Core Viewpoint - The company currently has minimal revenues, but market optimism is reflected in its multiples due to a petition to the FCC aimed at creating a large-scale ecosystem, indicating a high-risk investment opportunity [1]. Group 1: Company Analysis - The company's stock represents a high-risk investment, driven by the potential of the FCC petition [1]. - The investment analysis approach includes triangulation between valuation by multiples, discounted cash flow (DCF), and dividend yield [1]. - The focus is on Consumer Discretionary and Consumer Staples sectors, prioritizing smaller capitalization companies with low institutional coverage for greater potential asymmetries and alpha generation [1]. Group 2: Investment Philosophy - The investment philosophy combines income and value investing strategies, emphasizing the need for an adequate margin of safety in multiples and projected cash flow [1]. - Dividend yield is considered a fundamental component for generating returns and mitigating risks, especially in low coverage stocks [1]. - The analysis is based on a bottom-up approach, focusing on operational fundamentals, execution history, and sustainable growth drivers [1].

Summary of NextNav Conference Call Company Overview - **Company**: NextNav - **Industry**: Positioning, Navigation, and Timing (PNT) solutions, specifically terrestrial GPS backup systems Key Highlights 1. **Investment Highlights**: - NextNav is developing a next-generation PNT solution integrated with 5G technology [1][2] - The company possesses valuable spectrum assets with excellent propagation characteristics for PNT and broadband 5G [2][8] - Strong management team with experience in telecommunications and national security [2] 2. **Problem Statement**: - Current satellite-based GPS systems have coverage limitations, especially in urban areas and indoors, and are vulnerable to jamming and spoofing [4][5] - The Department of Defense (DOD) has highlighted the national security risks associated with reliance on GPS [4][5] 3. **Proposed Solution**: - NextNav aims to create a terrestrial GPS backup using its spectrum in the lower 900 MHz band, which will be integrated into existing 5G networks [6][7] - The solution will provide reliable positioning and timing indoors and in urban canyons, addressing the vulnerabilities of satellite systems [6][7][10] 4. **Spectrum Assets**: - NextNav holds licenses covering over 96% of the U.S. population, with approximately 4 billion MHz pops in the lower 900 MHz band [8][9] - The estimated value of the GPS backup solution is $14.6 billion, providing significant economic insurance against GPS outages [9][15] 5. **Economic Impact**: - A one-day GPS outage could result in an economic loss of $1.6 billion, escalating to $58 billion for a 30-day outage [16] - NextNav's solution aims to mitigate these potential losses by providing a reliable PNT system [16] 6. **Regulatory Process**: - NextNav has filed a petition with the FCC to optimize its spectrum band plan for 5G integration [17][23] - The FCC has approved the assignment application, and the next step is a Notice of Proposed Rulemaking (NPRM) [22][23] 7. **Technical Studies**: - Comprehensive studies have shown that existing toll operators can coexist with NextNav's operations with minimal retuning required [25][26] - Unlicensed operations in the IoT space will not be impacted by NextNav's spectrum usage [27][28] 8. **Commercialization and Partnerships**: - NextNav plans to partner with existing 5G operators to build out the PNT network, leveraging their infrastructure [57] - The PNT solution will require minimal changes to existing handsets and infrastructure, making it easier for operators to adopt [60][62] 9. **Accuracy and Coverage**: - NextNav's PNT solution is expected to provide single-digit meter accuracy in urban areas, significantly improving upon GPS performance in such environments [78][80] - The solution can be deployed nationwide, including rural areas, due to the favorable propagation characteristics of low-band spectrum [88] 10. **Valuation and Financials**: - The valuation of the PNT solution is based on the economic impact of GPS outages rather than direct spectrum valuation [91] - Recent transactions in low-band spectrum provide benchmarks for potential valuation [92] 11. **Operational Efficiency**: - NextNav operates efficiently with a small team and an existing live network, minimizing the need for taxpayer funding [98][99] Additional Insights - The urgency of the national security issue surrounding GPS reliance is emphasized, with NextNav advocating for swift regulatory action [40][50] - The company is confident in its path forward, indicating that even if the FCC does not grant the spectrum rebranding, it has alternative valuable technologies and spectrum [89][90]

