[Executive Summary & Recent Developments](index=1&type=section&id=Executive%20Summary%20%26%20Recent%20Developments) NextNav, a PNT and 3D geolocation leader, expanded spectrum assets and appointed a new CEO for strategic growth [Company Overview](index=1&type=section&id=Company%20Overview) NextNav Inc. is a leader in next-generation positioning, navigation, and timing (PNT) and 3D geolocation, leveraging low-band licensed spectrum to deliver accurate, reliable, and resilient solutions for critical infrastructure, GPS resiliency, and commercial use cases - NextNav Inc. is a leader in next generation positioning, navigation, and timing (PNT) and 3D geolocation, enabling a whole new ecosystem of applications and services that rely upon 3D geolocation and PNT technology[2](index=2&type=chunk)[10](index=10&type=chunk) - Powered by low-band licensed spectrum, NextNav's positioning and timing technologies deliver accurate, reliable, and resilient 3D PNT solutions for critical infrastructure, GPS resiliency and commercial use cases[10](index=10&type=chunk) [Strategic Initiatives & Leadership Changes](index=1&type=section&id=Strategic%20Initiatives%20%26%20Leadership%20Changes) NextNav announced an agreement to acquire additional 4 MHz 900 MHz spectrum licenses for up to $50 million, increasing its total low-band spectrum assets to 3.5 billion MHz-PoPs. Mariam Sorond was appointed CEO, and John Muleta joined the Board of Directors, both bringing extensive telecommunications and spectrum expertise to optimize spectrum use and drive growth - NextNav signed an agreement to acquire additional spectrum licenses covering **4 MHz in the lower 900 MHz band for up to $50 million**, bringing its combined spectrum assets to a total of **3.5 billion MHz-PoPs** of low band spectrum[3](index=3&type=chunk)[6](index=6&type=chunk) - Mariam Sorond was appointed NextNav's new Chief Executive Officer, effective November 29, 2023, bringing over **28 years of technical and strategy experience** in the telecommunications industry[3](index=3&type=chunk)[6](index=6&type=chunk) - John Muleta was appointed to the Board of Directors, effective January 18, 2024, bringing deep expertise in wireless policies, spectrum allocation, and public safety[6](index=6&type=chunk) [Financial Highlights (Summary)](index=1&type=section&id=Financial%20Highlights%20(Summary)) NextNav reported increased Q4 revenue but widened losses; full-year revenue was flat, net loss increased, ending with strong cash [Fourth Quarter 2023 Financial Performance](index=1&type=section&id=Q4%202023%20Financial%20Performance) NextNav reported Q4 2023 revenue of $1.2 million, a significant increase from the prior year, primarily due to higher recurring service revenue. However, the operating loss widened to $19.9 million, and net loss increased to $16.4 million, influenced by increased stock-based compensation and payroll expenses, despite a gain on fair value of warrants Fourth Quarter 2023 Financial Performance | Metric | Q4 2023 (in thousands) | Q4 2022 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Revenue | $1,200 | $803 | +49.4% | | Operating Loss | $(19,900) | $(14,500) | -37.2% | | Net Loss | $(16,400) | $(12,500) | -31.2% | | Gain on fair value of warrants | $5,700 | $1,500 | +280.0% | - The increase in Q4 revenue was primarily attributable to increased recurring service revenue from technology and services contracts with commercial customers[6](index=6&type=chunk) - The increase in Q4 operating loss was primarily driven by increases in stock-based compensation expense and payroll-related expenses[6](index=6&type=chunk) [Full Year 2023 Financial Performance](index=1&type=section&id=FY%202023%20Financial%20Performance) For the full year 2023, revenue remained flat at $3.9 million, with increased recurring service revenue offsetting a decrease in integration revenue. The operating loss slightly improved to $63.5 million due to lower stock-based compensation, but the net loss significantly increased to $71.7 million, primarily due to a loss on the fair value of warrants compared to a gain in the prior year. The company ended 2023 with $81.9 million in cash and cash equivalents and $48.4 million in net debt Full Year 2023 Financial Performance | Metric | FY 2023 (in thousands) | FY 2022 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Revenue | $3,900 | $3,900 | 0.0% | | Operating Loss | $(63,500) | $(65,500) | +3.1% | | Net Loss | $(71,700) | $(40,100) | -78.8% | | Loss (Gain) on fair value of warrants | $(4,100) | $24,700 | N/A | - Full year revenue was flat with the prior year, with a decrease in integration revenue partially offset by increased recurring service revenue from technology and service contracts with commercial customers[6](index=6&type=chunk) - Full year operating loss improved primarily driven by lower stock-based compensation expense, partially offset by an increase in payroll-related expenses[6](index=6&type=chunk) Balance Sheet Highlights (as of December 31, 2023) | Metric | Amount (in millions) | | :--- | :--- | | Cash and cash equivalents | $81.9 | | Short term investments | $4.0 | | Debt (net) | $48.4 | [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) NextNav's balance sheet shows increased assets and liabilities, decreased equity, widened comprehensive loss, and improved cash flows [Consolidated Balance Sheets](index=4&type=section&id=NEXTNAV%20INC.