In an increasingly competitive commercial space industry, Axiom Space is battling significant financial hurdles as it strives to deliver on crucial contracts with NASA. The Houston-based company, founded in 2016 by billionaire Kam Ghaffarian and former NASA executive Mike Suffredini, is working on two key programs: the development of a private space station in low-Earth orbit and the creation of spacesuits for lunar missions.

According to Forbes, Axiom Space has faced difficulties raising funds, leading to payroll delays and missed payments to suppliers, including Thales Alenia Space and SpaceX. The company's financial challenges have been exacerbated by the rapid expansion of its workforce, which saw employee numbers reach nearly 1,000 earlier this year.

Insiders familiar with the company's operations claim that Suffredini, who brought decades of NASA experience to Axiom, ran the company like a large-scale government program rather than a lean startup. The rush to hire hundreds of employees resulted in situations where new engineers often found themselves without meaningful tasks.

This report aligns with previous observations highlighting Axiom's financial struggles in recent months. Multiple layoffs have occurred, and dissatisfaction has grown among key suppliers, such as Thales, who have not been paid in full for their contributions to the Axiom space station project. Suffredini's departure as CEO, initially cited as a personal choice, suggests performance-related factors may have played a role in the decision.

These challenges raise significant concerns about Axiom's ability to fulfill its primary objective of creating a replacement for the International Space Station (ISS). Originally planning to launch an initial module by 2020, Axiom now faces multiple delays and envisions a smaller station with reduced power and commercial potential than initially envisioned.

Sources indicate that the company's revised business model has led to cash flow issues and made it difficult to attract adequate funding. Axiom's original plan relied on substantial power for microgravity research, semiconductor and pharmaceutical production, as well as sustaining human life in space. However, adjustments to the business model have posed ongoing challenges.

Axiom is among several companies partnering with NASA, including Blue Origin, Voyager Space, Vast Space, and potentially SpaceX, to develop commercial successors to the ISS after its retirement in 2030. NASA intends to issue a new round of commercial space station contracts in 2025, with the aim of selecting multiple companies for the project. However, Ghaffarian expressed a preference for a single award decision in 2022, citing limited market demand at present.

The report further highlights that Axiom has incurred significant losses on three private astronaut missions to the ISS thus far. Ghaffarian stated that these missions were conducted at a loss to foster relationships with global space agencies, as these agencies will likely become customers of commercial space stations in the coming decade. Nevertheless, Axiom's financial capabilities to sustain such launches have come under scrutiny.

Additionally, Axiom's involvement in the Artemis Program, tasked with developing spacesuits for lunar missions, has redirected resources from the space station program. Despite the company's financial challenges, multiple sources suggest that the spacesuit program is in a more stable position both financially and technically, viewed as an essential element for NASA's future endeavors.

With the financial pressure mounting, Axiom Space faces an uphill battle to secure the necessary funding and achieve the goals set by its NASA contracts. The company's future in the commercial space industry, particularly its pursuit of an ISS successor, remains uncertain as it balances financial constraints with program requirements.