Q1 2024 NextNav Inc Earnings Call

Eric: Thank you for standing by. My name is Eric, and I will be your conference operator today. At this time, I would like to welcome everyone to the Nextnav First Quarter 2024 Earnings Conference Call. All lines have been placed on mute to prevent any background noise.

Thank you for standing by my name is Eric and I'll be a conference operator today.

Speaker Change: At this time I would like to welcome everyone to the next job first quarter 2024 earnings Conference call.

Eric: All lines have been placed on mute to prevent any background noise.

Eric: After the speakers emerge, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you'd like to withdraw your question, press star 1 again. Thank you. I would now like to turn the call over to Erica Bartsch.

Eric: After the Speakers' remarks, there will be a question and answer session.

Erica Bartsch: If you'd like to ask a question. During this time simply press star followed by the number one on your telephone keypad.

Erica Bartsch: If you would like to withdraw your question Press Star one again.

Erica Bartsch: Thank you.

Eric: I would now like to turn the call over to Erica Bartsch.

Erica Bartsch: Please go ahead.

Erica Bartsch: Good afternoon, everyone, and welcome to Nextnav's first quarter 2024 earnings conference call. Participating on today's call are Mariam Sorond, Nextnav's Chief Executive Officer, and Chris Gates, Nextnav's Chief Financial Officer.

Erica Bartsch: Afternoon, everyone and welcome to <unk> first quarter 2024 earnings conference call participating on today's call are maryann surround net.

Erica Bartsch: Speculative officer, and Christine <unk>, Chief Financial Officer before we begin let me remind everyone that this call will include certain statements that constitute forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.

Erica Bartsch: Before we begin, let me remind everyone that this call will include certain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as may, anticipate, believe, expect, intend, might, plan, possible, potential, aim, strive, predict, reject, should, could, would, will, and similar expressions. But the absence of these words does not mean that a statement is not forward-looking.

Erica Bartsch: Forward looking statements maybe identified by the use of words, such as May anticipate believe expect intend plan possible potential aim drives predict exactly should could would will.

Erica Bartsch: And similar expressions may identify forward looking statements, but the absence of these words does not mean that a statement is not forward looking.

Erica Bartsch: Such forward-looking statements, which may relate to Nextnav's forecast of future results, future prospects, developments, and business strategies, 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 those discussed in the forward-looking statements. 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.

Erica Bartsch: Such forward looking statements, which may relate to next now forecasts of future results future prospects developments and business strategies are subject to known and unknown risks uncertainties assumptions and other important factors many of which are outside <unk> control that could cause actual results to differ materially.

Erica Bartsch: <unk> from the results discussed in the forward looking statements.

Erica Bartsch: You are cautioned not to place undue reliance upon any forward looking statements, which speak only as of the date made and next NAV undertakes no commitment to update or revise the forward looking statements, whether as a result of new information future events or otherwise.

Erica Bartsch: For additional information regarding risk factors, see Part 2, Item 1A, Risk Factors of the Company's Quarterly Reports on Form 10-Q and Part 1, Item 1A, Risk Factors of Nextnav's Annual Report on Form 10-K for the year ended December 31st, 2023, as well as those otherwise described or updated from time to time in our other filings with the Securities and Exchange Commission. Following our prepared remarks, the company will host an operator-led question and answer session. In addition, at the conclusion of today's call, a replay of our discussion will be posted on the company's investor relations website. I'd now like to turn the call over to Miss Mariam Sorond.

Erica Bartsch: For additional information regarding risk factors see part two item one a risk factors of the Companys quarterly reports on Form 10-Q, and part one item one a risk factors of <unk> annual report on Form 10-K for the year ended December 31, 2023, as well as those otherwise describe.

Mariam Sorond: These are updated from time to time in our other filings with the Securities and Exchange Commission.

Mariam Sorond: Following our prepared remarks, the company will host an operator led question and answer session. In addition at the conclusion of today's call a replay of our discussion and will be posted to the company's investor Relations website I'd now like to turn the call over to MS. Mary <unk> Chief Executive Officer of next Matt. Please go ahead.

Mariam Sorond: Thank you, Erica, and good afternoon, everyone. I am pleased to have you join us for our first quarterly call. On today's call, I would like to run through some of the recent strategic updates on the business, and we'll then turn things over to Chris for a review of our financials. While this is only my second earnings call as Nextnav CEO, I am particularly excited to be speaking with you today given the activity over the last few weeks.

Mariam Sorond: Thank you Erica and good afternoon, everyone. I am pleased to have you join us for our first quarter call on today's call I would like to run through some of the recent strategic update on the business and we'll then turn things over to Chris for a review of our financials.

Mariam Sorond: Well. This is only my second earnings call as CEO I am, particularly excited to be speaking with you today given the activity over the last few weeks.

