ASTS

1. Key Historical Highlights

• March 4, 2025: AST SpaceMobile is building the first global cellular broadband network that works directly with unmodified devices, securing a $43 million contract with the U.S. Space Development Agency.
• March 3, 2025: AST SpaceMobile and Vodafone sign an agreement to create a European direct-to-device satellite service provider.
• January 30, 2025: Received Special Temporary Authority from the FCC for testing services in the U.S. with AT&T and Verizon.
• January 27, 2025: Closed a $460 million private offering of convertible senior notes due 2032.
• December 24, 2024: Successfully launched and unfolded its first five BlueBird satellites, marking a significant step towards space-based cellular broadband.
• December 9, 2024: Entered a long-term commercial agreement with Vodafone through 2034.
• December 3, 2024: Collaborated with Cadence to advance the AST5000 ASIC, improving processing bandwidth on satellites.
• November 14, 2024: Secured additional launch capacity for up to 60 satellites to provide continuous service in key markets.
• October 25, 2024: Successfully completed the unfolding of its first five commercial satellites in low Earth orbit.
• October 23, 2024: Secured an initial contract with the Space Development Agency as a prime contractor to the U.S. Government.
• September 12, 2024: Successfully launched its first five commercial satellites, BlueBird 1-5, from Cape Canaveral.
• August 14, 2024: Received FCC approval for the launch of the first five commercial satellites.
• July 1, 2024: Announced a strategic partnership with Verizon to achieve 100% geographical coverage in the U.S. using 850 MHz spectrum.
• June 25, 2024: Announced a strategic realignment of its executive leadership team to support growth.
• May 29, 2024: Announced plans with Verizon to target 100% geographical coverage of the continental U.S. using premium 850 MHz cellular spectrum.
• May 15, 2024: Announced a definitive commercial agreement with AT&T to provide a space-based broadband network.
• April 1, 2024: Signed a Convertible Security Investment Agreement with AT&T, Google, and Vodafone for $110 million in subordinated convertible notes.

2. Financial Performance Overview

Revenue Growth

AST SpaceMobile has experienced fluctuations in revenue, primarily driven by government contracts and strategic partnerships:

• 2024: Recognized $4.4 million in revenue, mainly from U.S. government contracts and equipment resale.
• Q3 2024: Revenue was $1.1 million, primarily from a U.S. Government contract.

Profit Margins

The company has faced challenges in maintaining profit margins due to high operating expenses:

• 2024: Operating expenses increased significantly, leading to a net loss of $300.1 million.
• 2023: The net loss attributable to common stockholders was $87.6 million, compared to a loss of $31.6 million in 2022.

Expense Management

AST SpaceMobile has been actively managing its expenses through strategic investments and fundraising:

• Raised $460 million through convertible senior notes in January 2025.
• Reduced non-GAAP adjusted cash operating expenses from $45.3 million in Q3 2024 to $40.8 million in Q4 2024.

Significant Financial Events

• Convertible Notes Offering: Raised $460 million in January 2025 to support manufacturing and expansion.
• Strategic Investments: Secured $206.5 million from AT&T, Google, and Vodafone in January 2024.

3. Management Effectiveness

Strategic Decision-Making

• Partnerships and Collaborations: Formed strategic partnerships with major telecom operators like AT&T, Verizon, and Vodafone to expand market reach and enhance service offerings.
• Regulatory Approvals: Successfully obtained FCC approval for the launch and operation of commercial satellites, paving the way for nationwide coverage in the U.S.

Capital Allocation

• Convertible Notes Issuance: Wisely allocated capital through convertible senior notes to fund satellite manufacturing and minimize shareholder dilution.
• Infrastructure Development: Invested in manufacturing facilities in Texas to scale production capacity.

Adaptability

• Leadership Changes: Realigned the executive leadership team to support accelerated growth and commercialization efforts.
• Government Contracts: Secured contracts with the U.S. Government, showcasing adaptability to serve both commercial and government sectors.

4. Key Quotes from Management:

• "The past several months have been transformational for AST SpaceMobile, and we continue to accelerate manufacturing, expand our partner ecosystem and demonstrate unique and differentiated space-based capabilities." - Abel Avellan, Founder, Chairman, and CEO, AST SpaceMobile
• "We entered 2025 with the talent and partners, technology and intellectual properties, access to space and spectrum, and the funding to move at an accelerated pace in this fast-developing market." - Abel Avellan, Founder, Chairman, and CEO, AST SpaceMobile
• "This successful financing enables us to accelerate our mission of delivering the world’s first space-based cellular broadband network." - Abel Avellan, Founder, Chairman, and CEO, AST SpaceMobile
• "Our vision has never been clearer, and we believe we have the resources and capabilities to execute our plans." - Abel Avellan, Founder, Chairman, and CEO, AST SpaceMobile
• "Together, we're building a future where connectivity empowers everyone, everywhere." - Abel Avellan, Founder, Chairman, and CEO, AST SpaceMobile
• "Being appointed to the ITU/UNESCO Broadband Commission is a privilege and an honor. I strongly believe in the transformative power of connectivity." - Abel Avellan, Founder, Chairman, and CEO, AST SpaceMobile
• "By aligning our executive leadership's proven strengths with the evolving needs of the company, we believe we are primed for significant progress as we enter the next phase of commercialization." - Abel Avellan, Founder, Chairman, and CEO, AST SpaceMobile