Astrotech (ASTC)

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Morning Market Movers: XELB, BTTC, ASTC, MSGY See Big Swings
RTTNews· 2025-10-03 12:17
Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Xcel Brands, Inc. (XELB) increased by 48% to $2.57 [3] - Astrotech Corporation (ASTC) rose by 21% to $5.85 [3] - Rumble Inc. (RUM) saw a 13% increase to $8.36 [3] - ClearPoint Neuro, Inc. (CLPT) gained 9% reaching $27.38 [3] - USA Rare Earth, Inc. (USAR) also increased by 9% to $24.92 [3] - Q/C Technologies, Inc. (QCLS) rose by 8% to $5.51 [3] - Lazydays Holdings, Inc. (GORV) increased by 8% to $2.61 [3] - K Wave Media Ltd. (KWM) saw a 7% rise to $2.78 [3] - Galectin Therapeutics Inc. (GALT) increased by 6% to $4.53 [3] - Wrap Technologies, Inc. (WRAP) rose by 6% to $2.86 [3] Premarket Losers - Black Titan Corporation Ordinary Shares (BTTC) decreased by 29% to $16.80 [4] - Masonglory Limited (MSGY) fell by 14% to $2.54 [4] - Aspire Biopharma Holdings, Inc. (ASBP) declined by 12% to $0.37 [4] - Urban One, Inc. (UONE) saw an 11% drop to $1.15 [4] - Reitar Logtech Holdings Limited (RITR) decreased by 7% to $2.74 [4] - Iveda Solutions, Inc. (IVDA) fell by 7% to $1.88 [4] - Erayak Power Solution Group Inc. (RAYA) decreased by 6% to $4.93 [4] - Megan Holdings Limited (MGN) saw a 6% drop to $3.32 [4] - Werewolf Therapeutics, Inc. (HOWL) declined by 5% to $1.81 [4] - SOS Limited (SOS) decreased by 4% to $2.04 [4]
Astrotech (ASTC) - 2025 Q4 - Annual Report
2025-09-26 12:07
[Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section highlights that the **Form 10-K** contains forward-looking statements subject to risks and uncertainties [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements%20Content) This section highlights that the **Form 10-K** contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from projections - The **Form 10-K** contains forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially from projections[10](index=10&type=chunk)[12](index=12&type=chunk) - Key risks include adverse global economic conditions, inflation, potential recession, geopolitical tensions, product demand and market acceptance, technological difficulties, supply chain availability and cost inflation, and uncertainty in government funding[10](index=10&type=chunk) - The company may be detrimentally affected by changes in federal or state government enforcement regarding cannabis, given the evolving regulatory area and associated uncertainties[11](index=11&type=chunk) PART I [Item 1. Business](index=6&type=section&id=Item%201.%20Business) **Astrotech Corporation** (**ASTC**) commercializes its proprietary **Astrotech Mass Spectrometer Technology™** (**AMS Technology**) and **ATi Gas Chromatography Column** (**GC**) through wholly-owned subsidiaries, focusing on real-time, on-site chemical compound detection - **Astrotech Corporation** (**ASTC**) commercializes its proprietary **Astrotech Mass Spectrometer Technology™** (**AMS Technology**) and **ATi Gas Chromatography Column** (**GC**) through wholly-owned subsidiaries[15](index=15&type=chunk)[16](index=16&type=chunk) - The company's mission is to expand access to mass spectrometry by simplifying operation for real-time testing in diverse environments like airports, border checkpoints, military bases, and industrial locations[16](index=16&type=chunk)[251](index=251&type=chunk)[321](index=321&type=chunk) - Products include **TRACER 1000™**, **BreathTest-1000™**, **AgLAB 1000™**, and **Pro-Control 1000™**, along with related accessories and consumables[15](index=15&type=chunk) [Our Company](index=6&type=section&id=Our%20Company) The company commercializes its proprietary **AMS Technology** through application-specific subsidiaries - **Astrotech Corporation** (**Nasdaq**: **ASTC**) was organized in **1984** in Delaware[15](index=15&type=chunk) - The company is commercializing its **Astrotech Mass Spectrometer Technology™** platform ("**AMS Technology**") through application-specific, wholly-owned subsidiaries[15](index=15&type=chunk) [Our Business Units](index=6&type=section&id=Our%20Business%20Units) This section describes the company's six wholly-owned subsidiaries and their respective focus areas [Astrotech Technologies, Inc. (ATI)](index=7&type=section&id=Astrotech%20Technologies%2C%20Inc.%20(ATI)) **ATI** owns and licenses the **AMS Technology**, designed to be inexpensive, smaller, and easier to use than traditional mass spectrometers - **ATI** owns and licenses the **AMS Technology**, which was originally developed by **1st Detect** and designed to be inexpensive, smaller, and easier to use than traditional mass spectrometers[19](index=19&type=chunk)[322](index=322&type=chunk) - The **AMS Technology** operates under ultra-high vacuum, yielding higher resolution and fewer false alarms, and is protected by **16** granted patents and extensive trade secrets[19](index=19&type=chunk)[56](index=56&type=chunk) [1st Detect Corporation](index=7&type=section&id=1st%20Detect%20Corporation) **1st Detect** developed the **TRACER 1000™**, the world's first **MS**-based **Explosive Trace Detector** (**ETD**) certified by **ECAC** and approved by the **U.S. TSA** for air cargo - **1st Detect** developed the **TRACER 1000™**, the world's first **MS**-based **Explosive Trace Detector** (**ETD**) certified by **ECAC** and approved by the **U.S. TSA** for air cargo[20](index=20&type=chunk)[323](index=323&type=chunk) - The **TRACER 1000** is designed to outperform **IMS**-based **ETDs** by offering a virtually unlimited and easily expandable threat library without degrading detection capabilities, addressing issues of false positives and limited threat libraries in competing technologies[20](index=20&type=chunk)[323](index=323&type=chunk) - As of June **30**, **2025**, **TRACER 1000** units are deployed in approximately **34** locations across **16** countries in the **USA**, Europe, and Asia[21](index=21&type=chunk)[253](index=253&type=chunk) - In June **2024**, **TSA** approved **TRACER 1000** for the Air Cargo Security Technology List, advancing it to Stage II field trials, and in April **2025**, the first **TSA**-approved sale of six **TRACER 1000 ETDs** was made to Intuitive Research and Technology[22](index=22&type=chunk)[27](index=27&type=chunk) - **1st Detect** was awarded a research and development contract with the **DHS** in January **2025** to mature the **TRACER 1000** for next-generation explosives trace detection[25](index=25&type=chunk)[254](index=254&type=chunk) - In March **2025**, the enhanced **TRACER 1000 Narcotic Trace Detector** (**NTD**) was launched to screen for synthetic opiates and novel psychoactive substances, with its first international deployment in Vietnam in June **2025**[26](index=26&type=chunk)[28](index=28&type=chunk)[257](index=257&type=chunk)[258](index=258&type=chunk) [AgLAB Inc.](index=8&type=section&id=AgLAB%20Inc.) **AgLAB** develops the **AgLAB 1000™** series of mass spectrometers for the hemp and cannabis markets, focusing on optimizing yields in distillation processes - **AgLAB** develops the **AgLAB 1000™** series of mass spectrometers for the hemp and cannabis markets, focusing on optimizing yields in distillation processes, using the **Maximum Value Process** solution (**MVP**) for real-time analysis[30](index=30&type=chunk)[324](index=324&type=chunk) - Field trials demonstrated that the **AgLAB 1000-D2™** can improve ending-weight yields by **20%** or more for **THC** and **CBD** oil during distillation[30](index=30&type=chunk)[34](index=34&type=chunk) - In June **2024**, **AgLAB** partnered with **SC Laboratories** for joint marketing of the **AgLAB 1000-D2™** and **MVP** testing method to **SC Labs'** clients[35](index=35&type=chunk) [BreathTech Corporation](index=9&type=section&id=BreathTech%20Corporation) **BreathTech** was developing the **BreathTest-1000™** for breath analysis, but commercialization requires significant investment and regulatory approval - **BreathTech** was developing the **BreathTest-1000™**, a breath analysis tool to screen for **VOC** metabolites indicating compromised health conditions, but commercialization requires significant investment and regulatory approval, leading the company to deploy capital to other subsidiaries[36](index=36&type=chunk)[38](index=38&type=chunk)[325](index=325&type=chunk) - A pilot study with The Cleveland Clinic Foundation for lung and systemic diseases concluded in February **2025**, with no active or anticipated studies under the **CCF JDA**[37](index=37&type=chunk) [Pro-Control, Inc.](index=9&type=section&id=Pro-Control%2C%20Inc.) **Pro-Control** applies **AMS Technology** to industrial process control for chemical distillation, using the **Pro-Control 1000-D2™** mass spectrometer for real-time monitoring - Formed in December **2023**, **Pro-Control** applies **AMS Technology** to industrial process control for chemical distillation outside agriculture, using the **Pro-Control 1000-D2™** mass spectrometer and **Maximum Value Processing** to monitor and control manufacturing processes in real-time[39](index=39&type=chunk)[40](index=40&type=chunk)[327](index=327&type=chunk) - The technology aims to increase reaction intermediates, purity, and percent yields while significantly improving efficiency in industrial processes[39](index=39&type=chunk)[40](index=40&type=chunk) [EN-SCAN, Inc.](index=9&type=section&id=EN-SCAN%20Inc.) **EN-SCAN** develops advanced environmental testing and monitoring solutions, integrating proprietary **ATi Gas Chromatography** and **AMS Technology** into rugged, portable designs - Formed in February **2025**, **EN-SCAN** develops advanced environmental testing and monitoring solutions, integrating proprietary **ATi Gas Chromatography** and **AMS Technology** into rugged, portable designs for on-site, real-time air, water, and soil analysis[41](index=41&type=chunk)[256](index=256&type=chunk)[328](index=328&type=chunk) - Products include **Handheld GC**, **Fenceline Monitor**, and **Rugged Lab GC-MS**, designed to provide instant feedback for accurate contamination source location and migration, reducing testing costs and delays[41](index=41&type=chunk)[50](index=50&type=chunk) [Our Strategy](index=9&type=section&id=Our%20Strategy) The company's strategy leverages its core **AMS Technology** through specialized subsidiaries to address distinct market needs - **Astrotech's** strategy involves leveraging its core **AMS Technology** through specialized subsidiaries to address distinct market needs, focusing on product development, market penetration, and strategic partnerships[18](index=18&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk)[50](index=50&type=chunk) [1st Detect Corporation](index=9&type=section&id=1st%20Detect%20Corporation_Strategy) **1st Detect's** strategy focuses on marketing the **TRACER 1000 ETD** and **NTD** to countries accepting **ECAC** certification or **TSA** approval for air cargo - **1st Detect's** strategy focuses on marketing the **TRACER 1000 ETD** and **NTD** to countries accepting **ECAC** certification or **TSA** approval for air cargo, targeting markets needing broader compound detection and better accuracy[42](index=42&type=chunk)[43](index=43&type=chunk) - Key target markets include passenger airports, cargo airports, event venues, military bases, government office buildings, courthouses, border checkpoints, law enforcement agencies, and critical infrastructure security checkpoints[46](index=46&type=chunk) [AgLAB Inc.](index=10&type=section&id=AgLAB%20Inc._Strategy) **AgLAB's** strategy targets the hemp and cannabis industry, focusing on maximizing final product quality and yield in distillation processes - **AgLAB's** strategy targets the hemp and cannabis industry, focusing on maximizing final product quality and yield in distillation processes, with initial efforts in the **U.S.