Financial Data and Key Metrics Changes - NexNAV's revenue for Q2 2025 was $1.2 million, an increase from $1.1 million in the prior year period, while revenue for the six months ended June 30, 2025, was $2.7 million compared to $2.2 million for the same period last year [15][16] - Operating expenses for Q2 2025 were $18.4 million, up approximately $2 million from the same period last year, with net loss for Q2 2025 at $63.2 million compared to a net loss of $24.4 million in the prior year period [17][18] - The company finished Q2 2025 with $176.1 million in cash, cash equivalents, and short-term investments, indicating a prudent long-term approach to liquidity [18] Business Line Data and Key Metrics Changes - The increase in revenue was primarily driven by an increase in service revenue from technology and services contracts with government and commercial customers [16] Market Data and Key Metrics Changes - The FCC granted consent for licenses to be assigned to NexNAV, which is expected to result in public interest benefits, including further development of the MLMS band [7][8] Company Strategy and Development Direction - NexNAV is focused on strengthening PNT resiliency in support of national security, public safety, and the economy, with a commitment to executing its strategic roadmap and driving innovation in geolocation technology [14] - The company is advocating for a terrestrial complement and backup to GPS, emphasizing the urgency of this national security priority [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the progress made and the urgency of their proposal to the FCC, although they cannot speculate on the timing of the NPRM [51] - The company highlighted the vulnerabilities of GPS and the need for a robust solution to address these threats [13] Other Important Information - NexNAV has filed multiple technical and economic studies to support its proposal, demonstrating the feasibility and public interest benefits of its approach [10][12] - The company is exploring partnerships with satellite players to create a comprehensive PNT solution [22] Q&A Session Summary Question: What are your next steps in the FCC process on the progression towards a hope for NPRM? - Management indicated that they have submitted a complete and rigorous analysis to the FCC and continue to advocate for their position, believing the record is sufficient for the FCC to move to NPRM [20][21] Question: Any updates on cooperating with space-based alternatives? - Management confirmed ongoing discussions with industry players but had no specific updates to share at this time [22] Question: Can you discuss the Atran and Oslo courts announcement? - Management expressed excitement about the announcement, highlighting its potential to enable a cohesive PNT solution through partnerships [26] Question: Do you anticipate participating in field testing? - Management stated that they do not believe additional testing is required for the FCC to move forward with an NPRM [30] Question: How do you think the One Big Beautiful Bill auction authority will impact your process with the government? - Management noted that the impact would be minimal as their spectrum is already licensed and available for optimization [38][39] Question: Can you summarize the differences in economic analysis findings? - Management highlighted flaws in the opposing report, emphasizing the minimal costs associated with retuning and the value of GPS resiliency [40][41] Question: How does resilient PNT fit into AI? - Management explained that accurate PNT data is crucial for AI applications, particularly in critical infrastructure and defense [46][48]

NextNav's Solution and Spectrum - NextNav proposes a terrestrial GPS complement and backup using its Lower 900 MHz licenses in partnership with 5G network providers, without taxpayer funding[15] - NextNav holds licenses covering over 96% of U S POPs, and over 4 Billion MHz-POPs[17] - NextNav's spectrum offers long-range coverage and in-building penetration, with a proposed 10MHz downlink for broadband data[20] - NextNav's proposed new band plan optimizes a paired 5+10 MHz block suitable for PNT and 5G services[25] The Need for Terrestrial GPS Complement - A day without GPS would wreak havoc[8] - GPS is vulnerable to spoofing and jamming, as well as natural phenomena[10] - The US needs a system of systems to back up and complement GPS, including a terrestrial component[15] Economic Value and Market Opportunity - The total value of the GPS complement and backup is $14 6 billion[20] - A 1-day GPS outage could result in $1 6 billion in potential U S economic loss, while a 30-day outage could lead to $31 9 billion in losses[35] - Adopting NextNav's proposal could prevent an economic loss of $663 million (1 day outage) to $31 9 billion (30 day outage)[35] NextNav's 5G PNT Network Architecture - NextNav's PNT network will be seamlessly and efficiently integrated into 5G networks[32] - It is capable of leveraging partners' 5G network facilities[32] Financial Position - NextNav finished the second quarter with $176 1 million in cash, cash equivalents, and marketable securities[39]

