AgLAB Introduces the AgLAB-1000-D2™
Astrotech Corporation (Nasdaq:ASTC) reported its financial
results for the fiscal year ended June 30, 2020.
Fiscal year 2020 has been a pivotal year for Astrotech
Corporation. We had the first sales of our TRACER 1000™ explosives
trace detector (ETD), we completed a number of successful field
trials including a live screening with the U.S. Transportation
Security Administration (TSA) at Miami International Airport, and
we signed a key contract with a global shipping and logistics
company. In addition, as much of the research and development is
now complete for our core mass spectrometry technology, we looked
to diversify our business. In response to a growing number of
inquiries from the hemp and cannabis market, we launched AgLAB,
Inc. In addition, in response to the COVID-19 pandemic, we launched
BreathTech Corporation to continue the foundational research on
breath analysis that was conducted in conjunction with UT Health
San Antonio, as we look to develop a screening instrument for lung
diseases, including COVID-19 and pneumonia. Finally, we
consolidated ownership of all mass spec-based intellectual property
with Astrotech Technologies, Inc. (ATI) as we look to license the
technology to other attractive markets.
“With the sales of our TRACER 1000 product proving the validity
of our next generation mass spectrometry technology, we are eager
to expand the markets we serve. AgLAB, Inc. has licensed the
technology for the agriculture market and is developing the
AgLAB-1000™ series of mass spectrometers for the fast-growing hemp
and cannabis industry. In addition, BreathTech Corporation has
licensed the technology for the breath analysis market and is
developing the BreathTest-1000™ to screen for volatile organic
compound (VOC) metabolites in the breath caused by diseased lungs.
We hope that 1st Detect will see a growing demand for the TRACER
1000 and that AgLAB and BreathTech will successfully complete the
development of the AgLAB-1000 and the BreathTest-1000. We believe
that we are positioned well for future growth with highly
differentiated products for attractive and growing markets,” stated
Thomas B. Pickens, Chairman and Chief Executive Officer of
Astrotech Corporation. “This coming fiscal year will be defining
for us as we look to expand sales of the TRACER 1000, launch the
AgLAB-1000 in the hemp and cannabis market, and offer a game
changing breath analysis tool to help in the battle against
COVID-19.”
Today, AgLAB is also announcing the official introduction of the
AgLAB-1000-D2™. The D2 is a testing device that has been designed
to increase consistency, potency, and productivity in the hemp and
cannabis oil extraction and distillation process while maximizing
the product quality and yield. “We believe it will be the only
solution currently on the market that can provide critical
information on the extraction and distillation process in near
real-time, making it an essential tool for the high-end operator,”
said Mr. Pickens.
Financial Highlights
Management continues efforts to optimize our resources while
reducing cost and adding financial flexibility.
- Revenue generated in fiscal year 2020 was $488 thousand, an
increase of 284% from the prior fiscal year.
- Total operating expenses decreased by 3.6% for the fiscal year
ended June 30, 2020, compared to the fiscal year ended June 30,
2019, due to an ongoing emphasis on optimizing our resources
despite the added expenses associated with several capital raises
and with launching two new subsidiaries.
- Monthly cash burn for fiscal year 2020 was reduced to
approximately $575 thousand, an 18.2% reduction from our run rate
in fiscal year 2019.
- During fiscal year 2020, we raised $8.7 million, including a
$2.5 million investment from the Chairman and CEO, two registered
direct offerings of approximately $4.4 million, $1.3 million
through the ATM (at-the-market offering) through B. Riley, and $0.5
million through the Paycheck Protection Program administered by the
Small Business Administration (SBA).
About Astrotech
Astrotech (NASDAQ:ASTC) is a science and technology development
and commercialization company that launches, manages, and builds
scalable companies based on innovative technology in order to
maximize shareholder value. 1st Detect develops,
manufactures, and sells trace detectors for use in the security and
detection market. AgLAB is developing chemical analyzers for
use in the agriculture market. BreathTech is developing a
breath analysis tool to provide early detection of lung diseases.
Astrotech is headquartered in Austin, Texas. For information,
please visit www.astrotechcorp.com.
About AgLAB-1000™ and BreathTest-1000™
This press release contains information about our new products
under development, AgLAB-1000 and BreathTest-1000. Product
development involves a high degree of risk and uncertainty, and
there can be no assurance that our new products will be
successfully developed, achieve their intended benefits, receive
full market authorization, or be commercially successful. In
addition, FDA approval will be required to market BreathTest-1000
in the United States. Obtaining FDA approval is a complex and
lengthy process, and there can be no assurance that FDA approval
for BreathTest-1000 will be granted on a timely basis or at
all.
