Company Updates & Weekly Activity (August 14th-18th)

Company Updates (NNOX, PHGE, BOC, ASTS) & Weekly Activity

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Company Updates

Before we jump into earnings breakdowns, I want to reiterate that I will be making this newsletter FREE after earnings season comes to an end. That way all readers are able to see FULL weekly content here on out. In addition to this, I will be spending more time on Savvy Trader. So, if you haven’t already, go ahead and subscribe… that way you receive daily updates on news/updates, buys, sells, cash deposits, etc. Let’s dive into earnings!

1. AST SpaceMobile (ASTS)

Within the realm of space technology, ASTS witnessed a groundbreaking achievement as 4G LTE cellular broadband capabilities were successfully tested in space. Everyday smartphones were used to confirm this feat, achieving remarkable speeds surpassing 10 Mbps during the BlueWalker 3 (BW3) trials. This historical event was the collaborative effort of industry giants like AT&T, Vodafone, and Nokia.

Strides in Commercial Ties and Regulatory Progress

ASTS has been fervent in its commercial outreach, securing over 40 MOUs and collaboration agreements with global mobile network operators. These operators boast a vast consumer base, collectively now having around 2.4B subscribers under their services (this is great).

Advancements in the BlueBird Program

The upcoming Block 1 BlueBird initiative is proceeding with momentum. Not only is the program fully financed, but manufacturing is also accelerating. This effort will culminate in the Q1 2024 launch of the first set of five commercial satellites (hopefully no more delays).

Financial Highlights and Strategic Investments

The financial period ending June 30, 2023, closed with the company holding a decent cash reserve, including cash equivalents and restricted cash, amounting to $191.5M. Post this date, the liquidity pool saw a further increment of approximately $115M, courtesy of a secured credit facility and an equipment-backed loan.

Breaking down the financial milestones:

• Secured a comprehensive financing package, aggregating to a liquidity boost of $179M. This package was an amalgamation of non-dilutive debt and equity components to bolster strategic investments.

• Instituted a Senior Secured Credit Facility of up to $100M, from which an initial amount of $48.5M was drawn.

• Raised $15M through an Equipment-Backed Loan.

• Generated $57M via a common stock offering in June 2023 and an additional $7M through the ATM program in Q2 2023.

Moreover, the company attracted multiple proposals for strategic investment. These spanned across equity-linked investments and non-dilutive commercial payments.

Operational Expenses and Investments in Infrastructure

Q2 2023 concluded with adjusted operating expenses standing at $38.4M. This showcased a dip of $1.9M in contrast to Q1 2023's $40.3M. The primary factor contributing to this reduction was a $5.5M drop in R&D expenses. This, however, was offset to some extent by a surge in adjusted engineering service costs (up by $3.3M) and a minor rise in adjusted general administrative costs.

As of the midpoint of 2023, the organization reported gross capitalized property and equipment costs of approximately $194.1M. Of this, the accumulated depreciation and amortization amounted to $22.5M. These figures encompass the costs associated with the BW3 satellite, satellite materials, assembly, testing facilities, advance launch payments, and ground antennas.

Here is what management had to say about this quarter:

Abel Avellan, Chairman and Chief Executive Officer of ASTS said, “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, 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.”

Scott Wisniewski, Chief Strategy Officer of ASTS said the following, “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, 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.”

Sean Wallace, Chief Financial Officer of ASTS said. “We are happy to announce the completion of a comprehensive financing package providing us up to $179 million of cash and liquidity, 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.”

My Take