Part I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) NextNav reported **$2.7 million** revenue and a **$121.8 million** net loss for H1 2025, with assets increasing to **$256.7 million** and equity shifting to a **$47.2 million deficit** [Note 1: Organization and Business](index=7&type=section&id=1.%20Organization%20and%20Business) NextNav leads in resilient PNT solutions, evolving its platform with 5G New Radio technologies, delivering services despite recurring losses and negative cash flows - NextNav is a market leader in resilient, next-generation Positioning, Navigation, and Timing (PNT) solutions, designed to complement and overcome the limitations of GPS, evolving its platform to use 5G New Radio (NextGen) technologies[26](index=26&type=chunk) - The company continues to deliver services through its Pinnacle (altitude service for E911) and TerraPoiNT (terrestrial 3D PNT network) solutions while pursuing regulatory changes for its Lower 900 MHz spectrum[27](index=27&type=chunk) - The company has a history of recurring losses and negative cash flows, with a net loss of **$121.8 million** for the first six months of 2025, though management believes its current cash, cash equivalents, and marketable securities of **$176.1 million** are sufficient to fund operations for more than 12 months[28](index=28&type=chunk)[29](index=29&type=chunk) [Note 2: Summary of Significant Accounting Policies](index=7&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) The unaudited financial statements adhere to U.S. GAAP and SEC interim reporting instructions, with no material changes to accounting policies - The unaudited condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and SEC instructions for interim reporting, with no material changes to the company's significant accounting policies since the 2024 Form 10-K[31](index=31&type=chunk)[33](index=33&type=chunk) Revenue by Category (in thousands) | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Commercial | $1,016 | $1,100 | $1,948 | $2,141 | | Government contracts | $186 | $5 | $793 | $10 | | **Total revenue** | **$1,202** | **$1,105** | **$2,741** | **$2,151** | Stock-Based Compensation Expense (in thousands) | Expense Category | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :--- | :--- | :--- | | Cost of goods sold | $156 | $393 | | Research and development | $1,160 | $2,203 | | Selling, general and administrative | $2,334 | $5,378 | | **Total** | **$3,650** | **$7,974** | [Note 5: Asset Purchase Agreement](index=13&type=section&id=5.%20Asset%20Purchase%20Agreement) The company agreed to acquire M-LMS licenses for **$2.5 million** cash and **$7.5 million** stock, with a contingent **$20 million** stock payment upon FCC approval, which was granted - On March 7, 2024, the Company entered into an agreement to acquire certain Multilateration Location and Monitoring Service (M-LMS) licenses from Telesaurus Holdings and Skybridge Spectrum Foundation[73](index=73&type=chunk) - Consideration includes **$2.5 million** in cash (paid in April 2024), **$7.5 million** in stock (issued in November 2024), and a contingent payment of **$20.0 million** in stock upon FCC approval of the license assignment[74](index=74&type=chunk)[75](index=75&type=chunk) - On June 20, 2025, the FCC consented to the assignment of 128 M-LMS licenses, and the Company has concluded that it is probable the transaction will close[76](index=76&type=chunk)[77](index=77&type=chunk) [Note 7: Fair Value](index=14&type=section&id=7.%20Fair%20Value) Financial assets and liabilities measured at fair value include money market funds, debt securities, warrants, and a derivative liability, with Level 3 liabilities valued using unobservable inputs - The company's financial assets and liabilities measured at fair value on a recurring basis include money market funds, available-for-sale debt securities, Private Placement Warrants, and a Derivative Liability related to a conversion option[81](index=81&type=chunk) - The Private Placement Warrants and the Derivative Liability-Conversion Option are classified as Level 3 liabilities, valued using unobservable inputs such as a Monte Carlo simulation and a binomial lattice model, respectively, with the fair value of the derivative liability being **$93.8 million** as of June 30, 2025[85](index=85&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk) [Note 8: Long term debt, net](index=17&type=section&id=8.