Company: SATLW
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001628280-25-025087
Chunk: 114

Company: Satellogic Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Item 2
Chunk 114
---
 operational satellites in orbit as of March 31, 2025 compared to March 31, 2024. 

Interest income, net

Interest income, net remained flat for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. 

35

Change in fair value of financial instruments

The negative change in fair value of financial instruments of $21.6 million was related to net losses on our financial instruments of $22.4 million for the three months ended March 31, 2025, compared to net losses of $0.8 million for the three months ended March 31, 2024. The change was primarily driven by the remeasurement of the fair value of the Secured Convertible Notes and our warrant and earnout liabilities primarily impacted by the increase in trading price of our Class A common stock. These losses were partially offset by a gain on the value of our OS warrants due primarily to the increase in the underlying stock price of the warrant.

Other (expense) income, net 

Other (expense) income, net decreased $1.6 million, or 112%, to $0.2 million of expense for the three months ended March 31, 2025, compared to $1.4 million of income for the three months ended March 31, 2024. The decrease was driven primarily by foreign currency exchange net losses for the three months ended March 31, 2025 compared to foreign currency exchange net gains in the three months ended March 31, 2024.

Income tax expense

Income tax expense decreased by $0.7 million, or 50%, to $0.7 million for the three months ended March 31, 2025, from $1.4 million for the three months ended March 31, 2024. The decrease was driven primarily by lower expense related to unrecognized tax benefits.  The associated liability was fully accrued in the prior period and only interest was accrued in the current period.  The decrease was also driven by exchange rate fluctuations, as the liability is denominated in Argentine pesos while the Company’s functional currency is the U.S. dollar.

Non-GAAP Financial Measures

To supplement our Condensed Consolidated Financial Statements, which are prepared and presented in accordance with U.S. GAAP, we use the following non-GAAP measures: EBITDA; Adjusted EBITDA; and Free Cash Flow. The presentation of this financial information is not intended to