Anpanman: Initial Thoughts on Q2 Update, TLDR BULLISH

[00:00:00] Speaker A: Hey everyone, thanks for tuning in. Um, this is kind of a last minute thing that I wanted to do after that really bullish, uh, quarterly update. I thought, um, it'd be worth talking about a bit. I know KUKA is gonna have one, uh, another space this evening, so people will be treated to a double header. Um, which I think is good. I think, uh, you can get the perspective of, of 2 different people, although I think Kook and I are probably equally bullish about that call. So maybe if people can gimme a thumbs up just to make sure that you guys can hear me, but I'll just assume you guys can hear me. No, I'll keep going. Yeah, that was an incredibly bullish call. I think it was exactly what the market needed. I know I've said this like a number of times in most recent Spaces, That the company is at a very different point in time versus where it was in 2022 and 2024. And I think some people kind of live in the past where they don't really recognize that, you know, we're on the cusp of a multi-launch campaign and commercialization. Yeah, there's going to be hiccups along the way in terms of production and getting things, everything, getting everything aligned. And I'm sure Based off of what the company said today, there's still going to be hiccups. But when you're staring down the barrel of launching 45 to 60 satellites off the rip and production is ramped up and you've solved the funding issues, you're in a very different spot. It's not like you're sending up a test satellite for the first time hoping everything goes okay and you're living hand to mouth. Or, you know, you're, you are at, you're launching 5 Bluebirds and you're still perhaps 6 to 9 months or a year away from the next batch. Like now we're, we're basically at this point where we're producing these things on a very consistent base, or will be on a consistent basis, and then launching, as Abel and Scott and Andy mentioned on the call, you know, launching these things every 1 to 2 months on average, which is insane. I'm still kind of in disbelief. But when you have those type of dynamics, I think folks should understand that the market is pricing in and discounting in very different things versus what it was a year ago, right? Because we're now under customers commercialization. What I heard on that call was like a ton of government interest and revenues that are going to be coming in. And I think government's going to dwarf commercial business for probably, my guess is the first 2 to 3 years of commercialization for the company. Like, I think government's going to be leading revenues and then you're going to see the commercial business kick in. But it's kind of fun because you've got multiple As Scott mentioned today, these satellites are dual use case. And so you've got multiple avenues to generate economics for the company. And that's very exciting. Just like, for example, Starlink. Starlink built a wonderful consumer business, but then also government business. And so I think especially for these types of technologies where there's a lot of risk upfront, It's important and it's good to have a government partner that's going to take those types of risks and fund it. Although we've seen, you know, on the commercial side, our M&O partners also be early investors and then obviously make, you know, what are pretty big leaps of faith in putting forward commercial prepayments. And so, so yeah, but I think as I said before, you know, it's funny, it's like the stock price kind of writes the narrative. And so when stock's doing well, everyone's all happy. And then when the stock, which inevitably, like we were going to have a pullback, I mean, things don't go straight up. And the stock started selling off and pulling back to, from what was a high of 60, an all-time high of 60 to as low as mid-40s. You know, you had and I joked about it today, like panikins, like people who interestingly like forget why they own a stock and they just start putting all these seeds of doubt into, you know, well, the stock must be down for this reason or this reason. You know, everyone is always trying to come up with a narrative. And then you had, you know, all these bears come out and just pour gasoline on it where You know, they're making claims that the stock is going to be down to $30 or something, which, you know, for the stock to go to $30, like there had to be absolute failure. Like we're not launching satellites for another year or 2. And maybe like one of the, you know, in Midland, one of the factories blew up or something. I mean, come on guys, like get a grasp of reality and have some perspective, especially You know, when I see some of the posts on Twitter, it's like the people who are really nervous and selling their stock ahead of earnings, you know, it's either, it tends to be like people who are just new to the story who haven't kind of gone through the ups and downs and don't understand how much volatility there is in any, I mean, not just AST SpaceMobile, but any early stage company. You're going to have highly volatile stock price, right? Because people are underwriting what they believe is the opportunity. And this is a company that, you know, will start having revenues actually this quarter and next quarter. And like, you know, I'll talk a bit more about how the company was very confident in their $50 to $75 million of revenue. But in early stage companies, like you're going to have a high level of volatility because people still are calibrating you know, what they think fair value is. And of course that's always moving, right? As the company's developing their business and maybe there's hiccups, but then there's positive things that come out. And then of course you've got the people who are skeptical, which, you know, it's interesting. There's like, there were a number