AST SpaceMobile Provides Second Quarter 2023 Business Update

 

August 14, 2023

AST SpaceMobile, Inc.is providing its business update for the second quarter ended June 30, 2023.

“AST SpaceMobile continues to make history. This quarter we achieved space-based 4G LTE cellular broadband capabilities to everyday smartphones, reaching speeds above 10 Mbps during BlueWalker 3 testing alongside AT&T, Vodafone and Nokia,” said Abel Avellan, Chairman and Chief Executive Officer of AST SpaceMobile. “We are now laser-focused on the manufacturing of our BlueBird satellites. The first five satellites are fully-funded with a planned launch in Q1 2024 as we target to offer initial commercial service in 2024.”

“On the back of the progress of our company technically, commercially and industrially, we have received multiple indications of interest for strategic investments with both equity-linked and non-dilutive commercial payments,” said Scott Wisniewski, Chief Strategy Officer of AST SpaceMobile. “Proceeds from this prospective capital raise are intended to fund the manufacturing and launch of additional BlueBird satellites launches beyond our first five commercial satellites.”

“We are happy to announce the completion of a comprehensive financing package providing us up to $179 million of cash and liquidity,” said Sean Wallace, Chief Financial Officer of AST SpaceMobile. “This financing package is comprised of an up to $100 million Senior Secured Credit Facility and a $15 million Equipment-Backed Loan completed today, in addition to a $57 million previously announced common stock offering in June 2023 and $7 million raised under the ATM program during the second quarter of 2023.” 

Business Update

History made, again, with space-based 4G LTE cellular broadband capabilities confirmed to everyday smartphones, reaching speeds above 10 Mbps during BlueWalker 3 testing alongside AT&T, Vodafone and Nokia

Continued commercial and regulatory progress, with 40+ MOUs and agreements with mobile network operators globally that have ~2.4 billion subscribers

Block 1 BlueBird program is fully-funded, with manufacturing underway and ramping ahead of the planned launch in Q1 2024 of our first five commercial satellites

Raised cash and liquidity of up to $179 million, with a comprehensive financing package of non-dilutive debt and equity designed to support strategic investment process

Up to $100 million Senior Secured Credit Facility with an initial gross draw of $48.5 million

$15 million Equipment-Backed Loan

$57 million of previously announced common stock offering in June 2023

$7 million raised under the ATM program during the second quarter of 2023

Received multiple indications of interest for strategic investment, including both equity-linked investments and non-dilutive commercial payments

Second Quarter 2023 Financial Highlights

As of June 30, 2023, we had cash, cash equivalents, and restricted cash of $191.5 million. After June 30, 2023, added incremental cash and liquidity of up to $115 million from an up to $100 million Senior Secured Credit Facility with an initial gross draw of $48.5 million in gross proceeds and a $15 million Equipment-Backed Loan.

Total Adjusted operating expenses for the second quarter of 2023 were $38.4 million, a decrease of $1.9 million as compared to $40.3 million in the first quarter of 2023, due to a $5.5 million decrease in research and development costs offset by a $3.3 million increase in Adjusted engineering services costs and a $0.3 million increase in Adjusted general and administrative costs.(1)

As of June 30, 2023, we have incurred approximately $194.1 million of gross capitalized property and equipment costs and accumulated depreciation and amortization of $22.5 million. The capitalized costs include costs of our BlueWalker 3 satellite, assembly and integration facilities including assembly and test equipment, satellite materials, advance launch payments and ground antennas.