BlackSky Technology Inc.

Previous wording

Our proprietary constellation can produce high and very-high resolution electro-optical imagery resolution and short-wave infrared imagery for expanded imaging capabilities in low-light or nighttime. The constellation also has advanced data communications capabilities that significantly increase the end-to-end delivery speed of intelligence products. We believe these advanced features improve our analytics and increase the value we can deliver to our customers.

Current wording

Our proprietary constellation can produce high and very-high resolution electro-optical imagery and short-wave infrared imagery for expanded imaging capabilities in low-light or nighttime. The constellation also has advanced data communications capabilities that significantly increase the end-to-end delivery speed of intelligence products. We believe these advanced features improve our analytics and increase the value we can deliver to our customers.

Previous wording

We generate revenue by selling subscription-based On-Demand and Assured product and service offerings that support national security, supply chain intelligence, crisis management, critical infrastructure monitoring, economic intelligence, and others. These offerings include a variety of pricing options accessible via our subscription plan through our BlackSky Spectra software platform, plus professional and engineering services provided to customers on a project-by-project basis. We offer a range of pricing tiers that enables the customer to manage collection priorities, when during critical events they can pay a premium to prioritize their monitoring and collection requirements. At other times, customers can select lower priority collections to allow for more economical utilization. Variable and fixed price plans allow our customers to choose what matters most to them—platform licensing-levels, priority for imagery tasking, and whether to apply analytics or monitoring capabilities overtop the imaging service.

Current wording

We generate revenue by selling subscription-based On-Demand and Assured product and service offerings that support national security, supply chain intelligence, crisis management, critical infrastructure monitoring, economic intelligence, and others. These offerings include a variety of pricing options accessible via our subscription plan through our BlackSky Spectra software platform, plus professional and engineering services provided to customers on a project-by-project basis. We offer a range of pricing tiers that enable the customer to manage collection priorities. During critical events, the customer can pay a premium to prioritize their monitoring and collection requirements, while selecting lower priority collections at other times for more economical utilization. Variable and fixed price plans allow our customers to choose what matters most to them—platform licensing-levels, priority for imagery tasking, and whether to apply analytics or monitoring capabilities overtop the imaging service.

Previous wording

In November 2024, we acquired the remaining 50% of common units of LeoStella LLC (“LeoStella”) and LeoStella became a wholly-owned subsidiary of BlackSky. The acquisition allows us to improve control over the Gen-3 satellite supply chain and production operations. This vertical integration enables us to control our satellites through the entire design, manufacturing, and operation process and optimize performance per unit cost. LeoStella's financial results have been included in our operating results for the period following the acquisition date.

Current wording

In November 2024, we acquired the remaining 50% of common units of BlackSky Satellite Systems LLC, fka LeoStella LLC, ("BlackSky Satellite Systems" or “LeoStella”) and it is now a wholly-owned subsidiary of BlackSky. The acquisition allows us to improve control over the Gen-3 satellite supply chain and production operations. This vertical integration enables us to control our satellites through the entire design, manufacturing, and operation process and optimize performance per unit cost. BlackSky Satellite System's financial results have been included in our operating results for the periods following the acquisition date.

Previous wording

In July 2025, we issued $185.0 million principal amount of Convertible Notes due August 1, 2033 (the “Convertible Notes”) in a private offering. In addition, we repaid all principal and accrued interest from the loans from related parties and the commercial bank line. See "—Liquidity" and Note 9 for further detail.

Current wording

In July 2025, we issued $185.0 million principal amount of Convertible Notes due August 1, 2033 (the “Convertible Notes”) in a private offering. In addition, we repaid all principal and accrued interest from the loans from related parties and the commercial bank line. See "—Liquidity" and Note 10 - "Debt and Other Financing" for further detail.

Previous wording

•Research and development expense consists of employees’ salaries, taxes, and benefits costs incurred while researching next generation space and ground architectures in support of our long-term strategy. With our acquisition of LeoStella in November 2024, research and development expense also includes our investments in satellite design and functionality. Additionally, we employ and classify third-party vendors who fulfill our strategic projects as research and development expense. We intend to continue to invest appropriate resources in research and development efforts, as we believe that investment is critical to maintaining our competitive position.