** market and future expansion into international markets[43](index=43&type=chunk)[44](index=44&type=chunk) - Agricultural companies involved in plant material harvesting, ingredient processing, oil distillation, contaminate detection, inspection and certification, and formulation and packaging are expected to benefit from increased **MS** use[47](index=47&type=chunk) [BreathTech Corporation](index=10&type=section&id=BreathTech%20Corporation_Strategy) **BreathTech's** strategy involves designing the **BreathTest-1000** as an inexpensive, non-invasive screening device for compromised conditions - **BreathTech's** strategy involves designing the **BreathTest-1000** as an inexpensive, non-invasive screening device for compromised conditions, targeting high-density and critical locations due to the need for quick and painless airborne disease detection[44](index=44&type=chunk) - Target markets include hospitals, military, nursing homes, sporting events, cruise lines, schools, airlines, performing arts venues, hotels, and convention and conference centers[48](index=48&type=chunk) [Pro-Control, Inc.](index=10&type=section&id=Pro-Control%2C%20Inc._Strategy) **Pro-Control** leverages **AgLAB's** technology and processes to offer "process control" methods and solutions, aiming to increase yields and quality - **Pro-Control** leverages **AgLAB's** technology and processes to offer "process control" methods and solutions, aiming to increase yields and quality by integrating **MS** directly into manufacturing lines for real-time analysis[45](index=45&type=chunk) - Markets likely to adopt **Pro-Control's** products include pharmaceutical manufacturing, petroleum refining, industrial chemical manufacturing, food processing, and nutraceutical manufacturing[49](index=49&type=chunk) [EN-SCAN, Inc.](index=11&type=section&id=EN-SCAN%20Inc._Strategy) **EN-SCAN's** strategy focuses on providing ultra-portable, rugged **GC** and **MS** technology for continuous on-site environmental monitoring and immediate response - **EN-SCAN's** strategy focuses on providing ultra-portable, rugged **GC** and **MS** technology for continuous on-site environmental monitoring and immediate response, offering lab-grade accuracy in demanding field conditions[50](index=50&type=chunk)[60](index=60&type=chunk) - Target markets include environmental equipment rental, industrial hygienists, environmental consulting firms, chemical plants, and refineries[58](index=58&type=chunk) [Products and Services](index=11&type=section&id=Products%20and%20Services) The company's products primarily consist of mass spectrometry and gas chromatography equipment - **Astrotech's** products are primarily mass spectrometry and gas chromatography equipment, leveraging its core **AMS Technology** for diverse applications[51](index=51&type=chunk)[57](index=57&type=chunk) [Mass Spectrometry](index=11&type=section&id=Mass%20Spectrometry) Mass spectrometry (**MS**) is an analytical technique measuring mass-to-charge ratio of ions to identify sample composition - Mass spectrometry (**MS**) is an analytical technique measuring mass-to-charge ratio of ions to identify sample composition, offering advantages in speed, specificity, and detection of minute quantities[52](index=52&type=chunk)[53](index=53&type=chunk) - The core **AMS Technology** originated from a device for the International Space Station, designed to be inexpensive, smaller, and easier to use than traditional **MS**, operating under ultra-high vacuum for higher resolution and fewer false alarms[56](index=56&type=chunk) [Gas Chromatography](index=12&type=section&id=Gas%20Chromatography) Gas chromatography (**GC**) separates, analyzes, and quantifies vaporizable compounds, offering real-time, on-site data for various applications - Gas chromatography (**GC**) separates, analyzes, and quantifies vaporizable compounds, offering real-time, on-site data for applications like fence-line monitoring, disaster response, and contamination tracking[59](index=59&type=chunk)[60](index=60&type=chunk) - The combined **GC** and **MS** technology in rugged, portable designs delivers lab-grade accuracy for on-site air, water, and soil analysis[60](index=60&type=chunk) [Customers, Sales, and Marketing](index=12&type=section&id=Customers%2C%20Sales%2C%20and%20Marketing) The company employs direct and channel sales strategies tailored to each business unit's market and regulatory environment - **Astrotech** employs both direct and channel sales strategies across its subsidiaries, adapting to the specific market needs and regulatory environments of each business unit[61](index=61&type=chunk)[62](index=62&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk) [1st Detect Corporation](index=12&type=section&id=1st%20Detect%20Corporation_Sales) **1st Detect's** marketing focuses on markets seeking increased uptime, expanded libraries of detectable compounds, and near-zero false alarms - **1st Detect's** marketing focuses on markets seeking increased uptime, expanded libraries of detectable compounds, near-zero false alarms, high uptime, fast cleardown, and confirmatory technology[61](index=61&type=chunk)[66](index=66&type=chunk)[73](index=73&type=chunk) - Sales are conducted through direct sales and distributors, with units deployed in **34** locations across **16** countries, though sales cycles in regulated and government markets are long[61](index=61&type=chunk) [AgLAB Inc.](index=12&type=section&id=AgLAB%20Inc._Sales) **AgLAB** uses direct and channel sales, including a lease program with **SC Labs**, and plans to engage additional channel partners - **AgLAB** uses direct and channel sales, including a lease program with **SC Labs**, and plans to engage additional channel partners with existing distribution in the hemp and cannabis market[62](index=62&type=chunk) [BreathTech Corporation](index=12&type=section&id=BreathTech%20Corporation_Sales) Commercialization of **BreathTech's AMS Technology** is deemed to require significant investment and time due to regulatory requirements - Commercialization of **BreathTech's AMS Technology** is deemed to require significant investment and time due to regulatory requirements, leading to capital deployment to other subsidiaries[63](index=63&type=chunk) [Pro-Control, Inc.](index=12&type=section&id=Pro-Control%2C%20Inc._Sales) **Pro-Control** currently uses direct sales, conducting proof-of-concept and trial engagements near its Austin headquarters - **Pro-Control** currently uses direct sales, conducting proof-of-concept and trial engagements near its Austin headquarters, with intentions to use regional sales teams in manufacturing-dense geographic territories[64](index=64&type=chunk) [EN-SCAN, Inc.](index=12&type=section&id=EN-SCAN%20Inc._Sales) **EN-SCAN** targets industries like environmental consulting, government agencies, and industrial facilities, offering training and data integration - **EN-SCAN** targets industries like environmental consulting, government agencies, industrial facilities, and academic institutions, offering training, data integration, and a centralized portal to enhance customer experience[65](index=65&type=chunk) [Competition](index=13&type=section&id=Competition) The company's subsidiaries differentiate themselves through superior technology attributes against larger competitors - **Astrotech's** subsidiaries face competition from larger, established companies with broader product ranges, but differentiate themselves through superior technology attributes like lower false alarm rates, expanded detection libraries, and real-time, on-site analysis capabilities[67](index=67&type=chunk)[68](index=68&type=chunk)[70](index=70&type=chunk)[72](index=72&type=chunk) [1st Detect Corporation](index=13&type=section&id=1st%20Detect%20Corporation_Competition) Competition for **TRACER 1000** primarily comes from larger **IMS**-based **ETD** manufacturers, but **1st Detect** believes its product offers superior attributes - Competition for **TRACER 1000** primarily comes from larger **IMS**-based **ETD** manufacturers, but **1st Detect** believes its product offers superior attributes such as near-zero false alarms, limitless library expansion, high uptime, fast cleardown, and confirmatory technology[67](index=67&type=chunk)[73](index=73&type=chunk) [AgLAB Inc.](index=13&type=section&id=AgLAB%20Inc._Competition) **AgLAB's MS**-based system competes with **High-Performance Liquid Chromatography** (**HPLC**), offering a more user-friendly interface and quicker results - **AgLAB's MS**-based system competes with **High-Performance Liquid Chromatography** (**HPLC**), offering a more user-friendly interface, quicker results, and future closed-loop process control for maximized yield and quality[68](index=68&type=chunk) [BreathTech Corporation](index=13&type=section&id=BreathTech%20Corporation_Competition) The **BreathTest-1000** is designed to supplement, not compete with, traditional medical tests by providing quick, inexpensive screening - The **BreathTest-1000** is designed to supplement, not compete with, traditional medical tests by providing a quick, inexpensive, and painless screening for **VOC** metabolites indicating compromised conditions[69](index=69&type=chunk) [Pro-Control, Inc.](index=13&type=section&id=Pro-Control%2C%20Inc._Competition) **Pro-Control** competes with legacy **MS** equipment and off-site laboratory testing by simplifying **MS** for factory floor use and real-time analysis - **Pro-Control** competes with legacy, sophisticated **MS** equipment from global **OEMs** and off-site laboratory testing, differentiating itself by simplifying **MS** for factory floor use, enabling real-time analysis in minutes versus hours or days[70](index=70&type=chunk)[71](index=71&type=chunk) [EN-SCAN, Inc.](index=13&type=section&id=EN-SCAN%20Inc._Competition) **EN-SCAN** competes with established environmental testing equipment providers by emphasizing its proprietary **ATi GC** and **AMS Technology** and rugged on-site design - **EN-SCAN** competes with established environmental testing equipment providers, particularly those offering portable **GC**-**MS** devices, by emphasizing its proprietary **ATi GC** and **AMS Technology**, rugged on-site design, and a product lineup spanning handheld, fenceline, and lab-grade instruments for real-time, cost-efficient analysis[72](index=72&type=chunk) [Research and Development](index=14&type=section&id=Research%20and%20Development) The company invests significantly in R&D for new products, system improvements, and cost optimization - **Astrotech** invests significant resources in **R&D**, primarily focused on the cross-platform **AMS Technology** to develop new derivative products, improve system functionality, optimize design, reduce cost, and streamline user experience[74](index=74&type=chunk) [Astrotech Technologies, Inc. (ATI)](index=14&type=section&id=Astrotech%20Technologies%2C%20Inc.%20(ATI)_R%26D) **ATI's R&D** continually works on cross-platform **AMS Technology**, developing new derivative products and improving system functionality - **ATI's R&D** continually works on cross-platform **AMS Technology**, developing new derivative products, improving system functionality and reliability, optimizing design, reducing cost, and simplifying software and user experience[74](index=74&type=chunk) [1st Detect Corporation](index=14&type=section&id=1st%20Detect%20Corporation_R%26D) While **TRACER 1000** is commercialized, **1st Detect** continues to invest in library development, leading to the launch of its narcotics detector - While **TRACER 1000** is commercialized, **1st Detect** continues to invest in library development, leading to the launch of its narcotics detector and ongoing enhancements[75](index=75&type=chunk) [AgLAB Inc.](index=14&type=section&id=AgLAB%20Inc._R%26D) **AgLAB** continues to develop its **AgLAB-1000** series, using core **AMS Technology**, to include other valuable products specific to the hemp and cannabis industry - **AgLAB** continues to develop its **AgLAB-1000** series, using core **AMS Technology**, to include other valuable products specific to the hemp and cannabis industry, with plans for an inline process control unit (**AgLAB-1000-D1**) integrated directly into distillation equipment[76](index=76&type=chunk) [BreathTech Corporation](index=14&type=section&id=BreathTech%20Corporation_R%26D) **BreathTech's R&D** focuses on sample introduction and library development for the **BreathTest-1000** to identify specific compounds in breath - **BreathTech's R&D** focuses on sample introduction and library development for the **BreathTest-1000** to identify specific compounds in breath indicative of compromised conditions, including infections[77](index=77&type=chunk) [Pro-Control, Inc.](index=14&type=section&id=Pro-Control%2C%20Inc._R%26D) **Pro-Control** is in early stages of refining its product line using core **AMS Technology** and developing its library for chemical manufacturers - **Pro-Control** is in early stages of refining its product line using core **AMS Technology** and developing its library for chemical manufacturers[78](index=78&type=chunk) [En-Scan, Inc.](index=14&type=section&id=En-Scan%2C%20Inc._R%26D) **EN-SCAN's R&D** efforts are focused on manufacturing and selling new environmental testing instruments using proprietary **ATi GC** and **AMS Technology** - **EN-SCAN's R&D** efforts are focused on manufacturing and selling new environmental testing instruments using proprietary **ATi GC** and **AMS Technology** for on-site, real-time air, water, and soil analysis, strengthening its competitive edge and opening new market opportunities[79](index=79&type=chunk) [Certain Regulatory Matters](index=15&type=section&id=Certain%20Regulatory%20Matters) The company is subject to extensive federal, state, and local regulations across its business operations - **Astrotech** is subject to extensive **U.S.** federal, state, and local laws and regulations concerning environmental protection, technology transfer, business practices, and federal contracting procedures[80](index=80&type=chunk) - Compliance with these regulations has not had a material effect on capital expenditures, earnings, or competitive position, and is not expected to in the future[80](index=80&type=chunk) [Federal Regulations](index=15&type=section&id=Federal%20Regulations) Key federal regulations impacting operations include the **Foreign Corrupt Practices Act**, **Iran Nonproliferation Act of 2000**, and **Export Administration Regulations** - Key federal regulations impacting operations include the **Foreign Corrupt Practices Act**, **Iran Nonproliferation Act of 2000**, **Federal Acquisition Regulations** (**FAR**), **Truth in Negotiations Act**, **Export Administration Act**, and **Export Administration Regulations**[81](index=81&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk)[85](index=85&type=chunk) [Medical Device Regulation](index=15&type=section&id=Medical%20Device%20Regulation) Medical devices in the **U.S.** require **FDA** clearance or approval, classified by risk, and are subject to extensive post-market regulations - Medical devices in the **U.S.** require **FDA** clearance (**510(k)**), de novo request, or **Premarket Application** (**PMA**) approval, classified into Class I, II, or III based on risk[86](index=86&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk) - Post-market regulations include establishment registration, device listing, **Quality System Regulation** (**QSR**) compliance, labeling, marketing, medical device reporting (**MDR**), and recall reporting[98](index=98&type=chunk) - In the **EEA**, medical devices must meet essential requirements of the **Medical Devices Directive**, undergo conformity assessment, and apply the **CE Mark** for market placement[100](index=100&type=chunk)[101](index=101&type=chunk) - The **EU Medical Devices Regulation** (**Regulation 2017/745**), effective May **2021**, strengthens rules on market placement, surveillance, manufacturer responsibilities, traceability, and assessment of high-risk devices[104](index=104&type=chunk)[106](index=106&type=chunk) [Federal, State, and Foreign Fraud and Abuse and Physician Payment Transparency Laws](index=21&type=section&id=Federal%2C%20State%2C%20and%20Foreign%20Fraud%20and%20Abuse%20and%20Physician%20Payment%20Transparency%20Laws) The company is subject to federal and state anti-kickback and false claims laws, and transparency laws regarding payments to healthcare providers - The company is subject to federal and state anti-kickback and false claims laws, and transparency laws regarding payments to healthcare providers, including the federal **Anti-Kickback Statute** and the federal civil **False Claims Act**[110](index=110&type=chunk)[111](index=111&type=chunk)[113](index=113&type=chunk) - Violations can result in significant civil and criminal penalties, exclusion from federal healthcare programs, and "qui tam" whistleblower lawsuits[112](index=112&type=chunk)[114](index=114&type=chunk) [Data Privacy and Security Laws](index=22&type=section&id=Data%20Privacy%20and%20Security%20Laws) The company may be subject to data privacy laws like **GDPR**, **CCPA**, and **HIPAA**, which protect personal and patient health information - The company may be subject to data privacy laws like the **EU General Data Protection Regulation** (**GDPR**) and the **California Consumer Privacy Act** (**CCPA**), and **HIPAA**, which protect personal and patient health information[119](index=119&type=chunk)[120](index=120&type=chunk)[124](index=124&type=chunk)[125](index=125&type=chunk) - **HIPAA** mandates privacy and security standards for **Protected Health Information** (**PHI**), breach notification requirements, and can impose civil monetary penalties and criminal penalties for non-compliance[120](index=120&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk) [Healthcare Reform](index=23&type=section&id=Healthcare%20Reform) **U.S.** and foreign jurisdictions are considering legislative and regulatory proposals to reform healthcare, which could impact product coverage or reimbursement - **U.S.