%20CONSOLIDATED%20BALANCE%20SHEETS) As of December 31, 2023, NextNav's total assets increased to $162.2 million from $123.8 million in 2022, driven by a significant increase in cash and cash equivalents and the addition of long-term debt. Total liabilities rose sharply to $82.1 million from $19.9 million, primarily due to new long-term debt. Stockholders' equity decreased to $78.7 million from $100.0 million Consolidated Balance Sheet Highlights (in thousands) | Metric | Dec 31, 2023 | Dec 31, 2022 | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $81,878 | $47,230 | +73.4% | | Total current assets | $91,220 | $61,190 | +49.1% | | Total assets | $162,158 | $123,788 | +30.9% | | Total current liabilities | $9,803 | $8,887 | +10.3% | | Long-term debt, net | $48,447 | — | N/A | | Total liabilities | $82,062 | $19,924 | +311.9% | | Total stockholders' equity (deficit) | $78,734 | $100,017 | -21.3% | [Consolidated Statements of Comprehensive Loss](index=5&type=section&id=NEXTNAV%20INC.%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20LOSS) For the year ended December 31, 2023, NextNav reported a net loss of $71.7 million, a substantial increase from $40.1 million in 2022. This was primarily influenced by a $4.1 million loss on the fair value of warrants in 2023, compared to a $24.7 million gain in 2022, and increased interest expense. Revenue remained flat at $3.9 million, while operating expenses slightly decreased Consolidated Statements of Comprehensive Loss (in thousands, except per share amounts) | Metric | FY 2023 | FY 2022 | Change | | :--- | :--- | :--- | :--- | | Revenue | $3,862 | $3,926 | -1.6% | | Total operating expenses | $67,391 | $69,462 | -3.0% | | Operating loss | $(63,529) | $(65,536) | +3.1% | | Interest income (expense) | $(3,664) | $901 | N/A | | Change in fair value of warrants | $(4,101) | $24,675 | N/A | | Net loss | $(71,735) | $(40,116) | -78.8% | | Net loss per share (basic and diluted) | $(0.66) | $(0.40) | -65.0% | [Consolidated Statements of Cash Flows](index=6&type=section&id=NEXTNAV%20INC.%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) In 2023, NextNav's net cash used in operating activities decreased to $35.4 million from $37.1 million in 2022. Investing activities generated $1.1 million in cash, a significant improvement from a $15.7 million outflow in 2022, mainly due to higher proceeds from the sale and maturity of marketable securities. Financing activities provided $69.0 million, primarily from $70.0 million in debt proceeds, leading to a net increase in cash and cash equivalents of $34.6 million, ending the year with $81.9 million Consolidated Statements of Cash Flows (in thousands) | Metric | FY 2023 | FY 2022 | Change | | :--- | :--- | :--- | :--- | | Net cash used in operating activities | $(35,440) | $(37,095) | +4.5% | | Net cash provided by (used in) investing activities | $1,074 | $(15,736) | N/A | | Net cash provided by financing activities | $68,984 | $43 | N/A | | Net increase (decrease) in cash and cash equivalents | $34,648 | $(52,846) | N/A | | Cash and cash equivalents at end of period | $81,878 | $47,230 | +73.4% | - Net cash provided by financing activities in 2023 was primarily driven by **$70.0 million in proceeds from debt**[20](index=20&type=chunk) [Additional Information](index=2&type=section&id=Additional%20Information) This section covers conference call details and important disclaimers regarding forward-looking statements and business risks [Conference Call Details](index=2&type=section&id=Conference%20Call%20Information) NextNav hosted a conference call for analysts and investors on March 13, 2024, at 5:00 pm ET, with registration available online and a replay accessible via phone or the company's investor relations website until March 20, 2024 - NextNav hosted a conference call for analysts and investors at **5:00 pm ET on Wednesday, March 13, 2024**[7](index=7&type=chunk) - Registration for the conference call was available online, and a live webcast or replay could be accessed via the Company's investor relations website, with a phone replay available through **March 20, 2024**[8](index=8&type=chunk)[9](index=9&type=chunk) [Forward-Looking Statements & Risks](index=3&type=section&id=Forward-Looking%20Statements) The press release contains forward-looking statements regarding future results, business strategies, spectrum capacity, and PNT services, which are subject to known and unknown risks. Key risks include regulatory approval for license transfers, disruption to operations, ability to realize anticipated benefits, costs, and broader economic factors. NextNav cautions against undue reliance and undertakes no commitment to update these statements - This press release contains 'forward-looking statements' relating to analyses and other information based on forecasts of future results and estimates, including NextNav's future prospects, developments, business strategies, and the advancement of its PNT services[12](index=12&type=chunk) - Such statements are subject to known and unknown risks, uncertainties, assumptions, and other important factors, including the risk that requisite regulatory approvals are not obtained, disruption of current plans and operations, the ability to recognize anticipated benefits of transactions, costs related to transactions, and adverse effects from economic, business, and/or competitive factors[13](index=13&type=chunk) - NextNav cautions not to place undue reliance upon any forward-looking statements and undertakes no commitment to update or revise them[13](index=13&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number: 001-40985 NextNav Inc. (Exact name of registrant as specified in its charter) | Delaware | 87-0854654 | | --- | --- | | (State ...

