Good afternoon, everyone, and welcome to the NextNav's Fourth Quarter and Full Year 2021 Earnings Conference Call. Participating on today's call are Gary Parsons, NextNav's Chairman; Ganesh Pattabiraman, NextNav's Co-Founder and CEO; and Chris Gates, NextNav's Chief Financial Officer. Before we begin, please note that during today's presentation, the company may make forward-looking statements, either in our prepared remarks or in the associated question-and-answer session. 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 statements about NextNav's position to drive growth in its 3D geolocation business and expansion of its next generation GPS platform, the business plans objectives, expectations and intentions of NextNav, NextNav's partnerships and the potential success thereof and NextNav's estimated and future business strategies, competitive position, industry environment and potential growth opportunities. These payments are based on current expectations or beliefs and are subject to certain risks and uncertainties that may cause actual results to differ materially. 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 forward-looking statements. These risks, uncertainties, assumptions, and other important factors include, but are not limited to the ability of NextNav to continue to gain traction in key markets, with notable platforms and partners, both within the U.S. and internationally; the ability of NextNav to grow and manage growth profitably, maintain relationships with partners, customers and suppliers, including with respect to NextNav's Pinnacle 911 solution and it's TerraPoiNT network, and the ability to maintain its management and key employees; the ability to maintain balance sheet, flexibility and generate, effectively deploy capital in line with its business strategies; the possibility that NextNav may be adversely affected by other economic business and/or competitive factors, including the impact of the ongoing COVID-19 coronavirus pandemic; other risks and uncertainties indicated from time to time documents filed with Securities and Exchange Commission by NextNav. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. 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. Those factors that may impact our performance are identified in our most recent SEC filings. Following our prepared remarks, the company will host an operator led question-and-answer session. [Operator Instructions]. In addition, at the conclusion of today's call, a replay of our discussion will be posted to the company's Investor Relations website. With that, I'll turn the call over to NextNav Chairman, Gary Parsons. Please go ahead.

Thank you very much, Taniya, and welcome, everyone, to NextNav's fourth quarter earnings conference call. Actually, before we get into discussions of our business, I think we have to first express our deep concern and give sincere condolences to those who are bearing the brunt of this tragedy unfolding in Ukraine. Simply put, all of us at NextNav, both as a company and as individuals denounce this senseless violence and brutality and really hope that the situation can be resolved with this little additional suffering and hardship as possible. It's undeniably been a difficult few years for businesses, governments supply chains and individuals and families, first with COVID, now with this active armed conflict. But through it all, this must go on, and particularly because we provide the essential public safety and national security services that are a unique attribute of our technology. Also, just as a quick administrative note, we have posted a short investor presentation to go along with our earnings material and our conversations and remarks this quarter. For those of you who are listening today on the webcast platform, the presentation deck is available there on the platform for your review during our remarks. You can also download it on the Investor Relations website under the Events & Presentations section if you prefer, we hope you'll take a few moments to review that. And with that, let's go ahead and move into the business aspects of today's call. I'll start by providing a quick overview of NextNav's business strategy and industry positioning. Then, I'll hand it over to NextNav's CEO, Ganesh Pattabiraman and take a deeper dive into the business outlook and the new customer wins. Chris Gates, NextNav's CFO will then wrap up with a review of the financials. And we'll -- we think we've…

Thanks, Gary. Welcome everyone to the call. As we’ve noted in our press release, we had a very strong year and we accomplished a significant amount of throughput throughout the year in 2021. But before I get into our comments in a little bit more detail, I would like to express our solidarity with the people of Ukraine. As a person who's been to Kyiv many times in my youth is quite devastating to see the state of the city and the country. And I do hope common sense prevails quickly and peace returns to Ukraine. And with that, let's turn over to the business in 2021. So 2021 was quite a busy year for us at NextNav. Not only did we take the company public through a successful reverse merger with Spartacus Acquisition Corp., but we also made great strides on the operational front building out our Pinnacle and TerraPoiNT technologies, while also signing several new strategic partnerships across industry verticals, and across various markets. Let me delve into these in a little bit more detail, starting with the Pinnacle service. As we've noted previously, the Pinnacle network is available in 4,400 markets across the U.S. As a reminder, this is a passive network that does not use our spectrum asset. Rather the Pinnacle network provides the most accurate floor level altitude with existing GPS or Wi-Fi based horizontal location technologies that the industry provides. This past year, we commercially launched our service with AT&T FirstNet to provide highly accurate altitude capabilities for first responders on the FirstNet network. And so that was a very significant milestone for us as public safety has started using these services. As we shared previously, the FCC is also requiring carriers to meet z-axis location requirements for 911 beginning in April of 2022.…

