AST SpaceMobile, Inc.

Good day and thank you for standing by. Welcome to the AST SpaceMobile Fourth Quarter 2024 Business Update Call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your host today, Scott Wisniewski, President of AST SpaceMobile. Please go ahead.

Thank you and good afternoon, everyone. Today, I'm also joined by Chairman and CEO of Bell Labuan and our Chief Financial Officer, Andy Johnson. Let me refer you to slide two of the presentation, which contains our safe harbor disclaimer. During today's call, we may make certain forward-looking statements. These statements are based on current expectations and assumptions, and as a result, are subject to risks and uncertainties. Many factors could cause actual events to differ materially from the forward-looking statements on this call. For more information about these risks and uncertainties, please refer to the risk factors section of ASC SpaceMobile's annual report on Form 10-K for the year ended December 31st, 2024, with the Securities and Exchange Commission, and other documents filed by AST Space Mobile with the SEC from time to time. Also, after our initial remarks, we will be starting our Q&A section with questions submitted by our shareholders. For those of you who may be new to our company and mission, there are over 5 billion mobile phones in use today around the world, but many of us still experience gaps in coverage as we live, work, and travel. Additionally, there are billions of people without cellular broadband and who remain unconnected to the global economy. The markets we are pursuing are massive, and the problem we are solving is important and touches nearly all of us. In this backdrop, AFT Space Mobile is building the first and only global cellular broadband networking space to operate directly with everyday unmodified mobile devices and supported by our extensive IT and patent portfolio. We have made significant progress over the past year, and I am excited to pass the call to our chairman and CEO, Abel Avalon, who will discuss our achievements and our vision going into 2025.