Mariam Sorond: As I noted on our last call, I have been working closely with the team since I arrived to develop my strategic vision for the future of Nextnav. Today, I am thrilled to be able to share in greater detail what we have been working on and our strategy for moving forward. To get right to the point, my team and I are focused on presenting a new vision for complementing and backup to GPS with additional spectrum for broadband services.

Mariam Sorond: As I noted on our last call I have been working closely with the team since I arrived to devote my strategic vision for the future of next not today I am thrilled to be able to share in greater detail, what we've been working on and our strategy for moving forward.

Mariam Sorond: To get right to the point the team and I are focused on preventing a new vision for complement and backup to GPS with additional spectrum for broadband services.

Mariam Sorond: The country's principal P&T system, GPS, is foundational to national security, the U.S. economy, and powering critical infrastructure, but it has coverage limitations indoors and in urban canyons and is vulnerable to jamming and spoofing. We see our vision as an innovative solution that enables next-gen terrestrial PNT by leveraging 5G broadband. Our goal is single-digit accuracy everywhere, creating a terrestrial PNC solution that provides 3D location and timing that is highly accurate, and is available indoors as well as outdoors and in urban canyons.

Mariam Sorond: The country's principal P&C system Gcs is foundational to national security, the U S economy, and power and critical infrastructure.

Mariam Sorond: Hungary's limitations indoors and in urban canyons and as vulnerable to Jeremy is spoofing.

Mariam Sorond: We see our vision as an innovative solution that enables nextgen terrestrial P&C by leveraging <unk> broadband.

Mariam Sorond: Our goal is single digit of accuracy everywhere, creating a terrestrial P&C solution that provides three b location and timing that is highly accurate is available indoors as well as outboard and urban Canyon.

Mariam Sorond: On April 16th, many of you know that we filed a petition for rulemaking, asking the FCC to enable this innovative spectrum solution in the lower 900 MHz band. This was a significant milestone for the business and a big step forward in advancing our strategic vision. This action follows the March 28th court approval for our previously announced agreement to acquire spectrum licenses, covering an additional 4 MHz in the lower 900 MHz band.

Mariam Sorond: On April 16, many of you know that we filed the petition for rule, making asking the FCC to enable this innovative spectrum solution in the lower 900 megahertz band.

Mariam Sorond: This was a significant milestone for the business and a big step forward in advancing our strategic vision.

Mariam Sorond: This action follows the March 20th Court approval for our previously announced agreement to acquire spectrum licenses.

Mariam Sorond: During an additional four megahertz in the lower 900 megahertz band.

Mariam Sorond: In receiving court approval, we then had the green light to move forward with obtaining FCC approval in mid-April. In terms of our petition, at a high level, we are asking the FCC to reconfigure the BAM plan and update the rules to, 1. Enable a high-quality terrestrial PNT complement and backup to GPS on which the nation relies for essential PNT services. 2.

Mariam Sorond: In receiving court approval. We then have the green light to move forward with obtaining FCC approval in mid April.

Mariam Sorond: In terms of our petition at a high level, we are asking the SPC to reconfigure the band plan and update the week to.

Mariam Sorond: One enable a high quality terrestrial PMT complement and backup to GPS on which the nishu realized for essential P&C services and to provide 15 megahertz of low band spectrum for use by five G broadband networks.

Mariam Sorond: Provide 15 MHz of low-band spectrum for use by 5G broadband networks. We believe this new vision for the lower 900 megahertz band will unleash spectrum for essential PNT solutions, as well as 5G broadband, while ensuring incumbent operations are appropriately protected. More importantly, our proposal does not require taxpayer money or legislation.

Mariam Sorond: We believe this new version for the lower 900 megahertz band will only spectrum for essential P&C solutions as well as quite a few broadband while ensuring incumbent operations are appropriately protected more importantly, our proposal does not require taxpayer money or legislation.

Mariam Sorond: I will offer more on that in a moment. As many of you know, Nextnav is already the main geographic licensee in the lower 900 MHz band. Our existing licenses are being used to develop industry-leading P&T expertise and products. However, the Lord 900 Banker Expand is underutilized, primarily due to band fragmentation and legacy technical and service rules that limit use of the band.

Mariam Sorond: I will offer more on that in a moment.

Mariam Sorond: As many of you know <unk> is already the main geographic licensee in the door in 900 megahertz band.

Mariam Sorond: Our existing licenses are being used to develop industry, leading PNC expertise and products. However, the law 900, Burger and underutilized, primarily due to brand fragmentation and legacy technical and service would that limit use of the band.

