Cash shortage and court problems for Firefly


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In the heat of competition: Firefly Space Systems appears to be in serious trouble with a court case going against it and what appears to be a loss of funding.

The legal battle took a turn in Virgin Galactic’s favor earlier this month when the arbitrator in the case (case no. 01-12-0002-2467) made a terminating sanctions ruling determining that Markusic did take Virgin Galactic trade secrets, destroyed evidence, impeded the arbitration process, and transferred Virgin Galactic confidential information to Firefly computers. This ruling makes any further legal action by Virgin Galactic much simpler as they no longer have to prove Markusic took their confidential information.

Things appeared to be going well at Firefly before this ruling, with a high volume of new hiring going on, a $5.5 million Venture class launch services contract with NASA, test firings of their engine, and a successful raise of $19 million in funding. Things may have changed with a statement posted to Twitter today on their @Firefly_Space account stating they have “experienced a setback on funding”.

Freedom and competition produces results fast and of high quality. It also carries risk and allows for failure. It appears that unfortunately Firefly might be illustrating the failure part of the equation.

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