[ThrustVectoring]

As to why those are required to be treated as liabilities, the primary point of accounting rules is to ensure the accurate valuation of the business to potential purchasers. Someone who would buy the business before those interests converted would see their ownership get diluted, thus it reduces the value of the business to a prospective buyer, thus an accounting of their books must list it as a liability.

It's not an issue if you're tracking the cash flow of the business or it's overall viability regardless of ownership structure. These book losses are just recognizing that the business has a higher market value so their ownership dilution commitments reduce the present value of the company more.