UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
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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. ☐
| Item 2.02 | Results of Operations and Financial Condition. |
On March 30, 2023, Astra Space, Inc. (the “Company”) issued a press release announcing its financial results for its fourth quarter and fiscal year ended December 31, 2022.
A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information in this Item 2.02 of this Current Report, including the accompanying Exhibit 99.1, shall not be deemed “filed” for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”) except as shall be expressly set forth by specific reference in such a filing.
| Item 7.01 | Regulation FD Disclosure. |
Also, on March 30, 2023, the Company made a presentation available on its website: astra.com. This presentation is intended to accompany the earnings call to be held on March 30, 2023, at 4:30 p.m. eastern time and to assist in understanding information that the Company will discuss on this call. A copy of this presentation is attached hereto as Exhibit 99.2 and is incorporated herein by reference.
The information in this Item 7.01 of this Current Report, including the accompanying Exhibit 99.2, shall be deemed “furnished” and shall not be deemed “filed” for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of such section, nor shall it be incorporated by reference in any filing made by the Company pursuant to the Securities Act, regardless of the general incorporation language of such filing, except to the extent that such filing incorporates by reference any or all of such information by express reference thereto.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
| Exhibit No. |
Description | |
| 99.1 | Press release issued by Astra Space, Inc. dated March 30, 2023 | |
| 99.2 | Earnings presentation dated March 30, 2023 | |
| 104 | Cover Page Interactive Data File (embedded with the Inline XBRL document) | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Date: March 30, 2023 | Astra Space, Inc. | |||||
| By: | /s/ Axel Martinez | |||||
| Name: | Axel Martinez | |||||
| Title: | Chief Financial Officer | |||||
Exhibit 99.1
ASTRA ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2022 FINANCIAL RESULTS
ALAMEDA, California — March 30, 2023 — Astra Space, Inc. (“Astra”) (Nasdaq: ASTR) today announced financial results for its fourth quarter and fiscal year ended December 31, 2022.
Astra also announced the successful delivery of its third full Astra Spacecraft Engine™ program in 2022, realizing $3.5 million of contract value.
In addition, Astra announced 278 cumulative committed orders of the Astra Spacecraft Engine™ through March 30, 2023, representing approximately $77 million of contract value. A substantial majority of these orders are expected to be delivered through the end of 2024.
Finally, Astra continues to anticipate commencing test flights of Rocket 4 later this year.
“Our team has been intensely focused on execution. In addition to gaining significant traction in our Space Products business, we achieved critical milestones in the development of Launch System 2, including conducting the first full flight duration run of our first stage engine and substantial progress toward completion of the Rocket 4 production line,” said Chris Kemp, Astra Founder, Chairman and CEO.
“We also took important steps to enable production of the Astra Spacecraft Engine™ at scale through the build-out of our dedicated production facility, which we expect will eventually support production of up to 500 units per year, with our production ramp beginning in Q2 2023,” continued Kemp.
In Q4 2022, Astra continued to align its resources with the near-term opportunities in Launch Services and Space Products, including rationalization of headcount and reduction in consultant, legal, T&E and equipment rental spend.
“We have continued to refine our operating plan to ensure we have the appropriate resources to support customer deliveries and growth of our two core businesses while maintaining a prudent expense profile,” said CFO, Axel Martinez. “As a result of these efforts, our Adjusted Operating Expenses decreased from $44.1 million in Q3 2022 to $40.2 million in Q4 2022.”
