Press-Releases

NextNav Inc. Reports Fourth Quarter and Full Year 2023


Announced Transaction to Acquire Additional 900 MHz Spectrum Licenses

Mariam Sorond Joins as NextNav CEO

MCLEAN, Va., March 13, 2024 (GLOBE NEWSWIRE) — NextNav Inc. (NASDAQ: NN) (“NextNav” or the “Company”) a leader in next generation positioning, navigation, and timing (PNT) and 3D geolocation, today reported financial results for NextNav’s fourth quarter and full year ended December 31, 2023.

Mariam Sorond, NextNav CEO stated, “It’s been an incredible first 100 days as the CEO of NextNav. I have met directly with our team and partners and see the potential to explore options to enhance our next generation PNT technology through optimized use of our valuable spectrum asset. In line with this strategy, we recently signed an exciting agreement to acquire additional spectrum licenses covering 4 MHz in the lower 900 MHz band. Following close, this significant transaction will bring NextNav’s combined spectrum assets, including its existing 8MHz of contiguous 900 MHz spectrum, to a total of 3.5 billion MHz-PoPs of low band spectrum.

PNT powered by low-band spectrum with optimized use is a unique and powerful opportunity to help to address many of the challenges faced by both the public and private sectors, including national security and public safety. As we move forward, we are taking a fresh look at our entire offering and considering how best to take full advantage of our valuable spectrum assets to drive growth and long-term shareholder value.”

Recent Operational Highlights

  • Acquires Additional 900 MHz Spectrum Licenses: On March 11, 2024, NextNav announced it had signed an agreement to acquire spectrum licenses covering an additional 4 MHz in the lower 900 MHz band for a total purchase price of up to $50 million. Following close, NextNav’s combined spectrum assets, including its existing 8MHz of contiguous 900 MHz spectrum, will total 3.5 billion MHz-PoPs of low band spectrum.
  • Mariam Sorond Named New Chief Executive Officer: Mariam Sorond, a veteran industry leader, was appointed NextNav’s new Chief Executive Officer, effective November 29, 2023. Ms. Sorond joins NextNav with over 28 years of technical and strategy experience in the telecommunications industry, including extensive spectrum expertise and proven track record of evolving telecommunication technology and strategy.
  • Appointed John Muleta to Board of Directors: NextNav announced the appointment of John Muleta to the Board of Directors, effective January 18, 2024. Mr. Muleta’s brings deep expertise in the development and implementation of wireless policies, particularly in spectrum allocation and public safety in both the private and public sectors, including previously serving as the Wireless Telecommunications Bureau Chief at the Federal Communications Commission.

Three and Twelve Months Ended December 31, 2023, Financial Highlights

  • Revenue: was $1.2 million in the three months ended December 31, 2023, as compared to $803,000 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. In the twelve months ended December 31, 2023, revenue was $3.9 million, and was flat with the prior year period. There was a decrease in integration revenue which was partially offset by increased recurring service revenue from technology and service contracts with commercial customers.
  • Operating Loss: was $19.9 million in the three months ended December 31, 2023, as compared to an operating loss of $14.5 million in the prior year period, primarily driven by increases in stock-based compensation expense and payroll-related expenses. In the twelve months ended December 31, 2023, operating loss was $63.5 million, as compared to an operating loss of $65.5 million in the prior year period, primarily driven by lower stock-based compensation expense which was partially offset by increase in payroll-related expenses.
  • Net Loss: was $16.4 million in the three months ended December 31, 2023, including a gain on the fair value of warrants of $5.7 million, as compared to a net loss of $12.5 million in the prior year period, including a gain on the fair value of the warrants of $1.5 million. In the twelve months ended December 31, 2023, net loss was $71.7 million, including a loss on the fair value of warrants of $4.1 million as compared to a net loss of $40.1 million in the prior year period, including a gain on the fair value of the warrants of $24.7 million.
  • Balance Sheet: as of December 31, 2023, the Company had $81.9 million in cash and cash equivalents, $4.0 million in short term investments and has $48.4 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

NextNav will host a conference call for analysts and investors at 5:00 pm ET on Wednesday, March 13, 2024.

