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AST SpaceMobile(ASTS) - 2023 Q1 - Quarterly Report
ASTSAST SpaceMobile(ASTS)2023-05-14 16:00
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Financial Performance - Revenues for the three months ended March 31, 2023 were 0,adecreaseof1000, a decrease of 100% compared to 2,394,000 in the same period of 2022[145]. - Total operating expenses increased by 11,714,000,or3611,714,000, or 36%, to 44,454,000 for the three months ended March 31, 2023 compared to 32,740,000inthesameperiodof2022[145].−Researchanddevelopmentcostsroseby32,740,000 in the same period of 2022[145]. - Research and development costs rose by 8,100,000, or 98%, to 16,381,000forthethreemonthsendedMarch31,2023comparedto16,381,000 for the three months ended March 31, 2023 compared to 8,281,000 in the same period of 2022[150]. - Net loss attributable to common stockholders was 16,318,000forthethreemonthsendedMarch31,2023,anincreaseof5216,318,000 for the three months ended March 31, 2023, an increase of 52% from a net loss of 10,721,000 in the same period of 2022[145]. - Total other income (expense), net was (8,144,000)forthethreemonthsendedMarch31,2023,comparedtoincomeof8,144,000) for the three months ended March 31, 2023, compared to income of 15,000 in the same period of 2022[152]. - Net loss attributable to noncontrolling interest was 28,898,000forthethreemonthsendedMarch31,2023,comparedto28,898,000 for the three months ended March 31, 2023, compared to 27,182,000 in the same period of 2022[154]. Cash Flow and Capital Requirements - Cash and cash equivalents on hand as of March 31, 2023 were 185.7million,including185.7 million, including 0.7 million of restricted cash[155]. - Cash used in operating activities decreased to 37.7millionforQ12023from37.7 million for Q1 2023 from 47.5 million in Q1 2022, a reduction of 9.8million[167].−Cashusedininvestingactivitieswas9.8 million[167]. - Cash used in investing activities was 15.4 million in Q1 2023, down from 21.6millioninQ12022,reflectinga21.6 million in Q1 2022, reflecting a 6.2 million decrease[168]. - Cash provided by financing activities was 36thousandinQ12023,comparedto36 thousand in Q1 2023, compared to 130 thousand in Q1 2022, indicating a decrease in financing[170]. - The company believes existing cash and cash equivalents will be sufficient to meet anticipated cash requirements for the next 12 months[172]. - Future capital requirements will depend on various factors, including supply chain relationships and technological developments[172]. - The company may need to finance cash needs through equity offerings or debt financings, which could dilute stockholder ownership[173]. - The estimated capital expenditure required for the design, assembly, and launch of the first 5 Block 1 BB satellites is between 100millionand100 million and 110 million[156]. - Approximately 550millionto550 million to 650 million is needed to fund operating and capital expenditures necessary to design, assemble, and launch 20 Block 2 BB satellites[157]. Satellite Development and Launch Plans - The company has incurred approximately 92.5millionincapitalizedcostsrelatedtotheassembly,testing,anddeploymentoftheBW3testsatelliteasofMarch31,2023[125].−ThecompanyplanstolaunchfiveBlock1BBsatellitesinthefirstquarterof2024,withaLaunchServicesAgreementalreadyinplacewithSpaceX[126].−Thecompanyaimstoachievesubstantialserviceintargetedgeographicalareaswiththelaunchandoperationof25BBsatellitesandplanstoexpandtoapproximately95BBsatellitesforlong−termgoals[130].−ThenextgenerationofBBsatellites(Block2)isexpectedtolaunchin2024andwillfeaturetheAST5000ASICchipforimprovedperformance[128].−Thecompanyisactivelyhiringforassembly,integration,andtestingrolestosupporttheproductionofBBsatellites[133].−Thecompanyisdevelopingaphasedsatellitedeploymentplantominimizecapitalrequirementsandgeneratecashflowsfromoperationssooner[129].EconomicandOperationalConsiderations−Thecompanycontinuestomonitortheimpactofmacroeconomicconditions,includinginflationandsupplychainchallenges,onitsoperations[134].−Inflationhasnotsignificantlyimpactedthecompany′sfinancialconditiontodate,butfutureeffectsremainuncertain[171].−Thecompanydidnothaveanyoff−balancesheetarrangementsasofMarch31,2023[176].−Thecompanyisclassifiedasasmallerreportingcompanyandisnotrequiredtoprovideextensivemarketriskdisclosures[178].−Thecompanyrecognizedanestimatedliabilityof92.5 million in capitalized costs related to the assembly, testing, and deployment of the BW3 test satellite as of March 31, 2023[125]. - The company plans to launch five Block 1 BB satellites in the first quarter of 2024, with a Launch Services Agreement already in place with SpaceX[126]. - The company aims to achieve substantial service in targeted geographical areas with the launch and operation of 25 BB satellites and plans to expand to approximately 95 BB satellites for long-term goals[130]. - The next generation of BB satellites (Block 2) is expected to launch in 2024 and will feature the AST5000 ASIC chip for improved performance[128]. - The company is actively hiring for assembly, integration, and testing roles to support the production of BB satellites[133]. - The company is developing a phased satellite deployment plan to minimize capital requirements and generate cash flows from operations sooner[129]. Economic and Operational Considerations - The company continues to monitor the impact of macroeconomic conditions, including inflation and supply chain challenges, on its operations[134]. - Inflation has not significantly impacted the company's financial condition to date, but future effects remain uncertain[171]. - The company did not have any off-balance sheet arrangements as of March 31, 2023[176]. - The company is classified as a smaller reporting company and is not required to provide extensive market risk disclosures[178]. - The company recognized an estimated liability of 10.0 million as of March 31, 2023, due to unmet KPIs under the Rakuten Agreement[165].