Astra Space Reports Zero Revenue as Cash Reserves Dwindle

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)

“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 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)

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

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

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