contingencies to determine when and how much to accrue for and disclose related to legal and other contingencies. Accordingly, the Company discloses contingencies deemed to be reasonably possible and accrues loss contingencies when, in consultation with legal advisors, it is concluded that a loss is probable and reasonably estimable. Although the ultimate aggregate amount of monetary liability or financial impact with respect to these matters is subject to many uncertainties and is therefore not predictable with assurance, management believes that any monetary liability or financial impact to the Company from these matters, individually and in the aggregate, beyond that provided at December 31, 2019, would not be material to the Company’s financial position, results of operations or cash flows. However, there can be no assurance with respect to such result, and monetary liability or financial impact to the Company from legal proceedings, lawsuits and other claims could differ materially from those projected. In September 2018, Ali Sarraf, a former contractor employed through a third party staffing agency, alleged on behalf of himself and other aggrieved employees that the Company and the staffing agency, purportedly violated California state wage and hour laws. The Company has and continues to deny Sarraf’s allegations and defend against their claims vigorously with what the Company believes to be substantial and meritorious defenses. Plaintiffs are seeking unspecified damages. For the year ended December 31, 2018, the Company received $28.0 million from a legal settlement received from one of its suppliers, which was recorded in other income in the consolidated statements of operations and comprehensive loss for the year ended December 31, 2018. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit PlanThe Company has defined contribution plans, under which the Company pays fixed contributions into a separate entity, and additional contributions to the plans are based upon a percentage of the employees’ elected contributions. The Company will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution plans are recognized within selling, general, and administrative expenses and research and development in the consolidated statements of operations and comprehensive loss, as incurred. Defined contributions were $4.1 million, $3.6 million and $2.7 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Years ended December 31, 2019 2018 2017 (In thousands) Supplemental disclosure Cash payments for: Income tax paid $ 226 $ 176 $ 350 $ 226 $ 176 $ 350 Schedule for noncash operating activities Adoption of ASC 842 leases - Operating leases $ 17,658 $ — $ — $ 17,658 $ — $ — Schedule for noncash investing activities Unpaid property, plant, and equipment received $ 2,571 $ 1,288 $ 602 $ 2,571 $ 1,288 $ 602 Schedule for noncash financing activities Conversion of VGH, LLC membership units to VGH, Inc. common stock $ 114,648 $ — $ — Unpaid transaction costs $ 4,875 $ — $ — Adoption of ASC 842 leases - Finance leases 430 — — $ 119,953 $ — $ — |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (unaudited) | Quarterly Financial Data (unaudited) Summarized unaudited quarterly financial data for quarters ended March 31, 2018 through December 31, 2019 is as follows: Quarters Ended: March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 (In thousands, except for per share data) Net sales $ 1,782 $ 638 $ 832 $ 529 Gross profit $ 776 $ 360 $ 426 $ 215 Net loss $ (42,593) $ (44,068) $ (51,475) $ (72,799) Basic net loss per share 1 $ (0.22) $ (0.23) $ (0.27) $ (0.37) Diluted net loss per share 1 $ (0.22) $ (0.23) $ (0.27) $ (0.37) Quarters Ended: March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 (In thousands, except for per share data) Net sales $ 507 $ 669 $ 386 $ 1,287 Gross profit $ 312 $ 545 $ 318 $ 473 Net loss $ (40,562) $ (12,676) $ (39,184) $ (45,717) Basic net loss per share 1 $ (0.21) $ (0.07) $ (0.20) $ (0.24) Diluted net loss per share 1 $ (0.21) $ (0.07) $ (0.20) $ (0.24) ________________________________ 1 Net loss per share calculations for the quarters ended March 31, 2018 through September 30, 2019 are based on the weighted average basic and diluted shares totaling 193,663,150. Net loss per share calculations for the quarter ended December 31, 2019 are based on the weighted average basic and diluted shares of 194,378,154. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Virgin Galactic Business Combination and Basis of Presentation | Virgin Galactic Business Combination and Basis of Presentation The Virgin Galactic Business Combination was accounted for as a reverse recapitalization. Under this method of accounting, SCH has been treated as the acquired company for financial reporting purposes. This determination was primarily based on current shareholders of the VG Companies having a relative majority of the voting power of the combined entity, the operations of the VG Companies prior to the acquisition comprising the only ongoing operations of the combined entity, and senior management of the VG Companies comprising the majority of the senior management of the combined entity. Accordingly, for accounting purposes, the financial statements of the combined entity represent a continuation of the financial statements of the VG Companies with the acquisition being treated as the equivalent of the VG Companies issuing stock for the net assets of SCH, accompanied by a recapitalization. The net assets of SCH were recognized as of the date of the Virgin Galactic Business Combination at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the Virgin Galactic Business Combination in these financial statements are those of the VG Companies and the accumulated deficit of VG Companies has been carried forward after the Virgin Galactic Business Combination. Earnings per share calculations for all periods prior to the Virgin Galactic Business Combination have been retrospectively adjusted for the equivalent number of shares outstanding immediately after the Virgin Galactic Business Combination to effect the reverse acquisition. These consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). All intercompany transactions and balances between the various legal entities comprising the Company have been eliminated in consolidation. Prior to the Virgin Galactic Business Combination, these consolidated financial statements have been derived from the historical consolidated financial statements of V10 and include assets, liabilities, revenues and expenses directly attributable to our operations and allocations of corporate expenses from the V10 and GV for providing certain corporate functions, which included, but are not limited to, general corporate expenses related to finance, legal, compliance, facilities, and employee benefits. Following the Virgin Galactic Business Combination, these consolidated financial statements represent the stand-alone activity of the Company. Prior to the Virgin Galactic Business Combination, corporate expenses were allocated to us from V10 and GV on the basis of direct usage when identifiable or on the basis of headcount. The Company, V10 and GV each consider the basis on which the expenses have been allocated to be a reasonable reflection of the utilization of services provided to or the benefit received by the Company. Following the Virgin Galactic Business Combination, the Company expects to incur additional expenses as a stand-alone company. It is not practicable to estimate actual costs that would have been incurred had the Company been a stand-alone company during the periods presented prior to the Virgin Galactic Business Combination. Actual costs that may have been incurred if the Company had been a stand-alone company would depend on a number of factors, including the chosen organizational structure, what functions were outsourced or performed by employees and strategic decisions made in areas such as information technology and infrastructure. The historical consolidated financial statements prior to the Virgin Galactic Business Combination do not reflect any attribution of debt or allocation of interest expense. Following the Virgin Galactic Business Combination, we perform these corporate functions using our own resources or purchased services. We have entered into a transition service agreement with V10 in connection with the separation, many of which are expected to have terms longer than one year. Prior to the Virgin Galactic Business Combination, the Company was historically funded as part of our V10 and GV’s treasury program. Cash and cash equivalents were managed through bank accounts legally owned by us, V10 and GV. Accordingly, cash and cash equivalents held by our V10 and GV at the corporate level were not attributable to us for any of the periods presented. Only cash amounts legally owned by entities dedicated to the Company are reflected in the condensed consolidated balance sheets. Transfers of cash, both to and from V10 and GV’s treasury program by us or related parties, are reflected as a component of net parent investment or membership equity in the consolidated balance sheets and as a financing activity on the accompanying consolidated statements of cash flows. Prior to the Virgin Galactic Business Combination, as the various entities that make up the Company were not historically held by a single legal entity prior to the contribution of the VG Companies into VGH, LLC on July 8, 2019, total net parent investment is shown in lieu of equity in the consolidated financial statements as of the applicable historical periods. Balances between us, V10 and GV that were not historically cash settled are included in net parent investment. Net parent investment represents V10’s interest in the recorded assets of us and represents the cumulative investment by V10 in us through July 8, 2019, inclusive of operating results. Prior to the Virgin Galactic Business Combination, certain of our employees historically participated in V10’s stock-based compensation plans in the form of options issued pursuant to V10's plan. The performance conditions set forth in V10 stock-based compensation plans resulted in no stock-based compensation expense recognized during all periods presented prior to consummation of the Virgin Galactic Business Combination. Prior to the Virgin Galactic Business Combination, the operations of the Company were included in the consolidated U.S. federal, and certain state and local and foreign income tax returns filed by GV, where applicable. Income tax expense and other income tax related information contained in the consolidated financial statements for periods prior to the Virgin Galactic Business Combination are presented on a separate return basis as if the Company had filed its own tax returns. The income taxes of the Company as presented in the consolidated financial statements may not be indicative of the income taxes that the Company will generate in the future. Additionally, certain tax attributes such as net operating losses or credit carryforwards are presented on a separate return basis and have been removed subsequent to the Virgin Galactic Business Combination. In jurisdictions where the Company has been included in the tax returns filed by GV, any income tax receivables resulting from the related income tax provisions have been reflected in the consolidated balance sheets within net parent investment or membership equity, as applicable. Following the Virgin Galactic Business Combination, the Company will file separate standalone tax returns as we effectively became a new and separate tax filer from GV with zero tax attributes and liabilities carrying over. |