** and foreign jurisdictions are considering legislative and regulatory proposals to reform healthcare, aiming to contain costs, improve quality, or expand access, which could limit coverage or lower reimbursement for the company's products[126](index=126&type=chunk) [US Government Regulation of the Cannabis Industry](index=23&type=section&id=US%20Government%20Regulation%20of%20the%20Cannabis%20Industry) **AgLAB's** business in the hemp and cannabis industry faces significant regulatory and operational risks due to marijuana's federal controlled substance status - While **Astrotech** does not directly sell cannabis products, its **AgLAB** business serves the hemp and cannabis industry, which is subject to significant regulatory, financial, operational, and reputational risks due to marijuana's Schedule I controlled substance status under federal law[128](index=128&type=chunk)[193](index=193&type=chunk)[195](index=195&type=chunk) - Federal enforcement of the **Controlled Substances Act** could lead to fines, imprisonment, or seizure of property, and any unfavorable change in federal enforcement could significantly damage the industry and indirectly affect **Astrotech**[129](index=129&type=chunk)[195](index=195&type=chunk) - There is a risk that the company's equipment could be deemed to be aiding and abetting illegal activities or considered "drug paraphernalia" under federal law, potentially leading to enforcement actions, though federal authorities have not historically focused on such tangential violations[200](index=200&type=chunk)[201](index=201&type=chunk) - If marijuana is reclassified, the **FDA** could regulate cannabis under the **FDCA**, potentially imposing new rules, manufacturing practices, or facility registration requirements, which could impact the **AgLAB** business[204](index=204&type=chunk)[205](index=205&type=chunk) [Regulatory Compliance and Risk Management](index=25&type=section&id=Regulatory%20Compliance%20and%20Risk%20Management) The company maintains compliance with regulatory requirements and manages risks through a program of compliance, awareness, and insurance - The company maintains compliance with regulatory requirements and manages risks through a program of compliance, awareness, and insurance, with a continued emphasis on safety[137](index=137&type=chunk) [Employees](index=25&type=section&id=Employees) As of June **30**, **2025**, **Astrotech** employed **32** individuals, none of whom were covered by collective bargaining agreements - As of June **30**, **2025**, **Astrotech** employed **32** individuals, none of whom were covered by collective bargaining agreements[138](index=138&type=chunk) [Website](index=25&type=section&id=Website) Additional information on the company's business operations is available on its website, www.astrotechcorp.com - Additional information on the company's business operations is available on its website, www.astrotechcorp.com[139](index=139&type=chunk) [Item 1A. Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) **Astrotech** faces significant risks, including substantial accumulated losses, uncertain profitability, and the need for additional capital which could dilute existing shareholders - The company has incurred significant losses since inception and anticipates continued losses, with business units in early development stages and uncertain future revenues or profitability[144](index=144&type=chunk)[145](index=145&type=chunk) - There is a need to raise additional capital, which could lead to dilution for existing shareholders, and risks related to obtaining intellectual property protection and defending against infringement claims[147](index=147&type=chunk)[149](index=149&type=chunk)[151](index=151&type=chunk) - Challenges include successful development of new products (e.g., **BreathTest-1000**), operational and regulatory risks in international markets, adverse impacts from inflation, and dependence on a limited number of customers[157](index=157&type=chunk)[159](index=159&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk) - Other risks include competition, reliance on third-party suppliers, warranty costs, extensive governmental regulation (especially for medical devices and the cannabis industry), and potential delisting from **Nasdaq**[167](index=167&type=chunk)[173](index=173&type=chunk)[177](index=177&type=chunk)[178](index=178&type=chunk)[193](index=193&type=chunk)[224](index=224&type=chunk) [Summary Risk Factors](index=26&type=section&id=Summary%20Risk%20Factors) This section summarizes key risks including financial losses, capital needs, **IP**, and regulatory challenges - The company has incurred significant losses since inception and anticipates continued losses, with business units in early development stages and uncertain future revenues or profitability[144](index=144&type=chunk)[145](index=145&type=chunk) - There is a need to raise additional capital, which could lead to dilution for existing shareholders, and risks related to obtaining intellectual property protection and defending against infringement claims[147](index=147&type=chunk)[149](index=149&type=chunk)[151](index=151&type=chunk) - Challenges include successful development of new products (e.g., **BreathTest-1000**), operational and regulatory risks in international markets, adverse impacts from inflation, and dependence on a limited number of customers[157](index=157&type=chunk)[159](index=159&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk) - Other risks include competition, reliance on third-party suppliers, warranty costs, extensive governmental regulation (especially for medical devices and the cannabis industry), and potential delisting from **Nasdaq**[167](index=167&type=chunk)[173](index=173&type=chunk)[177](index=177&type=chunk)[178](index=178&type=chunk)[193](index=193&type=chunk)[224](index=224&type=chunk) [Risks Related to Our Business and Industry](index=28&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Industry) This section details business risks such as accumulated deficits, funding needs, customer concentration, and supply chain issues - **Astrotech** has an accumulated deficit of approximately **$251 million** as of June **30**, **2025**, and reported a net loss of **$13.8 million** for fiscal year **2025**, with uncertainty about future profitability[144](index=144&type=chunk) - Business units are in early development, have limited revenue, and require substantial funding, with no guarantee of product effectiveness, market attractiveness, or regulatory approvals (e.g., **TSA** for **TRACER 1000**, **FDA** for **BreathTest-1000**)[145](index=145&type=chunk)[146](index=146&type=chunk) - The company may need to raise additional capital through equity or debt, which could dilute stockholders or impose significant operational restrictions[147](index=147&type=chunk)[148](index=148&type=chunk) - International sales expose the company to risks such as import/export laws, exchange rate fluctuations, political instability, anti-corruption law violations, and stringent foreign regulations[159](index=159&type=chunk)[161](index=161&type=chunk) - Inflation could adversely affect financial condition by increasing costs, particularly if price increases cannot be passed to customers, and may exacerbate supply chain disruptions and employee retention challenges[162](index=162&type=chunk) - Substantial revenue is generated from a limited number of customers, and the loss of any could materially harm business and financial results[163](index=163&type=chunk)[164](index=164&type=chunk) - Manufacturing operations are highly dependent on third-party and single-source suppliers for critical components, making the company vulnerable to supply shortages, price fluctuations, and production delays[173](index=173&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk) - Product warranties expose the company to future repair and replacement costs, and unforeseen quality issues or higher sales could lead to costs exceeding current estimates[177](index=177&type=chunk) [Legal and Regulatory Risks](index=35&type=section&id=Legal%20and%20Regulatory%20Risks) This section outlines risks from extensive medical device regulations, cannabis industry laws, and trade policies - The medical technology industry is extensively regulated by governmental authorities like the **FDA**, with complex and stringent regulations that can limit operations, increase costs, or delay product approvals[178](index=178&type=chunk) - Failure to obtain **FDA** clearance or authorization for products like the **BreathTest-1000**, or delays in development, would adversely affect business growth, as clinical testing is likely required[183](index=183&type=chunk) - Non-compliance with regulatory quality standards (e.g., **QSR**) by the company or its suppliers could lead to **FDA** enforcement actions, including warning letters, fines, recalls, and operating restrictions[184](index=184&type=chunk)[185](index=185&type=chunk) - Product modifications to **510(k)**-cleared devices may require new clearances or approvals, and off-label promotion could lead to regulatory actions, fines, and product liability claims[186](index=186&type=chunk)[187](index=187&type=chunk) - Healthcare reforms and disruptions at government agencies (like **FDA** funding shortages) could increase costs, lengthen review times, and negatively impact business[188](index=188&type=chunk)[190](index=190&type=chunk) - The **AgLAB** business's growth is highly dependent on the **U.S.** hemp and cannabis market, which faces risks from evolving federal and state laws, potential reclassification of marijuana, and opposition from other industries[193](index=193&type=chunk)[196](index=196&type=chunk)[207](index=207&type=chunk) - Changes in **U.S.** trade policy, including tariffs and export license processing pauses, could adversely affect international sales, increase costs, and reduce profitability[212](index=212&type=chunk)[213](index=213&type=chunk) [Risks Related to Ownership of Our Common Stock](index=44&type=section&id=Risks%20Related%20to%20Ownership%20of%20Our%20Common%20Stock) This section addresses risks related to stock price volatility, potential dilution, and **Nasdaq** listing compliance - The company's stock price has been volatile and may experience rapid and substantial decreases unrelated to operating performance, influenced by factors like investor reaction to strategy, competitive products, regulatory developments, and general economic conditions[214](index=214&type=chunk)[215](index=215&type=chunk) - The company can sell additional shares of common or preferred stock without shareholder consultation, leading to dilution and potential depression of the stock price[217](index=217&type=chunk)[218](index=218&type=chunk) - As a smaller reporting company, reduced disclosure requirements may make its common stock less attractive to investors, potentially leading to a less active trading market and more volatile stock price[223](index=223&type=chunk) - Failure to maintain compliance with **Nasdaq's** listing requirements could result in delisting, significantly reducing liquidity and stock price, and harming the ability to raise capital[224](index=224&type=chunk)[225](index=225&type=chunk) [General Risk Factors](index=47&type=section&id=General%20Risk%20Factors) This section covers general risks including cybersecurity threats, corporate governance costs, and insurance adequacy - Increased cybersecurity threats pose risks to systems, networks, products, services, and data, potentially leading to security breaches, data loss, operational disruptions, reputational damage, and legal actions[226](index=226&type=chunk) - Compliance with corporate governance regulations (e.g., **Sarbanes-Oxley Act**, **Dodd-Frank Act**) incurs significant legal, accounting, and other expenses, requiring substantial management time and potentially increasing general and administrative costs[228](index=228&type=chunk) - The company's insurance coverage may be inadequate to cover all significant risk exposures, potentially forcing it to bear substantial costs for claims or liabilities[229](index=229&type=chunk) [Item 1B. Unresolved Staff Comments](index=49&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) There are no unresolved staff comments to report - No unresolved staff comments[230](index=230&type=chunk) [Item 1C. Cybersecurity](index=49&type=section&id=Item%201C.