AST SpaceMobile, Inc. (“AST SpaceMobile”) (NASDAQ: ASTS), the
company building the first and only space-based cellular broadband
network accessible directly by everyday smartphones, and designed
for both commercial and government applications, is providing its
business update for the three months ended March 31, 2024.
“I am grateful for our global team's unwavering dedication and
hard work as we prepare for the launch of our first five commercial
satellites and initial commercial service," said Abel Avellan,
Chairman and CEO of AST SpaceMobile. "We are set up for an exciting
summer ahead as we push forward on all fronts of our business.”
Business Update
- On target for July or August delivery of 5 Block 1 satellites
to Cape Canaveral
- Signed milestone, 6-year definitive commercial agreement with
AT&T for SpaceMobile Service
- First 5 satellites allow U.S. nationwide non-continuous service
with 5,600+ cells in premium low-band spectrum
- Activities and discussions with government regulatory bodies,
including FCC, are advancing as expected
- Continue to advance discussions with additional strategic
partners, following the blueprint of commercial payments alongside
commercial agreements
First Quarter 2024 Financial Highlights
- As of March 31, 2024, we had cash, cash equivalents, and
restricted cash of $212.4 million. We have additional liquidity of
$51.5 million in gross proceeds available to draw under the Senior
Secured Credit Facility, subject to certain conditions and
approvals
- Total operating expenses for the first quarter of 2024 were
$56.0 million, including $24.9 million of depreciation and
amortization and stock-based compensation expense. This represents
a decrease of $4.9 million as compared to $60.9 million in the
fourth quarter of 2023, due to a $6.5 million decrease in research
and development costs and a $0.5 million decrease in engineering
services costs, offset by a $1.7 million increase in general and
administrative costs and a $0.4 million increase in depreciation
and amortization expense
- Total Adjusted operating expenses for the first quarter of 2024
were $31.1 million, a decrease of $7.5 million as compared to $38.6
million in the fourth quarter of 2023, due to a $6.5 million
decrease in research and development costs, a $0.6 million decrease
in Adjusted engineering services costs and a $0.4 million decrease
in Adjusted general and administrative costs(1)
- As of March 31, 2024, we have incurred approximately $326.4
million of gross capitalized property and equipment costs and
accumulated depreciation and amortization of $81.1 million. The
capitalized costs include costs of satellite materials for BlueBird
satellites, advance launch payments, BlueWalker 3 satellite,
assembly and integration facilities including assembly and test
equipment, and ground antennas
(1) See reconciliation of Adjusted operating expenses to Total
operating expenses, Adjusted engineering services costs to
Engineering services costs and Adjusted general and administrative
costs to General and administrative costs in the tables
accompanying this press release.
Non-GAAP Financial Measures
We refer to certain non-GAAP financial measures in this press
release, including Adjusted operating expenses, Adjusted
engineering services costs and Adjusted general and administrative
costs. We believe these non-GAAP financial measures are useful
measures across time in evaluating our operating performance as we
use these measures to manage the business, including in preparing
our annual operating budget and financial projections. These
non-GAAP financial measures that have no standardized meaning
prescribed by U.S. GAAP, and therefore have limits in their
usefulness to investors. Because of the non-standardized
definitions, these measures may not be comparable to the
calculation of similar measures of other companies and are
presented solely to provide investors with useful information to
more fully understand how management assesses performance. These
measures are not, and should not be viewed as, a substitute for
their most directly comparable GAAP measures. Reconciliation of
non-GAAP financial measures and the most directly comparable GAAP
financial measures are included in the tables accompanying this
press release.
Conference Call Information
AST SpaceMobile will hold a quarterly business update conference
call at 5:00 p.m. (Eastern Time) on Wednesday, May 15, 2024. The
call will be accessible via a live webcast on the Events page of
AST SpaceMobile’s Investor Relations website at
https://ast-science.com/investors/. 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, and designed for both commercial and government
applications. 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, X (Formerly 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 of the launch of the Block 1 Bluebird
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 and the
ability to enter into commercial agreements with other parties or
government entities; (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 April 1, 2024.
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 April 1, 2024. 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.