of bears, you know, celebrating today and yesterday. And I saw the short interest has gone up and then lo and behold, like the company comes out and gives an update that again, I thought was very bullish. And the stock price is now at what, $51.30 after hours. And so all of a sudden those people will be quiet, right? And the people who sold out, they'll, I guess they'll have to buy in case. But I don't know, like I think from the $60 pullback, like I've been pretty relaxed about this all because I just have confidence in management and what they're doing. And yeah, there's some delays and we learned, by the way, like some of the delays are probably related to the US government, in particular defense, asking for some modifications on the satellite. And so there's bad delays and then there are good delays. And good delays, like if you're one of your biggest customers, like, hey, we like what you're doing, can we make some changes? You're going to say sure. And especially if that customer is going to be a very big contributor Economically, then you're going to make those changes, right? So I find it's interesting because like there's clearly FM1, FM2, and of course all the Block 1 satellites. Like these are all, I mean, Abel was not shy in saying the US government is currently using all the satellites, testing different applications. In particular, Scott even mentioned like there's 5 to 10 different unique use cases. Yeah. That's the first time I heard Tim quantify the types of use cases. And these are, I believe, outside of communications. So I remember bears were saying, well, there's no way they would put a government satellite, a satellite that the US government or defense, any number of branches of military, they would not launch a satellite on ISRO. But Here we are. They are launching a satellite on ISRO. And yeah, so anyway, but yeah, what I wanted to do is I took a bunch of notes after listening to the call twice, going through the transcript, but then also looking at the press release and then looking at the presentation. So I just want to do kind of as briefly as I can kind of an overview of this quarterly update. And then, and then of course, you know, Kuk will do so again at 11, but probably in a more eloquent and humorous style. So anyway, I guess before I start, I just wanted to say how amazing it is that, you know, on the call today there were 9 analysts who asked questions from 8 different firms. Quilty had 2 analysts. asking questions. But man, what a breath of fresh air and how things have changed, right? Because like, I remember how brutal, maybe it was in 2023, some of the calls, like maybe there was, you would get a question from the junior analyst, not the publishing analyst, but I think there was a call where there was only one question from an analyst and that was it. And then the rest, of course, there was the retail questions. And at that point I remember Just thinking like how brutal that was, that basically no one on the street cared enough to ask questions. Whereas this one, it's like the Q&A was, not only were there, you know, 9 different analysts asking questions, but they were really good questions. Whereas I think in the past, typically it would be retail who were asking the most interesting and detailed questions. But then now it seems like the street is catching up, which I think is reflective of stock price and institutional ownership. So just something I'd point out there that, yeah, today we had 8 firms, 9 analysts ask some questions, which I think is a pretty big milestone. So yeah, I want to talk about the quarter update in, let's see, 1, 2, 3, 4, 5 different buckets. And so the first bucket I want to talk about is launch and then production/IP and then commercialization, Spectrum, and then finance. So I'll start with launch. So in launch, just a few things to highlight here. I think FM1, the company said that it is going to be ready to be shipped in August 2025, this month. And then they'll determine a mutually— a launch date with, I think it's ISRO, on a mutually defined date sometime thereafter. And so I think from what we know, there is another— I think ISRO is launching an important mission that was supposed to come after ours. And so the question is like how that's gonna be sequenced, just given some of the delays around FM1. And so that was, you know, at least the satellite's gonna be ready. That's gonna be a press release that I assume we'll see once it's already completed environmental and testing and that it's ready to ship. And just as a reminder, you know, we had our, we've had our stumble here, but once that PR goes out that the satellite's ready to ship, then I think you will start seeing some level of expectations built into the stock and perhaps some ramp into that, the eventual launch date. It is important though to point out that during the call, one of the research analysts did ask if the multi-launch campaign is going to be is dependent on a successful FM1, not only the launch, but also the deployment of the phased array. And so what was interesting is that Abel said that all these launches are completely independent of one another, and we're just, we're going to be launching and sending out satellites. We're not waiting for any delays. So I do think that there is a chance if FM1 does get, you know, it's going to be ready for ship. shipment in August, but if it does get delayed in terms of launch, you might actually see FM2 happen before FM1. And whether that's on a SpaceX rideshare or a Blue Origin, perhaps even their first New Glenn's first test launch, or sorry, second test launch, we'll see. But yeah, I would I think it's, that's an important milestone for FM1 to be ready. And then I believe FM2 is probably a few weeks, not a few weeks, maybe 2 weeks after FM1 is my guess. And then we'll see. Like, one thing that really stood out in