AST SpaceMobile, Inc. [ASTS] Filings

10-Q 1 asts-20240930.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File No. 001-39040

    AST SPACEMOBILE, INC.

   

    (Exact name of registrant as specified in its charter)

   

    Delaware

    84-2027232

    (State or other jurisdiction of 
incorporation or organization)

    (I.R.S. Employer 
Identification No.)


Midland Intl. Air & Space Port
2901 Enterprise Lane Midland, Texas		79706
(Address of principal executive offices)		(Zip Code)

    (432) 276-3966

   

    (Registrant’s telephone number, including area code)

   

    (Former name, former address and former fiscal year, if changed since last report)

   

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A common stock, par value $0.0001 per share	ASTS	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


☐ Large accelerated filer	☐ Accelerated filer
☒ Non-accelerated filer	☒ Smaller reporting company
	☒ Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes ☐ No ☒

As of November 12, 2024 there were 200,344,605 shares of Class A common stock, $0.0001 per value, 11,227,292 shares of Class B common stock, $0.0001 par value, and 78,163,078 shares of Class C common stock, $0.0001 par value, issued and outstanding.

AST SPACEMOBILE, INC.

FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2024

TABLE OF CONTENTS


		Page
Part I. Financial Information		1
Item 1. Financial Statements		1
Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 (Unaudited)		1
Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2024 and 2023 (Unaudited)		2
Condensed Consolidated Statements of Comprehensive Loss for the three and nine months ended September 30, 2024 and 2023 (Unaudited)		3
Condensed Consolidated Statements of Stockholders’ Equity for the three and nine months ended September 30, 2024 and 2023 (Unaudited)		4
Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 (Unaudited)		5
Notes to Condensed Consolidated Financial Statements (Unaudited)		6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		24
Item 3. Quantitative and Qualitative Disclosures About Market Risk		38
Item 4. Controls and Procedures		38
Part II. Other Information		39
Item 1. Legal Proceedings		39
Item 1A. Risk Factors		39
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		40
Item 3. Defaults Upon Senior Securities		40
Item 4. Mine Safety Disclosures		40
Item 5. Other Information		41
Item 6. Exhibits		42
Signatures		43

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

AST SPACEMOBILE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars in thousands, except share data)


	As of
	September 30, 2024			December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	516,389		$	85,622
Restricted cash		2,497			2,475
Prepaid expenses		7,073			4,591
Other current assets		19,662			14,194
Total current assets		545,621			106,882

Non-current assets:
Property and equipment, net		260,068			238,478
Operating lease right-of-use assets, net		12,088			13,221
Other non-current assets		3,872			2,311
TOTAL ASSETS	$	821,649		$	360,892

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	8,962		$	20,575
Accrued expenses and other current liabilities		16,480			23,926
Contract liabilities		22,468			-
Current operating lease liabilities		1,534			1,468
Current portion of long-term debt		44,635			252
Total current liabilities		94,079			46,221

Non-current liabilities:
Warrant liabilities		57,460			29,960
Non-current operating lease liabilities		11,057			11,900
Long-term debt, net		156,252			59,252
Total liabilities		318,848			147,333

Commitments and contingencies (Note 7)

Stockholders' Equity:
Class A Common Stock, $.0001 par value; 800,000,000 shares authorized; 170,039,305 and 90,161,309 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively.		17			9
Class B Common Stock, $.0001 par value; 200,000,000 shares authorized; 39,747,447 and 50,041,757 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively.		4			5
Class C Common Stock, $.0001 par value; 125,000,000 shares authorized; 78,163,078 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively.		8			8
Additional paid-in capital		762,426			288,404
Accumulated other comprehensive income		353			227
Accumulated deficit		(453,888	)		(189,662	)
Noncontrolling interest		193,881			114,568
Total stockholders' equity		502,801			213,559

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	821,649		$	360,892

See accompanying notes to the unaudited condensed consolidated financial statements

AST SPACEMOBILE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(Dollars in thousands, except share and per share data)


	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2024			2023			2024			2023

Revenues	$	1,100		$	-		$	2,500		$	-

Operating expenses:
Engineering services costs		21,828			19,523			62,546			58,818
General and administrative costs		15,551			10,995			45,677			31,073
Research and development costs		14,724			9,418			23,435			36,721
Depreciation and amortization		14,543			19,029			54,880			34,877
Total operating expenses		66,646			58,965			186,538			161,489

