Q2 2022 AST SpaceMobile Inc Earnings Call
[music].
Good day, and thank you for standing by welcome to the a S. T space mobile second quarter 2022 business update call.
Please be advised that today's conference is being recorded.
I would now like to hand, the conference over to your Speaker today, Scott with New ski Chief strategy Officer of a S. T space Mobile. Please go ahead.
Thank you and good afternoon, everyone.
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.
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 could 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 empty space Mobile's annual report on Form 10-K for the year ended December 31st 2021, with the Securities and Exchange Commission and other documents filed by the states mobile are there from time to time.
You are cautioned not to put undue reliance on forward looking statements and the company specifically disclaims any obligation to update forward looking statements that may be discussed during this call.
Also after our initial remarks, we will be starting our Q&A section with questions submitted in advance by our shareholders.
Now referring to slide three for those of you who may be new to our company and our mission. There are over 5 billion mobile phones in use today around the world, but many of us still experienced gaps in coverage as we live work and travel.
In this backdrop ASCII states mobile building, the first and only global cellular broadband network and space to operate directly with standard unmodified mobile devices based on our extensive IP and patent portfolio.
Our engineers and scientists are on a mission to eliminate the connectivity gaps by today's 5 billion mobile subscribers and finally bring broadband to the 1 billion unconnected.
Since our last quarterly business update we have made strong progress and it is my pleasure to now pass it over to chairman and CEO of Bell Atlantic who will take you through that now.
Thank you Scott I would like to do a quick then I'll again as the industry organization update let me start with.
What country.
We will continue have been delivered to Cape Canaveral.
It is a.
Planned to be launched on our launch window that they start early to me to Denver.
In parallel to the construction of new work at three a M.
They are.
Building the next five satellites.
On the initial construction phase.
Using beside.
I'm box cumulative similar.
Similar to what we haven't been working three including if the reaction.
Actually we are there now.
And the cloud.
To be launch in late 2023.
And prior to that we also have a substantially complete and the commercial agreements.
We partner with some vendors.
To get access to the component that we would need for the next five block one satellites and the next generation Saturday.
Also.
We're on target with our central facility.
Due.
To support our scheduled planned launches.
A little more detail what happened when we launch a new work at three.
What would be the launch of testing timeline.
Slide 19, we check point that are supported and will continue to California.
For testing environmental testing that was successfully completed in California.
On August nine with Unfortunately will continue to Cape Canaveral, while we continue testing.
Continuing testing indicate.
While at the same time, we're competing in preparation for the launch.
And then the launch is planned for a window between early in Italy in September dilutive to mid September .
On a $5 nine from Cape Canaveral.
A deep loss to so two months after the launch with approximately two months after we launch.
We will have a lucrative place into orbit.
Any shade initially in orbit testing.
We will all pulled that rate will be.
It can be identical initiating communications.
On and then promptly from launch.
Yeah.
All the way.
Six months.
We will start.
Pain testing, our broadband direct your cell phone.
The system.
In cooperation with participating in the nose on six continents.
We will also be testing laboratory satellite are using Nokia and rock within infrastructure to interconnect with the local operators.
And Thats Donald well, we have lots of plans for we will get to you from now to two launch.
[noise] continue.
In the leasing momentum.
Continue to be strong we had added three new operators.
And included in our memorandum.
Although understanding with sovereign telecom.
In Asia, which is a large and important market.
With them, we had a we had reached more than $1 8 billion subscribers that we can access.
Through the agreements or memorandums of understandings that we have.
The operators around the globe.
We had increased our patent portfolio.
Two more than 2400 patents and patent pending claims to support our assortments by any competitive advantage.
We also have achieved an agreement to sell a majority owner cheap or men or the onyx on an enterprise value of 65 million.
The company expects to receive approximately $10 million in net proceeds at closing.
Just recently, we have M <unk>.
Complete an agreement with Nokia.
For the full year Plaguy technology to integrate it into.
Into our space network.
The technology that will be used in preventing feet are scale system, which is planning to wheel for us.
That was the interconnection.
Infrastructure between our Saturday April soldier on the email infrastructure.
And with that I would like to hand, it over to Sean <unk>, Our Chief Financial Officer.
Thanks Bill.
Good afternoon, everyone. These are exciting times for <unk> T and I want to thank the entire <unk> team for their efforts in getting the Blue Walker three test satellite to Cape Canaveral.