Use of Estimates | Use of EstimatesThe preparation of the consolidated financial statements in conformity with GAAP required us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We base these estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates. Significant estimates inherent in the preparation of the consolidated financial statements include, but are not limited to, accounting for cost of revenue, useful lives of property, plant and equipment, net, accrued liabilities, income taxes including deferred tax assets and liabilities and impairment valuation, stock-based awards and contingencies. |
Cash and Cash Equivalents | Cash and Cash EquivalentsThe Company's cash consists of cash on hand and, for periods prior to the consummation of the Virgin Galactic Business Combination, was not swept to a centralized cash pool, or maintained, operated, or legally owned by V10 and GV. We consider all highly liquid investments with an original maturity of three months or less, when acquired, to be cash equivalents. |
Restricted Cash | Restricted CashWe classify as restricted cash any cash deposits received from our future astronauts, that are contractually restricted for operational use until the condition of carriage is signed or the deposits are refunded. |
Accounts Receivable | Accounts ReceivableAccounts receivable are recorded at the invoiced amount and unbilled receivable, less an allowance for any potential expected uncollectible amounts and do not bear interest. The Company estimates allowance for doubtful accounts based on historical losses, the age of the receivable balance, credit quality of our customers, current economic conditions, and other factors that may affect the customers’ ability to pay. There was no allowance for uncollectible amounts as of December 31, 2019 and 2018, respectively, and no write-offs for the years ended December 31, 2019, 2018 and 2017, respectively. The Company does not have any off balance sheet credit exposure related to its customers. |
Inventory | InventoryInventories consist of raw materials expected to be used for the development of the human spaceflight program and customer specific contracts. Inventories are stated at the lower of cost or net realizable value. If events or changes in circumstances indicate that the utility of our inventories have diminished through damage, deterioration, obsolescence, changes in price or other causes, a loss is recognized in the period in which it occurs. We capitalize labor, material, subcontractor and overhead costs as work-in-process for contracts where control has not yet passed to the customer or been consumed by development activities. In addition, we capitalize costs incurred to fulfill a contract in inventories in advance of a contract award as work-in-process if we determine that the contract award is probable. The Company determines the costs of other product and supply inventories by using the first-in first-out or average cost methods. |
Prepayments And Other Current Assets | Prepayments and Other Current AssetsPrepayments consist of prepaid rent, prepaid insurance, and other general prepayments. |
Property, Plant, and Equipment, net | Property, Plant, and Equipment, net Property, plant, and equipment, net and leasehold improvements are stated at cost, less accumulated depreciation. Depreciation on property, plant, and equipment, net is calculated on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter period of the estimated life or the lease term. The estimated useful lives of property and equipment are principally as follows: Asset Useful Life Buildings 39 years Leasehold Improvements Shorter of the estimated useful life or lease term Aircraft 20 years Machinery & equipment 5 to 7 years IT software and equipment 3 to 5 years We incur repair and maintenance costs on major equipment, which is expensed as incurred. |
Leases | LeasesThe Company determines whether an arrangement contains a lease at inception. A lease is a contract that provides the right to control an identified asset for a period of time in exchange for consideration. For identified leases, the Company determines whether it should be classified as an operating or finance lease. Operating leases are recorded in the balance sheet as: right-of-use asset (“ROU asset”) and operating lease obligation. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at the commencement date of the lease and measured based on the present value of lease payments over the lease term. The ROU asset also includes deferred rent liabilities. The Company’s lease arrangements generally do not provide an implicit interest rate. As a result, in such situations the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option in the measurement of its ROU assets and liabilities. Lease expense for operating leases is recognized on a straight-line basis over the lease term. The Company has some lease agreements with lease and non-lease components, which are accounted for as a single lease component. |
Capitalized Software | Capitalized SoftwareWe capitalize certain costs associated with the development or purchase of internal-use software. The amounts capitalized are included in property, plant, and equipment, net on the accompanying consolidated balance sheets and are amortized on a straight-line basis over the estimated useful life of the resulting software, which approximates 3 years. As of December 31, 2019 and 2018, net capitalized software, totaled $2.4 million and $1.3 million, including accumulated amortization of $5.3 million and $5.0 million, respectively. No amortization expense is recorded until the software is ready for its intended use. |
Long-Lived Assets | Long-Lived AssetsLong-lived assets primarily consist of property, plant, and equipment, net and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset to be tested for possible impairment, we first compare undiscounted cash flows expected to be generated by that asset group to its carrying amount. We assess impairment for asset groups, which represent a combination of assets that produce distinguishable cash flows. If the carrying amount of the asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. |
Other Noncurrent Assets | Other Noncurrent AssetsOther noncurrent assets consist primarily of deposits. |
Fair Value Measurements | Fair Value Measurements We utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. We estimate fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which is categorized in one of the following levels: • Level 1 inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date; • Level 2 inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability; and • Level 3 inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. |
Segments | SegmentsOperating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s CODM is its Chief Executive Officer. The Company has determined that it operates in one operating segment and one reportable segment, as the CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. |
Comprehensive Loss | Comprehensive LossComprehensive loss generally represents all changes in equity other than transactions with owners. Our comprehensive loss consists of net loss and foreign currency translation adjustments. |
Revenue Recognition | Revenue Recognition Spaceflight operations and other revenue is recognized for providing human spaceflights and carrying payload cargo into space. While we have yet to undertake our first commercial human spaceflight, we successfully carried multiple payloads into space in February 2019 and the year ended December 31, 2018 and recognized revenue related to these spaceflights during the years ended December 31, 2019 and 2018, respectively. No revenue was recognized for the year ended December 31, 2017. In addition, we have a sponsorship arrangement for which revenue is recognized over the sponsorship term. Engineering services revenue is recognized for providing services for the research, design, development, manufacture, integration and sustainment of advanced technology aerospace systems, products and services. We have arrangements as a subcontractor to the primary contractor of a long-term contract with the U.S. Government and perform the specified work on a time-and-materials basis subject to a guaranteed maximum price. For the year ended December 31, 2019 We recognize revenue when control of the promised service is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those services. Our spaceflight operations and other revenue contracts generally contain only one type of distinct performance obligation, carrying spaceflight payloads with delivery of the associated flight data. Revenue for each spaceflight payload is recognized at a point in time upon delivery of flight data to the customer. Revenue for future contracts for human spaceflights is expected to be recognized at a point in time upon successful completion of a spaceflight. Our engineering services revenue contract obligates us to provide services that together are one distinct performance obligation; the delivery of engineering services. The Company elected to apply the ‘as-invoiced’ practical expedient to such revenues, and as a result, will bypass estimating the variable transaction price. Revenue is recognized as control of the performance obligation is transferred over time to the customer. Disaggregation of Revenue Spaceflight operations revenue, engineering services revenue and sponsorship revenue was $0.8 million, $2.8 million, and $0.2 million for the year ended December 31, 2019, respectively. Contract Balances Contract assets are comprised of billed accounts receivable and unbilled receivables, which is the result of timing of revenue recognition, billings and cash collections. The Company records accounts receivable when it has an unconditional right to consideration. The revenue recognized in the engineering services revenue contract often exceeds the amount billed to the customer. The Company records the portion of the revenue amounts to which the Company is entitled but for which the Company has not yet been paid as an unbilled receivable. Unbilled receivables are included in accounts receivable on the Consolidated Balance Sheets and were $0.2 million as of January 1, 2019. As of December 31, 2019, there were no unbilled receivables. As of December 31, 2019, the Company has no other contract assets. Contract liabilities primarily relate to spaceflight operations and other revenue contracts and are recorded when cash payments are received or due in advance of performance. Cash payments for spaceflight services are classified as customer deposits until enforceable rights and obligations exist, when such deposits also become nonrefundable. Customer deposits become nonrefundable and are recorded as deferred revenue following the Company’s delivery of the conditions of carriage to the customer and execution of an informed consent. As of December 31, 2019, the Company has no deferred revenue. Payment terms vary by customer and type of revenue contract. It is generally expected that the period of time between payment and transfer of promised goods or services will be less than one year. In such instances, the Company