%20Cybersecurity) **Astrotech's** cybersecurity program, overseen by the Board's audit committee and managed by the **IT Manager** and **COO**, focuses on identifying, assessing, and managing risks - **Astrotech's** cybersecurity program, informed by **CIS** standards, includes processes for identification, assessment, and management of cybersecurity risks, supported by periodic risk assessments and security testing[235](index=235&type=chunk) - The Board of Directors, through its audit committee, provides overall oversight for cybersecurity risk management, while day-to-day administration is handled by the **IT Manager** and executive management (**COO**)[231](index=231&type=chunk)[232](index=232&type=chunk)[233](index=233&type=chunk) - The company assesses third-party vendor cybersecurity practices and has an incident response plan, but has not identified any cybersecurity incidents that have materially affected its business to date[237](index=237&type=chunk)[239](index=239&type=chunk)[240](index=240&type=chunk) [Board of Directors Oversight](index=49&type=section&id=Board%20of%20Directors%20Oversight) The Board's audit committee oversees cybersecurity risk management, leveraging diverse expertise - The Board of Directors, through its audit committee, holds overall oversight responsibility for cybersecurity risk management, with committee members possessing diverse expertise in risk management and technology[231](index=231&type=chunk) [Management's Role](index=49&type=section&id=Management%27s%20Role) Management, led by the **IT Manager** and **COO**, administers the cybersecurity program and incident response - Day-to-day cybersecurity program administration is supervised by the **IT Manager** and executive management (**CFO** until August **12**, **2025**, then **COO**), who inform the audit committee and conduct annual reviews[232](index=232&type=chunk) - The **COO** and **IT** team are responsible for assessing, monitoring, and managing cybersecurity risks, testing compliance with **CIS version 8 standards**, remediating risks, and leading employee training[233](index=233&type=chunk) - An incident response plan is in place for cybersecurity incidents, including escalation to executive management and the audit committee[234](index=234&type=chunk) [Cybersecurity Risk Management and Strategy](index=49&type=section&id=Cybersecurity%20Risk%20Management%20and%20Strategy) The cybersecurity program identifies, assesses, and manages risks through periodic assessments and testing - The cybersecurity program, informed by **CIS**, includes processes for identification, assessment, and management of risks, with periodic risk assessments (including external support) and regular security testing[235](index=235&type=chunk) [Third-Party Risk](index=49&type=section&id=Third-Party%20Risk) The company assesses and reviews cybersecurity practices of external experts and major third-party vendors - **Astrotech** engages external experts for cybersecurity evaluation and testing and assesses and reviews the cybersecurity practices of major third-party vendors and service providers[236](index=236&type=chunk)[237](index=237&type=chunk) [Risks from Cybersecurity Threats](index=50&type=section&id=Risks%20from%20Cybersecurity%20Threats) The company monitors cybersecurity risks, with no material incidents affecting business to date - The company monitors cybersecurity risks through managed security service providers, third-party security software, and internal/external technologies for network monitoring and data loss prevention[238](index=238&type=chunk) - No cybersecurity incidents or threats have materially affected the company's business strategy, results of operations, or financial condition to date[240](index=240&type=chunk) [Item 2. Properties](index=50&type=section&id=Item%202.%20Properties) **Astrotech** leases two facilities in Austin, Texas, and has entered a new lease for a larger **17,628** square foot **Metric facility** commencing July **1**, **2025** - **Astrotech** leases an **R&D** facility (**5,960** sq ft) and an adjacent subleased facility (**3,900** sq ft) in Austin, Texas, collectively known as the "**Donley Facilities**"[241](index=241&type=chunk)[242](index=242&type=chunk) - The **Donley Facilities** leases were extended on a month-to-month basis effective May **1**, **2025**, with a monthly rent of **$14,186**[242](index=242&type=chunk) - A new **89**-month lease for a **17,628** sq ft **Metric facility** in Austin was signed on January **29**, **2025**, commencing July **1**, **2025**, with a total contractual base rent obligation of approximately **$3.0 million**[243](index=243&type=chunk) - The company expects to relocate to the **Metric facility** during fiscal year **2026**, consolidating all Austin-based functions[244](index=244&type=chunk) [Item 3. Legal Proceedings](index=51&type=section&id=Item%203.%20Legal%20Proceedings) **Astrotech** is periodically involved in legal and administrative proceedings, but management does not believe any individual or aggregate matters will have a material adverse effect on the company's financial position or results of operations - The company is subject to legal and administrative proceedings, settlements, investigations, claims, and actions from time to time[245](index=245&type=chunk) - Management assesses the likely outcome of litigation based on various factors and does not believe any current matters will have a material adverse effect on the company's financial position or results of operations[245](index=245&type=chunk) [Item 4. Mine Safety Disclosures](index=51&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[246](index=246&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=51&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) **Astrotech's** common stock trades on The **Nasdaq Capital Market** under **ASTC**, with **1,758,953** shares outstanding as of September **24**, **2025**, and no cash dividends paid or intended - Common stock is traded on The **Nasdaq Capital Market** under the symbol **ASTC**[3](index=3&type=chunk)[248](index=248&type=chunk) - As of September **24**, **2025**, **1,758,953** shares of common stock were issued and outstanding, held by approximately **28** record holders[5](index=5&type=chunk)[249](index=249&type=chunk) - The closing sale price on September **24**, **2025**, was **$5.14** per share[249](index=249&type=chunk) - The company has never paid cash dividends and has no intention of paying dividends in the future[248](index=248&type=chunk) [Item 6. Reserved](index=51&type=section&id=Item%206.%20Reserved) This item is reserved and contains no information - Item **6** is reserved[250](index=250&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=51&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) **Astrotech's MD&A** provides an overview of its financial condition and results of operations for fiscal years **2025** and **2024**, noting decreased revenue, increased net loss, and the need for additional funding - **Astrotech's MD&A** covers financial condition and results of operations for fiscal years ended June **30**, **2025** and **2024**[250](index=250&type=chunk) - The company experienced a decrease in total revenue and an increased net loss in fiscal year **2025**, primarily due to fewer **TRACER 1000** unit sales[274](index=274&type=chunk) - **R&D** expenses increased, contributing to higher operating expenses, while liquidity is supported by cash and short-term investments, though additional funding may be needed for future growth[278](index=278&type=chunk)[279](index=279&type=chunk)[280](index=280&type=chunk) [Overview](index=51&type=section&id=Overview) **Astrotech's** mission is to advance mass spectrometry and gas chromatography for precise chemical compound detection in high-demand environments - **Astrotech's** mission is to advance mass spectrometry and gas chromatography for precise chemical compound detection in high-demand environments[251](index=251&type=chunk)[321](index=321&type=chunk) - The company aims to simplify operation and ruggedize devices for real-time, on-site testing in various sectors like security, industrial, and environmental[251](index=251&type=chunk)[321](index=321&type=chunk) [Fiscal Year 2025 Business Highlights](index=52&type=section&id=Fiscal%20Year%202025%20Business%20Highlights) Key business highlights for fiscal year **2025** include **TRACER 1000** deployments, **DHS R&D** contract, and the launch of the **TRACER 1000 Narcotic Trace Detector** - As of June **30**, **2025**, **TRACER 1000** units are deployed in approximately **34** locations across **16** countries[253](index=253&type=chunk) - **1st Detect Corporation** was awarded a **DHS R&D** contract in January **2025** for next-generation explosives trace detection[254](index=254&type=chunk) - **Astrotech** received and fulfilled a **$429,000** purchase order for six **TRACER 1000 ETDs** from a **TSA**-approved contractor in January **2025**, marking the first **TSA**-approved sale[255](index=255&type=chunk) - **EN-SCAN, Inc.