the press release today and the company commented is that they expect 5 orbital launches by the end of Q1 2026. And so, you know, I assume that 2 of those launches are going to be launches of 1, you know, FM-1 and FM-2. And then there's going to be 3 launches after that, which I assume are going to be Falcon 9 launches with, you know, 3 initially. So let's call that 6 in total, 3 Bluebirds on each launch. So that's 6 in total. And then a, what will probably be a 3rd New Glenn launch, which will be anywhere between 6 to 8 Bluebirds on that, on that satellite, on that rocket. So, so yeah, what is that? That's 2 plus 6, so that's 8, and then another 8, 6 to 8. So anywhere between 14 to 16 satellites in orbit by the end of Q1. That's what it seems like. So So if that's the case, 14 to 16, and then you add the, you know, the 6 already have in orbit, that's, call it, let's just say 20, 21. That's pretty good. That's pretty good by the end of Q1. What was great about the quarterly update today is that they did provide more a detailed plan around launch cadence and in particular, Let me just look at this slide here. I think it was slide 7 on the presentation. They showed 13 launches and basically kind of the sequencing of when the microns of that particular launch, when they would be completed by, which as you can see, as of September or when September rolls around, they will have Enough microns completed for 5 launches. And then on the bottom, you'll see satellites ready to ship. So outside of just the microns, the phased array, they'll have to complete assembly of the bus, which has all the brains and the processing. And then they have to do environmental testing, shaking, all that stuff. And so you can see here, Theoretically, they should be ready to launch number 3 and number 4 sometime in November and then launch number 5 sometime in December. That said, you know, you've got to go send it to the launch pad and have the satellites integrated into the fairing. But it is helpful finally, I think, and I think the market viewed this very positively to see an actual timeline laid out by the company, which obviously, as we all know, these timelines are in— there's language on the bottom where it, you know, there's some legal language that says obviously adhering to this timeline is contingent on a number of factors. But I think this is what the market and me personally and everyone else, I think we're hoping to see in the company outlined that. So I think it's great that we have this and obviously now it's, Something that the company will have to hopefully execute against and will have to adjust if they either can't meet these deadlines or perhaps if we're lucky, besides a delay, but maybe they'll pull them forward. Who knows? We'll see. But yeah, so to have launches every 1 to 2 months on average during the rest of 2025 and 2026, I think is huge. As I mentioned before, given The state of where the company is now, it's just not, I mean, if you're a short seller, I just don't know how you can be short this stock. And I tweeted in a joking way, but I was actually quite serious. Like, if you're short, I think you should be covering this because I think having this cadence of launches, these basically these events occurring and every time A new batch of satellites goes up, the company getting closer and closer to commercial service and getting to once past the 25 of financial contribution, but getting the full constellation of 45 to 60 satellites. Once you get there, you're going to be getting to a point where once they've launched commercial service in key markets, the company will be generating a significant amount of cash flow and And lo and behold, like at some point prior to that, maybe you get to break even and then you're generating cash and then, you know, you're able to not have to raise any more money and you can fully fund building out the mid-band constellation. I mean, yeah, who wants to be short in front of all that? It's kind of nuts. And I think, you know, I mentioned this to Tut today, you know, today's call truly seems like we're at an inflection point. And I'll talk a bit more about that in the finance section. But yeah, I just can't imagine like how anybody could be short this stock. It's just, I think it's like financial suicide. Like, you know, it's, and I think we saw back in at the end of May when clearly whoever, you know, there were probably some short sellers who thought they were smart that the company's going to be delaying the launch of F-51. So I'm going to be short this stock and maybe it'll be down 10 or 15%. And then they just got completely run over. The stock went up well over 100% in June. Like, that's just not— the risk reward is just not there. So I just don't get it. But anyway, so what was another interesting point around launch is that they did pull forward a launch payment to Q2 from Q3 with a partner. And Scott was, you know, he pointed out that that demonstrated flexibility. And so that comment kind of I don't know, you can kind of read it 2 ways. I mean, I think the easiest interpretation of pulling forward a payment from Q3 to Q2 is that it's probably Blue Origin. And perhaps they pulled forward the payment because they wanted to increase, you know, they wanted to increase the, I guess, The importance of our launch, or we wanted to increase our importance of our launches with Blue Origin. And perhaps Blue Origin, because of that payment being put forward, is that maybe they're pulling up, they're changing the manifest, or they're going to commit to more launches instead of waiting for perhaps, like, for example, a successful landing of the booster. You know, maybe they're just going to commit to being okay with losing those and just doing this on an expendable basis. So that's one way you kind of look at it. Or the other way potentially is that that payment that