AST SpaceMobile, Inc. (“AST SpaceMobile”) (NASDAQ: ASTS), the
company building the first and only space-based cellular broadband
network accessible directly by standard mobile phones, today is
providing its business update for the first quarter ended March 31,
2022.
“Today, we are excited to report strong momentum across the
business. We continue to advance our industrialization activities,
with investments at our Midland facilities and in our supply chain,
towards our goal of producing up to 6 Bluebird production
satellites per month,” said Abel Avellan, Chairman and CEO of AST
SpaceMobile. “We also remain focused on the planned summer launch
of our next satellite, BlueWalker 3, having completed more than 700
tests to position the spacecraft and our system for mission
success.”
Business Highlights
- The BlueWalker 3 (“BW3”) satellite is substantially complete
having undergone over 700 tests of its capabilities and systems and
is targeted to launch in the Summer of 2022 subject to a number of
factors, including satisfactory and timely completion of all
testing
- Received an experimental license from the Federal
Communications Commission (FCC) authorizing BlueWalker 3
space-to-ground testing in the United States using 3GPP low-band
cellular frequencies and Q/V-band frequencies, subject to certain
restrictions
- Appointed Sean Wallace as Executive Vice President and Chief
Financial Officer, who most recently served as Chief Financial
Officer and Treasurer for Cogent Communications, one of the leading
internet service providers in the world with operations in 50
countries; Mr. Wallace assumed his new role on May 10, 2022
- Entered into a common stock purchase agreement with B. Riley
Principal Capital, LLC (“B. Riley”) that provides the right,
without obligation, to sell and issue up to $75.0 million of Class
A Common Stock over a period of 24 months to B. Riley at AST
SpaceMobile’s sole discretion, subject to certain limitations and
conditions
- Continued progress on clean room environment and facility
readiness at the extension production facility (“Site 2”) in Texas
for the highly automated assembly and testing line that will
support our production target of up to 6 satellites per month
- Announced a memorandum of understanding (“MOU”) with Globe
Telecom, Inc., a leading digital platform in the Philippines,
serving approximately 86 million wireless subscribers, bringing the
number of subscribers represented by mobile network operators who
have agreements and MOUs with AST SpaceMobile to more than 1.8
billion as of May 16, 2022
- Grew portfolio of patent- and patent-pending claims to more
than 2,300 worldwide as of May 16, 2022, compared to more than
2,100 as of March 31, 2022
First Quarter 2022 Financial Highlights
- Ended the first quarter with cash, cash equivalents, and
restricted cash of $255.1 million and $4.9 million of debt as of
March 31, 2022, incurred in connection with the purchase of the new
Texas facility
- Total operating expenses increased by $1.4 million to $32.7
million for the first quarter of 2022, as compared to $31.3 million
in the fourth quarter of 2021, due to a $0.9 million increase in
engineering services, $0.3 million increase in research and
development costs, and $0.2 million increase in depreciation and
amortization
- As of March 31, 2022, invested $82.7 million in the
construction and testing of the BlueWalker 3 satellite
- As of March 31, 2022, invested $32.2 million in property and
equipment primarily related to the Texas facilities, satellite
antennas, test equipment, and leasehold improvements
Conference Call Information
AST SpaceMobile will hold a quarterly business update conference
call at 5:00 p.m. (Eastern Time) today, May 16, 2022. The call will
be accessible via a live webcast on the Events page of AST
SpaceMobile’s Investor Relations website at
https://investors.ast-science.com/. An archive of the webcast will
be available shortly after the call.
About AST SpaceMobile
AST SpaceMobile is building the first and only global cellular
broadband network in space to operate directly with standard,
unmodified mobile devices based on our extensive IP and patent
portfolio. Our engineers and space scientists are on a mission to
eliminate the connectivity gaps faced by today's five billion
mobile subscribers and finally bring broadband to the billions who
remain unconnected. For more information, follow AST SpaceMobile on
Facebook, Twitter, LinkedIn and YouTube. Watch this video for an
overview of the SpaceMobile mission.
To receive alerts about upcoming events and press releases,
please sign up for our investor relations email alerts list at
https://investors.ast-science.com/ir-resources/email-alerts.
Forward-Looking Statements
This communication contains “forward-looking statements” that
are not historical facts, and involve risks and uncertainties that
could cause actual results of AST SpaceMobile to differ materially
from those expected and projected. These forward-looking statements
can be identified by the use of forward-looking terminology,
including the words “believes,” “estimates,” “anticipates,”
“expects,” “intends,” “plans,” “may,” “will,” “would,” “potential,”
“projects,” “predicts,” “continue,” or “should,” or, in each case,
their negative or other variations or comparable terminology.