There has been an incredible amount of hard work and dedication for this to happen and it's truly been a team effort.
As I reflect on my first three months at a S. T. I continue to be impressed by the significant progress. Our company has made over the past few years. This progress has been recognized through the interest from large important third parties, including Msos with whom we have agreements and understandings representing over $1 8 billion subscribers.
And through our recent announcement with Nokia, where one of the leading mobile equipment providers in the world has recognized the potential of our system and is willing to invest significant time and resources to support our efforts.
Let me move on to a discussion about some of our key operating metrics that are presented on slide seven.
Looking at the first chart, we see for the second quarter of 2022, we.
We had non-GAAP adjusted operating expenses of $31 8 million versus $29 4 million in the first quarter.
non-GAAP adjusted operating expenses exclude noncash operating costs, including depreciation and amortization and stock based compensation totaling $3 6 million and $3 4 million in the second and first quarter, respectively. We expect to continue to expand that level of operating expenses for the next two quarters.
The $2 4 million increase in adjusted operating expenses compared to the first quarter was related to increased employee costs and other research and development and engineering expenses as we ramp up the development and infrastructure investments to support the Bluebird program.
And the second chart on the page you can see that our total property plant and equipment increased by $9 4 million in the second quarter. This compares to an increase of $19 million in the first quarter.
The $9 4 million and $19 million represent our capital expenditures for those periods a payment to our launch provider in the first quarter was the reason for the larger capital expenditures in the first quarter.
And on the final chart on this slide we ended the second quarter with $202 $4 million in cash. We believe this cash is sufficient to support our cash expenditures for more than the next 12 months.
In addition to this cash on hand, we've been working hard to develop other sources of cash and liquidity to supplement our activities. We understand the capital intensive nature of our project and we are highly focused on exploring a wide range of options in order to efficiently fund our efforts.
As our Blue Walker three satellite now resides in Cape Canaveral, We are now focusing our investments towards the production of our Blue Bird satellites. We believe a key advantage of the space mobile system is its ability to be deployed in a phased manner, where we can target a modest number of satellites to provide limited coverage to specific countries.
We believe this ability to phase in our coverage will provide us a first to market advantage and enable us to work with <unk> to introduce services and develop the market. We currently estimate the capital expenditures required for the design Assembly and launch of our first 20 commercial satellites to be approximately three <unk>.
Million to $340 million.
This is an increase from a midpoint of $14 million per satellite to $16 million per satellite or a little over 14%.
The estimated capital cost to complete the satellite configurations has increased from our prior estimates due to a number of factors. The initial five satellites, which we expect to launch in late 2023 will now use existing components from our Blue Walker three test satellite design, including certain integrated circuit components navigation.
Rolls and antennas, we benefit from this change in mix of satellites as it will enable a S T to construct and launch the satellites sooner.
But this will also result resulted in an increase in cost per satellite due to the current higher costs of these first generation components.
In addition to this change in the mix of our first 20 satellites, a number of factors, including inflation supply chain disruptions design changes and increases in the cost of electronic components Assembly equipment launch costs salaries and other aspects of our satellite design and assembly activities has increased the cost to <unk>.
Sign assemble and launch of our satellites.
These estimated cost trends are preliminary estimates and based on certain assumptions and information currently available to us and are subject to change based on numerous factors described earlier as well as delays in the development of components and materials launch costs and other factors.
I am encouraged by the progress the team has made and I'm excited about the company's future as we transition from the development phase two commercial satellite production.
You for your continued support of the space mobile mission and with that I'll turn it back to Scott.
Thanks, Sean.
Before we go to the queue of analyst questions would like to address a few of the questions submitted ahead of the call by our Investor.
Operator could you please start us off with the first question.
Terry from Georgia asked what is the ramp up plan for Bluebird launches and deployments postproduction.
Thank you Terry for the question.
Our plan is to use our two production facilities.
Midland Texas.
One which is a.
The approach that we used to be we welcomed 30 mm side too.
Which is the Pillow example, CDP, where combined we say one would allow us to scale up to six satellites per month promotion.
So we're taking a phased approach.
Our first building.
Our next local satellites you've seen.
Cement technologies and implementation of our Grand Casino games I too in order to launch.
And to support the launches that we have next year and <unk> and then to follow up on it then I would say to you know to support the successful at it.
Production coupled with it.