was pulled forward could be for SpaceX. And so maybe when Scott talked about demonstrated flexibility, he's kind of pointing out that we do have this ability to backfill with SpaceX and by putting pulling forward a launch payment or putting more of a payment down, maybe SpaceX is going to accommodate more launches. So we'll see. But they did mention they hope to average 6 to 8 Bluebirds per launch. And so that would tell me that if it's truly 6 to 8, then we're probably talking like Blue Origin New Glenn, unless the alternative could be that maybe the company, because we're at this point where we've got all this money now, The company is barreling towards commercialization and they're willing to pay up for Falcon Heavy. And so maybe that's where you could see SpaceX launching more than what was originally 3 to 4, but perhaps more Bluebirds along the lines of what Blue Origin could handle, which would be, call it 6 to 8. As I mentioned before, launches are going to be independent of one another. So even if FM1, if we can't get on ISRO for September or October, perhaps maybe it's November, that's not going to stop deployment of the other FM2 and then of course FM3 and up satellites. One interesting thing I would note is that in my conversations with the company, There is the ability to have flexibility to fill in slots when customers don't show up. And so for SpaceX, for example, or any number of launch providers, oftentimes you will have companies that don't show up because satellites aren't ready. And that said, sometimes the launch providers do need to still launch because maybe there are other customers on that specific, like if it's a rideshare, for example, they may need to go up. Or for example, this came to mind. I think ULA, I think it was last year, like they, the government customer that they had was not ready, but they still sent up a rocket that was basically empty because they had to meet certain milestones with the US government in order to win future business. And so unfortunately at that time, I don't think AST had any satellites ready for deployment, but there are times when slots do become available because customers don't show up. And the great thing, as we all saw on the production slides and how the company talked about, is that there are going to be a lot of the satellites that are ready. And so there is some flexibility or this X factor of being able to take slots that people can't make. And that's a huge win for us. It probably comes at a cheaper price, but also it's good for the launch provider as well. All right, moving on to production IP. As the company mentioned, I think they've completed now microns for a total of 8 Block 2 Bluebird satellites. And this is a pretty big accomplishment, just as Abel mentioned, you know, these satellites are 3 times bigger than the Block 1 satellites. And so in the The size difference is primarily the Microns, the solar panels on one side and then the phased array on the other. And so the fact that we've got 8 completed so far, and I think, I don't know if anyone asks the company question today, but it does seem like they're well on their way to getting to a production cadence of 6 satellites worth of Microns by the end of 2024. Okay. per month by the end of Q3. And so that was good to see. The company also said that they're on target to complete enough microns for 40 Block 2 satellites in early 2026. So that's very positive. I mean, I think from what I understand, the micron production is not going to be or shouldn't be the bottleneck. It's going to be the new control bus, the center or the tuna can that we now see in the presentation. the control bus. And so I think that the fact that they're still, or they feel comfortable that they're going to get to 40 in early 2026 is huge. The company also reiterated that they're now, or they will have up to about 400,000 square feet of production facilities or manufacturing facilities across Texas, Europe, and then they said other locations. supported by 1,200 workers. And what we know of course is that specifically it's Texas, it's Spain, and then other locations. Interestingly, they didn't talk about Florida, which the Homestead space that they just acquired, that space is actually, I believe, and given the proximity to other primes in that area, I think that's going to be used for a government government satellite production. And so I just thought it was interesting that they actually didn't call out Florida specifically, but clearly, you know, based off of our research, it's gotta be, they've gotta be referring to Homestead. And so, but yeah, the fact that the company has 400,000 square feet, that's great. And yeah, I think when pursuing European business for SATCO JV, I think having space in Spain is going to be important. And, you know, today there was some Space Mob due diligence that uncovered some additional potential suppliers that we might be using in Korea, which I, you know, I think just like we saw with ISRO, having or sourcing parts or having manufacturing in various countries where you're going to pursue business, I think is good business. So that's good. The company highlighted that they now have 3,700 patents and patent pending claims, up from 3,650, which I always like to see that number going up as the company is continuing to innovate. And I've mentioned this on previous calls before, when you talk to the company and you talk about roadmap, and this was something that apparently Verizon was very big on when they decided To go with AST SpaceMobile over Starlink. They're not like what we see today, you and I, are BlueWalker 3 and then the Block 1 Bluebirds and Block 2. And then of course we have some inkling of what Block 3 could be, which is the mid-band, but the company's already thinking of like 4, 5, and 6. Like they're thinking way down the line. And I think that's like an