has elected the practical expedient to not evaluate whether a significant financing component exists. Remaining Performance Obligations As of December 31, 2019, we have one engineering services revenue contract for which we expect to transfer all remaining promises to the customer in the fiscal year ending December 31, 2020. We do not disclose information about remaining performance obligations for (a) contracts with an original expected length of one year or less, (b) revenues recognized at the amount at which we have the right to invoice for services performed, or (c) variable consideration allocated to wholly unsatisfied performance obligations. Contract Costs The Company has not incurred any contract costs in obtaining or fulfilling its contracts. All of the Company’s revenues are related to two customers for the year ended December 31, 2019, with a single customer accounting for approximately 42% of accounts receivable as of December 31, 2019. For the years ended December 31, 2018 and 2017 We recognize revenue when delivery of our obligations to our customer has occurred, the collection of the relevant receivable is probable, persuasive evidence of an arrangement exists, and the sales price is fixed or determinable. Revenue is measured at the fair value of the consideration received excluding discounts, rebates, value added tax, and other sales taxes or duty. Cash payments for spaceflight services are classified as customer deposits until persuasive evidence of an arrangement exists, when such deposits also become nonrefundable. Customer deposits become nonrefundable and are recorded as deferred revenue following the Company’s delivery of the conditions of carriage to the customer and execution of an informed consent. Spaceflight operations revenue is recognized when delivery of the service has been completed, namely the experience of spaceflight or satellite payload flight. Cash payments for sponsorships are deferred and recognized as revenue evenly over the sponsorship term. Engineering services revenue is recognized on a time-and-materials basis for direct labor hours incurred at fixed hourly rates. |
Cost of Revenue | Cost of RevenueCosts of revenue related to spaceflights include costs related to the consumption of a rocket motor, fuel, payroll and benefits for our pilots and ground crew, and maintenance. Costs of revenue related to the engineering services consist of expenses related to materials and human capital, such as payroll and benefits. Once technological feasibility is reached, we will capitalize the cost to construct any additional spaceship vehicles. Costs of revenue will include spaceship vehicle depreciation once those spaceship vehicles are placed into service. |
Selling, General and Administrative | Selling, General and AdministrativeSelling, general and administrative expenses consist of human capital related expenses for employees involved in general corporate functions, including executive management and administration, accounting, finance, tax, legal, information technology, marketing and human resources; depreciation expense and rent relating to facilities, including the lease with Spaceport America, and equipment; professional fees and other general corporate costs. Human capital expenses primarily include salaries and benefits. |
Research and Development | Research & DevelopmentWe conduct research and development (“R&D”) activities to develop existing and future technologies that advance our spaceflight system towards commercialization. R&D activities include basic research, applied research, concept formulation studies, design, development, and related test program activities. Costs incurred for developing our spaceflight system and flight profiles primarily include equipment, material, and labor hours. Costs incurred for performing test flights primarily include rocket motors, fuel, and payroll and benefits for pilots and ground crew. R&D costs also include rent, maintenance, and depreciation of facilities and equipment and other allocated overhead expenses. We expense all R&D costs as incurred and have not capitalized any spaceship vehicle development costs to date. |
Income Taxes | Income Taxes As of October 25, 2019 and December 31, 2018 and for the period from January 1, 2019 through October 25, 2019 and for the years ended December 31, 2018 and 2017, we adopted the separate return approach for the purpose of presenting the combined financial statements, including the income tax provisions and the related deferred tax assets and liabilities. The historic operations of the Company reflect a separate return approach for each jurisdiction in which the Company had a presence and GV has filed tax returns for the years ended December 31, 2018 and 2017 and will file a tax return for the period from January 1, 2019 through October 25, 2019. As of December 31, 2019 and for the period from October 26, 2019 through December 31, 2019, we will file a separate stand-alone tax return. The Company records income tax expense for the anticipated tax consequences of the reported results of operations using the asset and liability method. Under this method, the Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, as well as for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. The Company records valuation allowances to reduce its deferred tax assets to the net amount that it believes is more likely than not to be realized. Its assessment considers the recognition of deferred tax assets on a jurisdictional basis. Accordingly, in assessing its future taxable income on a jurisdictional basis, the Company considers the effect of its transfer pricing policies on that income. The Company has placed a full valuation allowance against U.S. federal and state deferred tax assets since the recovery of the assets is uncertain. The Company recognizes tax benefits from uncertain tax positions only if it believes that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. As the Company expands, it will face increased complexity in determining the appropriate tax jurisdictions for revenue and expense items which may differ from that of GV. The |
Long Term Incentive Plan and Cash Incentive Plan | Long Term Incentive Plan and Cash Incentive Plan Long Term Incentive Plan Prior to the consummation of the Virgin Galactic Business Combination, certain members of management participated in V10’s Long Term Incentive Plan (the “LTIP Plan”). The LTIP Plan’s purpose was to enhance the ability for us to attract, motivate, and retain certain of our key executives and to strengthen their commitment to us by providing additional compensation in the form of one or more bonus pools payable under the LTIP Plan in the case of a trigger event. Upon any trigger event (generally a stock sale, asset sale, public offering, or full return of capital at V10), a bonus pool was to be created where the realization value for such trigger event is greater than the base value, as defined by the LTIP Plan. The participants would then be entitled to receive their allocation of the bonus pool in cash within 60 days of the trigger event’s occurrence. In 2018, the LTIP Plan was cancelled and replaced with a multiyear cash incentive plan (the “Cash Incentive Plan”), described below. Cash Incentive Plan On June 19, 2017, the Company adopted the Cash Incentive Plan to provide cash bonuses to employees based on the attainment of three qualifying milestones with defined target dates. The maximum aggregate amount of cash awards under the Cash Incentive Plan is $30.0 million, and approved awards have been allocated equally to each milestone. Compensation cost is recognized when it is probable that a milestone will be achieved. Upon achieving each milestone by the defined target date, 50% of the cash award for that milestone will be vested and the remaining 50% will be vested upon the one year anniversary of the target date if the employee maintained employment in good standing. In the event the milestone is not achieved by the defined target date, but no later than six months after the defined target date, the milestone award would be reduced by half, of which 50% will be vested upon achieving the delayed target date and the remaining 50% will be vested upon the one year anniversary of the delayed target date if the employee maintained employment in good standing. If the milestone is not achieved by six months after the defined target date, the award attributed to that milestone would expire and the associated cash award value would be reserved for future grants under the Cash Incentive Plan. The first qualifying milestone was not achieved under the Cash Incentive Plan. The second qualifying milestone under the Company’s multiyear cash incentive plan was amended upon the closing of the Virgin Galactic Business Combination such that the participants who remained continuously employed through the closing of the Virgin Galactic Business Combination were entitled to receive 100% of the bonus that such participant would have otherwise received upon the achievement of the original second qualifying milestone, as amended. The Company recognized and settled the $9.9 million in compensation costs owed to participants for the second qualifying milestone upon the closing of the Transaction. The remaining third milestone is deemed not probable of being achieved. As such, no accrual has been recorded related to this plan as of December 31, 2019 or December 31, 2018. In the event the Company believes a payment related to the Cash Incentive Plan will become probable in the future, an accrual will be recorded at that time based on the anticipated payout. |
Concentrations of Credit Risks and Significant Vendors and Customers | Concentrations of Credit Risks and Significant Vendors and CustomersFinancial instruments that potentially subject us to a significant concentration of credit risk consist primarily of cash and cash equivalents and of certificates of deposit. In respect to accounts receivable, we are not exposed to any significant credit risk to any single counterparty or any company of counterparties having similar characteristics. |
Foreign Currency | Foreign CurrencyThe functional currency of our foreign subsidiary operating in the United Kingdom is the local currency. Assets and liabilities are translated to the United States dollar using the period-end rates of exchange. Revenue and expenses are translated to the United States dollar using average rates of exchange for the period. Exchange differences arising from this translation of foreign currency are recorded as other comprehensive income. |