First Quarter Financial Results
AST SPACEMOBILE, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS (UNAUDITED)
(Dollars in thousands, except
share data)
March 31, 2024
December 31, 2023
ASSETS
Current
assets:
Cash and cash equivalents
$
209,973
$
85,622
Restricted cash
2,467
2,475
Prepaid expenses
5,033
4,591
Other current assets
22,036
14,194
Total current assets
239,509
106,882
Non-current
assets:
Property and equipment, net
245,284
238,478
Operating lease right-of-use assets,
net
12,796
13,221
Other non-current assets
4,139
2,311
TOTAL ASSETS
$
501,728
$
360,892
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current
liabilities:
Accounts payable
$
14,528
$
20,575
Accrued expenses and other current
liabilities
15,593
23,926
Current operating lease liabilities
1,505
1,468
Current portion of long-term debt
255
252
Total current liabilities
31,881
46,221
Non-current
liabilities:
Warrant liabilities
11,746
29,960
Non-current operating lease
liabilities
11,429
11,900
Long-term debt, net
160,827
59,252
Total liabilities
215,883
147,333
Commitments and contingencies
Stockholders'
Equity:
Class A Common Stock, $.0001 par value;
800,000,000 shares authorized; 138,153,310 and 90,161,309 shares
issued and outstanding as of March 31, 2024 and December 31, 2023,
respectively.
14
9
Class B Common Stock, $.0001 par value;
200,000,000 shares authorized; 39,747,447 and 50,041,757 shares
issued and outstanding as of March 31, 2024 and December 31, 2023,
respectively.
4
5
Class C Common Stock, $.0001 par value;
125,000,000 shares authorized; 78,163,078 shares issued and
outstanding as of March 31, 2024 and December 31, 2023,
respectively.
8
8
Additional paid-in capital
373,773
288,404
Accumulated other comprehensive income
121
227
Accumulated deficit
(209,392
)
(189,662
)
Noncontrolling interest
121,317
114,568
Total stockholders' equity
285,845
213,559
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY
$
501,728
$
360,892
AST SPACEMOBILE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in thousands, except
share and per share data)
For the Three Months ended
March 31,
2024
2023
Revenues
$
500
$
-
Operating
expenses:
Engineering services costs
19,511
16,483
General and administrative costs
12,287
9,857
Research and development costs
4,257
16,381
Depreciation and amortization
19,945
1,733
Total operating expenses
56,000
44,454
Other income
(expense):
Gain on remeasurement of warrant
liabilities
18,214
7,498
Interest (expense) income, net
(2,222
)
2,093
Other (expense) income, net
(2
)
(10,237
)
Total other income (expense),
net
15,990
(646
)
Loss before income tax expense
(39,510
)
(45,100
)
Income tax expense
(294
)
(116
)
Net loss before allocation to
noncontrolling interest
(39,804
)
(45,216
)
Net loss attributable to noncontrolling
interest
(20,074
)
(28,898
)
Net loss attributable to common
stockholders
$
(19,730
)
$
(16,318
)
Net loss per share attributable to holders
of Class A Common Stock
Basic and diluted
$
(0.16
)
$
(0.23
)
Weighted-average shares of Class A Common
Stock outstanding
Basic and diluted
121,447,138
71,845,206
AST SPACEMOBILE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)
(Dollars in thousands)
For the Three Months ended
March 31,
2024
2023
Net loss before allocation to
noncontrolling interest
$
(39,804
)
$
(45,216
)
Other comprehensive loss
Foreign currency translation
adjustments
(216
)
(128
)
Total other comprehensive loss
(216
)
(128
)
Total comprehensive loss before allocation
to noncontrolling interest
(40,020
)
(45,344
)
Comprehensive loss attributable to
noncontrolling interest
(20,184
)
(28,980
)
Comprehensive loss attributable to common
stockholders
$
(19,836
)
$
(16,364
)
AST SPACEMOBILE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in thousands)
For the Three Months ended
March 31,
2024
2023
Cash flows from operating activities:
Net loss before allocation to
noncontrolling interest
$
(39,804
)
$
(45,216
)
Adjustments to reconcile net loss before
noncontrolling interest to cash used in operating activities:
Depreciation and amortization
19,945
1,733
Gain on remeasurement of warrant
liabilities
(18,214
)
(7,498
)
Amortization of debt issuance costs
900
-
Stock-based compensation
4,933
2,474
Changes in operating assets and
liabilities:
-
-
Prepaid expenses and other current
assets
(8,306
)
(12,168
)
Accounts payable and accrued expenses
