Satellogic (SATL) - 2024 Q2 - Quarterly Report

Revenue Performance - Revenue for the six months ended June 30, 2024, was $6,829,000, representing an increase of 114% compared to $3,184,000 in the same period of 2023[3] - Total revenue for the six months ended June 30, 2024, was $6.8 million, a 114% increase from $3.2 million in the same period of 2023[80] - Revenue from Asset Monitoring was $5.1 million for the six months ended June 30, 2024, compared to $2.4 million in 2023, representing a 116% increase[80] - Revenue from Asia Pacific increased significantly to $1.6 million in the first half of 2024, compared to $269,000 in 2023[80] - Revenue from three customers exceeding 10% of total revenue amounted to $4.6 million for the six months ended June 30, 2024[52] Financial Position - Cash and cash equivalents increased to $25,605,000 as of June 30, 2024, up from $23,476,000 at the end of 2023, a growth of 9%[6] - Total assets remained relatively stable at $76,598,000 as of June 30, 2024, compared to $76,382,000 at the end of 2023[6] - Total stockholders' equity decreased to $19,064,000 in 2024 from $51,675,000 in 2023, a decline of approximately 63%[6] - The company has cash and cash equivalents of $25.6 million as of June 30, 2024, which is deemed insufficient to fund operations and capital expenditures for larger scale revenue generation[27] - Total current liabilities decreased to $2,730,000 as of June 30, 2024, from $4,372,000 as of December 31, 2023[100] Operating Performance - Operating loss improved to $(29,275,000) in 2024 from $(36,311,000) in 2023, reflecting a 19% reduction in losses[3] - Net loss available to stockholders increased to $(33,279,000) in 2024 compared to $(29,851,000) in 2023, indicating a 12% increase in net losses[3] - The company experienced a net cash used in operating activities of $(23,891,000) for the six months ended June 30, 2024, compared to $(26,313,000) in 2023, showing an improvement of approximately 9%[15] - Loss before income tax for the six months ended June 30, 2024, was $(31,491,000), compared to $(27,727,000) for the same period in 2023[103] - The basic net loss per share for the six months ended June 30, 2024, was $(0.37), compared to $(0.33) for the same period in 2023[115] Funding and Capital Structure - The company raised $30,000,000 through secured convertible notes during the six months ended June 30, 2024[15] - The company raised approximately $27.6 million through the issuance of Secured Convertible Notes, which mature on April 12, 2028[28][30] - As of June 30, 2024, the company had $36,430,000 in Secured Convertible Notes, with an interest rate of SOFR plus 6.50% per annum[129] - The Secured Convertible Notes are convertible into shares at an initial conversion price of $1.20, equivalent to 833 Class A Ordinary Shares per $1,000 principal amount[130] - The aggregate principal outstanding amount of additional Secured Convertible Notes cannot exceed $50.0 million[133] Impairment and Liabilities - The company performed an impairment test as of June 30, 2024, and concluded that the asset group is not impaired despite the net loss for the period[53] - The estimated fair value of the Sponsor Earnout liability as of June 30, 2024, is $213,000, down from $419,000 as of December 31, 2023[93] - The fair value of the Secured Convertible Notes was determined to be $36,430,000, with a difference of $6.4 million between the aggregate fair value and the unpaid principal balance[119] - The Company has established necessary accruals for probable unfavorable litigation outcomes based on legal counsel advice[138] - As of June 30, 2024, there are no contingent liabilities that need to be reflected in the Condensed Consolidated Financial Statements[138] Stock-Based Compensation - The total stock-based compensation expense for the six months ended June 30, 2024, was $1,258,000, a decrease from $2,841,000 in the same period of 2023[113] - The intrinsic value of outstanding unvested RSUs at June 30, 2024, was $3,138,000, with 3,017,253 RSUs remaining unvested[109] - The company recognized unrecognized stock-based compensation costs of $0.2 million for options and $2.9 million for RSUs, expected to be recognized over 0.4 years and 1.7 years, respectively[111] Other Financial Metrics - Aggregate foreign currency gains were $2.2 million for the six months ended June 30, 2024, compared to $2.0 million in 2023[63] - Lease expense for the six months ended June 30, 2024, was $1.1 million, a decrease from $1.3 million in the same period of 2023[68] - Contract liabilities totaled $3.8 million as of June 30, 2024, down from $4.7 million as of December 31, 2023[83] - The allowance for credit losses decreased to $114,000 as of June 30, 2024, from $3.3 million at the beginning of the period[72] - Total finance income (expense), net for the six months ended June 30, 2024, was $511,000, compared to $1,082,000 for the same period in 2023[100]