Part I. FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) H1 2023 unaudited financials report a **$32.1 million net loss**, with **assets at $161.5 million** and **liabilities at $66.4 million** from new debt [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) | Balance Sheet Item | June 30, 2023 ($ thousands) | December 31, 2022 ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 52,784 | 47,230 | +11.8% | | Total current assets | 89,775 | 61,190 | +46.7% | | Total assets | 161,468 | 123,788 | +30.4% | | Total current liabilities | 9,676 | 8,887 | +8.9% | | Long term debt, net | 34,042 | — | N/A | | Total liabilities | 66,390 | 19,924 | +233.2% | | Total stockholders' equity | 91,231 | 100,017 | -8.8% | [Condensed Consolidated Statements of Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Metric ($ thousands) - Q2 Comparison | Metric ($ thousands) | Q2 2023 | Q2 2022 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 800 | 1,421 | -43.7% | | Operating loss | (15,030) | (17,016) | +11.7% | | Net income (loss) | (15,770) | 827 | N/A | Metric ($ thousands) - H1 Comparison | Metric ($ thousands) | H1 2023 | H1 2022 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 1,630 | 2,620 | -37.8% | | Operating loss | (28,980) | (33,064) | +12.3% | | Net loss | (32,119) | (8,884) | -261.5% | - The significant difference in net income/loss between the periods is largely driven by the change in fair value of warrants, which was a **$3.1 million expense in H1 2023** versus a **$24.2 million gain in H1 2022**[15](index=15&type=chunk)[21](index=21&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Activity ($ thousands) | Cash Flow Activity ($ thousands) | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | (15,919) | (16,774) | | Net cash used in investing activities | (26,659) | (785) | | Net cash provided by financing activities | 48,146 | 47 | | **Net change in cash** | **5,554** | **(17,554)** | - The primary driver of financing cash flow in H1 2023 was the **$50 million proceeds from senior secured notes**, while investing activities increased due to the purchase of marketable securities[21](index=21&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The company's Pinnacle system provides "floor-level" altitude service, while its TerraPoiNT system is a terrestrial-based, encrypted network designed to overcome GPS limitations[23](index=23&type=chunk) - Management believes that cash, cash equivalents, and marketable securities of **$85.0 million as of June 30, 2023**, will be sufficient to meet working capital and capital expenditure needs for the next 12 months[24](index=24&type=chunk)[25](index=25&type=chunk) - On May 9, 2023, the Company issued **$50.0 million in senior secured notes** with a 10% fixed interest rate, maturing in December 2026, and in conjunction, **18,518,520 warrants** were issued to the lenders[80](index=80&type=chunk)[83](index=83&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q2 2023 revenue fell 44% due to lower integration services, operating expenses decreased, and new debt bolstered liquidity [Overview](index=22&type=section&id=Overview) - NextNav is a leader in next-generation PNT solutions, leveraging its 8MHz of 900MHz spectrum, with its Pinnacle network providing "floor-level" altitude data and the TerraPoiNT system offering a terrestrial-based alternative to GPS[104](index=104&type=chunk) - Key customers and partners for the Pinnacle service include FirstNet®, Verizon for E911, and various public safety and commercial app development platforms like Unity Engine and Qualcomm[105](index=105&type=chunk) - The October 2022 acquisition of Nestwave is expected to reduce capital and operating expenditures for the national deployment of the TerraPoiNT network and improve spectral efficiency[108](index=108&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Q2 2023 revenue fell 44% to **$0.8 million**, and H1 2023 revenue decreased 38% to **$1.6 million**, primarily from lower integration services Comparison of Three Months Ended June 30, 2023 and 2022 | Metric ($ thousands) | Q2 2023 | Q2 2022 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | 800 | 1,421 | (621) | (43.7)% | | Cost of Goods Sold | 3,142 | 3,001 | 141 | 4.7% | | Research and Development | 4,994 | 4,170 | 824 | 19.8% | | Selling, General & Admin | 6,516 | 10,382 | (3,866) | (37.2)% | Comparison of Six Months Ended June 30, 2023 and 2022 | Metric ($ thousands) | H1 2023 | H1 2022 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | 1,630 | 2,620 | (990) | (37.8)% | | Cost of Goods Sold | 6,165 | 6,038 | 127 | 2.1% | | Research and Development | 9,572 | 8,158 | 1,414 | 17.3% | | Selling, General & Admin | 12,570 | 19,722 | (7,152) | (36.3)% | - The decrease in SG&A for both the three and six-month periods was primarily driven by a significant reduction in **stock-based compensation expense ($2.7 million for Q2 and $5.7 million for H1)**[124](index=124&type=chunk)[133](index=133&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) The company holds **$85.0 million in cash, cash equivalents, and marketable securities** and issued **$50.0 million in senior secured notes** in May 2023 - As of June 30, 2023, the company had **$85.0 million in cash, cash equivalents, and marketable securities**[138](index=138&type=chunk) - In May 2023, the company issued **$50.0 million in senior secured notes** with a 10% fixed interest rate, maturing in December 2026, and lenders exercised an option to purchase an additional **$20.0 million in notes**, which were issued on July 6, 2023[140](index=140&type=chunk) - Management believes its current cash and marketable securities are sufficient to meet working capital and capital expenditure needs for the next 12 months[139](index=139&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risks were reported compared to the 2022 Annual Report on Form 10-K - There have been no material changes in market risks from those disclosed in the 2022 Form 10-K[151](index=151&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of June 30, 2023, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2023[153](index=153&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[155](index=155&type=chunk) Part II. OTHER INFORMATION [Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any legal matters expected to materially adversely affect its business or financials - The company is not involved in any legal proceedings expected to have a material adverse effect on its business[158](index=158&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) Investors are directed to review risk factors in the 2022 Form 10-K and Q1 2023 10-Q, as no new material risks are disclosed - Investors are directed to review the risk factors detailed in the Annual Report on Form 10-K for the year ended December 31, 2022, and the Q1 2023 10-Q[159](index=159&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or issuer purchases of equity securities occurred during the period - There were no unregistered sales of equity securities or issuer purchases of equity securities in the quarter[161](index=161&type=chunk) [Defaults Upon Senior Securities](index=33&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[162](index=162&type=chunk) [Other Information](index=33&type=section&id=Item%205.%20Other%20Information) No other information required to be disclosed under this item was reported - None[164](index=164&type=chunk) [Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists exhibits including governance documents and agreements related to the May 2023 debt financing - Exhibits filed with the report include the Note Purchase Agreement, Indenture, and Warrant Agreement related to the May 2023 senior secured notes offering[167](index=167&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number: 001-40985 NextNav Inc. (Exact name of registrant as specified in its charter) | Delaware | 87-0854654 | | --- | --- | | (State or ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number: 001-40985 NextNav Inc. (Exact name of registrant as specified in its charter) Delaware 87-0854654 (State or other jurisdiction of incor ...

