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]

Revenue and Sales Performance - Fiscal Year 2025 Q3 revenue reached $534 thousand, a significant increase from $50 thousand in Q3 of Fiscal Year 2024, driven by TRACER 1000™ shipments, a government grant, and recurring sales[4] - The gross profit for Q3 of Fiscal Year 2025 was $237 thousand, a notable increase from $8 thousand in Q3 of Fiscal Year 2024[10] Expenses and Losses - The net loss for Q3 of Fiscal Year 2025 was $3.633 million, compared to a net loss of $3.154 million in Q3 of Fiscal Year 2024[10] - Operating expenses for Q3 of Fiscal Year 2025 were $4.104 million, compared to $3.541 million in Q3 of Fiscal Year 2024, reflecting increased investment in R&D and marketing[10] Cash and Equity - Cash, cash equivalents, and liquid investments totaled $20.9 million as of March 31, 2025, down from $31.9 million at June 30, 2024[4] - Total stockholders' equity decreased to $24.752 million as of March 31, 2025, down from $34.807 million at June 30, 2024[12] Product Development and Launches - The Company launched four product lines, including TRACER NTD, Pro-Control, and EN-SCAN, aimed at expanding sales opportunities in various markets[2] - A research and development contract worth $429 thousand was awarded to the 1st Detect subsidiary by the Department of Homeland Security for the TRACER 1000 project[4] - The Company created a new wholly owned subsidiary, EN-SCAN, Inc., to manufacture and sell instruments for environmental testing applications[4] - The TRACER 1000 NTD has been configured to screen for synthetic opiates and novel psychoactive substances, enhancing its capabilities in drug detection[4]

Core Insights - Astrotech Corporation reported a significant increase in revenue for Q3 of fiscal year 2025, reaching $534 thousand compared to $50 thousand in the same quarter of fiscal year 2024, driven by TRACER 1000 shipments, a government grant, and recurring sales [6] - The company has launched four product lines aimed at various markets, including airport security, narcotics detection, and environmental monitoring, indicating a strong growth potential [2][4] - Astrotech's consolidated balance sheet shows a strong cash position with $20.9 million in cash and liquid investments, down from $31.9 million as of June 30, 2024, supporting ongoing R&D and marketing efforts [6] Financial Performance - For the three months ended March 31, 2025, the company reported a gross profit of $237 thousand, a significant increase from $8 thousand in the same period of the previous year [11] - Operating expenses totaled $4.1 million for Q3 2025, compared to $3.5 million in Q3 2024, leading to a loss from operations of $3.9 million [11] - The net loss for Q3 2025 was $3.6 million, compared to a net loss of $3.2 million in Q3 2024, reflecting ongoing investment in product development and market expansion [11] Recent Developments - Astrotech's subsidiary, 1st Detect, was awarded a research and development contract with the Department of Homeland Security to advance the TRACER 1000 for explosives trace detection [6] - The company established a new subsidiary, EN-SCAN, Inc., to focus on environmental testing applications, further diversifying its product offerings [6] - The TRACER 1000 NTD has been configured to screen for synthetic opiates and novel psychoactive substances, enhancing its capabilities in addressing the global drug crisis [6]

Core Insights - Astrotech Corporation has launched the enhanced TRACER 1000™ Narcotics Trace Detector, which is designed to combat the global drug crisis by accurately screening for synthetic opiates and novel psychoactive substances [1][4]. Product Features - The TRACER 1000 NTD utilizes advanced mass spectrometry technology to detect minute traces of illicit substances, including fentanyl analogs and emerging synthetic drugs, which traditional methods struggle to identify [2][8]. - It offers full-spectrum screening capabilities, high precision and sensitivity, rapid analysis with results in seconds, and a user-friendly interface that minimizes training time for personnel [8]. Industry Context - The product addresses the growing crisis of synthetic opiates and novel psychoactive substances, which are contributing to overdose deaths and challenging public safety [3]. - The TRACER 1000 NTD is positioned as a critical tool for law enforcement, border security, first responders, and public health agencies to enhance safety and security [3][4]. Company Overview - 1st Detect, a subsidiary of Astrotech Corporation, specializes in developing, manufacturing, and selling trace detectors for security and detection markets [6]. - Astrotech Corporation is headquartered in Austin, Texas, and focuses on scalable companies based on innovative mass spectrometry technology [7].

