NextNav Inc.

Good afternoon, everyone, and welcome to the NextNav's third quarter 2021 earnings conference call. Participating on today's call are Gary Parsons, NextNav chairman, Ganesh Patubaraman, NextNav co-founder and CEO, and Chris Gates, NextNav chief financial officer. Before we begin, please note that during today's presentation, the company may make forward-looking statements either in our prepared remarks or in the associated question and answer session. These statements, which involve risks and uncertainties, relate to analysis 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 statements about NextNav's position to drive growth in its 3D geolocation business and expansion of its next-generation GPS platform, the business plans, objectives, expectations and intentions of NextNav, NextNav's partnerships and the potential success thereof, and NextNav's estimated and future business strategies, competitive position, industry environment and potential growth opportunities. These statements are based on current expectations or beliefs and are subject to certain risks and uncertainties that may cause actual results to differ materially. 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, the ability of NextNav to continue to meet NASDAQ's listing standards following the consummation of the business combination, the risk that the consummation of the business combination disrupts current plans and operations of NextNav, the ability to recognise the anticipated benefits of the business combination, which may be affected by, among other things, competition, the ability of NextNav to grow and manage growth profitably, maintain relationships with partners, customers and suppliers, retain its management and key employees, the ability to generate and effectively deploy capital in line with its business strategies, the possibility that NextNav may be adversely affected by other economic businesses and or competitive factors, including the impacts of the ongoing COVID-19 coronavirus pandemic. The outcome of any legal proceedings that may be instituted against NextNav following the business combination and other risks and uncertainties indicated from time to time in other documents filed with the SEC by NextNav. New risks and uncertainties arise from time to time, and it's impossible for us to predict these events or how they may affect us. You're cautioned not to place undue reliance upon any forward-looking statements which speak only as of the date made, and NextNav undertakes no commitment to update or revise the forward-looking statements, whether as a result of new information, future events, or otherwise. Risk factors that may impact our performance are identified in our most recent SEC filings. Following our prepared remarks, the company will host an operator-led question and answer session. If you'd like to ask a question during this time, simply press star, then the number one on your telephone keypad. If you wish to withdraw your question, please press star, then the number two. In addition, at the conclusion of today's call, a replay of our discussion will be posted to the company's investor relations website. With that, I'll turn the call over to NextNav chairman, Gary Parsons. Please go ahead.

Well, thank you, Lydia. And welcome, everyone, to NextNav's third quarter earnings conference call. I'm sure you can imagine the entire team is thrilled with this important next chapter of growth for our business following our debut on the NASDAQ two weeks ago. It was an exceptional milestone for our business, and we're excited to welcome our new investors and, quite frankly, to welcome as well both the challenges and opportunities of operating as a publicly traded company. I'd like to personally thank all NextNet employees who worked tirelessly to achieve this significant milestone. I'd also like to express my appreciation to our long-term shareholders. We're thankful for your belief in the NextNet business and your support of our ongoing growth. The team and I look forward to speaking and meeting with many of you in the coming weeks. To kick off the call, I'd like to provide a summary of the recently completed transaction with Spartacus and a quick overview of NextNet's business strategy and positioning. I will then hand things over to NextNav CEO, Ganesh Pataparaman, to provide not only our business and technology updates, but also our ongoing performance and expectations with new customers, platform adoption and integration, and international activity. Chris Gates, NextNav CFO, will wrap things up with our third quarter financials. and as well provide additional details and timelines from the just completed Spartacus transaction. And of course we'll leave plenty of time at the end of the call for your questions. And as many of you know, MEXNEV recently closed the business combination with Spartacus Acquisition Corp and began trading on NASDAQ under the ticker symbol NN on October 29th. Reaching this milestone represents the culmination of a decade plus of innovation and a focus on creating industry-leading 3D geolocation technologies that are more accurate, resilient, available, and frankly, unlike anything in the market today. To us, one important aspect of this transaction was attracting and partnering with a solid base of long-term shareholders who share in our vision, which we achieved in our transaction with Spartacus, our fully committed pipe with leading investors, and our existing long-term shareholders. This is a strong validation point for our technology, business plan, leadership team, and we will continue to build on that going forward. As you probably know from prior presentations, our Pinnacle vertical location service is commercially available in over 4,400 markets around the country. And the transaction funding enables us to drive products and feature enhancements to Pinnacle, and most importantly, to accelerate the widespread adoption of the service. Ganesh will get into more specifics on these pinnacle developments, as well as provide a bit more specifics on our TerraPoint's groundbreaking position, navigation, and timing capabilities deployment in a moment. Specifically, regarding use of TerraPoint as a backup GPS and timing source, we continue to work closely with congressional supporters and government agencies to develop this opportunity. And I have to say, particularly in today's day and age, no one can reasonably forecast future agency or congressional action, but frankly, we're pleased with the current progress that we see in the current Department of Transportation budget, where we expect continued follow-up initiated by last year's testing of GPS backup technologies, as well as in the Defense Authorization Act, which is focused