Mynaric Stock

Mynaric AG operates as a developer and manufacturer of advanced laser communication technology for aerospace communications networks in government and commercial markets.

The company's technology and products are designed to provide the backbone for connectivity to link satellites, high-altitude platforms, unmanned aerial vehicles, and aircraft with potential future use on ships, mobility platforms and fixed locations on the ground. The company develops laser communication technology for use in both government and commercial markets.

The company has invested in developing and optimizing its laser communication technology, which it is commercializing. The company has developed pre-serial product versions of its CONDOR inter-satellite link terminal and its HAWK airborne terminal, and is ramping up serial production to enable customers to deploy its technology at scale.

In 2020, the company was awarded contracts by Telesat and another customer for its CONDOR terminals in connection with two separate U.S. governmental programs launched by the U.S. Defense Advanced Research Projects Agency (DARPA) and the U.S. Space Development Agency (SDA), respectively. In October 2021, the company entered into the Strategic Agreement with Northrop Grumman (NG) pursuant to which it 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 the U.S. government customer.

In connection with the agreement, the company entered into a definitive agreement with NG in March 2022 for the delivery of optical communication terminals for the transport layer Tranche 1 of the SDA's Proliferated Warfighter Space Architecture (PWSA) satellite constellation. In October 2022, the company received an additional order from NG for 42 CONDOR terminals as part of the SDA's Tranche 1 tracking layer program. In January 2023, the company entered into a definitive agreement with a new, undisclosed U.S.-based customer for the delivery of CONDOR terminals.

With respect to its HAWK terminals, the company received an order for two terminals from an affiliate of L3Harris. In July 2022, the company agreed with L3Harris on a strategic cooperation framework pursuant to which it will serve as preferred provider of laser communication solutions to L3Harris and L3Harris, in return, was granted certain collaboration privileges.

In November 2022, the company delivered a set of multiple HAWK terminals for an initial test campaign to a new commercial U.S.-based energy customer. In addition, the company delivered a small number of HAWK terminals to a U.S.-based government customer in 2022. It sees sizeable demand for laser communication capabilities by customers focusing on maritime applications and mobility platforms on the ground for which the HAWK terminal, while primarily developed for airborne applications, may function as a satisfactory demonstration system to evaluate the company's product's performance and define upcoming product needs. The company is in the early phases of serial production and have only recently begun to monetize its technology.

Operations

The company's laser communication technology and products are designed to provide the backbone for connectivity to link satellites, aircraft, unmanned aerial vehicles (UAVs) and high-altitude platform stations to the ground. The company has introduced two distinct product families for laser-enabled communication in air and space, its CONDOR inter-satellite link flight terminal and its HAWK airborne flight terminal. The company manufactures its own products in its customized facility in southern Germany, which boasts state-of-the-art production capabilities. While it sourced the majority of the components for its products from third-party suppliers, the company started to insource important components, such as the production of the metal telescope.

Products

The company has two principal product families, including CONDOR, an optical inter-satellite link flight terminal providing for satellite-to-satellite communications in space; and HAWK, an airborne flight terminal providing for air-to-air and air-to-ground links of airborne vehicles. The company has developed and delivered pre-serial production versions of each of these products to initial customers and are ramping up initial serial production.

In addition to the company's space- and airborne products, it develops demonstration prototypes of its ARMADILLO and RHINO ground terminals, and has restarted related product development activities for its ground terminals as use cases and demand are emerging. The company's ARMADILLO and RHINO ground terminals are designed to offer high-speed access points for air-to-ground and space-to-ground communication scenarios, respectively.

Product Roadmap

The company has a track record of designing and manufacturing space and airborne laser communication terminals that deliver superior technological results and performance. In 2012, the company developed an initial prototype of an airborne laser terminal. With this initial prototype, the company demonstrated, together with Airbus, the maturity and readiness of laser communication in an air-to-ground scenario in 2013, reaching a data rate of 1.25 Gbit/s-a world record in data transmission via laser communication technology. The company continuously developed and tested a variety of components and specifications to further improve its technology and completed its second prototype, with which it conducted several internal test and demonstration missions. The company developed its first demonstration prototype of its airborne laser terminal, of which it sold a number of units to initial customers, including Facebook. Following further refinement of its technology and components, the company completed the development of pre-serial product versions of its CONDOR and HAWK terminals.

Segments

The company operates through two segments, Space (which comprises its CONDOR terminal) and Air (which includes its flagship HAWK terminal).