These forward-looking statements involve significant risks and
uncertainties that could cause the actual results to differ
materially from the expected results. Most of these factors are
outside AST SpaceMobile’s control and are difficult to predict.
Factors that may cause such differences include, but are not
limited to: (i) expectations regarding AST SpaceMobile’s strategies
and future financial performance, including AST’s future business
plans or objectives, expected functionality of the SpaceMobile
Service, anticipated timing and level of deployment of satellites,
anticipated demand and acceptance of mobile satellite services,
prospective performance and commercial opportunities and
competitors, the timing of obtaining regulatory approvals, ability
to finance its research and development activities, commercial
partnership acquisition and retention, products and services,
pricing, marketing plans, operating expenses, market trends,
revenues, liquidity, cash flows and uses of cash, capital
expenditures, and AST’s ability to invest in growth initiatives;
(ii) the negotiation of definitive agreements with mobile network
operators relating to the SpaceMobile service that would supersede
preliminary agreements and memoranda of understanding; (iii) the
ability of AST SpaceMobile to grow and manage growth profitably and
retain its key employees and AST SpaceMobile’s responses to actions
of its competitors and its ability to effectively compete; (iv)
changes in applicable laws or regulations; (v) the possibility that
AST SpaceMobile may be adversely affected by other economic,
business, and/or competitive factors; (vi) the outcome of any legal
proceedings that may be instituted against AST SpaceMobile; and
(vii) other risks and uncertainties indicated in the Company’s
filings with the SEC, including those in the Risk Factors section
of AST SpaceMobile’s Form 10-K filed with the SEC on March 31,
2022.
AST SpaceMobile cautions that the foregoing list of factors is
not exclusive. AST SpaceMobile cautions readers not to place undue
reliance upon any forward-looking statements, which speak only as
of the date made. For information identifying important factors
that could cause actual results to differ materially from those
anticipated in the forward-looking statements, please refer to the
Risk Factors incorporated by reference into AST SpaceMobile’s Form
10-K filed with the SEC on March 31, 2022. AST SpaceMobile’s
securities filings can be accessed on the EDGAR section of the
SEC’s website at www.sec.gov [sec.gov]. Except as expressly
required by applicable securities law, AST SpaceMobile disclaims
any intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events or
otherwise.
AST SPACEMOBILE, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS (UNAUDITED)
(dollars in thousands, except
share data)
March 31, 2022
December 31, 2021
ASSETS
Current
assets:
Cash and cash equivalents
$
253,731
$
321,787
Restricted cash
1,379
2,750
Accounts receivable
2,593
2,173
Inventories
1,827
1,412
Prepaid expenses
3,537
3,214
Other current assets
9,862
4,467
Total current assets
272,929
335,803
Property and
equipment:
BlueWalker 3 satellite - construction in
progress
82,693
67,615
Property and equipment, net
32,157
28,327
Total property and equipment,
net
114,850
95,942
Other non-current
assets:
Operating lease right-of-use assets,
net
7,990
7,991
Intangible assets, net
205
242
Goodwill
3,546
3,641
Other non-current assets
15,066
317
Total other non-current assets
26,807
12,191
TOTAL ASSETS
$
414,586
$
443,936
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current
liabilities:
Accounts payable
$
6,917
$
6,638
Accrued expenses and other current
liabilities
7,295
7,469
Deferred revenue
7,800
6,636
Current operating lease liabilities
900
634
Total current liabilities
22,912
21,377
Warrant liabilities
63,544
58,062
Non-current operating lease
liabilities
7,312
7,525
Long-term debt
4,940
5,000
Total liabilities
98,708
91,964
Commitments and contingencies
Stockholders'
Equity:
Class A Common Stock, $.0001 par value;
800,000,000 shares authorized; 51,782,254 and 51,730,904 shares
issued and outstanding as of March 31, 2022 and December 31, 2021,
respectively.
5
5
Class B Common Stock, $.0001 par value;
200,000,000 shares authorized; 51,636,922 shares issued and
outstanding as of March 31, 2022 and December 31, 2021,
respectively.
5
5
Class C Common Stock, $.0001 par value;
125,000,000 shares authorized; 78,163,078 shares issued and
outstanding as of March 31, 2022 and December 31, 2021,
respectively.