** was created in February **2025** to manufacture environmental testing instruments using proprietary **GC** and **MS** technology[256](index=256&type=chunk) - The enhanced **TRACER 1000 Narcotic Trace Detector** was launched in March **2025**, with its first international deployment in Vietnam in June **2025**[257](index=257&type=chunk)[258](index=258&type=chunk) - The company has initiated **TSA** checkpoint testing for the **TRACER 1000**[259](index=259&type=chunk) [Critical Accounting Estimates](index=53&type=section&id=Critical%20Accounting%20Estimates) The preparation of financial statements requires significant management judgments and estimates, including those for revenue recognition and inventory valuation - The preparation of financial statements requires significant management judgments and estimates, including those for long-lived assets recoverability, revenue recognition, inventory valuation, and loss contingencies[262](index=262&type=chunk) [Revenue Recognition](index=53&type=section&id=Revenue%20Recognition_Critical) **Astrotech** recognizes revenue following **ASC Topic 606**, a five-step process based on contract type and product/service delivery - **Astrotech** recognizes revenue following **ASC Topic 606**, a five-step process based on contract type and product/service delivery, with revenue sources including product sales, grant revenue, and recurring maintenance/warranty services[263](index=263&type=chunk)[264](index=264&type=chunk)[330](index=330&type=chunk) - Revenue from product sales is recognized upon shipment or delivery when control transfers to the customer and collection is probable, with specific criteria for subjective customer acceptance[267](index=267&type=chunk)[336](index=336&type=chunk) - For the year ended June **30**, **2025**, approximately **$1.0 million** in revenue was generated from nine customers, and for **2024**, **$1.7 million** from three customers, comprising a significant portion of total revenue[264](index=264&type=chunk)[331](index=331&type=chunk) Revenue by Recognition Method (in thousands) | Type | 2025 | 2024 | | :--- | :--- | :--- | | Point in Time | **$920** | **$1,560** | | Over Time | **$130** | **$88** | | **Total Revenue** | **$1,049** | **$1,664** | [Valuation of Inventory](index=54&type=section&id=Valuation%20of%20Inventory_Critical) Inventories are valued at the lower of cost or net realizable value, with reserves for estimated obsolescence or excess inventory - Inventories are valued at the lower of cost (standard cost, approximating **FIFO**) or net realizable value, with reserves or write-downs for estimated obsolescence, excess, or unmarketable inventory based on future demand and market conditions[272](index=272&type=chunk)[350](index=350&type=chunk) Inventory Reserves (in thousands) | Year Ended June 30, | Inventory Reserves | | :--- | :--- | | 2025 | **$346** | | 2024 | **$296** | [Warranty Provision](index=54&type=section&id=Warranty%20Provision_Critical) The company provides product warranties for repairs and maintenance, recording an estimated warranty expense provision at the time of sale - The company provides product warranties for repairs and maintenance, recording an estimated warranty expense provision at the time of sale, which is adjusted periodically based on historical experience and anticipated expenses[273](index=273&type=chunk)[342](index=342&type=chunk) Warranty Provision Activity (in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Balance as of June 30, | **$197** | **$184** | | Accruals for new warranties issued | **$75** | **$172** | | Settlements made | **$(62)** | **$(76)** | [Results of Operations for the Years Ended June 30, 2025 and 2024](index=55&type=section&id=Results%20of%20Operations%20for%20the%20Years%20Ended%20June%2030%2C%202025%20and%202024) This table presents the company's revenue, expenses, and net loss for the fiscal years Consolidated Statements of Operations (in thousands) | Metric | 2025 | 2024 | Variance | | :--- | :--- | :--- | :--- | | Revenue | **$1,049** | **$1,664** | **$(615)** | | Cost of revenue | **$574** | **$913** | **$(339)** | | Gross profit | **$475** | **$751** | **$(276)** | | Gross margin | **45.3%** | **45.1%** | **0.2%** | | Selling, general and administrative | **$7,067** | **$7,241** | **$174** | | Research and development | **$8,142** | **$6,790** | **$(1,352)** | | Total operating expenses | **$15,209** | **$14,031** | **$(1,178)** | | Loss from operations | **$(14,734)** | **$(13,280)** | **$(1,454)** | | Other income and expense, net | **$886** | **$1,616** | **$(730)** | | Income tax expense | **$(2)** | **$(2)** | **$0** | | Net loss | **$(13,850)** | **$(11,666)** | **$(2,184)** | | Net unrealized gain | **$313** | **$276** | **$37** | | Total comprehensive loss | **$(13,537)** | **$(11,390)** | **$(2,147)** | - Total revenue decreased by **$615 thousand** (**37.0%**) to **$1.0 million** in fiscal year **2025**, primarily due to fewer **TRACER 1000** units sold compared to the prior year[274](index=274&type=chunk) - Gross profit decreased by **$276 thousand**, but gross margin slightly increased by **0.2%** to **45.3%** in fiscal year **2025** due to higher margins on device sales[275](index=275&type=chunk) - Total operating expenses increased by **$1.2 million** (**8.4%**), driven by a **$1.4 million** (**19.9%**) increase in **R&D** expenses for mass spectrometry and gas chromatography offerings, partially offset by a **$174 thousand** (**2.4%**) decrease in **SG&A**[276](index=276&type=chunk)[278](index=278&type=chunk) - Net loss increased by **$2.2 million** to **$(13.85) million** in fiscal year **2025**, compared to **$(11.67) million** in fiscal year **2024**[274](index=274&type=chunk)[311](index=311&type=chunk) [Liquidity and Capital Resources](index=56&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is primarily financed through public offerings of common stock, with short-term and long-term requirements for working capital and expansion - The company's liquidity is primarily financed through public offerings of common stock, historically raising approximately **$67.6 million** in net proceeds[279](index=279&type=chunk) - Short-term and long-term liquidity requirements include working capital, general corporate expenses, scaling operations, increasing manufacturing capacity, sales and marketing, **R&D**, and public company costs[279](index=279&type=chunk) [Sources of Liquidity](index=56&type=section&id=Sources%20of%20Liquidity) Liquidity is primarily from cash, cash equivalents, and short-term investments, funding operations for at least twelve months Cash and Cash Equivalents (in thousands) | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | **$3,100** | **$10,442** | | Short-term investments | **$15,108** | **$21,474** | | Net working capital | **$19,500** | **$32,200** | - Cash and cash equivalents decreased by **$7.3 million** to **$3.1 million** at June **30**, **2025**, from **$10.4 million** at June **30**, **2024**, due to funding operating expenses[279](index=279&type=chunk)[291](index=291&type=chunk) - The company believes its cash, cash equivalents, and investments will fund operating expenses and capital expenditures for at least twelve months[279](index=279&type=chunk) [Funding Requirements](index=56&type=section&id=Funding%20Requirements) Future capital needs for **R&D** and expansion may require additional equity or debt financing - Expenses are expected to increase due to **R&D** efforts, business expansion, and public company costs, necessitating additional funding[280](index=280&type=chunk) - Future capital requirements depend on **R&D** efforts, collaborations, sales/marketing/manufacturing costs, headcount growth, intellectual property costs, and public company operating costs[281](index=281&type=chunk) - Additional cash needs are expected to be financed through equity offerings, debt financing, or strategic partnerships, which could lead to stockholder dilution or restrictive covenants[281](index=281&type=chunk)[282](index=282&type=chunk) [Trends and Uncertainties](index=57&type=section&id=Trends%20and%20Uncertainties) Inflation and changing prices have not materially impacted historical or anticipated future results - Inflation and changing prices have not materially impacted historical results and are not anticipated to materially impact future results of operations[284](index=284&type=chunk) [Consolidated Balance Sheet](index=57&type=section&id=Consolidated%20Balance%20Sheet) Total assets decreased due to cash usage, while liabilities increased from new lease obligations Consolidated Balance Sheet (in thousands) | Assets | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | **$3,100** | **$10,442** | | Short-term investments | **$15,108** | **$21,474** | | Accounts receivable | **$485** | **$77** | | Inventory, net | **$2,929** | **$2,474** | | Prepaid expenses and other current assets | **$353** | **$261** | | **Total current assets** | **$21,975** | **$34,728** | | Property and equipment, net | **$2,395** | **$2,763** | | Intangible assets, net | **$48** | **$0** | | Operating lease right-of-use assets, net | **$2,225** | **$119** | | Other assets, net | **$346** | **$30** | | **Total Assets** | **$26,989** | **$37,640** | | **Liabilities** | | | | Accounts payable | **$1,066** | **$373** | | Payroll related accruals | **$529** | **$1,174** | | Accrued expenses and other liabilities | **$451** | **$754** | | Lease liabilities, current | **$405** | **$227** | | **Total current liabilities** | **$2,451** | **$2,528** | | Accrued expenses and other liabilities, net of current portion | **$164** | **$232** | | Lease liabilities, net of current portion | **$2,274** | **$73** | | **Total Liabilities** | **$4,889** | **$2,833** | | Stockholders' equity | **$22,100** | **$34,807** | | **Total Liabilities and Stockholders' Equity** | **$26,989** | **$37,640** | - Total assets decreased by **$10.7 million** to **$27.0 million** at June **30**, **2025**, primarily due to a **$12.8 million** decrease in current assets (cash used for operating expenses) and a **$0.3 million** decrease in property and equipment, partially offset by a **$2.1 million** increase in operating lease right-of-use assets due to the **Metric facility** lease[285](index=285&type=chunk)[286](index=286&type=chunk)[287](index=287&type=chunk) - Total liabilities increased by **$2.1 million** to **$4.9 million**, mainly driven by a **$2.2 million** increase in lease liabilities due to the **Metric facility** lease[287](index=287&type=chunk)[308](index=308&type=chunk) - Stockholders' equity decreased by **$12.7 million** to **$22.1 