important— That's an important aspect I think that's kind of lost on people, which is as some of these legacy providers are trying to get into the market and coming up with their first generation of satellites, which by the way, other people are building or they're using other platforms like MDA Space Aurora. I think it's important to note that this company is not sitting on their ass. They're actually innovating and they're thinking several generations ahead. And so while other people are kind of pursuing the initial, they're trying to get to some initial phase of comparability, you know, once they eventually do get there, if they can, we'll be on the 3rd or 4th generation of products. So anyway, but important to note there. Let's see. I thought it was cool. The company did talk about procuring materials for, I think it was like 40, the 40 satellites in order to avoid any tariff impacts. And so that's just smart business. They did reiterate that they're planning to hit 72 satellites per year in production cadence. And at the right time, when I guess when they have enough low-band Bluebirds up in the air, they're going to start producing mid-band Bluebirds, which are the Satellites that are focused on mid-band frequencies, Legato, you know, L-band, also S-band as well. Which today Abel did in this conversation, you know, did talk about which frequencies the mid-band Bluebirds would support. And he did specifically mention 1.5 GHz all the way up to 2.6 GHz, which I didn't know. I thought it actually only went up to 2.4. So, If he is able to support, if those Bluebirds are able to support 2.6, that opens up quite a bit of other business. Whether eventually if, if we do work with T-Mobile, T-Mobile did acquire Clearwire, or sorry, Sprint acquired Clearwire, which then merged with T-Mobile. But they have this one band of spectrum, 120 megahertz of 2.5, what we call 2.5. in the US, which could be used by our Bluebirds, but also SoftBank in Japan has that same spectrum too. But anyway, I digress. But yeah, it's cool to at least hear like the amount of frequencies that the mid-band Bluebirds can serve. And so that was pretty big to hear that. And then let's see, another interesting nugget on production is that Abel did mention, I'm not sure if I heard it right, And at least the transcript's kind of pointing to it, but that there would be potentially up to 8 satellites ready to go, perhaps maybe completed, but maybe not tested fully, or maybe it's in a late stage of production, but 8 satellites perhaps a few weeks after FM1. So I'm not quite sure what he meant by that, but I guess it just goes to show that the company is full barrel In production on all these satellites. Okay, so let's see, commercialization. I'll try to move a little faster here. I thought it was pretty clear from the call that government is going to be a huge driver of initial revenue and the company is getting more contracts. I think Scott specifically mentioned that there could be some awards before end of year and perhaps those awards, End of year, before end of year, that could kind of coincide with Golden Dome, which I think we feel pretty bullish about. Interestingly, none of the analysts actually brought up, or I guess retail, no one really brought up Golden Dome today. But I guess from the conversations that, you know, the dialogue from management, it was pretty clear. It's pretty clear that government's going to be a really big consumer of our services. at least in the initial years. And then of course you're gonna have commercial kick in as well. Abel specifically mentioned that, you know, the 6 satellites that are currently in orbit are being used by government customers. And then of course they're testing with commercial. But I think this kind of fits the, what we had all speculated is that these, the initial 5 Bluebirds, which are FPGAs, And it sounded like, you know, from the Q&A that some of their capabilities were designed for government use. But yeah, it's, I think it's pretty clear that, as I mentioned before, government is going to be a big driver of, you know, revenue for us. Some other tidbits from commercialization, you know, it sounds like we are going to be deploying intermittent service in the US by the end of 2025, which to To me, that was a bit of a surprise. I didn't think that we would be on that path just yet, but it sounds like we are going to get some launches perhaps more than we expect by the end of 2025. And then of course, you know, the company mentioned the UK, Japan, and Canada in Q1. And so that kind of fits with what Rakuten had said in a presentation, I think it was like a week ago where Rakuten had said that they are going to move up initial commercial service from, they had initially said, or they had said the end of 2026 now that, and then one of their executives said early 2026. And so this kind of fits with that. For those who are wondering, Canada is, the carrier there is Bell Canada, which was an investor in the IPO of the company, but has been a partner as well. They haven't, I guess the company didn't really refer to Bell Canada today, but that's who we would be partnering with there. The company did reiterate that Safco JV is drawing interest from around Europe, 21 of 27 EU member states, which is a good sign. They also did talk about how there's 2 additional US government contracts that were awarded, so that brings the total now to 8. And then Scott mentioned later that these are programs of record that can grow into hundreds of millions in revenue, like once you kind of get through the initial test phases. What's also interesting is that I think, as I mentioned before, Scott mentioned that our satellites are uniquely positioned given that they're the largest phased arrays in low Earth orbit, and there's a lot of communications but also non-communication cases that it can be used