Federal Communications Commission Releases Public Notice on Petition for Rulemaking

Awarded $1.9 million in Funding from DOT to Test PNT Services as Complement and Backup to GPS

RESTON, Va., Aug. 07, 2024 (GLOBE NEWSWIRE) -- NextNav Inc. (NASDAQ: NN) (“NextNav” or the “Company”) a leader in next generation positioning, navigation, and timing (PNT) and 3D geolocation, today reported financial results for NextNav’s second quarter ended June 30, 2024.

Mariam Sorond, NextNav CEO stated, “The NextNav team continued to make solid progress towards our strategic vision in the second quarter. Notably, on August 6, 2024, the Federal Communications Commission (“FCC”) issued a public notice seeking comments on NextNav’s petition for rulemaking. This is a standard, but significant first step in the longer-term FCC rulemaking process and we appreciate the FCC’s action as we push to deliver an innovative spectrum solution in the Lower 900 MHz band.

“Additionally, we recently received an award from the Department of Transportation (“DOT”) to test NextNav’s PNT technology, a terrestrial solution that delivers PNT as a complement and back up to GPS. The award provides $1.9 million in funding, the largest dollar value awarded by the DOT, and is a significant win for NextNav as it’s aligned with the DOT’s complementary PNT action plan to conduct field testing of technologies with critical infrastructure providers. It also further validates NextNav’s strength and leadership position in PNT services and aligns well with our technology and spectrum path with the FCC.”

Recent Operational Highlights

• FCC Releases Public Notice on Petition for Rulemaking: On August 6, 2024, the FCC released a public notice seeking comment on NextNav’s innovative spectrum solution in the Lower 900 MHz band (902-928 MHz band). The FCC has requested comments from the public on this petition within the next 30 days, followed by a 15-day reply comment period.
  

• NextNav Granted U.S. Department of Transportation Award to Test PNT Services: On July 3, 2024, the DOT issued a press release announcing that NextNav was awarded a purchase order to test the Company’s 3D PNT technology, a terrestrial solution that delivers PNT as a complement and backup to GPS. The award comes from the U.S. DOT Volpe Center and is a part of its Complementary PNT Action Plan.
  

• Nicola Palmer Joins NextNav Board of Directors: Nicola Palmer was appointed to the NextNav Board of Directors, effective June 24, 2024. Ms. Palmer spent much of her career with Verizon where she held leadership roles spanning engineering, operations, and technology supporting advanced data and wireless products, serving as Chief Technology Officer, Chief Engineering Officer, and Head of Wireless Networks.
  

Three and Six Months Ended June 30, 2024 Financial Highlights

• Revenue: was $1.1 million in the three months ended June 30, 2024, as compared to $800,000 in the prior year period. In the six months ended June 30, 2024, Revenue was $2.1 million, as compared to $1.6 million. The increase in both the three and six months ended June 30, 2024 was primarily attributable to increased recurring service revenue in the current period from technology and services contracts with commercial customers, including in support of government opportunities.
  

• Operating Loss: was $15.3 million in the three months ended June 30, 2024, as compared to an operating loss of $15.0 million in the prior year period, primarily driven by increases in payroll-related expenses and professional services, partially offset by lower stock-based compensation expense. In the six months ended June 30, 2024, operating loss was $31.5 million, as compared to $29.0 million in the prior year period. The increase in operating loss was primarily driven by an increase in payroll-related expenses and professional services, particularly offset by lower stock-based compensation expenses.
  

• Net Loss: was $24.4 million in the three months ended June 30, 2024, including a loss on the fair value of warrants, net of gain associated with a change in liability associated with the Telesaurus asset purchase of $6.6 million, as compared to a net loss of $15.8 million in the prior year period, including a loss on the fair value of the warrants of $0.3 million. In the six months ended June 30, 2024, net loss was $56.0 million including a loss on the fair value of warrants, net of gain associated with a change in liability with the Telesaurus asset purchase of $19.8 million, as compared to a net loss of $32.1 million in the prior year period, including a loss on the fair value of the warrants of $3.1 million.
  

• Balance Sheet: as of June 30, 2024, the Company had $86.3 million in cash, cash equivalents, and short-term investments and has $51.4 million in debt net of unamortized discount attributed to transaction costs and the issuance of warrants, with a gross value of $70 million.
  

Conference Call Information

NextNav will host a conference call for analysts and investors at 5:00 pm ET on Wednesday, August 7, 2024.

Registration for the conference call can be completed by visiting the following website prior to, or on the day of, the conference call: https://registrations.events/direct/Q4I6293666000. After registering, each participant will be provided with call details and a registrant ID. Reminders will also be sent to registered participants via email. Alternatively, the conference call will be available via a live webcast.

To access the live webcast or a replay, visit the Company’s investor relations website at https://ir.nextnav.com/.

A replay of the call can also be accessed via phone through August 14, 2024 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 positioning, navigation and timing (PNT), enabling a whole new ecosystem of applications and services that rely upon 3D geolocation and PNT technology. Powered by low-band licensed spectrum, NextNav's positioning and timing technologies deliver accurate, reliable, and resilient 3D PNT solutions for critical infrastructure, GPS resiliency and commercial use cases.

For more information, please visit https://nextnav.com/ or follow NextNav on Twitter or LinkedIn.

Source: NN-FIN

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 the achievement of certain FCC-related milestones and FCC approvals, the ability to realize the broader spectrum capacity and the advancement of NextNav’s terrestrial 3D PNT services, NextNav’s position to drive growth in its 3D geolocation business and expansion of its next generation terrestrial 3D PNT technologies, the business plans, objectives, expectations and intentions of NextNav, and NextNav’s estimated and future business strategies, competitive position, industry environment, potential growth opportunities, revenue, expenses, and profitability. 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, those included in Part II, Item 1A, “Risk Factors” of the Company’s quarterly reports on Form 10-Q, and Part I, Item 1A, “Risk Factors” of the NextNav’s Annual Report on Form 10-K for the year ended December 31, 2023, as well as those otherwise described or updated from time to time in our other filings with the Securities and Exchange Commission (the “SEC”). 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.

Contact:

Erica Bartsch
Sloane & Company
[email protected]
212-446-1875