UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
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1 |
Item 2.02.Results of Operations and Financial Condition.
On March 22, 2023, NextNav Inc. issued a press release announcing its financial results for the three and twelve months ended December 31, 2022. A full text of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
This information, including the Exhibit attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, unless the Company specifically states that the information is to be considered “filed” under the Exchange Act or incorporates it by reference into a filing under the Securities Act of 1933, as amended.
Item 9.01.Financial Statements and Exhibits.
(d) Exhibits.
Exhibit | Description | |
99.1 | Press release dated March 22, 2023 | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
2 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: March 22, 2023
NEXTNAV INC. | |||
By: | /s/ Christian D. Gates | ||
Name: | Christian D. Gates | ||
Title: | Chief Financial Officer |
3 |
Exhibit 99.1
NextNav Inc. Reports Fourth Quarter and Full Year 2022 Results
Launches E911 Services on Verizon in FY 2022
Signs New Device Agreements with Leading Providers, Including Sonim Technologies
Expands Relationship with NASA; Delivering PNT Services for Agency’s Urban Drone Program
McLean, VA. March 22, 2023 – NextNav Inc. (NASDAQ: NN) (“NextNav” or the “Company”), a leader in next generation GPS and 3D geolocation, today reported financial results for NextNav’s fourth quarter and full year ended December 31, 2022.
Ganesh Pattabiraman, NextNav Co-founder and CEO, stated, “We made significant progress in FY 2022 executing against our key strategic priorities, which are focused on: 1) being the leader in resilient Position, Navigation and Timing (“PNT”); 2) leveraging our Nestwave acquisition to significantly enhance the capabilities of our spectrum, and 3) expanding our global reach. We successfully completed the acquisition of Nestwave, now known as NextNav France, in October 2022 and expect to begin testing initial implementations of the combined technologies in the coming months. We continue to advance our work in the public safety sector with the launch of E911 services on Verizon, the first tier one carrier to launch an E911 device with our Pinnacle technology.
We also expanded our relationship with NASA, having recently been selected to deliver PNT services for its urban drone program at the Ames Research Center in Mountain View, California, building on their existing deployment at the Langley Research Center in Hampton, Virginia. As part of the new agreement, NASA is utilizing TerraPoiNT beacons to capture in-flight data on drone navigation, detection, and collision avoidance in support of a stronger understanding of PNT in GPS-denied environments. Initial tests in the Bay Area will leverage TerraPoiNT’s existing network in the region, allowing for Beyond Visual Line of Sight testing for drones operating outside the visible range of a pilot.
Finally, we continue to expand our global reach with the commercial launch of our Pinnacle service with MetCom in Tokyo, Japan, as they continue the national rollout of Pinnacle. Following the launch, we continue to field significant interest from additional countries and look forward to sharing updates on our progress in the coming months.
We are excited by our progress and believe we are well positioned to continue to pursue initiatives that will advance our leadership position in PNT resilience. We look forward to the opportunities ahead and driving value for our shareholders.”
Recent Operational Highlights:
Three and Twelve Months Ended December 31, 2022 Financial Highlights
Conference Call Information
NextNav will host a conference call for analysts and investors at 5:00 PM ET on March 22, 2023, to discuss its financial results for the fourth quarter and Full Year 2022 and business outlook. To access the call, please register by visiting the following website: https://conferencingportals.com/event/jDTlaQAq
Upon registering, each participant will be provided with call details and a registrant ID.
NextNav is also providing an investor relations presentation with information on its business and operations, which is available in the investor relations section of the NextNav website at https://ir.nextnav.com.
A replay of the call can also be accessed via phone through March 29, 2023, 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 GPS, enabling a whole new ecosystem of applications and services that rely upon vertical location and resilient geolocation technology. The company's Pinnacle network delivers highly accurate vertical positioning to transform location services, reflecting the 3D world around us and supporting innovative, new capabilities. NextNav's TerraPoiNT network delivers accurate, reliable, and resilient 3D positioning, navigation and timing (PNT) services to support critical infrastructure and other GPS-reliant systems in the absence or failure of GPS.
For more information, please visit https://nextnav.com/ or follow NextNav on Twitter or LinkedIn.
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 statements about NextNav’s position to drive growth in its 3D geolocation business and expansion of its next generation GPS platform, the business plans, objectives, expectations and intentions of NextNav, NextNav’s partnerships and the potential success thereof and NextNav’s estimated and future business strategies, competitive position, industry environment and potential growth opportunities. These statements are based on 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 ability of NextNav to continue to gain traction in key markets and with notable platforms and partners, both within the U.S. and internationally; (2) the ability of NextNav to grow and manage growth profitably, maintain relationships with partners, customers and suppliers, including with respect to NextNav’s Pinnacle 911 solution and its TerraPoiNT network, and the ability to retain its management and key employees; (3) the ability of NextNav to maintain balance sheet flexibility and generate and effectively deploy capital in line with its business strategies; (4) the possibility that NextNav may be adversely affected by other economic, business and/or competitive factors (including the impacts of the ongoing COVID-19 coronavirus pandemic); and (5) other risks and uncertainties indicated from time to time in other documents filed with the Securities and Exchange Commission by NextNav. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. 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.
