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Astra Space Reports Zero Revenue as Cash Reserves Dwindle

By Doug Messier
Parabolic Arc
May 17, 2023
Filed under , , , , ,
Astra Space Reports Zero Revenue as Cash Reserves Dwindle
Astra Space launch vehicle.
Image credit: Astra Space.

Struggling launch and propulsion provider Astra Space (Nasdaq: ASTR) reported zero revenue and a $44.9 million net loss for the first quarter on Monday amid dwindling reserves of cash and securities and “substantial doubt” about the company’s survival.

Astra ended the first quarter with $62.7 million in cash, cash equivalents, and marketable securities. Cash and cash equivalents totaled $16.8 million with $45.9 million in marketable securities.

Astra Space First Quarter 2023 Key Statistics
(In thousands of dollars)

First Quarter 2023First Quarter 2022
Cost of Revenue$0$11,014
Gross Loss$0$7,103
Net Loss$44,893$86,280
Net Loss Per Share$0.17$0.33
Adjusted EBITDA Loss$42,315$47,478

“The Company evaluated whether there are any conditions and events, considered in the aggregate, that raise substantial doubt about its ability to continue as a going concern over the next twelve months through May 2024. Since inception, the Company has incurred significant operating losses and has an accumulated deficit of approximately $1.9 billion,” Astra said in a May 15 filing with the Securities and Exchange Commission (SEC).

“The Company believes that its current level of cash and cash equivalents and marketable securities are not sufficient to fund commercial scale production and sale of its services and products. These conditions raise substantial doubt regarding its ability to continue as a going concern for a period of at least one year from the date of issuance of these unaudited condensed consolidated financial statements,” the company said.

Astra has filed with the SEC on Tuesday to raise $100 million through the sale of preferred and common stock, debt securities, debt warrants, equity warrants, rights, and units.

“We currently intend to use the net proceeds from the sale of securities under this prospectus for general corporate purposes,” the company said in its filing. “Our general corporate purposes include, but are not limited to, capital expenditures, funding possible acquisitions, working capital and satisfaction of other obligations. We have not determined the amount of net proceeds to be used specifically for the foregoing purposes. As a result, our management will have broad discretion over the allocation of the net proceeds.”

Astra officials announced the company entered into an $11.45 million contract with the U.S. Space Force for a launch on the company’s new Rocket 4. The booster, which is set to begin flight tests late this year, will replace Rocket 3.3. Astra ended the development of Rocket 3.3 last year after multiple failures.

“We have made significant progress in the development of Launch System 2 and look forward to our first flight of Rocket 4. In the past few weeks, we unveiled our new Rocket 4 production line and a Rocket 4 fit check, a combination of qualification and acceptance tested hardware,” said Chairman and CEO Chris Kemp.

“We also commenced operations from our dedicated Astra Spacecraft Engine production facility in late March 2023. I have been impressed with how hard the Space Products team has worked to address some initial challenges expected with a new manufacturing operation and to achieve significant milestones on our customer programs,” Kemp added.

Astra Space's Spacecraft Propulsion Kit
Spacecraft Propulsion Kit. Image credit: Astra Space.

Astra recently announced it would provide five Spacecraft Propulsion Kits for Apex Technology’s satellite bus platform. The kits are a disaggregation of the four subsystems of the Astra Spacecraft Engine.

Astra officials said they are moving to reduce expenses.

“We have reduced quarterly cash burn by approximately $8 million in Q1 2023 and expect to reduce quarterly cash burn by an additional $7 to $10 million in Q2 2023. Additionally, we are thoughtfully evaluating financing opportunities to further extend our financial runway,” said CFO Axel Martinez.

Last month, Nasdaq gave Astra an additional 180 days – until Oct. 2 – to get its stock price to $1.00 or face delisting from the stock exchange. The stock closed down 9.6 percent at $0.35 on Tuesday.

Astra Space’s Financials

Astra Space’s first-quarter financials, as well as excerpted disclaimers from the company’s press release, are below.

Astra Space, Inc.
Condensed Consolidated Statement of Operations
(Unaudited, in thousands, except per share data)

 Three Months Ended March 31, 2023 Three Months Ended March 31, 2022
Launch services$ $3,911
Space products   
Total revenues   3,911
Cost of revenues     
Launch services   11,014
Space products   
Total cost of revenues   11,014
Gross loss   (7,103)
Operating expenses     
Research and development 31,082  37,927
Sales and marketing 2,484  4,764
General and administrative 15,682  20,986
(Gain) loss on change in fair value of contingent consideration (2,765) 15,500
Total operating expenses 46,483  79,177
Operating loss (46,483) (86,280)
Interest income 1,330  174
Other income 260  393
Loss before taxes (44,893) (85,713)
Income tax provision   
Net loss$(44,893)$(85,713)
Basic and diluted loss per share     
Weighted average basic and diluted shares – Class A 214,707  208,113
Loss per share$(0.17)$(0.33)
Weighted average basic and diluted shares – Class B 55,539  55,539
Loss per share$(0.17)$(0.33)

Astra Space, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands)

  March 31, 2023 December 31, 2022
Cash and cash equivalents $16,805 $33,644
Marketable securities  45,944  69,173
Trade accounts receivables  6,798  5,327
Inventories  6,925  6,588
Prepaid and other current assets  12,437  11,050
Total current assets  88,909  125,782
Property, plant and equipment, net  26,432  24,271
Right-of-use asset  11,903  12,813
Intangible assets, net  9,566  10,132
Other non-current assets  1,872  1,701
Total assets $138,682 $174,699
Liabilities and Stockholders’ Equity:      
Accounts payable $6,901 $1,799
Operating lease obligation, current portion  3,779  3,800
Contingent consideration  31,135  33,900
Accrued expenses and other current liabilities  42,761  42,043
Total current liabilities  84,576  81,542
Operating lease obligation, net of current portion  8,254  9,051
Other non-current liabilities  2,597  1,796
Total liabilities  95,427  92,389
Total stockholders’ equity  43,255  82,310
Total liabilities and stockholders’ equity $138,682 $174,699

Astra Space, Inc.
Summary of Cash Flow Data
(Unaudited, in thousands)

  Three Months Ended March 31, 2023Three Months Ended March 31, 2022
Cash used in operating activities $(35,999)$(48,274)
Capital expenditures  (5,031) (20,942)
Free cash flow (non-GAAP)  (41,030) (69,216)
Cash used in investing activities  18,719  (115,683)
Cash provided by financing activities  441  471

Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
(Unaudited, in thousands)

  Three Months Ended March 31, 2023 Three Months Ended March 31, 2022
Launch services $ $3,911
Space products    
Total revenues    3,911
Cost of revenues      
Launch services    11,014
Space products    
Total cost of revenues    11,014
GAAP gross loss $ $(7,103)
GAAP net loss $(44,893)$(85,713)
Stock-based compensation  5,328  17,041
(Gain) loss on change in fair value of contingent consideration  (2,765) 15,500
Apollo cash earnout compensation    1,333
Other special items    1,693
Adjusted net loss $(42,330)$(50,146)
Interest income  (1,330) (174)
Realized loss on investment    67
Depreciation and amortization  1,345  2,775
Adjusted EBITDA $(42,315)$(47,478)

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