astc20240331

astc20240331_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ___________

Commission file number 001-34426

Astrotech Corporation

(Exact Name of Registrant as Specified in its Charter)

Delaware		91-1273737
State or Other Jurisdiction of Incorporation or Organization		I.R.S. Employer Identification No.

2105 Donley Drive, Suite 100, Austin, Texas		78758
Address of Principal Executive Offices		Zip Code

(512) 485-9530

Registrant’s Telephone Number, Including Area Code

Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange on which registered

Common Stock, $0.001 par value per share

ASTC

NASDAQ Stock Market, LLC

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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

As of May 9, 2024 the number of shares of the registrant’s common stock outstanding was: 1,701,729.

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ASTROTECH CORPORATION AND SUBSIDIARIES

QUARTERLY REPORT ON FORM 10-Q

TABLE OF CONTENTS

		Page
PART I:	FINANCIAL INFORMATION	3

ITEM 1.	CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)	3
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	21
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	29
ITEM 4.	CONTROLS AND PROCEDURES	29

PART II:	OTHER INFORMATION	29

ITEM 1.	LEGAL PROCEEDINGS	29
ITEM 1A.	RISK FACTORS	29
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	29
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	29
ITEM 4.	MINE SAFETY DISCLOSURES	29
ITEM 5.	OTHER INFORMATION	29
ITEM 6.	EXHIBITS	30

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PART I: FINANCIAL INFORMATION

ITEM 1. Condensed Consolidated Financial Statements

ASTROTECH CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)

	*March 31,*			*June 30,*
	*2024*			*2023*
	(Unaudited)			(Note)
Assets
Current assets
Cash and cash equivalents	$	8,487		$	14,208
Short-term investments		26,196			27,919
Accounts receivable		201			225
Inventory, net:
Raw materials		1,734			1,379
Work-in-process		251			243
Finished goods		359			373
Income tax receivable		—			1
Prepaid expenses and other current assets		274			365
Total current assets		37,502			44,713
Property and equipment, net		2,516			2,670
Operating lease right-of-use assets, net		155			262
Other assets, net		30			30
Total assets	$	40,203		$	47,675
Liabilities and stockholders’ equity
Current liabilities
Accounts payable		612			546
Payroll related accruals		900			633
Accrued expenses and other liabilities		644			1,170
Lease liabilities, current		289			316
Total current liabilities		2,445			2,665
Accrued expenses and other liabilities, net of current portion		95			—
Lease liabilities, net of current portion		92			291
Total liabilities		2,632			2,956
Commitments and contingencies (Note 13)
Stockholders’ equity
Convertible preferred stock, $0.001 par value, 2,500,000 shares authorized; 280,898 shares of Series D issued and outstanding at March 31, 2024 and June 30, 2023		—			—
Common stock, $0.001 par value, 250,000,000 shares authorized at March 31, 2024 and June 30, 2023, respectively; 1,712,045 and 1,692,045 shares issued at March 31, 2024 and June 30, 2023, respectively; 1,701,729 and 1,681,729 outstanding at March 31, 2024 and June 30, 2023, respectively		190,643			190,643
Treasury shares, 10,316 at March 31, 2024 and June 30, 2023, respectively		(119	)		(119	)
Additional paid-in capital		82,277			81,002
Accumulated deficit		(234,061	)		(225,354	)
Accumulated other comprehensive loss		(1,169	)		(1,453	)
Total stockholders’ equity		37,571			44,719
Total liabilities and stockholders’ equity	$	40,203		$	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.

See accompanying notes to unaudited condensed consolidated financial statements.

