Combined RKLB-Iridium pro forma shows $4.3B intangible assets ($3.3B spectrum, $447M customer relationships); 15-year amortization creates $64M annual OpEx drag
“Spectrum $3,315,500 [indefinite useful life]... Customer Relationships $447,379 [15-year useful life, $29,825 annual amortization 2025]... Technology $566,459 [15-year useful life, $37,765 annual amortization 2025]... Total pro forma adjustment for amortization expense $63,641 [2025]”
Why it matters
The $4.3B in intangible assets acquired, dominated by Iridium's spectrum rights (valued at indefinite life), represents >55% of the preliminary purchase price allocation and creates a significant non-cash but material drag on reported earnings. The $63.6M annual amortization (2025) and $29.5M (first half 2026) is a real cost to operating cash flow and EBITDA metrics.
Investment implication
Investors should adjust EBITDA and free cash flow models to add back $64M+ annual amortization. The indefinite-life spectrum valuation is aggressive and subject to impairment risk if satellite service demand or market positioning deteriorates. Goodwill at $2.2B (28% of purchase price) is also at risk; any future underperformance triggers write-downs that impact tangible book value.