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 fourth quarter and fiscal
year ended December 31, 2021.
“Since our last quarterly business update, our global team has
worked diligently to substantially complete the assembly of, and
critical testing milestones related to our next satellite,
BlueWalker 3. The satellite is on schedule for our planned summer
launch and all testing and integration are near completion,” said
Abel Avellan, Chairman and CEO of AST SpaceMobile.
Mr. Avellan added, “In our first year as a public company, we
have achieved important technical milestones to position ourselves
for the planned launch of BlueWalker 3, which will bring to a close
our initial development phase. In parallel, we’ve advanced our
production spacecraft design and procurement, made facility and
human capital investments to support high-volume manufacturing
capabilities, and furthered our relationships with mobile network
operators around the globe.”
Business Highlights Through March 31, 2022
- Substantially completed the assembly of, and critical testing
milestones for BlueWalker 3 in advance of its planned summer
launch
- Completed the purchase of a 100,000 square feet extension
facility in Texas, to support our commercial satellite
manufacturing capabilities
- Completed the first phase of renovations on the extension
facility and earmarked approximately $20.0 million of additional
investment
- Established new technology hub in Maryland to support Systems
Engineering, Network Operations Center (“NOC”) and Satellite
Operations Center (“SOC”)
- Increased to more than 1.8 billion the number of subscribers
represented by mobile network operators who have agreements and
memoranda of understanding with AST SpaceMobile as of March 31,
2022, compared to 1.5 billion at November 15, 2021
- Signed a non-binding memorandum of understanding with Orange
S.A., one of the world's leading telecommunications operators
serving more than 220 million mobile customers across the
globe
- Growth of 30 employees across all offices in the fourth quarter
of 2021, with a team of 566 as of December 31, 2021, including 386
full-time employees and consultants and 180 employees of 3rd party
engineering service providers working on AST SpaceMobile
- Grew portfolio of patent- and patent-pending claims to more
than 2,100 worldwide as of March 31, 2022
- Signed a multi-launch agreement, covering the planned summer
launch of BW3 and the launch of the first BlueBird satellite, and
providing a framework for future launches, and paid $22.75 million
in the first quarter of 2022 in connection therewith
Fourth Quarter and Full Year 2021 Financial
Highlights
- Ended the fourth quarter with cash, cash equivalents, and
restricted cash of $324.5 million and $5.0 million of debt as of
December 31, 2021, incurred in connection with the purchase of the
new Texas facility
- Total operating expenses increased by $64.3 million to $91.6
million for the year ended December 31, 2021, as compared to $27.3
million for the year ended December 31, 2020. Operating expenses
for the fiscal year ended December 31, 2020 and for the period from
January 1, 2021 up to April 6, 2021, the date of the Business
Combination, are of the accounting predecessor, AST LLC. After the
Business Combination, upon obtaining additional funding of $416.9
million, the Company significantly expanded its operations and
research and development initiatives, made significant progress on
the BW3 test satellite and design of the BB satellites, and
increased the headcount of employees and consultants, which
contributed to a significant increase in operating expenses during
2021
- Total operating expenses increased by $8.2 million to $31.3
million for the fourth quarter of 2021, as compared to $23.1
million in the third quarter of 2021, due to a $3.0 million
increase in research and development costs, $2.9 million increase
in engineering services, and $2.3 million increase in general and
administrative expenses
- Through December 31, 2021 and as of March 31, 2022, invested
$67.6 million and $80.7 million, respectively, in the construction
of BlueWalker 3 satellite. The BlueWalker 3 satellite is
substantially complete, and we do not expect to incur material
costs in future periods related to the BlueWalker 3 satellite
- As of December 31, 2021, invested $31.9 million in property and
equipment primarily related to the Texas facilities, satellite
antennas, test equipment, and leasehold improvements
Conference Call Information
AST SpaceMobile will hold a quarterly business update conference
call at 5:00 p.m. (Eastern Time) today, March 31, 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 Facebook, Twitter, LinkedIn and YouTube.
Watch this video for an overview of the SpaceMobile mission.
To receive alerts about upcoming events and press releases,
please sign up for our investor relations email alerts list 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 and preliminary agreements; (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, as well as the Risk Factors to be
included in AST SpaceMobile’s Annual Report on Form 10-K, to be
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
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,
as well as the Risk Factors to be included in AST SpaceMobile’s
Annual Report on Form 10-K, to be 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.
