Astrotech (US:ASTC)2024-05-14 12:45Financial Performance - For the quarter ended March 31, 2024, the company reported revenue of $35,000, a decrease from $24,000 in the same quarter of 2023[132]. - Gross profit for the quarter was $11,000, resulting in a gross margin of 16%, down from 31% in the prior year[132]. - Total operating expenses increased to $3,541,000 from $2,761,000, with significant rises in selling, general, and administrative expenses (up 30% to $1,833,000) and research and development expenses (up 26% to $1,708,000)[132]. - The net loss for the quarter was $3,154,000, compared to a net loss of $2,375,000 in the same quarter of 2023, indicating a worsening financial position[132]. - Total revenue increased by $15 thousand, or 42.9%, in Q3 FY 2024 compared to Q3 FY 2023, primarily due to increased maintenance and consumable revenue from more deployed TRACER 1000 units[134]. - Gross profit for Q3 FY 2024 was $723 thousand, with a gross margin of 45%, compared to a gross profit of $125 thousand and a gross margin of 37% in Q3 FY 2023[138]. - Operating expenses rose by $780 thousand, or 28.3%, in Q3 FY 2024, driven by increases in selling, general, and administrative expenses, as well as research and development expenses[135][139]. - For the nine months ended March 31, 2024, total revenue increased by $1.3 million, or 3.7%, compared to the same period in 2023, mainly due to new unit sales of TRACER 1000[137]. - The company reported a net loss of $8.7 million for the nine months ended March 31, 2024, compared to a net loss of $7.3 million for the same period in 2023[138]. Research and Development - Research and development expenses increased by $1.3 million, or 34.1%, during the nine months ended March 31, 2024, largely due to headcount increases and technology development[142]. - The AgLAB 1000-D2 mass spectrometer has demonstrated an average improvement of 30% in ending-weight yields during field trials[125]. - The AgLAB Maximum Value Processing system has been shown to increase revenue by an average of 32% through real-time data analysis[125]. - The company is actively marketing the Pro-Control-1000 mass spectrometer to large distillers and chemical manufacturers, focusing on process control applications[129]. Cash Flow and Assets - Cash and cash equivalents decreased by $6.3 million to $8.5 million as of March 31, 2024, compared to $14.2 million as of June 30, 2023, primarily due to funding operating expenses[146]. - Net cash used in operating activities increased by $897 thousand for the nine months ended March 31, 2024, compared to the same period in 2023[147]. - Other income and expense, net increased by $223 thousand during the nine months ended March 31, 2024, due to higher income from short-term investments as interest rates increased[142]. Market and Product Deployment - The TRACER 1000 explosives trace detector has been deployed in approximately 30 locations across 14 countries as of March 31, 2024[116]. - The company has accepted a significant purchase order for seven TRACER 1000 units for deployment at an airport in Romania, successfully delivered in the second fiscal quarter of 2024[118]. - The U.S. CBD market is projected to reach $20 billion by 2024, reflecting a compound annual growth rate of 49% from 2019 to 2024[123]. Internal Controls and Legal Matters - The company maintained effective disclosure controls and procedures as of March 31, 2024, providing reasonable assurance for timely reporting[157]. - There were no changes in internal controls over financial reporting during the last fiscal quarter ended March 31, 2024, that materially affected the company's financial reporting[158]. - Management does not believe any ongoing legal proceedings will have a material adverse effect on the company's financial position or results of operations[159]. Deferred Tax Assets - The company has established a full valuation allowance on its deferred tax assets due to cumulative losses and expected future losses[152].