%20Long%20term%20debt%2C%20net) The company issued **$190 million** in 5.00% Senior Secured Convertible Notes due 2028, using proceeds to redeem prior notes, resulting in a **$14.4 million** extinguishment loss - On March 12, 2025, the Company issued **$190 million** of 5.00% Senior Secured Convertible Notes due 2028 (the "2028 Notes") and **7.8 million** related warrants[93](index=93&type=chunk) - A portion of the proceeds from the 2028 Notes was used to redeem all of the **$70 million** of senior secured notes due 2026 (the "2026 Notes"), resulting in a **$14.4 million** loss on early extinguishment[98](index=98&type=chunk)[99](index=99&type=chunk) - The conversion option embedded in the 2028 Notes was bifurcated as a derivative liability with a fair value of **$93.8 million** as of June 30, 2025, with the carrying value of the 2028 Notes being **$152.5 million**[104](index=104&type=chunk)[105](index=105&type=chunk) [Note 9: Warrants and Warrant Liability](index=19&type=section&id=9.%20Warrants%20and%20Warrant%20Liability) As of June 30, 2025, NextNav had **37,267,199** warrants outstanding, comprising public, private placement, 2026, and 2028 Warrants - As of June 30, 2025, NextNav had **37,267,199** warrants outstanding, comprising public warrants, private placement warrants, 2026 Warrants, and 2028 Warrants[111](index=111&type=chunk) Condensed Consolidated Balance Sheets Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $58,866 | $39,330 | | Short term investments | $117,186 | $40,785 | | **Total assets** | **$256,743** | **$161,740** | | Long term debt, net | $246,295 | $54,621 | | **Total liabilities** | **$303,958** | **$111,619** | | **Total stockholders' equity (deficit)** | **($47,215)** | **$50,121** | Condensed Consolidated Statements of Comprehensive Loss (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $1,202 | $1,105 | $2,741 | $2,151 | | Operating loss | ($17,240) | ($15,332) | ($34,244) | ($31,481) | | Net loss | ($63,195) | ($24,390) | ($121,774) | ($56,000) | | Net loss per share | ($0.48) | ($0.21) | ($0.93) | ($0.47) | Condensed Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30, in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($25,703) | ($19,279) | | Net cash used in investing activities | ($75,498) | ($22,319) | | Net cash provided by financing activities | $120,431 | $22,671 | | **Net increase (decrease) in cash** | **$19,536** | **($18,905)** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue increased **27.4%** to **$2.7 million**, but net loss widened to **$121.8 million** due to derivative and debt extinguishment losses, with new **$190 million** notes boosting liquidity to **$176.1 million** - The company is focused on evolving its PNT solutions to use 5G New Radio (NextGen) technologies and has petitioned the FCC to reconfigure the Lower 900 MHz band to enable both PNT and 5G broadband services[129](index=129&type=chunk)[130](index=130&type=chunk) Comparison of Results for the Six Months Ended June 30 (in thousands) | Item | 2025 | 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | $2,741 | $2,151 | $590 | 27.4% | | Cost of Goods Sold | $4,568 | $5,685 | ($1,117) | (19.6)% | | Research and Development | $8,862 | $8,780 | $82 | 0.9% | | Selling, General and Administrative | $20,753 | $16,554 | $4,199 | 25.4% | | **Operating loss** | **($34,244)** | **($31,481)** | **($2,763)** | **8.8%** | - The significant increase in 'Other expense' to **$81.7 million** for H1 2025 from **$19.9 million** in H1 2024 was primarily driven by a loss on the fair value of a derivative liability, a debt extinguishment loss, and expenses related to warrants issued with new debt financing[161](index=161&type=chunk) - The company's liquidity was significantly enhanced by the March 2025 private placement of **$190 million** in 5% Senior Secured Convertible Notes due 2028, with cash, cash equivalents, and marketable securities totaling **$176.1 million** as of June 30, 2025[162](index=162&type=chunk)[164](index=164&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reported no material changes in its market risks from those previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes in the company's market risks from those disclosed in the 2024 Form 10-K[177](index=177&type=chunk) [Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Based on an evaluation as of June 30, 