AST SpaceMobile, Inc. ("AST SpaceMobile") (NASDAQ:ASTS), the company building the first and only space-based cellular broadband network accessible directly by standard mobile phones, today is providing its business update for the third quarter ended September 30, 2022.

"The successful unfolding of BlueWalker 3 is a major step forward for our patented space-based cellular broadband technology and paves the way for the ongoing production of our BlueBird satellites," said Abel Avellan, Chairman and Chief Executive Officer of AST SpaceMobile. "In completing this deployment, as well as the other learnings from stowing, launching, operating, testing and flying the satellite over the last 2 months, we feel confident in our architecture and do not foresee any major changes to the architecture of our Block 1 satellites."

Business Update

Progress with our BlueWalker 3 test satellite

Completed the successful launch of the BlueWalker 3 ("BW3") test satellite from Cape Canaveral, FL
Acquired control of the BlueWalker 3 test satellite shortly after deployment and implemented Telemetry, Tracking and Control protocols for operations control of the satellite
Successfully unfolded the largest communications array ever deployed on a commercial Low Earth Orbit satellite
Completed validation of key aspects of our satellite architecture after two months of in-orbit operation

Industrialization of our SpaceMobile constellation

Plan to launch five Block 1 BlueBird satellites in late 2023
Continued to ramp up the assembly, testing and implementation processes at our Site 2 facility in Midland to build five Block 1 BlueBird satellites
Grew portfolio of patent and patent pending claims to more than 2,600 worldwide as of November 14, 2022 compared to the 2,400 discussed at our last earnings call

Third Quarter 2022 Financial Highlights

Ended the third quarter with cash, cash equivalents, and restricted cash of $199.5 million
Total operating expenses increased by $6.7 million to $42.1 million for the third quarter of 2022, as compared to $35.4 million in the second quarter of 2022, due to a $4.4 million increase in research and development costs and $2.5 million increase in engineering services offset by a $0.2 million decrease in general and administrative costs
As of September 30, 2022, the Company incurred $92.1 million of capitalized costs (including launch costs and non-recurring engineering costs) related to the assembly, testing and deployment of the BlueWalker 3 test satellite
As of September 30, 2022, the Company incurred approximately $43.5 million of capitalized property and equipment costs primarily related to the Texas facilities, satellite antennas, satellite parts assembly and test equipment, and leasehold improvements
Completed the sale of 51% interest in NanoAvionika UAB ("Nano") for net proceeds of $26.7 million
Issued shares of Class A common stock under the Common Stock Purchase Agreement and Equity Distribution Agreement for net proceeds of $17.0 million

Conference Call Information

AST SpaceMobile will hold a quarterly business update conference call at 5:00 p.m. (Eastern Time) today, November 14, 2022. The call will be accessible via a live webcast on the Events page of AST SpaceMobile's Investor Relations website at https://ast-science.com/investors/. An archive of the webcast will be available shortly after the call.

About AST SpaceMobile

AST SpaceMobile is building the first and only global cellular broadband network in space to operate directly with standard, unmodified mobile devices based on our extensive IP and patent portfolio. Our engineers and space scientists are on a mission to eliminate the connectivity gaps faced by today's five billion mobile subscribers and finally bring broadband to the billions who remain unconnected. For more information, follow AST SpaceMobile on YouTube, Twitter, LinkedIn and Facebook. Watch this video for an overview of the SpaceMobile mission.

Forward-Looking Statements

This communication contains "forward-looking statements" that are not historical facts, and involve risks and uncertainties that could cause actual results of AST SpaceMobile to differ materially from those expected and projected. These forward-looking statements can be identified by the use of forward-looking terminology, including the words "believes," "estimates," "anticipates," "expects," "intends," "plans," "may," "will," "would," "potential," "projects," "predicts," "continue," or "should," or, in each case, their negative or other variations or comparable terminology.

