NextNav(NN)2025-03-12 21:19Financial Performance - Revenue increased by $1.8 million, or 46.8%, to $5.7 million for the year ended December 31, 2024, compared to $3.9 million for the year ended December 31, 2023[223]. - The net loss for the year ended December 31, 2024, was $101.9 million, compared to a net loss of $71.7 million for the year ended December 31, 2023[221]. - Net losses for 2024 were $101.9 million, compared to $71.7 million in 2023, reflecting ongoing financial challenges[231]. - Cash and cash equivalents and marketable securities totaled $80.1 million as of December 31, 2024, with an accumulated deficit of $862.1 million[231]. - Net cash used in operating activities was $38.0 million in 2024, up from $35.4 million in 2023, driven by increased net losses and non-cash charges[236][237]. - Net cash provided by financing activities was $35.1 million in 2024, down from $69.0 million in 2023, reflecting changes in capital raising activities[240]. Expenses - Cost of Goods Sold (COGS) decreased by $2.0 million, or 15.4%, to $10.8 million for the year ended December 31, 2024, from $12.7 million for the year ended December 31, 2023[224]. - Research and development expenses decreased by $3.3 million, or 16.7%, to $16.2 million for the year ended December 31, 2024, from $19.5 million for the year ended December 31, 2023[226]. - Selling, general and administrative expenses increased to $33.5 million for the year ended December 31, 2024, compared to $30.3 million for the year ended December 31, 2023[221]. - Selling, general and administrative expenses increased by $3.2 million, or 10.5%, to $33.5 million in 2024 from $30.3 million in 2023[227]. - Depreciation and amortization expenses rose by $0.4 million, or 8.6%, to $5.2 million in 2024 from $4.8 million in 2023, primarily due to new network assets placed in service[228]. - Interest expense, net of interest income, increased by $5.7 million, or 156.6%, to $9.4 million in 2024 from $3.7 million in 2023, attributed to senior secured notes issued in 2023[229]. - Other expenses surged by $27.9 million, or 645.4%, to $32.2 million in 2024 compared to $4.3 million in 2023, mainly due to changes in the fair value of warrants[230]. Assets and Liabilities - Accounts receivable as of December 31, 2024, was $3.3 million, up from $2.3 million as of December 31, 2023[223]. - The company reported long-term debt of $54.6 million with a fixed interest rate of 10% per annum[258]. - As of December 31, 2024, the company had cash and cash equivalents and short-term marketable securities totaling $80.1 million[257]. Market Position and Strategy - The company has been granted more than 145 patents related to its systems and services, enhancing its competitive position in the market[208]. - The company signed an agreement to acquire an additional 4 MHz of M-LMS licenses, subject to regulatory approvals, to expand its spectrum assets[208]. - The Pinnacle solution covers over 90% of commercial structures over three stories in the U.S., primarily used for public safety applications[211]. - TerraPoiNT received the highest scores in testing by the Department of Transportation regarding potential PNT backup solutions[212]. Future Outlook - The company expects to incur additional losses and higher operating expenses in the foreseeable future as it invests in research and development and expands its PNT networks[231]. - The company will maintain its status as an emerging growth company until at least December 31, 2025, unless certain revenue or debt thresholds are met[256]. Risk Management - The company believes that inflation and supply chain challenges have not significantly impacted its revenue and cost of services to date[260]. - The company has minimal credit risk associated with cash and cash equivalents, as it deposits funds with financially sound institutions[259]. - A hypothetical 10% change in interest rates would not materially impact the company's consolidated financial statements[257]. - The company invests excess cash in U.S. government and agency bonds, and money market funds to minimize banking risk[259]. - The company’s exposure to market risk primarily relates to cash and investments in marketable securities[257]. - The company has not experienced significant fluctuations in the fair value of its investments due to the short-term nature of these instruments[257].