Stock-Based Compensation | Stock-Based Compensation We recognize all stock-based awards to employees and directors as stock-based compensation expense based upon their fair values on the date of grant. We estimate the fair value of stock-based payment awards on the date of grant. The value of the portion of the award that is ultimately expected to vest is recognized as an expense during the requisite service periods. We have estimated the fair value for each option award as of the date of grant using the Black-Scholes option pricing model. The Black-Scholes option pricing model considers, among other factors, the expected life of the award and the expected volatility of our stock price. We recognize the stock-based compensation expense over the requisite service period using the straight-line method for service condition only awards, which is generally a vesting term of four years. Stock options typically have a contractual term of 10 years. The stock options granted have an exercise price equal to the closing stock price of our common stock on the grant date. Compensation expense for restricted stock units are based on the market price of the shares underlying the awards on the grant date. Compensation expense for performance-based awards reflects the estimated probability that the performance condition will be met. Compensation expense for awards with total stockholder return performance metrics reflects the fair value calculated using the Monte Carlo simulation model, which incorporates stock price correlation and other variables over the time horizons matching the performance periods. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASU”). The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position and results of operations. (a) Issued Accounting Standard Updates In August 2018, the FASB issued ASU 2018-13, Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement (Topic 820) , which modified the disclosure requirements on fair value measurements. ASU 2018-13 is effective for annual and interim periods in fiscal years beginning after December 15, 2019, with early adoption permitted for removed or modified disclosures. The Company is currently assessing the impact of ASU 2018-13 in its consolidated financial statements. In May 2019, the FASB issued ASU 2019-05, Financial Instruments - Credit Losses (Topic 326) . The purpose of ASU 2019-05 is to provide the option to irrevocably elect the fair value option applied on an instrument-by-instrument basis for certain financial assets upon adoption of ASU 2016-13. Adoption of ASU 2019-05 coincides with the adoption of ASU 2016-13 and will therefore be effective for interim and annual reporting periods beginning after December 15, 2019. The Company’s traded accounts receivables are within the scope of ASU 2019-05. The Company has concluded that historical data, adjusted for any current events and expected future economic factors, is the most appropriate modelling information to determine the Company’s expected credit losses. The Company is currently assessing the impact of ASU 2019-05 in its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) , which affects general principles within Topic 740, and are meant to simplify and reduce the cost of accounting for income taxes. It removes certain exceptions to the general principles in Topic 740 and simplifies areas including franchise taxes that are partially based on income, transactions with a government that result in a step up in the tax basis of goodwill, the incremental approach for intraperiod tax allocation, interim period income tax accounting for year-to-date losses that exceed anticipated losses and enacted changes in tax laws in interim periods. The changes are effective for annual periods beginning after December 15, 2020. The Company is currently assessing the impact of ASU 2019-12 in its consolidated financial statements. (b) Adopted Accounting Standard Updates Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , with subsequent amendments. The amended ASU 2016-02 requires lessees to recognize on the balance sheet a right-of-use asset, representing its right to use the underlying asset for the lease term, and a lease liability for all leases with terms greater than 12 months. Under legacy GAAP, operating leases were not recognized by a lessee in its balance sheet. In general, the asset and liability each equal the present value of lease payments. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from current GAAP. The amended ASU 2016-02 retains a distinction between finance leases (i.e., capital leases under current GAAP) and operating leases. The classification criteria for distinguishing between finance leases and operating leases will be substantially similar to the classification criteria for distinguishing between capital leases and operating leases under current GAAP. The amended ASU 2016-02 also requires qualitative and quantitative disclosures designed to assess the amount, timing, and uncertainty of cash flows arising from leases. A modified retrospective transition approach shall be used when adopting ASU 2016-02, which includes a number of optional practical expedients that entities may elect to apply. Prior to January 1, 2019, the Company accounted for leases under ASC 840, Accounting for Leases . Effective January 1, 2019, the Company adopted the guidance of ASC 842, Leases, which requires an entity to recognize a right-of-use asset ( lessee's right to use an asset over the life of a lease or “ROU”) and a lease liability for virtually all leases. The Company adopted ASC 842 under the simplified transition method, which allows companies to forgo the comparative reporting requirements initially required under the modified retrospective transition approach and apply the new guidance prospectively. The new standard provides a number of optional practical expedients in transition. The Company elected the ‘package of practical expedients’, which permitted the Company not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs; and all of the new standard’s available transition practical expedients. As a result, the comparative financial information has not been updated and the required disclosures prior to the date of adoption have not been updated and continue to be reported under the accounting standards in effect for those periods. The adoption of ASC 842 on January 1, 2019 resulted in the recognition of operating lease right-of-use assets of $16.7 million, lease liabilities for operating leases of $24.8 million, and a zero cumulative-effect adjustment to accumulated deficit. The Company elected to exclude from its balance sheets recognition of leases having a term of 12 months or less (“short-term leases”). Lease expense is recognized on a straight-line basis over the lease term. The adoption did not have a significant impact on the Consolidated Statement of Operations and Comprehensive Loss because the majority of the Company’s leases are currently classified as operating, which under the guidance will continue to be recognized as expense on a straight-line basis. The adoption, however, resulted in a significant gross-up in total assets and total liabilities on the consolidated balance sheet. The amount of the liability represents the aggregate discounted amount of the Company’s minimum lease obligations as of the reporting date. The difference between the asset and liability amounts represents deferred rent liabilities and lease incentives as of the reporting date that are netted against the asset amount. As of December 31, 2019, total future undiscounted minimum payments under our operating leases amounted to $48.8 million. Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, ASU 2014-09 requires additional disclosure around the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. On January 1, 2019, the Company adopted ASU 2014-09 and applied this guidance to those contracts which were not completed at the date of adoption using the modified retrospective method. The Company elected to not separately evaluate the effects of each contract modification before the date of initial application. The comparative information has not been restated and continues to be reported under our accounting policies in effect for those periods. The Company did not have a cumulative effect of initially applying the new revenue standard and there was no adjustment to the opening balance of net parent investment. There were also no effects on net cash provided by operating activities, net cash used in investing activities or net cash used in financing activities for the year ended December 31, 2019. Other Effective January 1, 2019, we early adopted ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows companies to reclassify from accumulated comprehensive other income to retained earnings stranded tax effects resulting from the enactment of the Tax Act. ASU 2018-02 was enacted on December 22, 2017 and requires certain disclosures about the stranded tax effects. An entity has the option of applying the new guidance at the beginning of the period of adoption or retrospectively to each period (or periods) in which the tax effects related to items remaining in accumulated other comprehensive income are recognized. The adoption of ASU 2018-02 did not have a material impact on the Company’s consolidated financial statements. Effective January 1, 2019, we adopted ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash and retrospectively for the years presented, which requires restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning and ending amounts in the statements of cash flows. The adoption of ASU 2016-18 did not have a material effect on the Company's consolidated financial statements. Effective January 1, 2019, we adopted ASU 2018-07, Stock Compensation - Nonemployee Share-Based Payments (Topic 718) , which simplifies the accounting for share-based payments to nonemployees by aligning with the accounting for share-based payments to employees, with certain exceptions. The adoption of ASU 2018-07 did not have a material effect on the Company’s consolidated financial statements. Effective January 1, 2018, we adopted ASU 2017-09, Stock Compensation – Scope of Modification Accounting (Topic 718) , which requires an entity to apply modification accounting in Topic 718 for changes to terms or conditions of a share-based payment awards. The adoption of ASU 2017-09 did not have a material effect on the Company’s consolidated financial statements. Effective January 1, 2017, we adopted ASU 2016-09, Compensation – Stock Compensation (Topic 718) , which requires an entity to recognize excess tax benefits and tax deficiencies (including tax benefits of dividends) on share-based compensation awards as income tax expense. Previously such benefits or deficiencies were recognized in the balance sheet as adjustments to additional paid-in capital. The adoption of ASU 2016-09 did not have a material impact on the Company’s consolidated financial statements. Effective January 1, 2017, we adopted ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory , which requires an entity to measure inventory at the lower of cost or net realizable value and eliminates current GAAP options for measuring market value. ASU 2015-11 defines realizable value as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The adoption of ASU 2015-11 did not have a material impact on the Company’s consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Reclassifications | The accompanying financial statements include reclassification from prior presentation as summarized below: 12/31/2018 Reclassification 12/31/2018 (In thousands) Balance Sheet Current assets Cash and cash equivalents $ 81,368 $ (7,378) $ 73,990 Restricted cash and cash equivalents — 7,378 7,378 Total current assets 119,097 — 119,097 Total assets $ 156,039 $ — $ 156,039 |