on military applications for resilient PNT capabilities. We look forward to continuing to report on this throughout 2022, on this heightened interest and motivation to secure critical infrastructure and national security against GPS vulnerabilities. Now, I know that we've previously spoken to many of you on the phone today regarding our business, so we'll try to focus our comments primarily on recent developments. But for those of you who may be new to the story, there are certain key market dynamics that are critical to understand. Never before has there been this type of hyper-accurate ubiquitous, resilient, three-dimensional positioning, navigation, and timing networks. There are multiple possibilities for disruptive use cases. And like other networks in the past, it's the network itself that drives the use cases, not the opposite. Because of this universal demand for these capabilities, we believe there's $100 billion global total addressable market opportunity, with 50 billion in the United States alone. We included only a small fraction of the US market, where NextNow's unique capabilities are most compelling. But these markets, as we noted in the past, are public safety and E911, as well as commercial apps requiring three-dimensional location data, particularly in the urban areas and indoors. Autonomous vehicles, air taxis and drones that require resilient location services and, of course, vertical as well. And critical infrastructure like cellular networks, power grid and financial services all of which require backup timing solutions and protection against single point failures and of course i i know that many of you closely follow spectrum assets and valuations next now is contiguous eight megahertz the valuable 900 megahertz low band spectrum covers over 2.4 billion megahertz pops that makes clear we're have a once in a generation opportunity to bring gps into the 21st century on the back of this solid spectrum asset, as well as the robust foundational IP, a deployed network, world-class partnerships, and frankly, a growing slate of location platform adoptions and network integrations. While Chris will provide more details, I also should note that the Spartacus transaction provided NextNav with gross proceeds of $231 million, which not only funds the acceleration of our market rollout, but also completely pays off the company's debt that was secured with these valuable spectrum licenses and network assets. This debt pay down obviously gives us increased flexibility in managing our overall spectrum portfolio going forward. So in summary, we're very pleased with the transaction we have now completed and with the new investors we have added. There's still much to be done to grow our business and add new customers and location platforms to our network, But this milestone represents a significant shift from our earlier stage of technology development to one of market growth and penetration. With that, let me turn it over to Ganesh.

Thank you, Gary. Good afternoon. And I'd like to welcome all of you to our inaugural earnings call as well. This is a very exciting time for us as a company and represents really a decade of focus and dedication by the team. And I want to thank our employees for their hard work and dedication and our partners and investors, both current and new investors, to help us getting to this point. I think today represents not only an exciting time for NexNav, but for the entire geolocation industry as a whole. Having established a solid foundation with our technology and platform, we're excited to be going to the next level of our business. As we've articulated in the past, our plans have not changed, and we're extremely excited to be scaling both the Pinnacle and TerraPoint services. Although many of our investors who have been with us for a while may be familiar with our technology and platform, I wanted to step back and provide some additional context for our services and go-to-market strategy, in particular for some of our newer investors. NextNav has spent years developing its innovative 3D geolocation technology, bringing precise floor-level altitude to existing location services and in-building resilient location and timing capabilities. This is primarily to enhance traditional GPS capabilities. Why is this important? Well, according to the National Institute of Standards and Technology, which is a government laboratory under the Department of Commerce, the impact of GPS on the U.S. economy is approaching about a trillion dollars annually. So it is a significant portion of the economy that's dependent on position, navigation, and timing services that GPS provides. And while GPS has fostered a massive growth in the vast array of markets, it also represents a single point of failure. And due to its space-based nature, GPS has inherent limitations that need to be addressed to keep the growth trajectory accelerating into new market applications. This is why we're committed to delivering a next-generation GPS solution. Not to replace GPS, but to complement it to meet new market demands. We know apps require dependable horizontal and vertical location data, particularly in urban areas and indoors. Additionally, autonomous vehicles, EVTOLs, and UAVs require resilient location services, while critical infrastructure such as cellular networks, the power grid, and financial services will need to address their single point of failure vulnerabilities with the backup timing solution. At NextNav, we offer a reliable, hyper-accurate 3D geolocation service in any environment, including indoors. And we do that with zero reliance on GPS satellites. All of our technology is encrypted to prevent spoofing and is supported by a powerful signal, literally 100,000 times more powerful than GPS. Importantly, as Gary mentioned, we believe there's over $100 billion total addressable market opportunity worldwide. It's a $50 billion opportunity in the United States alone, so a pretty sizable market. But this still represents a small fraction of the trillion dollars that we mentioned that's still misanalyzed, which is the overall impact of GPS to the economy. So this offers, next time, an enviable roadmap for growth with vast opportunities ahead. To meet this opportunity, we currently deliver differentiated P&T services, or position navigation and timing services, to our network-based Pinnacle and TerraPoint solutions. Our Pinnacle network solution provides floor-level altitude with the existing horizontal location systems. Pinnacle is fully deployed in over 4,400 cities across the US and covers about 90% of commercial properties that exceed three stories and above. Public safety, autonomous vehicles, eVTOL, as well as UAVs all require precise 3D location