AST SpaceMobile(US:ASTS)2023-03-30 16:00Financial Performance - Total revenues increased by $1.4 million, or 11%, to $13.8 million for the year ended December 31, 2022, compared to $12.4 million in 2021[263]. - Total cost of sales decreased by $0.8 million, or 11%, to $6.7 million for the year ended December 31, 2022, compared to $7.6 million in 2021[264]. - Engineering services costs increased by $24.6 million, or 83%, to $54.2 million for the year ended December 31, 2022, compared to $29.6 million in 2021[265]. - General and administrative costs increased by $12.7 million, or 36%, to $48.3 million for the year ended December 31, 2022, compared to $35.6 million in 2021[266]. - Research and development costs increased by $22.2 million, or 95%, to $45.6 million for the year ended December 31, 2022, compared to $23.4 million in 2021[267]. - Total depreciation and amortization expense increased by $1.8 million, or 62%, to $4.7 million for the year ended December 31, 2022, compared to $2.9 million in 2021[268]. - Gain on remeasurement of warrant liabilities was $19.1 million for the year ended December 31, 2022, compared to $15.8 million in 2021[268]. - Total other income (expense), net was $24.2 million for the year ended December 31, 2022, compared to $(2.0) million in 2021[268]. - Net loss attributable to common stockholders was $(31.6) million for the year ended December 31, 2022, compared to $(30.6) million in 2021, representing a 4% increase[261]. Cash Flow and Financing - As of December 31, 2022, the company had $239.3 million in cash and cash equivalents, which includes $0.7 million of restricted cash[272]. - Cash used in operating activities increased to $156.5 million for the year ended December 31, 2022, from $80.1 million in 2021, primarily due to higher operating expenses[288]. - Cash used in investing activities decreased to $31.4 million in 2022 from $54.8 million in 2021, mainly due to proceeds from the Nano Share Sale[289]. - Cash provided by financing activities was $102.3 million in 2022, down from $416.9 million in 2021, reflecting proceeds from equity offerings[290]. - A public offering on December 2, 2022, raised $68.6 million, net of underwriting commissions and transaction costs[280]. - The company expects to issue a $10.0 million promissory note to Rakuten if KPIs are not met by June 2023[285]. - The company had cash, cash equivalents, and restricted cash of $239.3 million as of December 31, 2022, down from $324.5 million in 2021[293]. - The company plans to finance cash needs through a combination of equity offerings and debt financings, which may dilute existing stockholder interests[295]. Operational Developments - The company has incurred approximately $92.1 million and $92.3 million in capitalized costs related to the assembly, testing, and deployment of the BlueWalker 3 test satellite as of December 31, 2022, and March 31, 2023, respectively[232]. - The company plans to launch five Block 1 BB satellites in the first quarter of 2024, with a Launch Services Agreement already in place with SpaceX[234]. - The company aims to achieve substantial service in targeted geographical areas with the launch and operation of 25 BB satellites and approximately 95 BB satellites for long-term business goals[238]. - The company is expanding its research and development efforts, including a new center in India to support global engineering operations[240]. - The company is developing the next generation of BB satellites, Block 2 BB satellites, which will feature the AST5000 ASIC chip for improved performance[236]. - The company is industrializing its assembly, integration, and testing processes for the production of BB satellites and hiring necessary personnel[241]. - The company is prioritizing coverage in commercially attractive MNO markets to minimize capital required for initiating and operating commercial service[237]. - The company is closely monitoring the impact of macroeconomic conditions, including inflation and supply chain challenges, on its operations and financial condition[245]. Asset and Impairment Assessment - The company assesses goodwill for impairment at least annually, with a qualitative assessment followed by a quantitative test if necessary[300]. - A quantitative impairment test compares the fair value of a reporting unit to its carrying amount, recognizing an impairment loss if the carrying amount exceeds fair value[300]. - Long-lived asset impairment is assessed when events indicate that the carrying value may not be recoverable, considering factors like significant underperformance and negative industry trends[301]. - As of December 31, 2022, the company had no off-balance sheet arrangements[302]. - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[302]. Contractual Commitments - Contractual commitments with third parties totaled $49.5 million as of December 31, 2022, related to R&D programs and satellite components[276].