2025, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective, with no material changes in internal control over financial reporting during the quarter - Management's evaluation concluded that disclosure controls and procedures were effective as of June 30, 2025[179](index=179&type=chunk) - No changes occurred in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[180](index=180&type=chunk) Part II. OTHER INFORMATION [Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) The company states that it is not involved in any legal proceedings that it believes would have a material adverse effect on its business, financial condition, results of operations, or cash flows - The company is not currently involved in any legal matters expected to have a material adverse effect on its business[182](index=182&type=chunk) [Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) New risk factors include restrictive covenants and potential default events from the 2028 Notes, which could limit operations and accelerate debt, alongside significant dilution risk from outstanding warrants - A new risk factor has been introduced concerning the restrictive covenants in the indenture for the 2028 Notes, which may limit the company's ability to incur debt, make investments, sell assets, and pay dividends[185](index=185&type=chunk)[186](index=186&type=chunk) - The indenture for the 2028 Notes includes several events of default, which, if triggered, could result in the acceleration of the debt and have a material adverse effect on the company's liquidity[187](index=187&type=chunk)[188](index=188&type=chunk) - A significant number of outstanding warrants are exercisable, which could lead to the issuance of additional common stock, resulting in dilution to existing stockholders and potentially depressing the market price of the stock[191](index=191&type=chunk)[192](index=192&type=chunk)[193](index=193&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities, no use of proceeds from the sale of registered equity securities, and no purchases of its equity securities during the fiscal quarter ended June 30, 2025 - There were no unregistered sales of equity securities during the quarter ended June 30, 2025[195](index=195&type=chunk) [Other Information](index=30&type=section&id=Item%205.%20Other%20Information) No officers or directors adopted, amended, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the fiscal quarter ended June 30, 2025 - No officers or directors adopted or terminated any Rule 10b5-1 trading plans during the quarter[200](index=200&type=chunk) [Exhibits](index=30&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Quarterly Report, including certifications from the CEO and CFO as required by the Sarbanes-Oxley Act of 2002 and Inline XBRL data files

[Operational Highlights](index=1&type=section&id=Operational%20Highlights) NextNav achieved significant FCC regulatory milestones for its 5G-based PNT solution, securing license assignments and submitting studies - The FCC issued an order granting consent to NextNav for the assignment of **128 active M-LMS licenses** in the Lower 900MHz band, enhancing the company's spectrum position[2](index=2&type=chunk)[10](index=10&type=chunk) - NextNav filed multiple studies with the FCC to support its proposal, including a technical study validating minimal interference, an economic report from the Brattle Group showing potential national benefits in the **tens of billions of dollars**, and a study demonstrating coexistence with licensed tolling operations[10](index=10&type=chunk) - The company is actively advocating for the FCC to issue a Notice of Proposed Rulemaking (NPRM) to enable a terrestrial complement and backup to GPS without requiring **multibillion-dollar taxpayer expenditures**[10](index=10&type=chunk) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) NextNav reported modest revenue growth to **$1.2 million** in Q2 2025, with net loss widening to **$63.2 million** due to non-cash derivative losses Q2 & H1 2025 Key Financial Metrics (in millions) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $1.2 | $1.1 | $2.7 | $2.2 | | **Operating Loss** | $(17.2) | $(15.3) | $(34.2) | $(31.5) | | **Net Loss** | $(63.2) | $(24.4) | $(121.8) | $(56.0) | - The increase in operating loss for both the three and six-month periods was primarily driven by higher professional services, payroll-related expenses, and outside consulting costs[10](index=10&type=chunk) - The significant increase in net loss for Q2 2025 was largely due to a non-cash loss of **$39.5 million** on the change in fair value of derivative liability and warrants[10](index=10&type=chunk) - As of June 30, 2025, the company had **$58.9 million** in