NextNav, Inc. (NASDAQ:NN) Q4 2022 Earnings Conference Call March 22, 2023 5:00 PM ET Company Participants Gary Parsons - Chairman Ganesh Pattabiraman - Co-Founder & CEO Chris Gates - CFO Conference Call Participants Michael Crawford - B. Riley Securities Timothy Horan - Oppenheimer Jaime Perez - RF Lafferty Operator Good afternoon, everyone, and welcome to NextNav's Fourth Quarter 2022 Earnings Conference Call. Participating on today's call are Gary Parsons, NextNav's Chairman; Ganesh Pattabiraman, NextNav' ...

NextNav, Inc. (NASDAQ:NN) Q3 2022 Earnings Conference Call November 10, 2022 5:00 PM ET Company Participants Gary Parsons - Chairman Ganesh Pattabiraman - Co-Founder & CEO Chris Gates - CFO Conference Call Participants Mike Crawford - B. Riley Timothy Horan - Oppenheimer Jaime Perez - RF Lafferty Operator Good afternoon, everyone, and welcome to NextNav's Third Quarter 2022 Earnings Conference Call. Participating on today's call are Gary Parsons, NextNav's Chairman; Ganesh Pattabiraman, NextNav's Co-Founder ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number: 001-40985 NextNav Inc. (Exact name of registrant as specified in its charter) | Delaware | 87-0854654 | | --- | --- | | (State ...

Cautionary Note Regarding Forward-Looking Statements This section provides a cautionary note on forward-looking statements, highlighting their inherent risks and the company's policy on updates [Forward-Looking Statements Disclosure](index=3&type=section&id=Forward-Looking%20Statements%20Disclosure) This section outlines forward-looking statements, their inherent risks, and the company's policy on updates - Forward-looking statements are based on current information, expectations, forecasts, and assumptions, involving judgments, risks, and uncertainties[10](index=10&type=chunk) - The company does not undertake to update or revise any forward-looking statements unless required by applicable securities laws[10](index=10&type=chunk) - Readers should review 'Risk Factors' in this 10-Q and the Annual Report on Form 10-K for factors that could cause actual results to differ materially[11](index=11&type=chunk) Part I. Financial Information This part presents NextNav Inc.'s unaudited condensed consolidated financial statements, management's discussion, and market risk disclosures [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents NextNav Inc.'s unaudited condensed consolidated financial statements for Q2 2022, including core statements and notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section details the company's financial position, including assets, liabilities, and equity at specific dates Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2022 (in thousands) | December 31, 2021 (in thousands) | | :----------------------------------- | :----------------------------- | :------------------------------- | | Cash and cash equivalents | $82,522 | $100,076 | | Total current assets | $85,524 | $106,332 | | Total assets | $123,949 | $136,823 | | Total current liabilities | $7,671 | $6,680 | | Warrants | $4,725 | $28,875 | | Total liabilities | $19,408 | $36,866 | | Total stockholders' equity | $104,541 | $99,957 | - Cash and cash equivalents decreased by **$17.55 million** from December 31, 2021, to June 30, 2022[14](index=14&type=chunk) - Total liabilities decreased significantly by **$17.458 million**, primarily due to a **$24.15 million** decrease in warrant liability[14](index=14&type=chunk)[73](index=73&type=chunk) [Condensed Consolidated Statements of Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) This section presents the company's revenues, expenses, and net income or loss over specific reporting periods Condensed Consolidated Statements of Comprehensive Loss (in thousands) | Metric (in thousands) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $1,421 | $216 | $2,620 | $467 | | Total operating expenses | $18,437 | $8,853 | $35,684 | $21,714 | | Operating loss | $(17,016) | $(8,637) | $(33,064) | $(21,247) | | Change in fair value of warrants | $17,763 | $(27,182) | $24,150 | $(38,841) | | Net income (loss) | $827 | $(38,975) | $(8,884) | $(66,043) | | Basic EPS | $0.01 | $(6.07) | $(0.09) | $(10.87) | - Revenue for the three months ended June 30, 2022, increased by **557.9%** to **$1.421 million** from **$0.216 million** in the prior year period[17](index=17&type=chunk)[107](index=107&type=chunk) - The company reported a net income of **$0.827 million** for the three months ended June 30, 2022, a significant improvement from a net loss of **$38.975 million** in the same period last year, primarily due to a positive change in the fair value of warrants[17](index=17&type=chunk)[114](index=114&type=chunk) [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) This section details changes in the company's equity, including stock issuance, compensation, and retained earnings adjustments - Total stockholders' equity increased from **$99.957 million** at December 31, 2021, to **$104.541 million** at June 30, 2022[14](index=14&type=chunk) - Stock-based compensation expense for the six months ended June 30, 2022, was **$13.958 million**, a substantial increase from **$0.688 million** in the prior year period[20](index=20&type=chunk)[40](index=40&type=chunk) - The Business Combination on October 28, 2021, resulted in the conversion of all outstanding Class C and Class D Redeemable Preferred Units into common stock[82](index=82&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section outlines the company's cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(16,774) | $(21,659) | | Net cash used in investing activities | $(785) | $(918) | | Net cash provided by financing activities | $47 | $16,647 | | Net decrease in cash, cash equivalents and restricted cash | $(17,554) | $(5,930) | | Cash, cash equivalents and restricted cash at end of period | $82,522 | $7,739 | - Net cash used in operating activities decreased by **$4.885 million**, from **$21.659 million** in H1 2021 to **$16.774 million** in H1 2022[22](index=22&type=chunk)[129](index=129&type=chunk) - Net cash provided by financing activities significantly decreased from **$16.647 million** in H1 2021 (primarily from senior secured loan) to **$47 thousand** in H1 2022 (primarily from stock option exercises)[22](index=22&type=chunk)[136](index=136&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements [1. Organization and Business; Business Combination](index=9&type=section&id=1.