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
provided its business update for the second quarter of 2021.
“Since our public market debut on April 7th, we have made
significant industrial, commercial and organizational progress
towards delivering the SpaceMobile network,” said Abel Avellan,
Chairman and CEO of AST SpaceMobile. “The launch of our next
prototype spacecraft, BlueWalker 3, is expected in March 2022. We
are also working day and night as we make progress in finalizing
the design of our next-generation production spacecraft, BlueBird
1, with investments in our Midland, Texas facilities and global
supplier development.”
Abel added, “Today, we are also happy to announce that we are
finalizing a Memorandum of Understanding with MTN Group to begin
negotiations regarding testing alongside BlueWalker 3 for an
initial two countries. We have entered into agreements and
understandings with mobile network operators which collectively
cover approximately 1.5 billion mobile subscribers.”
Business Highlights
- Confirmed the BlueWalker 3 launch timing with SpaceX from Cape
Canaveral during a window beginning March 2022
- Continued investments in the buildout of our Midland, Texas
facilities and global supplier development
- Signed Memoranda of Understanding (“MOUs”) with Smart
Communications, Africell, MUNI, UT Mobile, LIBTELCO and others
- Increased to approximately 1.5 billion the number of
subscribers represented by mobile network operators who have
agreements and understandings with AST SpaceMobile as of August 16,
2021, compared to 1.3 billion at March 31, 2021
- Regulatory approval received in 6 countries to date, which
countries have a population of over 360 million
- Growth of 62 employees across all offices in the second quarter
of 2021, now with a team of 454, including 261 full-time employees,
49 full-time contractors and 144 employees of 3rd party engineering
service providers working on AST SpaceMobile
- Opened our UK Office at Space Park Leicester, which will house
business development, engineering and regulatory functions
Second Quarter 2021 Financial Highlights
- Ended the second quarter with cash and cash equivalents of
$402.6 million and no financial debt as of June 30, 2021
- Total operating expenses of $25.1 million for the second
quarter of 2021, compared to $12.1 million in the first quarter of
2021, primarily due to an increase in research and development
costs of $8.7 million
- Incurred $51.7 million of capitalized costs, including
non-recurring engineering relating to the BlueWalker 3 test
satellite, as of August 16, 2021
- Incurred $15.7 million of total investments in property and
equipment, net of accumulated depreciation, as of June 30,
2021
Conference Call Information
AST SpaceMobile will hold a quarterly business update conference
call at 5:00 p.m. (Eastern Time) today, August 16, 2021. 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 broadband
cellular network in space to operate directly with standard,
unmodified mobile devices based on our extensive IP and patent
portfolio. Our team of engineers and space scientists is 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. Follow AST SpaceMobile on Twitter
@AST_SpaceMobile and LinkedIn.
For additional information or to be added to our investor
relations email alerts list, please visit us 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
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 S-1 Registration Statement filed with the SEC on June 25, 2021
(File No. 333-257425) as well as the Risk Factors contained in Part
II, Item 1A of AST SpaceMobile’s Form 10-Q dated August 16,
2021.
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
S-1 Registration Statement filed with the SEC on June 25, 2021
(File No. 333-257425) as well as the Risk Factors contained in Part
II, Item 1A of AST SpaceMobile’s Form 10-Q dated August 16, 2021.
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.
Second Quarter 2021 Financial Results
AST SPACEMOBILE, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS (UNAUDITED)
(dollars in thousands, except
per share data)
June 30, 2021
December 31, 2020
ASSETS
Current
assets:
Cash and cash equivalents
$
402,612
$
42,777
Accounts receivable
1,273
2,081
Inventory
3,655
2,591
Prepaid expenses
5,578
1,249
Other current assets
1,474
2,234
Total current assets
414,592
50,932
Property and
equipment:
BlueWalker 3 Satellite - construction in
progress
38,659
27,013
Property and equipment, net
15,657
10,057
Total property and equipment,
net
54,316
37,070
Other non-current
assets:
Operating lease right-of-use assets,
net
6,661
7,045
Intangible assets, net
398
526
Goodwill
3,792
3,912
Other assets and deposits
2,891
160
Total other non-current assets,
net
13,742
11,643
TOTAL ASSETS
$
482,650
$
99,645
LIABILITIES AND
STOCKHOLDERS’ EQUITY
Current
liabilities:
Accounts payable
$
6,284
$
4,990
Accrued expenses and other current
liabilities
3,746
4,222
Deferred revenue
5,104
3,401
Current operating lease liabilities
470
504
Total current liabilities
15,604
13,117
Warrant liabilities
115,509
-
Non-current operating lease
liabilities
6,340
6,541
Total liabilities
137,453
19,658
Commitments and Contingencies
Stockholders’
Equity
Preferred stock, $.0001 par value,
100,000,000 shares authorized, 0 shares issued and outstanding as