cash and cash equivalents and **$117.2 million** in short-term investments[10](index=10&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) NextNav's unaudited condensed consolidated financial statements detail its financial position and performance, showing increased assets and liabilities, and wider net losses [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Key Balance Sheet Items (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $58,866 | $39,330 | | Short term investments | $117,186 | $40,785 | | **Total Assets** | **$256,743** | **$161,740** | | Long term debt, net | $246,295 | $54,621 | | **Total Liabilities** | **$303,958** | **$111,619** | | **Total stockholders' equity (deficit)** | **$(47,215)** | **$50,121** | - Total assets increased to **$256.7 million**, primarily due to a rise in cash and short-term investments[17](index=17&type=chunk) - Total liabilities grew substantially to **$304.0 million**, mainly from an increase in long-term debt to **$246.3 million**[17](index=17&type=chunk) [Condensed Consolidated Statements of Comprehensive Loss](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Q2 2025 Statement of Loss Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue | $1,202 | $1,105 | | Total operating expenses | $18,442 | $16,437 | | Operating loss | $(17,240) | $(15,332) | | Change in fair value of derivative liability & warrants | $(39,494) | $(8,490) | | **Net loss** | **$(63,195)** | **$(24,390)** | | **Net loss per share** | **$(0.48)** | **$(0.21)** | - The net loss for the six months ended June 30, 2025, was **$121.8 million**, which included a **$58.0 million** loss on the fair value of derivative liability and warrants and a **$14.4 million** debt extinguishment loss[10](index=10&type=chunk)[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Six Months Ended June 30 Cash Flow Summary (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(25,703) | $(19,279) | | Net cash used in investing activities | $(75,498) | $(22,319) | | Net cash provided by financing activities | $120,431 | $22,671 | | **Net increase (decrease) in cash** | **$19,536** | **$(18,905)** | - Financing activities in the first six months of 2025 were primarily driven by **$190.0 million** in proceeds from 2028 senior convertible notes, partially offset by a **$70.0 million** repayment of 2026 senior secured notes[20](index=20&type=chunk) - Cash and cash equivalents increased to **$58.9 million** at the end of the period, up from **$39.3 million** at the beginning of the year[20](index=20&type=chunk)

Company Overview - NextNav Inc. is a leader in next-generation positioning, navigation, and timing (PNT) technology, focusing on 3D geolocation solutions [4] Financial Results Announcement - NextNav will release its financial results for the second quarter ended June 30, 2025, after market close on August 6, 2025 [1] - A conference call to discuss the results and operational highlights will take place on the same day at 5:00 PM ET [1] Conference Call Registration - Registration for the conference call can be completed via a designated website, and participants will receive call details and a registrant ID [2] - Reminders will be sent to registered participants via email [2] Webcast Access - The conference call will be available via a live webcast, and a replay will be accessible until August 13, 2025 [3] - Participants must register to receive replay details and access codes [3]

Financial Data and Key Metrics Changes - NexNav's revenue for Q1 2025 was $1.5 million, an increase of $0.5 million from $1 million in the prior year period, driven primarily by increased service revenue from technology and services contracts with government and commercial customers [17] - Operating expenses for Q1 were $18.5 million, up approximately $1.3 million compared to the same period last year [18] - The net loss for Q1 was $58.6 million, which included a $24.5 million loss associated with the change in the fair value of derivative liability and a $14.4 million debt extinguishment loss, compared to a net loss of $31.6 million in Q1 2024 [18][19] - The company finished the quarter with $188.4 million in cash, cash equivalents, and short-term investments, reflecting the closing of $190 million of 5% redeemable senior secured convertible notes due 2028 [19] Business Line Data and Key Metrics Changes - The increase in revenue was primarily attributed to service revenue from technology and services contracts, indicating growth in the company's core business lines [17] Market Data and Key Metrics Changes - The FCC demonstrated meaningful progress in advancing space-based and terrestrial PNT solutions, indicating a favorable regulatory