01—Abstract
Summary
Summary of the 10-K filed March 31, 2022. Cited figures are marked; the original filing is the authoritative source.
AST SpaceMobile's FY2021 10-K (filed March 31, 2022) describes a pre-revenue company building a planned constellation of 168 LEO satellites to deliver direct-to-standard-phone cellular broadband through partner mobile network operators (MNOs).
The company completed its SPAC merger with New Providence Acquisition Corp. on April 6, 2021, which brought in $416.9 milliona of net cash, and ended 2021 with $324.5 million of cash, cash equivalents and restricted cash. Management says this covers operations for at least 12 months, but the filing estimates roughly $1.9 billion of capital expenditure to complete the full constellation and $260-300 million for the first 20 satellites, so significant additional financing will be needed before commercial service. The first commercial BlueBird satellites are targeted for launch in 2023, with substantial global coverage after 110 satellites by end-2024.
Financially, 2021 revenue was $12.4 millionb, all from the 51%-owned subsidiary Nano (satellite manufacturing), up 108% year over year. Operating expenses rose sharply to $91.6 million, led by R&D, G&A and engineering costs. Net loss attributable to common stockholders was $30.6 million, though this was flattered by a $15.8 million non-cash gain on warrant liability remeasurement.
The consolidated net loss before noncontrolling interest was $73.3 millionc, and the accumulated deficit reached $70.5 million. Cash used in operations was $80.1 million. Governance and structural risks are significant.
Founder and CEO Abel Avellan controls about 88.3%d of the combined voting power through Class C super-voting shares, which makes the company a Nasdaq 'controlled company'. The Up-C structure leaves AST LLC's noncontrolling holders with about 71.5% of economic interest, and the Tax Receivable Agreement obligates the company to pay 85% of realized tax savings.
Core regulatory approvals are still pending, including the FCC market access application for V-band feeder links and the spectrum-sharing approvals needed to use MNO terrestrial frequencies. The BW3 test satellite is targeted for a summer 2022 launch.
02—Key points
Key Highlights
- Pre-revenue business model: no SpaceMobile Service revenue yet; 2021 revenue of $12.4M came entirely from the 51%-owned Nano satellite manufacturing subsidiary (up 108% YoY).
- Capital needs: ~$1.9B estimated to build and launch the 168-satellite constellation, plus $260-300M for the first 20 BlueBird satellites; cash of $324.5M at year-end 2021 is said to cover at least 12 months.
- Net loss attributable to common stockholders of $30.6M in 2021 (vs. $24.1M in 2020), helped by a $15.8M non-cash gain on warrant liability remeasurement; operating expenses rose to $91.6M from $27.3M.
- Operating cash burn of $80.1M in 2021 (vs. $22.8M in 2020), which management expects to increase in 2023-2024 before revenue starts.
- Commercial timeline: BW3 test satellite targeted for summer 2022 launch; first commercial BlueBird launches planned for 2023, with substantial global coverage after 110 satellites by end-2024.
- MNO partnerships: over 20 preliminary agreements covering ~1.8B subscribers (~1.0B under revenue-share terms), but definitive commercial agreements are still needed; Vodafone, American Tower and Rakuten are key partners.
- Governance concentration: CEO Abel Avellan controls ~88.3% of voting power via Class C shares, making AST a Nasdaq 'controlled company' with reduced governance requirements.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2021filed March 31, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $12.40M$5.97M | +107.9% |
| Cost of Revenue | $7.56M$3.02M | +150.0% |
| Gross Profit | $4.84M$2.94M | +64.6% |
| R&D Expenses | $23.44M$1.01M | +2218.5% |
| Operating Expenses | $91.59M$27.30M | +235.5% |
| Net Income | -$18.97M-$24.41M | +22.3% |
| EPS (Basic) | $-0.37$-6.13 | +94.0% |
| Shares Outstanding (Basic) | 51.73M8.60M | +501.6% |
05—Questions
Frequently Asked Questions
Has AST SpaceMobile generated meaningful revenue from its core satellite service?
No. The SpaceMobile Service has not generated revenue, and the company does not expect revenue until after commercial launch, with limited service possibly beginning after the first BlueBird satellites launch in 2023 and broader revenue starting in 2024. The $12.4M of 2021 revenue came from Nano, a 51%-owned satellite manufacturing subsidiary.
How much additional capital will AST need, and is current cash sufficient?
Current cash of $324.5M is expected to fund operations for at least 12 months. However, the company estimates about $260-300M for the first 20 BlueBird satellites and about $1.9B for the full 168-satellite constellation, so it expects to raise substantial additional capital through equity, debt, or commercial arrangements before commercial launch. The filing warns that financing may not be available on favorable terms or at all.
What is the impact of the warrant liabilities on reported earnings?
The company's 11.5M public and 6.1M private warrants (exercisable at $11.50) are recorded as liabilities at fair value, with changes flowing through earnings. In 2021 this produced a $15.8M non-cash gain that narrowed the reported loss. Future results may swing materially with the share price, since the company expects to record non-cash gains or losses each period.
Who controls AST SpaceMobile, and what does that mean for public shareholders?
CEO and founder Abel Avellan holds all Class C shares, giving him roughly 88.3% of combined voting power as of the filing date. That allows him to control director elections and major transactions, may deter a change in control, and makes AST a Nasdaq 'controlled company' that relies on exemptions from certain independent-director requirements. Public Class A holders have limited influence over corporate decisions.
06—Continue