ispace,inc.

Risk of inadequate insurance coverage and losses exceeding policy limits

The risk that the company will incur additional costs because losses are excluded from insurance coverage or exceed policy payout limits. This covers inadequate insurance coverage overall and is not limited to any specific asset, business or insurer.

4companies4 threads

hurts 4

FY2017 →

Support for Space Businesses through the Space Strategy Fund and Defense Satellite Budget

A theme centered on growing demand for government-led space-related businesses and services, driven by the continued selection of projects under the Space Strategy Fund and increased budgets for the Ministry of Defense's satellite constellation development.

Target for Expanding the Operating Scale of a Satellite Constellation

helps 2

FY2025-H1 → FY2026-H1

A theme focused on gradually increasing the number of satellites launched and operated in orbit, with the aim of operating 30 or more satellites from 2028 onward.

New Entrants and Alternative Technology Competition in the On-Orbit Services Market

helps 2

FY2025-H1 →

Risk of a decline in competitive advantage in the on-orbit services market due to competitors' partnerships and consolidation, technological advances supported by governments, and the emergence of low-cost, high-effectiveness alternative technologies.

hurts 2

Global Expansion of On-Orbit Services and Development into Space Infrastructure

A management theme focused on establishing and expanding on-orbit services as global space infrastructure, rather than limiting them to temporary demonstrations, by leveraging technological capabilities, global expansion capabilities and market-creation capabilities.

helps 2

Development of technology to explore subsurface lunar resources using a terahertz-wave satellite

Development and participation in a business to explore shallow subsurface lunar resources using a terahertz-wave remote-sensing satellite, following selection for the Space Strategy Fund. The company will participate as a core partner institution and is expected to receive funding from the fund.

Building a commercial platform through frequent, low-cost lunar transportation

FY2025 → FY2026

A theme focused on conducting frequent, low-cost lunar transportation missions multiple times a year and building a stable commercial platform available for continuous use.

Risk of failure to achieve objectives or failure of lunar landing missions

The risk that key milestones, including a soft landing, will not be achieved in lunar landing missions, affecting mission success and progress in the lunar exploration business. This includes the fact that the same milestone has not been achieved in multiple missions.

Creation of an Earth-Moon Economic Zone through Moon Valley 2040

FY2024-Q1 → FY2025

A long-term vision aimed at forming an Earth–Moon economic zone by around 2040, including lunar habitation and travel between the Moon and Earth. It sets specific future targets of 1,000 lunar residents and 10,000 annual travelers.

Additional development costs due to failure to achieve a space mission

FY2024 → FY2025

The risk of additional costs of up to approximately ¥1.5 billion arising from the need for redevelopment and additional development following the failure to achieve a space development mission. This matter covers additional development costs resulting from the outcome of a specific mission and the impact on the schedules of subsequent missions.

Development delays caused by long-lead-time items, specification changes and defects in space missions

FY2025 → FY2026-H1

The risk that the development schedule or launch date of a space mission will be delayed due to the procurement of long-lead-time components, specification changes, defects, engine changes and other factors.

Legal framework and permits for space-resource exploration and development

FY2024 → FY2026

A theme covering the legal framework for operating a business, including the legislation and permits that allow private-sector operators to explore for and develop space resources under the Space Resources Act.

NASA CLPS mission award and plan reorganization

An initiative to carry out a lunar mission after receiving task order CP-12 under NASA's CLPS program. This matter covers the execution plan for a specific project, including the reorganization from Mission 3 to Mission 5, a launch postponement and the pending formal approval from NASA.

Progress in international lunar exploration cooperation centered on the Artemis Accords

FY2025-H1 → FY2026

A theme that views the expansion of the countries and regions participating in the Artemis Accords and progress in international lunar exploration as structural and international cooperation-related changes affecting the space business environment.

Building a lunar data platform and developing it into a SaaS-style service

FY2024-Q2 →

An initiative to accumulate, analyze and integrate lunar data, provide it as a cloud-based database, and develop it into a SaaS-style data service with subscription pricing.

Lunar lander development using an SBIR grant

An initiative to develop the Series III lander and the ULTRA common platform following the award of an SBIR grant, with a launch targeted for 2027. It concerns a plan to develop a lunar exploration vehicle using government support.