These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside AST SpaceMobile's control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (i) expectations regarding AST SpaceMobile's strategies and future financial performance, including AST's future business plans or objectives, expected functionality of the SpaceMobile Service, anticipated timing and level of deployment of satellites, anticipated demand and acceptance of mobile satellite services, prospective performance and commercial opportunities and competitors, the timing of obtaining regulatory approvals, ability to finance its research and development activities, commercial partnership acquisition and retention, products and services, pricing, marketing plans, operating expenses, market trends, revenues, liquidity, cash flows and uses of cash, capital expenditures, and AST's ability to invest in growth initiatives; (ii) the negotiation of definitive agreements with mobile network operators relating to the SpaceMobile service that would supersede preliminary agreements and memoranda of understanding; (iii) the ability of AST SpaceMobile to grow and manage growth profitably and retain its key employees and AST SpaceMobile's responses to actions of its competitors and its ability to effectively compete; (iv) changes in applicable laws or regulations; (v) the possibility that AST SpaceMobile may be adversely affected by other economic, business, and/or competitive factors; (vi) the outcome of any legal proceedings that may be instituted against AST SpaceMobile; and (vii) other risks and uncertainties indicated in the Company's filings with the SEC, including those in the Risk Factors section of AST SpaceMobile's Form 10-K filed with the SEC on March 31, 2022.

The planned testing of the BW3 test satellite may not be completed due to a variety of factors, which could include loss of satellite connectivity, destruction of the satellite, or other communication failures, and even if completed as planned, the BW3 testing may indicate adjustments that are needed or modifications that must be made, any of which could result in additional costs, which could be material, and delays in commercializing our service. If there are delays or issues with our testing, it may become more costly to raise capital, if we are able to do so at all.

AST SpaceMobile cautions that the foregoing list of factors is not exclusive. AST SpaceMobile cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk Factors incorporated by reference into AST SpaceMobile's Form 10-K filed with the SEC on March 31, 2022. AST SpaceMobile's securities filings can be accessed on the EDGAR section of the SEC's website at www.sec.gov. Except as expressly required by applicable securities law, AST SpaceMobile disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

AST SPACEMOBILE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(dollars in thousands, except share data)

	September 30, 2022			December 31, 2021

ASSETS
Current assets:
Cash and cash equivalents	$	198,869		$	321,787
Restricted cash ⁽¹⁾		660			2,750
Accounts receivable		-			2,173
Inventories		-			1,412
Prepaid expenses		5,650			2,831
Other current assets		20,127			4,850
Total current assets		225,306			335,803

Property and equipment:
BlueWalker 3 satellite - construction in progress		92,094			67,615
Property and equipment, net		43,543			28,327
Total property and equipment, net		135,637			95,942

Other non-current assets:
Operating lease right-of-use assets, net		7,901			7,991
Goodwill		-			3,641
Other non-current assets		17,424			559
Total other non-current assets		25,325			12,191

TOTAL ASSETS	$	386,268		$	443,936

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	9,546		$	6,638
Accrued expenses and other current liabilities		10,837			7,469
Deferred revenue		-			6,636
Current operating lease liabilities		803			634
Total current liabilities		21,186			21,377

Warrant liabilities		56,390			58,062
Non-current operating lease liabilities		7,195			7,525
Long-term debt		4,820			5,000
Total liabilities		89,591			91,964

Commitments and contingencies

Stockholders' Equity:
Class A Common Stock, $.0001 par value; 800,000,000 shares authorized; 54,369,296 and 51,730,904 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively.		5			5
Class B Common Stock, $.0001 par value; 200,000,000 shares authorized; 51,636,922 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively.		5			5
Class C Common Stock, $.0001 par value; 125,000,000 shares authorized; 78,163,078 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively.		8			8
Additional paid-in capital		185,435			171,155
Accumulated other comprehensive loss		(271	)		(433	)
Accumulated deficit		(93,872	)		(70,461	)
Noncontrolling interest		205,367			251,693
Total stockholders' equity		296,677			351,972

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	386,268		$	443,936

(1)

As of September 30, 2022, restricted cash of $0.7 million represents deposits against the bank guaranty issued to the landlord for lease of a property. As of December 31, 2021, restricted cash of $2.8 million represented deposits with a bank to exclusively use for capital improvements at the Company's facility in Texas, United States.

AST SPACEMOBILE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(dollars in thousands, except share and per share data)

	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2022			2021		2022			2021

Revenues	$	4,168		$	2,450	$	13,825		$	6,185

Cost of sales (exclusive of items shown separately below)		2,525			2,103		6,714			4,122

Gross profit		1,643			347		7,111			2,063

Operating expenses:
Engineering services		14,492			8,026		38,208			18,757
General and administrative costs		12,916			9,331		37,634			24,031
Research and development costs		13,543			4,888		30,969			15,491
Depreciation and amortization		1,172			867		3,457			2,049
Total operating expenses		42,123			23,112		110,268			60,328

