AST SpaceMobile, Inc. Fair Value Disclosure
The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows (in thousands):
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As of December 31, 2024 |
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Level 1 |
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Level 2 |
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Level 3 |
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Assets: |
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Cash equivalents |
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$ |
510,424 |
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$ |
- |
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$ |
- |
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Total assets measured at fair value |
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$ |
510,424 |
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$ |
- |
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$ |
- |
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Liabilities: |
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Private placement warrant liability |
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- |
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- |
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41,248 |
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Total liabilities measured at fair value |
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$ |
- |
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$ |
- |
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$ |
41,248 |
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As of December 31, 2023 |
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Level 1 |
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Level 2 |
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Level 3 |
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Assets: |
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Cash equivalents |
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$ |
69,661 |
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$ |
- |
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$ |
- |
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Total assets measured at fair value |
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$ |
69,661 |
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$ |
- |
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$ |
- |
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Liabilities: |
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Public warrant liability |
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$ |
18,707 |
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$ |
- |
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$ |
- |
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Private placement warrant liability |
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- |
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11,253 |
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- |
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Total liabilities measured at fair value |
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$ |
18,707 |
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$ |
11,253 |
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$ |
- |
|
As of December 31, 2024 and December 31, 2023, the Company had $567.5 million and $88.1 million of cash and cash equivalents and restricted cash, respectively, of which $510.4 million and $69.7 million, respectively, were classified as cash equivalents, which consists principally of short-term money market funds with original maturities of 90 days or less. As of December 31, 2024 and December 31, 2023, restricted cash of $2.5 million represents a deposit into an interest reserve escrow account for the terminated senior secured credit facility, and a deposit against the bank guaranty issued to the landlord for lease of a property. For certain instruments, including cash, accounts payable, and accrued expenses, it was estimated that the carrying amount approximated fair value because of the short maturities of these instruments.
On September 27, 2024 (“Redemption Date”), the Company completed the redemption of all of its outstanding publicly issued warrants (“Public Warrants”) to purchase shares of its Class A Common Stock. Following the Redemption Date, the Company had no Public Warrants outstanding. In connection with the redemption, the Public Warrants ceased trading on the Nasdaq and were delisted.
As of December 31, 2024, warrant liabilities were comprised of private placement warrants (“Private Placement Warrants”), which have been classified as Level 3 due to the use of historical volatility of the Company’s shares and implied volatility derived from options on the Company’s shares. Warrant liabilities are described in detail in Note 8 Warrant Liabilities.
As of December 31, 2023, warrant liabilities were comprised of both Public Warrants and Private Placement Warrants, exercisable for shares of Class A Common Stock. The Public Warrants were classified as Level 1 due to the use of an observable market quote in an active market under the ticker “ASTSW”. The Private Placement Warrants were classified as Level 2 as the transfer of Private Placement Warrants to anyone outside of a small group of individuals who are permitted transferees would result in the Private Placement Warrants having substantially the same terms as the Public Warrants. For this reason, the Company determined that the volatility of each Private Placement Warrant was equivalent to that of each Public Warrant.
The Private Placement Warrants are valued using a Black-Scholes-Merton model. The Company’s Black-Scholes-Merton model to value Private Placement Warrants required the use of the following subjective assumption inputs:
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 3, 2025 | Showing above |
| 2022 | Mar 31, 2023 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.