United States

Astrotech Reports Second Quarter Of Fiscal Year 2024 Financial Results

AUSTIN, Texas, Feb. 12, 2024 (GLOBE NEWSWIRE) — Astrotech Corporation (Nasdaq: ASTC) (the “Company” or “Astrotech”) reported its financial results for the second quarter of fiscal year 2024, which ended December 31, 2023.

Financial Highlights & Recent Developments 

  • Year-to-date revenue totaled $1,540 thousand compared to $301 thousand in the comparative period in the prior year. This represents an increase of 512%. The growth was predominantly due to the Company successfully delivering on two previously announced purchase orders for TRACER 1000™ explosive trace detectors (ETDs) to customers in Romania.
  • Astrotech’s consolidated balance sheet remains strong with $37 million in cash and liquid investments, which are anticipated to support our research and development, organic growth, and potential acquisition targets.
  • Year-to-date fiscal year 2024 gross margin increased to 46% from 38% during the comparative period in the prior year, as we continue to benefit from the further refining and ruggedizing of our equipment.
  • After the end of the quarter, 1st Detect reentered detection and non-detection testing with the U.S. Transportation Security Administration (TSA) for cargo security. Successful completion of TSA cargo detection testing is the final step to be listed on the Air Cargo Screening Technology List as an “approved” device. If approved, we believe the TRACER 1000 will be approved for cargo security screening sales in the United States.
  • Pro-Control, Inc (Pro-Control) was launched December 12, 2023, and is focused on applying the Astrotech Mass Spectrometer Technology™ (AMS Technology) in chemical manufacturing process control applications developed by AgLAB. The Pro-Control Maximum Value Process™ and the Pro-Control-1000™ mass spectrometer are designed to test, measure and increase potency, purity and weight yields in the chemical manufacturing processes.
  • Production and sales efforts continue for the AgLAB 1000-D2™, which utilizes the Maximum Value Process™. We exhibited it at this year’s MJ BizCon held late in the second quarter of fiscal year 2024.

“Fiscal year 2024 continued with strong sales at 1st Detect as we successfully fulfilled our two significant Tracer 1000 orders,” stated Thomas B. Pickens, III, Astrotech’s Chairman, Chief Executive Officer, and Chief Technology Officer. “We are gaining traction with the checkpoint market, especially with those customers looking to the future, by bringing the world’s first ECAC approved mass spectrometer ETD to their airports. Our ruggedized ETD brings the selectivity of a mass spectrometer to the checkpoint, and our customers have reported less false alarms while using our ETD compared to traditional IMS machines. This requires little to no additional training normally associated with using a traditional mass spectrometer. Further, the Pro-Control subsidiary was launched late this quarter and we look forward to introducing Pro-Control to chemical manufacturers who are using vacuum distillation,” stated Thomas B. Pickens, III.

About Astrotech Corporation

Astrotech (Nasdaq: ASTC) is a mass spectrometry company that launches, manages, and commercializes scalable companies based on its innovative core technology through its wholly owned subsidiaries. 1st Detect develops, manufactures, and sells trace detectors for use in the security and detection market. AgLAB is developing chemical analyzers for use in the agriculture market. BreathTech is developing a breath analysis tool to provide early detection of lung diseases. Pro-Control is developing the mass spectrometry technology for use in chemical manufacturing processes. Astrotech is headquartered in Austin, Texas. For information, please visit www.astrotechcorp.com.

About the AgLAB-1000™, the BreathTest-1000™ and the Pro-Control-1000™

This press release contains information about our new products under development, AgLAB-1000, BreathTest-1000 and Pro-Control-1000. Product development involves a high degree of risk and uncertainty, and there can be no assurance that our new products will be successfully developed, achieve their intended benefits, receive full market authorization, or be commercially successful. In addition, FDA approval will be required to market BreathTest-1000 in the United States. Obtaining FDA approval is a complex and lengthy process, and there can be no assurance that FDA approval for BreathTest-1000 will be granted on a timely basis or at all. 