Recent Business Highlights:
| • | 278 cumulative committed orders of the Astra Spacecraft Engine™ through March 30, 2023 |
| • | Completion of dedicated 60,000 square foot Astra Spacecraft Engine™ manufacturing facility |
| • | Achievement of Launch System 2 development milestones, including first full flight duration run of first stage engine |
| • | Ended the quarter with approximately $102.8 million in cash, cash equivalents, and marketable securities |
Fourth Quarter 2022 Financial Highlights:
For the three months ended December 31, 2022:
| • | GAAP Gross Profit was $0.0 million |
| • | GAAP Other Income was $5.4 million (including $3.5 million in Astra Spacecraft Engine™ deliveries) |
| • | GAAP Net Loss was $44.3 million |
| • | Adjusted Net Loss* was $37.3 million |
| • | Adjusted EBITDA Loss* was $36.6 million |
| • | Capital expenditures during the quarter totaled $7.6 million |
| • | Cash, cash equivalents, and marketable securities totaled $102.8 million |
| * | Denotes Non-GAAP financial measure. Refer to “Explanation of Adjusted (or Non-GAAP) Financial Measures” later in this press release for reconciliation of GAAP to Non-GAAP financial measures. |
First Quarter 2023 Outlook
As of March 30, 2023, we are providing guidance for the first quarter 2023 based on current market conditions, our focus on the development of Launch System 2, and our ongoing investments to scale our Space Products business. We emphasize that the guidance is subject to various important cautionary factors referenced in the section entitled “Forward-Looking Statements” below and our annual report on Form 10-K for the year ended December 31, 2022, including risks and uncertainties associated with geopolitical conditions and their potential impact on our business as well as our ability to continue operating as a going concern.
For the first quarter ending March 31, 2023, we currently expect:
| • | adjusted EBITDA loss* to be between $37.0 million and $41.0 million, |
| • | basic shares outstanding to be between 269 million and 271 million shares, and |
| • | capital expenditures to be between $6.0 million and $8.0 million |
| * | Denotes Non-GAAP financial measure. Refer to “Explanation of Adjusted (or Non-GAAP) Financial Measures” later in this press release for reconciliation of GAAP to Non-GAAP financial measures. |
Conference Call Information
In conjunction with this announcement, Astra will host a conference call for investors at 1:30 p.m. PT (4:30 p.m. ET) today to discuss fourth quarter and fiscal year 2022 results and our outlook for the first quarter ending March 31, 2023. The live webcast and a replay of the webcast will be available on the Investor Relations section of Astra’s website: https://investor.astra.com/news-and-events/events-and-presentations.
About Astra Space, Inc.
Astra’s mission is to improve life on Earth from space® by creating a healthier and more connected planet. Today, Astra offers one of the lowest cost-per-launch dedicated orbital launch services of any operational launch provider in the world, and one of the industry’s first flight-proven electric propulsion systems for satellites, Astra Spacecraft Engine™. Astra delivered its first commercial launch to low Earth orbit in 2021, making it the fastest company in history to reach this milestone, just five years after it was founded in 2016. Astra (NASDAQ: ASTR) was the first space launch company to be publicly traded on Nasdaq. Visit astra.com to learn more about Astra.
Forward Looking Statements
Certain statements made in this press release are “forward-looking statements”. Forward-looking statements may be identified by the use of words such as “anticipate”, “believe”, “expect”, “estimate”, “plan”, “outlook”, and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements reflect the current analysis of existing information and are subject to various risks and uncertainties. As a result, caution must be exercised in relying on forward-looking statements. Due to known and unknown risks, actual results may differ materially from Astra’s expectations or projections, including the following factors, among others: (i) the failure to meet projected development, delivery and launch targets, including as a result of the decisions of governmental authorities or other third parties not within our control; (ii) changes in applicable laws or regulations; (iii) the ability of Astra to meet its financial and strategic goals, due to, among other things, competition and the dedication of our launch resources to the development of Launch System 2 and its ability to continue operating as a going concern; (iv) the ability of Astra to pursue a growth strategy and manage growth profitability without additional funding; (v) the possibility that Astra may be adversely affected by other economic, business, and/or competitive factors; (vi) the ability to manage its cash outflows related to its business operations, (vii) the ability of Astra to develop its space services offering as part of its long-term business and growth strategy and (viii) other risks and uncertainties described herein, as well as those risks and uncertainties discussed from time to time in other reports and other public filings with the Securities and Exchange Commission by Astra.
Explanation of Non-GAAP (or Adjusted) Financial Measures
This press release includes information about Adjusted Gross Profit (Loss), Adjusted Net Loss and Adjusted EBITDA (collectively the “non-GAAP financial measures”), all of which are non-GAAP financial measures. These non-GAAP financial measures are measurements of financial performance that are not prepared in accordance with U.S. generally accepted accounting principles and computational methods may differ from those used by other companies. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with Astra’s condensed consolidated financial statements prepared in accordance with GAAP. Non-GAAP financial measures are reconciled to their most comparable GAAP measures in the table set forth in this release.
