[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% |

Core Insights - Astrotech Corporation reported a decrease in revenue to $1.0 million for the fiscal year ended June 30, 2025, compared to $1.664 million in the previous year, indicating a decline in device sales [4][9] - The gross margin improved slightly to 45.3% from 45.1% year-over-year, attributed to higher-margin device sales in fiscal year 2025 [4][9] - The company has expanded its international presence, deploying the TRACER 1000 in approximately 34 locations across 16 countries [4][3] Financial Performance - Total revenue for the fiscal year was $1,049,000, down from $1,664,000 in the previous year [9] - Operating expenses increased to $15.209 million from $14.031 million, with research and development expenses rising to $8.142 million from $6.790 million [9] - The net loss for the year was $13.850 million, compared to a net loss of $11.666 million in the prior year, resulting in a net loss per share of $8.32, up from $7.12 [9] Company Developments - Astrotech formed a new subsidiary, EN-SCAN, Inc., to manufacture and sell instruments for environmental testing applications [4][3] - The company launched the enhanced TRACER 1000 Narcotics Trace Detector, capable of rapid detection of narcotic compounds [4][3] - The first sale of the TRACER 1000 Narcotics Trace Detector occurred in Vietnam, marking a significant expansion into Southeast Asia [4][3] Balance Sheet Overview - As of June 30, 2025, the company had $18.2 million in cash and cash equivalents, which is expected to support organic growth and R&D [4] - Total assets decreased to $26.989 million from $37.640 million in the previous year, with current assets also declining significantly [11][12] - Total liabilities increased to $4.889 million from $2.833 million, while stockholders' equity fell to $22.100 million from $34.807 million [12]

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]

Core Insights - Astrotech Corporation has launched the EN-SCAN product line, which includes ultra-portable rugged environmental testing instruments utilizing proprietary gas chromatography and mass spectrometry technology [1][3] - The EN-SCAN devices provide real-time results and on-demand reporting, facilitating continuous monitoring in critical applications such as environmental compliance and emergency response [2][5] - The technology aims to eliminate delays associated with traditional testing methods, allowing for immediate identification of environmental threats [3][4] Product Features - EN-SCAN instruments combine advanced gas chromatography and mass spectrometry technology with a rugged, portable design, delivering lab-grade accuracy in demanding environments [3][7] - The product lineup includes three specialized solutions: - EN-SCAN Rugged-Lab GC-MS for laboratory-quality analysis on-site [8] - EN-SCAN Fenceline Monitor for continuous emissions monitoring at chemical facilities [8] - EN-SCAN Handheld GC for rapid detection of volatile organic compounds in various environments [8] Market Applications - EN-SCAN devices can be preloaded with thousands of chemical signatures for near-instant identification, enhancing their utility in applications like disaster response and contamination tracking [4][5] - The focus on real-time analytics and cost efficiency empowers organizations to make faster, data-driven decisions [5][6]

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]

Core Insights - Astrotech Corporation has successfully sold and deployed its TRACER 1000™ Narcotics Trace Detector in Vietnam, marking a significant expansion in Southeast Asia [1][2] - The TRACER 1000 NTD™ is designed for confirmatory trace narcotics detection, boasting a near-zero false alarm rate, which enhances security authorities' confidence in its results [2] - The global narcotics and explosives trace detection market is valued at over $7 billion and is rapidly growing due to increasing demand for innovative solutions in law enforcement and public safety [2] Company Overview - Astrotech Corporation specializes in mass spectrometry technologies and operates through various subsidiaries, including 1st Detect, which focuses on developing trace detection systems for security applications [5][7] - 1st Detect's products, including the TRACER 1000 NTD™, are designed for ease of use by security professionals and are portable for diverse operational environments [4][7] - The company is committed to providing scalable security solutions and aims to further collaborate in the Southeast Asian region [3]

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]

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]