Source: NN-FIN
Contacts
Erica Bartsch
Sloane & Company
ebartsch@sloanepr.com
NextNav Inc.
Consolidated Balance Sheets
(Unaudited)
|
|
December 31, |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
|
|
(in thousands) |
|
|||||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
47,230 |
|
|
$ |
100,076 |
|
Short Term Investment |
|
|
8,216 |
|
|
|
— |
|
Accounts Receivable |
|
|
2,168 |
|
|
|
1,740 |
|
Other current assets |
|
|
3,576 |
|
|
|
4,516 |
|
Total current assets |
|
$ |
61,190 |
|
|
$ |
106,332 |
|
Network under construction |
|
|
3,574 |
|
|
|
494 |
|
Property and equipment, net of accumulated depreciation of $5,971 and $2,714 at December 31, 2022 and 2021, respectively |
|
|
19,180 |
|
|
|
21,757 |
|
Operating lease right-of-use assets |
|
|
10,143 |
|
|
|
— |
|
Goodwill |
|
|
17,493 |
|
|
|
— |
|
Intangible assets, net |
|
|
10,397 |
|
|
|
4,095 |
|
Other assets |
|
|
1,811 |
|
|
|
4,145 |
|
Total assets |
|
$ |
123,788 |
|
|
$ |
136,823 |
|
|
|
|
|
|
|
|
|
|
Liabilities, preferred interests, and stockholders’ equity (deficit) |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
1,019 |
|
|
$ |
448 |
|
Accrued expenses and other current liabilities |
|
|
5,241 |
|
|
|
4,600 |
|
Short term lease liabilities - operating |
|
|
2,532 |
|
|
|
— |
|
Deferred revenue |
|
|
95 |
|
|
|
1,632 |
|
Total current liabilities |
|
$ |
8,887 |
|
|
$ |
6,680 |
|
|
|
|
|
|
|
|
|
|
Warrants |
|
|
4,200 |
|
|
|
28,875 |
|
Long term lease liabilities - Operating |
|
|
5,290 |
|
|
|
— |
|
Other long-term liabilities |
|
|
1,547 |
|
|
|
1,311 |
|
Total liabilities |
|
$ |
19,924 |
|
|
$ |
36,866 |
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity (deficit): |
|
|
|
|
|
|
|
|
Common Stock, authorized 500,000,000 shares; 106,418,442 and 96,546,611 shares issued and 106,417,265 and 96,546,611 shares outstanding at December 31, 2022 and 2021, respectively |
|
$ |
12 |
|
|
$ |
11 |
|
Additional paid-in capital |
|
|
787,130 |
|
|
|
747,928 |
|
Accumulated other comprehensive income (loss) |
|
|
1,371 |
|
|
|
(121 |
) |
Accumulated deficit |
|
|
(688,492 |
) |
|
|
(647,861 |
) |
Common stock in treasury, at cost, 1,177 and zero shares at December 31, 2022 and December 31, 2021, respectively |
|
|
(4 |
) |
|
|
— |
|
Total stockholders’ equity (deficit) |
|
$ |
100,017 |
|
|
$ |
99,957 |
|
Non-controlling interests |
|
|
3,847 |
|
|
|
— |
|
Total liabilities, preferred interests, stockholders’ equity (deficit) and non-controlling interests |
|
$ |
123,788 |
|
|
$ |
136,823 |
|
NextNav INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(UNAUDITED)
|
|
Year Ended December 31, |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
|
|
(in thousands, except per share amounts) |
|
|||||
Revenue |
|
$ |
3,926 |
|
|
$ |
763 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
Cost of goods sold (exclusive of depreciation and amortization) |
|
|
11,806 |
|
|
|
18,390 |
|
Research and development |
|
|
17,059 |
|
|
|
9,465 |
|
Selling, general and administrative |
|
|
36,926 |
|
|
|
13,555 |
|
Depreciation and amortization |
|
|
3,671 |
|
|
|
1,782 |
|
Total operating expenses |
|
|
69,462 |
|
|
|
43,192 |
|
Operating loss |
|
|
(65,536 |
) |
|
|
(42,429 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
Interest income (expense) |
|
|
901 |
|
|
|
(17,842 |
) |
Change in fair value of warrants |
|
|
24,675 |
|
|
|
(84,317 |
) |
Other loss, net |
|
|
(184 |
) |
|
|
(26 |
) |
Loss before income taxes |
|
|
(40,144 |
) |
|
|
(144,614 |
) |
Benefit (Provision) for income taxes |
|
|
28 |
|
|
|
(52 |
) |
Net loss |
|
$ |
(40,116 |
) |
|
$ |
(144,666 |
) |
Foreign currency translation adjustment |
|
|
1,492 |
|
|
|
25 |
|
Comprehensive loss |
|
$ |
(38,624 |
) |
|
$ |
(144,641 |
) |
Net loss |
|
$ |
(40,116 |
) |
|
$ |
(144,666 |
) |
Change in redemption value of preferred interests |
|
|
— |
|
|
|
(13,831 |
) |
Net loss attributable to common stockholders |
|
$ |
(40,116 |
) |
|
$ |
(158,497 |
) |
Weighted average of shares outstanding – basic and diluted |
|
|
101,029 |
|
|
|
23,561 |
|
Net loss attributable to common stockholder per share – basic and diluted |
|
$ |
(0.40 |
) |
|
$ |
(6.73 |
) |
NextNav INC.
