1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Valuation
Discussion
Symbol
MYNA
Event Date
2021-11-12
Sector
Communication Services
Subsector
Diversified Telecommunication Services
Offer Range
$16.50-$16.50
Shares Offered
4M
$355.9M
Implied Upside vs Midpoint
Description
We believe we are a leading developer and manufacturer (in terms of production capacity) of advanced laser communication technology for aerospace communications networks in government and commercial markets. Laser communication networks provide connectivity from the sky, allowing for high data rates and secure, long-distance data transmission between moving objects for wireless terrestrial, airborne- and space-based applications. Our technology and products are designed to provide the backbone for connectivity to link satellites, high-altitude platforms, unmanned aerial vehicles, aircraft and the ground with secure wireless data transmission. We aim to industrialize laser communication by focusing on standardization and cost-efficiency. We believe that we are one of the first companies to develop laser communication technology at commercially attractive price points for use in both government and commercial markets. By leveraging our strong technical expertise and early mover advantage, we aim to become the go-to supplier for the “internet above the clouds.” Laser communication offers significant technical and operational advantages for wireless data transmission compared to other wireless communication systems, which mostly use radio frequency (“RF”) technologies to transmit information. RF-based communication is generally characterized by lower bandwidth, significant license requirements and a wide beam divergence, which makes it much more susceptible to interception. Laser communication, on the other hand, benefits from its higher bandwidth capacity, lower latency, improved security, lower power requirements and a license-free spectrum. Laser communication has achieved world record transmission rates of 13.16 terabits per second (according to the German Aerospace Center, “DLR”), as compared to RF’s maximum transmission rate of 36 gigabits per second (according to the Facebook Connectivity Lab). Current demand for laser communication is predominantly driven by government applications in defense, surveillance, intelligence and border control, which seek to leverage the superior capabilities of laser communication. With its significant advantages and wide range of applications, laser communication is highly attractive for the development of next-generation communication networks, in particular for space and airborne applications. We were founded in 2009 by former scientists of the DLR and have invested in developing and optimizing our laser communication technology, which we are now commercializing. We have developed pre-serial product versions of our flagship CONDOR inter-satellite link terminal and our HAWK airborne terminal, and are currently ramping up serial production to enable customers to deploy our technology at scale. We believe that we are one of a few companies offering a commercially viable laser communication terminal solution combining light weight, robustness, high data rate and high power efficiency at attractive prices. In 2020, we were awarded two contracts by Telesat and another customer for our CONDOR terminals in connection with two U.S. governmental programs launched by the Defense Advanced Research Projects Agency (“DARPA”) and the Space Development Agency (“SDA”), respectively. Most recently, on October 31, 2021, we entered into a strategic agreement with Northrop Grumman International Trading, Inc. (“NG”) pursuant to which we will serve as a strategic supplier to NG and will exclusively develop and sell to NG jointly developed laser communication solutions for use in or relating to space where the ultimate customer is a U.S. government customer. We may also collaborate on the development of laser communications for aerospace and defense applications outside the space sector. Under the agreement, NG will provide us over the next five years with the opportunity to sell and provide products and/or related services to NG in the aggregate amount of $35 million. With respect to our HAWK terminals, we received an order from a major U.S. aerospace and defense company, which allows us to introduce our HAWK terminals to the U.S. government market. We believe that these contracts offer significant potential to scale the number of terminals we may provide for these government programs and allow us to gain early access to additional prospective customers. We also believe that the introduction of laser communication technology at commercially attractive price points has the potential to create a significant market for laser communication for years to come. We aim to industrialize laser communication by focusing on developing standardized and modularized products suitable for a wide array of customers and applications. We have benefited from advancing on the learning curve with the development of the pre-serial product versions of our CONDOR and HAWK terminals, as we continuously seek to decrease the costs of deploying laser communication. By moving from singular prototype production to pre-serial production levels, we have already reduced our material costs per unit by around 80%. We are currently ramping up serial production and we expect to be able to increase production output from eleven terminals in 2020 to 50 terminals in 2021 and target a per year production rate of up to 2,000 units going forward. While the majority of our terminals produced in 2020 were used for internal and external test and demonstration campaigns, most of the units produced in 2021 are intended for customer delivery. We expect to continue to incur significant expenses related to the ramp-up of serial production, the further development of our technology and products as well as the expansion of our sales and marketing activities. We intend to use the net proceeds from this offering and, to the extent required, proceeds from future financings, to cover these expenses. We are in the early phases of serial production and have only recently begun to monetize our technology. Our revenue amounted to €1,349 thousand for the six month period ended June 30, 2021 and €679 thousand for 2020. Our operating loss (EBIT) amounted to €16,240 thousand in the six month period ended June 30, 2021 and we reported a net loss of €16,077 thousand for the same period. In 2020, operating loss (EBIT) amounted to €19,257 thousand and we reported a net loss of €19,770 thousand. We manage our business based on our two operating segments, which are also our reportable segments in accordance with IFRS 8. Our two reportable segments include our Space segment, which currently comprises our flagship CONDOR terminal, and our Air segment, which currently comprises our flagship HAWK terminal. Our measure of segment profitability for each reportable segment is operating profit / (loss) (EBIT). --- Our business was initially conducted through ViaLight Communications GmbH, a limited liability company (Gesellschaft mit beschränkter Haftung) under German law, which was incorporated on June 15, 2009. In preparation for our initial public offering on the Frankfurt Stock Exchange, the shareholders of ViaLight Communications GmbH decided to incorporate a new entity in the form of a German stock corporation (Aktiengesellschaft) to serve as a holding company for the Mynaric group (formerly ViaLight Communications group). Accordingly, in August 2017, the initial shareholders of ViaLight Communications GmbH, through a series of transactions, contributed their equity interests in ViaLight Communications GmbH and its subsidiaries to Blitz 17-625 AG, a German stock corporation (Aktiengesellschaft), against the issuance of new ordinary shares in Blitz 17-625 AG. Subsequently, in August 2017, our general shareholders’ meeting resolved to change our legal name from Blitz 17-625 AG to Mynaric AG. Our principal executive offices are located at Dornierstraße 19, 82205 Gilching, Federal Republic of Germany. Our telephone number is +49 (0) 8105 79990. Our website address is www.mynaric.com.
Mynaric AG annual income statement and balance sheet, FY 2020 to FY 2023, as reported in SEC filings (EUR).
| Metric | FY 2020 | FY 2021 | FY 2022 | FY 2023 |
|---|---|---|---|---|
| Revenue | EUR 679K | EUR 2.4M | EUR 4.4M | EUR 5.4M |
| Operating income | (EUR 19.3M) | (EUR 42.4M) | (EUR 73.8M) | (EUR 79.2M) |
| Net income | (EUR 19.8M) | (EUR 45.5M) | (EUR 73.8M) | (EUR 93.5M) |
| Metric | FY 2020 | FY 2021 | FY 2022 | FY 2023 |
|---|---|---|---|---|
| Total assets | — | EUR 108M | EUR 80.3M | EUR 119M |
| Total liabilities | — | EUR 23.1M | EUR 52.5M | EUR 168M |
| Total equity | EUR 70.7M | EUR 84.9M | EUR 27.8M | (EUR 49.3M) |
| Cash & equivalents | EUR 43.2M | EUR 48.1M | EUR 10.2M | EUR 24.0M |