Fourth Quarter and Fiscal Year 2021
Financial Results
AST SPACEMOBILE, INC.
CONSOLIDATED BALANCE
SHEETS
(dollars in thousands, except
share data)
December 31,
2021
2020
ASSETS
Current
assets:
Cash and cash equivalents
$
321,787
$
42,777
Restricted cash
2,750
-
Accounts receivable
2,173
2,081
Inventories
1,412
2,591
Prepaid expenses
3,214
1,249
Other current assets
4,467
2,234
Total current assets
335,803
50,932
Property and
equipment:
BlueWalker 3 satellite - construction in
progress
67,615
27,013
Property and equipment, net
28,327
10,057
Total property and equipment,
net
95,942
37,070
Other non-current
assets:
Operating lease right-of-use assets,
net
7,991
7,045
Intangible assets, net
242
526
Goodwill
3,641
3,912
Other non-current assets
317
160
Total other non-current assets
12,191
11,643
TOTAL ASSETS
$
443,936
$
99,645
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current
liabilities:
Accounts payable
$
6,638
$
4,990
Accrued expenses and other current
liabilities
7,469
4,222
Deferred revenue
6,636
3,401
Current operating lease liabilities
634
504
Total current liabilities
21,377
13,117
Warrant liabilities
58,062
-
Non-current operating lease
liabilities
7,525
6,541
Long-term debt
5,000
-
Total liabilities
91,964
19,658
Commitments and contingencies
Stockholders'
Equity:
Class A Common Stock, $.0001 par value,
800,000,000 shares authorized, 51,730,904 shares issued and
outstanding as of December 31, 2021
5
-
Class B Common Stock, $.0001 par value,
200,000,000 shares authorized, 51,636,922 shares issued and
outstanding as of December 31, 2021
5
-
Class C Common Stock, $.0001 par value,
125,000,000 shares authorized, 78,163,078 shares issued and
outstanding as of December 31, 2021
8
-
Additional paid-in capital
171,155
-
Common equity (pre-combination)
-
117,573
Accumulated other comprehensive loss
(433
)
(168
)
Accumulated deficit
(70,461
)
(39,908
)
Noncontrolling interest
251,693
2,490
Total stockholders' equity
351,972
79,987
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY
$
443,936
$
99,645
AST SPACEMOBILE, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(dollars in thousands, except
share and per share data)
Year Ended December
31,
2021
2020
Revenues
$
12,405
$
5,967
Cost of sales (exclusive of items shown
separately below)
7,563
3,025
Gross profit
4,842
2,942
Operating expenses:
Engineering services
29,599
13,081
General and administrative costs
35,636
12,320
Research and development costs
23,440
1,011
Depreciation and amortization
2,913
887
Total operating expenses
91,588
27,299
Other income:
Gain on remeasurement of warrant
liabilities
15,766
-
Other income (expense), net
(1,950
)
83
Total other income, net
13,816
83
Loss before income tax expense
(72,930
)
(24,274
)
Income tax expense
331
131
Net loss before allocation to
noncontrolling interest
(73,261
)
(24,405
)
Net loss attributable to noncontrolling
interest
(42,708
)
(344
)
Net loss attributable to common
stockholders
$
(30,553
)
$
(24,061
)
Net loss per share of common stock
attributable to common stockholders (1)
Basic and diluted
$
(0.37
)
N/A
Weighted average shares used in computing
net loss per share of common stock (1)
Basic and diluted
51,729,785
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
these consolidated financial statements. Refer to Note 16 in the
Notes to the Consolidated Financial Statements included in our Form
10-K for the year ended December 31, 2021 for further
information.
AST SPACEMOBILE, INC.
CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (LOSS)
(dollars in thousands)
Year Ended December
31,
2021
2020
Net income (loss) before allocation to
noncontrolling interest
$
(73,261
)
$
(24,405
)
Other comprehensive income (loss)
Foreign currency translation
adjustments
(666
)
382
Total other comprehensive income
(loss)
(666
)
382
Total comprehensive income (loss) before
allocation to noncontrolling interest
(73,927
)
(24,023
)
Comprehensive income (loss) attributable
to noncontrolling interest
(43,109
)
(123
)
Comprehensive income (loss) attributable
to common stockholders
$
(30,818
)
$
(23,900
)
AST SPACEMOBILE, INC. CONSOLIDATED STATEMENTS OF
OPERATIONS (UNAUDITED) (dollars in thousands, except per
share data) Three Months Ended December 31,
2021
2020
Revenues
$
6,220
$
2,702
Cost of sales (exclusive of items shown separately
below)
3,441
391
Gross profit
2,779
2,311
Operating expenses:
Engineering services
10,842
4,655
General and administrative costs
11,605
4,682
Research and development costs
7,949
951
Depreciation and amortization
864
470
Total operating expenses
31,260
10,758
Other income: Gain on
remeasurement of warrant liabilities
18,042
-
Other income (expense), net
(2,106
)
25
Total other income, net
15,936
25
Loss before income tax expense
(12,545
)
(8,422
)
Income tax expense
258
131
Net loss before allocation to noncontrolling interest
(12,803
)
(8,553
)
Net loss attributable to noncontrolling interest
(9,693
)
(17
)
Net loss attributable to common stockholders
$
(3,110
)
$
(8,536
)
Net loss per share of common stock attributable to common
stockholders (1) Basic and diluted
(0.06
)
N/A
Weighted average shares used in computing net loss per share of
common stock (1) Basic and diluted
51,729,943
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 users of
these unaudited condensed consolidated financial statements.
AST SPACEMOBILE, INC. CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (dollars in
thousands) Three Months Ended December 31,
2021
2020
Net income (loss) before allocation to noncontrolling
interest
$
(12,803
)
$
(8,553
)
Other comprehensive income (loss) Foreign currency translation
adjustments
(172
)
128
Total other comprehensive income (loss)
(172
)
128
Total comprehensive income (loss) before allocation to
noncontrolling interest
(12,975
)
(8,425
)
Comprehensive income (loss) attributable to noncontrolling interest
(9,826
)
94
Comprehensive income (loss) attributable to common stockholders
$
(3,149
)
$
(8,519
)
AST SPACEMOBILE, INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(dollars in thousands)
Years Ended December
31,
2021
2020
Cash flows from operating activities:
Net loss before allocation to
noncontrolling interest
$
(73,261
)
$
(24,405
)
Adjustments to reconcile net loss before
noncontrolling interest to cash used in operating activities:
Depreciation
2,689
670
Amortization of intangible assets
224
217
(Gain) loss on remeasurement of warrant
liabilities
(15,766
)
-
Non-cash lease expense
574
219
Stock-based compensation
3,736
283
Changes in operating assets and
liabilities:
Accounts receivable
(220
)
(1,568
)
Prepaid expenses and other current
assets
(4,216
)
(1,485
)
Inventory
1,039
(2,236
)
Accounts payable and accrued expenses
2,091
3,476
Operating lease liabilities
(398
)
(219
)
Deferred revenue
3,572
2,235
Other assets and liabilities
(159
)
6
Net cash used in operating activities
(80,095
)
(22,807
)
Cash flows from investing activities:
Purchase of property and equipment
(15,080
)
(8,123
)
Purchase of intangible asset
-
(23
)
BlueWalker 3 satellite - construction in
process
(39,712
)
(22,258
)
Net cash used in investing activities
(54,792
)
(30,404
)
Cash flows from financing activities:
Proceeds from Business Combination
456,420
-
Direct costs incurred for the Business
Combination
(39,542
)
(775
)
Proceeds from warrant exercises
14
-
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
)
Proceeds from promissory note with common
shareholder
-
100
Proceeds from debt
49
-
Net cash provided by financing
activities
416,941
69,663
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(294
)
(173
)
Net increase in cash, cash equivalents and
restricted cash
281,760
16,279
Cash, cash equivalents and restricted
cash, beginning of period
42,777
26,498
Cash, cash equivalents and restricted
cash, end of period
$
324,537
$
42,777
Supplemental disclosure of cash flow
information:
Non-cash transactions:
Purchases of construction in process in
accounts payable
$
3,265
$
2,615
Purchases of property and equipment in
accounts payable
1,429
794
Right-of-use assets obtained in exchange
for operating lease liabilities as of January 1, 2020 upon adoption
of ASC 842
-
6,472
Right-of-use assets obtained in exchange
for operating lease liabilities
1,557
734
Purchases of property and equipment using
proceeds from long-term debt
5,000
-
Cash paid during the fiscal year for:
Interest
$
13
$
25
Income taxes, net
186
134
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220331005952/en/
AST SpaceMobile Investors: Scott Wisniewski
investors@ast-science.com
Media: Brandyn Bissinger press@ast-science.com +1 866 845
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