Filed Rulemaking Petition with
Lays Out New Vision for Complement and Backup to GPS with Additional Spectrum for Broadband Services
Mariam Sorond,
Our petition is a significant first step in efforts to deliver an innovative spectrum solution in the Lower 900 MHz band. As we move forward, we look forward to working closely with the
Recent Operational Highlights
- NextNav Files
FCC Petition for Rulemaking:NextNav filed a rulemaking petition asking theFederal Communications Commission onApril 16, 2024 , to deliver an innovative spectrum solution in the Lower 900 MHz band, proposing rearranging the band to facilitate a terrestrial 3D PNT network and broadband. - NextNav Receives Court Approval: On
March 28, 2024 , theSuperior Court of the State of California , County ofAlameda issued an Order approving the sale of licenses covering an additional 4 MHz in the Lower 900 MHz band. Court approval providedNextNav with the greenlight to move forward with obtainingFCC approval.
Three Months Ended
- Revenue: was
$1.0 million in the three months endedMarch 31, 2024 , as compared to$830,000 in the prior year period. The increase was primarily attributable to increased recurring service revenue in the current period from technology and services contracts with commercial customers. - Operating Loss: was
$16.2 million in the three months endedMarch 31, 2024 , as compared to an operating loss of$14.0 million in the prior year period, primarily driven by increases in stock-based compensation expense and payroll-related expenses. - Net Loss: was
$31.6 million in the three months endedMarch 31, 2024 , including a loss on the fair value of warrants of$13.2 million , as compared to a net loss of$16.3 million in the prior year period, including a loss on the fair value of the warrants of$2.8 million . - Balance Sheet: as of
March 31, 2024 , the Company had$73.3 million in cash and cash equivalents,$5.9 million in short term investments and has$49.9 million in debt net of unamortized discount attributed to transaction costs and the issuance of warrants, with a gross value of$70.0 million .
Conference Call Information
Registration for the conference call can be completed by visiting the following website prior to, or on the day of, the conference call: https://registrations.events/direct/Q4I629362. After registering, each participant will be provided with call details and a registrant ID. Reminders will also be sent to registered participants via email. Alternatively, the conference call will be available via a live webcast.
To access the live webcast or a replay, visit the Company’s investor relations website at https://ir.nextnav.com/.
A replay of the call can also be accessed via phone through
About
For more information, please visit https://nextnav.com/ or follow
Source: NN-FIN
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “ “may,” “anticipate,” “believe,” “expect,” “intend,” “might,” “plan,” “possible,” “potential,” “aim,” “strive,” “predict,” “project,” “should,” “could,” “would,” “will” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These statements, which involve risks and uncertainties, relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable and may also relate to NextNav’s future prospects, developments and business strategies. In particular, such forward-looking statements include the approval by the
Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside NextNav’s control that could cause actual results to differ materially from the results discussed in the forward-looking statements. These risks, uncertainties, assumptions and other important factors include, but are not limited to: (1) the risk that the requisite regulatory approvals are not obtained; (2) the ability to recognize the anticipated financial and other benefits of the transactions, which may be affected by, among other things, competition, the ability of
Contact:
ebartsch@sloanepr.com
212-446-1875
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (IN THOUSANDS, EXCEPT SHARE DATA) | ||||||||
March 31, 2024 | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 73,317 | $ | 81,878 | ||||
Short term investments | 5,922 | 3,954 | ||||||
Accounts receivable | 1,496 | 2,332 | ||||||
Other current assets | 16,053 | 3,056 | ||||||
Total current assets | $ | 96,788 | $ | 91,220 | ||||
Network under construction | 1,693 | 1,676 | ||||||
Property and equipment, net of accumulated depreciation of | 18,890 | 19,885 | ||||||
Operating lease right-of-use assets | 18,744 | 19,267 | ||||||
17,581 | 17,977 | |||||||
Intangible assets | 10,362 | 10,625 | ||||||
Other assets | 1,572 | 1,508 | ||||||
Total assets | $ | 165,630 | $ | 162,158 | ||||