of June 30, 2021
-
-
Class A common stock, $.0001 par value,
800,000,000 shares authorized, 51,729,704 shares issued and
outstanding as of June 30, 2021
5
-
Class B common stock, $.0001 par value,
200,000,000 shares authorized, 51,636,922 shares issued and
outstanding as of June 30, 2021
5
-
Class C common stock, $.0001 par value,
125,000,000 shares authorized, 78,163,078 shares issued and
outstanding as of June 30, 2021
8
-
Additional paid-in capital
168,297
-
Common equity (pre-combination)
-
117,573
Accumulated other comprehensive loss
(373
)
(168
)
Accumulated deficit
(71,466
)
(39,908
)
Noncontrolling interest
248,721
2,490
Total stockholders’ equity
345,197
79,987
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
482,650
$
99,645
AST SPACEMOBILE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED)
(dollars in thousands, except
per share data)
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Revenues
$
2,773
$
402
$
3,735
$
1,175
Cost of sales (exclusive of items shown
separately below)
(1,112
)
(772
)
(2,019
)
(1,801
)
Gross profit (loss)
1,661
(370
)
1,716
(626
)
Operating
expenses:
Engineering services
6,321
2,775
11,978
4,924
General and administrative costs
9,157
2,635
14,693
4,813
Research and development costs
9,052
-
9,356
43
Depreciation and amortization
567
185
1,182
305
Total operating expenses
25,097
5,595
37,209
10,085
Other income and
expense:
Changes in fair value of warrant
liabilities
(41,677
)
-
(41,677
)
-
Interest income
6
17
8
53
Interest expense
-
13
-
(9
)
Other expense, net
(6
)
(3
)
(36
)
(6
)
Total other (expense) income
(41,677
)
27
(41,705
)
38
Loss before income tax expense
(65,113
)
(5,938
)
(77,198
)
(10,673
)
Income tax expense
(56
)
-
(57
)
-
Net loss
(65,169
)
(5,938
)
(77,255
)
(10,673
)
Add: Net loss attributable to
noncontrolling interests
45,191
349
45,697
677
Net loss attributable to common
shareholders
$
(19,978
)
$
(5,589
)
$
(31,558
)
$
(9,996
)
Basic and diluted net loss per
share(1)
$
(0.39
)
N/A
$
(0.39
)
N/A
Basic and diluted weighted-average shares
used in computing net loss per share(1)
51,729,704
N/A
51,729,704
N/A
(1)
Earnings per share information has not
been presented for periods prior to the Business Combination (as
defined in Note 1 of AST SpaceMobile’s Form 10-Q filed August 16,
2021), as it resulted in values that would not be meaningful to the
users of these unaudited condensed consolidated financial
statements. Refer to Note 12 in the Form 10-Q for further
information.
AST SPACEMOBILE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)
(dollars in thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Net loss
$
(65,169
)
$
(5,938
)
$
(77,255
)
$
(10,673
)
Other comprehensive loss
Foreign currency translation
adjustments
(16
)
(212
)
(281
)
(40
)
Total other comprehensive loss
(16
)
(212
)
(281
)
(40
)
Total comprehensive loss
(65,185
)
(6,150
)
(77,536
)
(10,713
)
Add: Comprehensive loss attributable to
noncontrolling interest
45,199
463
45,773
689
Comprehensive loss attributable to common
shareholders
$
(19,986
)
$
(5,687
)
$
(31,763
)
$
(10,024
)
AST SPACEMOBILE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
(dollars in thousands)
Six Months Ended June
30,
2021
2020
Cash flows from operating activities:
Net loss
$
(77,255
)
$
(10,673
)
Adjustments to reconcile net loss to cash
used in operating activities:
Depreciation
1,074
200
Amortization of intangible assets
108
105
Change in fair value of warrant
liabilities
41,677
-
Change in the carrying amount of
right-of-use assets
371
141
Stock-based compensation
598
168
Changes in operating assets and
liabilities:
Accounts receivable
748
(323
)
Prepaid expenses and other current
assets
(3,519
)
(674
)
Inventory
(1,163
)
(743
)
Accounts payable and accrued expenses
112
736
Operating lease liabilities
(220
)
(141
)
Deferred revenue
1,828
1,838
Other assets and liabilities
(2,731
)
(23
)
Net cash used in operating activities
(38,372
)
(9,389
)
Cash flows from investing activities:
Purchase of property and equipment
(6,998
)
(1,269
)
BlueWalker 3 Satellite - construction in
process
(11,600
)
(8,008
)
Net cash used in investing activities
(18,598
)
(9,277
)
Cash flows from financing activities:
Proceeds from Business Combination
456,420
-
Direct and incremental costs incurred for
the Business Combination
(39,542
)
-
Repayment for founder bridge loan
-
(1,750
)
Proceeds from issuance of Series B
Preferred Stock
-
79,833
Issuance costs from issuance of Series B
Preferred Stock
-
(7,745
)
Net cash provided by financing
activities
416,878
70,338
Effect of exchange rate changes on
cash
(73
)
(42
)
Net increase in cash and cash
equivalents
359,835
51,630
Cash and cash equivalents, beginning of
period
42,777
26,498
Cash and cash equivalents, end of
period
$
402,612
$
78,128
Supplemental disclosure of cash flow
information:
Non-cash investing activities:
Purchases of construction in process in
accounts payable
$
1,813
$
945
Purchases of property and equipment in
accounts payable
517
219
Right-of-use assets obtained in exchange
for operating lease liabilities as of January 1, 2020 upon adoption
of ASC 842
-
6,472
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210816005672/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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