We believe that both management and our investors benefit from referring to these non-GAAP financial measures in planning, forecasting and analyzing future periods. Specifically, our management uses these non-GAAP financial measures in planning, monitoring and evaluating our financial and operational decision making and as a means to evaluate period-to-period comparisons. Our management recognizes that the non-GAAP financial measures have inherent limitations because of the excluded items described below.
We believe that providing the non-GAAP financial measures, together with the reconciliation to GAAP measures, helps investors make comparisons between Astra and other companies in our industry. In making any comparisons to other companies in our industry, investors need to be aware that companies use different non-GAAP measures to evaluate their financial performance. Investors should pay close attention to the specific definition being used and to the reconciliation between such measure and the corresponding GAAP measure provided by each company under applicable SEC rules.
We define Free Cash Flow as cash used in operating activities including cash used for capital expenditures.
Adjusted Gross Profit (Loss) differs from GAAP Gross Profit (Loss) in that it excludes inventory adjustments related to Rocket 3.
Adjusted Net Loss differs from GAAP Net Loss in that it excludes the following items: (a) stock-based compensation, (b) loss on change in fair value of contingent consideration, (c) cash earnout compensation cost related to the acquisition of Apollo Fusion, (d) inventory write-downs related to discontinuance of production of Launch System 1, (e) capitalized launch costs write-downs related to discontinuance of production of Launch System 1 (f) impairment charge, (g) employee retention credit, (h) PPP loan forgiveness, and (i) other special items, including related Worker Adjustment and Retraining Notification (WARN), employee safety, licensed technology, and a contract cancellation.
We define Adjusted EBITDA as Adjusted Net Loss, excluding the following items: (a) interest expense and interest income, (b) income tax expense, (c) loss on marketable securities, and (d) depreciation and amortization. We are unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.
Astra Space, Inc.
Condensed Consolidated Statements of Operations
(Unaudited, in thousands except per share data)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, 2022 |
December 31, 2021 |
December 31, 2022 |
December 31, 2021 |
|||||||||||||
| Revenues |
||||||||||||||||
| Launch services |
$ | — | $ | — | $ | 5,899 | $ | — | ||||||||
| Space products |
— | — | 3,471 | — | ||||||||||||
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|
|
|
|
|
|
|
|
|||||||||
| Total Revenues |
— | — | 9,370 | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Cost of revenues |
||||||||||||||||
| Launch services |
— | — | 28,193 | — | ||||||||||||
| Space products |
— | — | 1,337 | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total cost of revenues |
— | — | 29,530 | — | ||||||||||||
|
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|
|
|
|||||||||
| Gross profit (loss) |
— | — | (20,160 | ) | — | |||||||||||
| Operating expenses |
||||||||||||||||
| Research and development |
29,120 | 36,239 | 140,666 | 80,398 | ||||||||||||
| Sales and marketing |
3,949 | 1,882 | 17,401 | 4,111 | ||||||||||||
| General and administrative |
24,468 | 24,040 | 85,285 | 74,752 | ||||||||||||
| Impairment expense |
1,773 | — | 76,889 | — | ||||||||||||
| Goodwill impairment |
— | — | 58,251 | — | ||||||||||||
| Gain (loss) on change in fair value of contingent consideration |
(9,049 | ) | (4,700 | ) | 20,200 | (4,700 | ) | |||||||||
|
|
|
|
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|
|
|
|||||||||
| Total operating expenses |
50,262 | 57,461 | 398,692 | 154,561 | ||||||||||||
|
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|
|
|
|||||||||
| Operating income (loss) |
(50,262 | ) | (57,461 | ) | (418,852 | ) | (154,561 | ) | ||||||||
| Interest income (expense), net |
602 | 25 | 1,748 | (1,169 | ) | |||||||||||
| Other income (expense), net |
5,352 | 6,169 | 5,666 | 31,346 | ||||||||||||