Steve from Arizona asked will the proceeds from the sale of <unk> stake in nano and equity sold under the B Riley facility generate enough proceeds to complete phase one of the space mobile constellation or what other actions such as tapping into the mixed shelf offering be needed.
Steve Thanks for that.
As we disclosed in our filings we look to manage our business with liquidity for at least the next 12 months.
And as I stated earlier, we believe we have enough cash and resources to fund our activities for the next 12 months, having said that we will need to raise additional capital before entering into phase one commercial service with 20 satellites.
As part of this capital raising effort, we have been working on a number of fronts, including the filing of a $500 million shelf for debt equity and preferred.
We sold nano, which will provide us $28 million in gross proceeds and we are in advanced stages, and securing equipment facility, which will help us purchase equipment in our manufacturing facility, we will be opportunistic in raising this capital in strategic and continue to raise capital on a variety of sources in order to fund out our plan.
Rick from the Netherlands asked can you. Please explain the expected average cost of the Bluebird satellites compared to the cost Blue Walker three.
Yes, Rick.
Blue Walker three costs are result of onetime research and development.
Building out supplier relationship seen what works and doesn't in a lot of that expenditure will be done once but not again, our block one blue birds will benefit from these learnings design and manufacturing of material selection as well as scale economics and prior upfront investment as I mentioned earlier the increase in our capital.
Cost estimates for the first 20 satellites was a result of the use of older generation Blue Walker three parts in the first five satellites and the impact of general inflation and supply chain issues. This has increased our estimated for satellite costs to go up about 14%.
I stripped from Toronto asked can you stress test the Blue Walker three in Ukraine Starlink is already in heavy use there in space mobile would definitely add value by connecting emergency services and the eastern and southern parts of the country to broadband Internet.
Thank you asked it.
Our technology architecture, which does not require user terminal and is designed to connect directly with unmodified handsets. This is really ideal for winter rush real networks are not available.
Oh.
Or the Ukraine, we would love for our solution to someday support military ambition to save lives.
And this applies to natural disasters outages or other emergencies.
We do not currently plan to test locker trend in Ukraine.
Andrew from Pennsylvania asked what do you anticipate being the biggest challenge for the launch and deployment of BW III.
Thank you Andrew.
Well we.
<unk> will.
It will be continuously testing luaka deal the way we go.
Captivated duty launch vehicles.
That is plan.
Yeah.
For our launch Buddy.
Scale early September we do now and that will continue.
So you need to get them on the testing.
We also continue preparing to be ready to launch but that they.
All of that has been the perform indicate.
In our local community where there.
There will be launch.
After that.
It's completely with launch we would be getting into into the space.
We would be rolling in.
In orbit.
That's basically to make sure that.
Everything continues to work.
Get into space I think we're going to go all of it.
Then we deploy and then we continue as I explained earlier.
This campaign.
Together with our network.
Butler.
And around the globe. So that's our base in Michigan and logistics, we have that plan and everything the continent.
This.
Population.
Many pets facilities and locations that will be laid out for that.
The logistics required for that too.
To do all the testing in <unk>.
In a timely manner.
And with that I'd like to thank our shareholders for submitting these questions.
Operator, let's open the call to analyst questions now.
At this time, we will be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if you'd like to remove your question from the Q4.
For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
One moment, please while we poll for questions.
Our first question is from Griffin Boston with B Riley. Please proceed with your question.
Hey, Thanks for taking my question.
So.
First off we've obviously seen some strength in the stock recently I'm not going to try to speculate on the exact drivers there, but it seems like the significant rally on the 11th.
It came on the heels of the FTC announcement that Spacex wouldn't be awarded the $900 million from the <unk> fund and whether or not that contributed to the rally is anyone's guess.
At the end of the day, you're not competing directly against Starlink or.
And you know the Rd audio Athens is unrelated to <unk> given that it's focused on fixed broadband, but I did want to come back to that topic of government funding in general on we know you are buying for a piece of the <unk> fund in the U S. I. Just was curious if you guys could provide any other color on if there are other government programs already out there internationally that you like.
Do you participate in or if you expect to see many of those opportunities like that outside the U S in the future.
Hi, Scott.
Scott here I'll take that one.
I think first off.
We continue to believe that would qualify under our perspective.
For.
For America.
SEC funds.
Details on that have not been released that still.
In process, but we continue to believe that we qualify for that based on the rulemaking from a little while ago and that's an opportunity for us for sure.
Globally, there are similar similar types of.