8
8
Additional paid-in capital
172,708
171,155
Accumulated other comprehensive loss
(505
)
(433
)
Accumulated deficit
(81,182
)
(70,461
)
Noncontrolling interest
224,839
251,693
Total stockholders' equity
315,878
351,972
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY
$
414,586
$
443,936
AST SPACEMOBILE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED)
(dollars in thousands, except
share and per share data)
Three Months Ended March
31,
2022
2021
Revenues
$
2,394
$
951
Cost of sales (exclusive of items shown
separately below)
1,986
896
Gross profit
408
55
Operating
expenses:
Engineering services
11,740
5,659
General and administrative costs
11,619
5,537
Research and development costs
8,281
304
Depreciation and amortization
1,100
614
Total operating expenses
32,740
12,114
Other income
(expense):
Loss on remeasurement of warrant
liabilities
(5,482
)
-
Other income (expense), net
15
(28
)
Total other expense, net
(5,467
)
(28
)
Loss before income tax expense
(37,799
)
(12,087
)
Income tax expense
104
1
Net loss before allocation to
noncontrolling interest
(37,903
)
(12,088
)
Net loss attributable to noncontrolling
interest
(27,182
)
(508
)
Net loss attributable to common
stockholders
$
(10,721
)
$
(11,580
)
Net loss per share of common stock
attributable to common stockholders (1)
Basic and diluted
$
(0.21
)
N/A
Weighted average shares used in computing
net loss per share of common stock (1)
Basic and diluted
51,760,520
N/A
(1) Earnings per share information has not been presented for
periods prior to the Business Combination, as it resulted in values
that would not be meaningful to the users of these unaudited
condensed consolidated financial statements. Refer to Note 13 in
the Notes to the Condensed Consolidated Financial Statements
(Unaudited) included in our Form 10-Q for the quarter ended March
31, 2022 for further information.
AST SPACEMOBILE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
(dollars in thousands)
Three months ended March
31,
2022
2021
Net loss before allocation to
noncontrolling interest
$
(37,903
)
$
(12,088
)
Other comprehensive loss
Foreign currency translation
adjustments
(432
)
(263
)
Total other comprehensive loss
(432
)
(263
)
Total comprehensive loss before allocation
to noncontrolling interest
(38,335
)
(12,351
)
Comprehensive loss attributable to
noncontrolling interest
(27,542
)
(574
)
Comprehensive loss attributable to common
stockholders
$
(10,793
)
$
(11,777
)
AST SPACEMOBILE, INC. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED) (dollars in thousands)
Three months ended March
31,
2022
2021
Cash flows from operating activities:
Net loss before allocation to
noncontrolling interest
$
(37,903
)
$
(12,088
)
Adjustments to reconcile net loss before
noncontrolling interest to cash used in operating activities:
Depreciation
1,046
557
Amortization of intangible assets
54
57
Loss on remeasurement of warrant
liabilities
5,482
-
Non-cash lease expense
170
100
Stock-based compensation
2,254
356
Changes in operating assets and
liabilities:
Accounts receivable
(470
)
942
Prepaid expenses and other current
assets
(6,838
)
100
Inventory
(457
)
(443
)
Accounts payable and accrued expenses
2,684
1,273
Operating lease liabilities
(112
)
(94
)
Deferred revenue
1,333
725
Other assets and liabilities
(14,751
)
(12
)
Net cash used in operating activities
(47,508
)
(8,527
)
Cash flows from investing activities:
Purchase of property and equipment
(4,660
)
(2,728
)
BlueWalker 3 satellite - construction in
process
(16,907
)
(8,695
)
Net cash used in investing activities
(21,567
)
(11,423
)
Cash flows from financing activities:
Direct costs incurred for the Business
Combination
-
(595
)
Proceeds from warrant exercises
33
-
Proceeds from debt
97
-
Net cash provided by (used in) financing
activities
130
(595
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(482
)
(19
)
Net decrease in cash, cash equivalents and
restricted cash
(69,427
)
(20,564
)
Cash, cash equivalents and restricted
cash, beginning of period
324,537
42,777
Cash, cash equivalents and restricted
cash, end of period
$
255,110
$
22,213
Supplemental disclosure of cash flow
information:
Non-cash transactions:
Purchases of construction in process in
accounts payable
$
1,483
$
3,263
Purchases of property and equipment in
accounts payable
1,661
362
Right-of-use assets obtained in exchange
for operating lease liabilities
191
-
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Investors: Scott Wisniewski investors@ast-science.com
Media: Brandyn Bissinger press@ast-science.com +1 866 845
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