%20Organization%20and%20Business%3B%20Business%20Combination) - NextNav Inc. delivers next-generation positioning, navigation, and timing (PNT) solutions through its Pinnacle system (floor-level altitude) and TerraPoiNT system (terrestrial-based, encrypted PNT signal on 900 MHz spectrum)[24](index=24&type=chunk) - The company consummated a business combination on October 28, 2021, with Spartacus Acquisition Corporation, which was accounted for as a reverse recapitalization with Holdings as the accounting acquirer[26](index=26&type=chunk)[27](index=27&type=chunk) [2. Summary of Significant Accounting Policies](index=9&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) - The unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP and SEC instructions for interim financial information[31](index=31&type=chunk) Revenue Disaggregation (in thousands) | Category | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Commercial | $1,302 | $205 | $2,482 | $205 | | Government contracts | $7 | $5 | $17 | $256 | | Equipment sales | $112 | $6 | $121 | $6 | | Total revenue | $1,421 | $216 | $2,620 | $467 | Stock-Based Compensation Expense (in thousands) | Expense Category | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Cost of goods sold | $539 | $54 | $1,183 | $54 | | Research and development | $1,506 | $128 | $3,300 | $272 | | Selling, general and administrative | $4,718 | $143 | $9,475 | $362 | | Total stock-based compensation expense | $6,763 | $325 | $13,958 | $688 | - The company adopted ASU 2016-02 (Leases) on January 1, 2022, recognizing operating lease right-of-use assets and liabilities of **$13.4 million** and **$10.5 million**, respectively, with a cumulative effect adjustment to retained earnings of **$0.5 million**[53](index=53&type=chunk) [3. Accrued Expenses and Other Current Liabilities](index=13&type=section&id=3.%20Accrued%20Expenses%20and%20Other%20Current%20Liabilities) Accrued Expenses and Other Current Liabilities (in thousands) | Category | June 30, 2022 | December 31, 2021 | | :-------------------------------- | :------------ | :---------------- | | Accrued salary and other employee liabilities | $2,086 | $2,423 | | Accrued legal and professional services | $283 | $1,540 | | Other accrued liabilities | $1,885 | $637 | | Total | $4,254 | $4,600 | - Accrued legal and professional services decreased significantly from **$1.54 million** to **$0.283 million**, while other accrued liabilities increased from **$0.637 million** to **$1.885 million**[56](index=56&type=chunk) [4. Leases](index=13&type=section&id=4.%20Leases) Operating Lease Expense (in thousands) | Lease Cost (in thousands) | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2022 | | :------------------------ | :------------------------------- | :----------------------------- | | Operating lease cost | $945 | $2,052 | | Variable lease cost | $25 | $51 | | Short-term lease cost | $57 | $114 | - As of June 30, 2022, the weighted average remaining lease term for operating leases was **4.0 years**, with a weighted average discount rate of **4.5%**[59](index=59&type=chunk) - Future undiscounted lease payments total **$9.7 million**, with **$1.737 million** due in the remainder of 2022[60](index=60&type=chunk) [5. Warrants and Warrant Liability](index=14&type=section&id=5.%20Warrants%20and%20Warrant%20Liability) - As of June 30, 2022, NextNav had **18,749,990 warrants** outstanding, comprising **9,999,990 Public Warrants** and **8,750,000 Private Placement Warrants**, each exercisable at **$11.50 per share**[62](index=62&type=chunk)[63](index=63&type=chunk) - AT&T exercised its warrant on May 23, 2022, using a net settlement method, receiving **4,308,297 shares** of common stock[67](index=67&type=chunk) [6. Fair Value](index=15&type=section&id=6.%20Fair%20Value) Fair Value Hierarchy for Financial Assets and Liabilities (in thousands) | Item | Level 1 | Level 2 | Level 3 | Total | | :-------------------------------------- | :------ | :-------- | :-------- | :-------- | | **June 30, 2022** | | | | | | Cash and Cash Equivalents - Money Market Funds | $9,930 | — | — | $9,930 | | Cash and Cash Equivalents - U.S. Government Agency Bonds | — | $65,125 | — | $65,125 | | Warrants | — | — | $4,725 | $4,725 | | **December 31, 2021** | | | | | | Warrants | — | — | $28,875 | $28,875 | - The fair value of warrants (Level 3 liability) decreased from **$28.875 million** at December 31, 2021, to **$4.725 million** at June 30, 2022, primarily due to a fair value adjustment of **$(24.150) million**[69](index=69&type=chunk)[73](index=73&type=chunk) Monte Carlo Simulation Assumptions for Warrants | Assumption | June 30, 2022 Values | December 31, 2021 Values | | :------------------ | :------------------- | :----------------------- | | Stock Price | $2.27 | $8.76 | | Strike price | $11.50 | $11.50 | | Holding Period/Term (years) | 4.33 | 4.80 | | Volatility | 72.00% | 52.90% | | Risk-Free Rate | 3.00% | 1.23% | | Fair value of warrants | $0.54 | $3.30 | [7. Common Stock and Convertible Preferred Units](index=16&type=section&id=7.%20Common%20Stock%20and%20Convertible%20Preferred%20Units) - As of June 30, 2022, NextNav had **101,386,973 shares** of common stock issued and **101,386,800 shares** outstanding[75](index=75&type=chunk) - All outstanding Class C and Class D Redeemable Preferred Units of Holdings converted into **5,365,566** and **42,286,068 shares** of NextNav common stock, respectively, in connection with the Business Combination on October 28, 2021[82](index=82&type=chunk) [8. Commitments and Contingencies](index=17&type=section&id=8.