| Loss on extinguishment of convertible notes |
— | — | — | (131,908 | ) | |||||||||||
| Loss on extinguishment of convertible notes attributable to related parties |
— | — | — | (1,875 | ) | |||||||||||
|
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|
|
|||||||||
| Income (loss) before taxes |
(44,308 | ) | (51,267 | ) | (411,438 | ) | (258,167 | ) | ||||||||
| Income tax (benefit) provision |
— | (2 | ) | — | (385 | ) | ||||||||||
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|||||||||
| Net income (loss) |
$ | (44,308 | ) | $ | (51,265 | ) | $ | (411,438 | ) | $ | (257,782 | ) | ||||
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| Adjustment to redemption value on Convertible Preferred Stock |
— | — | — | (1,011,726 | ) | |||||||||||
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|
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| Net income (loss) attributable to common stockholders |
$ | (44,308 | ) | $ | (51,265 | ) | $ | (411,438 | ) | $ | (1,269,508 | ) | ||||
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| Basic and diluted loss per share |
||||||||||||||||
| Weighted average basic and diluted shares - Class A |
212,732 | 202,982 | 210,178 | 110,837 | ||||||||||||
| Loss per share |
$ | (0.17 | ) | $ | (0.20 | ) | $ | (1.55 | ) | $ | (7.82 | ) | ||||
| Weighted average basic and diluted shares - Class B |
55,539 | 56,232 | 55,539 | 51,548 | ||||||||||||
| Loss per share |
$ | (0.17 | ) | $ | (0.20 | ) | $ | (1.55 | ) | $ | (7.82 | ) | ||||
Astra Space, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands)
| December 31, 2022 |
December 31, 2021 |
|||||||
| Assets: |
||||||||
| Cash and cash equivalents |
$ | 33,644 | $ | 325,007 | ||||
| Marketable securities |
69,173 | — | ||||||
| Trade accounts receivable |
5,327 | 1,816 | ||||||
| Inventories |
6,800 | 7,675 | ||||||
| Prepaid and other current assets |
10,838 | 12,238 | ||||||
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|||||
| Total current assets |
125,782 | 346,736 | ||||||
| Property, plant and equipment, net |
24,271 | 66,316 | ||||||
| Right-of-use asset |
12,813 | 9,079 | ||||||
| Goodwill |
— | 58,251 | ||||||
| Intangible assets, net |
10,132 | 17,921 | ||||||
| Other non-current assets |
1,701 | 721 | ||||||
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| Total assets |
$ | 174,699 | $ | 499,024 | ||||
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| Liabilities and Stockholders’ Equity: |
||||||||
| Accounts payable |
$ | 1,799 | $ | 9,122 | ||||
| Operating lease obligation, current portion |
3,800 | 1,704 | ||||||
| Contingent consideration |
33,900 | — | ||||||
| Accrued expenses and other current liabilities |
42,043 | 29,899 | ||||||
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|||||
| Total current liabilities |
81,542 | 40,725 | ||||||
| Operating lease obligation, net of current portion |
9,051 | 7,180 | ||||||
| Contingent consideration, net of current portion |
— | 13,700 | ||||||
| Other non-current liabilities |
1,796 | 899 | ||||||
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|||||
| Total liabilities |
92,389 | 62,504 | ||||||
| Total stockholders’ equity |
82,310 | 436,520 | ||||||
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| Total liabilities and stockholders’ equity |
$ | 174,699 | $ | 499,024 | ||||
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Astra Space, Inc.
Summary Cash Flow Data:
(Unaudited, in thousands)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, 2022 |
December 31, 2021 |
December 31, 2022 |
December 31, 2021 |
|||||||||||||
| Cash used in operating activities |
$ | (40,823 | ) | $ | (34,780 | ) | $ | (175,438 | ) | $ | (114,356 | ) | ||||
| Capital expenditures |
(7,580 | ) | (19,629 | ) | (47,623 | ) | (38,349 | ) | ||||||||
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| Free cash flow (non-GAAP) |
(48,403 | ) | (54,409 | ) | (223,061 | ) | (152,705 | ) | ||||||||
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| Cash used in investing activities |
6,729 | (19,779 | ) | (117,359 | ) | (61,059 | ) | |||||||||
| Cash provided by financing activities |
130 | 914 | 1,434 | 489,811 | ||||||||||||
Astra Space, Inc.
