ispace, inc.

Business Details

Under the vision "Expand our planet. Expand our future.," the company operates three pillars—Payload Service, Data Service, and Partnership Service—using in-house developed landers and rovers. Customers include NASA (via CLPS), national space agencies, and private companies, with a per-unit payload transportation price of $1.5 million/kg for lunar landing. The company advances development through a four-company structure across Japan, the U.S., and Europe (Luxembourg), aiming for commercialization from Mission 3 onward.

Recent Overview

Restated disclosure of financial results summary: revised CF classification, non-consolidated results, and next-year forecast

Regarding the financial results summary for FY2026 (ending March 2026) announced on May 15, 2026, a correction was made as of May 28, 2026. The main corrections were: (1) reclassification of cash flows related to foreign exchange forward contracts from operating activities to investing activities (operating CF: -¥13,190 million → -¥13,568 million; investing CF: -¥2,203 million → -¥1,826 million); (2) a significant expansion of non-consolidated ordinary loss (-¥4,572 million → -¥12,867 million) and non-consolidated net loss (-¥4,582 million → -¥12,878 million); (3) downward revision of non-consolidated total assets and net assets (total assets: ¥49,465 million → ¥41,170 million; net assets: ¥18,232 million → ¥9,937 million); (4) expansion of the operating loss forecast for consolidated results for FY2027 (ending March 2027) (-¥11,700 million → -¥17,700 million); and (5) a change in the impairment grouping method for fixed assets (from multiple groups previously to a single group encompassing the entire group). Note that consolidated results (revenue, operating loss, etc.) and the cash balance at period-end of ¥29,690 million remain unchanged.

Key Products

Growth Drivers

• Expanded adoption from the Space Strategy Fund (a ¥1 trillion scale fund over 10 years): up to ¥4.7 billion in the first phase for "lunar water resource exploration technology," and a support ceiling of ¥20 billion in the second phase for "high-precision lunar polar landing technology"
• Confirmation of NASA's policy to maintain CLPS (Commercial Lunar Payload Services) budget allocation and continuation of policies promoting private sector utilization
• Accumulation of Mission 4 Payload Service contracts (currently totaling $40 million), including an $8 million contract signed with Taiwan's National Space Organization (TASA)
• Strengthened financial base through approximately ¥18,350 million in capital raised via public offering and other means in October-November 2025, and a ¥15.5 billion loan agreement (cash balance at period-end of ¥29,690 million)
• Significant expansion of transportation capacity from Mission 3 onward using the APEX 1.0 lander (payload capacity of up to 300-500kg), and potential orders totaling $662 million in signed MOUs and other agreements (as of May 2025)

Risks

• Material events related to going concern assumption: continuing operating losses and negative operating cash flow persist, making substantial external fundraising essential until stable profitability is achieved
• Mission failure risk: neither Mission 1 nor Mission 2 achieved successful lunar landing (Mission 2 failure was due to a hardware anomaly in the laser range finder); the probability of success for Mission 3 onward remains uncertain
• Mission 3 launch delay risk: the launch has been pushed back approximately one year from 2026 to 2027 due to delayed delivery of engine components, resulting in delayed revenue recognition
• Policy and budget risk: NASA budget cuts and policy changes under the second Trump administration could affect the business environment
• Financial covenant risk: multiple loan agreements include financial covenants requiring positive net assets and maintenance of cash and deposits of at least ¥3 billion; there is a risk of early repayment demands if these conditions are breached
• Restated financial disclosure risk: the financial results summary for FY2026 (ending March 2026) was restated to disclose a significant expansion of non-consolidated ordinary loss and net loss (non-consolidated net assets revised downward by approximately ¥8,295 million, from ¥18,232 million to ¥9,937 million) and an expanded operating loss forecast for the following fiscal year (-¥11,700 million → -¥17,700 million), raising concerns about the reliability of financial figures and internal control systems
• Fixed asset impairment risk: from the current consolidated fiscal year, asset grouping was changed to treat the entire group as a single unit. While indications of impairment are recognized, the company has determined that recognition is not currently necessary; however, impairment losses could arise in subsequent periods if the timing or amount of revenue recognition differs significantly from expectations