Schedule of Property, Plant, and Equipment | The estimated useful lives of property and equipment are principally as follows: Asset Useful Life Buildings 39 years Leasehold Improvements Shorter of the estimated useful life or lease term Aircraft 20 years Machinery & equipment 5 to 7 years IT software and equipment 3 to 5 years As of December 31, 2019 and 2018, property, plant, and equipment, net consists of the following : As of December 31, 2019 2018 (In thousands) Buildings $ 9,142 $ 9,142 Leasehold improvements 20,048 16,570 Aircraft 320 320 Machinery and equipment 33,608 22,114 IT software and equipment 17,151 13,602 Construction in progress 3,674 620 83,943 62,368 Less accumulated depreciation and amortization (34,610) (28,154) Property, plant, and equipment, net $ 49,333 $ 34,214 |
Schedule of Fair Value of Assets Measured on Recurring Basis | The following tables summarize the fair value of assets that are recorded in the Company’s Consolidated Balance Sheets as of December 31, 2019 and December 31, 2018 at fair value on a recurring basis: Fair Value Measurements as of December 31, 2019 Level 1 Level 2 Level 3 (In thousands) Assets Money Market $ 423,149 $ — $ — Certificate of deposit 42,630 — — Total assets at fair value $ 465,779 $ — $ — Fair Value of Measurements as of December 31, 2018 Level 1 Level 2 Level 3 (In thousands) Assets Money Market $ 22,908 $ — $ — Certificate of deposit 24,277 — — Total asset at fair value $ 47,185 $ — $ — |
Virgin Galactic Business Comb_2
Virgin Galactic Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Summary of Common Stock Issued and Outstanding | After giving effect to the redemption of the Class A public shares, the Repurchase, and the Secondary Purchase, shares of our common stock issued and outstanding immediately after the closing of the Virgin Galactic Business Combination were as follows: Shareholder No. of Shares % Ownership Vieco US 114,790,438 58.6 % VGH, Inc.'s public shareholders 53,122,712 27.1 % SCH Sponsor Corp. & related parties (including Mr. Palihapitiya) 25,750,000 13.1 % Boeing 1,924,402 1.0 % Shares issued to settle transaction costs (1) 413,486 0.2 % Total (2) 196,001,038 100.0 % ________________________________ (1) Shared were issued in November 2019 as partial consideration for advisory services rendered in connection with the Virgin Galactic Business Combination. |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | As of December 31, 2019 and 2018, inventory is comprised of the following: As of December 31, 2019 2018 (In thousands) Raw Materials $ 22,578 $ 20,940 Work in-progress 4,239 2,348 $ 26,817 $ 23,288 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant, and Equipment | The estimated useful lives of property and equipment are principally as follows: Asset Useful Life Buildings 39 years Leasehold Improvements Shorter of the estimated useful life or lease term Aircraft 20 years Machinery & equipment 5 to 7 years IT software and equipment 3 to 5 years As of December 31, 2019 and 2018, property, plant, and equipment, net consists of the following : As of December 31, 2019 2018 (In thousands) Buildings $ 9,142 $ 9,142 Leasehold improvements 20,048 16,570 Aircraft 320 320 Machinery and equipment 33,608 22,114 IT software and equipment 17,151 13,602 Construction in progress 3,674 620 83,943 62,368 Less accumulated depreciation and amortization (34,610) (28,154) Property, plant, and equipment, net $ 49,333 $ 34,214 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Summary of Lease Expense and Cash Flow Information | The components of lease expense related to leases for the period are as follows: Year ended December 31, 2019 (In thousands) Lease Cost: Operating lease expense $ 4,243 Short-term lease expense 219 Finance lease cost: Amortization of right-of-use assets 98 Interest on lease liabilities 29 Total finance lease cost 127 Variable lease cost 803 Total lease cost $ 5,392 The components of supplemental cash flow information related to leases for the period are as follows: Year ended December 31, 2019 (In thousands, except term and rate data) Cash flow information: Cash paid for amounts included in the measurement of lease liabilities for the year ended December 31, 2019: Operating cash flows from operating leases $ 4,462 Operating cash flows from finance leases $ 29 Financing cash flows from finance leases $ 104 Non-cash activity: Right-of-use assets obtained in exchange for lease obligations Operating leases $ 17,658 Finance Leases $ 430 Other Information: Weighted average remaining lease term: Operating leases (in years) 13.36 Finance leases (in years) 3.96 Weighted average discount rates: Operating leases 11.77 % Finance leases 9.37 % |
Summary of Balance Sheet Information | The supplemental balance sheet information related to leases for the period is as follows: As of December 31, 2019 (In thousands) Operating leases Long-term right-of-use assets $ 16,632 Short-term operating lease liabilities $ 2,354 Long-term operating lease liabilities 21,867 Total operating lease liabilities $ 24,221 Lease expense for the years ended December 31, 2019, 2018 and 2017 was $5.3 million, $4.5 million and $3.9 million, respectively. |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | A summary of the components of accrued liabilities are as follows: As of December 31, 2019 2018 (In thousands) Accrued payroll $ 2,027 $ 3,386 Accrued vacation 2,797 2,717 Accrued bonus 6,502 5,828 Other accrued expenses 10,951 6,235 Total accrued liabilities $ 22,277 $ 18,166 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Loss Before Income Taxes | For the years ended December 31, 2019, 2018 and 2017, loss before income taxes are as follows: Years ended December 31, 2019 2018 2017 (In thousands) U.S. operations $ (211,405) $ (137,952) $ (138,368) Foreign operations 532 (40) 336 Loss before income taxes $ (210,873) $ (137,992) $ (138,032) |
Schedule of Income Tax Expense | Income tax expense attributable to loss from continuing operations consists of: Current Deferred Total (In thousands) Year ended December 31, 2019 U.S. operations $ — $ — $ — State and local 27 — 27 Foreign jurisdiction 50 (15) 35 $ 77 $ (15) $ 62 Year ended December 31, 2018 U.S. operations $ — $ — $ — State and local 2 — 2 Foreign jurisdiction 142 3 145 $ 144 $ 3 $ 147 Year ended December 31, 2017 U.S. operations $ — $ — $ — State and local 7 — 7 Foreign jurisdiction 130 18 148 $ 137 $ 18 $ 155 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of significant items comprising the Company’s deferred taxes are as follows: 2019 2018 (In thousands) Deferred tax assets: Net operating loss carryforwards $ 10,981 $ 177,297 Start-up costs — 97,195 Research and development 2,955 43,367 Accrued liabilities 3,402 872 Deferred rent 1,843 1,555 Deferred revenue 8 618 Plant and equipment, principally due to differences in depreciation and capitalized interest 1,254 — Goodwill 230,543 — Total gross deferred tax assets 250,986 320,904 Less valuation allowance (250,818) (317,444) Net deferred tax assets $ 168 $ 3,460 Deferred tax liabilities: Plant and equipment, principally due to differences in depreciation and capitalized interest $ — $ (3,313) Total gross deferred tax liabilities — (3,313) Net deferred tax assets $ 168 $ 147 |
Summary of Tax Credit Carryforwards | NOLs and tax credit gross carryforwards as of December 31, 2019 are as follows: Amount Expiration Years (In thousand) NOLs, Federal $ 45,375 See notes below NOLs, State $ 20,809 See notes below Tax credits, Federal $ 1,755 See notes below Tax credits, State $ 1,200 See notes below |
Summary of Net Operating Loss Carryforwards | NOLs and tax credit gross carryforwards as of December 31, 2019 are as follows: Amount Expiration Years (In thousand) NOLs, Federal $ 45,375 See notes below NOLs, State $ 20,809 See notes below Tax credits, Federal $ 1,755 See notes below Tax credits, State $ 1,200 See notes below |
Schedule of Effective Income Tax Rate Reconciliation | The effective tax rate of the Company’s (provision) benefit for income taxes differs from the federal statutory rate as follows: Years Ended December 31, 2019 2018 2017 (In thousands) Statutory rate $ (44,401) 21.0 % $ (28,978) 21.0 % $ (48,311) 35.0 % Rate change 0 — % 0 — % 108,906 (78.9) % State income tax (5,867) 2.8 % (9,497) 6.9 % (7,922) 5.7 % Research & Development (8,593) 4.1 % (3,806) 2.8 % (2,367) 1.7 % Change in valuation allowance 64,515 (30.5) % 43,476 (31.5) % (51,864) 37.6 % Reduction of allocated R&D from GV (8,376) 4.0 % — — % — — % Other, net 2,784 (1.4) % (1,048) 0.8 % 1,713 (1.1) % Total 62 — % 147 — % 155 — % |
Schedule of Uncertain Tax Positions | A reconciliation of the beginning and ending balances of unrecognized tax benefits is as follows: Years ending December 31, 2019 2018 (In thousands) Balance at the beginning of the year $ 18,040 $ 16,984 Additions based on tax positions related to current year 3,324 1,067 Additions based on tax positions related to prior years — — Deductions based on tax positions related to prior years (9) (11) Reductions of allocated tax attributes from GV (20,450) — Balance at the end of year $ 905 $ 18,040 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table presents net loss per share and related information: Years Ended December 31, 2019 2018 2017 (in thousands, except for per share data) Basic and diluted: Net loss $ (210,935) $ (138,139) $ (138,187) Weighted average common shares outstanding 194,378,154 193,663,150 193,663,150 Basic and diluted net loss per share $ (1.09) $ (0.71) $ (0.71) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Options Outstanding | The following table sets forth the summary of options activity under the Plans (dollars in thousands except per share data): Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (1) Options outstanding at December 31, 2018 — $ — 0 — Granted 6,212,609 $ 11.58 Exercised — $ — Forfeited options (90,565) $ 11.79 Options outstanding at December 31, 2019 6,122,044 $ 11.58 9.83 — Options exercisable at December 31, 2019 — $ — 9.83 — __________________ (1) Aggregate intrinsic value is calculated based on the difference between our closing stock price at year end and the exercise price, multiplied by the number of in-the-money options and represents the pre-tax amount that would have been received by the option holders, had they all exercised all their options on the fiscal year end date. |
Schedule of Restricted Stock Units Activity | RSU activity during the year ended December 31, 2019 was as follows: Shares Weighted Average Fair Value Outstanding at January 1, 2019 — $ — Granted 1,795,209 7.11 Vested — — Forfeited (27,495) 7.11 Outstanding at December 31, 2019 1,767,714 $ 7.11 |
Schedule of Weighted Average Assumptions | The weighted average assumptions used to value the option grants are as follows: 2019 Expected life (in years) 6.0 Volatility 75.0 % Risk free interest rate 1.7 % Dividend yield — % |
2014 Stock Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Options Outstanding | Options outstanding Shares Number of Weighted- Weighted- Balances as of December 31, 2016 1,775,660 840,525 $ 7.50 5.14 Authorized — — Granted (167,750) 167,750 8.66 Forfeited 750 (750) 9.66 Balances as of December 31, 2017 1,608,660 1,007,525 $ 7.69 4.50 Authorized — — Granted (1,000) 1,000 9.44 Forfeited 134,125 (134,125) 7.72 Balances as of December 31, 2018 1,741,785 874,400 $ 7.70 3.53 Authorized — — Granted — — $ — Forfeited 154,775 (154,775) $ 7.68 Cancelled (1,896,560) (719,625) $ 7.70 Balances as of October 25, 2019 — — $ — 0 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Operating Lease Maturities | As of December 31, 2018, our contractual obligations for future minimum lease payments with initial or remaining noncancelable lease terms in excess of one year are as follows: Payments Due by Periods (In thousands) < 1 year 4,072 1-3 years 7,772 3-5 years 7,310 > 5 years 32,339 Total 51,493 |