Current wording

•Research and development expense consists of employees’ salaries, taxes, and benefits costs incurred while researching next generation space and ground architectures in support of our long-term strategy. With our acquisition of BlackSky Satellite Systems in November 2024, research and development expense also includes our investments in satellite design and functionality. Additionally, we employ and classify third-party vendors who help fulfill our strategic projects as research and development expense. We intend to continue to invest appropriate resources in research and development efforts, as we believe that investment is critical to maintaining our competitive position.

Previous wording

Results of Operations for the Three and Six Months Ended June 30, 2025 and 2024

Current wording

Results of Operations for the Three and Nine Months Ended September 30, 2025 and 2024

Previous wording

The following table provides the components of results of operations for the three and six months ended June 30, 2025 and 2024:

Current wording

The following table provides the components of results of operations for the three and nine months ended September 30, 2025 and 2024:

Previous wording

Professional and engineering services revenue decreased for the three months ended June 30, 2025, as compared to the same period in 2024, primarily from a difference in the progress of revenue recognition of long-term contracts that are in various stages of completion. Professional and engineering services revenue contains estimates that can result in the recognition of revenue in a current period for performance obligations which were satisfied or partially satisfied in a prior period. For the impacts of changes in estimates on our contracts, see Note 2—“Basis of Presentation and Summary of Significant Accounting Policies” of the notes to the consolidated financial statements contained within this Quarterly Report on Form 10-Q.

Current wording

Professional and engineering services revenue decreased for the three months ended September 30, 2025, as compared to the same period in 2024, primarily from the substantial completion of a long-term professional services contract. Professional and engineering services revenue contains estimates that can result in the recognition of revenue in a current period for performance obligations which were satisfied or partially satisfied in a prior period. For the impacts of changes in estimates on our contracts, see Note 2—“Basis of Presentation and Summary of Significant Accounting Policies” of the notes to the consolidated financial statements contained within this Quarterly Report on Form 10-Q.

Previous wording

Professional and engineering services revenue increased for the six months ended June 30, 2025, as compared to the same period in 2024, primarily due to a new contract for the delivery of one Earth observation satellite.

Current wording

Professional and engineering services revenue increased for the nine months ended September 30, 2025, as compared to the same period in 2024, primarily due to a new contract for the delivery of one Earth observation satellite.

Previous wording

Professional & engineering service costs, excluding depreciation and amortization, decreased for the three months ended June 30, 2025 as compared to the same period in 2024, primarily due to fewer direct material costs incurred on a professional services contract, which was driven by an increase in the program's maturity year-over-year.

Current wording

Professional & engineering service costs, excluding depreciation and amortization, decreased for the three months ended September 30, 2025 as compared to the same period in 2024, primarily due to the substantial completion of a long-term professional services contract during the third quarter of 2025.

Previous wording

Professional & engineering service costs, excluding depreciation and amortization, increased for the six months ended June 30, 2025 as compared to the same period in 2024, primarily due to a one-time impact of incurred work in process costs under a satellite procurement contract that began in the first quarter of 2025. This increase was partially offset by fewer direct material costs incurred on a professional services contract, related to the program's maturity year-over-year.

Current wording

Professional & engineering service costs, excluding depreciation and amortization, increased for the nine months ended September 30, 2025 as compared to the same period in 2024, primarily due to a one-time impact of incurred work in process costs under a satellite procurement contract that began in the first quarter of 2025. This increase was partially offset by fewer direct material costs incurred on a professional services contract, related to the program's maturity year-over-year.

Previous wording

Selling, general, and administrative expenses increased during the three and six months ended June 30, 2025 as compared to the same period in 2024. Salaries and benefit costs increased primarily due to workforce acquired in our acquisition of LeoStella in the fourth quarter of 2024. Stock-based compensation increased as a result of the issuance of stock awards since June 30, 2024. Information technology and other administrative expenses increased primarily due to investments to optimize corporate business and operational systems. Professional fees increased as a result of transaction costs associated with finalizing the business acquisition in late 2024. We expect for selling, general, and administrative expenses to continue to trend higher in 2025 as compared to what was incurred in 2024 as a result of headcount increases and the integration of LeoStella into our operations.

