Astrotech (ASTC) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenue decreased by $391 thousand in Q1 FY2025, with revenue primarily from ongoing consumable and maintenance services of the TRACER 1000 [109]. - Gross profit for Q1 FY2025 was $9 thousand, down from $183 thousand in Q1 FY2024, resulting in a gross margin of 26%, a decrease of 17% year-over-year [110]. - Operating expenses increased by $119 thousand, or 3.4%, in Q1 FY2025 compared to Q1 FY2024, driven by higher selling, general, and administrative expenses [112]. - Research and development expenses rose by $77 thousand, or 4.1%, in Q1 FY2025, attributed to increased personnel to support mass spectrometry development [113]. - Other income and expense, net decreased by $73 thousand in Q1 FY 2025 compared to Q1 FY 2024 due to reduced interest income from investments [114]. Cash Flow and Liquidity - Cash and cash equivalents decreased by $3.9 million to $6.5 million as of September 30, 2024, compared to $10.4 million as of June 30, 2024 [116]. - Net cash used in operating activities increased by $636 thousand for the three months ended September 30, 2024, compared to the same period in 2023 [117]. - Cash used in investing activities decreased by $2.2 million for the three months ended September 30, 2024, primarily due to not purchasing short-term time deposit investments [118]. - The net cash used in financing activities remained unchanged for the three months ended September 30, 2024, compared to the same period in 2023 [119]. - Working capital was approximately $29.5 million as of September 30, 2024, down from approximately $32.2 million as of June 30, 2024 [116]. - There have been no material updates to the Company's expectations for short- and long-term liquidity and operating capital requirements since the last annual report [120]. Product Development and Market Potential - The TRACER 1000 has been deployed in approximately 30 locations across 14 countries in Europe and Asia as of September 30, 2024 [91]. - The TSA approved the TRACER 1000 for the Air Cargo Security Technology List, allowing its use in U.S. air cargo operations [92]. - AgLAB's Maximum Value Process demonstrated a 20% or more improvement in ending-weight yields during field trials [102]. - The U.S. cannabis crop's wholesale value exceeds $6 billion annually, indicating significant market potential for AgLAB's products [99]. - The AgLAB 1000-D2™ is designed to optimize yields in the distillation process for hemp and cannabis, targeting a rapidly growing industry [97]. - Pro-Control has introduced the Pro-Control Maximum Value Processing and the Pro-Control 1000-D2™ mass spectrometer for industrial process control applications [106]. Tax Positions - The effective tax rate for the Company is 0% for the three months ended September 30, 2024, and is expected to remain 0% for the full fiscal year 2025 [121]. - The Company has approximately $593 thousand of uncertain tax positions as of September 30, 2024, all accounted as contra-deferred tax assets [124]. Equipment Acquisition - The Company acquired equipment worth $0.2 million during the three months ended September 30, 2024 [118].