Summary of Finance Lease Maturities | Future minimum lease payments under noncancelable operating leases (with initial or remaining lease terms in excess of one year) and future minimum finance lease payments as of December 31, 2019 are as follows: Operating Leases Finance (In thousands) Year ending December 31: 2020 $ 5,006 $ 57 2021 4,093 117 2022 3,269 102 2023 3,226 82 2024 3,226 34 Thereafter 30,000 — Total lease payments $ 48,820 $ 392 Less: Imputed interest/present value discount (24,599) $ (71) Present value of lease liabilities $ 24,221 $ 321 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | Years ended December 31, 2019 2018 2017 (In thousands) Supplemental disclosure Cash payments for: Income tax paid $ 226 $ 176 $ 350 $ 226 $ 176 $ 350 Schedule for noncash operating activities Adoption of ASC 842 leases - Operating leases $ 17,658 $ — $ — $ 17,658 $ — $ — Schedule for noncash investing activities Unpaid property, plant, and equipment received $ 2,571 $ 1,288 $ 602 $ 2,571 $ 1,288 $ 602 Schedule for noncash financing activities Conversion of VGH, LLC membership units to VGH, Inc. common stock $ 114,648 $ — $ — Unpaid transaction costs $ 4,875 $ — $ — Adoption of ASC 842 leases - Finance leases 430 — — $ 119,953 $ — $ — |
Quarterly Financial Data (una_2
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Unaudited Quarterly Financial Data | Summarized unaudited quarterly financial data for quarters ended March 31, 2018 through December 31, 2019 is as follows: Quarters Ended: March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 (In thousands, except for per share data) Net sales $ 1,782 $ 638 $ 832 $ 529 Gross profit $ 776 $ 360 $ 426 $ 215 Net loss $ (42,593) $ (44,068) $ (51,475) $ (72,799) Basic net loss per share 1 $ (0.22) $ (0.23) $ (0.27) $ (0.37) Diluted net loss per share 1 $ (0.22) $ (0.23) $ (0.27) $ (0.37) Quarters Ended: March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 (In thousands, except for per share data) Net sales $ 507 $ 669 $ 386 $ 1,287 Gross profit $ 312 $ 545 $ 318 $ 473 Net loss $ (40,562) $ (12,676) $ (39,184) $ (45,717) Basic net loss per share 1 $ (0.21) $ (0.07) $ (0.20) $ (0.24) Diluted net loss per share 1 $ (0.21) $ (0.07) $ (0.20) $ (0.24) ________________________________ 1 Net loss per share calculations for the quarters ended March 31, 2018 through September 30, 2019 are based on the weighted average basic and diluted shares totaling 193,663,150. Net loss per share calculations for the quarter ended December 31, 2019 are based on the weighted average basic and diluted shares of 194,378,154. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) | Oct. 25, 2019USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) |
Related Party Transaction [Line Items] | |||||||||||||
Allowance for uncollectible amounts | $ 0 | $ 0 | $ 0 | $ 0 | |||||||||
Write-offs | 0 | 0 | $ 0 | ||||||||||
Capitalized software, net | 2,400,000 | 1,300,000 | 2,400,000 | 1,300,000 | |||||||||
Capitalized software, accumulated amortization | 5,300,000 | 5,000,000 | 5,300,000 | 5,000,000 | |||||||||
Capitalized software, amortization expense | 800,000 | 500,000 | 600,000 | ||||||||||
Long-lived assets, impairment charges | $ 0 | 0 | 0 | ||||||||||
Operating segments | segment | 1 | ||||||||||||
Reportable segments | segment | 1 | ||||||||||||
Revenue | 529,000 | $ 832,000 | $ 638,000 | $ 1,782,000 | 1,287,000 | $ 386,000 | $ 669,000 | $ 507,000 | $ 3,781,000 | 2,849,000 | 1,754,000 | ||
Unbilled receivables | 0 | 0 | $ 200,000 | ||||||||||
Contract assets | 0 | 0 | |||||||||||
Deferred revenue | $ 0 | 0 | |||||||||||
Maximum amount of cash award | $ 30,000,000 | ||||||||||||
Cash award, target date milestone, vesting percentage | 50.00% | ||||||||||||
Cash award, one year anniversary milestone, vesting percentage | 50.00% | ||||||||||||
Cash award expiration period after defined target date | 6 months | ||||||||||||
Cash award, reduction of milestone award after defined target date | 0.5 | ||||||||||||
Milestone percentage, received by each participant | 100.00% | 100.00% | |||||||||||
Cash award, compensation expense | $ 9,900,000 | ||||||||||||
Cash incentive plan, accrual | $ 0 | $ 0 | $ 0 | $ 0 | |||||||||
Customer Concentration Risk | Two Customers | Revenue | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Concentration risk, percentage | 100.00% | ||||||||||||
Customer Concentration Risk | One Customer | Accounts Receivable | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Concentration risk, percentage | 42.00% | ||||||||||||
Deferred bonus | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Days to receive bonus pool allocation | 60 days | ||||||||||||
Stock option | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Vesting period | 4 years | ||||||||||||
Expiration period | 10 years | ||||||||||||
Restricted stock units | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Vesting period | 4 years | ||||||||||||
Spaceflight operations | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Revenue | $ 800,000 | $ 800,000 | 0 | ||||||||||
Engineering services | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Revenue | 2,800,000 | 1,200,000 | 1,000,000 | ||||||||||
Sponsorship revenue | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Revenue | $ 200,000 | $ 800,000 | $ 800,000 | ||||||||||
Capitalized software | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Useful life | 3 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Reclassifications) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Balance Sheet | |||
Cash and cash equivalents | $ 480,443 | $ 73,990 | $ 75,426 |
Restricted cash and cash equivalents | 12,278 | 7,378 | $ 5,640 |
Total current assets | 536,671 | 119,097 | |
Total assets | $ 605,546 | 156,039 | |
As Reported | |||
Balance Sheet | |||
Cash and cash equivalents | 81,368 | ||
Restricted cash and cash equivalents | 0 | ||
Total current assets | 119,097 | ||
Total assets | 156,039 | ||
Reclassification | |||
Balance Sheet | |||
Cash and cash equivalents | (7,378) | ||
Restricted cash and cash equivalents | 7,378 | ||
Total current assets | 0 | ||
Total assets | $ 0 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Schedule of Useful Lives of Property and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Useful life | 39 years |
Aircraft | |
Property, Plant and Equipment [Line Items] | |
Useful life | 20 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 7 years |
IT software and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
IT software and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Schedule of Assets at Fair Value) (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | $ 465,779 | $ 47,185 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Money Market | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 423,149 | 22,908 |
Money Market | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Money Market | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Certificate of deposit | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 42,630 | $ 24,277 |
Certificate of deposit | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | |
Certificate of deposit | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 0 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Narrative) (Details) - USD ($) | Dec. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Long-term right-of-use assets | $ 16,632,000 | |
Operating lease liability | 24,221,000 | |
Operating lease, minimum payments | $ 48,820,000 | |
ASU 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Long-term right-of-use assets | $ 16,700,000 | |
Operating lease liability | 24,800,000 | |
ASU 2016-02 | Accumulated Deficit | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect adjustment | $ 0 |
Virgin Galactic Business Comb_3
Virgin Galactic Business Combination (Narrative) (Details) $ / shares in Units, $ in Thousands | Oct. 25, 2019USD ($)$ / sharesshares | Oct. 23, 2019USD ($)$ / sharesshares | Sep. 09, 2019USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018$ / sharesshares |
Business Acquisition [Line Items] | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||
Common stock, shares outstanding (in shares) | 196,001,038 | 196,001,038 | 0 | ||
Shares issued (in shares) | 15,750,000 | ||||
Shares repurchased, value | $ | $ 52,100 | ||||
Underwriting fees | $ | 21,900 | ||||
Stock sold, aggregate consideration | $ | 20,000 | ||||
Cash award, compensation expense | $ | 9,900 | ||||
RSUs granted to employees (in shares) | 1,795,209 | ||||
Cash held in trust account | $ | $ 453,000 | ||||
Restricted stock units | |||||
Business Acquisition [Line Items] | |||||
RSUs granted to employees (in shares) | 1,795,209 | ||||
Stock-based compensation expense | $ | $ 500 | ||||
VGH | |||||
Business Acquisition [Line Items] | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | ||||
Shares issued for each share converted (in shares) | 1 | ||||
Common Class A | |||||
Business Acquisition [Line Items] | |||||
Number of shares redeemed (in shares) | 12,106,110 | 3,771,178 | |||
Value of stock redeemed | $ | $ 125,700 | $ 39,100 | |||
Stock redeemed, price per share (in dollars per share) | $ / shares | $ 10.39 | $ 10.37 | |||
Common Class A | SCH | |||||
Business Acquisition [Line Items] | |||||
Common stock exercised (in shares) | 15,877,288 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | ||||
Conversion ratio | 1 | ||||
Common Class B | SCH | |||||
Business Acquisition [Line Items] | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | ||||
Conversion ratio | 1 | ||||
Common stock, shares outstanding (in shares) | 17,250,000 | ||||
Common Stock | Vieco US | |||||
Business Acquisition [Line Items] | |||||
Stock sold (in shares) | 130,000,000 | ||||
Shares repurchased, price per share (in dollars per share) | $ / shares | $ 10 | ||||
Common Stock | Boeing | |||||
Business Acquisition [Line Items] | |||||
Stock sold (in shares) | 1,924,402 | ||||
Common Stock | Chief Executive Officer | SCH | |||||
Business Acquisition [Line Items] | |||||
Stock sold (in shares) | 10,000,000 | ||||
Stock sold, price per share (in dollars per share) | $ / shares | $ 10 | ||||
Merger Agreement | |||||
Business Acquisition [Line Items] | |||||
Merger consideration | $ | $ 1,300,000 | ||||
Number of shares repurchased (in shares) | 5,209,562 | ||||
Shares repurchased, price per share (in dollars per share) | $ / shares | $ 10 | ||||
Transaction costs | $ | 52,900 | ||||
Transaction costs settled in cash | $ | $ 25,100 | ||||
Transaction costs, settled with stock, value | $ | $ 4,900 | ||||
Transaction costs, settled with stock, shares (in shares) | 413,486 | ||||
Stock-based compensation expense | $ | $ 4,900 | ||||
Merger Agreement | Shares issued to settle transactions costs | |||||
Business Acquisition [Line Items] | |||||
Transaction costs | $ | $ 30,000 | ||||
Merger Agreement | Director | SCH | Restricted stock units | |||||
Business Acquisition [Line Items] | |||||
RSUs granted to employees (in shares) | 1,500,000 |
Virgin Galactic Business Comb_4
Virgin Galactic Business Combination (Summary of Common Stock) (Details) - shares | Dec. 31, 2019 | Oct. 25, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | |||
Common stock, shares outstanding (in shares) | 196,001,038 | 196,001,038 | 0 |
Common stock, shares issued (in shares) | 196,001,038 | 196,001,038 | 0 |