Core Viewpoint - Astrotech Corporation has established a new subsidiary, EN-SCAN, Inc., to manufacture and sell advanced environmental testing instruments utilizing proprietary gas chromatography and mass spectrometry technology, aimed at providing real-time analysis for air, water, and soil [1][2]. Company Overview - EN-SCAN is based in Austin, Texas, and focuses on developing portable environmental testing solutions that integrate gas chromatography and mass spectrometry technology for industrial, environmental, and regulatory applications [4]. - Astrotech Corporation, also headquartered in Austin, Texas, specializes in mass spectrometry and manages scalable companies through its subsidiaries [5]. Product Offerings - The EN-SCAN product line includes: - **Rugged-Lab GC-MS**: A transportable GC-MS for on-site, lab-quality analysis of air, water, and soil, supporting regulatory enforcement and industrial compliance [7]. - **EN-SCAN Fenceline Monitor**: A continuous emissions monitoring system for detecting pollutants like BTEX at refineries and chemical processing plants, providing real-time results [7]. - **EN-SCAN Handheld GC**: A lightweight, portable gas chromatograph for on-site detection of volatile organic compounds and contaminants, suitable for environmental testing and emergency response [7]. Market Context - The environmental testing market has seen significant growth in recent years, creating a demand for durable and rugged instruments capable of performing in outdoor and hazardous environments [2]. - EN-SCAN's solutions are designed to deliver accurate, real-time monitoring, enabling organizations to make data-driven decisions while reducing testing costs and time delays [2]. Event Participation - EN-SCAN will introduce its product line at the Pittcon 2025 conference in Boston, scheduled for March 1-5, 2025, which is a major event for laboratory science showcasing advances in analytical research and scientific instrumentation [3].

Revenue Performance - Total revenue decreased by $854 thousand during the second quarter of fiscal year 2025, compared to the second quarter of fiscal year 2024, primarily due to selling fewer TRACER 1000 devices[123]. - Revenue for the three months ended December 31, 2024, was $261 thousand, down from $1,115 thousand in the same period in 2023, resulting in a net loss of $4,009 thousand[122]. - Total revenue for the six months ended December 31, 2024, was $295 thousand, a decrease of $1.2 million compared to the same period in 2023[126]. Gross Margin and Profitability - Gross margin improved to 59% in the three months ended December 31, 2024, compared to 48% in the same period in 2023[122]. - Cost of revenue decreased by $477 thousand in Q2 FY2025 compared to Q2 FY2024, leading to a gross margin increase of 11%[124]. - Gross profit for the six months ended December 31, 2024, was $164 thousand, with a gross margin of 56%, up from 46% in 2023[126]. Operating Expenses - Operating expenses increased to $4,476 thousand in the three months ended December 31, 2024, from $3,600 thousand in the same period in 2023, driven by higher research and development costs[122]. - Operating expenses increased by $1 million, or 14.0%, during the six months ended December 31, 2024, compared to the same period in 2023[128]. - Research and development expenses rose by $936 thousand, or 27.1%, during the six months ended December 31, 2024, driven by increased contractor personnel[134]. Cash Flow and Financial Position - Net cash used in operating activities was $6,730 thousand for the six months ended December 31, 2024, an increase of $1,880 thousand compared to the same period in 2023[129]. - Cash and cash equivalents decreased by $7.2 million as of December 31, 2024, compared to June 30, 2024, due to funding operating expenses[130]. - The effective tax rate for the six months ended December 31, 2024, was 0%, with expectations of remaining at 0% for the full fiscal year 2025[136]. - Other income and expense, net decreased by $188 thousand during the six months ended December 31, 2024, due to less interest income from investments[128]. Product Development and Market Presence - The TRACER 1000 has been deployed in approximately 30 locations across 14 countries in Europe and Asia as of December 31, 2024[100]. - The TSA approved the TRACER 1000 for the Air Cargo Security Technology List in June 2024, allowing its use in U.S. air cargo operations[101]. - AgLAB's Maximum Value Process has demonstrated the ability to improve ending-weight yields by 20% or more during field trials[113]. - The AgLAB 1000-D2™ series is focused on optimizing yields in the distillation process for the hemp and cannabis markets, which has a wholesale value exceeding $6 billion annually in the U.S.[110]. - 1st Detect received a purchase order valued at $429 thousand for TRACER 1000 ETDs from Intuitive Research and Technology Corporation, expected to be recognized as revenue in fiscal year 2025[107]. - The company is exploring advancements from BreathTech's research to apply in other existing and potential new business units[118]. Off-Balance Sheet Arrangements - The company did not have any material off-balance sheet arrangements as of December 31, 2024[134].