Current wording

Selling, general, and administrative expenses increased during the three and nine months ended September 30, 2025 as compared to the same periods in 2024. Salaries and benefit costs increased primarily due to workforce acquired in our acquisition in the fourth quarter of 2024. Information technology and other administrative expenses increased primarily due to costs associated with production operations from our acquisition in late 2024 as well as initiatives to optimize corporate business and operational systems during 2025. Professional fees increased as a result of transaction costs incurred during 2025 that were associated with finalizing the acquisition that closed in late 2024. Stock-based compensation increased as a result of the issuance of stock awards since September 30, 2024. We expect for selling, general, and administrative expenses to continue to trend higher through the remainder of 2025 as compared to what was incurred in 2024 due to the integration of BlackSky Satellite Systems into our operations.

Previous wording

Research and development expense decreased for the three and six months ended June 30, 2025, as compared to the same periods in 2024. The decreases were driven by the completion of two projects in 2024.

Current wording

Research and development expense decreased for the three and nine months ended September 30, 2025, as compared to the same periods in 2024 due to the completion of development projects in 2024. We expect for research and development costs to increase as we explore new projects in future periods.

Previous wording

Depreciation expense from satellites decreased for the three and six months ended June 30, 2025 as compared to the same periods in 2024 as a number of Gen-2 satellites became fully depreciated. These decreases were partially offset by increases related to depreciation expense for our two Gen-3 satellites that were launched in the first half of 2025. We expect to incur additional depreciation expense when each Gen-3 satellite is launched and placed into service.

Current wording

Depreciation expense from satellites decreased for the three and nine months ended September 30, 2025 as compared to the same periods in 2024 as a number of Gen-2 satellites became fully depreciated. These decreases were partially offset by increases related to depreciation expense for our Gen-3 satellites launched in the first half of 2025. We expect to incur additional depreciation expense when each Gen-3 satellite is launched and placed into service.

Previous wording

Depreciation expense from all other property and equipment increased for the three and six months ended June 30, 2025 as compared to the same periods in 2024, primarily driven by the depreciation of increased asset balances for internal-use software.

Current wording

Depreciation expense from all other property and equipment increased for the three and nine months ended September 30, 2025 as compared to the same periods in 2024, primarily driven by the depreciation of increasing asset balances for internal-use software as we continue to invest in our BlackSky Spectra software platform, features for our Gen-3 constellation, and internal infrastructure.

Previous wording

Amortization expense increased for the three and six months ended June 30, 2025 as compared to the same periods in 2024 as a result of intangible assets acquired by the Company in the fourth quarter of 2024.

Current wording

Amortization expense increased for the three and nine months ended September 30, 2025 as compared to the same periods in 2024 as a result of intangible assets acquired by the Company in the fourth quarter of 2024.

Previous wording

Fluctuations in our equity warrants and other equity instruments that we classify as derivative liabilities in the unaudited condensed consolidated balance sheets and measure at fair value are significantly driven by our common stock price. Fluctuations to these instruments are inversely related to changes in our common stock price, the volatility of the markets, and the duration of the equity warrants. The gains or losses recognized in the period are non-cash fair value adjustments. These instruments generated a loss during the three and six months ended June 30, 2025 versus a gain during the three and six months ended June 30, 2024.

Current wording

Fluctuations in our equity warrants and other equity instruments that we classify as derivative liabilities in our unaudited condensed consolidated balance sheets and measure at fair value are significantly driven by our common stock price. Fluctuations to these instruments are inversely related to changes in our common stock price, the volatility of the markets, and the duration of the equity warrants.

Previous wording

Interest income increased during the three and six months ended June 30, 2025 as a result of higher short-term investment balances during the period as compared to the same periods in 2024.

Current wording

Interest income increased during the three and nine months ended September 30, 2025 as a result of higher short-term investment balances during the period as compared to the same periods in 2024.

Previous wording

Interest expense increased during the three and six months ended June 30, 2025, as compared to the three and six months ended June 30, 2024, as a result of more debt outstanding during the three and six months ended June 30, 2025, as compared to the same periods in 2024. Our outstanding debt increased mainly due to the capitalization of paid-in-kind interest in 2024 and May 2025 and the financing of launch invoices during the past twelve months.

Current wording

Interest expense increased during the three and nine months ended September 30, 2025, as compared to the three and nine months ended September 30, 2024, as a result of more debt outstanding despite a decrease in the interest rates during the three and nine months ended September 30, 2025, as compared to the same periods in 2024. Our outstanding debt increased due to the Convertible Notes issued in July 2025 and the financing of launch invoices during the past twelve months.