Thanks, Ganesh, and thank you everyone for joining us today. We're excited to share our progress over the fourth quarter and the full year, as well as what makes us excited about the future. For those of you who are new to NextNav, as Gary and Ganesh highlighted, the closure of our transaction with Spartacus Acquisition Corp. in October was a momentous event in the life of our company. And we're very pleased with the results of the transaction which featured in oversubscribed PIPE with notable long-term shareholders, I think that Gary highlighted, and that allowed us to exit debt free with well over $100 million of cash after paying all our transaction expenses. So this has provided us with capital and capital markets access, but it's also increased the visibility of our company commercially. As Gary and Ganesh highlighted, we accomplished many milestones at group platform and ecosystem during the year, which we're confident places us on a solid path for growth. For the year ended 2021, we built our customers $2.4 million, including over $1.6 million built in the fourth quarter, which resulted in full year GAAP revenue of approximately $800,000. And we currently have a deferred revenue item on our balance sheet of $1.6 million. As we ramp our business, we anticipate -- we've talked about this on past calls discussing our business and growth, we do anticipate periodic and potentially irregular differences between recognizing deferred revenue, especially when we bring major new customers on board as occurred in the fourth quarter of this year. Our full year operating loss was $43.2 million, which included $1.7 million in stock compensation expense, $1.8 million in depreciation and amortization and $9 million in warrant expense related to consideration provided to AT&T for hosting elements of our Pinnacle network. Adding…

[Operator Instructions] First question is from the line of Mike Crawford with B. Riley Securities.

Just starting with E911, given that you're working to integrate your absolute vertical solution into the large nationwide wireless carriers' network, just ahead of the deadline, does that mean that none of the carriers are going to meet the deadline? Or do we know what the other two large national carriers are doing?

This is Gary, I'll handle this first and then maybe Ganesh can weigh-in in that as well too. Because we're integrating from a technology standpoint differently with different carriers, because they each have their own particular way in which they want to interface with their network for 911 location. But regarding trying to meet the April date, there's a mass scramble that is going on. But I think it's also a situation where as you'll remember, they're under a consent decree for having missed the original deadline. And they put forward a plan to move as quickly as they could to do that. We do believe that they are making efforts towards doing that. But how many of them will be actually in operation for a comprehensive amount of their handsets and customer base at that point in time, is something that they are working with the Enforcement Bureau at the FCC. And the clear and simple fact is, the deadline that they had proposed of bumping it out the year has given them some breathing room, but they're still under significant pressure to do so. And that has what led obviously to the agreements we've reached and also with the implementations that we're technically taking on with a number of the different carriers. But since it is in enforcement at the FCC, we really can't speak to that. That's pretty much confidential between the FCC and the individual carriers. They don't necessarily even publicly say what's going on there.

Thanks, Gary. So, as part of NextNav’s business combination with Spartacus, there was one point in time a revenue forecast that was $2 million in fiscal '21, $24 million in '22, ramping at $506 million in 2026. Now, with the deSPAC, given the large number of redemptions, you now have $100 million of cash, which is great, so you can build out at least TerraPoiNT in the most important markets initially. But my understanding is you're not giving revenue guidance for '22 but can you make any comments on pace or scope of TerraPoiNT spend and or build out at this point, or what we should think about longer term macro revenue projections?

