NextNav(NN) - 2024 Q3 - Quarterly Report

Revenue Performance - Revenue increased by $0.6 million, or 56.5$1.6 million for the three months ended September 30, 2024, compared to $1.0 million for the same period in 2023[120]. - Revenue for the nine months ended September 30, 2024, was$3.8 million, an increase of $1.1 million or 41.4$2.7 million for the same period in 2023[127]. Customer Concentration - For the three months ended September 30, 2024, one customer accounted for 54% of total revenue, while another accounted for 32%[120]. Patent and Network Coverage - The company held approximately 161 patents related to its systems and services as of September 30, 2024[102]. - The Pinnacle network covers over 90% of commercial structures over three stories in the U.S.[104]. - TerraPoiNT is deployed and available with metro-wide service in the San Francisco Bay Area and select services in over 90 markets nationally as of September 2024[107]. Operating Expenses - Total operating expenses for the three months ended September 30, 2024, were $15,647 thousand, compared to$15,459 thousand for the same period in 2023[117]. - Selling, general and administrative expenses increased by $1.9 million, or 30.3$8.0 million for the three months ended September 30, 2024, from $6.2 million for the same period in 2023[123]. - Selling, general and administrative expenses increased by$5.8 million, or 31.2%, to $24.6 million for the nine months ended September 30, 2024, from$18.7 million for the same period in 2023[132]. Research and Development - The company expects research and development costs to increase as it continues to invest in current and future products[110]. - Research and development expenses decreased by $1.5 million, or 29.2$3.5 million for the three months ended September 30, 2024, from $5.0 million for the same period in 2023[122]. - Research and development expenses for the nine months ended September 30, 2024, decreased by$2.3 million, or 15.5%, to $12.3 million from$14.6 million for the same period in 2023[129]. Losses and Financial Performance - Operating loss for the three months ended September 30, 2024, was $(14,620) thousand, compared to$(13,852) thousand for the same period in 2023[117]. - The company incurred net losses of $69.6 million and$55.3 million for the nine months ended September 30, 2024, and 2023, respectively[136]. - The net loss for the nine months ended September 30, 2024 was $69.6 million, compared to a net loss of$55.3 million for the same period in 2023, representing a 25.0% increase in losses[142][143]. Cash Flow and Investments - Net cash used in operating activities for the nine months ended September 30, 2024 was $26.1 million, compared to$24.6 million for the same period in 2023, reflecting an increase of 6.1%[142][143]. - Net cash used in investing activities during the nine months ended September 30, 2024 was $17.7 million, significantly higher than$1.5 million in the same period of 2023, indicating a substantial increase in investment activities[144][145]. - Cash used for asset purchase agreements in investing activities for the nine months ended September 30, 2024 was $2.7 million, indicating ongoing investment in growth initiatives[144]. - The company experienced a net increase in operating liabilities of$7.0 million during the nine months ended September 30, 2024, which helped offset some of the cash used in operating activities[142]. Financing Activities - Net cash provided by financing activities for the nine months ended September 30, 2024 was $29.7 million, a decrease of 57.0$69.0 million in the same period of 2023, primarily due to reduced cash proceeds from financing[146]. - Cash proceeds from the exercise of warrants and stock options contributed to the net cash provided by financing activities in 2024[146]. Other Financial Metrics - Interest expense, net increased by $0.5 million, or 27$2.2 million for the three months ended September 30, 2024, from $1.7 million for the same period in 2023[125]. - Other income was$2.5 million for the three months ended September 30, 2024, compared with other expense of $6.8 million for the same period in 2023, a change of$9.3 million[126]. - Non-cash charges for stock-based compensation during the nine months ended September 30, 2024 were $11.2 million, slightly lower than$12.6 million in the same period of 2023[142][143]. - The company reported a non-cash income of $2.2 million for the change in fair value of asset purchase agreement liability during the nine months ended September 30, 2024[142]. Market Risks - There were no material changes in market risks compared to those disclosed in the 2023 Form 10-K[148].