Other income (expense):
(Loss) gain on remeasurement of warrant liabilities		(236,912	)		7,481			(284,839	)		21,454
Interest (expense) income, net		(1,386	)		495			(5,846	)		4,311
Other income (expense), net		1,410			507			1,661			(10,237	)
Total other income (expense), net		(236,888	)		8,483			(289,024	)		15,528

Loss before income tax (expense) benefit		(302,434	)		(50,482	)		(473,062	)		(145,961	)
Income tax (expense) benefit		(646	)		(266	)		(1,172	)		408
Net loss before allocation to noncontrolling interest		(303,080	)		(50,748	)		(474,234	)		(145,553	)

Net loss attributable to noncontrolling interest		(131,134	)		(29,839	)		(210,008	)		(89,918	)
Net loss attributable to common stockholders	$	(171,946	)	$	(20,909	)	$	(264,226	)	$	(55,635	)
Net loss per share attributable to holders of Class A Common Stock
Basic and diluted	$	(1.10	)	$	(0.23	)	$	(1.89	)	$	(0.70	)
Weighted-average shares of Class A Common Stock outstanding
Basic and diluted		155,644,888			89,514,621			139,485,036			79,065,471

See accompanying notes to the unaudited condensed consolidated financial statements

AST SPACEMOBILE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)

(Dollars in thousands)


	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2024			2023			2024			2023

Net loss before allocation to noncontrolling interest	$	(303,080	)	$	(50,748	)	$	(474,234	)	$	(145,553	)
Other comprehensive loss
Foreign currency translation adjustments		529			(358	)		190			(526	)
Total other comprehensive loss		529			(358	)		190			(526	)
Total comprehensive loss before allocation to noncontrolling interest		(302,551	)		(51,106	)		(474,044	)		(146,079	)
Comprehensive loss attributable to noncontrolling interest		(130,906	)		(30,050	)		(209,944	)		(90,226	)
Comprehensive loss attributable to common stockholders	$	(171,645	)	$	(21,056	)	$	(264,100	)	$	(55,853	)

See accompanying notes to the unaudited condensed consolidated financial statements

AST SPACEMOBILE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

(Dollars in thousands, except share data)


Three Months Ended September 30, 2024
	Class A Common Stock				Class B Common Stock				Class C Common Stock				Additional			Accumulated Other
	Shares		Values		Shares		Values		Shares		Values		Paid-in Capital			Comprehensive Income		Accumulated Deficit			Noncontrolling Interest			Total Equity
Balance, June 30, 2024		148,751,110	$	15		39,747,447	$	4		78,163,078	$	8	$	427,096		$	52	$	(281,942	)	$	96,637		$	241,870
Stock-based compensation		-		-		-		-		-		-		6,683			-		-			127			6,810
Issuance of common stock, net of issuance costs		6,463,549		1		-		-		-		-		86,101			-		-			58,774			144,876
Issuance of equity under employee stock plan		356,497		-		-		-		-		-		1,813			-		-			1,140			2,953
Vesting of restricted stock units		372,824		-		-		-		-		-		(1,948	)		-		-			(137	)		(2,085	)
Warrant exercises		13,971,450		1		-		-		-		-		242,570			-		-			168,357			410,928
Redemption of AST LLC Common Units for Class A Common Stock		123,875		-		-		-		-		-		111			-		-			(111	)		-
Foreign currency translation adjustments		-		-		-		-		-		-		-			301		-			228			529
Net loss		-		-		-		-		-		-		-			-		(171,946	)		(131,134	)		(303,080	)
Balance, September 30, 2024		170,039,305	$	17		39,747,447	$	4		78,163,078	$	8	$	762,426		$	353	$	(453,888	)	$	193,881		$	502,801