%20Commitments%20and%20Contingencies) - On June 3, 2022, the Company entered into a Stock Investment Agreement to purchase **333,334 shares** of MetCom Inc.'s Class B2 Preferred Stock for approximately **$1.1 million**, which closed on July 15, 2022[83](index=83&type=chunk) - As of June 30, 2022, the Company was not involved in any legal matters that management believes would have a material adverse effect on its business, financial condition, results of operations, or cash flows[84](index=84&type=chunk) [9. Income Taxes](index=17&type=section&id=9.%20Income%20Taxes) - A valuation allowance has been established against the Company's U.S. federal and state deferred tax assets, resulting in an annualized effective tax rate of **0%** for U.S. operations[85](index=85&type=chunk) - For the three months ended June 30, 2022, the effective tax rate was **0.98%** on a pretax income of **$0.8 million**, and for the six months, it was **0.29%** on a pretax loss of **$8.9 million**, both primarily due to foreign tax activity[85](index=85&type=chunk) [10. Subsequent Events](index=17&type=section&id=10.%20Subsequent%20Events) - Other than the MetCom share purchase disclosed in Note 8, no subsequent events requiring disclosure occurred through the date of this Quarterly Report on Form 10-Q[86](index=86&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on NextNav's financial condition and operational results for Q2 2022, including business overview, performance, and liquidity [Overview](index=18&type=section&id=Overview) - NextNav is a market leader in next-generation positioning, navigation, and timing (PNT) solutions, addressing limitations of GPS for applications like public safety, autonomous vehicles, and the app economy[89](index=89&type=chunk) - The Pinnacle network provides 'floor-level' altitude detection to over **90%** of commercial structures over three stories in the U.S. and is used by FirstNet® for public safety and various commercial apps[90](index=90&type=chunk) - The TerraPoiNT system, deployed in San Francisco and **51 other markets**, broadcasts an encrypted PNT signal on licensed **900 MHz spectrum**, offering GPS redundancy and improved performance in urban/indoor environments[91](index=91&type=chunk)[92](index=92&type=chunk) [Public Company Costs](index=19&type=section&id=Public%20Company%20Costs) - As a public company, NextNav expects to incur additional annual expenses for directors' and officers' liability insurance, director fees, and increased internal/external accounting, legal, and administrative resources[96](index=96&type=chunk) [Key Components of Results of Operations](index=19&type=section&id=Key%20Components%20of%20Results%20of%20Operations) - Revenue is derived from 'floor-level' altitude location data, PNT products/services, wireless carrier contracts, application developers, government contracts, equipment sales, and technology licensing[97](index=97&type=chunk) - Operating expenses include Cost of Goods Sold (personnel, site leases, equipment maintenance), Research and Development (personnel, software/hardware development, cloud hosting), Selling, General and Administrative (personnel, professional services, D&O insurance, marketing), and Depreciation and Amortization[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk)[103](index=103&type=chunk) - Interest income/expense relates to cash and cash equivalents balances and the senior secured loan facility (fully repaid in Q4 2021)[104](index=104&type=chunk) [Results of Operations](index=20&type=section&id=Results%20of%20Operations) Consolidated Statements of Operations (in thousands) | Metric (in thousands) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $1,421 | $216 | $2,620 | $467 | | Total operating expenses | $18,437 | $8,853 | $35,684 | $21,714 | | Operating loss | $(17,016) | $(8,637) | $(33,064) | $(21,247) | | Interest income (expense) | $109 | $(3,077) | $109 | $(5,858) | | Other income (expense) | $17,726 | $(27,248) | $24,097 | $(38,910) | | Net profit (loss) | $827 | $(38,975) | $(8,884) | $(66,043) | [Comparison of the Three Months Ended June 30, 2022 and 2021](index=21&type=section&id=Comparison%20of%20the%20Three%20Months%20Ended%20June%2030%2C%202022%20and%202021) - Revenue increased by **$1.2 million (558%)** to **$1.4 million**, driven by commercial technology and services contracts[107](index=107&type=chunk) - Total operating expenses increased by **$9.584 million (108%)** to **$18.437 million**, primarily due to increases in stock-based compensation across COGS, R&D, and SG&A[106](index=106&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk)[111](index=111&type=chunk) - Interest income improved by **$3.186 million**, shifting from an expense of **$3.1 million** to income of **$0.1 million**, due to debt repayment[113](index=113&type=chunk) - Other income (expense) saw a positive swing of **$44.974 million**, moving from an expense of **$27.2 million** to income of **$17.7 million**, mainly due to changes in the fair value of warrants[114](index=114&type=chunk) [Comparison of the Six Months Ended June 30, 2022 and 2021](index=23&type=section&id=Comparison%20of%20the%20Six%20Months%20Ended%20June%2030%2C%202022%20and%202021) - Revenue increased by **$2.2 million (461%)** to **$2.6 million**, primarily from commercial technology and services contracts[116](index=116&type=chunk) - COGS decreased by **$3.6 million (37%)** to **$6.0 million**, mainly due to a **$5.3 million** decrease in contingent rent expense related to warrants, partially offset by increased stock-based compensation[117](index=117&type=chunk) - R&D expenses increased by **$3.2 million (66%)** to **$8.2 million**, driven by a **$3.0 million** increase in stock-based compensation and higher payroll[118](index=118&type=chunk) - SG&A expenses increased by **$13.2 million (202%)** to **$19.7 million**, largely due to a **$9.1 million** increase in stock-based compensation, higher D&O insurance, and payroll[120](index=120&type=chunk) - Interest income improved by **$5.967 million**, shifting from an expense of **$5.9 million** to income of **$0.1 million**, due to debt repayment[122](index=122&type=chunk) - Other income (expense) saw a positive swing of **$63.007 million**, moving from an expense of **$38.9 million** to income of **$24.1 million**, primarily due to changes in the fair value of warrants[123](index=123&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) - NextNav