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/Q4I629368796093022208 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 March 20, 2024 by dialing (800) 770-2030 from the U.S., or (647) 362-9199 from outside the U.S. The conference I.D. number is 62936.

About NextNav Inc.

NextNav Inc. (Nasdaq: NN) is a leader in next generation positioning, navigation and timing (PNT), enabling a whole new ecosystem of applications and services that rely upon 3D geolocation and PNT technology. Powered by low-band licensed spectrum, NextNav’s positioning and timing technologies deliver accurate, reliable, and resilient 3D PNT solutions for critical infrastructure, GPS resiliency and commercial use cases.

For more information, please visit https://nextnav.com/ or follow NextNav on Twitter or LinkedIn.

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 “forecast,” “intend,” “seek,” “target,” “anticipate,” “believe,” “expect,” “estimate,” “plan,” “outlook,” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. 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 FCC of the transfer of the licenses, closing of the transactions described herein, the achievement of certain FCC-related milestones, the ability to realize the broader spectrum capacity and the advancement of NextNav’s PNT services, NextNav’s position to drive growth in its 3D geolocation business and expansion of its next generation PNT technologies, the business plans, objectives, expectations and intentions of NextNav, and NextNav’s estimated and future business strategies, competitive position, industry environment and potential growth opportunities. These statements are based on NextNav’s management’s current expectations and beliefs, as well as a number of assumptions concerning future events.

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 and the closing of the transaction does not occur; (2) the risk that the consummation of the transactions disrupts current plans and operations of NextNav; (3) the ability to recognize the anticipated benefits of the transactions, which may be affected by, among other things, competition, the ability of NextNav to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; (4) costs related to the transactions; (5) the possibility that NextNav may be adversely affected by other economic, business and/or competitive factors; and (6) 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 is impossible for NextNav to predict these events or how they may affect the Company. You are 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.

Contact:

Erica Bartsch

Sloane & Company

ebartsch@sloanepr.com

212-446-1875

NEXTNAV INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

    December 31,  
    2023     2022  
    (in thousands)  
Assets            
Current assets:            
Cash and cash equivalents   $ 81,878     $ 47,230  
Short Term Investment     3,954       8,216  
Accounts Receivable     2,332       2,168  
Other current assets     3,056       3,576  
Total current assets   $ 91,220     $ 61,190  
Network under construction     1,676       3,574  
Property and equipment, net of accumulated depreciation of $9,724 and $5,971 at December 31, 2023 and 2022, respectively     19,885       19,180  
Operating lease right-of-use assets     19,267       10,143  
Goodwill     17,977       17,493  
Intangible assets, net     10,625       10,397  
Other assets     1,508       1,811  
Total assets   $ 162,158     $ 123,788  
                 
Liabilities, preferred interests, and stockholders’ equity (deficit)                
Current liabilities:                
Accounts payable   $ 391     $ 1,019  
Accrued expenses and other current liabilities     6,592       5,241  
Short term lease liabilities – operating     2,523       2,532  
Deferred revenue     297       95  
Total current liabilities   $ 9,803     $ 8,887  
                 
Warrants     7,053       4,200  
Long-term lease liabilities – Operating       15,145       5,290  
Other long-term liabilities     1,614       1,547  
Long-term debt, net of debt issuance cost and discount     48,447        
Total liabilities   $ 82,062     $ 19,924  
                 
Stockholders’ equity (deficit):                
Common Stock, authorized 500,000,000 shares; 111,260,257 and 106,418,442 shares issued and 111,132,222 and 106,417,265 shares outstanding at December 31, 2023 and 2022, respectively   $ 12     $ 12  
Additional paid-in capital     837,416       787,130  
Accumulated other comprehensive income     2,198       1,371  
Accumulated deficit     (760,227 )     (688,492 )
Common stock in treasury, at cost, 128,035 and 1,177 shares at December 31, 2023 and December 31, 2022, respectively     (665 )     (4 )
Total stockholders’ equity (deficit)   $ 78,734     $ 100,017  
Non-controlling interests     1,362       3,847  
Total liabilities, preferred interests, stockholders’ equity (deficit) and non-controlling interests   $ 162,158     $ 123,788  