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
(Unaudited, in thousands)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31 , 2022 |
December 31, 2021 |
December 31, 2022 |
December 31, 2021 |
|||||||||||||
| Revenues |
||||||||||||||||
| Launch services |
$ | — | $ | — | $ | 5,899 | $ | — | ||||||||
| Space products |
$ | — | $ | — | $ | 3,471 | $ | — | ||||||||
|
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|
|
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|
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|
|||||||||
| Total revenues |
— | — | 9,370 | — | ||||||||||||
|
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|
|
|
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|
|||||||||
| Cost of revenues |
||||||||||||||||
| Launch services |
— | — | 28,193 | — | ||||||||||||
| Space products |
— | — | 1,337 | — | ||||||||||||
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|
|
|
|
|
|
|
|||||||||
| Total cost of revenues |
— | — | 29,530 | — | ||||||||||||
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|
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|
|
|||||||||
| GAAP gross profit (loss) |
— | — | (20,160 | ) | — | |||||||||||
| Inventory adjustments |
— | — | 10,200 | — | ||||||||||||
| Capitalize launch costs write downs |
— | — | 2,213 | — | ||||||||||||
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|
|||||||||
| Adjusted gross profit (loss) |
— | — | (7,747 | ) | — | |||||||||||
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|||||||||
| GAAP net income (loss) |
(44,308 | ) | (51,265 | ) | (411,438 | ) | (257,782 | ) | ||||||||
| Stock-based compensation |
12,324 | 19,278 | 55,904 | 39,743 | ||||||||||||
| Fair value of warrant liabilities |
— | (5,234 | ) | — | (25,681 | ) | ||||||||||
| Gain (loss) on change in fair value of contingent consideration |
(9,049 | ) | (4,700 | ) | 20,200 | (4,700 | ) | |||||||||
| Apollo cash earnout compensation |
— | 4,449 | 675 | 5,811 | ||||||||||||
| Inventory adjustments |
— | — | 11,212 | — | ||||||||||||
| Capitalized launch cost write downs |
— | — | 2,213 | — | ||||||||||||
| Loss on extinguishment of convertible notes |
— | — | — | 133,783 | ||||||||||||
| Impairment expense |
1,773 | — | 76,889 | — | ||||||||||||
| Goodwill impairment |
— | — | 58,251 | — | ||||||||||||
| Employee retention credit |
— | — | (4,283 | ) | — | |||||||||||
| PPP loan forgiveness |
— | — | — | (4,850 | ) | |||||||||||
| Legal Settlement |
— | — | — | 750 | ||||||||||||
| Other special items |
1,974 | — | 4,770 | 3,969 | ||||||||||||
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|||||||||
| Adjusted net income (loss) |
(37,286 | ) | (37,472 | ) | (185,607 | ) | (108,957 | ) | ||||||||
| Interest (income) expense, net |
(602 | ) | (25 | ) | (1,748 | ) | 1,169 | |||||||||
| Income tax (benefit) expense |
— | (2 | ) | — | (385 | ) | ||||||||||
| Realized (gain) loss on investment |
— | — | 123 | — | ||||||||||||
| Depreciation and amortization |
1,270 | 1,431 | 13,328 | 5,327 | ||||||||||||
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| Adjusted EBITDA |
(36,618 | ) | (36,068 | ) | (173,904 | ) | (102,846 | ) | ||||||||
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Investor Contact:
investors@astra.com
Media Contact:
press@astra.com
Exhibit 99.2 ASTRA INVESTOR UPDATE Q4 2022 First stage engine testing for Rocket 4
DISCLAIMER AND FORWARD-LOOKING STATEMENTS Accordingly, none of Astra nor its respective affiliates and advisors makes any representations Certain statements made in this press release are “forward-looking statements”. Forward-looking as to the accuracy or completeness of this data. Certain amounts related to the statements may be identified by the use of words such as “anticipate”, “believe”, “expect”, “estimate”, transaction described herein have been expressed in U.S. dollars for convenience and, when “plan”, “outlook”, and “project” and other similar expressions that predict or indicate future events or expressed in U.S. dollars in the future, such amounts may be different from those set forth trends or that are not statements of historical matters. These forward-looking statements reflect the herein. current analysis of existing information and are subject to various risks and uncertainties. As a result, caution must be exercised in relying on forward-looking statements. Due to known and unknown Non-GAAP Financial Measures. This Presentation includes non-GAAP financial