Yes. Let me kind of address some of that and then maybe Chris can kick in, particularly. I mean, like you mentioned, the $2 million 2021 number that was back in the original PIPE roadshow. And the reason we're cautious about how we do those projections going forward is, there are lumps that come in, in big chunks, as you see it, particularly for some of these large network integrations. And from a build standpoint or something, we were over $2 million. All of it didn't fall to the recognized revenue yet, because it hasn't been completed. So you'll see some elements of that. But we're obviously continuing to believe that not only the growth of Pinnacle, but also the international expansion, which you'll remember was a significant portion of the growth that we were showing in the outer years will take place. Now, I think we mentioned earlier that -- or go back to the PIPE timeframes and the very first conference call that we had as well too, that we were not necessarily projecting immediate revenue from government sources, on the federal government side. I mean, obviously, we're assigning individual things and we had gotten some grants from DHS and others. I would say right now that while we never want to be in a situation of projecting the government to take certain actions, we're feeling pretty good about the fact that it is being increasingly recognized across various agencies. The needs of it. Obviously, the urgency highlighted by the current conflict in Ukraine, but also there is even just in the recently passed budget. I mean, this was not a future thought or proposal. That's the actual budget for Department of Transportation that has been goosed a bit to move them to the next stage a bit and the infrastructure bill provided some additional funding as Ganesh noted in the DHS budget. But some of it is specifically targeted towards resilient GPS. And then separately, DoD has budgetary allocations for that, although our work with [DoT] at this point in time has been somewhat less than that. We've been more focused with the critical commercial infrastructure in the United States versus Department of Defense needs overseas. So that's just a recapitulation of that. Chris, do you have anything to add both on what we see right now, both in this quarter and this year's returns, and others?

Well, I think we want to be a little bit cautious, as we said about looking too far into the future, especially, as we look at -- as you highlighted, in 2022. In 2021, we were in fact able to build even ahead of our early expectations on the business. And I think we're very happy about that. But in a lumpy way and of course, there are differences in terms of how you report revenue versus especially certain types of billings, under the various contract structures, which we've talked about in the past. So, Gary, I think that captures a lot of it. The other thing that I would point out is that with respect to 2022, we've never had in our plan broad TerraPoiNT deployments in this year. We had always suggested that -- and we're still planning our TerraPoiNT deployment really in the 2023 and beyond timeframe for that system to become available in a broad way. We do have some markets and some at various stages of deployment, and have some capabilities there. But the broad CapEx program associated with the nationwide deployment of that system really is a 2023 and beyond project. And that's consistent with what we've been talking about.

Yes, and just two maybe sort of emphasize that point. I think -- this is Ganesh, what we've -- what we are doing is exactly sort of what we had projected in 2021, '22 and '23 is a lot of our revenue focus and -- will come from Pinnacle, and will come from the rollout of the service, not just in the U.S., but internationally. And then -- and I think we are absolutely on path to doing that. And as we mentioned, a lot of activities in regarding TerraPoiNT in '22 and '23 are really geared towards building the product to scale, services scale, and then the markets and doing network design and all of those elements. So I think all of those elements are continuing as per plan. And there hasn't been any sort of material change in direction and how we were envisioning this.

Okay. Maybe I'll just ask one more and then stop. But you mentioned Italy, what's going on in Italy and clearly with the strong terrestrial signal you can broadcast with the TerraPoiNT solution, that would be much harder for Russians or anyone else to jam. So that's great but what about with MetCom in Japan where you're testing Pinnacle and TerraPoiNT I believe in the Kyoto region. Is there any update there?

Yes, so I’ll take this one. So MetCom is continuing to make progress in Japan as we I think noted, they launched up -- they're trialing both the Pinnacle and the TerraPoiNT service. Obviously, the Ministry has given them allocated 5 megahertz of spectrum on an experimental basis right now to assess the viability of TerraPoiNT from Japanese market. And so that is going through its paces with the Ministry on what they believe are hopeful to being sort of in approval in a couple of years. On the Pinnacle side, they do have deployment for a trial basis in the Osaka region. And those, right now they are doing trials with a variety of entities that they have I think publicly disclosed. SATCOM is one of them and you see -- and a handful of other companies. And I think they're collecting good data, and we remain positively inclined, that that is going to then translate into a commercial rollout of Pinnacle in Japan, similar to the U.S. probably earlier than the TerraPoiNT service as these trials mature.

