Airborne Wireless Network (OTCMKTS:ABWN) moved into the wireless broadband market through its creative idea of broadband wireless networks. With its innovative product which has been a success so far, the firm has begun to attract interest in the market. In this piece, we reveal the details of the company, analyze its finances and discuss its possible future outlook.Take a look at the price movement in the past year. ABWN Daily ChartCompany ProfileAirborne Wireless Network was established in January 2011 and its head office is located in Simi Valley, California. It is a developmental stage firm which specializes in the marketing, development and licensing of wholesale broadband wireless networks which are airborne. This is accomplished by the linking of commercial aircraft while in flight, which is otherwise known to be the Infinitus.Recent DevelopmentsUsing Infinitus, the firm can enable participating aircraft to act as airborne routers or repeaters through the sending and receiving of broadband signals across in-flight and ground stations. The firm intends to sell this broadband wireless bandwidth to Internet service providers and telecommunications firms. As of now, Airborne Wireless has already put in place a software development collaboration contract with Thinking Different Technologies to handle the development of software for the Infinitus system and another manufacturing and design services agreement with Mynaric AG. Until May 2016, the firm was known as Ample-Tee, Inc. after which it was changed to Airborne Wireless Network.In March 2018, the firm announced that it had gone into an agreement with a California based South Bay Aviation firm, Torrance to provide two aircraft to be used for the imminent second flight examination of the Infinitus Super Highway network.The firm plans to enlarge its original RF proof of concept test, which was concluded nearly a year ago through the use of two Boeing 767-300ER aircraft as well as a mobile mast which emulates a ground station. The firm plans to carry out a set of two-plane tests using two modified light aircraft for the Infinitus Super Highway Technology and incorporating Free Space Optics which is controlled by RF this is to be done against its patent application which was filed in July 2017.The principal purpose of these tests is to use the intrinsic unbalanced platform of the light general aviation airplane to maintain and establish a strong self-healing Optical or Radio Frequency link between two airborne aircraft.Airborne wireless plans to develop a quick broadband airborne wireless network through the linking of commercial aircraft in flight. It has been estimated that each airplane which is participating on the network will be made to act as an airborne repeater or router, sending and receiving broadband signals from one aircraft to the next and creating a digital information superhighway in the sky. The Company plans for the network to be a high-level broadband internet which is fast, and a means to improve coverage and connectivity. The firm’s plans do not include coverage to retail customers as well as end users. Rather, it acts as a wholesale carrier with target customers, such as internet service providers and telephone companies.Presently, global interconnectivity is achieved through the use of undersea cables, ground-based fiber, and satellites. As a result, there have been hypotheses that the firm’s airborne digital highway could play a critical role in filling the world's connectivity void.Financial PerformanceFor 2017, there were no revenues recorded, continuing a trend on no revenues from as far back as 2014. It is expected that in years to come and as demand for the Infinitus System grows, the firm will eventually get out of this growth phase and generate revenues from its sale.In the same period, the firm recorded research and development expenses of $1.1 million, its first investment in research and development. Clearly, the investments have been successful, especially with a product with is commercially viable. It also recorded a company high SGA expense of $33 million during the year. As it currently has no operating income, operating loss for the year was recorded at $36.4 million. It should be noted that it is a regular trend for developing companies to be unable to generate revenues while still incurring costs in the growth years.Net loss for the year was $36.9 million, a distance away from the previous year figures, an indicator that the firm has had major a change in operations over the year.The statement of financial position reveals that the firm is highly geared. On its books, its total debt is worth $0.4 million, resulting in a debt-to-equity ratio of 3.97. Encouragingly, it also has a very stable liquidity ratio of 1.19ConclusionThe Infinitus system is an innovation that could revolutionize networking and this can only be positive for Airborne Wireless in the near future.Disclosure: We have no position in ABWN and have not been compensated for this article. We have previously been compensated a fee of six thousand dollars by a third party via bankwire for a 2 day awareness campaign on ABWN.
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