environment for NexNav's proposals [10][11] Company Strategy and Development Direction - NexNav is focused on providing a terrestrial backup to GPS, addressing vulnerabilities in GPS systems, and enhancing national security and public safety [6][7] - The company is actively working with the FCC and stakeholders to integrate its solution into a broader system of systems approach for national PNT resiliency [9][10] - The strategic financing closed in March is expected to provide additional financial flexibility and support for the company's objectives through 2025 and beyond [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the increased urgency from the current administration for a terrestrial GPS backup, positioning NexNav well for continued momentum [16][17] - The company is committed to strengthening PNT resiliency in support of national security, public safety, and the economy [16] Other Important Information - Two esteemed individuals with military and national security leadership experience were welcomed to the board of directors, which is expected to enhance the company's strategic direction [16] Q&A Session Summary Question: Can you walk us through your proposed network deployment model? - The technology is embedded in 5G and uses existing standards-based signaling mechanisms, allowing for seamless integration with incumbent mobile operators' infrastructure [22][23] Question: What would be the motivation for mobile operators to roll this out? - Mobile operators need low-band spectrum for coverage and capacity enhancements, which makes the deployment of NexNav's technology economically attractive [26][28] Question: How expensive would this be to deploy for an MNO if it's software-based? - The CapEx for adding the software would be similar to any other spectrum addition, and it does not require additional hardware modifications [35][36] Question: Do you see satellite systems as competitors or complementary? - Satellite systems are viewed as complementary, as they provide critical GPS services, but NexNav addresses vulnerabilities associated with satellite systems [41][42] Question: Is there a shortcut path to achieve your goals with the FCC? - The company is urging the FCC to issue a Notice of Proposed Rulemaking (NPRM) to facilitate rule changes, which is the necessary path for regulatory approval [48][49]

Financial Data and Key Metrics Changes - NexNav's revenue for the first quarter was $1.5 million, an increase of $0.5 million from $1 million in the prior year period, driven primarily by increased service revenue from technology and services contracts with government and commercial customers [16] - Operating expenses for the first quarter were $18.5 million, up approximately $1.3 million compared to the same period last year [17] - The net loss for the first quarter was $58.6 million, which included a $24.5 million loss associated with the change in the fair value of derivative liability and a $14.4 million debt extinguishment loss, compared to a net loss of $31.6 million in the first quarter of the previous year [17] Business Line Data and Key Metrics Changes - The increase in revenue was primarily attributed to technology and services contracts, indicating growth in the company's service offerings [16] Market Data and Key Metrics Changes - The FCC demonstrated meaningful progress in advancing space-based and terrestrial positioning, navigation, and timing (PNT) solutions, reflecting a growing recognition of the need for resilient PNT systems [8][9] Company Strategy and Development Direction - NexNav is focused on providing a terrestrial backup to GPS, addressing vulnerabilities in GPS systems, and enhancing national security and public safety [6][15] - The company is actively working with the FCC and stakeholders to integrate its solution into a broader system of systems approach for national PNT resiliency [7][9] - NexNav's strategic roadmap includes driving innovation in geolocation technology and strengthening PNT resiliency [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the FCC's engagement and the bipartisan support for developing terrestrial PNT solutions, indicating a favorable regulatory environment for NexNav's initiatives [9][11] - The company is committed to advancing geolocation services that enhance PNT resiliency for national security, public safety, and the economy [51] Other Important Information - NexNav welcomed two new board members with extensive military and national security experience, which is expected to enhance the company's strategic direction [15] - The company completed a strategic financing round, raising $190 million through senior secured convertible notes, which will provide