The next question is from the lien of Tim Horan with Oppenheimer.

Thanks, guys. There's obviously a lot going on. But do you think the increased federal subsidies here in the United States and increased awareness in Europe, I mean can it have a material change to the business model? You think you can get 10s of millions or 100s of millions of subsidies here or abroad? Or do you think the Ukrainian war will lead to accelerated buildouts as awareness kind of increases both here and abroad?

Hey, Tim, that's probably the billion dollar question there. It clearly is focusing the attention. It's not like governments or even the military in any of these locations weren’t aware of this already, moving towards it already. As we noted in our comments, the whole European Commission trial that took place in Italy, I mean we've been working on that since fourth quarter last year trying to get ready to prepare to do it. So it was something that they knew they wanted to do just like it's bipartisan and supported in the United States over all of these years. I think the real question, hard to handicap right now is how much does a clearly visible high visibility situation where the vulnerabilities are not only obvious, they're being exploited. I mean, right now. And I know Ganesh can probably go into more of this because he's following very closely and from all of his time in Europe is very close to the things that they're encountering over there. But it's in that. And I think it's clearly known, if we have operational ready to go, thanks. And the problem is, this is a system that needs to be deployed before the problem happens. It's not something that you can award spectrum, build out a terrestrial network, boom, in reaction to a problem. Everybody now understands you got to get ahead of the ball. And so I think that is providing significant motivation. It's also providing significant interest and assertions from Congress. I mean Congress previously had sort of, to a certain extent allowed DoT and DHS to just be leading by that effort that they were going forward. Now, they're clearly not only putting the funding behind it, but specifically asking that certain paths to be completed by certain non-brands. So, yes, we’re seeing what that all turns into. But clearly, as business people, we have to take that into account and work closely with those parties, both in the United States and in Europe and in Asia. I mean, obviously, Japan came up with a spectrum kind of overnight to put that trial in place with MetCom. Europe was able to do it for the trial purposes, but would have to be more comprehensive to get something that would be [EUI] for deployment. So at this point in time, I guess all of us would love to say, hey, give it X percent probability within X period of time. We just don't have that level of certainty on it. All we know is that we now have a highly engaged set of agencies and congressional committees and countries, particularly across Europe, that are meaningfully trying to figure out how they can ensure that this is in place before they have a more desperate need for it.

Yes, I mean I think you mentioned right. Yes, I would basically say -- yes, I think the awareness level obviously has gone up significantly. And the interest in desire to do something I think has gone up. How that translates I think we will have to see, but I think we remain hopeful.

The next question is from the line of Jaime Perez with RF Lafferty.

Now, given the issues with semiconductors and supply chain, I mean any risk to networks, either Pinnacle or Terra start being to rollout and deployment being pushed back or any issues you might foresee there?

I’ll let Ganesh handle that mostly, because he's pretty on touch with that. Fortunately, I mean, the good news is our Pinnacle network is built out. So it's there we were able to work through the supply chain issues to make sure that we got it out and deployed. And it doesn't require -- I mean, it's only software with enhanced test to be able to operate it. So for the Pinnacle side of this equation, that really isn't a significant element. But Ganesh you can walk through whatever you feel is appropriate relative to the TerraPoiNT implementations.

Yes, I mean, so I think as noted earlier, I mean, right now, for TerraPoiNT, we are working through a lot of the sort of getting the product ready to scale type of effort, and that involves the hardware, software, et cetera. I think the -- for the efforts that we currently have underway, we don't see there to be a material impact, because it's not -- we're not procuring thousands of parts to get. But as we get closer to the end of the year, et cetera, we would continue to monitor that situation and evaluate it. But for sort of our immediate needs on TerraPoiNT, we don't see any material impact there on building the link platform.