Thank you, Scott. The past several months have been transformational for AAC SpaceMobile, and we continue to accelerate manufacturing, expand our partner ecosystem, and demonstrate unique and differentiated space-based aeropropane capabilities. 2024 was the year we validated AAC SpaceMobile's position as a technology leader and inventor in this new industry. And in 2025, we will leverage this position alongside our expansive IP portfolio of more than 3,500 patents and patent penetrators to further enable true space-based connectivity to the device in your pocket today. Simply put, we enter 2025 with the talent and partners, technology, and intellectual property access to space and the spectrum, and the funding to move at an accelerated pace in this fast-developing market. Key pieces of our business are now in place. Our technology has capacity to deliver voice, data, video calls, and other native cellular robot capabilities, making us a truly differentiated offering for us and our network partners. We're now moving forward to integrate with our partner network. which will enable initial service with our mobile network operator partners, AT&T and Verizon in the United States, Vodafone in the United Kingdom and Turkey, and Rakuten in Japan. Our mobile network operator partners include some of the largest telecom operators in the world, and the number of partnerships continues to grow. We now have agreements with approximately 50 mobile network operators globally, which have nearly 3 billion existing subscribers around the world. This year is about building our constellation to reach commercial service. As a reminder, our technology has been designed from the beginning to support broadband, not just text messaging or emergency SOS. As noted recently by our partners, AT&T, Verizon, and Vodafone, who each completed video calls over our in-orbit network. We have the capability for voice and data services at broadband speed to modify it the smartphones. Since our last business update call with Investor, we achieved several major milestones. First, we solidified our balance sheet with a significant financing with an attractive structure. And with that, we are accelerating our manufacturing, which I will speak to you shortly. Second, we signed an agreement that, once completed, will provide us with the largest block of high-value, lower mid-balance spectrum, are making the spectrum on and operated by our partners. Third, we accelerate the satellite manufacturing effort with planning and production of 40 Block II globe earth satellites underway, alongside with additional components and materials needed for over 50. Fourth, we continue to expand our commercial ecosystem, both with MNOs, with the Border Fund Agreement, and with the government contracts. In fact, just this past week, we announced a new $43 million contract award in support of the United States Space Development Agency, or FDA. Our recent contract is just for the beginning of what we expect to achieve with the U.S. orbit. And last, we continue to solidify the regulatory framework for our services with the FCC. Let me briefly elaborate on each of these achievements. We completed $450 million convertible senior node offering. resulting in nearly $1 billion in cash on our balance sheet. Alongside with this capital raise, we secure cap call transactions, which increase the effective conversion price of the note to approximately $45 per share. With a 4.25% coupon, we significantly reduce our cost of capital for the company. And with the cap and cap call, we minimize the effect of dilution to existing shareholders to approximately 3%. and the effective conversion price. Importantly, as part of this transaction, AT&T, Google, Verizon, and Vodafone converted their existing nodes and became Class A common shareholders. We welcome our loyal partners as shareholders, and we appreciate their ongoing support. The financing of our new balance sheet enabled us to immediately and aggressively accelerate our manufacturing plan. We have accelerated the procurement of components and materials needed for us to complete 40 fully integrated and assembly block 2 blue wire satellites. Additionally, we have accelerated procurement of components and materials needed for us to complete fully assembled microbes, which are the building block power satellite and phase array for over 50 satellites. As a reminder, the assembly stages is one of the last steps in the manufacturing process, and we procure long lead items first to ensure we remain on track for integration and assembly stages. As part of our accelerated manufacturing, we have increased our global footprint to approximately 194,000 square feet in Midland, Texas, 59,000 square feet in Barcelona, Spain, and soon 85,000 additional square feet in Homestead, Florida, respectively. We have completed this bring-up and initial validation of our novel ASIC chip, which will support up to 10,000 megahertz, 10 gigahertz, in processing bandwidth per satellite, with peak data speed of up to 120 megabits per second. We expect to incorporate our ASIC into Block 2 Bluebird satellites later this year. We also exercise our contract option for more launches, and now we have fully contracted load capacity for approximately 60 satellites during 2025 and 2026, which get us to continue servicing U.S., Europe, and Japan, and some selected markets outside United States. Next, we signed an agreement which would provide long-term access to up to 45 megahertz of lower-mid-band space in United States for directly-by-sandwich application. This agreement, when consummated, will augment our capabilities, pairing existing plans for the continental United States on premium 3GPP low-value spectrum in the 850 megahertz band, which offers superior penetration and coverage characteristics. With access to up to 45 megahertz of lower mid-value spectrum, the largest available low- or high-quality nationwide spectrum in the United States. Spectrum is a scale resource, and our spectrum agreement matches an attractive spectrum position with the largest salary array for direct-to-device cellular broadband from Spain. The agreement for long-term access to this spectrum enhanced our strategy of working with MNO's partners. Our partners dedicate premium low-band spectrum to support our services. The spectrum we're accessing amplifies the existing capacity. Specifically, more spectrum means increased subscriber capacity and better service in the U.S. enable peak data transmission speed of up to 120 megabits per second for a true broadband experience directly from Spain to everyday smartphones. This position asks our mobile network operator partner for significant growth while reinforcing our place in the broader wireless ecosystem with a valuable strategic asset. And just recently, we received a special temporary authority FDA approval from the SEC to commence testing service with AT&T and Verizon in the United States. This approval enabled us to connect and test our Bluebird service with a modified smartphone without the need of any specialized software, device support, or updates. The SEC approvals underscore the shared goal between AT&T, Spence Mobile, and the Commission, and we anticipate additional SEC ruling soon, and we continue integrating our groundbreaking technology with our state partners. The first five commercial Rogue One Bluebird satellites launched in September 2024 are fully operational. As a reminder, our satellites are massive, each the largest ever commercially deployed communication array in low-Earth orbit, other than the International Space Station. For context, our upcoming Block 2 satellites are more than three times the size of Block 1 satellites, measuring approximately 2,400 square feet. As a result, we need a much smaller number of satellites compared to traditional operators in below-death orbits. The size of our satellites accelerate our path to commercial revenues, and the design of our satellites and network decreases any single point of failure, reducing our risk profile. I am very pleased to report the first five Bluebird satellites are all performing as expected. We have fully tested each satellite and put them into operations. It was exciting to watch Vodafone CEO Margarita Zervage complete a video call using our space-based technology. AT&T and Verizon completed video calls shortly after. This operational milestone demonstrates our unique capabilities that our satellites were designed for, not just text messaging. but full broadband capabilities and other native cellular capabilities to completely unmodified smartphones. On the government front, we recently secured an additional contract for 43 million of revenue with the space development agents through a prime contractor. Scott will provide support details momentarily. But this commercial award highlighted capabilities for dual-use technology for specialized government applications. Our government-contra pipeline continues to show strength, driven by new use cases for our unique technology, which are becoming clearer every day. With our successful initial launch and the progress of manufacturing and our commercial and government agreement, you can see that key pieces of operationalizing the ActivePay mobile network are now in place. I am incredibly proud of the tireless effort from our team and our partners, particularly over the past several months, to get us to this critical point. With each step, we move closer to achieving our mission of connecting the unconnected and look forward to bringing two more updates in the months ahead. I will now pass this call to provide more details on our commercial progress.