Common stock, percentage ownership | 100.00% | ||
Vieco US | |||
Class of Stock [Line Items] | |||
Common stock, shares outstanding (in shares) | 114,790,438 | ||
Common stock, shares issued (in shares) | 114,790,438 | ||
Common stock, percentage ownership | 58.60% | ||
VGH, Inc.'s public shareholders | |||
Class of Stock [Line Items] | |||
Common stock, shares outstanding (in shares) | 53,122,712 | ||
Common stock, shares issued (in shares) | 53,122,712 | ||
Common stock, percentage ownership | 27.10% | ||
SCH Sponsor Corp. & related parties (including Mr. Palihapitiya) | |||
Class of Stock [Line Items] | |||
Common stock, shares outstanding (in shares) | 25,750,000 | ||
Common stock, shares issued (in shares) | 25,750,000 | ||
Common stock, percentage ownership | 13.10% | ||
Boeing | |||
Class of Stock [Line Items] | |||
Common stock, shares outstanding (in shares) | 1,924,402 | ||
Common stock, shares issued (in shares) | 1,924,402 | ||
Common stock, percentage ownership | 1.00% | ||
Shares issued to settle transactions costs | |||
Class of Stock [Line Items] | |||
Common stock, shares outstanding (in shares) | 413,486 | ||
Common stock, shares issued (in shares) | 413,486 | ||
Common stock, percentage ownership | 0.20% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | |
Related Party Transaction [Line Items] | ||||
Royalty payable, as a percentage of revenue | 1.00% | |||
Royalty payable, quarterly amount | $ 20 | $ 50 | ||
Sponsorship royalties payable, as a percentage of revenue | 25.00% | |||
Affiliated Entity | License and royalty fees | ||||
Related Party Transaction [Line Items] | ||||
Expenses from related party | $ 80 | $ 90 | 150 | |
Parent Company | Allocation of corporate expenses | ||||
Related Party Transaction [Line Items] | ||||
Expenses from related party | 1,200 | 130 | 130 | |
Subsidiary of Common Parent | ||||
Related Party Transaction [Line Items] | ||||
Related party (payable) receivable | (800) | 9,000 | ||
Subsidiary of Common Parent | Allocation of corporate expenses | ||||
Related Party Transaction [Line Items] | ||||
Transaction amounts from related party | $ (200) | $ 300 | $ 300 |
Inventory (Schedule of Inventor
Inventory (Schedule of Inventory) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw Materials | $ 22,578 | $ 20,940 |
Work in-progress | 4,239 | 2,348 |
Inventories | $ 26,817 | $ 23,288 |
Inventory (Narrative) (Details)
Inventory (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |||
Inventory write-down | $ 300,000 | $ 0 | $ 0 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment, net (Schedule of Property, Plant, and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 83,943 | $ 62,368 |
Less accumulated depreciation and amortization | (34,610) | (28,154) |
Property, plant, and equipment, net | 49,333 | 34,214 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | 9,142 | 9,142 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | 20,048 | 16,570 |
Aircraft | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | 320 | 320 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | 33,608 | 22,114 |
IT software and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | 17,151 | 13,602 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 3,674 | $ 620 |
Property, Plant, and Equipmen_4
Property, Plant, and Equipment, net (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 6,999 | $ 5,807 | $ 5,148 |
Amortization of right-of-use assets | 98 | ||
Capital leases, depreciation and amortization | 80 | 80 | |
Research and Development Expense | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 3,700 | $ 1,200 | $ 1,400 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease, discount rate | 11.77% | ||
Operating lease expense | $ 5.3 | ||
Lease expense | $ 4.5 | $ 3.9 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease, discount rate | 8.30% | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease, discount rate | 11.80% |
Leases (Lease Cost) (Details)
Leases (Lease Cost) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease expense | $ 4,243 |
Short-term lease expense | 219 |
Finance lease cost: | |
Amortization of right-of-use assets | 98 |
Interest on lease liabilities | 29 |
Total finance lease cost | 127 |
Variable lease cost | 803 |
Total lease cost | $ 5,392 |
Leases (Cash Flow Information)
Leases (Cash Flow Information) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash Flow, Operating Activities, Lessee [Abstract] | |
Operating cash flows from operating leases | $ 4,462 |
Operating cash flows from finance leases | 29 |
Financing cash flows from finance leases | 104 |
Right-of-use assets obtained in exchange for lease obligations | |
Operating leases | 17,658 |
Finance Leases | $ 430 |
Weighted average remaining lease term: | |
Operating leases (in years) | 13 years 4 months 9 days |
Finance leases (in years) | 3 years 11 months 15 days |
Weighted average discount rates: | |
Operating leases | 11.77% |
Finance leases | 9.37% |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Long-term right-of-use assets | $ 16,632 |
Short-term operating lease liabilities | 2,354 |
Long-term operating lease liabilities | 21,867 |
Total operating lease liabilities | $ 24,221 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Accrued payroll | $ 2,027 | $ 3,386 |
Accrued vacation | 2,797 | 2,717 |
Accrued bonus | 6,502 | 5,828 |
Other accrued expenses | 10,951 | 6,235 |
Accrued liabilities | $ 22,277 | $ 18,166 |
Income Taxes (Loss Before Incom
Income Taxes (Loss Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. operations | $ (211,405) | $ (137,952) | $ (138,368) |
Foreign operations | 532 | (40) | 336 |
Loss before income taxes | $ (210,873) | $ (137,992) | $ (138,032) |
Income Taxes (Income Tax Expens
Income Taxes (Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
U.S. operations | |||
Current | $ 0 | $ 0 | $ 0 |
Deferred | 0 | 0 | 0 |
Total | 0 | 0 | 0 |
State and local | |||
Current | 27 | 2 | 7 |
Deferred | 0 | 0 | 0 |
Total | 27 | 2 | 7 |
Foreign jurisdiction | |||
Current | 50 | 142 | 130 |
Deferred | (15) | 3 | 18 |
Total | 35 | 145 | 148 |
Current, total | 77 | 144 | 137 |
Deferred, total | (15) | 3 | 18 |
Total | $ 62 | $ 147 | $ 155 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | Oct. 26, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Operating Loss Carryforwards [Line Items] | ||||
Tax expense effect to equity | $ 130,500,000 | |||
Tax benefit impact to equity | 130,500,000 | |||
Deferred tax adjustment recorded to equity | 0 | |||
Goodwill | 230,543,000 | $ 0 | ||
Uncertain tax positions | 905,000 | $ 18,040,000 | $ 16,984,000 | |
Interest and penalty charges accrued | 0 | |||
Current Year Operating Activity | ||||
Operating Loss Carryforwards [Line Items] | ||||
Increase in valuation allowance | 65,000,000 | |||
Deferred Tax Asset Adjustment | ||||
Operating Loss Carryforwards [Line Items] | ||||
Increase in valuation allowance | $ 130,500,000 | |||
Research and development | ||||
Operating Loss Carryforwards [Line Items] | ||||
Uncertain tax position, net of tax credit | 700,000 | |||
U.S. Federal | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforward | 45,375,000 | |||
Tax credit carryforward | 1,755,000 | |||
U.S. Federal | Research and development | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforward | 1,800,000 | |||
State | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforward | 20,809,000 | |||
Tax credit carryforward | 1,200,000 | |||
State | Research and development | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforward | $ 1,200,000 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 10,981 | $ 177,297 |
Start-up costs | 0 | 97,195 |
Research and development | 2,955 | 43,367 |
Accrued liabilities | 3,402 | 872 |
Deferred rent | 1,843 | 1,555 |
Deferred revenue | 8 | 618 |
Plant and equipment, principally due to differences in depreciation and capitalized interest | 1,254 | 0 |
Goodwill | 230,543 | 0 |
Total gross deferred tax assets | 250,986 | 320,904 |
Less valuation allowance | (250,818) | (317,444) |
Net deferred tax assets | 168 | 3,460 |
Deferred tax liabilities: | ||
Plant and equipment, principally due to differences in depreciation and capitalized interest | 0 | (3,313) |
Total gross deferred tax liabilities | 0 | (3,313) |
Net deferred tax assets | $ 168 | $ 147 |
Income Taxes (Tax Credit Carryf
Income Taxes (Tax Credit Carryforwards) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
U.S. Federal | |
Tax Credit Carryforward [Line Items] | |
Net operating loss carryforward | $ 45,375 |
Tax credit carryforward | 1,755 |
State | |
Tax Credit Carryforward [Line Items] | |
Net operating loss carryforward | 20,809 |
Tax credit carryforward | $ 1,200 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Statutory rate | $ (44,401) | $ (28,978) | $ (48,311) |
Rate change | 0 | 0 | 108,906 |
State income tax | (5,867) | (9,497) | (7,922) |
Research & Development | (8,593) | (3,806) | (2,367) |
Change in valuation allowance | 64,515 | 43,476 | (51,864) |
Reduction of allocated R&D from GV | (8,376) | 0 | 0 |
Other, net | 2,784 | (1,048) | 1,713 |
Total | $ 62 | $ 147 | $ 155 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Statutory rate | 21.00% | 21.00% | 35.00% |
Rate change | 0 | 0 | (0.789) |
State income tax | 2.80% | 6.90% | 5.70% |
Research & Development | 4.10% | 2.80% | 1.70% |
Change in valuation allowance | (30.50%) | (31.50%) | 37.60% |
Reduction of allocated R&D from GV | 4.00% | 0.00% | 0.00% |
Other, net | (1.40%) | 0.80% | (1.10%) |
Total | 0.00% | 0.00% | 0.00% |
Income Taxes (Change in Uncerta
Income Taxes (Change in Uncertain Tax Positions) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at the beginning of the year | $ 18,040 | $ 16,984 |
Additions based on tax positions related to current year | 3,324 | 1,067 |
Additions based on tax positions related to prior years | 0 | 0 |
Deductions based on tax positions related to prior years | (9) | (11) |
Reductions of allocated tax attributes from GV | (20,450) | 0 |
Balance at the end of year | $ 905 | $ 18,040 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Units, $ in Millions | Oct. 25, 2019USD ($)$ / sharesshares | May 05, 2017USD ($)$ / sharesshares | Dec. 31, 2019vote$ / sharesshares | Dec. 31, 2018$ / sharesshares |
Class of Stock [Line Items] | ||||
Shares authorized (in shares) | shares | 710,000,000 | |||
Common stock, shares authorized (in shares) | shares | 700,000,000 | 700,000,000 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||
Preferred stock, shares authorized (in shares) | shares | 10,000,000 | |||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | |||
Number of votes per share of common stock | vote | 1 | |||
Redemption price per share (in dollars per share) | $ / shares | $ 0.01 | |||
Redemption notice period | 30 days | |||
Minimum sale price of stock for warrant redemption (in dollars per share) | $ / shares | $ 18 | |||
Number of trading days | 20 days | |||
Trading day period | 30 days | |||
Warrants outstanding (in shares) | shares | 22,999,977 | |||
Stock sold, aggregate consideration | $ | $ 20 | |||
SCH | ||||
Class of Stock [Line Items] | ||||
Term of warrants | 5 years | |||
Common Class A | SCH | ||||
Class of Stock [Line Items] | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | |||
IPO | SCH | ||||
Class of Stock [Line Items] | ||||
Warrant sold, price per share (in dollars per share) | $ / shares | $ 10 | |||