Mariam Sorond: As part of our proposal, Nextnav would commit to enabling a terrestrial 3D P&T service as a necessary backup and complement to GPS. Today, GPS plays a pivotal role in U.S. PNC architecture. GPS is an incredible technology that powers much of our nation's critical infrastructure, including electricity, telecommunications, public safety, and banking. But it is vulnerable to jamming and spoofing. Look no further than issues happening

Mariam Sorond: As part of our proposal.

Mariam Sorond: Now I would commit to enabling a terrestrial three D. P M to service as a necessary backup and complement to GPS.

Mariam Sorond: Today GTS plays a pivotal role in U S. P&C architecture, GPS has an incredible technology that powers most of our nation's critical infrastructure, including electricity telecommunications public safety and banking.

Mariam Sorond: But it is vulnerable to jamming and spoofing.

Mariam Sorond: Look no further than issues happening internationally satellite based system like GPS have coverage limitations indoor and in urban canyons current GPS technology can be helpful for emergency services.

Mariam Sorond: Satellite-based systems like GPS have coverage limitations indoors and in urban canyons. Current GPS technology can be helpful for emergency services as accurate geolocation can be the difference between life and death. However, without GPS, essential functions would be significantly impaired or inoperable.

Mariam Sorond: Accurate geolocation can be the difference between life and death.

Mariam Sorond: However, without GPS essential functions will be significantly impaired or inoperable.

Mariam Sorond: More importantly, spectrum is also a finite resource, and we will need more spectrum to power all the wireless services that fuel the economy. As a result, both public and private sector experts have determined that the U.S. urgently needs a robust terrestrial 3D PNT solution to complement and back up GPS. Additionally, there is broad consensus that making additional spectrum available for wireless networks would be advantageous to the U.S. economy and overall global competitiveness.

Mariam Sorond: More importantly spectrum is also a finite resource and we will need more spectrum to power all the wireless services that fueled the economy.

Mariam Sorond: As a result, both public and private sector experts have determined that the U S urgently needs a robust terrestrial.

Mariam Sorond: T solutions complement and backup GPS.

Mariam Sorond: Additionally, there is broad consensus when making the additional spectrum available for wireless networks would be advantageous to the U S economy and overall global competitiveness.

Mariam Sorond: We believe a terrestrial 3D PNC backup and complement to GPS will mitigate the risk to the country, unleash commercial opportunities, and help public safety by providing location information and situational awareness indoors and in multi-story buildings. However, it has historically not been economically feasible to deploy a stand-alone wide-scale terrestrial 3D TNT network. The reasons for this are twofold.

Mariam Sorond: We believe a terrestrial <unk> backup and complement to GPS will mitigate the risk to the country unleash commercial opportunity and how public safety by providing location information and situational awareness in doors and a multi story buildings.

Mariam Sorond: However, it has historically not been economically feasible to deploy standalone to wide scale terrestrial <unk> TNT network. The reasons for this are twofold, one tcf of Threep <unk>.

Mariam Sorond: One, GPS is free, limiting potential revenue for other P&T offerings. And two, it is difficult to drive adoption of P&T-specific protocols into consumer devices, thus limiting subscribers. By reconfiguring the band, we see a direct path to a wide-scale terrestrial 3D PNT network. Leveraging the lower 900MHz band in terrestrial, 5G networks create a unique, economically viable opportunity to help address the urgent need for widespread complementary and backup PNT services. The proposed rebanding and related rule modifications would establish 15 MHz of low-band spectrum to support terrestrial 3G PNT and 5G broadband.

Mariam Sorond: Eliminating potential revenue for other P&C offering and two it is difficult to drive adoption of P&C specific protocols into consumer devices.

Mariam Sorond: Limiting subscribers.

Mariam Sorond: By Reconfiguring the bad we see a direct pass we widescale terrestrial three D. P&C network leveraging the lower 900 megahertz band in terrestrial five gene that will create a unique economically viable opportunity to help address the urgent need for widespread.

Mariam Sorond: Complementary and backup Pn T services.

Mariam Sorond: The proposed rebuilding and related room modification, we'd established 15 megahertz of low band spectrum to support terrestrial review PMT and <unk> broadband.

Mariam Sorond: This would include the eight megahertz of spectrum Nextnav already owns, plus the additional 4 MHz Nextnav is seeking to acquire, pending SQC approval, and 3 MHz of largely followed spectrum, much of which is in SQC inventory. Nextnav's next-gen technology will be a 5G-based solution, so it is more easily integrated into the existing ecosystem for both deployment and adoption. The revised rule would enable Nextnav's next-gen terrestrial 3D P&T network to use 5G technology to extend P&T reach in areas where GPS is limited and supplement the country's 5G broadband capacity.

Mariam Sorond: This would include the eight megahertz of spectrum in the next not already own.

Mariam Sorond: Additional four megahertz <unk> is seeking to acquire pending FCC approval.