Space Terminals

In the company's Space segment, it offers its CONDOR terminal, which is designed to be attached to satellites in order to establish connections between satellites. The company's CONDOR terminal provides the backbone for inter-satellite connectivity in low Earth orbit (LEO). It is capable of establishing links for inter-plane scenarios independent of satellite motion with coarse pointing assembly, as well as intra-plane connections without coarse pointing assembly. Use cases for the company's CONDOR terminal include among others, government and military secured communication, backbone connectivity for optical mesh networks for commercial satellite constellations and in-orbit optical relay links for surveillance and Earth observation satellites.

Air Terminals

In the company's Air segment, it offers its HAWK terminal for air operations, which is installed on airborne vehicles and provides high-speed laser connections between aircraft, balloons, drones and other unmanned aerial vehicles (UAVs). The company's HAWK terminal is designed for air-to-air and air-to-ground scenarios by using advanced sensor technology. Use cases include among others, ultra-secure connectivity for ISR missions of UAVs in defense theaters, the establishment of temporary or regionally limited optical mesh networks to provide broadband connectivity and general high-speed UAV connectivity for government and commercial applications.

Ground Terminals

The company sold both its ARMADILLO and RHINO prototypes to initial customers, including Facebook, for testing and demonstration purposes. In 2017, the company tested, in collaboration with Facebook, its HAWK prototype in combination with its ARMADILLO prototype and beat its own previously established world record by successfully demonstrating the viability of the company's technology through a series of tests culminating in a 10 Gbps air-to-ground transmission from a moving aircraft. The company has restarted related product development activities for its ground terminals as use cases and demand are emerging.

Go-To-Market Strategy

The company is a sub-system supplier in the aerospace-based communication industry providing products to system primes, such as aircraft and satellite manufacturers, and in certain cases to system operators. Its largest market is North America, specifically the United States and Canada. The company also focuses on selling its products into select other countries, such as Israel, Japan, South Korea, India, and Western European countries.

Customer Acquisition

The company has a diverse network across the government market, including relationships with a number of system primes who contract with government agencies for the installation and integration of large space- and airborne-based communication systems. To participate in certain U.S. government programs, the company has established a new U.S. subsidiary, Mynaric Government Solutions, Inc., and has commenced the process of insulating this entity from foreign ownership, control or influence (FOCI) to be able to receive access to U.S. classified information.

In the commercial market, the company targets companies aiming to establish smaller Earth observation and surveillance constellations for its CONDOR terminals. For its HAWK terminals, the company focuses on UAV and unmanned aircraft system builders who work with customers requiring significant data and increased bandwidth for their applications, as well as on other markets for which the HAWK terminal version serves as a satisfactory demonstration system of its product's capabilities.

In addition to its direct sales and marketing activities, the company has developed a global network of distributors for its airborne laser-based communication products. For example, for its HAWK terminal, the company has distribution relationships in Australia, Israel and Japan and it is working to establish additional partnerships in other jurisdictions, such as India and South America.

Intellectual Property

The company has non-exclusive licenses from third parties for the use of certain components in its products. For example, it entered into a license agreement with a German technology research institute in September 2020 under which it was granted a limited, non-exclusive license to manufacture certain optical components based on the know-how and the intellectual property of the institute. The license agreement has a term until December 31, 2034. The company owns six trademarks and 37 internet domain names.

Research and Development

For the year ended December 31, 2022, the company's research and development expenditure totaled €19,096 thousand.

Regulation

Under German criminal law, the company must comply with the rules against corruption and bribery of public officials (Sections 332, 334 of the German Criminal Code (Strafgesetzbuch)) or private sector employees or business representatives (Section 299 of the German Criminal Code), as well as rules against the taking and giving of bribes meant as an incentive to violating one's official duties (Sections 331, 333 of the German Criminal Code).

Competition

The company's main direct competitors include, among others:

TESAT Spacecom, an Airbus subsidiary, specializing in the production of payload equipment for communication satellites;

Thales Alenia Space, a joint venture between Thales and Leonardo, which designs, operates and delivers satellite-based systems that help customers position and connect;

SA Photonics, subsidiary of CACI International Inc., specializing in free space optical communications, fiber lasers and optical sensing systems;

Ball Aerospace, a Ball Corporation subsidiary, specializing in the development and testing of terrestrial-based applications for laser technology;

General Atomics Electromagnetic Systems, an affiliate of General Atomics, which designs and builds complex payloads, optical communication terminals and integrated support systems; and

SpaceMicro, a San Diego-based supplier of space electronics and satellite components in which Voyager Space recently acquired a majority stake.

History

Mynaric AG was founded in 2009. The company was incorporated under German law in 2009.