measures. risks, actual results may differ materially from Astra’s expectations or projections, including the Astra believes that these non-GAAP measures of financial results provide useful information following factors, among others: (i) the failure to meet projected development, delivery and launch to management and investors regarding certain financial and business trends relating to targets, including as a result of the decisions of governmental authorities or other third parties not Astra’s financial condition and results of operations. Astra’s management uses certain of these within our control; (ii) changes in applicable laws or regulations; (iii) the ability of Astra to meet its non-GAAP measures to compare Astra’s performance to that of prior periods for trend analyses financial and strategic goals, due to, among other things, competition and the dedication of our and for budgeting and planning purposes. launch resources to the development of Launch System 2 and its ability to continue operating as a going concern; (iv) the ability of Astra to pursue a growth strategy and manage growth profitability All rights to the trademarks, copyrights, logos and other intellectual property listed herein belong without additional funding; (v) the possibility that Astra may be adversely affected by other economic, to their respective owners and Astra’s use thereof does not imply an affiliation with, or business, and/or competitive factors; (vi) the ability to manage its cash outflows related to its endorsement by the owners of such trademarks, copyrights, logos and other intellectual property. business operations, (vii) the ability of Astra to develop its space services offering as part of its long- term business and growth strategy and (viii) other risks and uncertainties described herein, as well as Solely for convenience, trademarks and trade names referred to in this Presentation may appear those risks and uncertainties discussed from time to time in other reports and other public filings with the ® or ™ symbols, but such references are not intended to indicate, in any way, that such with the Securities and Exchange Commission by Astra. names and logos are trademarks or registered trademarks of Astra. This Presentation accompanies Astra’s earnings call for the fourth quarter and fiscal year 2022, This Presentation contains statistical data, estimates and forecasts that have been provided which was held on March 30, 2023, and is intended to assist in understanding information Astra’s by Astra and/or are based on independent industry publications or other publicly available management discussed in that call. This Presentation should be viewed in conjunction with the information, as well as other information based on Astra’s internal sources. This information March 30, 2023, earnings call, a replay of which is available on Astra’s website at www.astra.com, involves many assumptions and limitations, and you are cautioned not to give undue weight to under Investors. these estimates. We have not independently verified the accuracy or completeness of the data that has been provided by Astra and/or contained in these industry publications and other publicly available information.
EXPLANATION OF NON-GAAP (OR ADJUSTED) FINANCIAL MEASURES compensation, (b) loss on change in fair value of contingent consideration, (c) cash earnout compensation cost related to the acquisition of Apollo Fusion, (d) inventory write-downs related to This press release includes information about Adjusted Gross Profit (Loss), Adjusted Net Loss and discontinuance of production of Launch System 1, (e) capitalized launch costs write-downs related to Adjusted EBITDA (collectively the “non-GAAP financial measures”), all of which are non-GAAP financial discontinuance of production of Launch System 1 (f) impairment charge, (g) employee retention measures. These non-GAAP financial measures are measurements of financial performance that are credit, (h) PPP loan forgiveness, and (i) other special items, including related to Worker Adjustment not prepared in accordance with U.S. generally accepted accounting principles and computational and Retraining Notification (WARN), employee safety, licensed technology, and a contract methods may differ from those used by other companies. Non-GAAP financial measures are not cancellation. meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with Astra’s condensed consolidated financial statements