Astra(ASTR) - 2024 Q1 - Quarterly Report

PART I. FINANCIAL INFORMATION This section provides Astra Space, Inc.'s unaudited condensed consolidated financial statements and management's discussion and analysis for the quarter ended March 31, 2024 Item 1. Condensed Consolidated Financial Statements (Unaudited) This section presents Astra Space, Inc.'s unaudited condensed consolidated financial statements for Q1 2024, including balance sheets, statements of operations, comprehensive income, equity, cash flows, and detailed notes Condensed Consolidated Balance Sheets This section details the company's financial position, presenting assets, liabilities, and stockholders' deficit at specific reporting dates | Metric (in thousands) | March 31, 2024 | December 31, 2023 | | :-------------------- | :------------- | :---------------- | | Total Assets | $78,164 | $77,420 | | Total Liabilities | $111,857 | $152,859 | | Total Stockholders' Deficit | $(33,693) | $(75,439) | - Total liabilities decreased by approximately $41 million, primarily driven by a significant reduction in warrants to purchase common stock and convertible notes[9] - Stockholders' deficit improved from $(75.4) million to $(33.7) million, reflecting a positive change in equity[9] Condensed Consolidated Statements of Operations This section presents the company's financial performance, detailing revenues, expenses, and net income or loss over specific periods | Metric (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------- | :-------------------------------- | :-------------------------------- | | Total Revenues | $285 | $0 | | Gross Profit (Loss) | $157 | $0 | | Operating Loss | $(24,385) | $(46,483) | | Net Income (Loss) | $38,129 | $(44,893) | | Basic EPS (Class A) | $1.68 | $(2.49) | | Diluted EPS (Class A) | $(0.46) | $(2.49) | - The company reported net income of $38.1 million for Q1 2024, a significant improvement from a net loss of $44.9 million in Q1 2023, primarily due to gains on changes in fair value of Convertible Notes and Warrants[11] - Revenues for Space Products were $285 thousand in Q1 2024, up from zero in Q1 2023, while Launch Services generated no revenue in either period[11] Condensed Consolidated Statements of Comprehensive Income (Loss) This section presents the company's total comprehensive income or loss, encompassing net income and other comprehensive income items | Metric (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------- | :-------------------------------- | :-------------------------------- | | Net Income (Loss) | $38,129 | $(44,893) | | Total Comprehensive Income (Loss) | $38,129 | $(44,824) | - Total comprehensive income for Q1 2024 was $38.1 million, a substantial increase from a comprehensive loss of $44.8 million in Q1 2023, aligning with the net income improvement[15] Condensed Consolidated Statements of Stockholders' Equity (Deficit) This section details changes in the company's stockholders' equity or deficit, reflecting net income, stock-based compensation, and equity issuances | Metric (in thousands) | December 31, 2023 | March 31, 2024 | | :-------------------- | :---------------- | :------------- | | Total Stockholders' Deficit | $(75,439) | $(33,693) | | Stock-based compensation | $3,509 | - | | Issuance of common stock under equity plans | $108 | - | | Net income | $38,129 | - | - The total stockholders' deficit decreased from $(75.4) million at December 31, 2023, to $(33.7) million at March 31, 2024, primarily due to net income of $38.1 million[18] Condensed Consolidated Statements of Cash Flows This section summarizes the company's cash inflows and outflows from operating, investing, and financing activities over specific periods | Metric (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------- | :-------------------------------- | :-------------------------------- | | Net cash used in operating activities | $(12,593) | $(35,999) | | Net cash (used in) provided by investing activities | $(33) | $18,719 | | Net cash provided by financing activities | $14,302 | $441 | | Net increase (decrease) in cash and cash equivalents | $1,676 | $(16,839) | - Net cash used in operating activities significantly decreased from $(36.0) million in Q1 2023 to $(12.6) million in Q1 2024[22] - Net cash provided by financing activities increased substantially to $14.3 million in Q1 2024, primarily from the issuance of convertible notes and warrants, compared to $0.4 million in Q1 2023[22] Notes to Unaudited Condensed Consolidated Financial Statements This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements, covering accounting policies, financial instruments, and significant events Note 1 — Description of Business, Basis of Presentation and Significant Accounting Policies This note outlines Astra Space, Inc.'s business, accounting policies, and significant events, including a proposed merger, reverse stock split, and going concern disclosure - Astra's business consists of two segments: Launch Services (mobile orbital launch system) and Space Products (Astra Spacecraft Engine® products)[26] - On March 7, 2024, the Company entered into a Merger Agreement to be acquired by Apogee Parent Inc., which is expected to close in Q2 2024, resulting in the company no longer being publicly traded[29] - The Company effectuated a 1-for-15 reverse stock split on September 12, 2023, retroactively adjusted for all periods presented[30] - Substantial doubt exists about the Company's ability to continue as a going concern for at least one year due to significant operating losses ($2.0 billion accumulated deficit) and insufficient cash ($6.6 million cash and cash equivalents as of March 31, 2024) to fund commercial scale production[36] Note 2 — Revenues This note details the Company's revenue recognition, disaggregating revenue by type, and outlining contract balances and remaining performance obligations, with all Q1 2024 revenue from Space Products | Revenue Type (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------- | :-------------------------------- | :-------------------------------- | | Launch services | $0 | $0 | | Space products | $285 | $0 | | Total revenues | $285 | $0 | - Contract liabilities increased to $49.6 million as of March 31, 2024, from $40.4 million at December 31, 2023, reflecting consideration received in advance of performance[46] - The Company had $70.0 million in unsatisfied performance obligations as of March 31, 2024, expected to be recognized between October 2024 and 2028[47] Note 3 — Supplemental Financial Information This note provides detailed breakdowns of inventories, prepaid assets, property, plant and equipment, and accrued liabilities, noting changes in work-in-progress inventory and deferred contract costs | Metric (in thousands) | March 31, 2024 | December 31, 2023 | | :-------------------- | :------------- | :---------------- | | Inventories | $16,831 | $15,375 | | Prepaid and other current assets | $8,737 | $9,181 | | Property, plant and equipment, net | $2