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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________ to _____________

Commission File Number: 001-39426

 

ASTRA SPACE, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

14-1916687

( State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

1900 Skyhawk Street

Alameda, CA

94501

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (866) 278-7217

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Class A Common Stock, par value $0.0001 per share

 

ASTR

 

The NASDAQ Global Select Market

Warrants to purchase one share of common Stock, each at an exercise price of $11.50

 

ASTRW

 

The NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

Accelerated filer

 

Non-accelerated filer

 

 

Smaller reporting company

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes  ☐    No  

As of August 9, 2021, the registrant had 200,876,916 shares of Class A common stock, $0.0001 par value per share, outstanding and 56,239,189 shares of Class B common stock, $0.0001 par value per share, outstanding.

 

 

 


 

Table of Contents

 

 

 

Page

 

 

 

PART I.

FINANCIAL INFORMATION

 

 

 

Item 1.

Financial Statements (Unaudited)

2

 

Condensed Consolidated Balance Sheets

 

 

Condensed Consolidated Statements of Operations

 

 

Condensed Consolidated Statements of Temporary Equity and Stockholders' Deficit

 

 

Condensed Consolidated Statements of Cash Flows

 

 

Notes to Unaudited Condensed Consolidated Financial Statements

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

29

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

37

Item 4.

Controls and Procedures

38

 

 

 

PART II.

OTHER INFORMATION

40

 

 

 

Item 1.

Legal Proceedings

40

Item 1A.

Risk Factors

40

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

61

Item 3.

Defaults Upon Senior Securities

61

Item 4.

Mine Safety Disclosures

61

Item 5.

Other Information

61

Item 6.

Exhibits

62

Signatures

63

 

 

 

i


 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

ASTRA SPACE, INC.
CONDENSED CONSO
LIDATED BALANCE SHEETS
(In thousands, except share and per share data)

(Unaudited)

 

 

 

As of

 

 

 

June 30, 2021

 

 

December 31, 2020

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

447,456

 

 

$

10,611

 

Restricted cash

 

 

4,931

 

 

 

 

Inventories

 

 

1,832

 

 

 

649

 

Prepaid and other current assets

 

 

5,377

 

 

 

485

 

Total current assets

 

 

459,596

 

 

 

11,745

 

Non-current assets:

 

 

 

 

 

 

Property, plant and equipment, net

 

 

29,326

 

 

 

24,069

 

Right-of-use asset

 

 

9,603

 

 

 

 

Trademark

 

 

3,200

 

 

 

 

Other non-current assets

 

 

76

 

 

 

77

 

Total assets

 

$

501,801

 

 

$

35,891

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

6,180

 

 

$

2,474

 

Operating lease obligation, current portion

 

 

1,649

 

 

 

 

Accrued expenses and other current liabilities

 

 

5,505

 

 

 

4,390

 

Long-term debt, current portion

 

 

4,850

 

 

 

41,132

 

Long-term debt, current portion due to related parties

 

 

 

 

 

10,503

 

Total current liabilities

 

 

18,184

 

 

 

58,499

 

Non-current liabilities:

 

 

 

 

 

 

Long-term debt

 

 

 

 

 

7,286

 

Warrant liabilities

 

 

56,786

 

 

 

 

Operating lease obligation, net of current portion

 

 

7,681

 

 

 

 

Other non-current liabilities

 

 

2,136

 

 

 

1,685

 

Total liabilities

 

 

84,787

 

 

 

67,470

 

 

 

 

 

 

 

Commitments and Contingencies (Note 11)

 

 

 

 

 

 

 

 

 

 

 

 

TEMPORARY EQUITY

 

 

 

 

 

 

Series A convertible preferred stock, $0.0001 par value; none authorized, issued and outstanding as of
   June 30, 2021;
44,017,454 shares authorized, and 43,744,059 shares issued and outstanding as of
   December 31, 2020, net of issuance cost

 

 

 

 

 

15,922

 

Series B convertible preferred stock, $0.0001 par value; none authorized, issued and outstanding as of
   June 30, 2021;
47,406,862 shares authorized and 47,024,227 shares issued and outstanding as of
   December 31, 2020, net of issuance costs

 

 

 

 

 

92,907

 

Total temporary equity

 

 