Funding available, we haven't talked about those specifically.
But generally speaking I'd say.
Our message and our story has been pretty well received and there are.
Apart from grants Theres also.
Government supportive debt that's available and so I think our story continues to resonate well with governments.
With regulators and importantly, as we get closer and closer to launch and where we delivered a satellite to Cape Canaveral.
Seeing that satellite has seen that the tangible milestone has been has been very powerful.
A lot of different audiences, but but.
We continue to believe we qualify for that perspective, SEC fund, but we're in a wait mode. There.
Got it okay, great. Thanks, Scott for that and then next is it related to the upcoming Blue Orca three launch and then subsequent testing.
If everything goes according to plan and there is no issues, obviously with that technology risk in the rearview mirror your ability to sign deals becomes much simpler and I know you guys mentioned a few more in the quarter and that was good to see but.
As you know the Blue locker one launch in 2019 was sort of the basis for investment from Vodafone Rocky tenant IMT and to the extent that you guys can discuss anything.
Around that have you been in talks with additional and then that was that maybe already have alluded to their willingness to sign and they'll use in the event that the blue block III testing is successful.
Yeah.
Yes at this point.
We've signed up to an agreement or understanding with quite a lot of the global M&A. So.
We're approaching $2 billion.
Subscribers under some kind of agreement or understanding and the.
The message continues to resonate quite nicely again in the prior question I referenced the tangibilitate the delivery of the satellite those are very powerful factors.
That our customers and regulators are pointing to.
There are a few other large <unk> that are out there over 100 million subscribers.
We have not signed but generally speaking we've.
Nearly all the top Msos, who are not say in China or not conflict with Vodafone.
So really we've made a lot of the progress there I think for us.
Tangible milestones very powerful and will continue to accelerate the customer conversations.
We're pretty happy where we are at this stage.
Okay, Yeah that makes sense. So just along those lines I know you mentioned the Nokia deal and I was just hoping if you guys could elaborate a little bit more on that partnership and the enrollment Nokia is playing in the rollout and commercialization of <unk> mobile and how this agreement as sort of different than the other and then only payments that we've seen in the past.
Yeah, absolutely so regarding Nokia they are one of them.
The.
The top three global providers of brand networks.
Hardware and software globally. So these are companies that.
Sell to the same customers that then.
Our same customers.
Equipment and software too.
The wireless companies, who then use it to build out their network.
Technology that sits on the top of the tower on the base of the tower and then back to the number of course.
A leader here and there.
Together with a rack of 10.
A new entrant in one of our top investors there two providers of this equipment that will sit back at the gateway a couple locations within each country.
And be part of the.
The network the.
The immuno network for connecting to.
Our backhaul so so I think that's.
A real powerful indicator that we have someone like that working with us and they are off the shelf hardware in customized software will be very very valuable for our M&A doesn't allow them to scale up very quickly.
Alright, great I appreciate that's gotten thanks again looking forward to the launch.
Launching in September .
Our next question is from Bryan Kraft with Deutsche Bank. Please proceed with your question.
Hi, good afternoon, great to see the progress at blocker Blue Walker, three and the launch coming in September I wanted to ask you, though about the announcement around the timing of the five bluebirds that will launch in late 2023.
It represents roughly two quarter postponement from your disclosure in May.
Assuming that's right can you just talk about the factors behind the change in the timeline for the launches and also you know at this point what your overall.
Timeline is for commercializing starting to commercialize the bluebirds and generating revenue from the satellites. Thank you.
Hey, Brian how are you.
Great. Thanks.
The planning to launch this satellite.
Launcher.
Also known as.
On a $5 nine on DVA is to actually just start monetizing these initial satellites.
We had a service that is not continuous service.
Allowed us to start monetizing the satellites earlier, rather than waiting for the complete global satellite to be in place.
The this launch is planned for later in 2023.
Uh huh.
Just a couple of things that we have done with them. So we are reusing.
A significant part of the.
R&D sign a global commodity.
Yes, the Onyx FBA saltwater.
In order to to reuse that as at the same time, we're also having the net generation satellites.
Okay.
In design.
To start.
So theoretically the production of the well sort of a bonus for them.
So that's the rationale of that this is basically to get to.
Okay.
Service.
With this initial satellites.
It will always continue to service us anymore to have continuous everybody will allowed us to basically start monetizing those initial satellites.
Earlier.
Having completed the complicit.