million**, reflecting the net loss and changes in other comprehensive loss[285](index=285&type=chunk)[308](index=308&type=chunk) [Cash Flows](index=58&type=section&id=Cash%20Flows) Net cash used in operating activities increased, while investing activities provided cash from investments Summary of Cash Flows (in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | **$(12,952)** | **$(9,725)** | | Net cash provided by (used in) investing activities | **$5,795** | **$6,140** | | Net cash used in financing activities | **$(185)** | **$(181)** | | Net change in cash and cash equivalents | **$(7,342)** | **$(3,766)** | | Cash and cash equivalents at end of period | **$3,100** | **$10,442** | [Cash and Cash Equivalents](index=58&type=section&id=Cash%20and%20Cash%20Equivalents_CashFlows) Cash and cash equivalents decreased by **$7.3 million** to **$3.1 million** at June **30**, **2025**, primarily due to funding operating expenses - Cash and cash equivalents decreased by **$7.3 million** to **$3.1 million** at June **30**, **2025**, from **$10.4 million** at June **30**, **2024**, primarily due to funding continuing operating expenses[291](index=291&type=chunk) - Net working capital was approximately **$19.5 million** at June **30**, **2025**, down from **$32.2 million** at June **30**, **2024**[291](index=291&type=chunk) [Operating Activities](index=58&type=section&id=Operating%20Activities) Net cash used in operating activities increased by **$3.2 million** to **$13.0 million** in fiscal year **2025**, driven by increases in recurring operating expenses - Net cash used in operating activities increased by **$3.2 million** to **$13.0 million** in fiscal year **2025**, compared to **$9.7 million** in fiscal year **2024**, driven by increases in recurring operating expenses and accounts payable[292](index=292&type=chunk) [Investing Activities](index=58&type=section&id=Investing%20Activities) Net cash provided by investing activities decreased by **$0.3 million** to **$5.8 million** in fiscal year **2025**, due to purchases of property, plant, and equipment - Net cash provided by investing activities decreased by **$0.3 million** to **$5.8 million** in fiscal year **2025**, compared to **$6.1 million** in fiscal year **2024**, due to purchases of property, plant, and equipment, offset by proceeds from short-term investments[293](index=293&type=chunk) [Financing Activities](index=58&type=section&id=Financing%20Activities) Cash used in financing activities was consistent, at **$185 thousand** in fiscal year **2025** compared to **$181 thousand** in fiscal year **2024** - Cash used in financing activities was consistent, at **$185 thousand** in fiscal year **2025** compared to **$181 thousand** in fiscal yea
Astrotech (ASTC) - 2025 Q4 - Annual Results
2025-09-25 20:40
[Fiscal Year 2025 Financial Results Overview](index=1&type=section&id=Fiscal%20Year%202025%20Financial%20Results%20Overview) This section provides an overview of Astrotech's financial performance and key strategic developments for fiscal year 2025, including CEO statements and financial highlights [CEO Statement](index=1&type=section&id=CEO%20Statement) CEO Thomas B. Pickens, III, detailed Astrotech's mission to expand access to precise mass spectrometry and gas chromatography, highlighting global product presence and service expansion - Astrotech's mission is to make the benefits of precise mass spectrometry and gas chromatography accessible to organizations in focus markets[4](index=4&type=chunk) - Mass spectrometry products have a strong international presence, and gas chromatography products deliver meaningful advantages by meeting real-time, on-site industry demands[4](index=4&type=chunk) - Servicing has been expanded to Asia, Europe, and the United States, with confidence in the sales team to drive growth[4](index=4&type=chunk) [Financial Highlights and Key Developments](index=1&type=section&id=Financial%20Highlights%20and%20Key%20Developments) Astrotech reported decreased FY2025 revenue but stable gross margin, alongside global TRACER 1000 deployment, new subsidiary formation, and R&D contract wins Revenue and Gross Margin Performance | Metric | FY2025 | FY2024 | | :----- | :----- | :----- | | Revenue | $1.0 million | $1.664 million | | Gross Margin | 45.3% | 45.1% | - As of June 30, 2025, the TRACER 1000 has been deployed in approximately **34 locations in 16 countries** across the United States, Europe, and Asia[5](index=5&type=chunk) - The Company announced the formation of a new wholly owned subsidiary, **EN-SCAN, Inc.**, to manufacture and sell a new line of instruments for environmental testing applications[5](index=5&type=chunk) - 1st Detect Corporation launched its enhanced **TRACER 1000 Narcotics Trace Detector (NTD)** and was awarded a research and development contract with the Department of Homeland Security (DHS) for next-generation explosives trace detection[5](index=5&type=chunk) - 1st Detect Corporation made its first sale and deployment of its **TRACER 1000 Narcotics Trace Detector in Vietnam**, expanding its footprint across Southeast Asia[5](index=5&type=chunk) Cash and Liquid Investments | Metric | As of June 30, 2025 | | :----- | :------------------ | | Cash and cash equivalents and liquid investments | $18.2 million | [About Astrotech Corporation](index=2&type=section&id=About%20Astrotech%20Corporation) This section provides an overview of Astrotech Corporation, detailing its business model, key subsidiaries and their market focus, and important disclosures regarding forward-looking statements [Company Profile](index=2&type=section&id=Company%20Profile) Astrotech (Nasdaq: ASTC) is a mass spectrometry company that innovates and scales businesses through subsidiaries leveraging core technology for specialized markets - **Astrotech (Nasdaq: ASTC)** is a mass spectrometry company that creates, operates, and scales innovative businesses through its wholly owned subsidiaries[6](index=6&type=chunk) [Subsidiaries and Their Focus](index=2&type=section&id=Subsidiaries%20and%20Their%20Focus) Astrotech's wholly-owned subsidiaries, including 1st Detect, AgLAB, Pro-Control, BreathTech, and EN-SCAN, Inc., apply core technology to diverse specialized markets - **1st Detect:** Develops, manufactures, and markets trace detection systems for security and narcotics screening applications[7](index=7&type=chunk) - **AgLAB:** Designs process analyzers tailored to the agriculture industry[7](index=7&type=chunk) - **Pro-Control:** Produces solutions for in-situ chemical process control in industrial manufacturing[7](index=7&type=chunk) - **BreathTech:** Advancing a breath analysis platform to detect volatile organic compounds (VOCs) associated with infections and critical health conditions[7](index=7&type=chunk) - **EN-SCAN, Inc.:** Delivers portable, ruggedized environmental testing solutions that integrate gas chromatography and mass spectrometry for use in challenging field environments[7](index=7&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) Forward-looking statements are subject to risks including economic conditions, product development, market acceptance, and regulatory changes, with no obligation for the company to update them - Forward-looking statements are subject to risks, trends, and uncertainties that could cause actual results to be materially different from the forward-looking statement[6](index=6&type=chunk) - Key risk factors include inflationary pressures, global economic conditions, the Company's ability to successfully complete product development and obtain regulatory approvals, market acceptance, and potential impacts from evolving regulatory areas[6](index=6&type=chunk) - 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[6](index=6&type=chunk) [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) This section presents Astrotech's consolidated financial statements, including the statements of operations and comprehensive loss, and the balance sheets, for the fiscal year ended June 30, 2025 [Consolidated Statements of Operations and Comprehensive Loss](index=3&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Astrotech reported a larger net loss of **$13.850 million** in FY2025, with revenue decreasing by **37%** and operating expenses rising by **8.39%** due to increased R&D Key Operating Metrics | Metric (in thousands) | FY2025 | FY2024 | YoY Change | | :-------------------- | :----- | :----- | :--------- | | Revenue | $1,049 | $1,664 | -36.96% | | Cost of revenue | $574 | $913 | -37.13% | | Gross profit | $475 | $751 | -36.75% | | Selling, general and administrative | $7,067 | $7,241 | -2.39% | | Research and development | $8,142 | $6,790 | +19.91% | | Total operating expenses | $15,209 | $14,031 | +8.39% | | Loss from operations | $(14,734) | $(13,280) | +10.95% (larger loss) | | Net loss | $(13,850) | $(11,666) | +18.72% (larger loss) | | Net loss per common share (Basic and Diluted) | $(8.32) | $(7.12) | +16.85% (larger loss per share) | [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Astrotech's total assets decreased by **28.31%** to **$26.989 million** as of June 30, 2025, driven by reduced cash and investments, while total liabilities increased by **72.50%** Key Balance Sheet Metrics | Metric (in thousands) | June 30, 2025 | June 30, 2024 | YoY Change | | :-------------------- | :------------ | :------------ | :--------- | | Cash and cash equivalents | $3,100 | $10,442 | -70.33% | | Short-term investments | $15,108 | $21,474 | -29.64% | | Total current assets | $21,975 | $34,728 | -36.71% | | Total assets | $26,989 | $37,640 | -28.31% | | Total current liabilities | $2,451 | $2,528 | -3.05% | | Total liabilities | $4,889 | $2,833 | +72.50% | | Total stockholders' equity | $22,100 | $34,807 | -36.50% |
Astrotech Reports Fiscal Year 2025 Financial Results
Globenewswire· 2025-09-25 20:35
AUSTIN, Texas, Sept. 25, 2025 (GLOBE NEWSWIRE) -- Astrotech Corporation (Nasdaq: ASTC) (the “Company” or “Astrotech”) reported its financial results for the fiscal year ended June 30, 2025. Financial Highlights & Fiscal Year Developments Revenue decreased to $1.0 million as Astrotech’s subsidiary, 1st Detect, sold less devices compared to prior year. Gross margin increased to 45.3% for the year compared to 45.1% in the prior year, due to device sales in fiscal year 2025 having a higher margin compared to t ...