Nine Months Ended September 30, 2024
	Class A Common Stock				Class B Common Stock						Class C Common Stock				Additional			Accumulated Other
	Shares		Values		Shares			Values			Shares		Values		Paid-in Capital			Comprehensive Income		Accumulated Deficit			Noncontrolling Interest			Total Equity
Balance, December 31, 2023		90,161,309	$	9		50,041,757		$	5			78,163,078	$	8	$	288,404		$	227	$	(189,662	)	$	114,568		$	213,559
Stock-based compensation		-		-		-			-			-		-		15,396			-		-			5,221			20,617
Issuance of common stock, net of issuance costs		53,285,479		6		-			-			-		-		205,049			-		-			126,953			332,008
Issuance of equity under employee stock plan		362,541		-		-			-			-		-		1,908			-		-			1,150			3,058
Vesting of restricted stock units		1,194,327		-		-			-			-		-		(2,641	)		-		-			(684	)		(3,325	)
Warrant exercises		13,971,450		1												242,570								168,357			410,928
Redemption of AST LLC Common Units for Class A Common Stock		11,064,199		1		(10,294,310	)		(1	)		-		-		11,740			-		-			(11,740	)		-
Foreign currency translation adjustments		-		-		-			-			-		-		-			126		-			64			190
Net loss		-		-		-			-			-		-		-			-		(264,226	)		(210,008	)		(474,234	)
Balance, September 30, 2024		170,039,305	$	17		39,747,447		$	4			78,163,078	$	8	$	762,426		$	353	$	(453,888	)	$	193,881		$	502,801


Three Months Ended September 30, 2023
	Class A Common Stock				Class B Common Stock				Class C Common Stock				Additional			Accumulated Other
	Shares		Values		Shares		Values		Shares		Values		Paid-in Capital			Comprehensive Income			Accumulated Deficit			Noncontrolling Interest			Total Equity
Balance, June 30, 2023		89,404,419	$	9		50,041,757	$	5		78,163,078	$	8	$	282,869		$	158		$	(136,827	)	$	189,655		$	335,877
Stock-based compensation		-		-		-		-		-		-		2,426			-			-			163			2,589
Issuance of common stock, net of issuance costs		-		-		-		-		-		-		(31	)		-			-			(60	)		(91	)
Issuance of equity under employee stock plan		88,194		-		-		-		-		-		180			-			-			(135	)		45
Vesting of restricted stock units		182,716		-		-		-		-		-		81			-			-			(173	)		(92	)
Foreign currency translation adjustments		-		-		-		-		-		-		-			(147	)		-			(211	)		(358	)
Net loss		-		-		-		-		-		-		-			-			(20,909	)		(29,839	)		(50,748	)
Balance, September 30, 2023		89,675,329	$	9		50,041,757	$	5		78,163,078	$	8	$	285,525		$	11		$	(157,736	)	$	159,400		$	287,222


Nine Months Ended September 30, 2023
	Class A Common Stock				Class B Common Stock				Class C Common Stock				Additional			Accumulated Other
	Shares		Values		Shares		Values		Shares		Values		Paid-in Capital			Comprehensive Income			Accumulated Deficit			Noncontrolling Interest			Total Equity
Balance, December 31, 2022		71,819,926	$	7		50,041,757	$	5		78,163,078	$	8	$	235,384		$	229		$	(102,101	)	$	226,294		$	359,826
Stock-based compensation		-		-		-		-		-		-		10,099			-			-			496			10,595
Issuance of common stock, net of issuance costs		13,929,297		1		-		-		-		-		36,694			-			-			26,781			63,476
Issuance of equity under employee stock plan		3,318,545		1		-		-		-		-		3,596			-			-			(3,372	)		225
Vesting of restricted stock units		607,561		-		-		-		-		-		(248	)		-			-			(573	)		(821	)
Foreign currency translation adjustments		-		-		-		-		-		-		-			(218	)		-			(308	)		(526	)
Net loss		-		-		-		-		-		-		-			-			(55,635	)		(89,918	)		(145,553	)
Balance, September 30, 2023		89,675,329	$	9		50,041,757	$	5		78,163,078	$	8	$	285,525		$	11		$	(157,736	)	$	159,400		$	287,222

See accompanying notes to the unaudited condensed consolidated financial statements

AST SPACEMOBILE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in thousands)


	For the Nine Months Ended September 30,
	2024			2023

Cash flows from operating activities:
Net loss before allocation to noncontrolling interest	$	(474,234	)	$	(145,553	)
Adjustments to reconcile net loss before noncontrolling interest to cash used in operating activities:
Depreciation and amortization		54,880			34,877
Amortization of debt issuance costs		3,047			374
Loss on disposal of property and equipment		2,221

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