prepared in accordance with GAAP. Non-GAAP financial measures are reconciled to their most comparable GAAP We define Adjusted EBITDA as Adjusted Net Loss, excluding the following items: (a) interest expense measures in the table set forth in this release. and interest income, (b) income tax expense, (c) loss on marketable securities, and (d) depreciation and amortization. We are unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort. We believe that both management and our investors benefit from referring to these non-GAAP financial measures in planning, forecasting and analyzing future periods. Specifically, our management uses these non-GAAP financial measures in planning, monitoring and evaluating our financial and operational decision making and as a means to evaluate period-to-period comparisons. Our management recognizes that the non-GAAP financial measures have inherent limitations because of the excluded items described below. We believe that providing the non-GAAP financial measures, together with the reconciliation to GAAP measures, helps investors make comparisons between Astra and other companies in our industry. In making any comparisons to other companies in our industry, investors need to be aware that companies use different non-GAAP measures to evaluate their financial performance. Investors should pay close attention to the specific definition being used and to the reconciliation between such measure and the corresponding GAAP measure provided by each company under applicable SEC rules. Adjusted Gross Profit (Loss) differs from GAAP Gross Profit (Loss) in that it excludes inventory adjustments related to Rocket 3. Adjusted Net Loss differs from GAAP Net Loss in that it excludes the following items: (a) stock-based
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Astra’s headquarters in Alameda, California — 1900 Skyhawk Street
Astra’s headquarters in Alameda, California — 1900 Skyhawk Street
PRODUCTION FLOOR HIGHLIGHTS 4-BAR ROLLER FRICTION STIR WELDER TIG WELDER
QUALITY CONTROL LAB
TEST FACILITIES In-house environmental testing allows Astra to perform rapid test, design and manufacture cycles. THERMAL VACUUM TESTING VIBE TESTING SHOCK TESTING
TM ASTRA SPACECRAFT ENGINE 278 CUMULATIVE COMMITTED ORDERS* 600+ ON-ORBIT BURNS *Consisting of 264 new orders obtained between July 1, 2021 through March 30, 2023, in addition to 14 existing orders from the Apollo Fusion acquisition that closed on July 1, 2021.
Astra Spacecraft Engine™ 3-Station Test Chamber
KEY FINANCIAL METRICS | Q4 2022 1 2 REVENUES + OTHER INCOME OPERATING EXPENSES (NON-GAAP) $44.1M $3.5M $40.2M $2.8M Q3 2022 Q4 2022 Q3 2022 Q4 2022 2 CAPITAL EXPENDITURES ADJUSTED EBITDA Q3 2022 Q4 2022 $8.0M $7.6M Q3 2022 Q4 2022 -$36.6M -$41.4M 1. Revenues + Other Income related to customer deliveries. Q4 2022 includes delivery on a $3.5 million customer contract booked to Other Income 14 14 2.Excludes non-cash items and non-recurring expenses
KEY FINANCIAL METRICS | Q4 2022 1 ADJUSTED NET INCOME (LOSS) FREE CASH FLOW Q3 2022 Q4 2022 Q3 2022 Q4 2022 -$37.3M -$48.4M -$50.7M -$45.2M 1 CASH, CASH EQUIVALENTS & MARKETABLE SECURITIES ADJUSTED EPS Q3 2022 Q4 2022 $150.5M $102.8M $(0.14) $(0.17) Q3 2022 Q4 2022 15 15 1. Excludes non-cash items and non-recurring expenses
GAAP TO NON-GAAP RECONCILIATION Three Months Ended Twelve Months Ended December 31, December 31, December 31, December 31, 2022 2021 2022 2021 GAAP net income (loss) (44,308) (51,265) (411,438) (257,782) Stock-based compensation 12,324 19,278 55,904 39,743 Fair value of warrant liabilities - (5,234) - (25,681) Gain (loss) on change in fair value of (9,049) (4,700) 20,200 (4,700) contingent consideration Apollo cash earnout compensation - 4,449 675 5,811 Inventory adjustments - - 11,212 - Capitalized launch cost write downs - - 2,213 - Loss on extinguishment of convertible notes - - - 133,783 Impairment expense 1,773 - 76,889 - Goodwill impairment - - 58,251 - Employee retention credit - - (4,283) - PPP loan forgiveness - - - (4,850) Legal Settlement - - - 750 Other special items 1,974 - 4,770 3,969 Adjusted net income (loss) (37,286) (37,472) (185,607) (108,957) Interest (income) expense, net (602) (25) (1,748) 1,169 Income tax (benefit) expense - (2) - (385) Realized (gain) loss on investment - - 123 - Depreciation and amortization 1,270 1,431 13,328 5,327 Adjusted EBITDA (36,618) (36,068) (173,904) (102,846) 16 16
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