Mariam Sorond: And three megahertz of largely followed spectrum much of which is an FCC inventory.

Mariam Sorond: Next not Nextgen technology will be a five G based solution. So it is more easily integrated into the existing ecosystem for both deployment and adoption.

Mariam Sorond: The revised rules would enable next snobs nextgen thresholds <unk> network to use <unk> technology to <unk>.

Mariam Sorond: Piceance to reach in areas, where GPS is limited.

Mariam Sorond: To supplement the country's <unk> broadband capacity.

Mariam Sorond: To advance this, Nextnav expects to partner with network operators or others interested in commercial deployment in the band for 5G. Leveraging a 10 MHz downlink spectrum block and 5 MHz uplink, Nextnav can reliably supply integrated, highly accurate, and consistent 3D positioning indoors and outdoors along with precision timing.

Mariam Sorond: To advance the next now expects to partner with network operators or other interested in commercial deployment in the band for <unk> lever.

Mariam Sorond: Leveraging of 10 megahertz downlink spectrum block and five levels upland <unk> can reliably supply integrated highly accurate and consistent deep positioning indoors and outdoors along with precision timing.

Mariam Sorond: More importantly, our next-gen PNT solutions will only use a small portion of the capacity, allowing network providers to use the vast majority for broadband. We are already in active discussions with various potential partners and are also focused on ensuring that incumbent operations are appropriately protected. Overall, we believe this unique path forward addresses the coverage, cost, and user device issues that have previously prevented broad terrestrial 3D PNT adoption. This is a full commercial solution with no need for government funding or legislation.

Mariam Sorond: More importantly, our Nextgen PNT solutions will only use a small portion of the capacity, allowing in network providers to use the vast majority for broadband.

Mariam Sorond: We're already in active discussions with various potential partners and are also focused on ensuring that incumbent operations are appropriately protected.

Mariam Sorond: Overall, we believe this unique path forward addresses the coverage cost and user device issues that had previously prevented fraud terrestrial three D PNT adoption.

Mariam Sorond: This is a full commercial solution with no need for government funding or legislation an attractive proposition.

Mariam Sorond: An attractive proposition. With P&T Resiliency already receiving broad bipartisan support, we anticipate continued support from both sides of the aisle as we move forward. In terms of NextNav, on April 24th, the Federal Communications Commission included in its weekly public notice of agency actions on wireless license transactions the application to assign the APOC licenses that NextNav agreed to acquire from Telesort. This is specific to the transaction we announced on March 11th, 2024.

Mariam Sorond: With P&C resiliency already receiving broad bipartisan support we anticipate continued support from both sides of the aisle as we move forward.

Mariam Sorond: In terms of next steps on April 24th the Federal Communications Commission, including this weekly public notice the agency actions on the wireless license transactions the application to assign to a block licenses that <unk> agreed to acquire from <unk>.

Mariam Sorond: This is specific to this transaction, we announced on March 11th 2024.

Mariam Sorond: Approval of the license application is also contingent on the FCC grant of a waiver request, and that request has not yet been placed on public notice. The April 24th public notice is a routine FCC action that does not indicate how the Commission will act. Instead, it initiates a 14-day period during which parties may file petitions on the assignment application. The Commission then has seven additional days in which it must either grant, deny, or defer action on the application.

Mariam Sorond: Approval of the license applications is also contingent on FCC grant of a waiver request.

Mariam Sorond: And that request has not yet been placed on public notice.

Mariam Sorond: April 24th public notice is a routine FCC action that does not indicate how the commission will act and stuck it initiates a 14 day period during which parties may file a petition on the assignment applications.

Mariam Sorond: The Commission then ha seven additional days in which it must either Greg deny or defer action on the applications.

Mariam Sorond: Ultimately, the exact timing of next steps is in the hands of the FCC. However, we believe we have presented a petition that explains the urgency to the FCC and provides an economically viable solution to an issue of great importance. As we move forward, we will continue taking this process one step at a time. We believe this is a unique vision that will provide an innovative spectrum solution in the lower 900-megahertz band.

Mariam Sorond: Ultimately the exact timing of next steps are in the hands of the FCC. However, we believe we have presented a petition that explains the urgency to the FCC and provides an economically viable solution to an issue of great importance.

Mariam Sorond: As we move forward, we will continue taking this process one step at a time.

Mariam Sorond: We believe this is a unique vision that will provide an innovative spectrum solution and little over 900 megahertz band.

Mariam Sorond: We look forward to continuing to provide an update on our progress as we move forward with the FPC and beyond. Finally, before I turn things over to Chris... I want to highlight a new addition to the NextNav team. Yesterday, we announced that Dr. Sanyo Geeta Shamsundar is joining NextNav as Chief Operating Officer, effective May 9. Sanya Gita was recently the head of Edge Network Infrastructure at Google, and prior to that, she spent several years at Verizon in various roles, including serving as the VP of Product Strategy and Operations, where she led early 5G network technology development and trials.