So it sounds like early 2024 is that is that the right.
Way to interpret your your statements at all.
Yes, I mean late very late 'twenty early 'twenty 'twenty four yes.
Okay.
Great and just your confidence level in that timeline.
Late in 2023 on the launches it sounds like you've got a lot of the pieces in place now so it sounds like you're fairly confident in that.
Yes, we announced earlier we have.
Reservation for that launch.
We are basically taking advantage of everything that we have learned.
<unk>.
For global country.
His many many many less alerts are we did build the first.
We obviously applying them.
Two.
Slower processes too.
Bill.
Yes, I mean, we continue to repeat.
The production of these satellites.
The base would be accelerating so that's.
So we have taken this approach.
Okay. Okay. Thank you.
Our next question is from K, a little bit Henry with Quilty analytics. Please proceed with your question.
Hi, guys a few questions from me. The first five satellites can you give any detail on how those will be different from the remainder of <unk>.
Block one satellites the other 15.
Yes, the main different <unk>.
<unk> base.
They are.
There is two different one is their size.
Mass.
And then the other.
Rather than different is <unk>.
Usage of basics versus <unk>.
No.
Or the.
To this day differences.
We need to do to sell it.
Okay, how much of a size difference or youre looking at between the two different designs.
That real estate around half.
Between between.
One on deal.
Yeah.
Okay.
The latter ones the ones that the asics will be the smaller spacecraft.
It would be the largest.
Okay, so there'll be about twice as big.
Okay.
You mentioned that you guys have testing for satellites in California.
Manufacturing is in Texas and the launch.
For the time being is in Florida, just wondering if there are any plans to try and consolidate testing too.
Our location, that's either closer to manufacturing or lunch or is that not really an issue of having it in California.
No that was really one time.
Event.
For all of this was it was outlets.
The environmental testing, which is one of many testing.
We did we have done over.
800 deaths in this space and as I said earlier, we will be testing until we are completely capsulate. It.
Into into the launch vehicles.
Going forward all suddenly we'll be full we will not need to transport.
The Bluebird once.
Outside our associated.
Okay.
And then just last question so in terms of launching the remainder of the block one satellites and then going beyond that.
Do you have any timeline in plan for the announcement of additional lunch orders or do you have additional launch capacity already secured with Spacex beyond.
Those first five.
Hey, this is Scott here I'll take that one so we have a multi launch agreement with Spacex and so we did.
Decent prepayments for for additional launch so that is.
As you know.
But that has been made and that would go potentially for a second launch.
In terms of components.
<unk> put in place a component.
Component suppliers for.
First five satellites and for the next generation beyond that many components are already contracted as well so.
We've got the planning in place.
We try to be smart around long lead items.
And in the future.
So there is disruption in the supply chain to manage that everyone's dealing with so we've.
We've been planning actively for the satellites to come after the first five.
But at this time, we're not going to announce a win but those are those are ones that we're obviously very focused on them and we want to be building satellites as fast as we can but we've.
<unk> taken the first five satellites.
As a single launches adult said kind of a chunky way to to make a dent in the constellation and that's one that we're.
We're doing it the first move in but.
We plan to have satellite behind that very closely.
Alright, those are all my questions. Thank you.
Our next question is from Landon Park with Morgan Stanley . Please proceed with your question.
Great. Good afternoon, thanks for taking the questions everyone.
Just on the Blue Walker three testing can you talk.
Talk about.
What are the main.
The issues that you think could arise during testing.
Do you view as the biggest hurdles to sort of over a common and what type of disclosure should we expect throughout the.
Sort of that six months process of testing.
Hi, how are you.
Okay, well I think to us.
With that I will have to split this in phases. So the first des.
It does get performing after we.
Launch.
Get into orbit, we will perform an in orbit testing, which basically will be due to verify that the political all the components on the signed late sales arrive.
The propylene into orbit in all the components are functioning as expected that would be that would be the first phase.
On.
We believe that they will that would be in the first two weeks after launch.
And then after that.
There will be a phase when we decide.
To deploy basically to release.
The array.
On.
Basically we had a phase III for approximately a meter by meter.
Deploy.
We have cameras we have.
Potentially other side, let's taking a picture of that event.
We're not close.
Is that basically prove the mechanisms and the ability to open.
The satellite.
The loss events.
We started basically.
A lot of these pre.
Pre plan and obviously I agree with the net where operators when we start doing broadband directly cellphone with little over three so for that.