Previous wording

Adjusted EBITDA is defined as net income or loss attributable to us before interest income, interest expense, income tax expense or benefit, depreciation and amortization, as well as significant non-cash and/or non-recurring expenses as our management believes these items are not useful in evaluating our core operating performance. These items include, but are not limited to, stock-based compensation expense; unrealized (gain) loss on certain warrants/shares classified as derivative liabilities; non-recurring transaction costs; litigation, settlements, and related costs; severance; and impairment and asset disposals. We have presented Adjusted EBITDA because it is a key measure used by our management and board of directors to understand and evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, we believe that the exclusion of certain items in calculating Adjusted EBITDA can produce a useful measure for period-to-period comparisons of our business. Accordingly, we believe that Adjusted EBITDA provides useful information in understanding and evaluating our operating results. In addition, we believe that Adjusted EBITDA provides additional information for investors to use in evaluating our ongoing operating results and trends. This non-GAAP measure provides investors with incremental information for the evaluation of our performance after isolation of certain items deemed unrelated to our core business operations.

Current wording

Adjusted EBITDA is defined as net income or loss attributable to us before interest income, interest expense, income tax expense or benefit, depreciation and amortization, as well as significant non-cash and/or non-recurring expenses as our management believes these items are not useful in evaluating our core operating performance. These items include, but are not limited to, stock-based compensation expense; unrealized (gain) loss on certain warrants/shares classified as derivative liabilities; loss on debt extinguishment, non-recurring transaction costs; litigation, settlements, and related costs; severance; and impairment and asset disposals. We have presented Adjusted EBITDA because it is a key measure used by our management and board of directors to understand and evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, we believe that the exclusion of certain items in calculating Adjusted EBITDA can produce a useful measure for period-to-period comparisons of our business. Accordingly, we believe that Adjusted EBITDA provides useful information in understanding and evaluating our operating results. In addition, we believe that Adjusted EBITDA provides additional information for investors to use in evaluating our ongoing operating results and trends. This non-GAAP measure provides investors with incremental information for the evaluation of our performance after isolation of certain items deemed unrelated to our core business operations.

Previous wording

The table below reconciles our net loss to Adjusted EBITDA for the three and six months ended June 30, 2025 and 2024:

Current wording

The table below reconciles our net loss to Adjusted EBITDA for the three and nine months ended September 30, 2025 and 2024. As noted above, in November 2024, we acquired the remaining 50% of the common units of BlackSky Satellite Systems, fka LeoStella, and it is now a wholly-owned subsidiary of BlackSky. Prior to the acquisition, our unaudited condensed consolidated financial statements included our proportionate share of BlackSky Satellite System's, fka LeoStella's, earnings or losses, which was included as an adjusting item for equity method investments in the table below; we did not record any percentage of BlackSky Satellite System's, fka LeoStella's, estimated net loss during the three and nine months ended September 30, 2024 since our investment in LeoStella was $0 as of December 31, 2023. Subsequent to the acquisition in the fourth quarter of 2024, BlackSky

Previous wording

As of June 30, 2025, our existing sources of liquidity included cash and cash equivalents and short-term investments. Our cash and cash equivalents excluding restricted cash totaled $22.6 million and $13.1 million as of June 30, 2025 and December 31, 2024, respectively, and our short-term investments totaled $71.2 million and $39.4 million as of June 30, 2025 and December 31, 2024, respectively. We have incurred year to date losses and generated negative cash flows from operations since our inception in September 2014. As of June 30, 2025, we had an accumulated deficit of $710.2 million.

Current wording

As of September 30, 2025, our existing sources of liquidity included cash and cash equivalents and short-term investments. Our cash and cash equivalents excluding restricted cash totaled $28.8 million and $13.1 million as of September 30, 2025 and December 31, 2024, respectively, and our short-term investments totaled $117.7 million and $39.4 million as of September 30, 2025 and December 31, 2024, respectively. We have incurred year to date losses and generated negative cash flows from operations since our inception in September 2014. As of September 30, 2025, we had an accumulated deficit of $725.6 million.

