Astra Space Inc. Receives and Subsequently Cures Deficiency Notice from Nasdaq Due to Late 10-Q Filing

Rhea-AI Summary

Astra Space announced it received a deficiency notice from Nasdaq on May 22, 2024, due to its failure to timely file its Form 10-Q for the quarter ending March 31, 2024. This non-compliance with Nasdaq Listing Rule 5250(c)(1) had no immediate effect on Astra's stock listing. Astra cited the inability to file without unreasonable effort or expense as the reason for delay. The company is also non-compliant with Nasdaq's Minimum Bid Price and Minimum Stockholders' Equity Requirements. However, Astra filed the required Form 10-Q on May 29, 2024, curing the deficiency concerning Rule 5250(c)(1). Astra must submit a compliance plan to Nasdaq by July 22, 2024, but there is no assurance of success in regaining compliance with other listing requirements.

Positive

• Astra Space successfully filed its Form 10-Q on May 29, 2024, curing the deficiency related to Nasdaq Rule 5250(c)(1).
• The deficiency notice from Nasdaq had no immediate impact on the listing of Astra’s Class A common stock.
• By filing the Form 10-Q, Astra demonstrated its ability to address regulatory compliance challenges swiftly.

Negative

• Astra failed to file its Form 10-Q by the prescribed deadline, resulting in a deficiency notice from Nasdaq.
• The company is currently non-compliant with Nasdaq's Minimum Bid Price Requirement (Rule 5450(a)(1)) and Minimum Stockholders' Equity Requirement (Rule 5550(b)(1)).
• There is no assurance that Astra will regain compliance with the Minimum Bid Price Requirement or Minimum Stockholders' Equity Requirement.
• Astra’s ongoing non-compliance with multiple Nasdaq listing rules poses a risk to its stock listing status.

ALAMEDA, Calif.--(BUSINESS WIRE)-- Astra Space, Inc. (“Astra”) announced that on May 22, 2024, it received a deficiency notice from Nasdaq indicating that, because Astra did not timely file its Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 with the Securities and Exchange Commission (the “SEC”), Astra was not in compliance with Nasdaq Listing Rule 5250(c)(1), which requires Nasdaq-listed companies to timely file all required periodic financial reports with the SEC. As previously reported by Astra on its Notification of Late Filing on Form 12b-25, filed with the SEC on May 14, 2024, Astra was unable to file its Form 10-Q without unreasonable effort or expense by the prescribed due date for such filing. As previously disclosed on Astra’s Current Reports on Form 8-K filed with the SEC on April 19, 2024, and April 26, 2024, respectively, Astra is not currently in compliance with Nasdaq Listing Rules 5450(a)(1) (the “Minimum Bid Price Requirement”) and 5550(b)(1) (the “Minimum Stockholders’ Equity Requirement”).

The May 22, 2024 deficiency notice had no immediate effect on the listing of Astra’s Class A common stock. The notice provides that Astra has until July 22, 2024, to submit to Nasdaq a plan to regain compliance with the Rule. Subsequently, on May 29, 2024, Astra filed its Form 10-Q for the quarter ended March 31, 2024, and regained compliance with Nasdaq Listing Rule 5250(c)(1).

There can be no assurance that Nasdaq will accept any plan or grant an exception period, that any hearing would be successful or that Astra will be able to regain compliance with the Minimum Bid Price Requirement or the Minimum Stockholders’ Equity Requirement within the deadline or any exception period that may be granted, or maintain compliance with the other continued listing requirements set forth in the Nasdaq Listing Rules.

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, and one of the industry’s leading flight-proven electric propulsion systems for satellites, the Astra Spacecraft Engine. Visit astra.com to learn more about Astra.

Safe Harbor

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. The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: (i) our failure to meet projected development and delivery targets, including as a result of the decisions of governmental authorities or other third parties not within our control or delays associated with our move-in to our new production facility; (ii) changes in applicable laws or regulations; (iii) the ability of the Astra to meet its financial and strategic goals, due to, among other things, competition; (iv) the ability of Astra to pursue a growth strategy and manage growth profitability; (v) the possibility that Astra may be adversely affected by other economic, business, and/or competitive factors and (vi) other risks and uncertainties described discussed from time to time in other reports and other public filings with the Securities and Exchange Commission, including our registration statements, annual reports and quarterly reports.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240531889055/en/

Investor Contact:

investors@astra.com

Media Contact:

press@astra.com

Source: Astra Space, Inc.

FAQ

Why did Astra Space receive a deficiency notice from Nasdaq?

Astra Space received a deficiency notice from Nasdaq due to the late filing of its Form 10-Q for the quarter ending March 31, 2024.

What is Nasdaq Listing Rule 5250(c)(1)?

Nasdaq Listing Rule 5250(c)(1) requires Nasdaq-listed companies to timely file all required periodic financial reports with the SEC.

When did Astra Space regain compliance with Nasdaq Rule 5250(c)(1)?

Astra Space regained compliance with Nasdaq Rule 5250(c)(1) on May 29, 2024, after filing its Form 10-Q.

Is Astra Space compliant with the Minimum Bid Price Requirement?

No, as of the latest update, Astra Space is not compliant with the Minimum Bid Price Requirement (Nasdaq Rule 5450(a)(1)).

By when does Astra Space need to submit a plan to regain compliance with Nasdaq rules?

Astra Space needs to submit its compliance plan to Nasdaq by July 22, 2024.

What other Nasdaq listing rules is Astra Space currently non-compliant with?

Astra Space is currently non-compliant with the Minimum Stockholders' Equity Requirement (Nasdaq Rule 5550(b)(1)).

Did the Nasdaq deficiency notice affect Astra Space's stock listing?

No, the Nasdaq deficiency notice had no immediate effect on the listing of Astra Space’s Class A common stock.

What are the potential risks if Astra Space does not regain compliance with Nasdaq listing requirements?

If Astra Space does not regain compliance, it risks being delisted from Nasdaq, which could negatively impact its stock price and investor confidence.