Satellogic (SATL) - 2023 Q2 - Quarterly Report

Revenue Performance - Revenue for the six months ended June 30, 2023, was $3,184,000, representing a 33.4$2,388,000 in the same period of 2022[4] - Revenue from two customers totaled $2.6 million for the six months ended June 30, 2023, compared to$2.0 million for the same period in 2022[45] - Revenue from North America rose from $521,000 in 2022 to$1,879,000 in 2023, marking a 260.5% increase[83] - The company recognized revenue of $0.1 million from contract liabilities during the six months ended June 30, 2023[84] Financial Losses - Operating loss improved to$(36,311,000) in 2023 compared to $(49,487,000) in 2022, reflecting a 26.6$(29,851,000) in 2023 from $(8,121,000) in 2022, a rise of 268.5$29,851 thousand, compared to a net loss of $8,121 thousand for the same period in 2022, representing a significant increase in losses[15] - The company reported a loss before income tax of$27.727 million for the six months ended June 30, 2023, compared to a loss of $5.978 million for the same period in 2022[105] Cash and Liquidity - Cash and cash equivalents decreased to$41,978,000 as of June 30, 2023, down from $76,528,000 at the end of 2022, a decline of 45.1$43,126 thousand, down from $124,300 thousand at the end of the previous year[15] - As of June 30, 2023, the company has cash and cash equivalents of$42.0 million, which are deemed insufficient to fund operations and capital expenditures for larger scale revenue generation[27] - The company continues to evaluate its ability to operate as a going concern, with management assessing conditions that may raise substantial doubt about its future operations[25] Assets and Liabilities - Total assets decreased to $108,895,000 as of June 30, 2023, from$143,855,000 at December 31, 2022, a decrease of 24.3%[7] - Total liabilities decreased to $29,650,000 as of June 30, 2023, from$37,657,000 at December 31, 2022, a reduction of 21.3%[7] - Stockholders' equity decreased to $79,245,000 as of June 30, 2023, from$106,198,000 at December 31, 2022, a decline of 25.4%[7] Stock and Equity - Basic net loss per share for the period attributable to common stockholders was $(0.33) in 2023, compared to$(0.13) in 2022[4] - The number of basic weighted-average common shares outstanding increased to 89,326,172 in 2023 from 62,094,383 in 2022, an increase of 43.8%[4] - The total stock-based compensation expense for the six months ended June 30, 2023, was $2.84 million, a decrease from$4.49 million in the same period of 2022[124] - The number of outstanding stock options decreased from 6,067,313 as of December 31, 2022, to 5,523,272 as of June 30, 2023, with a weighted average exercise price of $1.70[121] Operational Activities - Cash used in operating activities for the six months ended June 30, 2023, was$26,313 thousand, an improvement from $34,487 thousand in the prior year[15] - The company incurred$9,928 thousand in cash used for investing activities, down from $15,682 thousand in the previous year, indicating a decrease in capital expenditures[15] - Lease expenses for the six months ended June 30, 2023, were$1.3 million, an increase from $0.9 million for the same period in 2022[62] Financial Instruments and Fair Value - The company reported a change in fair value of financial instruments resulting in a loss of$5,580 thousand in 2023, compared to a loss of $44,596 thousand in 2022, showing improved financial instrument performance[15] - The fair value of Liberty Warrants and Liberty Advisory Fee Warrant decreased from$30.9 million to $2.3 million as of June 30, 2023[88] - The PIPE Warrant's fair value decreased from$1.3 million to $0.1 million as of June 30, 2023[89] Capital Raising and Future Outlook - The company plans to raise additional funds through equity or debt financing to achieve profitability, but there is uncertainty regarding the availability and terms of such financing[28] - There is substantial doubt about the company's ability to continue as a going concern for one year from the issuance date of the financial statements due to the need for additional capital[30] - The company continues to seek opportunities to raise additional capital through the issuance of equity or debt securities to alleviate financial uncertainties[29] Customer Concentration - Two customers accounted for 84% of accounts receivable, net of allowance, as of June 30, 2023, indicating a high concentration of credit risk[44]