Astra's 2021 business plan did not last very long. Astra's new business plan is not clear… bankruptcy in 2023?
On August 4, 2022 Astra announced the following:
- They are abandoning Rocket 3.3 (which had a 60% failure rate) and focusing on development of a new Rocket 4.0.
- They are doubling the design target for the payload capacity of Rocket 4.0 (which was just announced May 12, 2022) from 300 kg to 600 kg to LEO.
- Astra is not planning to have any additional launches in 2022.
- Base price for launches will double from $2.5 million for Rocket 3.3 to $5 million for Rocket 4.0.
- Astra announced they may not resume commercial revenue generating launches in 2023. Resumption of commercial launches will be dependent upon Rocket 4.0 development and testing progress.
- At the end of June (2Q), the company had $200.7 million in cash equivalents and marketable securities.
- Astra is losing more than $50 million each quarter.
- The company has access to a $100 million equity facility via B. Riley Financial.
What's the plan now?
In 2021, the company presented the following business plan as a basis for the SPAC merger:
After the 2Q company update, Astra appears to be completely “off the rails” relative to the 2021 business plan and strategy.
Based on the recent updates, Astra's business plan to achieve profitability is not clear. However what is clear, is that without significant revenue in 1H 2023 (which appears to be highly unlikely), or significant investment, the company is likely to run out of money before June of next year. While the company has announced they have access to a $100 million equity facility, that facility may not remain accessible to them if their progress continues to be unpredictable.
For more information on Astra see this article Insights into Astra Space.
Additional information for the curious