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 second quarter ended June 30,
2022.
“We are thrilled to be on-site at Cape Canaveral, FL, taking our
BlueWalker 3 test satellite through final preparations and
continuation of testing for the upcoming planned launch to low
Earth Orbit in early to mid-September,” said Abel Avellan, Chairman
and CEO of AST SpaceMobile. “Alongside this milestone, the team is
hard at work in preparing our Texas headquarters and extension
facility for future production of our initial BlueBird
satellites.”
Business Highlights
- Completed final assembly, integration, and ground
transportation of the BlueWalker 3 test satellite to Cape
Canaveral, FL, with an upcoming planned launch window for early to
mid-September 1
- Once BlueWalker 3 is operational following in-orbit testing and
configuration, testing is planned with MNOs and equipment providers
on all 6 inhabited continents
- Next five satellites are under initial phase of component
construction, with most of the design based on similar technology
to BlueWalker 3, including FPGA (Field Programmable Gate Array),
reaction wheels and antennas, with launch planned in late 2023
- Commercial agreements in place with suppliers for most
components of the next five Block 1 BlueBird satellites and next
generation satellites
- Announced a five-year 4G LTE/5G technology agreement with Nokia
for the integration of Nokia’s AirScale System, which is planned to
be offered as part of SpaceMobile’s MNO infrastructure
- Grew portfolio of patent- and patent-pending claims to more
than 2,400 worldwide as of August 15, 2022, compared to more than
2,300 as of May 16, 2022
- Executed a definitive agreement to sell its majority ownership
stake in NanoAvionika UAB. The transaction values NanoAvionika UAB
at an enterprise valuation of €65 million and is expected to close
in the third quarter of 2022, subject to customary closing
conditions, including required regulatory review; the Company
expects to receive approximately $27 million in net proceeds at
closing
Second Quarter 2022 Financial Highlights
- Ended the second quarter with cash and cash equivalents of
$202.4 million
- Total operating expenses increased by $2.7 million to $35.4
million for the second quarter of 2022, as compared to $32.7
million in the first quarter of 2022, due to a $1.4 million
increase in general and administrative costs, $0.9 million increase
in research and development costs, $0.3 million increase in
engineering services, and $0.1 million increase in depreciation and
amortization
- As of June 30, 2022, the Company incurred $86.6 million of
capitalized costs (including launch cost and non-recurring
engineering costs) related to the construction and testing of the
BlueWalker 3 test satellite
- As of June 30, 2022, the Company capitalized approximately
$37.7 million in property and equipment primarily related to the
Texas facilities, satellite antennas, test equipment, and leasehold
improvements
1 The actual launch date remains subject to change and is
contingent on a number of factors including, but not limited to
testing, timely readiness of the launch vehicle and other unknowns
including, but not limited to, weather conditions or technical
problems.
Conference Call Information
AST SpaceMobile will hold a quarterly business update conference
call at 5:00 p.m. (Eastern Time) today, August 15, 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
YouTube, Twitter, LinkedIn and Facebook. Watch this video for an
overview of the SpaceMobile mission.
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. 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)
June 30, 2022
December 31, 2021
ASSETS
Current
assets:
Cash and cash equivalents
$
202,371
$
321,787
Restricted cash
-
2,750
Accounts receivable
3,569
2,173
Inventories
3,520
1,412
Prepaid expenses
7,020
2,831
Other current assets
16,446
4,850
Total current assets
232,926
335,803
Property and
equipment:
BlueWalker 3 satellite - construction in
progress
86,584
67,615
Property and equipment, net
37,725
28,327
Total property and equipment,
net
124,309
95,942
Other non-current
assets:
Operating lease right-of-use assets,
net
7,731
7,991
Goodwill
3,355
3,641
Other non-current assets
16,543
559
Total other non-current assets
27,629
12,191
TOTAL ASSETS
$
384,864
$
443,936
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current
liabilities:
Accounts payable
$
5,157
$
6,638
Accrued expenses and other current
liabilities
8,670
7,469
Deferred revenue
7,490
6,636
Current operating lease liabilities
858
634
Total current liabilities
22,175
21,377
Warrant liabilities
40,495
58,062
Non-current operating lease
liabilities
7,040
7,525
Long-term debt
4,880
5,000
Total liabilities
74,590
91,964
Commitments and contingencies
Stockholders'
Equity:
Class A Common Stock, $.0001 par value;
800,000,000 shares authorized; 51,945,785 and 51,730,904 shares
issued and outstanding as of June 30, 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 June 30, 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 June 30, 2022 and December 31, 2021,
respectively.