Number of warrants in each unit (in shares) | shares | 0.3333 | |||
Exercise price per warrant (in dollars per share) | $ / shares | $ 11.50 | |||
IPO | Common Class A | SCH | ||||
Class of Stock [Line Items] | ||||
Number of shares in each unit (in shares) | shares | 1 | |||
Number of shares acquired by each warrant (in shares) | shares | 1 | |||
Private Placement | ||||
Class of Stock [Line Items] | ||||
Exercise price per warrant (in dollars per share) | $ / shares | $ 11.50 | |||
Private Placement | Common Stock | ||||
Class of Stock [Line Items] | ||||
Number of shares acquired by each warrant (in shares) | shares | 1 | 1 | ||
SCH Sponsor Corp | Private Placement | ||||
Class of Stock [Line Items] | ||||
Warrant sold, price per share (in dollars per share) | $ / shares | $ 1.50 | |||
Exercise price per warrant (in dollars per share) | $ / shares | $ 11.50 | |||
Stock sold (in shares) | shares | 8,000,000 | |||
Stock sold, aggregate consideration | $ | $ 12 | |||
SCH Sponsor Corp | Private Placement | Common Class A | SCH | ||||
Class of Stock [Line Items] | ||||
Number of shares acquired by each warrant (in shares) | shares | 1 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Basic and diluted: | |||||||||||
Net loss | $ (210,935) | $ (138,139) | $ (138,187) | ||||||||
Weighted average common shares outstanding (in shares) | 194,378,154 | 193,663,150 | 193,663,150 | 193,663,150 | 193,663,150 | 193,663,150 | 193,663,150 | 193,663,150 | 194,378,154 | 193,663,150 | 193,663,150 |
Basic and diluted net loss per share (in dollars per share) | $ (1.09) | $ (0.71) | $ (0.71) |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | Oct. 25, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Common stock outstanding, excluding stock issued (in shares) | 193,663,150 | |||
Vested (in shares) | 0 | |||
Boeing | Common Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock sold (in shares) | 1,924,402 | |||
Merger Agreement | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Transaction costs, settled with stock, shares (in shares) | 413,486 | |||
Director | Restricted stock units | Merger Agreement | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Vested (in shares) | 1,500,000 | |||
Warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential effect of warrants to purchase stock | 30,999,977 | 30,999,977 | 30,999,977 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) | 10 Months Ended | 12 Months Ended | ||
Oct. 25, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSUs granted to employees (in shares) | 1,795,209 | |||
Granted (in dollars per share) | $ 7.11 | |||
Weighted average fair value, shares issued (in dollars per share) | $ 7.63 | |||
2014 Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 0 | $ 0 | $ 0 | |
Options exercisable (in shares) | 0 | 0 | 0 | |
2019 Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock reserved for issuance (in shares) | 21,208,755 | |||
Stock option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 25.00% | |||
Vesting period | 4 years | |||
Expiration period | 10 years | |||
Dividend yield | 0.00% | |||
Stock option | 2014 Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price, hurdle rate | 8.00% | |||
Performance vesting, change in control percentage | 50.00% | |||
Stock option | 2019 Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 1,900,000 | |||
Vesting period | 3 years | |||
Expiration period | 10 years | |||
Unrecognized stock-based compensation expense | $ 44,800,000 | |||
Unrecognized compensation cost, period for recognition | 3 years 9 months 18 days | |||
Stock option | 2019 Stock Plan | Selling, General and Administrative Expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 1,200,000 | |||
Stock option | 2019 Stock Plan | Research and Development Expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 700,000 | |||
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 500,000 | |||
Vesting period | 4 years | |||
Unrecognized stock-based compensation expense | $ 12,000,000 | |||
Unrecognized compensation cost, period for recognition | 3 years 9 months 18 days | |||
RSUs granted to employees (in shares) | 1,795,209 | |||
Share price (more than) (in dollars per share) | $ 10 | |||
Fair value of shares granted | $ 12,800,000 | |||
Granted (in dollars per share) | $ 7.11 | |||
Restricted stock units | Tranche one | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 25.00% | |||
Restricted stock units | Tranche two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 25.00% | |||
Restricted stock units | Tranche three | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 25.00% | |||
Restricted stock units | Tranche four | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 25.00% | |||
Restricted stock units | Selling, General and Administrative Expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 300,000 | |||
Restricted stock units | Research and Development Expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 200,000 |
Stock-Based Compensation (2014
Stock-Based Compensation (2014 Stock Plan Activity) (Details) - 2014 Stock Plan - $ / shares | 10 Months Ended | 12 Months Ended | |||
Oct. 25, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Shares available for grant | |||||
Granted (in shares) | 0 | (1,000) | (167,750) | ||
Forfeited (in shares) | 154,775 | 134,125 | 750 | ||
Cancelled (in shares) | (1,896,560) | ||||
Number of shares granted | |||||
Beginning balance (in shares) | 874,400 | 874,400 | 1,007,525 | 840,525 | |
Granted (in shares) | 0 | 1,000 | 167,750 | ||
Forfeited (in shares) | (154,775) | (134,125) | (750) | ||
Cancelled (in shares) | (719,625) | ||||
Ending balance (in shares) | 0 | 874,400 | 1,007,525 | 840,525 | |
Weighted- average exercise price | |||||
Weighted-average exercise price, beginning (in dollars per share) | $ 7.70 | $ 7.70 | $ 7.69 | $ 7.50 | |
Granted (in dollars per share) | 0 | 9.44 | 8.66 | ||
Forfeited (in dollars per share) | 7.68 | 7.72 | 9.66 | ||
Cancelled (in dollars per share) | 7.70 | ||||
Weighted-average exercise price, ending (in dollars per share) | $ 0 | $ 7.70 | $ 7.69 | $ 7.50 | |
Weighted- average contractual term (in years) | |||||
Weighted average contractual term | 0 years | 3 years 6 months 10 days | 4 years 6 months | 5 years 1 month 20 days | |
Stock option | |||||
Shares available for grant | |||||
Shares available for grant, beginning (in shares) | 1,741,785 | 1,741,785 | 1,608,660 | 1,775,660 | |
Authorized (in shares) | 0 | 0 | 0 | ||
Shares available for grant, ending (in shares) | 0 | 1,741,785 | 1,608,660 | 1,775,660 |
Stock-Based Compensation (2019
Stock-Based Compensation (2019 Stock Plan Activity) (Details) - 2019 Stock Plan - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Shares | ||
Beginning balance (in shares) | 0 | |
Granted (in shares) | 6,212,609 | |
Exercised (in shares) | 0 | |
Forfeited options (in shares) | (90,565) | |
Ending balance (in shares) | 6,122,044 | 0 |
Options exercisable at December 31, 2019 (in shares) | 0 | |
Weighted- average exercise price | ||
Weighted-average exercise price, beginning (in dollars per share) | $ 0 | |
Granted (in dollars per share) | 11.58 | |
Exercised (in dollars per share) | 0 | |
Forfeited options (in dollars per share) | 11.79 | |
Weighted-average exercise price, ending (in dollars per share) | 11.58 | $ 0 |
Options exercisable at December 31, 2019 (in dollars per share) | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Options outstanding, weighted average contractual term | 9 years 9 months 29 days | 0 years |
Options exercisable, weighted average contractual term | 9 years 9 months 29 days | |
Options outstanding, aggregate intrinsic value | $ 0 | $ 0 |
Options exercisable, aggregate intrinsic value | $ 0 |
Stock-Based Compensation (RSU A
Stock-Based Compensation (RSU Activity) (Details) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Shares | |
Outstanding at January 1, 2019 (in shares) | shares | 0 |
Granted (in shares) | shares | 1,795,209 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | (27,495) |
Outstanding at December 31, 2019 (in shares) | shares | 1,767,714 |
Weighted Average Fair Value | |
Outstanding at January 1, 2019 (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 7.11 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 7.11 |
Outstanding at December 31, 2019 (in dollars per share) | $ / shares | $ 7.11 |
Stock-Based Compensation (Valua
Stock-Based Compensation (Valuation Assumptions) (Details) - Stock option | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected life (in years) | 6 years |
Volatility | 75.00% |
Risk free interest rate | 1.70% |
Dividend yield | 0.00% |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2019 | |
Operating Leased Assets [Line Items] | ||
Amount received from legal settlement | $ 28 | |
Minimum | ||
Operating Leased Assets [Line Items] | ||
Operating lease, renewal term | 3 years | |
Maximum | ||
Operating Leased Assets [Line Items] | ||
Operating lease, renewal term | 20 years |
Commitments and Contingencies_3
Commitments and Contingencies (Lease Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Leases | ||
2020 | $ 5,006 | |
2021 | 4,093 | |
2022 | 3,269 | |
2023 | 3,226 | |
2024 | 3,226 | |
Thereafter | 30,000 | |
Total lease payments | 48,820 | |
Imputed interest/present value discount | (24,599) | |
Present value of lease liabilities | 24,221 | |
Finance Leases | ||
2020 | 57 | |
2021 | 117 | |
2022 | 102 | |
2023 | 82 | |
2024 | 34 | |
Thereafter | 0 | |
Total lease payments | 392 | |
Less: Imputed interest/present value discount | (71) | |
Present value of lease liabilities | $ 321 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
Less than 1 year | $ 4,072 | |
1-3 years | 7,772 | |
3-5 years | 7,310 | |
More than 5 years | 32,339 | |
Total | $ 51,493 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Defined contributions | $ 4.1 | $ 3.6 | $ 2.7 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash payments for: | |||
Income tax paid | $ 226 | $ 176 | $ 350 |
Schedule for noncash operating activities | |||
Adoption of ASC 842 leases - Operating leases | 17,658 | ||
Schedule for noncash investing activities | |||
Unpaid property, plant, and equipment received | 2,571 | 1,288 | 602 |
Schedule for noncash financing activities | |||
Conversion of VGH, LLC membership units to VGH, Inc. common stock | 114,648 | 0 | 0 |
Unpaid transaction costs | 4,875 | 0 | 0 |
Finance Leases | 430 | ||
Noncash financing activities, total | $ 119,953 | $ 0 | $ 0 |
Quarterly Financial Data (una_3
Quarterly Financial Data (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 529 | $ 832 | $ 638 | $ 1,782 | $ 1,287 | $ 386 | $ 669 | $ 507 | $ 3,781 | $ 2,849 | $ 1,754 |
Gross Profit | 215 | 426 | 360 | 776 | 473 | 318 | 545 | 312 | 1,777 | 1,648 | 1,266 |
Net loss | $ (72,799) | $ (51,475) | $ (44,068) | $ (42,593) | $ (45,717) | $ (39,184) | $ (12,676) | $ (40,562) | $ (210,935) | $ (138,139) | $ (138,187) |
Basic net loss per share (in dollars per share) | $ (0.37) | $ (0.27) | $ (0.23) | $ (0.22) | $ (0.24) | $ (0.20) | $ (0.07) | $ (0.21) | |||
Diluted net loss per share (in dollars per share) | $ (0.37) | $ (0.27) | $ (0.23) | $ (0.22) | $ (0.24) | $ (0.20) | $ (0.07) | $ (0.21) | |||
Weighted average common shares outstanding (in shares) | 194,378,154 | 193,663,150 | 193,663,150 | 193,663,150 | 193,663,150 | 193,663,150 | 193,663,150 | 193,663,150 | 194,378,154 | 193,663,150 | 193,663,150 |