Goodwill Impairment

, CPA Battery Think Tank Investor. Outlasted Situational Awareness

[Goodwill Impairment @goodwillimp]

$eose

Plugging my firm bc it is a good shop that does good work.

Not going to reveal the name publicly bc my tweets don’t represent the firm’s beliefs.

If you are unhappy with your current firm or need service your current firm cannot provide reach out to my DM’s.

[Goodwill Impairment @goodwillimp]

@Yeah_Dave They literally explicitly just laid it all out there

[Goodwill Impairment @goodwillimp]

@endless_frank @ASTS_SpaceMob Sorry, missed this part. Is he saying the JV will own the Sats or the Japanese govt will?

[Goodwill Impairment @goodwillimp]

@taubamush It seems very reasonable to me that the thresholds for being placed in service are different. That being said, BB6’s useful life should be shorter and depreciated more rapidly as its time in space operating will be shorter.

[Goodwill Impairment @goodwillimp]

@taubamush makes sense to me, not in service until they are unfurled and that didn’t happen until July right?

$ASTS

[Adam Taub @taubamush]

$ASTS states that they have 13 satellites in orbit, but BB6 as well as BB8 through BB13 all continue to sit in construction in progress. Satellites in orbit is unchanged on the balance sheet. The per satellite cost including launch is still unknown.

But the written off carrying value of BB7 was finalized at $158.4 million, with $32.5 million of insurance recoveries.

[Goodwill Impairment @goodwillimp]

@taubamush Agreed that revenue generation does not dictate when it is placed into service, But to me block 1 and block 2 seem different in the sense that block 1 is the proof of concept and block 2 is the commercial product (even if block 1 is used for commercial eventually).

[Goodwill Impairment @goodwillimp]

@pacecowboi Quote is from the previous 10k

[Goodwill Impairment @goodwillimp]

@taubamush “BB Satellites are reported as Satellites in Orbit when the BBs are ready for their intended use”

Likely won’t be placed into service until beta service is activated based on the way i interpret that accounting policy.

$ASTS

[Goodwill Impairment @goodwillimp]

@taubamush “BB Satellites are reported as Satellites in Orbit when the BBs are ready for their intended use”

Likely won’t be placed into service until beta service is activated based on the way i interpret that accounting policy.

$ASTS

[Goodwill Impairment @goodwillimp]

@taubamush That one launched prior to 12/31 right? But didn’t unfurl until Feb? That nixes my theory.

[Anp🅰️nman @spacanpanman]

$ASTS: Expansion of US production space of ~900,000 sq ft being driven by US Government demand

[ASTS Investors 🅰️ @ASTS_Investors]

SCOTT WISNIEWSKI - EDGE AI COULD BE A BIG MARKET DUE TO THE POWER GENERATION OF BLUEBIRD SATELLITES

$ASTS

[Goodwill Impairment @goodwillimp]

They are hammering this “partner first” approach in the earnings presentation and release.

This earnings call is a major turning point in how the market views them vs $SPCX

$ASTS

[Goodwill Impairment @goodwillimp]

$21M received from insurance proceeds from the failed Blue launch.

$ASTS

[TheKOOKReport @thekookreport]

J-LEO / $ASTS

“Preliminary selection of Rakuten and AST SpaceMobile joint-venture by Japan MIC for J-LEO initiative with total expected value up to approximately $1 billion in non-dilutive, non-debt government capital”

[Goodwill Impairment @goodwillimp]

@spacanpanman Unrelated to Duopoly:

Does ASTS retain ownership of the Sats subsidized by JLEO?

If JLEO is paying for Sats owned by AST would that reduce the $ amnt of fixed assets capitalized on the BS thus reducing the depreciation hitting COS?

[Goodwill Impairment @goodwillimp]

📠📠📠

This will not be a bolt on. This will become ingrained in every single cellular plan.

$ASTS

[NotKen2024 @NotKen2024]

$ASTS — I’ve seen a number of comments recently, including from some ASTS bulls, questioning the potential uptake for ASTS service — including the consistent comment that even with relatively modest uptake percentages, the opportunity for ASTS is still very big.

I think this whole discussion completely misses the sea changes that have happened in the D2D landscape since the original pitch for ASTS’s service. That pitch was that the carriers would sell this extended satellite coverage to customers as a voluntary add-on on a monthly or daily basis. The carrier and ASTS would then split the revenue 50/50 from these sales.

Some bulls have argued for quite a while now that the service would quickly, or at least eventually, morph into a standard feature of most cell plans (like texting did), dramatically increasing usage/uptake. I’ve always agreed with that take, but there were reasonable arguments on both sides.