Strategy focused on small-payload transport

FY2024 → FY2026

A market-focused business strategy targeting the transport of small payloads of 500 kg or less, combining small and lightweight designs, low costs and high-frequency missions to strengthen competitiveness.

Commercialization of Lunar Development

An ongoing effort to establish lunar development as a business and create an Earth–Moon economic sphere. The focus is on commercializing activities centered on the Moon, with a different target area and commercialization path from existing in-orbit services and Earth observation satellites.

Analysis of mission failure factors and improving the probability of success of subsequent projects

An effort to identify the causes of a specific mission's failure to achieve its objectives through multilayered analysis, including analysis by external experts, and implement measures to improve operations, system development and management decisions in subsequent missions.

Development of lunar exploration missions and a common lander platform

FY2024-Q1 → FY2026

An effort to develop landers and rovers for multiple lunar exploration missions and integrate APEX 1.0 and Series 3 into the common ULTRA platform. Development organizations in Japan and the United States will be integrated to establish a foundation for deployment in future missions.

Change in the revenue recognition method for space-business contracts triggered by a launch mission

FY2024-Q1 → FY2026

An accounting theme in which the revenue recognition method for each space-business contract is changed, triggered by a mission launch, to methods such as the cost-recovery method, percentage-of-completion method or cost-incurred-to-total-estimated-cost method, with the impact on revenue disclosed.

Unrecoverable advance payments for lander components following the rescheduling of a US mission

flat 1

FY2025 → FY2026

A discrete event in which the collectability of long-term advance payments for lander components declined due to the rescheduling of a US mission and a review of the development structure, resulting in an impairment loss.

Completion and launch of the lunar lander

FY2026 → FY2026

A space exploration mission involving completion of the lunar lander and an actual launch. It covers execution of a specific mission from lander development through launch.

Quarterly earnings fluctuations based on the timing of space missions and revenue recognition methods

FY2024-Q1 → FY2025

The risk of quarterly earnings fluctuations due to space mission-specific execution, contractual and accounting factors, including the launch and completion timing of missions, the timing of contract execution, payload weight and the revenue recognition method. The impact of R&D expenses and the competitive and market environment is also included.

Impairment due to a change in the use of assets for a lunar development business

FY2026-H1 →

A theme involving the recognition of impairment losses on fixed assets when a change in how assets are used reduces their recoverability. It concerns assets for a specific lunar development business and impairment directly triggered by a change in their use.

Reducing financial risk through lunar mission insurance when a mission is not successfully completed

FY2025-H1 → FY2026

An initiative to reduce the financial risks associated with carrying out missions by using lunar mission insurance that pays out when a mission is not successfully completed. It also includes uncertainty over missions without insurance coverage and over the scope of coverage, premiums and eligibility requirements.

Development and conclusion of the HAKUTO-R partnership business

An effort to develop a partnership business for the HAKUTO-R lunar exploration program by combining rights, advertising and data usage, and to acquire new customers. The business ultimately ended when the contracts with all 22 companies expired.

Expansion of the customer and project pipeline for payload services

FY2024-Q1 → FY2026

An effort to expand the order pipeline by securing future customers and projects, including projects covered by contracts, grants or secured budgets, as well as memoranda of understanding, with a view to monetizing payload services.

Considering entry into the orbital transfer vehicle (OTV) business

An initiative to begin development of an orbital transfer vehicle (OTV) and consider entering the market for a new business transporting satellites and other objects between orbits.

Uncertainty over space-business opportunities due to NASA budget cuts and changes to the Artemis program

FY2026-H1 → FY2026-H1

The risk that changes in the timing or content of the Artemis program and lunar base development resulting from NASA's planned budget cuts or a change in administration will affect order opportunities and business plans in the space-related business.

Achieving a sustainable world through the creation of space habitation and a lunar economy

FY2025 → FY2026

A long-term corporate vision to achieve a sustainable world by expanding humanity’s sphere of habitation into space and creating Earth and Moon ecosystems and a lunar economy.

Enlarging the APEX and ULTRA landers and expanding payload capacity

A development plan to enlarge the APEX 1.0 lander and expand payload capacity to the 300–500 kg class. The plan was later changed to an ULTRA lander integrating APEX 1.0 and Series 3, with the aim of increasing transportation capacity.

Lower-cost spacecraft development through the use of COTS products and software

FY2024 → FY2026

A development method that reduces spacecraft development costs and development time by using commercial off-the-shelf (COTS) products and software while minimizing the in-house production of components.