Forward-Looking Statements
This press release contains forward-looking statements that are
made pursuant to the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to risks, trends, and uncertainties that
could cause actual results to be materially different from the
forward-looking statement. These factors include, but are not
limited to, the severity and duration of the COVID-19 pandemic and
its impact on the U.S. and worldwide economy, the timing, scope and
effect of further U.S. and international governmental, regulatory,
fiscal, monetary and public health responses to the COVID-19
pandemic, the Company’s use of proceeds from the common stock
offerings, whether we can successfully complete the development of
our new products and proprietary technologies, whether we can
obtain the FDA and other regulatory approvals required to market
our products under development in the United States or abroad, and
whether the market will accept our products and services, as well
as other risk factors and business considerations described in the
Company’s Securities and Exchange Commission filings including the
annual report on Form 10-K. Any forward-looking statements in this
document should be evaluated in light of these important risk
factors. In addition, any forward-looking statements included in
this press release represent the Company’s views only as of the
date of its publication and should not be relied upon as
representing its views as of any subsequent date. The Company
assumes no obligation to update these forward-looking
statements.
ASTROTECH CORPORATION
Consolidated Statements of
Operations and Comprehensive Loss
(In thousands, except per share
data)
June 30,
2020
2019
Revenue
$
488
$
127
Cost of revenue
449
90
Gross profit
39
37
Operating expenses:
Selling, general and administrative
4,716
4,876
Research and development
3,437
3,578
Total operating expenses
8,153
8,454
Loss from operations
(8,114
)
(8,417
)
Interest and other (expense) income,
net
(197
)
25
Loss from operations before income
taxes
(8,311
)
(8,392
)
Income tax benefit
—
858
Net loss
$
(8,311
)
$
(7,534
)
Weighted average common shares
outstanding:
Basic and diluted
6,346
4,940
Basic and diluted net loss per common
share:
$
(1.31
)
$
(1.53
)
Other comprehensive loss, net of tax:
Net loss
$
(8,311
)
$
(7,534
)
Available-for-sale securities
Reclassification adjustment for realized
losses included in net loss, net of zero tax expense
—
31
Total comprehensive loss
$
(8,311
)
$
(7,503
)
ASTROTECH CORPORATION
Consolidated Balance Sheets
(In thousands, except share
data)
June 30,
2020
2019
Assets
Current assets
Cash and cash equivalents
$
3,349
$
1,588
Accounts receivable
101
3
Inventory:
Raw materials, net
416
150
Work-in-process
38
181
Finished goods
222
—
Income tax receivable
429
429
Prepaid expenses and other current
assets
117
371
Total current assets
4,672
2,722
Property and equipment, net
99
469
Assets held for disposal, net
237
—
Operating leases, right-of-use asset,
net
851
—
Long-term income tax receivable
—
429
Other assets, net
71
72
Total assets
$
5,930
$
3,692
Liabilities and stockholders’
equity
Current liabilities
Accounts payable
$
239
$
160
Payroll related accruals
433
319
Accrued expenses and other liabilities
627
357
Income tax payable
2
2
Term note payable - related party
2,500
—
Term note payable
210
—
Lease liabilities, current
339
—
Total current liabilities
4,350
838
Term note payable, net of current
portion
332
—
Lease liabilities, non-current
623
—
Other liabilities
—
146
Total liabilities
5,305
984
Commitments and contingencies (Note
14)
Stockholders’ equity
Convertible preferred stock, $0.001 par
value, 2,500,000 shares authorized; 0 and 280,898 shares of Series
C and 280,898 shares of Series D issued and outstanding at June 30,
2020 and 2019, respectively
—
—
Common stock, $0.001 par value, 50,000,000
and 15,000,000 shares authorized at June 30, 2020 and 2019,
respectively; 8,250,286 and 6,184,698 shares issued at June 30,
2020 and 2019, respectively; 7,850,362 and 5,775,171 shares
outstanding at June 30, 2020 and 2019, respectively
190,599
190,571
Treasury stock, 399,916 shares at cost at
June 30, 2020 and 2019
(4,129
)
(4,129
)
Additional paid-in capital
13,934
7,964
Accumulated deficit
(199,779
)
(191,698
)
Total stockholders’ equity
625
2,708
Total liabilities and stockholders’
equity
$
5,930
$
3,692
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version on businesswire.com: https://www.businesswire.com/news/home/20200908005406/en/
Eric Stober, Chief Financial Officer, Astrotech Corporation,
(512) 485-9530
Astrotech (NASDAQ:ASTC)
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