additional financial flexibility [18] Q&A Session Summary Question: Can you walk us through your proposed network deployment model? - The technology is embedded in 5G and uses existing standards-based signaling mechanisms, allowing for seamless integration with mobile operators' infrastructure [21][22] Question: What would be the motivation for mobile operators to roll this out? - Mobile operators need low-band spectrum for coverage and capacity enhancements, which makes NexNav's solution attractive [25][26] Question: How expensive would this be to deploy for an MNO? - The capital expenditure would be similar to adding any other spectrum, and the software-based nature of the solution minimizes additional costs [33] Question: How does NexNav's technology compare to satellite systems? - NexNav views satellite systems as complementary, addressing vulnerabilities in satellite-based positioning while providing a terrestrial backup [40][42] Question: Is there a shortcut path to achieve your goals with the FCC? - The company is seeking an NPRM (Notice of Proposed Rulemaking) to facilitate rule changes, which is the standard process for regulatory adjustments [46]

Financial Data and Key Metrics Changes - NexNav's revenue for the first quarter was $1.5 million, an increase of $0.5 million from $1 million in the prior year period, driven primarily by increased service revenue from technology and services contracts with government and commercial customers [15] - Operating expenses for the first quarter were $18.5 million, up approximately $1.3 million compared to the same period last year [16] - The net loss for the first quarter was $58.6 million, which included a $24.5 million loss associated with the change in the fair value of derivative liability and a $14.4 million debt extinguishment loss, compared to a net loss of $31.6 million in the first quarter of the previous year [16][17] - The company finished the quarter with $188.4 million in cash, cash equivalents, and short-term investments [17] Business Line Data and Key Metrics Changes - The increase in revenue was primarily attributed to technology and services contracts, indicating growth in the company's service offerings [15] Market Data and Key Metrics Changes - The FCC demonstrated meaningful progress in advancing space-based and terrestrial positioning, navigation, and timing (PNT) solutions, reflecting a growing recognition of the need for resilient PNT systems [8][9] Company Strategy and Development Direction - NexNav is focused on providing a terrestrial backup to GPS, addressing vulnerabilities in GPS systems, and enhancing national security and public safety [6][14] - The company is actively working with the FCC and stakeholders to integrate its solution into a broader system of systems approach for national PNT resiliency [9][10] - NexNav's strategic roadmap includes driving innovation in geolocation technology and strengthening PNT resiliency [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the FCC's engagement and the bipartisan support for developing terrestrial PNT solutions, indicating a favorable regulatory environment for the company's initiatives [9][10] - The company is committed to advancing geolocation services that enhance PNT resiliency for national security, public safety, and the economy [50] Other Important Information - NexNav welcomed two new members to its board of directors, both with extensive military and national security leadership experience, which is expected to drive the company's agenda forward [14] Q&A Session Summary Question: Can you walk us through your proposed network deployment model? - The technology is embedded in 5G and uses existing standards-based signaling mechanisms, allowing for seamless integration with mobile operators' infrastructure [20][22] Question: What would be the motivation for mobile operators to roll this out? - Mobile operators need low-band spectrum for coverage and capacity enhancements, which makes the deployment of NexNav's solution economically attractive [25][26] Question: How expensive would this be to deploy for an MNO? - The capital expenditure would be similar to adding any other spectrum, and the software-based nature of the solution minimizes additional costs [33] Question: How does NexNav's technology compare to satellite systems? - NexNav views satellite systems as complementary, addressing vulnerabilities in satellite-based GPS while providing a terrestrial backup solution [39][41] Question: Is there a shortcut path to achieve the desired regulatory changes? - The FCC can decide on the next steps, and an NPRM is necessary for rule changes, but other processes could expedite the timeline [46][48]