8
8
Additional paid-in capital
175,400
171,155
Accumulated other comprehensive loss
(526
)
(433
)
Accumulated deficit
(84,106
)
(70,461
)
Noncontrolling interest
219,488
251,693
Total stockholders' equity
310,274
351,972
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY
$
384,864
$
443,936
AST SPACEMOBILE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED)
(dollars in thousands, except
share and per share data)
For the Three Months Ended
June 30,
For the Six Months Ended June
30,
2022
2021
2022
2021
Revenues
$
7,264
$
2,773
$
9,658
$
3,735
Cost of sales (exclusive of items shown
separately below)
2,202
1,112
4,189
2,019
Gross profit
5,062
1,661
5,469
1,716
Operating
expenses:
Engineering services
11,999
5,784
23,716
10,731
General and administrative costs
13,075
9,157
24,718
14,693
Research and development costs
9,145
9,589
17,426
10,603
Depreciation and amortization
1,185
567
2,285
1,182
Total operating expenses
35,404
25,097
68,145
37,209
Other income
(expense):
Gain (loss) on remeasurement of warrant
liabilities
23,049
(41,677
)
17,567
(41,677
)
Other expense, net
(679
)
-
(664
)
(28
)
Total other income (expense),
net
22,370
(41,677
)
16,903
(41,705
)
Loss before income tax expense
(7,972
)
(65,113
)
(45,773
)
(77,198
)
Income tax expense
96
56
198
57
Net loss before allocation to
noncontrolling interest
(8,068
)
(65,169
)
(45,971
)
(77,255
)
Net loss attributable to noncontrolling
interest
(5,144
)
(45,191
)
(32,326
)
(45,697
)
Net loss attributable to common
stockholders
$
(2,924
)
$
(19,978
)
$
(13,645
)
$
(31,558
)
Net loss per share of common stock
attributable to common stockholders (1)
Basic and diluted
$
(0.06
)
$
(0.39
)
$
(0.26
)
$
(0.39
)
Weighted average shares used in computing
net loss per share of common stock (1)
Basic and diluted
51,868,658
51,729,704
51,814,888
51,729,704
(1) Earnings per share information excludes earnings for the
periods prior to the Business Combination, as it resulted in values
that would not be meaningful to the users of these condensed
consolidated financial statements. Refer to Note 14 in the Notes to
the Condensed Consolidated Financial Statements (Unaudited)
included in our Form 10-Q for the quarter ended June 30, 2022 for
further information.
AST SPACEMOBILE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
(dollars in thousands)
For the Three Months Ended
June 30,
For the Six Months Ended June
30,
2022
2021
2022
2021
Net loss before allocation to
noncontrolling interest
$
(8,068
)
$
(65,169
)
$
(45,971
)
$
(77,255
)
Other comprehensive loss
Foreign currency translation
adjustments
(166
)
(16
)
(598
)
(281
)
Total other comprehensive loss
(166
)
(16
)
(598
)
(281
)
Total comprehensive loss before allocation
to noncontrolling interest
(8,234
)
(65,185
)
(46,569
)
(77,536
)
Comprehensive loss attributable to
noncontrolling interest
(5,289
)
(45,199
)
(32,831
)
(45,773
)
Comprehensive loss attributable to common
stockholders
$
(2,945
)
$
(19,986
)
$
(13,738
)
$
(31,763
)
AST SPACEMOBILE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(dollars in thousands)
For the Six Months Ended June
30,
2022
2021
Cash flows from operating activities:
Net loss before allocation to
noncontrolling interest
$
(45,971
)
$
(77,255
)
Adjustments to reconcile net loss before
noncontrolling interest to cash used in operating activities:
Depreciation and amortization
2,285
1,182
(Gain) loss on remeasurement of warrant
liabilities
(17,567
)
41,677
Non-cash lease expense
267
371
Stock-based compensation
4,695
598
Issuance of common stock for commitment
shares
190
-
Changes in operating assets and
liabilities:
Accounts receivable
(1,613
)
748
Prepaid expenses and other current
assets
(16,332
)
(3,519
)
Inventory
(2,313
)
(1,163
)
Accounts payable and accrued expenses
2,838
112
Operating lease liabilities
(261
)
(220
)
Deferred revenue
1,393
1,828
Other assets and liabilities
(16,116
)
(2,731
)
Net cash used in operating activities
(88,505
)
(38,372
)
Cash flows from investing activities:
Purchase of property and equipment
(12,197
)
(6,998
)
BlueWalker 3 satellite - construction in
process
(21,403
)
(11,600
)
Net cash used in investing activities
(33,600
)
(18,598
)
Cash flows from financing activities:
Proceeds from business combination
-
456,420
Direct and incremental costs incurred for
the Business Combination
-
(39,542
)
Proceeds from warrant exercises
33
-
Proceeds from debt
230
-
Net cash provided by financing
activities
263
416,878
Effect of exchange rate changes on cash
and cash equivalents
(324
)
(73
)
Net (decrease) increase in cash, cash
equivalents and restricted cash
(122,166
)
359,835
Cash, cash equivalents and restricted
cash, beginning of period
324,537
42,777
Cash, cash equivalents and restricted
cash, end of period
$
202,371
$
402,612
Supplemental disclosure of cash flow
information:
Non-cash transactions:
Purchases of construction in process in
accounts payable
$
1,648
$
1,813
Purchases of property and equipment in
accounts payable
70
517
Right-of-use assets obtained in exchange
for operating lease liabilities
272
-
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version on businesswire.com: https://www.businesswire.com/news/home/20220815005681/en/
Investor Contact: Scott Wisniewski
investors@ast-science.com
Media Contact: Brandyn Bissinger press@ast-science.com +1
866 845 6521
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