Astrotech (ASTC) - 2025 Q2 - Quarterly Report

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].