Previous wording

Our short-term liquidity as of June 30, 2025 was $94.9 million. We expect cash and cash equivalents and cash generated from operating activities to be sufficient to meet our working capital and capital expenditure needs for the foreseeable future. Our future long-term capital requirements will depend on many factors, including our Gen-3 satellite production needs, launch costs and increased insurance costs, as well as our growth rate, customer demand for capacity, the timing and extent of spending to support solution development efforts, the expansion of sales and marketing activities, the ongoing investments in technology infrastructure, the introduction of new and enhanced solutions, and the continuing market acceptance of our solutions.

Current wording

Our short-term liquidity as of September 30, 2025 was $147.6 million. We expect cash and cash equivalents and cash generated from operating activities to be sufficient to meet our working capital and capital expenditure needs for the foreseeable future. Our future long-term capital requirements will depend on many factors, including our Gen-3 satellite production needs, launch costs and insurance costs, as well as our growth rate, customer demand for capacity, the timing and extent of spending to support solution development efforts, the expansion of sales and marketing activities, the ongoing investments in technology infrastructure, the introduction of new and enhanced solutions, and the continuing market acceptance of our solutions.

Previous wording

We also have a vendor financing agreement for multiple satellite launches providing for $27.0 million, of which a portion will be drawn down equally per satellite launch and will be repaid quarterly on a pro-rata basis across a three-year period after each successful launch milestone. Payments will accrue interest at 12.6% per annum, beginning on each launch date. As of June 30, 2025, we have financed $16.5 million out of our $27.0 million vendor financing agreement, and we estimate we will repay approximately $5.3 million of short-term debt related to the agreement in the next 12 months. We may prepay at any time until the maturity date without premium or penalty.

Current wording

We also have a vendor financing agreement for multiple satellite launches providing for $27.0 million, of which a portion will be drawn down equally per satellite launch and will be repaid quarterly on a pro-rata basis across a three-year period after each successful launch milestone. Payments will accrue interest at 12.6% per annum, beginning on each launch date. As of September 30, 2025, we have financed $18.8 million out of our $27.0 million vendor financing agreement, and we estimate we will repay approximately $5.8 million of short-term debt related to the agreement in the next 12 months. We may prepay at any time until the maturity date without premium or penalty.

Previous wording

During the six months ended June 30, 2025, we issued and sold shares as a part of the Company's at-the-market (“ATM”) offering. We have the ability to offer and sell from time to time up to $75.0 million of newly issued shares in open trading windows at market prices through a designated broker dealer pursuant to an ATM offering program, of which we sold $42.5 million during the six months ended June 30, 2025.

Current wording

During the nine months ended September 30, 2025, we issued and sold shares as a part of the Company's at-the-market (“ATM”) offering. We have the ability to offer and sell from time to time up to $75.0 million of newly issued shares in open trading windows at market prices through a designated broker dealer pursuant to an ATM offering program, of which we sold $42.5 million during the nine months ended September 30, 2025.

Previous wording

We have current contract assets of $33.2 million and we anticipate receiving this amount in payments over the next 12 months as interim milestones on a few major customer contracts are met and expected to be billed, further enhancing our liquidity.

Current wording

We have current contract assets of $36.0 million and we anticipate receiving this amount in payments over the next 12 months as interim milestones on a few major customer contracts are met and expected to be billed, further enhancing our liquidity.

Previous wording

As of June 30, 2025, our current assets were $138.8 million, consisting primarily of short-term investments, contract assets, and cash and cash equivalents.

Current wording

As of September 30, 2025, our current assets were $201.0 million, consisting primarily of short-term investments, contract assets, and cash and cash equivalents.

Previous wording

As of June 30, 2025, our current liabilities were $37.4 million, consisting primarily of contract liabilities, the current portion of our debt, and accounts payable and accrued liabilities. Accordingly, we have sufficient cash and working capital to fund our short-term liquidity requirements.

Current wording

As of September 30, 2025, our current liabilities were $51.7 million, consisting primarily of contract liabilities, other current liabilities, and accounts payable and accrued liabilities. Accordingly, we have sufficient cash and working capital to fund our short-term liquidity requirements.

