“Since our public market debut on
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 fromCape Canaveral during a window beginningMarch 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 ofAugust 16, 2021 , compared to 1.3 billion atMarch 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 SpacePark 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 ofJune 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 ofAugust 16, 2021 -
Incurred
$15.7 million of total investments in property and equipment, net of accumulated depreciation, as ofJune 30, 2021
Conference Call Information
About
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
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
Second Quarter 2021 Financial Results
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (dollars in thousands, except per share data) |
||||||||
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
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 |
|
|
|
|
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, |
|
|
- |
|
|
|
- |
|
Class A common stock, |
|
|
5 |
|
|
|
- |
|
Class B common stock, |
|
|
5 |
|
|
|
- |
|
Class C common stock, |
|
|
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 |
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (dollars in thousands, except per share data) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
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 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) (dollars in thousands) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
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 |
) |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (dollars in thousands) |
||||||||
|
|
|
|
|
||||
|
|
Six Months Ended |
|
|||||
|
|
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 |
|
|
- |
|
|
|
6,472 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210816005672/en/
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