Other income (expense):
(Loss) gain on remeasurement of warrant liabilities		(15,897	)		39,401		1,669			(2,276	)
Other income, net		24,875			184		24,211			156
Total other income (expense), net		8,978			39,585		25,880			(2,120	)

(Loss) income before income tax expense		(31,502	)		16,820		(77,277	)		(60,385	)
Income tax expense		550			16		747			73
Net (loss) income before allocation to noncontrolling interest		(32,052	)		16,804		(78,024	)		(60,458	)

Net (loss) income attributable to noncontrolling interest		(22,286	)		12,689		(54,613	)		(33,015	)
Net (loss) income attributable to common stockholders	$	(9,766	)	$	4,115	$	(23,411	)	$	(27,443	)
Net (loss) income per share of common stock attributable to common stockholders ⁽¹⁾
Basic	$	(0.18	)	$	0.08	$	(0.45	)	$	(0.31	)
Diluted	$	(0.18	)	$	0.07	$	(0.45	)	$	(0.31	)
Weighted average shares used in computing net (loss) income per share of common stock ⁽¹⁾
Basic		53,233,552			51,729,704		52,292,972			51,729,704
Diluted		53,233,552			51,839,841		52,292,972			51,729,704


	(1)		Earnings per share information excludes earnings for the periods prior to the Business Combination, as it resulted in values that would not be meaningful to the users of these condensed consolidated financial statements.

AST SPACEMOBILE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
(dollars in thousands)

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2022			2021			2022			2021

Net loss before allocation to noncontrolling interest	$	(32,052	)	$	16,804		$	(78,024	)	$	(60,458	)
Other comprehensive loss
Foreign currency translation adjustments		(1,267	)		(220	)		(1,865	)		(494	)
Total other comprehensive loss		(1,267	)		(220	)		(1,865	)		(494	)
Total comprehensive loss before allocation to noncontrolling interest		(33,319	)		16,584			(79,889	)		(60,952	)
Comprehensive loss attributable to noncontrolling interest		(23,083	)		12,490			(55,915	)		(33,283	)
Comprehensive loss attributable to common stockholders	$	(10,236	)	$	4,094		$	(23,974	)	$	(27,669	)


AST SPACEMOBILE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
*(dollars in thousands)*

	For the Nine Months Ended September 30,
	2022			2021

Cash flows from operating activities:
Net loss before allocation to noncontrolling interest	$	(78,024	)	$	(60,458	)
Adjustments to reconcile net loss before noncontrolling interest to cash used in operating activities:
Gain on sale of Nano		(24,646	)		-
Depreciation and amortization		3,457			2,049
(Gain) loss on remeasurement of warrant liabilities		(1,669	)		2,276
Non-cash lease expense		364			505
Stock-based compensation		7,093			1,899
Issuance of common stock for commitment shares		332			-
Changes in operating assets and liabilities:
Accounts receivable		(2,241	)		710
Prepaid expenses and other current assets		(20,444	)		(2,700	)
Inventory		(2,461	)		(282	)
Accounts payable and accrued expenses		12,259			(1,069	)
Operating lease liabilities		(323	)		(354	)
Deferred revenue		2,395			1,662
Other assets and liabilities		(17,516	)		(2,850	)
Net cash used in operating activities		(121,424	)		(58,612	)

Cash flows from investing activities:
Purchase of property and equipment		(20,685	)		(11,293	)
BlueWalker 3 satellite - construction in process		(25,165	)		(29,201	)
Proceeds from sale of Nano, net of cash deconsolidated and transaction costs		26,036			-
Net cash used in investing activities		(19,814	)		(40,494	)

Cash flows from financing activities:
Proceeds from issuance of common stock		16,994			-
Proceeds from business combination		-			456,420
Direct and incremental costs incurred for the Business Combination		-			(39,542	)
Issuance of incentive units under employee stock plan		60
Warrant exercises		14			-
Proceeds from debt		230			-
Net cash provided by financing activities		17,298			416,878

Effect of exchange rate changes on cash and cash equivalents		(1,068	)		(159	)

Net (decrease) increase in cash, cash equivalents and restricted cash		(125,008	)		317,613
Cash, cash equivalents and restricted cash, beginning of period		324,537			42,777
Cash, cash equivalents and restricted cash, end of period	$	199,529		$	360,390

Supplemental disclosure of cash flow information:
Non-cash transactions:
Purchases of construction in process in accounts payable	$	3,966		$	2,266
Purchases of property and equipment in accounts payable		755			1,306
Right-of-use assets obtained in exchange for operating lease liabilities		1,129			-

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