Liabilities and stockholders’ equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,269 | $ | 391 | ||||
Accrued expenses and other current liabilities | 20,161 | 6,592 | ||||||
Operating lease current liabilities | 2,423 | 2,523 | ||||||
Deferred revenue | 287 | 297 | ||||||
Total current liabilities | $ | 24,140 | $ | 9,803 | ||||
Warrants | 17,761 | 7,053 | ||||||
Operating lease noncurrent liabilities | 14,974 | 15,145 | ||||||
Other long-term liabilities | 1,596 | 1,614 | ||||||
Long term debt, net of debt issuance cost and discount | 49,890 | 48,447 | ||||||
Total liabilities | $ | 108,361 | $ | 82,062 | ||||
Stockholders’ equity: | ||||||||
Common stock, authorized 500,000,000 shares; 112,712,136 and 111,261,434 shares issued and 112,582,924 and 111,132,222 shares outstanding at | 12 | 12 | ||||||
Additional paid-in capital | 846,721 | 837,416 | ||||||
Accumulated other comprehensive income | 1,676 | 2,198 | ||||||
Accumulated deficit | (791,837 | ) | (760,227 | ) | ||||
Common stock in treasury, at cost; 129,212 shares at | (665 | ) | (665 | ) | ||||
Total stockholders’ equity | $ | 55,907 | $ | 78,734 | ||||
Non-controlling interests | 1,362 | 1,362 | ||||||
Total liabilities and stockholders’ equity | $ | 165,630 | $ | 162,158 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||
Three Months Ended | ||||||||
2024 | 2023 | |||||||
Revenue | $ | 1,046 | $ | 830 | ||||
Operating expenses: | ||||||||
Cost of goods sold (exclusive of depreciation and amortization) | 2,761 | 3,023 | ||||||
Research and development | 4,670 | 4,578 | ||||||
Selling, general and administrative | 8,446 | 6,054 | ||||||
Depreciation and amortization | 1,319 | 1,125 | ||||||
Total operating expenses | $ | 17,196 | $ | 14,780 | ||||
Operating loss | $ | (16,150 | ) | $ | (13,950 | ) | ||
Other income (expense): | ||||||||
Interest income (expense) | (2,168 | ) | 469 | |||||
Change in fair value of warrants | (13,176 | ) | (2,800 | ) | ||||
Other loss, net | (72 | ) | (81 | ) | ||||
Loss before income taxes | $ | (31,566 | ) | $ | (16,362 | ) | ||
Benefit (Provision) for income taxes | (44 | ) | 13 | |||||
Net loss | $ | (31,610 | ) | $ | (16,349 | ) | ||
Foreign currency translation adjustment | (522 | ) | 432 | |||||
Comprehensive loss | $ | (32,132 | ) | $ | (15,917 | ) | ||
Net loss | (31,610 | ) | (16,349 | ) | ||||
Net loss attributable to common stockholders | $ | (31,610 | ) | $ | (16,349 | ) | ||
Weighted average of shares outstanding – basic and diluted | 111,061 | 106,405 | ||||||
Net loss attributable to common stockholders per share - basic and diluted | $ | (0.28 | ) | $ | (0.15 | ) |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (IN THOUSANDS) | ||||||||
Three Months Ended | ||||||||
2024 | 2023 | |||||||
Operating activities | ||||||||
Net loss | $ | (31,610 | ) | $ | (16,349 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 1,319 | 1,125 | ||||||
Equity-based compensation | 4,244 | 3,866 | ||||||
Change in fair value of warranty liability | 13,176 | 2,800 | ||||||
Realized and unrealized gain on short term investments | (50 | ) | 16 | |||||
Equity method investment loss | 40 | 55 | ||||||
Asset retirement obligation accretion | 16 | 15 | ||||||
Amortization of debt discount | 1,442 | — | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 836 | 979 | ||||||
Other current assets | (434 | ) | (46 | ) | ||||
Other assets | (107 | ) | 27 | |||||
Accounts payable | 878 | (364 | ) | |||||
Deferred revenue | (10 | ) | (34 | ) | ||||
Accrued expenses and other liabilities | 3,022 | 395 | ||||||
Operating lease right-of-use assets and liabilities | 253 | 88 | ||||||
Net cash used in operating activities | $ | (6,985 | ) | $ | (7,427 | ) | ||
Investing activities | ||||||||
Capitalization of costs and purchases of network assets, property, and equipment | (32 | ) | (856 | ) | ||||
Purchase of marketable securities | (5,918 | ) | — | |||||
Sale and maturity of marketable securities | 4,000 | 5,213 | ||||||
Purchase of internal use software | (163 | ) | (341 | ) | ||||
Net cash used in investing activities | $ | (2,113 | ) | $ | 4,016 | |||
Financing activities | ||||||||
Payments towards debt | (28 | ) | (27 | ) | ||||
Proceeds from exercise of stock options | 544 | 26 | ||||||
Net cash provided by financing activities | $ | 516 | $ | (1 | ) | |||
Effect of exchange rates on cash and cash equivalents | 21 | (5 | ) | |||||
Net decrease in cash and cash equivalents | (8,561 | ) | (3,417 | ) | ||||
Cash and cash equivalents at beginning of period | 81,878 | 47,230 | ||||||
Cash and cash equivalents at end of period | $ | 73,317 | $ | 43,813 | ||||
Non-cash financing information | ||||||||
Capital expenditure included in accounts payable | $ | 278 | $ | 591 |
Source:
2024 GlobeNewswire, Inc., source