AST SpaceMobile Secures Initial Contract with Space Development Agency (SDA) as a Prime Contractor to the United States Government

Rhea-AI Summary

AST SpaceMobile (NASDAQ: ASTS) has been selected by the Space Development Agency (SDA) for an Other Transaction agreement to compete for prototype demonstration projects under the HALO program. The program aims to accelerate advanced space technologies development for the Department of Defense. AST SpaceMobile will compete as a prime contractor, leveraging its space-based cellular broadband technology that features the largest commercial phased arrays in low Earth orbit. The company's technology, backed by over 3,450 patents and patent-pending claims, can serve both communications and non-communications applications, offering potential advantages for various government use cases.

Positive

• Selected as prime contractor for SDA's HALO program
• Expansion into government contracts market
• Portfolio of over 3,450 patents and patent-pending claims
• Potential for new revenue streams from government applications

Negative

• None.

Insights

Government Contracts Analyst

The SDA contract represents a significant strategic milestone for AST SpaceMobile, marking their first entry into government contracting as a prime contractor. While the initial agreement doesn't guarantee immediate revenue, it positions ASTS to compete for valuable prototype demonstration projects under the HALO program. The "dual-use" nature of their technology, combined with their extensive patent portfolio of 3,450 patents and pending claims, creates a compelling competitive advantage in the defense sector.

The agreement opens up a new revenue stream beyond commercial applications, potentially reducing dependency on commercial success alone. Government contracts typically offer stable, long-term revenue potential and can lead to follow-on opportunities across other defense and intelligence agencies. The timing is particularly strategic as it coincides with increased government focus on space-based capabilities and communications infrastructure.

Space Technology Analyst

AST SpaceMobile's selection for the HALO program is technically significant due to their unique phased array technology. Their satellites, featuring the largest commercial phased arrays in LEO, offer dual-purpose capabilities that align perfectly with DoD's increasing focus on resilient space architecture. The technology's ability to serve both communications and non-communications applications provides strategic advantages for military operations, particularly in contested environments.

The validation from SDA, a key player in military space technology acquisition, strengthens ASTS's market position and could accelerate their technology development through defense funding. This could benefit both government and commercial applications, creating a virtuous cycle of innovation and deployment.

MIDLAND, Texas--(BUSINESS WIRE)-- AST SpaceMobile, Inc. (“AST SpaceMobile”) (NASDAQ: ASTS), the company building the first and only space-based cellular broadband network accessible directly by everyday smartphones, designed for both commercial and government applications, today announced its selection by the Space Development Agency (SDA) for an Other Transaction (OT) agreement to compete for upcoming prototype demonstration projects under the Hybrid Acquisition for proliferated Low-earth Orbit (HALO) program.

The HALO program is a strategic initiative designed to accelerate the development and deployment of advanced space technologies. With this program, the SDA aims to foster competition, drive innovation, and rapidly deliver cutting-edge capabilities to the Department of Defense (DoD).

AST SpaceMobile's selection reflects the company's strong track record in innovating space-based technologies and its alignment with the SDA's mission. The company will now have the opportunity to compete directly as a prime contractor for specific prototype orders, demonstrating the feasibility and scalability of its technology for various government applications.

AST SpaceMobile's unique technology, featuring the largest commercial phased arrays ever deployed in low Earth orbit, derived from over 3,450 patents and patent-pending claims, enables its satellites to serve both communications and non-communications applications. This unique capability offers significant advantages in terms of coverage, reliability, and security, with a technology that could enable a variety of government use cases, described often as “dual-use” technologies.

“This initial contract validates our commitment to developing innovative solutions for national security space needs,” said Chris Ivory, AST SpaceMobile Chief Commercial Officer and Head of its Government Business Unit. “Our space-based cellular broadband technology has the potential to enhance SDA’s stated mission at the transport, tracking, and ground layers in a secure and reliable way.”

