10-QPeriod: Q2 FY2023

AST SpaceMobile, Inc. Quarterly Report for Q2 Ended Jun 30, 2023

Filed August 14, 2023For Securities:ASTS

Summary

AST SpaceMobile, Inc. (ASTS) reported a net loss attributable to common stockholders of $18.4 million for the three months ended June 30, 2023, a significant increase from $2.9 million in the same period last year, primarily due to escalating operating expenses, particularly in engineering services and depreciation. Total operating expenses more than doubled year-over-year, driven by increased payroll, AIT facility costs, and the commencement of depreciation for the BlueWalker 3 (BW3) test satellite. While the company has made substantial progress in its technological development, evidenced by successful BW3 test calls and achieving download speeds, it remains in the pre-revenue phase. The company's cash position decreased to $190.8 million from $238.6 million at the end of 2022, reflecting ongoing investment in satellite development and operations. AST SpaceMobile secured new financing post-quarter end, including a $100 million senior secured term loan facility and a $15 million loan commitment, indicating a continued need for capital to fund its ambitious constellation build-out. Investors should closely monitor the company's ability to secure future funding and achieve key development milestones for its BlueBird satellites to commence commercial operations.

Financial Highlights

43 data points
Beta

Revenue

$0.00

Net Income

-$18.41M

Total Assets

$408.47M

Cash & Equivalents

$190.84M

Free Cash Flow

-$57.84M

Financial Statements
Beta
Revenue$0
Cost of Revenue$0
Gross Profit$0
R&D Expenses$10.92M
Operating Expenses$58.07M
Interest Expense$100K
Net Income-$18.41M

Key Highlights

  • 1Net loss attributable to common stockholders widened significantly to $18.4 million for Q2 2023 compared to $2.9 million in Q2 2022.
  • 2Total operating expenses increased by 64% to $58.1 million for Q2 2023, driven by higher engineering services costs and the initiation of BW3 satellite depreciation.
  • 3Cash and cash equivalents decreased to $190.8 million as of June 30, 2023, down from $238.6 million at the end of 2022.
  • 4The BlueWalker 3 (BW3) test satellite successfully completed two-way voice calls and achieved 4G download speeds above 10 Mbps.
  • 5The company is actively preparing for the launch of its first five BlueBird (BB) satellites in Q1 2024, with significant capital expenditures planned.
  • 6AST SpaceMobile secured new debt financing post-quarter end, including a $100 million senior secured term loan facility and a $15 million loan commitment, to fund ongoing operations and development.
  • 7The company continues to incur substantial R&D and engineering expenses in preparation for commercial satellite broadband service deployment.

Frequently Asked Questions

AST SpaceMobile is currently in a pre-revenue phase. All revenue in the prior year periods was generated by its former subsidiary, Nano, which was sold in September 2022. The company does not expect to generate revenue until its SpaceMobile Service is launched following the deployment of its BlueBird satellites.

The company's liquidity primarily comes from its existing cash and cash equivalents, equity programs (Equity Line of Credit and ATM Equity Program), and recently secured debt financing. As of June 30, 2023, cash and cash equivalents stood at $190.8 million. Post-quarter end, the company secured a $100 million senior secured term loan facility and a $15 million loan commitment. However, significant future capital raises are anticipated to fund the full constellation build-out.

The BW3 test satellite has successfully completed two-way voice calls directly to standard smartphones and achieved 4G download speeds exceeding 10 Mbps, validating key technological capabilities. The company is actively assembling its first generation of commercial BlueBird (BB) satellites ('Block 1') and plans to launch five of them in the first quarter of 2024 to initiate limited commercial service.

Operating expenses have significantly increased due to higher engineering services costs (including payroll, stock-based compensation, and AIT facility costs), and the commencement of depreciation for the BW3 test satellite. Research and development costs have also increased as the company progresses on BB satellite subsystem development and ASIC design.