Mariam Sorond: We look forward to continuing to provide an update on our progress as we move forward with the FCC and beyond.

Mariam Sorond: Finally, before I turn things over to Chris.

Mariam Sorond: I want to highlight a new addition to the next RFP yesterday, we announced the Doctor send you details Johnson Dar is joining <unk> as chief operating officer effective may nine.

Mariam Sorond: <unk> was recently the head of edge network infrastructure at Google and prior to that spent several years at Verizon in various roles, including serving as the VP of product strategy and operations, where she led early <unk> network technology development and trials.

Mariam Sorond: We are thrilled to have someone of San Ysidro's caliber joining the team, and I look forward to her contributions as we continue to advance our strategic vision. With that, I will turn things over to Chris for a review of our financials. Chris? Thanks, Mariam, and good luck.

Mariam Sorond: We are thrilled to have someone of sandy Gila caliber joining the team and I look forward to her contributions as we continue to advance our strategic vision.

Chris: With that out of it.

Mariam Sorond: Turn things over to Chris for a review of our financials Chris.

Chris: Thanks, Mariam, and good afternoon, everyone. First quarter revenue was $1 million, a $200,000 increase compared to $830,000 in the prior year period. The year over year increase is driven by an increase in recurring service revenue from technology and services contracts with commercial customers. Operating expenses for the quarter were $17.2 million, up from $14.8 million in the same period last year. Operating expenses included $1.3 million in depreciation and amortization and $4.2 million in equity compensation expense, compared to $1.1 million in depreciation and amortization and $3.9 million in equity compensation in the first quarter of 2023.

Chris: Thanks, Darrin and good afternoon, everyone.

Chris: First quarter revenue was $1 million to.

Chris: $200000 increase compared to $830000 in the prior year period.

Chris: Year over year increase was driven by an increase in recurring service revenue from technology and services contracts with commercial customers.

Chris: Operating expenses for the quarter were $17 2 million up from $14 8 million in the same period last year operating expenses included $1 3 million and depreciation and amortization and $4 2 million in equity compensation expense compared to $1 1 million and depreciation and amortization.

Chris: $3 9 million and equity compensation in the first quarter of 2023.

Chris: The net loss for the first quarter of 2024 was $31.6 million, which included a $13.2 million loss associated with the change in the fair value of warrants, compared to a loss of $16.3 million in the first quarter of 2023, which included a $2.8 million loss on changes in the fair value of warrants. From a balance sheet perspective, we finished the quarter with $79.2 million in cash, cash equivalent to short-term investments. Our balance sheet showed $49.9 million in debt, net of unamortized discount, attributed to transaction costs and the issuance of warrants, with a gross value of $70 million.

Chris: Net loss for the first quarter of 2024 was $31 6 million, which included a $13 2 million loss associated with the change in the fair value of warrants compared to a loss of $16 3 million in the first quarter of 2023, which included a $2 8 million loss unchanged and a fair value of warrants.

Chris: On a balance sheet perspective, we finished the quarter with $79 2 million in cash cash equivalents and short term investments our balance sheet showed $49 9 million of debt net of unamortized discount attributed to transaction costs and the issuance of warrants with a gross value of $70 million.

Chris: After the close of the quarter, following the approval of the 8-block transaction by the Alameda Court on March 28, and per the terms of the Asset Purchase Agreement, we made the $2.5 million cash payment under the contract. And as a reminder, any future payments under this agreement will be satisfied by shares of our common stock, with the number of shares based on the price of our stock at the time of the payment.

Chris: After the close of the quarter following the approval of VA block transaction by the Alameda Court on March 28 and <unk>.

Chris: Under the terms of the asset purchase agreement, we made the $2 $5 million cash payments under the contract.

Chris: As a reminder, any future payments under this agreement will be satisfied with shares of our common stock with the number of shares based on the price of our stock at the time of the pit.

Chris: Finally, in the past, I've mentioned that the warrants we issued in conjunction with our debt financing may be a source of additional liquidity. I'm pleased to report that since the end of the first quarter and as of May 3rd, $7.7 million of those warrants were exercised for an aggregate of $16.6 million in cash. With that, I'll turn the call over to the operator for questions. Operator?

Chris: Finally in the past I've mentioned that the warrants we issued in conjunction with our debt financing may be a source of additional liquidity I am pleased to report that since the end of the first quarter and as of May 37, 7 million. If those warrants were exercised for an aggregate of $16 $6 million of cash.

Chris: I will turn the call over to the operator for questions operator.