Previous wording

We anticipate that our most significant long-term liquidity and capital needs will relate to continued funding of operations, satellite development capital expenditures, launch capital expenditures, and ongoing investments to optimize our BlackSky Spectra software platform and corporate business and operational systems that will enable us to continue to scale the business efficiently and securely. Upcoming satellite development capital expenditures will include plans to expand our current high frequency monitoring constellation with multispectral, large-area collection satellites. These new satellites will be designed to support country scale digital mapping, navigation, maritime and 3D digital twin applications. We can manage the timing for a large part of our capital expenditures, including the design, build, and launch of our new satellites currently under development, to provide us with additional flexibility to optimize our long-term liquidity requirements. Macroeconomic conditions and credit markets could also impact the availability and/or the cost of potential future debt or equity financing.

Current wording

Upcoming satellite development capital expenditures will include plans to expand our current high frequency monitoring constellation with multispectral, large-area collection satellites. These new satellites will be designed to support country scale digital mapping, navigation, maritime and 3D digital twin applications. We can manage the timing for a large part of our capital expenditures, including the design, build, and launch of our new satellites currently under development, to provide us with additional flexibility to optimize our long-term liquidity requirements. Macroeconomic conditions and credit markets could also impact the availability and/or the cost of potential future debt or equity financing.

Previous wording

The following table provides a summary of cash flow data for the six months ended June 30, 2025 and 2024. Our short-term liquidity at June 30, 2025 was $94.9 million. Short-term investments of $71.2 million are not classified as cash, cash equivalents, or restricted cash.

Current wording

The following table provides a summary of cash flow data for the nine months ended September 30, 2025 and 2024. Our short-term liquidity at September 30, 2025 was $147.6 million. Short-term investments of $117.7 million are not classified as cash, cash equivalents, or restricted cash.

Previous wording

The change in net cash used in investing activities was primarily due to increased purchases of short-term investments in government securities of $57.0 million during the six months ended June 30, 2025 compared to $13.5 million of purchases during the six months ended June 30, 2024.

Current wording

The change in net cash used in investing activities was primarily due to increased purchases of short-term investments in government securities of $120.5 million during the nine months ended September 30, 2025 compared to $13.5 million of purchases during the nine months ended September 30, 2024.

Previous wording

We continue to have significant cash outflows for satellite procurement and launch related services and incur labor costs for internally developed capitalized software as we add innovative new services and tools to our BlackSky Spectra software platform and our corporate business and operational systems. The total amount paid for capital expenditures decreased during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. The decrease resulted from payments to LeoStella as a third party in 2024 as compared to the internal operation costs with LeoStella consolidated as a wholly-owned subsidiary in 2025. We expect for cash outflows for satellite production to increase as we continue to build out our Gen-3 constellation.

Current wording

We continue to have significant cash outflows for satellite procurement and launch related services and incur labor costs for internally developed capitalized software as we add innovative new services and tools to our BlackSky Spectra software platform and our corporate business and operational systems. The total amount paid for capital expenditures decreased during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. The decrease resulted from payments to BlackSky Satellite Systems, fka LeoStella, as a third party in 2024 as compared to the internal operation costs once the company was included in consolidated results in 2025 following the acquisition in the fourth quarter of 2024. We expect for cash outflows for satellite production to increase as we continue to build out our Gen-3 constellation.

Previous wording

The most significant impact on the change in net cash provided by financing activities was the receipt of $40.9 million in proceeds from our equity issuances, net of equity issuance costs, in the six months ended June 30, 2025 as compared to $2.9 million in the six months ended June 30, 2024. Our equity issuances during the six months ended June 30, 2025 consisted of the sale of 3.7 million shares under our ATM offering program which resulted in $42.5 million in gross proceeds, as compared to the sale of 0.3 million shares in the six months ended June 30, 2024, which resulted in $3.2 million in gross proceeds. The six months ended June 30, 2024 also included borrowings from our revolving credit facility of 20.0 million.

Current wording

Additionally, we received $40.8 million in proceeds from our equity issuances, net of equity issuance costs, in the nine months ended September 30, 2025 as compared to $47.3 million in the nine months ended September 30, 2024. Our equity issuances during the nine months ended September 30, 2025 consisted of the sale of 3.7 million shares under our ATM offering program which resulted in $42.5 million in gross proceeds, as compared to the sale of 0.5 million shares in the nine months ended September 30, 2024, which resulted in $4.8 million in gross proceeds. Our equity issuances during the nine months ended September 30, 2024 also included a public offering of 11.5 million shares of common stock resulting in $46.0 million in gross proceeds. We also received $10.8 million of proceeds from warrant exercises during the nine months ended September 30, 2025.