for. And then another important point he made is that These satellites are very affordable. So as opposed to primes that put very specific government satellites up in space and take years to do and perhaps cost like hundreds of millions or billions of dollars for each, we're putting up these satellites at, call it $23, $24 million a pop, which is very cost effective. But what was interesting is that Scott did mention that there are 5 to 10 different unique use cases, which is the first time I heard him quantify that. And if some of you guys will recall, I thought Hennessy, which is an institutional early, an early institutional investor in AST SpaceMobile, they outlined a number of different use cases, which I highly recommend, you know, for defense use cases. If you haven't read that letter, I highly recommend reading it. You can kind of go through that in detail. Let's see here. Of course, you know, the company reiterated that they tested with all US forces, which, and you know, US firms have been involved in the development of some of the satellites. And so, I think that's why FM1 and FM2 are very unique. They're heavy. They probably have some capabilities that, as Katzi has speculated, which I think he's probably going to end up being right on. There's quite a few unique capabilities there that I think apply specifically to government use cases. And then what will be interesting to see is if some of those capabilities then kind of trickle through the rest of Yeah, the Block 1 satellites. Let's see here. The other thing too around commercialization is that Scott did mention that there are other, what sounds like other M&O deals in the works. And it sounds like those are going to be coming to fruition soon because he talked about these strategic deals coming and to be on the lookout for them. I think in particular, if I had to guess, you know, it's probably going to be Verizon finally getting to that elusive commercial definitive commercial agreement. But I think also you could probably see, I mean, if we are going to start service in Canada in Q1, I would think that Bell Canada is going to be another one that comes pretty quickly. And then another one I would mention, you know, they did also talk about potentially serving other markets. My guess is that Saudi Telecom or perhaps one or two other Middle Eastern telecom providers will probably be next in line after Bell Canada. Okay, so moving next to spectrum, it was good to hear. I think one of the retail questions was asking about where we are in terms of Legato and Andy, you know, pretty much said that everything's on track to close now. It's just a regulatory review process. I know some people were a bit worried about the confirmation hearing, which was originally scheduled for August 7th, getting pushed back to August 27th due to maybe some disagreements over a term with, I think it was Inmarsat. I would, and you know, typically in bankruptcies in a very complex situation like that, there are going to be Little things that pop up here and there that do, you know, delay the timeline. But I wouldn't. When I saw that, I wasn't worried. I guess if you really, if you really think that there are any potential issues around Legato, one way to keep track of it in a very easy way is to follow Viasat. The ticker is VSAT. Viasat merged with Inmarsat, and Inmarsat, of course, owned. part of the Ligado spectrum, which is being leased. That company has taken off due to the AST SpaceMobile transaction. You know, ViaSat was, it's a highly leveraged, you know, company is trading in the tens. And then when the Ligado deal got announced, it's been on a steady march upwards. Now I think it closed at $26, no, $25.55. But if there truly is any issues with the Legato deal, or if the Legato deal actually falls apart, you would see ViaSat trade back down to $10, just given that they're kind of stuck back in their old position of not having any of the financial payments, the $500 million being paid to them, and then being in litigation with Legato. And so to the extent, like, if you're worried, Viasat, V-S-A-T, is worth following. Because if that stock craters in half on a given day, then maybe there is something, there is some issue with Legato. But that is a good barometer. But yeah, I don't see there being any issues. And I know Kuk has done some work around some of the folks that are close to Legato and they seem just as bullish as we are about AST SpaceMobile. So I don't think there's any issues there. The company did talk a bit about S-band spectrum rights that they acquired. And they kind of mirrored what I had said in the Spaces that I had last week, which is that the spectrum rights transaction gives them basically priority to then go negotiate licenses around the world. And that pretty much is like the markets outside of the US and Europe, which already have allocated S-band spectrum and there's some level of use. But outside of those 2 markets, it's pretty much a jump ball situation. And so the company has the ability to go to regulators and say, hey, we've got a commitment to build this constellation. We've got MNO business partners that are going to serve your consumers. We want to have a license to operate on S-band, which for the most part around the world is not being used today. So it's a huge opportunity. And as I've mentioned, once a company locks that S-band spectrum up, it's a huge moat for them strategically because that will be very hard to replicate. Let's see here. So going to finance, and this is kind of the last part of this space. The company reiterated $50 to $75 million of revenue in the second half. It sounds like most of that is going to be government-related revenue from some of these contracts, which will be great because then Once that revenue comes in, they'll have to give some level of color of exactly what these contracts are, I