AST SpaceMobile(ASTS) - 2025 Q4 - Annual Results

Financial Commitments - The company has agreed to pay Ligado Networks LLC a total of $550.0 million in cash as part of the Ligado Transaction, with $420.0 million due by October 31, 2025[5]. - The first payment of $420.0 million has already been made to Ligado for the benefit of Inmarsat[5]. - The company has entered into a loan agreement with UBS AG for a cash collateralized term loan facility of $420.0 million to finance the initial payment to Ligado[6]. Satellite Launch Plans - The average capital costs for a constellation of over 90 Block 2 BB satellites are estimated to be approximately $21.0 million to $23.0 million per satellite[2]. - The company plans to launch approximately 45 to 60 Block 2 BB satellites by the end of 2026, starting with the launch of BB6 on December 23, 2025[2]. Regulatory and Compliance Challenges - The Ligado Transaction is subject to regulatory approvals and ongoing litigation, which may impact its consummation[9]. - The company requires regulatory approvals to access necessary spectrum for providing SCS service, which may involve waivers and commercial agreements with mobile network operators (MNOs) like AT&T and Verizon[28]. - The process of obtaining governmental approvals is time-consuming and may be challenged by adverse parties, potentially delaying revenue generation[29]. - Government approvals for operating the SpaceMobile Service need periodic renewal, and there is no guarantee of renewal or compliance with applicable rules[30]. - Regulatory changes could significantly impact the company's business operations and compliance efforts[32]. Competition and Operational Risks - The company faces significant competition from existing and potential competitors in the telecommunications industry, including SpaceX's Starlink and other established service providers[16][17]. - The company may not be able to successfully launch or operate its satellites, which could adversely affect the SpaceMobile Service[20][21]. - The development of the SpaceMobile Service may face delays and cost overruns due to various factors, including technological challenges and regulatory issues[22][23]. Strategic Transactions and Market Impact - The company regularly evaluates strategic transactions, but there is no assurance that it will successfully consummate any such transactions or achieve expected results[12][13]. - The multi-class share structure may lead to a lower or more volatile market price for Class A Common Stock and could affect inclusion in major indices[33]. - Exclusion from indices could result in a less active trading market for Class A Common Stock, adversely affecting its market price[34].