(8,396
)
5,553
Operating lease right-of-use assets and
operating lease liabilities
(8
)
6
Other assets and liabilities
828
17,383
Net cash used in operating activities
(48,122
)
(37,733
)
Cash flows from investing activities:
Purchase of property and equipment and
advance launch payments
(39,568
)
(15,388
)
Net cash used in investing activities
(39,568
)
(15,388
)
Cash flows from financing activities:
Proceeds from debt
110,000
-
Repayments of debt
(62
)
(60
)
Payment for debt issuance costs
(5,162
)
-
Proceeds from issuance of common stock,
net of issuance costs
107,718
-
Issuance of equity under employee stock
plan
-
96
Employee taxes paid for stock-based
compensation awards
(314
)
-
Net cash provided by financing
activities
212,180
36
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(147
)
(475
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
124,343
(53,560
)
Cash, cash equivalents and restricted
cash, beginning of period
88,097
239,256
Cash, cash equivalents and restricted
cash, end of period
$
212,440
$
185,696
Supplemental disclosure of cash flow
information:
Non-cash transactions:
Purchases of property and equipment in
accounts payable and accrued expenses
$
5,734
$
4,077
Right-of-use assets obtained in exchange
for operating lease liabilities
-
5,507
Cash paid for:
Interest
$
2,205
$
52
Income taxes, net
710
282
AST SPACEMOBILE, INC.
RECONCILIATION OF GAAP
REPORTED TO NON-GAAP ADJUSTED MEASURES (UNAUDITED)
(Dollars in thousands)
For the Three Months Ended
March 31, 2024
GAAP Reported
Stock-Based Compensation
Expense
Adjusted
Engineering services costs
$
19,511
$
(1,607
)
$
17,904
General and administrative costs
12,287
(3,326
)
8,961
Research and development costs
4,257
4,257
Depreciation and amortization
19,945
19,945
Total operating expenses
$
56,000
$
(4,933
)
$
51,067
Less: Depreciation and amortization
(19,945
)
Adjusted operating expenses
$
31,122
For the Three Months Ended
December 31, 2023
GAAP Reported
Stock-Based Compensation
Expense
Adjusted
Engineering services costs
$
19,992
$
(1,475
)
$
18,517
General and administrative costs
10,528
(1,219
)
9,309
Research and development costs
10,766
10,766
Depreciation and amortization
19,592
19,592
Total operating expenses
$
60,878
$
(2,694
)
$
58,184
Less: Depreciation and amortization
(19,592
)
Adjusted operating expenses
$
38,592
Adjusted operating expenses, Adjusted engineering services costs
and Adjusted general and administrative costs are alternative
financial measures used by management to evaluate our operating
performance as a supplement to our most directly comparable U.S.
GAAP financial measure. We define Adjusted operating expense as
Total operating expenses adjusted to exclude amounts of stock-based
compensation expense and depreciation and amortization expense and
define Adjusted engineering services costs and Adjusted general and
administrative costs as engineering services costs and general and
administrative costs adjusted to exclude stock-based compensation
expenses.
We believe Adjusted operating expenses, Adjusted engineering
services costs and Adjusted general and administrative costs are
useful measures across time in evaluating our operating performance
as we use these measures to manage the business, including in
preparing our annual operating budget and financial projections.
Adjusted operating expenses, Adjusted engineering services costs,
and Adjusted general and administrative costs are non-GAAP
financial measures that have no standardized meaning prescribed by
U.S. GAAP, and therefore have limits in their usefulness to
investors. Because of the non-standardized definitions, these
measures may not be comparable to the calculation of similar
measures of other companies and are presented solely to provide
investors with useful information to more fully understand how
management assesses performance. These measures are not, and should
not be viewed as, a substitute for their most directly comparable
GAAP measure of Total operating expenses, Engineering services
costs and General and administrative costs.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240515962345/en/
Investor Contact: Scott Wisniewski
investors@ast-science.com
Media Contact: Allison Eva Murphy Ryan 917-547-7289
ASTSpaceMobile@allisonpr.com
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