think, unless they're classified, which it was interesting when some of the research analysts asked questions. Unfortunately, the company couldn't talk about some of these contracts. So I guess it'll be unclear how much transparency we'll get, but we'll see. And then let's see, I think bookings this quarter were $14 million, primarily related to purchases of infrastructure like gateways from MNOs. And I think the company mentioned that on average we should see $10 million in bookings for the next few quarters. So yeah, now we're starting to see some level of economic activity. It's not— we're not a pre-Roaming company anymore. And this is a precursor to what's going to be A much bigger 2026, and then of course 2027, 2028. The numbers get stupid as long as companies executing and able to stand up service. What was good to hear again is that the Legato SPV that's backed by the underlying assets of Legato. There was a question about what money out of pocket will go to Legato once that transaction closes, and the company reiterated today that. We do have this SPV and they're currently in the process of farming out that bridge financing, which will end up being, I assume, like term loans with various institutions. But that $550 million SPV is going to cover the $420 million payment in October to Legato and then the $100 million in March of 2026. So there's no money out of our pocket. related to those 2 transactions. But then of course there's going to be ongoing usage payments that we'll have to make and then interest payments too on that debt. But at least in terms of funding our liabilities near-term and then kind of aligning those with when we expect revenues to come in, I just think like the SPV that the company, as part of the transaction with Ricardo that they set up, was great. So the company did also reiterate that it'll have $1.5 billion of cash on the balance sheet, which, and this is the big part, the company specifically mentioned that for the 45 to 60 satellites that will be deployed, we are fully funded at this point. And so I think taking a step back, that in terms of the business, We are completely de-risked at this point, as long as, of course, you know, very importantly, the timeline is tight and we continue to follow it. Of course, if things do get delayed, we might need additional funding, or if there's new opportunities, for example, other business to pursue, or maybe we want to put up a different shell like a government shell, then that's going to require capital as well. But at least in the near term and what's line of sight for the company, They feel really good about funding. And so, you know, they specifically mentioned that once they get 25 satellites up, then they think that will be— that initial constellation of 25 will contribute meaningfully from a financial perspective to help cover operating costs. I think they mentioned 25 in particular because that number is what's probably needed to hit some level milestones and initiate you know, service KPIs that will unlock revenue for maybe if it's, well, I'm guessing it's probably government customers. Let's see here. But yeah, so as part of that discussion, Andy was pretty confident in saying that they think they'll generate enough commercial revenues and government revenues as well as, you know, draw from non-dilutive sources to meet their funding needs. And so I think that's why we've seen the company be very specific in saying they terminated the ATM. Like they didn't actually use all 500. I think they used like 493 or something and then they terminated it. So I think in terms of messaging, you know, I think we all, or most of us agree that, I mean, it's okay for the company to have an ATM outstanding because it's good to have that flexibility. But for, at least for now, and maybe this changes tomorrow morning or maybe changes a few weeks from now or months from now. It doesn't seem like they'll need an ATM, which I think at least on the face of it, you know, $1.5 billion in the bank, they've got the SPV, you know, I was a bit concerned about Legato, the $420 million payment, but it, but that SPV now is in place. So that huge outflow of cash is going to be covered by the SPV. And so it seems like we're pretty well positioned. And, you know, Andy specifically mentioned that they're shifting their spending away from standing up the business to now they're focusing investment on commercialization and strategic development. And so hearing that change of tone was great. And I think, you know, he caveated it by saying they don't need funding, but if they have to, Seek additional financial support, if appropriate, then they will. But at least for now, they don't really see the need to. They also reiterated the pursuit of Ex-Im and IFC funding. It sounds like they're further along down that process. I'm not really sure how much time is left on that, but for those that recall, I think it's like $500 million that they're seeking. So yeah, from a financial perspective, it seems like things are you know, great for the company and we seem pretty well positioned. But yeah, overall I think it was a very bullish call. I think from the analyst questions you could kind of tell that there's some level of excitement from the analyst community. And so just kind of looking at research coverage right now, let's see, like I think Barclays is at $37. I think everyone else is probably okay. You might see a few upgrades tomorrow, like Roth is at 51. Let's see, Deutsche Bank's at— our guys at Deutsche Bank who've always been bullish, they're at 64. Maybe they'll raise a little bit. ClearStreet's at 59. Scotiabank, who has gone off the rails, I have no idea what that analyst is doing, is at 42.90. Maybe he'll raise his price target tomorrow. Who knows? And Cantor is at $30. And I see that they did publish something today, which could have been kind of