Spire (US:SPIR) GlobeNewswire News Roomยท2024-08-15 23:34Core Viewpoint - Spire Global, Inc. is under investigation for potential misrepresentation of its financial health and accounting practices, particularly regarding revenue recognition in its "Space as a Service" business, which may lead to restatements of financial statements and significant losses for investors [1][2][4]. Financial Reporting Issues - Spire announced it would not file its Q2 quarterly report on time due to a review of its accounting practices related to revenue recognition for certain contracts, potentially involving embedded leases [2]. - The company indicated that the contracts under review resulted in recognized revenue of approximately $10 million to $15 million [2]. Debt and Financial Covenants - Preliminary information suggests Spire may be in violation of its maximum debt to EBITDA leverage ratio under its financing agreement with Blue Torch Finance, and the company is seeking waivers or amendments to this agreement [3]. - Following this announcement, Spire's share price dropped by about 33% on August 15, 2024 [3]. Legal and Investigative Actions - Hagens Berman is leading an investigation into whether Spire misled investors regarding its financial results and overall health, urging affected investors to come forward [4]. - The firm is also encouraging whistleblowers with non-public information to assist in the investigation, with potential rewards under the SEC Whistleblower program [4].