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 third quarter of 2021.
“Since our last quarterly business update, we have made
significant progress and we are now entering the last stage of
build, integration and testing of our next satellite, BlueWalker
3,” said Abel Avellan, Chairman and CEO of AST SpaceMobile.
Abel added, “Today, we are very pleased to announce that we have
entered into an agreement to purchase an additional 100,000 square
foot facility in Midland, Texas, complementing our existing 85,000
square foot headquarters facility. This is an important step for
the industrialization of our technology, as this will provide us
the potential capacity to reach our production goal of six
satellites per month.”
Business Highlights
- Our next satellite, BlueWalker 3, a 693-square-foot phased
array for planned direct-to-cell phone connectivity at 4G/5G
speeds, is going through final integration and testing, with all
components for the build now on hand
- Midland, Texas headquarters buildout is completed with
approximately 35,000 square feet of clean room for assembly, as
well as test equipment to support production requirements
- Entered into an agreement to purchase an additional 100,000
square foot facility in Midland, Texas, which, together with our
headquarters facility, will provide a combined 185,000 square feet
of capacity
- Signed a lease for approximately 16,000 square feet of new
space for our Maryland Technology Center, intended to be the future
home of our Satellite Operations Center and Network Operations
Center
- Signed Memoranda of Understanding (“MOUs”) with MTN Group
(Africa, Middle East), YTL Communications (Malaysia) and Somcable
(Somaliland)
- Growth of 40 employees across all offices in the third quarter
of 2021, with a team of 509 as of September 30, 2021, including 301
full-time employees, 47 full-time contractors and 161 employees of
3rd party engineering service providers working on AST
SpaceMobile
Third Quarter 2021 Financial Highlights
- Ended the third quarter with cash and cash equivalents of
$360.4 million and no financial debt as of September 30, 2021
- Total operating expenses of $23.1 million for the third quarter
of 2021, compared to $25.1 million in the second quarter of 2021,
primarily due to a decrease in research and development costs of
$4.7 million, partially offset by $2.2 million increase in
engineering services, $0.4 million in depreciation and
amortization, and $0.1 million in general and administration
expenses
- As of September 30, 2021, invested $56.7 million in the
construction of BlueWalker 3 satellite, which includes
non-recurring engineering development cost, satellite componentry,
and launch cost
- As of September 30, 2021, invested $19.9 million in property
and equipment, net of accumulated depreciation, primarily in the
buildout of the headquarters facility in Midland, Texas
Conference Call Information
AST SpaceMobile will hold a quarterly business update conference
call at 5:00 p.m. (Eastern Time) today, November 15, 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 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 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.
Third Quarter 2021 Financial Results
AST SPACEMOBILE, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS (UNAUDITED)
(dollars in thousands, except
per share data)
September 30, 2021
December 31, 2020
ASSETS
Current
assets:
Cash and cash equivalents
$
360,390
$
42,777
Accounts receivable
1,282
2,081
Inventory
2,726
2,591
Prepaid expenses
4,119
1,249
Other current assets
2,072
2,234
Total current assets
370,589
50,932
Property and
equipment:
BlueWalker 3 Satellite - construction in
progress
56,677
27,013
Property and equipment, net
19,909
10,057
Total property and equipment,
net
76,586
37,070
Other non-current
assets:
Operating lease right-of-use assets
6,783
7,045
Intangible assets, net
335
526
Goodwill
3,704
3,912
Other assets and deposits
3,010
160
Total other non-current assets
13,832
11,643
TOTAL ASSETS
$
461,007
$
99,645
LIABILITIES AND
STOCKHOLDERS’ EQUITY
Current
liabilities:
Accounts payable
$
6,656
$
4,990
Accrued expenses and other current
liabilities
3,377
4,222
Deferred revenue
4,850
3,401
Current operating lease liabilities
495
504
Total current liabilities
15,378
13,117
Warrant liabilities
76,108
-
Non-current operating lease
liabilities
6,433
6,541
Total liabilities
97,919
19,658
Commitments and contingencies (Note
6)
-
Stockholders’
Equity
Class A common stock, $.0001 par value,
800,000,000 shares authorized, 51,729,704 shares issued and
outstanding as of September 30, 2021
5
-
Class B common stock, $.0001 par value,
200,000,000 shares authorized, 51,636,922 shares issued and
outstanding as of September 30, 2021
5
-
Class C common stock, $.0001 par value,
125,000,000 shares authorized, 78,163,078 shares issued and