About AST SpaceMobile

AST SpaceMobile is building the first and only global cellular broadband network in space to operate directly with standard, unmodified mobile devices based on our extensive IP and patent portfolio, and designed for both commercial and government applications. Our engineers and space scientists are on a mission to eliminate the connectivity gaps faced by today’s five billion mobile subscribers and finally bring broadband to the billions who remain unconnected. For more information, follow AST SpaceMobile on YouTube, X (Formerly Twitter), LinkedIn and Facebook. Watch this video for an overview of the SpaceMobile mission.

Forward-Looking Statements

This communication contains “forward-looking statements” that are not historical facts, and involve risks and uncertainties that could cause actual results of AST SpaceMobile to differ materially from those expected and projected. These forward-looking statements can be identified by the use of forward-looking terminology, including the words “believes,” “estimates,” “anticipates,” “expects,” “intends,” “plans,” “may,” “will,” “would,” “potential,” “projects,” “predicts,” “continue,” or “should,” or, in each case, their negative or other variations or comparable terminology.

These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside AST SpaceMobile’s control and are difficult to predict.

Factors that could cause such differences include, but are not limited to: (i) expectations regarding AST SpaceMobile’s strategies and future financial performance, including AST’s future business plans or objectives, expected functionality of the SpaceMobile Service, anticipated timing of the launch of the Block 2 Bluebird satellites, anticipated demand and acceptance of mobile satellite services, prospective performance and commercial opportunities and competitors, the timing of obtaining regulatory approvals, ability to finance its research and development activities, commercial partnership acquisition and retention, products and services, pricing, marketing plans, operating expenses, market trends, revenues, liquidity, cash flows and uses of cash, capital expenditures, and AST SpaceMobile’s ability to invest in growth initiatives; (ii) the negotiation of definitive agreements with mobile network operators relating to the SpaceMobile Service that would supersede preliminary agreements and memoranda of understanding and the ability to enter into commercial agreements with other parties or government entities; (iii) the ability of AST SpaceMobile to grow and manage growth profitably and retain its key employees and AST SpaceMobile’s responses to actions of its competitors and its ability to effectively compete; (iv) changes in applicable laws or regulations; (v) the possibility that AST SpaceMobile may be adversely affected by other economic, business, and/or competitive factors; (vi) the outcome of any legal proceedings that may be instituted against AST SpaceMobile; and (vii) other risks and uncertainties indicated in the Company’s filings with the Securities and Exchange Commission (SEC), including those in the Risk Factors section of AST SpaceMobile’s Form 10-K filed with the SEC on April 1, 2024.

AST SpaceMobile cautions that the foregoing list of factors is not exclusive. AST SpaceMobile cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk Factors in AST SpaceMobile’s Form 10-K filed with the SEC on April 1, 2024. AST SpaceMobile’s securities filings can be accessed on the EDGAR section of the SEC’s website at www.sec.gov. Except as expressly required by applicable securities law, AST SpaceMobile disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241023158745/en/

Investor Contact:

Scott Wisniewski

investors@ast-science.com

Media Contact:

Allison

Eva Murphy Ryan

917-547-7289

AstSpaceMobile@allisonpr.com

Source: AST SpaceMobile, Inc.

FAQ

What is the HALO program contract that AST SpaceMobile (ASTS) secured with SDA?

AST SpaceMobile secured an Other Transaction agreement to compete for prototype demonstration projects under SDA's HALO program, which aims to develop advanced space technologies for the Department of Defense.

How many patents and patent-pending claims does AST SpaceMobile (ASTS) have?

AST SpaceMobile has over 3,450 patents and patent-pending claims related to its space-based cellular broadband technology.

What type of technology is AST SpaceMobile (ASTS) deploying in low Earth orbit?

AST SpaceMobile is deploying the largest commercial phased arrays ever used in low Earth orbit, capable of serving both communications and non-communications applications.