 

 

 

108,829

 

 

 

 

 

 

 

STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

Founders convertible preferred stock, $0.0001 par value; none authorized, issued and outstanding as of
   June 30, 2021;
12,302,500 shares authorized, issued and outstanding as of December 31, 2020

 

 

 

 

 

1

 

Class A common stock, $0.0001 par value; 400,000,000 and 176,225,000 shares authorized as of June 30, 2021
   and December 31, 2020, respectively;
198,090,903 and 15,679,758 shares issued and outstanding as of
   June 30, 2021 and December 31, 2020, respectively

 

 

20

 

 

 

2

 

Class B common stock, $0.0001 par value; 65,000,000 and 61,512,500 shares authorized as of
   June 30, 2021 and December 31, 2020;
56,239,189  and 47,281,500 shares issued and outstanding as of
   June 30, 2021 and December 31, 2020, respectively

 

 

6

 

 

 

4

 

Additional paid in capital

 

 

797,263

 

 

 

50,282

 

Accumulated deficit

 

 

(380,275

)

 

 

(190,697

)

Total stockholders’ deficit

 

 

417,014

 

 

 

(140,408

)

Total liabilities, temporary equity and stockholders’ deficit

 

$

501,801

 

 

$

35,891

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

2


 

ASTRA SPACE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)

 

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

$

10,458

 

 

$

7,221

 

 

$

22,435

 

 

$

15,532

 

Sales and marketing

 

 

1,125

 

 

 

 

 

 

1,189

 

 

 

 

General and administrative

 

 

18,318

 

 

 

3,861

 

 

 

30,931

 

 

 

6,983

 

Total operating loss

 

 

(29,901

)

 

 

(11,082

)

 

 

(54,555

)

 

 

(22,515

)

Interest expense, net

 

 

(678

)

 

 

(1,253

)

 

 

(1,213

)

 

 

(2,252

)

Other (expense) income, net

 

 

(718

)

 

 

3,510

 

 

 

(718

)

 

 

3,961

 

Loss on extinguishment of convertible notes

 

 

 

 

 

 

 

 

(131,908

)

 

 

 

Loss on extinguishment of convertible notes attributable
   to related parties

 

 

 

 

 

 

 

 

(1,875

)

 

 

 

Loss before taxes

 

 

(31,297

)

 

 

(8,825

)

 

 

(190,269

)

 

 

(20,806

)

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(31,297

)

 

$

(8,825

)

 

$

(190,269

)

 

$

(20,806

)

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share:

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares of Class A
   common stock outstanding – basic and diluted

 

 

20,035,183

 

 

 

6,352,724

 

 

 

18,131,574

 

 

 

6,317,466

 

Net loss per share of Class A common
   stock – basic and diluted

 

$

(0.47

)

 

$

(0.16

)

 

$

(2.93

)

 

$

(0.38

)

Weighted average number of shares of Class B
   common stock outstanding – basic and diluted

 

 

46,722,244

 

 

 

48,897,804

 

 

 

46,783,559

 

 

 

48,474,826

 

Net loss per share of Class B common
   stock – basic and diluted

 

$

(0.47

)

 

$

(0.16

)

 

$

(2.93

)

 

$

(0.38

)

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

3


 

ASTRA SPACE, INC.
CONDENSED CONSOLIDATED STATEMENTS O
F TEMPORARY EQUITY AND STOCKHOLDERS’ DEFICIT
(In thousands, except share and per share data)

(Unaudited)

 

 

 

Temporary Equity

 

 

 

Permanent Equity

 

 

 

Convertible Preferred Stock

 

 

 

Common Stock

 

 

Class A Common Stock
( New Astra)

 

 

Class B Common Stock
(New Astra)

 

 

Founders Preferred Stock

 

 

Additional
Paid in

 

 

Accumulated

 

 

Total

 

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Deficit

 

Balance as of December 31, 2020 (as
   previously reported)

 

 

136,493,663

 

 

$

108,829

 

 

 

 

94,678,583

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18,500,000

 

 

$

 

 

$

50,289

 

 

$

(190,697

)

 

$

(140,408

)

Retroactive application of
   recapitalization

 

 

(45,725,377

)

 

 

 

 

 

 

(31,717,325

)

