23.01.2025
Space Perspective was issued a five-day eviction summons Friday for the company's high-altitude balloon manufacturing factory and office facilities at Space Coast Regional Airport in Titusville after falling behind $90,295 in unpaid base rent in recent months, court records indicate.
Only 17 months ago, Space Perspective officials hosted a crowd of Brevard County politicians, industry officials and media during a high-profile August 2023 ribbon-cutting ceremony dedicating the newly built 700-foot-long balloon factory on Bartow Way, just off an airport runway.
The white fabric hangar was built for workers to craft enormous polyethylene balloons. In the future, these balloons would propel pressurized carbon-composite capsules up to 100,000 feet above the Earth's surface, carrying future passengers paying $125,000 per seat on six-hour "space tourism" voyages featuring Wi-Fi, food, cocktail service and a restroom.
But company activity has largely halted during recent weeks at the airport. During a Friday interview, Space Perspective CEO Michael Savage said about 75% of workers have been furloughed, and company officials seek new investors by the end of the first quarter to fund more test flights and scale employment back up. The payroll had reached nearly 140 workers last year, he said.
"We're in talks with the Titusville airport. We do have to make some adjustments. I think just something I want to stress is, anytime you scale a company at this stage — as uncomfortable as it may be — you have to prioritize efficiency. And we're in the middle of making sure that we look at that closely," Savage said.
"We're not shut down. There is a skeleton team continuing to work, with the goal to bring back the broader team the minute we have financing. Because we're being responsible with our burn," he said.
Space Perspective executives celebrated a September uncrewed balloon test flight that sent a prototype capsule aloft from the deck of the company's ocean vessel — but human missions remain postponed. When company officials announced in December 2021 they would build the Titusville airport campus featuring more than $38 million in construction and equipment, the goal was to launch commercial service by late 2024.
"The only thing necessary between now and our first human flight is just iterative tests of that (September) launch. And that meant some planned scale-back," Savage said, referring to workforce.
Five-day eviction summons issued Friday
On Dec. 2, the Titusville-Cocoa Airport Authority's general counsel issued a default notice citing $90,295 in unpaid base rent from May 1 and Nov. 12 for three company-leased parcels at the airport. That letter noted that the company "has an unfortunate history of making late rent payments and then partial payments to make up unpaid rent."
"While the Authority also understands generally the financial predicament in which Space Perspective may find itself, the Authority cannot act as a joint venturer to ensure Space Perspective’s operations and must enforce its Leases," the default notice said.
Following up on that unpaid rent, the airport authority is suing for eviction. A Brevard County Circuit Court judge authorized the eviction summons on Friday. That document warned that unless the company responds to the complaint within five working days, it can be evicted without further notice.
Savage said he remains bullish on the future of Space Perspective — which remains in the pre-revenue stage — and he hopes to bring back as many team members as possible. He labeled the business "an early stage deep-tech company" that has built out a successful MVP, or minimum viable product.
He said the September test flight, which soared about 100,000 feet above the Gulf of Mexico, went better than expected. Now, he said polyethylene balloons — which measure roughly 550 feet tall and are propelled by hydrogen — are packed in crates.
Next, he said six or seven more uncrewed flights would likely occur before two to four human test flights launch, and this testing cycle should last into 2026. Afterward, he hopes the company launches its commercial business.
Savage said SpaceX founder Elon Musk has furloughed employees at his companies in the past, and he noted last week's Starship explosionthat showered debris over the island nation of Turks and Caicos.
"When investors come in, when people partner, we don't shy away from talking about the fact that early stage deep tech comes with risk," Savage said.
"And, we talk about high-risk, high-reward. Those that partner with us long-term, hopefully they'll reap the reward as we make this thing work," he said.
Space Perspective company statement
Savage shared a written statement on the status of Space Perspective.
"A Space Perspective spokesperson confirms company furloughs. As a deep tech startup, Space Perspective has had a successful 2024 launching its demonstration flight program and providing it can build, launch, and fly its capsule and balloon successfully. It has already achieved significant milestones. As the company scales, new skill sets are required as the business changes — so as it moves through its next round of funding, it is positioning itself for the next stage. As the business evolves and a new market is defined, it will require total efficiency. Leadership is grateful for those that have been on the journey with us, for those who will continue, and for new team members who will be key to deliver our next phase."
Quelle: Florida Today