We will have multiple opportunities to test with leading operators.
The satellite.
Together with the Nokia and drive it to an agreement on the ground.
And we basically will be able to.
To demonstrate our broadband directly to the handset Uh huh.
That kind of the less let's face.
Yes.
Thanks.
Which of these do you view as the biggest hurdle for you to overcome.
Well, that's difficult to say I mean, we had to spend.
Over a year of testing.
On <unk>.
Barry find that all of these states will with function.
As planned.
So at this moment.
Our view on our is.
When we launch as we are.
The evidence that we think that everything will will operate a plan.
Uh huh.
The.
And that's also why we have face it.
No retesting deployment, and then actual broadband to blue cell phones.
And can you remind me what type of.
Throughput per device, you're expecting with Walker through.
We're expecting <unk>.
Right.
Yeah.
Of course is that this satellite.
We will be fine tuning the network together with the operators.
We believe that we will be in compliance with the <unk> E.
Specification so of the FCC for the five year rule or a phone.
Okay.
Does any of that with liquidity.
Of course, we launch.
We launch the additional satellites.
We add additional improvement to them.
We expect that to some degree.
Yes.
Okay.
So.
So.
Just to make sure I understand what the boardwalk or through the service.
Throughput will be more limited.
So the expectation is that because youre testing is in such a narrow band or.
No we had.
It is in our experimental license, we had a 10 meter herblock.
Okay I'll do testing we have.
Facilities and locations in Texas to perform the test.
Also in Hawaii.
A list of 10 megahertz of spectrum allocated to us.
We expect.
Roughly $1 five bits per hertz on the uplink two.
Two to three weeks for Hurricanes is only.
That's that we have we have the spectrum located.
We had an approval from the FCC.
Yeah.
So that's 10 megahertz of PDD I guess.
Judy.
Oh Im sorry, okay. So okay. So it sounds like double digit downlink.
In terms of data rates, okay and.
And what is the.
Have you talked about the type of throughput per.
Her satellite you're expecting for Blue Walker, three and what that what the ratio then is to to the bluebirds.
Yes.
Yes.
Capacity per satellite is around one point.
Gigabytes per months.
Per satellite.
Yes.
<unk>.
That number will increase we have satellites that we will be able to to enable miami into the network.
But we.
In the <unk>.
The approximate capacity tonnage capacity.
We plan to support with this type of space.
Is that around that number.
Can you unpack that number in terms of.
What are the assumptions are in terms of gross throughput and.
Usable throughput are.
That is usable throughput into handsets.
Billable.
Yes, I'm just wondering what are the underlying us what is the in terms of Gigabits per second what is the throughput of the satellite.
Well we had.
Approximately nine 9% to 13 gigabytes.
<unk> per second of all.
<unk>.
Don't get capacity back.
To ground.
And though we can breakdown into into into an area of approximately <unk> 28.
Kilometers of the amateur.
That moves around.
Around the year.
<unk>.
And that when you take into consideration.
Okay.
<unk>.
As the satellite.
Move.
These phones are area, where there are no phones and all of that that's how you.
Basically.
Ken can get an estimation of the amount of tonnage of <unk>.
So does meet into the handset.
Just to make sure I am understanding you said nine to 13 gigs per satellite in terms of <unk>.
Yes, Okay, that's blue I'll refer that to Bluebird the initial blueprint.
<unk> three.
So.
Those are the production sites Bluebird.
Okay perfect Great. That's all very helpful. And then just Shawn just just one question for you.
Did you size the funding gaps that you're expecting.
We don't disclose that as yet.
What we have been doing some guidance on <unk>.
How were funded for the next 12 months.
We've also given guidance on on our on our 20 satellite configuration.
And it sounds like you say your quarterly burn rate shouldn't exceed $50 million it sounds like over the next year.
On average.
We are.
We're expecting cash operating expenses around 30, Capex will go up or down, but it could be in that range yes.
Okay, great. Thanks, very much for all the questions.
We have reached the end of the question and answer session and I will now turn the call over to Scott with new ski for closing remarks.
Thank you operator, our company is building a space based cellular broadband network design.
Use of the phone in your pocket today.
We want to thank all of our shareholders for joining the call and their continued strong support of the FTE based mobile emission. Thank you.
Thank you. This concludes today's conference call. Thank you for participating you may now disconnect.
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Yes.
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Yeah.
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Hum.
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