Katapult (KPLT) 10% Holder Exercises Warrants and Sells Shares

What Happened

• HHCF Series 21 Sub, LLC (reported as a 10% owner) exercised two warrants on Aug 10, 2026 to purchase 486,264 and 160,000 shares of Katapult common stock at $0.01 per share. The exercises were cashless: the issuer withheld 765 and 252 shares to cover the exercise price, issuing 485,499 and 159,748 shares to HHCF Sub (total issued = 645,247). The filing also reports dispositions related to the warrants (cancelled derivatives) and multiple share sales/disposals on Aug 10–11, 2026 — including two large disposals of 2,840,910 and 2,633,890 shares on Aug 11 (totaling 5,474,800 shares). The small withholding-share sales on Aug 10 were reported at $6.36 per share (proceeds $4,865 and $1,603). Proceeds for the large Aug 11 disposals are listed as N/A in the filing.

Key Details

• Transaction dates: Aug 10–11, 2026.
• Exercises: 486,264 shares @ $0.01 and 160,000 shares @ $0.01 (cashless exercise resulted in issuance of 485,499 and 159,748 shares after withholding).
• Small withholding sales (to cover exercise price): 765 shares and 252 shares sold at $6.36 (proceeds reported $4,865 and $1,603).
• Large disposals: 2,840,910 shares and 2,633,890 shares reported on Aug 11 (proceeds/prices shown as N/A in the Form 4).
• Derivative entries: the exercised warrants themselves are reported as disposed (cancelled) at $0.00 in the filing (standard when a warrant is exercised).
• Shares owned after transaction: not stated in this Form 4.
• Filing timeliness: filed Aug 12, 2026 reporting transactions from Aug 10–11 — no late filing flag indicated.
• Ownership/structure footnote: HHCF Series 21 Sub is a wholly owned subsidiary of Holdco and ultimately of Hawthorn Horizon Credit Fund LLC, Series 21; the related entities disclaim beneficial ownership except for any pecuniary interest.

Context

• Cashless exercise: The warrants were exercised on a cashless basis, meaning some warrant shares were withheld/sold to cover exercise cost rather than paying cash — those withheld shares are the small sales at $6.36.
• Large Aug 11 disposals occurred the same day the filing notes the closing of related mergers (Aaron’s and CCFI) and related exchange/purchase mechanics; the footnotes reference merger closings and share exchanges, which likely relate to the Aug 11 transactions (the Form 4 lists proceeds as N/A so the filing does not show a public sale price).
• Note for retail investors: HHCF Sub is an institutional 10% holder (not an individual company insider). Exercises followed by disposals are often part of financing, merger, or structural transactions and do not necessarily signal the trading views of a corporate officer.