10-K/APeriod: FY2022

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

Filed May 1, 2023For Securities:ASTS

Summary

This 10-K filing for AST SpaceMobile, Inc. (ASTS) focuses on the company's corporate governance, executive compensation, and security ownership as of May 1, 2023. The report details the composition and responsibilities of the Board of Directors and its committees, highlighting the expertise of key individuals. It provides an overview of executive compensation for the Named Executive Officers (NEOs) in 2022, with a significant portion tied to long-term equity incentives, and notes the unique compensation structure of the CEO. The filing also outlines the significant equity holdings of major stakeholders like Rakuten, Invesat, and Vodafone, as well as the ownership by directors and executive officers. The structure of the company's common stock, with multi-class voting rights, is also detailed. Key relationships and related transactions are disclosed, including commercial agreements with strategic partners such as Vodafone, American Tower, and Rakuten, which are crucial for the development and deployment of AST SpaceMobile's satellite-based communication services. These agreements often include exclusivity clauses, revenue-sharing models, and commitments for ground infrastructure. The company also reports on the fees paid to its independent registered public accounting firm, KPMG, for audit and tax services.

Financial Highlights

48 data points
Beta

Revenue

$13.82M

51.4% Gross Margin

Net Income

-$31.64M

-228.9% Net Margin

Total Assets

$438.37M

Cash & Equivalents

$238.59M

Free Cash Flow

-$213.75M

Financial Statements
Beta
Revenue$13.82M
Cost of Revenue$6.71M
Gross Profit$7.11M
R&D Expenses$45.62M
Operating Expenses$159.59M
Interest Expense$200K
Net Income-$31.64M

Key Highlights

  • 1The company has a robust Board of Directors with significant industry experience, including individuals from telecommunications, media, and finance sectors.
  • 2Executive compensation is heavily weighted towards long-term equity incentives (RSUs), designed to align executive interests with shareholder value, with the CEO receiving no base salary.
  • 3Significant strategic partnerships are in place with Vodafone, American Tower, and Rakuten, involving commercial agreements for service deployment and infrastructure, which are critical for the company's business model.
  • 4The company's capital structure includes multiple classes of common stock (Class A, B, and C) with varying voting rights, giving the CEO significant voting control.
  • 5There is a contingent liability of $10.0 million related to not meeting certain KPIs under the Rakuten Agreement by June 2023, though discussions for amendment are ongoing.
  • 6The Audit Committee is actively involved in overseeing financial reporting, internal controls, and the relationship with independent auditors (KPMG).
  • 7Director compensation includes both annual cash retainers and equity awards, with specific compensation structures for committee chairs and members.

Frequently Asked Questions

AST SpaceMobile has three classes of common stock: Class A, Class B, and Class C. Class A and B shares have one vote per share. Class C shares, primarily held by the CEO, Abel Avellan, have enhanced voting rights (up to 10 votes per share) until a 'Sunset Date,' giving Mr. Avellan significant overall voting control (approximately 86.5% as of March 31, 2023). Major shareholders include Rakuten, Invesat, and Vodafone.

The filing details significant commercial agreements with Vodafone (exclusivity, revenue share, ground station infrastructure), American Tower (gateway facilities, managed services), and Rakuten (network capabilities in Japan, exclusive rights). These partnerships are fundamental to the deployment and commercialization of AST SpaceMobile's satellite-to-phone services and often involve mutual commitments and preferential terms.

Executive compensation includes base salary, bonuses (for some officers), and substantial long-term equity incentives in the form of Restricted Stock Units (RSUs). Notably, CEO Abel Avellan has historically foregone a base salary and does not receive one. The compensation committee aims to align executive interests with shareholder value through these equity awards, with vesting often tied to service and performance conditions.

Yes, there is a potential $10.0 million liability related to the Rakuten Agreement if Key Performance Indicators (KPIs) for service deployment in Japan are not met by June 2023. The company is in discussions with Rakuten to amend or waive this obligation, but there is no assurance of an agreement.