I don’t think there are two sides to this anymore. The satellite service offered by ASTS will become standard on nearly every cell phone plan. Here are the reasons why:

1. The carriers have made it clear that they will look to decommission some of the rural terrestrial sites whose service can be replaced by satellite. Initially, this cost-saving opportunity was simply going to be a “nice to have” for the carriers. Why not eliminate some of your high-variable-cost assets (individual cell sites) with lower-cost fixed costs (a satellite constellation)?

2. With Starlink planning to launch its own network, however, this “nice to have” becomes a business imperative. The carriers can’t afford to simply look around and cut the most obvious money-losing cell sites. Instead, in order to keep their cost structures as closely aligned with Starlink’s as possible, the MNOs will have to be aggressive in eliminating any and all sites that can be replaced with satellite coverage.

After all, Starlink, with a satellite-first network, will only build those terrestrial sites that are absolutely necessary for competitive service. The carriers will not be able to compete if they retain massive redundant costs that their competitors do not.

3. Based on the above, the carriers will not get away with offering satellite coverage as an add-on. You can’t go to your customers and say, “Hey, buy this new cool service that fills in the very few coverage gaps in my network,” and then turn around and create a whole bunch of new coverage gaps when you decommission a bunch of sites.

No. You will need to provide the satellite service as a core offering of your plan.

4. In the same vein, the carriers cannot go to their customers and tell them to pay extra for satellite coverage when their new competitor, Starlink, will not.

5. Lastly, while satellite coverage was initially viewed simply as a way to fill in coverage gaps at the edge of the network, it’s now generally accepted that it will play a much larger and more integrated role in MNO network planning.

Satellites will be used to fill in coverage holes wherever they exist — not just at the edge of the network, but in urban, suburban, and exurban locations as well. They’ll be used to enhance coverage in one-bar areas. They’ll be used to provide that little bit of extra capacity when needed. And, as @CatSE___Apex___ details far better than I can, the integrated overlay use cases for satellite coverage are massive.

a. Because of the ubiquity of all of these use cases, coverage provided by satellite service will be an essential service, not an add-on.

Now, it might take a little while for this to happen. After all, Starlink won’t be a credible threat to MNOs for many years, and MNOs won’t decommission sites until they can be fully replaced by satellite coverage — which will happen on a multiyear rolling basis as the initial ASTS constellation matures and new constellations are added.

And it wouldn’t surprise me if there were usage-tier rates related to satellite usage, just like there are for many data plans.

But, in the end, there’s not much of a credible argument left against satellite coverage being core to nearly every mobile phone plan in the not too distant future.

So, when you think about the market size or uptake rate for ASTS’s service, I think you really need to model something like 80–90% of the subscribers of each MNO they partner with.

How the economics of that flow to ASTS remains to be seen, but given the essential nature of what they are providing the opportunity is enormous - especially when applied across the world.

[Kevin Chen @Defiantclient2]

$ASTS: 🚨Rakuten Q2 Report Confirms: Selected for Japan’s Domestic Satellite Network Development Project

+ Commercial service, provided by @Rakuten Mobile via @AST_SpaceMobile satellites, is targeted to be launched from Q4/26
*In addition to commercial services starting in Q4/26, we plan to build a communication infrastructure through the J-LEO project. Details to be disclosed once finalized

+ Selected as an indirect subsidy operator under the Ministry of Internal Affairs and Communications’ “Japan Low Earth Orbit Satellite Communications Project (J-LEO)”, which supports the development of Japan's own satellite communications network

+ Holding the rights to own and operate satellites, aiming to achieve strong resilience that can maintain Japan's domestic communications infrastructure on a priority and stable basis, unaffected by external environments even in emergencies

+ To achieve resilience to prioritize and stably maintain domestic communication infrastructure in Japan

+ Maximizing capital efficiency to expand business opportunities in the satellite communications domain

https://t.co/q2EfP9YyNc

[Goodwill Impairment @goodwillimp]

@NevilleHarris88 Suck it king fu is number 1 imo. They were fucking with him and accidentally went way hard.

[VanquishTrader @VanquishTrader]

https://t.co/Sn6ohqoesg

[Anp🅰️nman @spacanpanman]

$ASTS: Starlink entering the direct-to-device race was the best thing ever to happen to AST SpaceMobile. Not only did Starlink bring awareness to customers and capital markets, it encouraged Verizon and now T-Mobile to join AT&T in working with AST SpaceMobile.

Similarly in Europe we're seeing Deutsche Telekom defect and join Vodafone, Orange, Telefonica and others, representing ~80% of European subscribers, in working with AST SpaceMobile.