10-KPeriod: FY2022

AST SpaceMobile, Inc. Annual Report, Year Ended Dec 31, 2022

Filed March 31, 2023For Securities:ASTS

Summary

AST SpaceMobile, Inc.'s 2022 10-K filing highlights its ongoing development of a space-based cellular broadband network designed to connect with standard mobile devices. The company has made significant progress with its BlueWalker 3 (BW3) test satellite, completing array deployment and commencing testing for cellular broadband communications. The focus is now shifting to the assembly and testing of the commercial BlueBird (BB) satellites, with the first five Block 1 BB satellites planned for launch in Q1 2024. Financially, AST SpaceMobile continues to incur substantial operating expenses, primarily in engineering, R&D, and general administration, as it scales its operations and infrastructure. The company generated minimal revenue in 2022 from its former subsidiary, Nano, which was sold in September 2022, and does not expect to generate revenue until the SpaceMobile Service is launched. AST SpaceMobile's liquidity remains a key focus, with $239.3 million in cash and cash equivalents as of December 31, 2022. However, the company estimates needing an additional $550 million to $650 million to fund operations and capital expenditures for its initial 25-satellite constellation. The company has access to equity financing through an Equity Line of Credit and an At-The-Market (ATM) Equity Program to supplement its liquidity.

Financial Statements
Beta

Key Highlights

  • 1AST SpaceMobile is actively developing a satellite-to-device cellular broadband network, with the BlueWalker 3 (BW3) test satellite undergoing initial testing.
  • 2The company plans to launch its first five commercial BlueBird (Block 1) satellites in the first quarter of 2024, with subsequent launches of Block 2 satellites planned.
  • 3Significant investments in engineering, R&D, and general administrative costs continue, reflecting the capital-intensive nature of satellite constellation development.
  • 4The company generated $13.8 million in revenue in 2022, primarily from its now-divested subsidiary Nano; no revenue is expected until the SpaceMobile Service launches.
  • 5AST SpaceMobile reported a net loss attributable to common stockholders of $31.6 million for 2022.
  • 6As of December 31, 2022, the company had $239.3 million in cash and cash equivalents.
  • 7The company estimates needing $550 million to $650 million to fund the development and operation of its initial 25-satellite constellation and has access to equity financing (Equity Line of Credit and ATM) for ongoing capital needs.

Frequently Asked Questions

AST SpaceMobile does not currently generate revenue from its SpaceMobile Service. The company expects to initiate a limited, non-continuous SpaceMobile Service in targeted geographical areas after the launch and deployment of its first five Block 1 BlueBird satellites in early 2024, with the aim of generating revenue thereafter. Prior to this, revenue was generated from its former subsidiary, Nano, which was sold in September 2022.

As of December 31, 2022, AST SpaceMobile had $239.3 million in cash and cash equivalents. The company estimates it will need to raise approximately $550 million to $650 million to fund the development and operation of its initial 25-satellite constellation. It has access to an Equity Line of Credit and an At-The-Market (ATM) Equity Program to raise additional capital.

Key milestones include the successful deployment of the communication array on the BlueWalker 3 (BW3) test satellite and ongoing testing. The company plans to launch its first five commercial BlueBird (Block 1) satellites in Q1 2024 and aims to launch Block 2 satellites starting in 2024. The ultimate goal is to deploy approximately 95 satellites for full service coverage.

AST SpaceMobile accounts for its outstanding warrants as liabilities that are remeasured at fair value each reporting period. Changes in the fair value of these warrants result in non-cash gains or losses recognized in the company's earnings, which can cause fluctuations in its financial results that are outside of its control.