Operator: At this time, I would like to remind everyone, in order to ask a question, press star then the number one on your telephone keypad. Your first question comes from the line of Griffin Boss with B. Riley Securities. Please go ahead.

Speaker Change: At this time I would like to remind everyone in order to ask a question.

Operator: Press Star then the number one on your telephone keypad.

Griffin Boss: Your first question comes from the line of Christian Buss with B Riley's Securities.

Operator: Please go ahead.

Griffin Boss: Hi, good afternoon. Thanks for taking my questions. First off, there was a time not too long ago when the CapEx expectations for Nextnav were a lot higher than they are now. When you were contemplating deploying TerraPoint and Pinnacle, can you give us a better sense of what your expectations are today for the CapEx requirements of the business going forward, given this new vision you're beginning to lay out?

Griffin Boss: Hi, good afternoon, thanks for taking my questions. So.

Griffin Boss: First off there.

Griffin Boss: There there was a time not too long ago, where.

Griffin Boss: The capex expectations for next NAV or are a lot higher than they are now.

Griffin Boss: When you were contemplating deploying Terra point in Pinnacle can you give us a better sense of what your expectations are today for the Capex requirements of the business going forward given this new division, you're beginning to lay out.

Griffin Boss: Yes.

Mariam Sorond: Thanks, Griffin, for the question. Currently, our path is to partner, and we believe that what we're presenting to the FCC, and upon their approval, will actually unleash 15 megahertz of broadband spectrum for 5G build, and we believe that this is attractive to potential partners who can incorporate the spectrum into their network. So, yes, you are correct that their CapEx is very different from what we have previously mentioned about a standalone PNT network, which we have highlighted as not feasible earlier in our comments.

Griffin Boss: Thanks Griffin for the question.

Mariam Sorond: Currently our path is to partner and we believe that what we're presenting to the FCC and our partners.

Mariam Sorond: Books will actually unleash 15 megahertz broadband spectrum for <unk> and we believe that this is attractive to potential partners who can.

Mariam Sorond: Incorporate the spectrum into their networks.

Mariam Sorond: So yes, you are correct that the Capex is very different than what we have previously mentioned about our Standalone Pn T network, which we have highlighted.

Mariam Sorond: That is just not feasible earlier in our comments.

Mariam Sorond: Okay. All right. Thanks for the color. And then just, yeah, on the FCC, you received court approval. That's obviously great to see. Did I hear you correctly that April 24th kicked off that 14-day period for comment on the assignment of the licenses, which would imply that ended today and then opens up the seven additional days?

Speaker Change: Okay, alright, thanks for thanks for the color and then just yeah on the FCC.

Mariam Sorond: You received court approval, that's obviously great to see.

Mariam Sorond: Did I hear you correctly that you said on April 24th that kicked off that 14 day period for for comments on the on the assignment of the licenses which would imply.

Mariam Sorond: That ended today, and then opens up the seven additional days.

Mariam Sorond: That is correct. Today is the deadline for that 14-day comment period, and the parties could file comments or positions in response to that by tonight.

Mariam Sorond: That is correct today as the deadline for the 14 day comment period.

Mariam Sorond: And the parties could file comments our positions in response to that.

Mariam Sorond: And deadline would be Tonight.

Mariam Sorond: Okay, understood. And so the FCC would have seven additional days to make a decision. Is that correct?

Mariam Sorond: Okay, I understood and so the FTC would have seven additional days to make a decision that is that correct.

Mariam Sorond: That is correct. They have these seven days in which grants deny or defer action on the application.

Mariam Sorond: That is correct. So they can they have these seven days and which grant deny or defer action on the application.

Mariam Sorond: Okay, all right. Great. Understandable. And then, Chris, I just, I missed it when you were just.

Mariam Sorond: Okay, Alright, great understood and then Chris I, just I missed it when you were just talking about that that the initial two and a half million dollars payment was that made.

Mariam Sorond: Subsequent to the end of the first quarter.

Mariam Sorond: Correct. Yeah.

Mariam Sorond: Correct, Yeah, the terms of the asset purchase agreement or that payment to.

Mariam Sorond: Can be made within 30 days.

Mariam Sorond: Court approval, which is on March 28, and so we did we made that payment.

Mariam Sorond: With the terms of the contract.

Mariam Sorond: Okay, got it, understood. And then the next milestone on that, I know it's the earlier of either the FCC approval of the transfer or November, so I guess, theoretically, my question is that next $7.5 million payment in stock could either come this quarter if the FCC approves it or next quarter or, I guess, fourth quarter.

Mariam Sorond: Okay got it understood and then the next milestone on that I know, it's a it's the earlier of either the FCC approval of the transfer or November. So I guess theoretically yes. My question is that next seven and a half million dollars payment in stock could either come this quarter, if the FCC approves it.