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ASTROTECH CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Operations and Comprehensive Loss

(In thousands, except per share data)

(Unaudited)

	*Three Months Ended*						*Nine Months Ended*
	*March 31,*						*March 31,*
	*2024*			*2023*			*2024*			*2023*
Revenue	$	50		$	35		$	1,590		$	336
Cost of revenue		42			24			867			211
Gross profit		8			11			723			125
Operating expenses:
Selling, general and administrative		1,833			1,406			5,501			4,606
Research and development		1,708			1,355			5,158			3,847
Total operating expenses		3,541			2,761			10,659			8,453
Loss from operations		(3,533	)		(2,750	)		(9,936	)		(8,328	)
Other income and expense, net		379			375			1,229			1,006
Loss from operations before income taxes		(3,154	)		(2,375	)		(8,707	)		(7,322	)
Net loss	$	(3,154	)	$	(2,375	)	$	(8,707	)	$	(7,322	)
Weighted average common shares outstanding:
Basic and diluted		1,633			1,616			1,632			1,614
Basic and diluted net loss per common share:
Net loss per common share	$	(1.93	)	$	(1.47	)	$	(5.34	)	$	(4.54	)
Other comprehensive loss, net of tax:
Net loss	$	(3,154	)	$	(2,375	)	$	(8,707	)	$	(7,322	)
Available-for-sale securities:
Net unrealized gain/(loss)		13			181			284			(189	)
Total comprehensive loss	$	(3,141	)	$	(2,194	)	$	(8,423	)	$	(7,511	)

See accompanying notes to unaudited condensed consolidated financial statements.

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ASTROTECH CORPORATION

Condensed Consolidated Statement of Changes in Stockholders’ Equity

(In thousands)

(Unaudited)

	*Preferred Stock*
	*Series D*				*Common Stock*
	*Number of Shares Outstanding*		*Amount*		*Number of Shares Outstanding*		*Amount*		*Treasury Stock Amount*			*Additional Paid-In Capital*		*Accumulated Deficit*			*Accumulated Other Comprehensive Loss*			*Total Stockholders’ Equity*
Balance at June 30, 2023		281	$	—		1,682	$	190,643	$	(119	)	$	81,002	$	(225,354	)	$	(1,453	)	$	44,719
Net change in available-for-sale marketable securities		—		—		—		—		—			—		—			(54	)		(54	)
Stock-based compensation		—		—		—		—		—			364		—			—			364
Issuance of restricted stock		—		—		20		—		—			—		—			—			—
Net loss		—		—		—		—		—			—		(2,912	)		—			(2,912	)
Balance at September 30, 2023		281	$	—		1,702	$	190,643	$	(119	)	$	81,366	$	(228,266	)	$	(1,507	)	$	42,117
Net change in available-for-sale marketable securities		—		—		—		—		—			—		—			325			325
Stock-based compensation		—		—		—		—		—			473		—			—			473
Net loss		—		—		—		—		—			—		(2,641	)		—			(2,641	)
Balance at December 31, 2023		281	$	—		1,702	$	190,643	$	(119	)	$	81,839	$	(230,907	)	$	(1,182	)	$	40,274
Net change in available-for-sale marketable securities		—		—		—		—		—			—		—			13			13
Stock-based compensation		—		—		—		—		—			438		—			—			438
Net loss		—		—		—		—		—			—		(3,154	)		—			(3,154	)
Balance at March 31, 2024		281	$	—		1,702	$	190,643	$	(119	)	$	82,277	$	(234,061	)	$	(1,169	)	$	37,571

	*Preferred Stock*
	*Series D*				*Common Stock*
	*Number of Shares Outstanding*		*Amount*		*Number of Shares Outstanding*		*Amount*		*Treasury Stock Amount*		*Additional Paid-In Capital*		*Accumulated Deficit*			*Accumulated Other Comprehensive Loss*			*Total Stockholders’ Equity*
Balance at June 30, 2022		281	$	—		1,686	$	190,642	$	—	$	79,505	$	(215,712	)	$	(1,199	)	$	53,236
Net change in available-for-sale marketable securities		—		—		—		—		—		—		—			(368	)		(368	)
Stock-based compensation		—		—		2		—

SEC Form 10-Q filed by Astrotech Corporation (DE)