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,197,500

)

 

 

1

 

 

 

(7

)

 

 

 

 

 

 

Balance as of December 31, 2020,
   effect of reverse recapitalization
   (refer to Note 3)

 

 

90,768,286

 

 

$

108,829

 

 

 

 

62,961,258

 

 

$

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12,302,500

 

 

$

1

 

 

$

50,282

 

 

$

(190,697

)

 

$

(140,408

)

Cumulative effect adjustment due to
   adoption of ASU 2020-06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,719

)

 

 

691

 

 

 

(9,028

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,177

 

 

 

 

 

 

2,177

 

Exercise of options

 

 

 

 

 

 

 

 

 

498,807

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

228

 

 

 

 

 

 

228

 

Issuance of Series C Convertible
   Preferred Stock, net of issuance
   costs

 

 

28,498,141

 

 

 

221,943

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conversion of Founders Convertible
   Preferred Stock to Series C
   Convertible Preferred Stock

 

 

5,073,576

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,073,576

)

 

 

 

 

 

8,156

 

 

 

 

 

 

8,156

 

Adjustment to redemption value on
   Convertible Preferred Stock

 

 

 

 

 

1,011,726

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(51,131

)

 

 

(960,595

)

 

 

(1,011,726

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(158,972

)

 

 

(158,972

)

Balance as of March 31, 2021

 

 

124,340,003

 

 

$

1,342,498

 

 

 

 

63,460,065

 

 

$

6

 

 

 

 

 

 

 

 

 

 

 

$

 

 

 

7,228,924

 

 

$

1

 

 

$

(7

)

 

$

(1,309,573

)

 

$

(1,309,573

)

Stock-based compensation

 

 

 

 

$

 

 

 

 

 

 

$

 

 

 

 

 

 

 

 

 

 

 

$

 

 

 

 

 

$

 

 

$

7,444

 

 

$

 

 

$

7,444

 

Exercise of options

 

 

 

 

 

 

 

 

 

1,812,081

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,081

 

 

 

 

 

 

1,081

 

Adjustment to redemption value on
   Convertible Preferred Stock

 

 

 

 

 

(1,011,726

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

51,131

 

 

 

960,595

 

 

 

1,011,726

 

Merger recapitalization- Class A

 

 

(124,340,003

)

 

 

(330,772

)

 

 

 

(16,261,881

)

 

 

(2

)

 

 

140,601,884

 

 

 

14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

330,751

 

 

 

 

 

 

330,763

 

Merger recapitalization- Class B

 

 

 

 

 

 

 

 

 

(49,010,265

)

 

 

(4

)

 

 

 

 

 

 

 

 

56,239,189

 

 

 

6

 

 

 

(7,228,924

)

 

 

(1

)

 

 

 

 

 

 

 

 

1

 

Private offering and merger financing,
   net of redemptions and equity
   issuance costs of $
23,337

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

57,489,019

 

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

406,863

 

 

 

 

 

 

406,869

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(31,297

)

 

 

(31,297

)

Balance as of June 30, 2021

 

 

 

 

$

 

 

 

 

 

 

$

 

 

 

198,090,903

 

 

$

20

 

 

 

56,239,189

 

 

$

6

 

 

 

 

 

$

 

 

$

797,263

 

 

$

(380,275

)

 

$

417,014

 

 

 

 


Convertible Preferred Stock

 

 

 

Common Stock

 

 

Founders Preferred Stock

 

 

Additional
Paid in

 

 

Accumulated

 

 

Total

 

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Deficit

 

Balance as of December 31, 2019
   (as previously reported)

 

 

136,493,663

 

 

$

108,829

 

 

 

 

80,294,900

 

 

$

 

 

 

18,500,000

 

 

$

 

 

$

7,490

 

 

$

(122,404

)

 

$

(114,914

)

Retroactive application of recapitalization

 

 

(45,725,377

)

 

 

 

 

 

 

(26,898,791

)

 

 

5

 

 

 

(6,197,500

)

 

 

1

 

 

 

(6

)

 

 

 

 

 

 

Balance as of December 31, 2019,
   effect of reverse recapitalization
   (refer to Note 3)

 

 

90,768,286

 

 

$

108,829

 

 

 

 

53,396,109

 

 

$

5