Mariam Sorond: It or <unk>.

Mariam Sorond: Next quarter.

Mariam Sorond: Fourth quarter.

Mariam Sorond: That's correct. It would be the earlier of November 15th or FCC action. Okay.

Mariam Sorond: That's correct, it's the it it'll be the earlier of November 15th or FCC action.

Mariam Sorond: Okay, understood. Great. Thanks for taking my questions. I appreciate it.

Speaker Change: Okay understood great. Thanks for taking my questions I appreciate it.

Mariam Sorond: Okay.

Operator: Your next question comes from the line of Jaime Perez with RF Lafferty. Please go ahead.

Mariam Sorond: Our next question comes from the line of Jami Perez with RF Lafferty.

Jaime Perez: Please go ahead.

Jaime Perez: Thanks for taking my call. And good day, everybody.

Jaime Perez: Alright, thanks for taking my call.

Jaime Perez: Good day everybody.

Jaime Perez: $1 million of revenue I know, it's not terrible.

Jaime Perez: However, a point, but I mean is.

Jaime Perez: Is it all pinnacle.

Mariam Sorond: The one million dollars of revenue. I know it's not a terrible point, but I mean, is it all pinnacle? And, you know, I know it seems like this change of strategy going away from the commercial initiative when it first came out. Could you give a little bit more color on any further commercial initiatives you have?

Jaime Perez: I know it seems like this change of strategy going away from the commercial initiatives first came out of spec could you give a little bit more color on.

Mariam Sorond: Any further our commercial initiatives you have.

Mariam Sorond: Yeah.

Mariam Sorond: So, basically, we have only recently filed with the FCC, right, and we are taking this process one step at a time, and as we move through the process, we'll keep the market updated on the timeline and the key milestones or any revenues associated with it. It would be premature to talk about it right now. We're focusing on the plan, and we're looking at a situation where the FCC has an opportunity to deliver an innovative spectrum solution in the lower 900-megahertz range, right, so we're focused on the plan. We're very optimistic about our goals and path forward, and we will take this a step at a time. All right.

Mariam Sorond: So basically we have only recently filed with the US right and are taking this process one step at a time and as we move through the process. We will keep the market update us on the timeline and the key milestones or any revenues associated with it it would be premature.

Mariam Sorond: Talk about it right now we're focusing on the plan and and we're looking at a situation where the FCC has an opportunity to deliver.

Mariam Sorond: Many innovative spectrum solution and the Aurora 900 megahertz band right.

Mariam Sorond: So we're focused on the plan and we're very optimistic around our goals on the path forward.

Mariam Sorond: We will take this a step at a time.

Mariam Sorond: Alright.

Mariam Sorond: Let me see, my next question: any update on the executive order that's sort of pending?

Speaker Change: And my next question any update on the executive order.

Speaker Change: That's sort of pending.

Mariam Sorond: I think there was, there's been a lot of action in the federal government, including the executive order, that are all demonstrating the need for a backup and complement to GPS. Whether that's through the executive order talking about federal agencies having a solution, or whether it's us as a country having a solution. So all of these are good examples and good initiatives by the government that demonstrate the need. And that's why we have proposed this plan, which actually provides a really solid solution that doesn't require government funding. It doesn't require legislation to solve or address the problem on the country's principal PNT system.

Speaker Change: I think.

Mariam Sorond: There's been a lot of action in the federal government, including the executive order that are all demonstrating the need for it.

Mariam Sorond: A couple of components to GPS, whether that's through the executive order with the with talking about the federal agencies, having a solution or whether it's us as a country to have a solution. So all of these are good examples and good initiatives by the government that demonstrates the need and that's why we have proposed.

Mariam Sorond: This plan, which actually puts a really solid solution that doesn't require government funding it doesn't require legislation to solve.

Mariam Sorond: And address the problem on the country's principal Pn T system.

Jaime Perez: Okay, that's all the questions I have. Thanks.

Speaker Change: Alright, Okay. That's all the questions I have.

Mariam Sorond: Sure.

Jaime Perez: Yeah.

Operator: Your next question comes from the line of Rosemary Cisson with Odeon Capital. Please go ahead.

Jaime Perez: Your next question comes from the line of Rosemarie.

Operator: Hassan.

Rosemary Cisson: With Odeon capital.

Rosemary Cisson: Please go ahead.

Rosemary Cisson: Thank you, and thanks for taking the questions. I had a question on liquidity and kind of how you see that working out over the course of the next year or so. Your cash burn during the quarter was about $8.5 to $9 million, and then you spent another $2.5 million in cash after the end of the quarter. So just kind of how do you look at that? Is that the right burn rate to think about on a quarterly basis going forward in the next year?

