Company: SATLW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001628280-25-014951
Chunk: 162

Company: Satellogic Inc.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 162
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 the trading price of our Class A common stock which could cause stockholders to lose their investments.

Substantial future sales of shares of our Class A common stock or other securities could cause the market price of our Class A common stock to decline. 

The sales of a substantial number of shares of our Class A common stock, or the perception that such sales could occur, could adversely affect the price for our Class A common stock. We have also filed registration statements with the SEC registering (a) the resale of up to 25,000,000 shares of Class A common stock issuable upon the conversion of the Secured Convertible Notes, all of which remain unsold, and (b) the sale of up to $150,000,000 aggregate amount of Class A common stock. The issuance or resale, or expected or potential issuance or resale, of a substantial number of shares of our Class A common stock in the public market could adversely affect the market price for our Class A common stock, result in dilution and make it more difficult for you to sell your Class A common stock, at times and prices that you feel are appropriate.

In the future, we may attempt to increase our capital resources by making offerings of debt, including additional Secured Convertible Notes, or additional offerings of equity securities. In connection with the issuance of the Secured Convertible Notes, we entered into a side letter which provides the purchaser with pre-emptive rights, in order to maintain its as-converted ownership percentage on the same basis as new capital raised. Accordingly, for so long as the purchaser holds Secured Convertible Notes, it will be entitled to acquire, upon the same terms and at the same price to be paid by other holders, its pro rata portion of any Class A common stock (or securities convertible into Class A common stock), other than issuances under the Company’s incentive compensation plans, issued by us.

Additionally, any convertible or exchangeable securities that we issue in the future may have rights, preferences, and privileges more favorable than those of our Class A common stock and may result in dilution of owners of our Class A common stock. We and, indirectly, our stockholders, will bear the cost of issuing and servicing such securities. Upon liquidation, holders of our debt securities and preferred stock (if any), and lenders with respect to other borrowings, will receive a distribution of our available assets prior to the holders of our Class A common stock. Additional equity offerings may dilute the holdings of our existing stockholders or reduce