Astra(US:ASTR)2023-03-29 16:00Launch Achievements - Astra successfully launched vehicle LV0007 into orbit on November 20, 2021, achieving an altitude of 500 km and a velocity of 7.61 km/s, marking it as one of the fastest U.S. companies to demonstrate orbital placement[9] - The company has conducted three commercial launches to date, delivering a total of 23 satellites into low Earth orbit[9] - Astra plans to conduct its first test launch of Launch System 2 by the end of 2023, with commercial launches expected to commence in 2024[9] Business Strategy and Market Position - Astra announced 237 cumulative committed orders for the Astra Spacecraft Engine by November 8, 2022, with the business completing its second customer program[11] - The space economy grew by 8% to $464 billion in 2022, with Astra's strategy focused on capturing a significant share of this market through increased launch capabilities and production scaling[12] - Astra's Launch System 2 is designed to service 80% of the addressable satellite market, aiming to lead the market in lowest cost launch[12] Facilities and Production Capacity - The company moved into a new 60,000 square feet production facility in Sunnyvale, California, with an expected annual capacity of almost 500 units for the Astra Spacecraft Engine[12] - The company has two manufacturing facilities and two test facilities totaling over 300,000 square feet, designed for scaled operations[17] Workforce and Diversity - As of December 31, 2022, Astra had 359 full-time employees, primarily based in the San Francisco Bay Area, with a focus on attracting and retaining talent[18] - Approximately 22% of full-time employees are women and 34% belong to historically underrepresented groups, reflecting the company's commitment to diversity[19] - The company has a focus on employee development and succession planning to build a pipeline of talent[19] Financial Position and Performance - As of December 31, 2022, the company had $21.9 million in cash equivalents and $69.2 million in marketable securities, primarily for working capital purposes[134] - Total assets decreased to $174.7 million from $499.0 million in 2021, representing a decline of approximately 65%[156] - The company reported a net loss of $411,438,000 for the year ended December 31, 2022, compared to a net loss of $257,782,000 in 2021[160] - The accumulated deficit grew to $1.82 billion in 2022, compared to $1.41 billion in 2021, indicating an increase of approximately 29%[156] Impairments and Liabilities - The company reported a non-cash impairment charge of $58.3 million for goodwill, fully impairing the goodwill balance[149] - A non-cash impairment charge of $72.1 million was recorded for property, plant, and equipment, reflecting significant impairment indicators[152] - Total current liabilities increased to $81.5 million in 2022, up from $40.7 million in 2021, marking an increase of approximately 100%[156] Revenue and Expenses - Total revenues for the year ended December 31, 2022, were $9,370,000, compared to no revenues in 2021[158] - Research and development expenses increased to $140,666,000 in 2022, up from $80,398,000 in 2021, reflecting a growth of 75%[158] - Total operating expenses for 2022 were $398,692,000, significantly higher than $154,561,000 in 2021, indicating a rise of 158%[158] Regulatory and Market Risks - The company has been granted commercial space transportation licenses by the FAA for its Rocket v3.0 and Rocket v3.3, effective through March 9, 2026, and plans to seek similar licenses for Rocket 4[23] - The company is subject to stringent U.S. import and export control laws, including ITAR and EAR, which could impact its ability to compete and operate effectively[25] - The company may face additional financial costs due to potential changes in FCC regulations affecting its satellite operations[24] Future Outlook and Funding Needs - The company has substantial doubt about its ability to continue as a going concern due to operating losses and additional capital needs[143] - The company needs to raise substantial additional funds through debt or equity financing to proceed with its business plan[174] - The company anticipates no material impact from recently issued accounting standards on its financial position or results of operations[207] Stock and Equity - The Company has authorized a total of 466,000,000 shares of stock, including 400,000,000 shares of Class A common stock and 65,000,000 shares of Class B common stock, as of December 31, 2022[272] - The 2021 Omnibus Incentive Plan reserved 36.8 million shares of Class A common stock for issuance, with an increase of 13.1 million shares on January 1, 2022[276] - The Company entered into a Common Stock Purchase Agreement with B. Riley, allowing the sale of up to $100.0 million of Class A common stock over a 24-month period[274] Legal and Compliance Matters - The Company intends to defend against ongoing litigation, including the Securities Action and Gonzalez Action, which are currently in early stages[266] - The Company has a retention of $20.0 million under its Directors' and Officers' policy for legal claims[267]