has incurred recurring losses and negative cash flows, historically relying on debt and equity financings[25](index=25&type=chunk)[125](index=125&type=chunk) - All outstanding debt under the senior secured loan facility was repaid and terminated in connection with the Business Combination in Q4 2021[126](index=126&type=chunk) - As of June 30, 2022, the company had **$82.5 million** in cash and cash equivalents and an accumulated deficit of **$657.3 million**[127](index=127&type=chunk) - Management believes current cash and cash equivalents will be sufficient for working capital and capital expenditure needs for the next **12 months**, with longer-term needs met through existing balances, operations, or future equity/debt offerings[127](index=127&type=chunk) [Pandemic Impact](index=25&type=section&id=Pandemic%20Impact) - The full impact of the COVID-19 pandemic remains uncertain, affecting duration, economic recovery, supply chain disruptions, and labor availability/costs[128](index=128&type=chunk) - Management actively monitors financial condition, liquidity, operations, and workforce, expecting these factors to continue affecting operations through the remainder of 2022[128](index=128&type=chunk) [Cash Flows](index=25&type=section&id=Cash%20Flows) Summary of Cash Flows (in thousands) | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash (used in) operating activities | $(16,774) | $(21,659) | | Net cash (used in) investing activities | $(785) | $(918) | | Net cash provided by financing activities | $47 | $16,647 | [Cash Flows from Operating Activities](index=26&type=section&id=Cash%20Flows%20from%20Operating%20Activities) - Net cash used in operating activities was **$16.8 million** for H1 2022, primarily from a net loss of **$8.9 million**, adjusted for non-cash charges like **$14.0 million** in stock-based compensation and non-cash income of **$24.2 million** from warrant fair value changes[132](index=132&type=chunk) - Net cash used in operating activities was **$21.7 million** for H1 2021, primarily from a net loss of **$66.0 million**, adjusted for non-cash charges like **$38.8 million** from warrant fair value changes and **$5.5 million** for contingent rent expense[133](index=133&type=chunk) [Cash Flows from Investing Activities](index=26&type=section&id=Cash%20Flows%20from%20Investing%20Activities) - Net cash used in investing activities was **$0.8 million** for H1 2022, mainly for network asset deployment and internal use software[134](index=134&type=chunk) - Net cash used in investing activities was **$0.9 million** for H1 2021, primarily for Pinnacle Network deployment[135](index=135&type=chunk) [Cash Flows from Financing Activities](index=26&type=section&id=Cash%20Flows%20from%20Financing%20Activities) - Net cash provided by financing activities was **$47 thousand** for H1 2022, mainly from stock option exercises[136](index=136&type=chunk) - Net cash provided by financing activities was **$16.6 million** for H1 2021, primarily from borrowing under the Fortress Facility[136](index=136&type=chunk) [Critical Accounting Policies and Significant Management Estimates](index=26&type=section&id=Critical%20Accounting%20Policies%20and%20Significant%20Management%20Estimates) - There have been no material changes to the critical accounting policies and estimates as of June 30, 2022, compared to those outlined in the 2021 Form 10-K[137](index=137&type=chunk) [Recently Issued and Adopted Accounting Standards](index=26&type=section&id=Recently%20Issued%20and%20Adopted%20Accounting%20Standards) - Information regarding new accounting pronouncements and their impact is detailed in Note 2 to the condensed consolidated financial statements[138](index=138&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that there have been no material changes in the company's market risks since the disclosures in its 2021 Annual Report on Form 10-K - No material changes in market risks have occurred since those disclosed in Part II, Item 7A of the 2021 Form 10-K[140](index=140&type=chunk) [Item 4. Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the company's disclosure controls and procedures, confirming their effectiveness as of June 30, 2022, and notes that disclosure related to changes in internal control over financial reporting is ongoing for newly public companies [Disclosure Controls and Procedures](index=27&type=section&id=Disclosure%20Controls%20and%20Procedures) - The CEO and CFO evaluated the effectiveness of disclosure controls and procedures as of June 30, 2022, concluding they were effective[142](index=142&type=chunk) [Changes in Internal Control over Financial Reporting](index=27&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) - This Quarterly Report does not include disclosure related to changes in internal control over financial reporting, as the design and ongoing development of the framework is ongoing for newly public companies[143](index=143&type=chunk) Part II. Other Information [Item 1. Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) This section confirms the company's involvement in legal matters, none of which are expected to have a material adverse effect - The company does not believe any current legal matters, individually or in aggregate, will have a material adverse effect on its business, financial condition, results of operations, or cash flows[145](index=145&type=chunk) [Item 1A. Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) This section highlights key risks for NextNav, including intense competition, E911 adoption challenges, and geopolitical impacts - NextNav faces intense competition, especially from competitors offering free location services, which could hinder customer acquisition and retention[147](index=147&type=chunk) - The market for E911 services may be reduced if the FCC accepts statements that competitor solutions meet requirements, impacting NextNav's ability to sell its Pinnacle service to additional wireless carriers[147](index=147&type=chunk)[148](index=148&type=chunk) - The company's ability to offer E911 services is dependent on wireless device manufacturers like Apple and Google incorporating its software, with no assurance of approval or adoption[149](index=149&type=chunk) - Military action in Ukraine and resulting geopolitical effects may increase risks related to supply chain, cybersecurity, foreign currency fluctuations, and other factors, potentially impacting the global economy and NextNav's operations[151](index=151&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports that there were no unregistered sales of equity securities or use of proceeds from registered equity securities during the reporting period - There were no unregistered sales of equity securities during the period[152](index=152&type=chunk) - There was no use of proceeds from the sale of registered equity securities during the period[153](index=153&type=chunk) [Item 3. Defaults Upon Senior Securities](index=29&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section indicates that there were no defaults upon senior securities during the reporting period - No defaults upon senior securities occurred during the reporting period[155](index=155&type=chunk) [Item 4. Mine Safety Disclosures](index=29&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section states that mine safety disclosures are not applicable to the company - Mine safety disclosures are not applicable to NextNav Inc[156](index=156&type=chunk) [Item 5. Other Information](index=29&type=section&id=Item%205.%20Other%20Information) This section indicates that there is no other information to report - No other information is reported in this section[157](index=157&type=chunk) [Item 6. Exhibits](index=30&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Quarterly Report on Form 10-Q, including organizational documents, certifications, and XBRL data - The exhibits include the Amended and Restated Certificate of Incorporation, Bylaws, CEO and CFO certifications (pursuant to Exchange Act Rule 13a-14(a) and 18 U.S.C. Section 1350), and Inline XBRL documents[160](index=160&type=chunk) Signatures [Report Signatures](index=31&type=section&id=Report%20Signatures) This section contains the official signatures certifying the accuracy and completeness of the Quarterly Report on Form 10-Q - The report is signed by Christian D. Gates, Chief Financial Officer and Principal Financial Officer, and Sammaad R. Shams, Corporate Accounting Officer and Principal Accounting Officer, on August 10, 2022[166](index=166&type=chunk)

Financial Data and Key Metrics Changes - The company reported revenue of $1.4 million for Q2 2022, with an operating loss of $17 million, which includes $884,000 in depreciation and amortization and $6.8 million in stock-based compensation expense [59] - For the first six months of 2022, revenue totaled $2.6 million, with an operating loss of $33.1 million, including $1.8 million in depreciation and amortization and $14 million in stock-based compensation expense [60] - The operating cash usage for Q2 was $10.6 million, a 15% increase compared to Q1, primarily due to incremental hiring [61] Business Line Data and Key Metrics Changes - The company continues to see solid platform and partner adoption, particularly in public safety and government sectors, with significant year-over-year revenue growth [16][18] - New partnerships were signed in various verticals, including public safety, gaming, and construction, enhancing the company's service offerings [36][44] Market Data and Key Metrics Changes - The company is making strides in international markets, particularly in Japan, with a commercial agreement for the deployment of 3D geolocation services [48] - Active discussions are ongoing with US and European governments regarding solutions to address GPS vulnerabilities, indicating a growing interest in the company's TerraPoiNT services [20][34] Company Strategy and Development Direction - The company is focused on leveraging its spectrum assets and technology to drive growth in its 3D geolocation business and expand its next-generation GPS platform [3][14] - There is a strategic emphasis on prudent cost management while ramping up headcount selectively in promising market segments [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the government's increasing interest in PNT resilience, which is expected to lead to additional funding and opportunities [21][29] - The company is exploring options to accelerate its TerraPoiNT strategy in response to the rapid governmental interest and potential funding opportunities [92][96] Other Important Information - The company was added to the Russell 2000 Index in June 2022, which is expected to enhance visibility with the investment community [22] - The company is actively seeking to diversify its board and has appointed Neil Subin to the Board of Directors [11][15] Q&A Session Summary Question: Why were specific financial numbers not included in the press release? - The company will file its Q after the earnings call, along with a registration statement [68] Question: Update on E911 with carrier partners? - The company is on track to launch devices providing Z-axis capability for 911 services later this year and is engaged with multiple carriers [70][71] Question: Any updates on the Sitelus partnership for rural areas? - The company clarified that it is not a formal partnership but is exploring ways to interleave signals with other technologies [77] Question: Cash burn and revenue expectations for the second half of the year? - The company expects cash burn to remain consistent, with some capital expenditures for market expansion, but is not providing specific revenue guidance [82] Question: Will government grants support the build-out? - The company anticipates government grants for resilient infrastructure, with expectations for directives in the next nine months [86] Question: How does the government focus on PNT resilience affect strategy? - The company is exploring options to align its business strategies with the accelerated government interest in PNT resilience [92][96] Question: Is Unity a client and what are the implications? - Unity is a partner, and the company sees significant interest in gaming applications leveraging its technology [103]