Astra $ASTR Q3 resultsAdj. EBITDA loss: $41.4mRevenue: $2.8mCash: $150.5mLaying off ~16%Spacecraft Engine orders up to 237
CEO Chris Kemp: "We made the difficult but prudent decision to reduce our operating expenses to support our primary near-term objectives."Astra aims to begin test flying its Rocket 4.0 "in the latter part of 2023." $ASTR
$ASTR CFO Axel Martinez: “Top two priorities” are Spacecraft Engine and Rocket 4.0 development, and “optimizing our cost structure .. to increase our runway into 2024.”
QuoteAstra $ASTR Q3 resultsAdj. EBITDA loss: $41.4mRevenue: $2.8mCash: $150.5mLaying off ~16%Spacecraft Engine orders up to 237At this burn rate they have less than a year of runway left. Laying off staff means it could take longer for Rocket 4.0 to be completed.
Astra should put Rocket development on as slow a burner as possible while still maintaining in-house rocket development competency, focus on the lucrative mass market Hall thruster business, then electric satellite buses, and perhaps once they become a major player in LEO, they will have the finances and ideally also the first-party demand (like Starlink) for an RLV program. The Hall thrusters are the key to their future.
Quote from: butters on 11/09/2022 05:01 pmAstra should put Rocket development on as slow a burner as possible while still maintaining in-house rocket development competency, focus on the lucrative mass market Hall thruster business, then electric satellite buses, and perhaps once they become a major player in LEO, they will have the finances and ideally also the first-party demand (like Starlink) for an RLV program. The Hall thrusters are the key to their future.I clearly wasn't paying enough attention, but since when (prior to the recent reorganizations) did Astra have ion engine expertise, and why would they be competitive against more established providers, of which there are a fair number even when discounting pre-sanctions Russian/Chinese providers?
Thanks! Since I'm on a roll exhibiting my ignorance: how much of the "cash" from the Q3 report upthread is tied up in stock, if any, and how much of it is understood to have come from Apollo Fusion?EDIT: Some quick googling threw the figure of $50M ($30M cash + $20M stock), is that accurate? If so, does that mean half of their valuation at the moment comes from that part of the company, if not more considering most of their business plan now revolves around that area, so its relative weight should have increased?
The contingent consideration requires the Company to pay $75.0 million of additional consideration to Apollo’s former shareholders and option-holders, if Apollo meets certain customer revenue related milestones over a two and half year period ending on December 31, 2023. The contingent consideration is earned, which is a combination of total contract value and relevant payout ratio, if the contract with the customer is entered into after the acquisition date and 25% of revenue under the contract is recognized by December 31, 2023 under ASC 606. Contingent consideration is payable on a quarterly basis based on the milestones achieved. The fair value of the contingent consideration arrangement at the acquisition date was $18.4 million. The Company estimated the fair value of the contingent consideration using a Monte Carlo simulation model. This fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement as defined in ASC 820. As of June 30, 2022, the contingent consideration recognized increased to $31.0 million as a result of changes in forecasted revenues subject to milestone payments and the passage of time. The Company has recognized $12.6 million in cumulative net losses on changes in fair value of contingent consideration from the Apollo Acquisition Date, of which $1.8 million and $17.3 million in loss was recognized in the condensed consolidated statement of operations for the three and six months ended June 30, 2022, respectively.An additional $10.0 million of cash ("Cash Earnout") will be paid to employees of Apollo that joined Astra, subject to certain vesting conditions, as amended. The Cash Earnout is accounted for as compensation expense over the requisite service period in the post-acquisition period as the payment is subject to the employee's continued employment with the Company. The Company has recognized $8.4 million in compensation cost from the Apollo Acquisition Date, of which $1.2 million and $2.6 million in compensation cost was recognized in research and development expense in the condensed consolidated statement of operations for the three and six months ended June 30, 2022, respectively. The earned, but unpaid, amount of the Cash Earnout of $3.6 million and $3.9 million is recorded within accrued expenses and other current liabilities in the condensed consolidated balance sheet as of June 30, 2022 and December 31, 2021, respectively.
[<snip>Even better, their contract with the previous owners of Apollo has a clause that if Apollo hits its performance targets, they owe them another $85 million in cash by the end of next year to make up for performance-based bonuses that were cancelled due to the acquisition. So they can either go bankrupt from not selling any product, or from having to pay out performance bonuses. It's nice to have a choice.<snip>
Quote from: niwax on 11/09/2022 06:20 pm[<snip>Even better, their contract with the previous owners of Apollo has a clause that if Apollo hits its performance targets, they owe them another $85 million in cash by the end of next year to make up for performance-based bonuses that were cancelled due to the acquisition. So they can either go bankrupt from not selling any product, or from having to pay out performance bonuses. It's nice to have a choice.<snip>Just out of curiosity. If Astra goes bankrupt. Can the industry do without the Apollo Fusion Hall thrusters?
If Firefly can survive all the crap it went through, major lawsuits and a restructuring and abandoning aerospikes and then having war in Ukraine force their main owner to liquidate their shares... nearly dying at least twice before reaching orbit, I don't think we can totally write-off Astra already.
Quote from: Robotbeat on 11/10/2022 01:50 amIf Firefly can survive all the crap it went through, major lawsuits and a restructuring and abandoning aerospikes and then having war in Ukraine force their main owner to liquidate their shares... nearly dying at least twice before reaching orbit, I don't think we can totally write-off Astra already.Firefly is arguably a lot more valuable than Astra. Not only do they have a bigger rocket but they have presumably good engines and a lunar lander with a NASA contract.
Quote from: imprezive on 11/10/2022 03:18 pmQuote from: Robotbeat on 11/10/2022 01:50 amIf Firefly can survive all the crap it went through, major lawsuits and a restructuring and abandoning aerospikes and then having war in Ukraine force their main owner to liquidate their shares... nearly dying at least twice before reaching orbit, I don't think we can totally write-off Astra already.Firefly is arguably a lot more valuable than Astra. Not only do they have a bigger rocket but they have presumably good engines and a lunar lander with a NASA contract.Neither are guarantees of viability (e.g. Masten also had a CLPS contract and plenty of well tested engines).