Now, focusing on some of the end market like the Metaverse, any update on that? I mean, we see on the news about virtual real estate, and it's something that your product gets the idea for especially location of exact real estate on to Meta?

Yes, it's quite fascinating. We're definitely quite -- it's amazing to see how that is playing out but -- and values that are being ascribed. But yes, I mean, I think we are absolutely seeing a lot of activities in realizing the Metaverse and the elements required for it. And this is in line with sort of the announcement we made last year with Atlas Reality, which was essentially selling real estate in the virtual world. And there they needed our location capability not just to determine where you are, but also as a method to prevent fraud so that users don't spoof their location. We are seeing -- I mean, because of the work and interest we're seeing in the ecosystem, as we noted, we got included in the Metaverse -- map of Metaverse technologies that are required to enable the plat capability. So the market map of Metaverse by Jon Radoff. And so that was quite exciting to see that. We believe -- I mean, we're seeing a lot more activity there right now, as various game developers and publishers are beginning to build the capabilities to support that type of virtual reality. And so we remain very optimistic on that space. And we're investing heavily to help support the different app developers to make sure their development and implementation can be eased as much as possible.

And I have one more question. Let me turn it back to the European. I mean right now we're seeing developed countries are being attacked by another country. And of course, the infrastructure is being destroyed at first. One, first you do is take out the communications. I mean, it could -- I mean, terrestrial, correct me if I’m wrong, is based on cell towers. Could that be taken underground, hidden away from let's say any potential physical threat to it?

This is Gary. I'll hit a little bit there maybe first and Ganesh you can go in more detail on it. But I mean the advantage of the TerraPoiNT transmitters being around is they aren't necessarily on the same towers that the telecom sites are. Sometimes they are, but you actually need different locations, so you get the different architecture or geometry of the signals coming in from different directions. So, they normally would not in that case, they're not valid out by the capabilities that are just hitting telecom infrastructure. The other value is obviously much easier to jam. And that's what's happening right now, not only spoofing of the GPS satellites, but also jamming them. We've got maps that are published now from third-party, showing the amount of jamming that's going on across the Ukrainian theater, and actually countries all bordering around there as well, too. But with a signal that's 100,000 times more powerful. And the fact that across a large city, say like Kyiv, it might be 50, 60, 70 different transmitter locations. So it's much more robust and difficult to take out. The bigger thing is, if you're trying to protect timing, which is one of the key elements of the power grid in telecom networks, and things like that, you really only have to see one of our towers. You don't need to see 4 which you would need to get a full location, you only need to see 1 to get the timing aspects.

Yes. Let me add a couple of points here. So the fundamental problem with GPS is that it is a space-based signal. And so it is very easy to jam and spoof, and what the Russians are doing from their side of the border, or from places like Belarus is they are able to put very strong jammers that can cover large parts of Ukraine without having to send in any equipment or infrastructure. So that's the problem with any sort of space-based system. The advantage we have is, because we are terrestrial and because we are geographically diverse in our deployment, you don't have just one site in a given location you have 10s or hundreds of sites, depending on how big the market is. The likelihood of knocking each one of those out is low. And even if you do, there's the -- because we can listen to the signal below the noise floor, you actually are able to detect far more towers than you would for a communication system. And so that makes it a much more robust platform, that even if some sites are taken out, you can get signal from the others to then provide the appropriate functionality for the longer term. So I think that is part of the security. I mean, ultimately, any of these -- all the technologies, et cetera, platform, it's introducing greater degrees of resilience to make it more and more difficult for third parties to act nefariously and take it out easily.

I will now turn the conference over to Gary Parsons for any concluding remarks.

Well, thank you very much, Taniya. Thanks, everybody, for joining us. We feel very good about our 2021. We're looking forward to 2022 when some of this deferred revenue will start turning into realized revenue, and hopefully as we move forward with the government in trying to see what we can do to deploy TerraPoiNT further to protect critical infrastructure. We thank you very much for joining us on today's call and look forward to our next time together. Thanks a lot.

That concludes the NextNav Q4 2021 Earnings Call. Thank you for your participation. You may now disconnect your lines.