NEXTNAV INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(UNAUDITED)

    Year Ended December 31,  
    2023     2022  
    (in thousands, except per share amounts)  
Revenue   $ 3,862     $ 3,926  
Operating expenses:                
Cost of goods sold (exclusive of depreciation and amortization)     12,743       11,806  
Research and development     19,503       17,059  
Selling, general and administrative     30,324       36,926  
Depreciation and amortization     4,821       3,671  
Total operating expenses   67,391     $ 69,462  
Operating loss     (63,529 )     (65,536 )
Other income (expense):                
Interest income (expense)     (3,664 )     901  
Change in fair value of warrants     (4,101 )     24,675  
Other loss, net     (220 )     (184 )
Loss before income taxes   $ (71,514 )   $ (40,144 )
Benefit (Provision) for income taxes      (221 )     28  
Net loss   $ (71,735 )   $ (40,116 )
Foreign currency translation adjustment      827       1,492  
Comprehensive loss   $ (70,908 )   $ (38,624 )
Net loss   $ (71,735 )   $ (40,116 )
Net loss attributable to common stockholders   $ (71,735 )   $ (40,116 )
Weighted average of shares outstanding – basic and diluted     107,972       101,029  
Net loss attributable to common stockholder per share – basic and diluted   $ (0.66 )   $ (0.40 )

 NEXTNAV INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

    Year Ended December 31,  
    2023     2022  
    (in thousands)  
Operating activities            
Net loss   $ (71,735 )   $ (40,116 )
Adjustments to reconcile net loss to net cash used in operating activities:                
Depreciation and amortization     4,821       3,671  
Equity-based compensation     21,838       26,501  
Change in fair value of warrant liability     4,101       (24,675 )
Realized and unrealized gain on marketable securities     (546 )     (72 )
Equity method investment loss     191       230  
Asset retirement obligation accretion     66       56  
Amortization of debt issuance costs and discount     3,151        
Changes in operating assets and liabilities:                
Accounts receivables     (164 )     (428 )
Other current assets     537       593  
Other assets     119       161  
Accounts payable     (627 )     486  
Deferred revenue     202       (1,537 )
Accrued expenses and other liabilities     1,884       (2,501 )
Operating lease right-of-use assets and liabilities     722       536  
Net cash used in operating activities   $ (35,440 )   $ (37,095 )
                 
Investing activities                
Capitalization of costs and purchases of network assets, property, and equipment      (2,751 )     (2,964 )
Purchase of equity method investments           (1,125 )
Purchase of marketable securities     (37,441 )     (13,644 )
Sale and maturity of marketable securities     42,249       5,500  
Purchase of business, net of cash acquired           (2,890 )
Purchase of internal use software     (983 )     (613 )
Net cash provided by (used in) investing activities   $ 1,074     $ (15,736 )
                   
Financing activities                
Proceeds from debt     70,000        
Payments towards debt issuance cost     (1,861 )      
Payments towards debt     (110 )     (17 )
Proceeds from exercise of stock option     73       57  
Proceeds from exercise of warrants     882        
Proceeds from issuance of common stock           7  
Purchase of common stock (withholding taxes)           (4 )
Net cash provided by financing activities   $ 68,984     $ 43  
Effect of exchange rates on cash and cash equivalents     30       (58 )
Net increase (decrease) in cash and cash equivalents     34,648       (52,846 )
Cash and cash equivalents at beginning of period     47,230       100,076  
Cash and cash equivalents at end of period   $ 81,878     $ 47,230  
                     
Non-cash investing and financing activities                
Common stock issued in acquisition of business   $     $ 13,888  
Capital expenditure included in Accrued expenses and other current liabilities   $ 285     $ 605  
Reclassification of warrant liability to common stock warrants   $ 1,248     $  
Issuance of warrants   $ 22,843     $  
Interest paid in shares   $ 1,888     $  
Interest paid in cash   $ 1,808     $  
Income taxes paid, net   $ 147     $  



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