outstanding as of September 30, 2021
8
-
Common stock
Additional paid-in capital
169,385
-
Common equity (pre-combination)
-
117,573
Accumulated other comprehensive loss
(394
)
(168
)
Accumulated deficit
(67,351
)
(39,908
)
Noncontrolling interest
261,430
2,490
Total stockholders’ equity
363,088
79,987
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
461,007
$
99,645
AST SPACEMOBILE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED)
(dollars in thousands, except
per share data)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021
2020
2021
2020
Revenues
$
2,450
$
2,090
$
6,185
$
3,265
Cost of sales (exclusive of items shown
separately below)
2,103
833
4,122
2,634
Gross profit
347
1,257
2,063
631
Operating
expenses:
Engineering services
8,026
3,502
18,757
8,426
General and administrative costs
9,331
2,825
24,031
7,638
Research and development costs
4,888
17
15,491
60
Depreciation and amortization
867
112
2,049
417
Total operating expenses
23,112
6,456
60,328
16,541
Other income
(expense):
Changes in fair value of warrant
liabilities
39,401
-
(2,276
)
-
Interest income, net
4
14
12
58
Other income (expense), net
180
4
144
(2
)
Total other income (expense),
net
39,585
18
(2,120
)
56
Income (loss) before income tax
expense
16,820
(5,181
)
(60,385
)
(15,854
)
Income tax expense
16
-
73
-
Net income (loss) before allocation to
noncontrolling interest
16,804
(5,181
)
(60,458
)
(15,854
)
Net income (loss) attributable to
noncontrolling interest
12,689
350
(33,015
)
(327
)
Net income (loss) attributable to
common stockholders
$
4,115
$
(5,531
)
$
(27,443
)
$
(15,527
)
Net income (loss) per share of common
stock attributable to common stockholders (1)
Basic
$
0.08
N/A
$
(0.31
)
N/A
Diluted
$
0.07
N/A
$
(0.31
)
N/A
Weighted average shares used in computing
net income (loss) per share of common stock (1)
Basic
51,729,704
N/A
51,729,704
N/A
Diluted
51,839,841
N/A
51,729,704
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 readers of
the unaudited condensed consolidated financial statements. Refer to
Note 12 in the Notes to the Condensed Consolidated Financial
Statements (Unaudited) included in our Form 10-Q for the quarter
ended September 30, 2021 for further information.
AST SPACEMOBILE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
(dollars in thousands)
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2021
2020
Net income (loss) before allocation to
noncontrolling interest
$
16,804
$
(5,181
)
$
(60,458
)
$
(15,854
)
Other comprehensive (loss) income
Foreign currency translation
adjustments
(220
)
294
(494
)
254
Total other comprehensive (loss)
income
(220
)
294
(494
)
254
Total comprehensive income (loss) before
allocation to noncontrolling interest
16,584
(4,887
)
(60,952
)
(15,600
)
Comprehensive income (loss) attributable
to noncontrolling interest
12,490
472
(33,283
)
(217
)
Comprehensive income (loss) attributable
to common stockholders
$
4,094
$
(5,359
)
$
(27,669
)
$
(15,383
)
AST SPACEMOBILE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
(dollars in thousands)
Nine Months Ended September
30,
2021
2020
Cash flows from operating activities:
Net loss before allocation to
noncontrolling interest
$
(60,458
)
$
(15,854
)
Adjustments to reconcile net loss before
noncontrolling interest to cash used in operating activities:
Depreciation
1,878
251
Amortization of intangible assets
171
166
Change in fair value of warrant
liabilities
2,276
-
Non-cash lease expense
505
221
Stock-based compensation
1,899
409
Changes in operating assets and
liabilities:
Accounts receivable
710
(406
)
Prepaid expenses and other current
assets
(2,700
)
(1,183
)
Inventory
(282
)
(1,613
)
Accounts payable and accrued expenses
(1,069
)
3,310
Operating lease liabilities
(354
)
(221
)
Deferred revenue
1,662
1,981
Other assets and liabilities
(2,850
)
(122
)
Net cash used in operating activities
(58,612
)
(13,061
)
Cash flows from investing activities:
Purchase of property and equipment
(11,293
)
(3,710
)
BlueWalker 3 Satellite - construction in
process
(29,201
)
(17,007
)
Net cash used in investing activities
(40,494
)
(20,717
)
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
(159
)
16
Net increase in cash and cash
equivalents
317,613
36,576
Cash and cash equivalents, beginning of
period
42,777
26,498
Cash and cash equivalents, end of
period
$
360,390
$
63,074
Supplemental disclosure of cash flow
information:
Non-cash transactions:
Purchases of construction in process in
accounts payable
$
2,266
$
1,163
Purchases of property and equipment in
accounts payable
1,306
-
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/20211115006200/en/
Investor Contact: Scott Wisniewski investors@ast-science.com
Media Contact: Brandyn Bissinger press@ast-science.com +1 866 845
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