Consolidated Statements of Cash Flows
(UNAUDITED)
|
|
Year Ended December 31, |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
|
|
(in thousands) |
|
|||||
Operating activities |
|
|
|
|
|
|
||
Net loss |
|
$ |
(40,116 |
) |
|
$ |
(144,666 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
3,671 |
|
|
|
1,782 |
|
Equity-based compensation |
|
|
26,501 |
|
|
|
1,675 |
|
Change in fair value of warranty liability |
|
|
(24,675 |
) |
|
|
84,317 |
|
Realized and unrealized gain on marketable securities |
|
|
(72 |
) |
|
|
— |
|
Fixed asset write-off |
|
|
— |
|
|
|
96 |
|
Issuance of warrants for rent expense |
|
|
— |
|
|
|
9,033 |
|
Equity method investment income (loss) |
|
|
230 |
|
|
|
— |
|
Asset retirement obligation accretion |
|
|
56 |
|
|
|
236 |
|
Amortization of debt issuance costs and discount |
|
|
— |
|
|
|
9,257 |
|
Accrued payment in kind (“PIK”) interest on debt |
|
|
— |
|
|
|
4,714 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivables |
|
|
(428 |
) |
|
|
(1,663 |
) |
Other current assets |
|
|
593 |
|
|
|
(3,634 |
) |
Other assets |
|
|
161 |
|
|
|
(879 |
) |
Accounts payable |
|
|
486 |
|
|
|
(7,020 |
) |
Deferred revenue |
|
|
(1,537 |
) |
|
|
1,632 |
|
Accrued expenses and other liabilities |
|
|
(2,501 |
) |
|
|
(2,812 |
) |
Operating lease right-of-use assets and liabilities |
|
|
536 |
|
|
|
— |
|
Net cash used in operating activities |
|
$ |
(37,095) |
|
|
$ |
(47,932 |
) |
|
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
|
|
Capitalization of costs and purchases of network assets, property, and equipment |
|
|
(2,964 |
) |
|
|
(1,022 |
) |
Purchase of equity method investments |
|
|
(1,125 |
) |
|
|
— |
|
Purchase of marketable securities |
|
|
(13,644 |
) |
|
|
— |
|
Sale and maturity of marketable securities |
|
|
5,500 |
|
|
|
— |
|
Purchase of business, net of cash acquired |
|
|
(2,890 |
) |
|
|
— |
|
Purchase of internal use software |
|
|
(613 |
) |
|
|
(260 |
) |
Net cash used in investing activities |
|
$ |
(15,736 |
) |
|
$ |
(1,282 |
) |
|
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
|
|
Proceeds from debt |
|
|
— |
|
|
|
24,638 |
|
Payments towards debt |
|
|
(17 |
) |
|
|
(96,871 |
) |
Proceeds from exercise of stock option |
|
|
57 |
|
|
|
— |
|
Proceeds from issuance of common stock |
|
|
7 |
|
|
|
2 |
|
Net cash contribution from Business Combination and PIPE financing, net of transaction and issuance costs |
|
|
— |
|
|
|
207,872 |
|
Purchase of common stocks (withholding taxes) |
|
|
(4 |
) |
|
|
— |
|
Net cash provided by financing activities |
|
$ |
43 |
|
|
$ |
135,641 |
|
Effect of exchange rates on cash and cash equivalents |
|
|
(58 |
) |
|
|
(20 |
) |
Net increase (decrease) in cash and cash equivalents |
|
|
(52,846 |
) |
|
|
86,407 |
|
Cash and cash equivalents at beginning of period |
|
|
100,076 |
|
|
|
13,669 |
|
Cash and cash equivalents at end of period |
|
$ |
47,230 |
|
|
$ |
100,076 |
|
6 |
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