Forward-Looking Statements

This press release contains forward-looking statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, trends, and uncertainties that could cause actual results to be materially different from the forward-looking statement. These factors include, but are not limited to, the adverse impact of inflationary pressures, including significant increases in fuel costs, global economic conditions and events related to these conditions, including the ongoing wars in Ukraine and the middle east and the COVID-19 pandemic, the Companys use of proceeds from the common stock offerings, whether we can successfully complete the development of our new products and proprietary technologies, whether we can obtain the FDA and other regulatory approvals required to market our products under development in the United States or abroad, whether the market will accept our products and services and whether we are successful in identifying, completing and integrating acquisitions, as well as other risk factors and business considerations described in the Companys Securities and Exchange Commission filings including the Companys most recent Annual Report on Form 10-K. Any forward-looking statements in this document should be evaluated in light of these important risk factors. While we do not intend to directly harvest, manufacture, distribute or sell cannabis or cannabis products, we may be detrimentally affected by a change in enforcement by federal or state governments and we may be subject to additional risks in connection with the evolving regulatory area and associated uncertainties. Any such effects may give rise to risks and uncertainties that are currently unknown or amplify others mentioned herein. Although the Company believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all) or will prove to have been correct. Moreover, such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. In addition, any forward-looking statements included in this press release represent the Companys views only as of the date of its publication and should not be relied upon as representing its views as of any subsequent date. The Company assumes no obligation to correct or update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

Company Contact: Jaime Hinojosa, Chief Financial Officer, Astrotech Corporation, (512) 485-9530

Tables follow

 ASTROTECH CORPORATION
Condensed Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except per share data)
(Unaudited)

  Three Months Ended     Six Months Ended  
  December 31,     December 31,  
  2023     2022     2023     2022  
Revenue $ 1,115     $ 263     $ 1,540     $ 301  
Cost of revenue   583       155       825       187  
Gross profit   532       108       715       114  
Operating expenses:                              
Selling, general and administrative   2,022       1,558       3,668       3,200  
Research and development   1,578       1,364       3,450       2,492  
Total operating expenses   3,600       2,922       7,118       5,692  
Loss from operations   (3,068 )     (2,814 )     (6,403 )     (5,578 )
Other income and expense, net   427       396       850       631  
Net loss $ (2,641 )   $ (2,418 )   $ (5,553 )   $ (4,947 )
Weighted average common shares outstanding:                              
Basic and diluted   1,631       1,613       1,631       1,613  
Basic and diluted net loss per common share:                              
Net loss per common share $ (1.62 )   $ (1.50 )   $ (3.40 )   $ (3.07 )
Other comprehensive loss, net of tax:                              
Net loss $ (2,641 )   $ (2,418 )   $ (5,553 )   $ (4,947 )
Available-for-sale securities:                              
Net unrealized loss   325       (2 )     270       (370 )
Total comprehensive loss $ (2,316 )   $ (2,420 )   $ (5,283 )   $ (5,317 )
                               
                               

ASTROTECH CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except share and per share data)

  December 31,     June 30,  
  2023     2023  
  (Unaudited)     (Note)  
Assets              
Current assets              
Cash and cash equivalents $ 11,096     $ 14,208  
Short-term investments   26,183       27,919  
Accounts receivable   294       225  
Inventory, net:              
Raw materials   1,530       1,379  
Work-in-process   275       243  
Finished goods   260       373  
Income tax receivable         1  
Prepaid expenses and other current assets   426       365  
Total current assets   40,064       44,713  
Property and equipment, net   2,546       2,670  
Operating lease right-of-use assets, net   191       262  
Other assets, net   30       30  
Total assets $ 42,831     $ 47,675  
Liabilities and stockholders’ equity              
Current liabilities              
Accounts payable   567       546  
Payroll related accruals   817       633  
Accrued expenses and other liabilities   621       1,170  
Lease liabilities, current   309       316  
Total current liabilities   2,314       2,665  
Accrued expenses and other liabilities, net of current portion   91        
Lease liabilities, net of current portion   152       291  
Total liabilities   2,557       2,956  
Commitments and contingencies              
Stockholders’ equity              
Convertible preferred stock, $0.001 par value, 2,500,000 shares authorized; 280,898 shares of Series D issued and outstanding at December 31, 2023 and June 30, 2023          
Common stock, $0.001 par value, 250,000,000 shares authorized at December 31, 2023 and June 30, 2023, respectively; 1,712,045 and 1,692,045 shares issued at December 31, 2023 and June 30, 2023, respectively; 1,701,729 and 1,681,729 outstanding at December 31, 2023 and June 30, 2023, respectively   190,643       190,643  
Treasury shares, 10,316 at December 31, 2023 and June 30, 2023, respectively   (119 )     (119 )
Additional paid-in capital   81,839       81,002  
Accumulated deficit   (230,907 )     (225,354 )
Accumulated other comprehensive loss   (1,182 )     (1,453 )
Total stockholders’ equity   40,274       44,719  
Total liabilities and stockholders’ equity $ 42,831     $ 47,675  
               

Note: The condensed consolidated balance sheet at June 30, 2023, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by the United States generally accepted accounting principles for complete financial statements.

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