solutions. Our pinnacle solution is the most accurate vertical location solution in the marketplace. It is not tied to crowdsource techniques or uncalibrated weather sources, and our solution exceeds the FCC's vertical location requirements or Z-axis requirements in a blind test that was conducted by CTIA, or the Cellular Telephony Industry Association, a few years ago. Today, our pinnacle network is being used for public safety by FirstNet, built with AT&T, the first high-speed nationwide wireless broadband network dedicated to public safety. We're excited by several of the marketing initiatives that are starting to take effect in the public safety domain with AT&T FirstNet, expected to launch a modified application highlighting vertical location capabilities in the coming weeks. This is in addition to the applications that we previously announced by 3AM Innovations Intrepid Networks and TRX. Additionally, we recently announced a collaboration with Qualcomm to enable NextNav's Pinnacle 911 Z-Access software and network-based solution for use with Qualcomm Location Suite. This effort makes it easy for devices OEMs to integrate vertical location capabilities into the carrier's existing infrastructure for 911 purposes. With the upcoming FCC mandate in 2022, we expect more of these deals to be announced in the coming weeks and months. We also announced our Unreal plugin after receiving a mega grant from Epic Games for vertical location capabilities on the Unreal platform. We announced our plugin on Unity earlier this year, and Atlas Earth, which is built on the Unity platform, is incorporating our SDK into its virtual real estate game. We have several hundred interested leads in the space and look forward to bringing 3D geolocation capabilities into a wide variety of these applications and platforms. Our joint venture partner in METCOM, which is a Sony and Kyocera-backed entity, launched a pilot in Tokyo to trial Pinnacle's vertical location services with several tier one partners like SECOM in the security space, NTT for its enterprise space, and Dentsu in the advertising and marketing space. We expect to work jointly with MEDCOM to further enable Pinnacle capabilities in that market. MEDCOM has access to significant local facilities through its partnership with Sony and Kyocera to host both our Pinnacle and TerraPoint infrastructure and has secured initial access to five megahertz of low band sub gigahertz spectrum from the Japanese government for TerraPoint operations, which are currently under trial in Kyoto. We continue to receive interest from multiple parties, both in Europe and the Middle East, about bringing our services to those geographic areas and plan to report on additional progress on that front in 2022. With regard to the TerraPoint service, which is truly a terrestrially based next generation GPS network. It will expand from today's limited geographic availability to a nationwide footprint. Unlike GPS, the TerraPoint signal can be reliably received indoors and in urban areas and is difficult to jam and spoof. Further, the TerraPoint signal embeds pinnacle information to provide a full 3D solution. Terrapoint provides redundancy for GPS, which is essential due to the economy's reliance on GPS for precise location and timing capabilities. Critical infrastructure, including communication networks and power grids, all rely on GPS for accurate timing and location capabilities. Terrapoint is the only service that has shown the ability to provide equal services to GPS of position navigation and timing, or PNT, and was ranked as the highest performing technology in the recent DOT trials conducted last year. Other location services such as those reliant on Wi-Fi are just not as precise or reliable, and some are not even capable of providing timing. In addition to the top ranking received in the DOT trial, we demonstrated timing precision and resilience of our TerraPoint system in a recent evaluation by the science and technology directorate of the department of homeland security this industry first trial tested the timing redundancy of the terra point system in a number of scenarios including instances of gps outage spoofing and jamming along with these activities we're pleased with the continued congressional activity in supporting resilient pnt capabilities both at dod and dot and enabling this capability nationwide Therefore, we believe that when deployed broadly, our TerraPoint service will provide a resilient supplementary signal for urban navigation takeoff and landings for drones and other applications. It is, as you know, currently in use by NASA at their Langley Research Center, and we expect additional NASA facilities to leverage this capability. The TerraPoint network is initially deployed metro-wide in the San Francisco Bay Area, and initial capabilities available in 50 markets nationwide. In the near term, we remain focused on optimizing our transmitters, firmware, software, and user spectrum to support subsequent commercial deployment in the 2023-2025 time frame. From an international perspective, our approach will remain capitalized, focusing on revenue share of business with partnerships like MedCom and Sony Kyocera. As Gary mentioned, we are the sole licensee of eight megahertz of contiguous low band spectrum, covering approximately 90% of US population. This band sits in the middle of the LTE bands owned by companies such as Antrix, allowing it to be integrated into mobile handsets easily. We have also filed over 100 patents relating to our systems and services. And for those of you that have followed us for a while, we're actually now up to about 123 issued patents. of critical importance as well as is that we have a standardized technology in TerraPoint. This is recognized in 3GPP, which is the Global Telecommunications Standard Setting Body. This combination of assets has resulted in TerraPoint being the only service that has shown the ability to provide equal services to GPS and was ranked to be the highest performing technology in the DOT trials. Looking ahead, we expect next map to become really the global standard for resilient location and timing services. More importantly, our business model in all these cases is very simple. We sell access to our network. How we sell access is optimized for the end user application that leverages it. So it could be made available on a flat monthly fee per transaction fee or revenue share or whatever is the best suited for that application. As a result, we have an exciting business with an expansive competitive advantage. We are thrilled to have the opportunity to build out our offering and bring next generation GPS technology to the masses. With that, let me turn it over to Chris to review our financials.