3rd Qtr 2024 update (my notes)

3rd Quarter ASTS Business Update 11/14/2024

EPS: $(1.10) vs. $(0.20) est. (450% miss) ❌

Sales: $1.1M vs. $24.133M est. (95% miss) ❌

Coverage priority in order is: United States, Europe, Japan, and the U.S. government.

The launch campaign is scheduled for 2025 to 2026 to complete 60 Satellite launches.

✔️Cash on hand: 518M

✔️ This should be enough cash to launch 20 Satellites for the USA. 45-60 Satellites would need more. Cost per Sat is 21M. (60x21= 1,260M). 8 quarters Opex = 280M. Total needed = 1,260M + 280M = 1,540M. By my calculations, they need an additional 1,022M for the full 60 Satellites.

✔️Opex: Quarterly operating expenses rose from 34M to 45M by expect it to go back down to 35M. (Annual projected Opex = 140M)

✔️Capex: They expect 100M Capex in Q4 due to production ramp up.

✔️Debt: They paid off $48M credit facility.

✔️Cash raised from $152M warrents + $144M ATM

✔️News: Three new government contracts for four total. Gives ability to propose on projects, but no project wins announced yet. Expecting government services revenue to grow eventually to $100M+ once the full satellite constellation of 60 Sats are deployed.

✔️Launch: launches of 60 Sats are planned for 2025 to 2026

✔️ ASIC - Delayed use of these 10X faster chips on Block2 until Q3 2025 instead of Q1.

✔️Waiting for FCC regulatory approval for initial Sat beta testing with Verizon and AT&T

✔️Commercialization: Shockingly, no one asked about this & they did not address dates. On the last call, they said end of 2024 or early 25. Looks like it may take longer given no info.

✔️Block 2: Previously said Q1 2025 launch start. This time they just said launch 2025 to 2026. Launching 4 or 8 at a time.

✔️Revenue: $1.1M, However they completely avoided discussing this on the call. I’m just guessing this is for hardware sold to the government, but they didn’t say.

✔️Firstnet Revenue: They did not mention

✔️Pre-pays: Surprisingly, no new in Q3.

✔️?????: They did not say when Sat Beta testing with providers will start, how long it will last, and when commercialization is expected to start.