Astra(US:ASTR)2024-04-17 22:03Financial Position - As of June 30, 2023, the company's cash and cash equivalents, along with marketable securities, totaled approximately $26.3 million[13]. - The company reported cash and cash equivalents of $3.949 million as of December 31, 2023, down from $33.644 million in 2022, indicating a significant decrease of approximately 88.3%[174]. - Total current assets decreased to $31.449 million in 2023 from $125.782 million in 2022, reflecting a decline of about 74.9%[174]. - The company incurred an accumulated deficit of $1.998 billion as of December 31, 2023, compared to $1.820 billion in 2022, representing an increase in the deficit of approximately 9.8%[174]. - The total liabilities increased to $152.859 million in 2023 from $92.389 million in 2022, marking an increase of about 65.5%[174]. - The total stockholders' (deficit) equity was $(75.439) million in 2023, a decrease from $82.310 million in 2022, indicating a significant decline in equity[174]. - The company has substantial doubt about its ability to continue as a going concern due to incurred operating losses and additional capital needs[168]. - The company has incurred significant operating losses and believes its current level of cash is insufficient to fund commercial scale production and sale of its services and products[199]. - There is substantial doubt about the company's ability to continue as a going concern for at least one year from the date of issuance of the consolidated financial statements[199]. Financing Activities - The company raised $12.5 million through Senior Secured Notes due 2024, with a 9.0% annual interest rate, secured by a first priority interest in all assets[13]. - An initial financing transaction on November 6, 2023, raised approximately $13.4 million, including $8.0 million in Original Notes and $3.05 million in senior secured bridge notes[14]. - The company closed a Subsequent Financing on November 21, 2023, conforming the terms of secured notes and raising an additional $3.0 million in Convertible Notes[14]. - The company raised gross proceeds of approximately $13.9 million through the sale of Convertible Notes and Common Stock Purchase Warrants after December 31, 2023[199]. - The company is restricted from incurring new debt or issuing equity except through the offer and sale of Convertible Notes and Company Warrants under the terms of the Merger Agreement[199]. Revenue and Profitability - Total revenues for the year ended December 31, 2023, were $3,874 million, a decrease from $9,370 million in 2022[177]. - Gross profit for the year was $2,062 million, compared to a gross loss of $20,160 million in 2022[177]. - Operating loss for the year was $(121,475) million, significantly improved from $(418,852) million in the previous year[177]. - Net loss for the year ended December 31, 2023, was $(178,376) million, compared to $(411,438) million in 2022[179]. - Revenue from Space Products increased to $3.874 million in 2023 from $3.471 million in 2022, indicating growth in this segment[233]. - Revenue from Launch Services was $5.899 million in 2022, while no revenue was recorded for Launch Services in 2023 due to the suspension of operations[233]. Employee and Workforce Changes - The company underwent a strategic restructuring, reallocating approximately 50 personnel and laying off about 70 employees, reducing the workforce by approximately 25%[13]. - As of December 31, 2023, the company employed 193 full-time employees, with 18% being women and 23% from historically underrepresented groups[34]. Merger Agreement - The company entered into a Merger Agreement on March 7, 2024, which will result in it ceasing to be a publicly traded company[16]. - Each Class A Share will be converted into the right to receive $0.50 per share in cash as part of the Merger Agreement[17]. - The Merger Agreement was approved by stockholders holding approximately 66.3% of the total voting power of the outstanding Common Shares[21]. - The Minimum Cash Amount required under the Merger Agreement is approximately $2.56 million[19]. - All outstanding Convertible Notes will convert into shares of Series A preferred stock upon the Merger's effectiveness[18]. Stock and Equity - The company had authorized a total of 466 million shares of stock, including 400 million shares of Class A Common Stock and 65 million shares of Class B Common Stock, with 18,885,500 and 3,702,613 shares issued and outstanding respectively[289]. - A reverse stock split was approved at a ratio of 1-for-15, effective September 13, 2023[290]. - The company issued 3,708,520 shares of Class A Common Stock as part of the settlement with Apollo Stockholders, with an additional cash payment of $2,000,000[260]. - The company has significant stock options and warrants outstanding, totaling 10,784,068 as of December 31, 2023, compared to 1,507,221 in 2022[318]. Research and Development - Research and development is crucial for the company, focusing on the design and qualification of Launch System 2, which is expected to enhance market capabilities significantly[32]. - Research and development expenses for the year were $95,408 million, down from $140,666 million in 2022[177]. - The Company has two operating segments: Launch Services and Space Products, with segment reporting recast to conform to current period presentation[200]. Legal and Regulatory Matters - The Company has engaged in ordinary litigation, including a stockholder derivative suit, which is currently stayed pending resolution of related securities litigation[285]. - The Company believes the ongoing litigation is without merit and intends to defend it vigorously[285]. Market and Economic Conditions - The company is exposed to inflation risk, with potential increases in raw material and overhead costs impacting future operating results[162]. - The company has not yet faced material market risks but anticipates exposure to foreign currency exchange rate and commodity price risks as operations expand[159].