Financial Performance - Fiscal year 2025 Q2 revenue was $295 thousand, primarily from activities supporting the U.S. Department of Homeland Security[4] - The company reported a net loss of $4,009 thousand for the three months ended December 31, 2024, compared to a net loss of $2,641 thousand for the same period in 2023[9] - Astrotech's gross profit for Q2 2025 was $164 thousand, compared to $532 thousand in Q2 2024[9] - The company’s operating expenses for Q2 2025 were $4,476 thousand, an increase from $3,600 thousand in Q2 2024[9] - Research and development expenses increased to $2,437 thousand in Q2 2025 from $1,578 thousand in Q2 2024[9] - Astrotech's accumulated deficit reached $244,307 thousand as of December 31, 2024[10] Assets and Investments - Astrotech's cash and cash equivalents and liquid investments totaled $24.7 million, supporting research and development and potential acquisitions[4] - Astrotech's consolidated balance sheet shows total assets of $31,001 thousand as of December 31, 2024[10] Product Development - The company introduced the TRACER NTD narcotics trace detector, capable of accurately identifying fentanyl and other drugs[3] - The company received a purchase order for TRACER 1000 explosive trace detectors from Intuitive Research and Technology Corporation[4]

Financial Highlights - Astrotech Corporation reported Q2 fiscal year 2025 revenue of $295 thousand, primarily from activities supporting the U.S. Department of Homeland Security (DHS) [6] - The company’s consolidated balance sheet shows $24.7 million in cash and cash equivalents, supporting research and development, organic growth, and potential acquisitions [6] Recent Developments - The company is focusing on selling and marketing portable mass spectrometry instruments, with proven products in explosive trace detection used in 14 countries [3] - Astrotech introduced the TRACER NTD, a narcotics trace detector capable of identifying fentanyl and other drugs with high accuracy [3] - A research and development contract was awarded to 1st Detect Corporation by DHS for the TRACER 1000, aimed at next-generation explosives trace detection [6] Financial Performance - For the three months ended December 31, 2024, revenue was $261 thousand, a decrease from $1,115 thousand in the same period of 2023 [9] - The company reported a net loss of $4,009 thousand for the three months ended December 31, 2024, compared to a net loss of $2,641 thousand in the same period of 2023 [9] - Total operating expenses for the three months ended December 31, 2024, were $4,476 thousand, up from $3,600 thousand in the same period of 2023 [9] Company Overview - Astrotech Corporation specializes in mass spectrometry technology through its subsidiaries, including 1Detect, AgLAB, Pro-Control, and BreathTech [4] - The company is headquartered in Austin, Texas, and focuses on scalable companies based on innovative core technology [4]

Executive Changes - Astrotech Corporation announced the resignation of its Chief Financial Officer, Jaime Hinojosa, effective February 14, 2025 [1] - Jaime Hinojosa will continue to serve as CFO until February 14, 2025, and provide transition services through June 30, 2025 [1] - Ryan Polk has been appointed as interim Chief Financial Officer effective February 14, 2025 [1][2] Management Commentary - Jaime Hinojosa is leaving to move closer to family and work for the family business in Houston [2] - Hinojosa expressed gratitude for the opportunity to serve as CFO and highlighted the company's growth over the past decade [2] - CEO Tom Pickens praised Hinojosa's leadership in financial and regulatory reporting, and his dedication to employees, customers, and suppliers [2] Interim CFO Background - Ryan Polk has prior experience as CFO at both public and private companies [2] - Polk brings expertise in scaling companies through organic growth and acquisitions [2] Company Overview - Astrotech Corporation is a mass spectrometry company that commercializes scalable businesses through its subsidiaries [3] - Subsidiaries include 1st Detect (trace detectors for security), AgLAB (chemical analyzers for agriculture), Pro-Control (mass spectrometry for chemical manufacturing), and BreathTech (breath analysis for health screening) [3] - The company is headquartered in Austin, Texas [3]

Core Insights - Astrotech Corporation's subsidiary, 1 Detect, has received a purchase order valued at $429K for its TRACER 1000 explosive trace detectors from Intuitive Research and Technology Corporation, a TSA contractor [1][3] - This marks the first TSA-approved sale of the TRACER 1000 ETD, which utilizes mass spectrometry technology to achieve near-zero false alarms [3][4] - The TRACER 1000 is positioned to enter the U.S. cargo market, leveraging its advanced detection capabilities [3] Company Overview - Astrotech Corporation is a mass spectrometry company that develops and commercializes scalable technologies through its subsidiaries, including 1st Detect, AgLAB, Pro-Control, and BreathTech [5] - 1st Detect focuses on trace detectors for security and detection, while AgLAB develops chemical analyzers for agriculture [5] - The company is headquartered in Austin, Texas, and aims to innovate in various sectors including security, agriculture, and health [5]