AST SpaceMobile (ASTS) Provides Business Update and Second Quarter 2024 Results

Business Update

• First 5 commercial satellites on target for dedicated orbital launch in first half of September, each the largest-ever communications arrays to be deployed commercially in low Earth orbit
  • Final assembly and environmental testing completed successfully at AST SpaceMobile manufacturing facilities in Texas
  • Satellites are now at Cape Canaveral preparing for launch vehicle integration ahead of a confirmed launch date
  • Secured FCC approval with initial license for launch of first 5 commercial satellites
• Expanded the AST SpaceMobile commercial ecosystem, adding Verizon as strategic investor and customer, joining AT&T in the U.S.
  • Strategic investment by Verizon brings $100 million financial commitment, including $65 million ​of​ commercial prepayments and $35 million of convertible notes
  • Along with AT&T, which signed a definitive commercial agreement in May, enables nationwide ~100% geographical coverage target of the continental U.S. on premium 850 MHZ low-band spectrum
  • Continue to advance discussions with additional strategic partners, following the blueprint of commercial prepayments alongside commercial agreements
• First 5 commercial satellites capable of U.S. nationwide non-continuous service with 5,600+ cells in premium low-band spectrum
  • Expect initial nationwide, non-continuous service to be available with AT&T and Verizon beta test users following in-orbit service activation over the coming months
  • Coverage and service to increase as satellite constellation is expanded with Block 2 satellites
• ASIC chip tape-out phase completed with TSMC, expected to support up to 10x improvement of processing bandwidth per satellite
  • AST5000 ASIC is a novel, custom and low-power architecture developed over five years and approximately $45 million of development cost
• Initial Block 2 BlueBird planning and production of 17 satellites underway at AST SpaceMobile manufacturing facilities in Texas
  • Approximately 95% vertically integrated for manufacturing of satellite components and subsystems, for which we own or license the IP and control the manufacturing process
• Expanded U.S. Government relationship with initial in-orbit testing and additional early-stage contract awards to one of our prime contractors
  • Successful initial in-orbit and ground tests for non-communications applications, reflected in completed contractual milestones and revenue
  • Additional U.S. Government contract awards in recent months, with outlook for additional and larger sized contract awards

Second Quarter 2024 Financial Highlights

• As of June 30, 2024, we had cash, cash equivalents, and restricted cash of $287.6 million. We have additional liquidity of $51.5 million in gross proceeds available to draw under the Senior Secured Credit Facility, subject to certain conditions and approvals
• Total operating expenses for the second quarter of 2024 were $63.9 million, including $29.3 million of depreciation and amortization and stock-based compensation expense. This represents an increase of $7.9 million as compared to $56.0 million in the first quarter of 2024, due to a $5.6 million increase in general and administrative costs, a $1.7 million increase in engineering services costs, a $0.4 million increase in depreciation and amortization expense, and a $0.2 million increase in research and development costs
• Total Adjusted operating expenses for the second quarter of 2024 were $34.6 million, an increase of $3.5 million as compared to $31.1 million in the first quarter of 2024, due to a $2.0 million increase in Adjusted general and administrative costs, a $1.3 million increase in Adjusted engineering services costs and a $0.2 million increase in research and development costs⁽¹)
• As of June 30, 2024, we have incurred approximately $347.5 million of gross capitalized property and equipment costs and accumulated depreciation and amortization of $99.3 million. The capitalized costs include costs of satellite materials for BlueBird satellites, advance launch payments, BlueWalker 3 satellite, assembly and integration facilities including assembly and test equipment, and ground antenna

Full article (financial results in article): https://www.businesswire.com/news/home/20240814230496/en/AST-SpaceMobile-Provides-Business-Update-and-Second-Quarter-2024-Results