Astrotech Corporation Appoints Nihanth Badugu as Chief Operating Officer
Globenewswire· 2025-08-18 20:45
Company Announcement - Astrotech Corporation has appointed Nihanth Badugu as Chief Operating Officer, effective August 13, 2025 [1][2] - The Board expressed confidence in Mr. Badugu's ability to lead operations and drive growth [2] Background of COO - Nihanth Badugu has been with Astrotech since 2023, previously serving as Director of Program Management [2] - He has extensive experience in program management, having worked at Thermo Fisher Scientific and PVA Consulting Group [2] - Mr. Badugu holds a Bachelor of Science degree from York University [2] Company Overview - Astrotech Corporation specializes in mass spectrometry and operates through various wholly owned subsidiaries [3][4] - The subsidiaries focus on specialized markets, including security screening, agriculture, industrial manufacturing, health diagnostics, and environmental testing [6]
Astrotech Announces Deployment of EN-SCAN Devices to Transform Instant, On-Site Environmental Field Monitoring
Globenewswire· 2025-08-15 12:45
AUSTIN, Texas, Aug. 15, 2025 (GLOBE NEWSWIRE) -- -- Astrotech Corporation (“Astrotech” or the “Company”) (NASDAQ: ASTC) announced today that it has introduced its new EN-SCAN product line (“EN-SCAN”) of ultra-portable rugged environmental testing instruments, featuring its proprietary ATi Gas Chromatograph Column (“GC”) and ATi Mass Spectrometer Technology™ (“MS”) through its wholly owned subsidiary, EN-SCAN, Inc. By deploying EN-SCAN devices from Astrotech, customers gain access to real-time results and on ...
Astrotech to Participate in the H.C. Wainwright 27th Annual Global Investment Conference in September 2025
Globenewswire· 2025-08-13 20:45
Company Overview - Astrotech Corporation is a mass spectrometry company that creates, operates, and scales innovative businesses through its wholly owned subsidiaries [3] - The company is headquartered in Austin, Texas [3] Subsidiaries and Their Focus - 1st Detect develops, manufactures, and markets trace detection systems for security and narcotics screening applications [4] - AgLAB designs process analyzers tailored to the agriculture industry [4] - Pro-Control produces solutions for in-situ chemical process control in industrial manufacturing [4] - BreathTech is advancing a breath analysis platform to detect volatile organic compounds (VOCs) associated with infections and critical health conditions [4] - EN-SCAN, Inc. delivers portable, ruggedized environmental testing solutions that integrate gas chromatography and mass spectrometry for use in challenging field environments [4] Investor Engagement - Thomas B. Pickens III, Chairman and CEO, and Jennifer Cañas, CFO, will host investor meetings on September 9, 2025, at the H.C. Wainwright 27th Annual Global Investment Conference in New York City [1] - Investors can register and request meetings with management via their HC Wainwright representative or Astrotech Investor Relations [2]
Astrotech Subsidiary 1st Detect Announces First Tracer 1000 NTD System Sale in Vietnam
Globenewswire· 2025-07-31 20:45
AUSTIN, Texas , July 31, 2025 (GLOBE NEWSWIRE) -- Astrotech Corporation (Nasdaq: ASTC), a provider of next generation security screening and detection technologies based on Mass Spectrometry (“Mass Spec”), today announced the first sale and deployment of its TRACER 1000™ Narcotics Trace Detector (“TRACER 1000 NTD™”) in Vietnam, by way of its subsidiary 1st Detect. This milestone marks a significant step in expanding the 1st Detect footprint across Southeast Asia and reinforces its commitment to enhancing na ...
Astrotech Corporation Appoints Jennifer Cañas as Chief Financial Officer
Globenewswire· 2025-05-28 21:25
Core Points - Astrotech Corporation has appointed Jennifer Cañas as Chief Financial Officer effective May 22, 2025 [1] - The Board expressed confidence in Ms. Cañas' leadership and experience, highlighting her strong performance since joining the company [2] - Ms. Cañas has over 20 years of experience in senior financial roles, including her previous position as Controller at The Texas Water Company [2] - She is a Certified Public Accountant and graduated Cum Laude with a Bachelor of Science degree in accounting from the University of Houston – Clear Lake [3] - Ms. Cañas is committed to leading the team with integrity and aims to deliver value for shareholders [4] Company Overview - Astrotech Corporation is a mass spectrometry company that develops and commercializes scalable companies through its subsidiaries [4] - Subsidiaries include 1st Detect, AgLAB, Pro-Control, BreathTech, and EN-SCAN, each focusing on different markets such as security, agriculture, and environmental testing [4]
Astrotech (ASTC) - 2025 Q3 - Quarterly Report
2025-05-14 13:20
Revenue and Profitability - Total revenue for the three months ended March 31, 2025, was $534 thousand, an increase of $484 thousand compared to $50 thousand in the same period of 2024[113] - Gross profit for the three months ended March 31, 2025, was $237 thousand, with a gross margin of 44%, compared to a gross profit of $8 thousand and a gross margin of 16% in 2024[113] - Revenue for the nine months ended March 31, 2025, decreased by $761 thousand to $829 thousand compared to $1,590 thousand for the same period in 2024[117] - Gross profit for the nine months ended March 31, 2025, was $401 thousand, down from $723 thousand in 2024, resulting in a gross margin increase to 48% from 45%[117][118] - The company reported a net loss of $10,920 thousand for the nine months ended March 31, 2025, compared to a net loss of $8,707 thousand in 2024[117] Operating Expenses - Operating expenses for the three months ended March 31, 2025, totaled $4,104 thousand, up from $3,541 thousand in the same period of 2024[113] - Operating expenses increased by $1.6 million, or 14.6%, during the nine months ended March 31, 2025, compared to the same period in 2024[119] - Research and development expenses rose by $1.2 million, or 23.6%, during the nine months ended March 31, 2025, driven by increased contractor personnel for mass spectrometry development[120] - Selling, general and administrative expenses increased by $341 thousand, or 6.2%, during the nine months ended March 31, 2025, due to increased sales consulting and hiring[120] Cash Flow and Financial Position - Cash and cash equivalents decreased by $7.6 million to $2.8 million as of March 31, 2025, compared to $10.4 million as of June 30, 2024[122] - Net cash used in operating activities increased by $3.4 million for the nine months ended March 31, 2025, due to higher operating losses[123] - Other income and expense, net decreased by $333 thousand during the nine months ended March 31, 2025, due to reduced interest income from investments[119] - The company's effective tax rate is 0% for the nine months ended March 31, 2025, with expectations of remaining at 0% for the full fiscal year[128] Product Developments and Orders - The TRACER 1000 is currently deployed in approximately 32 locations across 15 countries, including the USA, Europe, and Asia[92] - 1st Detect received a purchase order for the TRACER 1000 ETD valued at $429 thousand, recognized as revenue during the three months ended March 31, 2025[98] - AgLAB's Maximum Value Process has demonstrated the ability to improve ending-weight yields by approximately 15% to 30% during field trials[104] - The AgLAB 1000-D2™ series is focused on optimizing yields in the distillation process for the hemp and cannabis markets[100] - EN-SCAN, Inc. was formed to manufacture and sell instruments for environmental testing, utilizing proprietary AMS Technology for real-time analysis[109] - Pro-Control has introduced the Pro-Control Maximum Value Processing and the Pro-Control 1000-D2™ mass spectrometer for industrial process control applications[111]