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Astra’s new business plan is… bankruptcy in 2023?

's 2021 business plan did not last very long. Astra's new business plan is not clear… bankruptcy in 2023?

2Q Results

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 .
  • 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.

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

Astra's new business plan is… bankruptcy in 2023?

DON'T TELL ANYONE! Astra Space Inc. has a “dirty little secret” buried deep in their SEC filings…

Astra Space Inc. – Strengths, Weaknesses, Opportunities, and Threats (SWOT)

How did the TROPICS smallsats end up using a launch service provider with a 100% failure rate?

The next 6 months may determine if Astra has a future or is relegated to the dustbin of history…

Can it get any worse? New space economy SPAC companies performance over last 52 weeks (as of June 30, 2022)

Class Action Lawsuit (and other lawsuits) Filed Against Astra

A quick look at Astra's CEO compensation & Top Astra milestones over the next 5 years

7 Space Companies Added to Russell 3000 Index

What does the future hold for Astra?

At Astra, failure is an option

Can Astra Really Compete With Rocket Lab?

Astra Materials

Astra SEC filings

Astra Insider Trading SEC Report

Market data

List of Astra's rocket launches

Small Satellite Launchers index

Satellite Constellations Index

European Rocket Index

NASA Awards Large Service Contract for TROPICS Mission to Study Storm Processes, February 26, 2021

Astra Launch Graphics and YouTube Videos

Source: @spaceintellige3

Source: @spaceintellige3

Source: @spaceintellige3

Source: @spaceintellige3

Source: @spaceintellige3

Source: @spaceintellige3

Source: @spaceintellige3

Source: @geoffdbarrett



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