AST SpaceMobile, a pioneering company aiming to create the first-ever space-based cellular broadband network accessible directly by standard mobile phones, is making significant strides in its mission. Today, the company announced that it will be holding a quarterly business update conference call on August 14th at 5:00 p.m. (Eastern Time). The call will be open to questions from both retail and institutional shareholders, and the management will respond to selected queries about AST SpaceMobile's business and financial results.
To encourage participation and engagement, investors have been invited to submit their questions to investors@ast-science.com. By doing so, they will also be added to AST SpaceMobile's Investor Relations mailing list.
Those interested can access the conference call via a live webcast on the Events page of AST SpaceMobile's Investor Relations website, https://ast-science.com/investors/. Furthermore, for those who miss the live session, an archive of the webcast will be available shortly after the call.
In preparation for the conference call, AST SpaceMobile has provided preliminary estimated financial results for the second quarter that ended on June 30, 2023. As of the end of the quarter, the company's cash and cash equivalents, along with restricted cash, stood at approximately $191.5 million.
Regarding the financial results, AST SpaceMobile expects its total operating expenses for the second quarter to be between $57.1 million and $59.1 million. This includes an estimated $19.1 to $20.1 million for depreciation and amortization, as well as stock-based compensation expense.
Furthermore, the company reported that as of June 30, 2023, it has incurred around $156.9 million of capitalized property and equipment costs. This figure encompasses various expenses, such as those incurred for the assembly, test, launch, and deployment of the BlueWalker 3 ("BW3") satellite, which began depreciating in April 2023. Additionally, costs were incurred for the development of assembly, integration, and test facilities, including purchases of assembly equipment. Purchases of satellite direct materials and antennas also contributed to the total costs incurred.
It's important to note that these financial results are preliminary estimates based on currently available information. The actual results may differ from these estimates once the financial closing procedures are completed. AST SpaceMobile's official and audited consolidated financial statements for the three and six months ended June 30, 2023, will be made public when the company files its Quarterly Report on Form 10-Q for that period. The independent registered public accounting firm, KPMG LLP, has not reviewed or conducted procedures related to these preliminary estimated financial results.
AST SpaceMobile's mission involves creating a global cellular broadband network in space that can work directly with standard mobile devices without requiring modifications. This groundbreaking initiative aims to eliminate connectivity gaps faced by millions of mobile subscribers and bring broadband access to those currently unconnected.
The company is focused on commercializing its service, and ongoing testing of the BW3 satellite is a crucial step in this process. However, the testing may come with challenges such as satellite connectivity issues, possible destruction of the satellite, or other communication failures. These circumstances could lead to additional costs and delays in commercializing the service.