Rosemary Cisson: Thank you and thanks for taking the questions I had a question on on liquidity and how you.

Rosemary Cisson: Kind of how you see that working out over the course of the next year or so your cash burn during the quarter was about eight.

Rosemary Cisson: Eight $5 million to $9 million.

Rosemary Cisson: And then you spent another $2 $5 million in cash.

Rosemary Cisson: After the end of the quarter. So just kind of how do you look at that is that is that the burn rate to think about on a quarterly basis going forward.

Rosemary Cisson: In the near term.

Brett: Hi, this is Brett. I'll go ahead and address that question. Historically, we haven't provided forward-looking guidance. However, I can offer a few remarks about, number one, the strength of our balance sheet. As we've seen, we've attempted to structure transactions that have a favorable liquidity profile for us. For example, our A Block transaction is intended to be paid substantially in stock. We've made the cash payment associated with that. And with respect to our operating expenses, we're constantly looking at the ability to reduce those expenses in line with the achievement of our objectives.

Rosemary Cisson: Chris Hi, This is me break up.

Speaker Change: Yeah I'll go ahead and address that question.

Brett: Historically, we haven't provided forward looking guidance.

Brett: However, I can offer a few remarks about number one the strength of our balance sheet.

Brett: As we've seen we've attempted to structure transactions that have a favorable liquidity profile for us for example, or a block transaction.

Brett: It is intended to be paid substantially in <unk>.

Brett: Stock we've made that we've made the cash payment associated with that and with respect to our operating expenses were constantly looking at the ability to refine those expenses in line with the achievement of our objectives.

Brett: I would suggest, you know, I think if you look at last year in terms of what our OPEX and kind of cash burn looked like for that year, I think that's a reasonable place to start. But in terms of forward guidance on expenses, again, that's something that we haven't historically provided.

Speaker Change: I would guide you.

Brett: I think if you look at if you look at last year in terms of what our Opex and you kind of cash burn look like for that year, I think thats a reasonable place to start.

Brett: But in terms of forward guidance on expenses again, that's something that.

Brett: That's something that we haven't historically provided.

Rosemary Cisson: Okay, all right, thank you very much.

Speaker Change: Okay, Alright, thank you very much.

Rosemary Cisson: Yeah.

Operator: I will now turn the call back over to CEO.

Rosemary Cisson: I will now turn the call back over to CEO Mark.

CEO: <unk> for closing remarks. Please go ahead.

Mariam Sorond: Thank you. Before we close the call, I want to add one important point. We recently received inbound questions from investors regarding our willingness to sell specific company assets. I want to take a moment to directly respond to those inquiries. Specifically, we currently have a strategy in place that utilizes our spectrum for both PNT and broadband, which we believe creates tremendous value for our customers and, ultimately, our shareholders. As the CEO of Nextnav, and in coordination with our board, we have a fiduciary duty to consider any offers that are presented, and we will continue to do so.

CEO: Thank you before we close the call I want to add one important point.

Mariam Sorond: We recently received inbound questions from investors regarding our willingness to sell specific company assets.

Mariam Sorond: I want to take a moment to directly respond to those inquiries here.

Mariam Sorond: Typically we currently have a strategy in place that utilizes our spectrum for both PMT and broadband which.

Mariam Sorond: Which we believe creates tremendous value for our customers and ultimately our shareholders.

Mariam Sorond: As the CEO of <unk> and in coordination with our board.

Mariam Sorond: Have a fiduciary duty to consider any offers that are presented and we will continue to do so.

Mariam Sorond: Having said that, I want to re-emphasize that we're very pleased with our progress to date. The company is on a strong trajectory, and we look forward to working with the FCC and advancing our vision for an innovative spectrum solution in the lower 900 megahertz band to provide a complement and backup to GPS as well as 5G broadband spectrum availability. We will continue to keep you posted and updated on our progress, and I look forward to engaging with the financial community on this. And I want to also thank you all for joining us today. Everyone has a great afternoon.

Mariam Sorond: Having said that I want to reemphasize that we're very pleased with our progress to date. The company is on a strong trajectory and we look forward to working with the FCC and advancing our vision for an innovative spectrum solution in the low 900 megahertz band to provide a complement and backup to GTS as well as <unk> brought.

Mariam Sorond: And spectrum available.

Mariam Sorond: We will continue to Q2 posted <unk>.

Mariam Sorond: David on our progress and I look forward to engaging with the financial community on this.

Mariam Sorond: And I want to also thank you all for joining us today and everyone have a great afternoon.

Mariam Sorond: Okay.

Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining, and you may now disconnect.

Speaker Change: Ladies and gentlemen that concludes today's call. Thank you all for joining you may now disconnect.

Operator: Yeah.

Operator: Okay.

Operator: Yeah.

Operator: Okay.