Export controls and permits and approvals compliance in the space business

A theme involving the integrated management of export control regulations, including ITAR, EAR and Japan's Foreign Exchange and Foreign Trade Act, together with the acquisition of and compliance with permits and approvals under the Space Activities Act, Space Resources Act and Radio Act. Through specialised departments, management processes and training, the company seeks to maintain the continuity of space missions and prevent regulatory violations.

Launch of “Luna Connect Service,” a communications service for the Moon, using lunar-orbiting satellites

FY2026-H1 →

Revenue Dependence on Specific Customers and Corporate Groups

FY2026 →

Contested

Companies in these themes point in more than one direction. The same force lifts one filer and costs another, and the split is the reading.

Risk that business performance may be affected by competitive conditions in the research industry, customer trends and system outages, as the majority of sales comes from research firms and customers in specific industries. The company aims to reduce this dependence by diversifying its customer base and services.

Concentrated in Information & Communications/Services and Others・ Electric Appliances/Precision Instruments・ Automobiles/Transportation Equipmentlast written FY2023

318companies336 threads

helps 3 · hurts 332 · flat 1

Strengthening the recruitment and development of advanced technical and IT specialists

An ongoing theme focused on strengthening the Group’s technology and talent base by enhancing the technical capabilities required for business development, while recruiting highly specialized and global talent, visualizing skills, and developing managers.

Concentrated in Information & Communications・ Services and Other; Electrical Appliances & Precision Instruments; Construction & Materialsmoving with the rest

275companies293 threads

helps 279 · hurts 14

Flexible, ongoing financing to meet business operating needs and build a sound financial foundation

The policy is to secure the funds needed to operate the business by raising working capital through borrowings from financial institutions and new share issuance, in addition to internally generated funds. This financing theme involves continuously drawing down and repaying borrowings.

Concentrated in Information & communications・ services and other; Retail; Electrical equipment and precision instrumentsmoving with the rest

195companies196 threads

helps 175 · hurts 4 · flat 17

FY2016-Q2 →

Decline in R&D expenses

A theme for disclosures that research and development expenses decreased year on year. The decrease itself is the focus and does not necessarily entail unchanged R&D activity or a decline in the ratio to net sales.

Concentrated in Information & Communications・ Services and Other; Electrical Appliances & Precision Instruments; Construction & Materialsgrowing faster than other themes

53companies59 threads

helps 4 · hurts 48 · flat 7

FY2016-Q2 →

Broad

Themes almost every covered company sits in, where the direction is unanimous. The company list is the value here, not the direction — these are the ones worth scanning for who is missing.

Business Uncertainty Stemming from Protectionist Trade Policies and Geopolitical Conditions

Risk that protectionist trade policies, political developments in various countries, and escalating conflicts and geopolitical tensions will affect business performance through the business environment, personal consumption, and raw material and energy prices.

Concentrated in Information & Communications and Services・ Electrical Appliances and Precision Instruments・ Retailgrowing faster than other themes

377companies386 threads

hurts 385 · flat 1

Risk of loss of benefit of time following a breach of financial covenants

This theme covers the risk that borrowings become immediately due and payable if financial covenants in borrowing agreements are breached, such as requirements to maintain total capital and avoid operating or net losses. It also includes ongoing monitoring and disclosure when the covenants are currently being complied with.

Concentrated in Information and communications; services and other; retail; materials and chemicalslast written FY2024

320companies327 threads

hurts 324 · flat 3

FY2023 →

Reliance on External Partners, Including Licensors, Sales Partners and CROs

A theme in which business operations depend on licensing, outsourcing and sales partnership agreements with external partners such as licensors, sales partners and CROs, and in which changes to or termination of these agreements, or failure to achieve the expected benefits of the partnerships, could affect business continuity and performance. This also includes the transfer of sales and manufacturing rights to new partners.

Concentrated in Information and communications・ services and other; pharmaceuticals; materials and chemicalsshrinking against other themes

107companies110 threads

hurts 110

Stabilizing the Revenue Base

An ongoing management theme pursued alongside business expansion, aimed at stabilizing the earnings base and securing sustainable earnings. The specific means are not limited, with emphasis placed on the overall stability of business operations.

Concentrated in Information & communications・ services and other; construction and materials; trading companies and wholesalemoving with the rest

103companies104 threads

helps 104