Astrotech (US:ASTC)2025-11-13 21:25Product Deployment and Sales - The TRACER 1000™ has been deployed in approximately 34 locations across 16 countries, including the USA, Europe, and Asia as of September 30, 2025[94]. - In April 2025, the company fulfilled a $429,000 purchase order for six TRACER 1000 explosive trace detectors, marking the first TSA-approved sale of this product[100]. - The TRACER 1000 Narcotic Trace Detector was launched on March 10, 2025, specifically designed to screen for synthetic opiates and novel psychoactive substances[99]. - The company has received ECAC certification for the TRACER 1000 in 2019, allowing sales to airport and cargo security customers in the European Union[94]. - The U.S. federal government had a budget for over 6,000 ETD units at checkpoint and baggage screening points for fiscal year 2023, indicating a significant market opportunity for the TRACER 1000[96]. - The TRACER 1000 is now listed in the United States General Services Administration IT Schedule 70, facilitating sales to the federal government[97]. Financial Performance - Total revenue for the three months ended September 30, 2025, increased by $260 thousand, reaching $297 thousand, compared to $34 thousand in the same period of 2024[117]. - Gross profit rose to $188 thousand with a gross margin of 63%, up from 26% in the prior year, reflecting a shift towards higher margin grant revenue and consumables[118]. - Operating expenses increased by $87 thousand, or 2.4%, totaling $3,724 thousand, driven by higher selling, general and administrative expenses[119]. - Net cash used in operating activities was $3,936 thousand, an increase of $250 thousand compared to $3,686 thousand in the same period of 2024[121]. - Cash provided by investing activities significantly increased by $3,325 thousand, totaling $3,518 thousand, primarily due to selling short-term time deposit investments[124]. - As of September 30, 2025, cash and cash equivalents were $2.7 million, down from $3.1 million as of June 30, 2025[122]. - The company reported a net loss of $3,465 thousand for the three months ended September 30, 2025, compared to a net loss of $3,278 thousand in the same period of 2024[117]. - Other income and expense, net decreased by $279 thousand, primarily due to lower dividend income and a realized loss on securities[119]. - The effective tax rate for the company is 0% for the three months ended September 30, 2025, with expectations of remaining at 0% for the full fiscal year 2026[128]. - The company has approximately $763 thousand of uncertain tax positions as of September 30, 2025, all accounted as contra-deferred tax assets[131]. Product Development and Market Strategy - The AgLAB 1000-D2™ has demonstrated the potential to improve THC and CBD oil yields by approximately 15% to 30% during field trials[107]. - AgLAB is targeting the rapidly growing CBD and hemp market, which is expected to expand due to increasing acceptance of medicinal cannabis products and legislative changes[104]. - The company has entered into a master lease agreement with SC Laboratories for joint marketing of the AgLAB 1000-D2™ mass spectrometer[108]. - The formation of EN-SCAN, a new subsidiary, aims to manufacture instruments for environmental testing, focusing on real-time air, water, and soil analysis[114].