Previous wording

We evidence approval of the contract with the customer with dual signatures or approved purchase orders that detail the rights of each party and define payment terms. We have never had significant collection issues on contracts with new or recurring domestic and international government customers and we consider this historical trend when assessing the collectability risk for contracts with bespoke effective terms.

Current wording

We evidence approval of the contract with the customer with dual signatures or approved purchase orders that detail the rights of each party and define payment terms. We have never had significant collection issues on contracts with new or recurring domestic and international government customers and we consider this historical trend when assessing the collectability risk for contracts with bespoke effective terms. We also consider the probability of the customer's funding the total contract value as a component of the collectability risk.

Previous wording

Each customer contract sets forth the transaction price for the products and services purchased under the arrangement. We estimate any variable consideration, and whether the transaction price is constrained, upon execution of each contract. We may adjust the transaction price over time for any estimated constraints that become probable based on service level provisions within some of our customer purchase orders. For contracts with multiple performance obligations, we evaluate whether the stated selling prices for the products or services represent their standalone selling prices. When it is necessary to allocate the transaction price to multiple performance obligations, management uses the volume adjusted list price for imagery and analytics subscriptions and the expected cost plus a reasonable profit margin to estimate the standalone selling price of each product or service, which is mostly professional services.

Current wording

Each customer contract sets forth the transaction price for the products and services purchased under the arrangement. We estimate any variable consideration, and whether the transaction price is constrained, upon execution of each contract. Variable consideration is estimated as the most likely amount that is dependent upon the occurrence or non-occurrence of a future event. We continually review, and may reassess, the transaction price based on forecasted service level provisions within a limited amount of our customer purchase orders, costs incurred to date and historical experience. As a result, we may update our estimated constraints on revenue, which are generally on a prospective basis. For contracts with multiple performance obligations, we evaluate whether the stated selling prices for the products or services represent their standalone selling prices. When it is necessary to allocate the transaction price to multiple performance obligations, management uses the volume adjusted list price for imagery and analytics subscriptions and the expected cost plus a reasonable profit margin to estimate the standalone selling price of each product or service, which is mostly professional services.

Previous wording

We have classified the Private Placement Warrants issued in October 2019 and March 2023 and the Osprey pre-merger Class B common shares that were exchanged for shares of our Class A common stock (the "Sponsor Shares") as long-term liabilities in our unaudited condensed consolidated balance sheets as of June 30, 2025 and 2024. The Private Placement Warrants issued in October 2019 and the Sponsor Shares were initially recorded at fair value on the date of the merger and the Private Placement Warrants issued in March 2023 were recorded at fair value on the date of issuance. The Private Placement Warrants were recorded at fair value using a Black-Scholes option pricing model and the Sponsor Shares were recorded at fair value using a Monte Carlo simulation model. These liabilities are re-measured to fair value at each subsequent reporting date and recorded to (loss) gain on derivatives in our unaudited condensed consolidated statements of operations and comprehensive loss. We will continue to adjust the liability for changes in fair value until the financial instruments are exercised, redeemed, cancelled or released.

Current wording

We have classified the Private Placement Warrants issued in October 2019 and March 2023 and the Osprey pre-merger Class B common shares that were exchanged for shares of our Class A common stock (the "Sponsor Shares") as long-term liabilities in our unaudited condensed consolidated balance sheets as of September 30, 2025 and 2024. The Private Placement Warrants issued in October 2019 and the Sponsor Shares were initially recorded at fair value on the date of the merger and the Private Placement Warrants issued in March 2023 were recorded at fair value on the date of issuance. The Private Placement Warrants were recorded at fair value using a Black-Scholes option pricing model and the Sponsor Shares were recorded at fair value using a Monte Carlo simulation model. These liabilities are re-measured to fair value at each subsequent reporting date and immediately prior to each warrant exercise date. The remeasurements are recorded to gain (loss) on derivatives in our unaudited condensed consolidated statements of operations and comprehensive loss. We will continue to adjust the liability for changes in fair value until the financial instruments are exercised, redeemed, cancelled or released.