an initial reaction, but I assume that they'll probably want to upgrade, update their research price, their price target, and also do a more wholesome report tomorrow. And then UBS, as we all know, is restricted. Maybe they'll come off restriction. If they don't, I would be surprised, but Maybe they'll reinitiate with a price, a new price target. But outside of that, before I close, let me just look at any questions here. Let's see here. Bear with me as I go. Where can we watch the UBS chat on Wednesday? I don't think it's going to be webcast, and this is something that I've actually talked with management about. asking them if they can get some of these financial conferences, like the presentations webcast. But I, you know, some of these banks don't allow for that, but to the extent that they can, I think it would be great and we obviously all appreciate it. But I don't think UBS is webcasting that. But if that changes, I'll be sure to let people know. Let's see. Do you feel like analysts have enough information to start modeling near-term government revenue into their price targets? It doesn't seem like they have given this market much coverage yet. That's a good question. I don't think so, 'cause I think the government stuff is still pretty opaque and the contracts that we have clearly are very kind of initial contracts for that are exploratory in nature. But then I do believe, as Scott mentioned, later this year when, when, or if and when these contracts get expanded and there's more meat put around the bones, I think it'll be easier for the company to talk about what that means economically. And then, you know, the street will be able to model it, which— I get where this person is coming from because, for example, Bank of America, I don't think they really modeled much of any government revenues, but then I think most of the Street analysts actually haven't done that. So yeah, I mean, as I mentioned before, I think government's going to be a pretty big contributor and it's underappreciated. And so we'll see how that kind of changes things. As it's kind of funny because the research analysts have based most of the price targets on commercial business, and yet later this year, And then the first half of next year, there's going to be this huge ramp in government that no one's really modeled in. And so, so yeah, that's going to be, I think, kind of like a big upside for the company. Let's see. If I'm an analyst working at a major bank, what price target would I price AST after today's call? I don't know. That's a good question. I think some of the price targets are okay where they are. 'Cause some of these analysts are kind of waiting for FM1 to get launched and, or sorry, to get completed and launched. And so there's probably like a decent group of these analysts who are in a wait-and-see approach or wait-and-see mode, which is fair. But as I mentioned before, I think once FM1 is done, which is sometime this month, which there's only what, there's only 20 days left, then they're going to start seeing the stock price moving. off the anticipation of FM-1 kicking off like, you know, the multi-launch campaign, right? So I think they're going to have to raise their price targets, especially as the launch campaign kicks off, you know, the risk of delays has been taken off the table and then, you know, government contracts are awarded and then some additional M&O wins come into place and perhaps Verizon, that commercial agreement finally gets inked. Well, as I mentioned before in my post last night, which I did partially to get people refocused on what's important, because I was seeing like all these negative, whether it was like bears posting or just people who I guess, are panicking, like just really nervous about today. I did this long post of like milestones that the company has completed and upcoming things that upcoming catalysts that are in near term, you know, in line of sight. And that list, it took me a long time to update. I mean, I'd done this list up to June of this month and then just updating it for 2 months, it was kind of crazy. Like there were all these other things that I had to add to it. And so yeah, I think there's a lot of upcoming catalysts that it's going to be hard for research analysts to ignore. And so they'll have to reassess, you know, their price targets. So I don't know if we'll see like big moves tomorrow, but we definitely will, I think, as we get closer to FM1 launch. Let's see here. And I think that's probably it for questions. But yeah, thanks for, thanks everyone for joining. Kook told me, I was like, what is this? Okay, never mind. But anyway, I'm doing this 8 o'clock, or I started this at 8:20 for the benefit of East Coast people. And then later you can obviously join Kook's space at 11 o'clock if you're still awake. I'm sure again, his will be more entertaining, but What I'll try to do is I'll try to, I did put together notes, so maybe I'll just tweet these notes. I'll maybe make a few tweaks here and there, but I'll tweet it out and then yeah, hopefully this is helpful for people. And I guess taking a step back, I think this call was exactly what the company needed to do in terms of giving people much more confidence around the timelines of Launch cadence and reiterating commitment to commercial service, which candidly, not only was initial commercial service reiterated for the end of 2025 for the US, but then some markets like Japan being pulled up to Q1 is a big surprise for me. So a lot of bullish things to take away. There's a lot of information here. Hopefully I covered it pretty well and Yeah, thanks everyone for joining. I'll post my notes and then I, I guess I'll, I'll see you guys again in about 2 hours with Cook after he finishes, I guess leg day or whatever he's doing. But, but yeah, thanks everyone for joining and we'll talk again soon. Take care.