Astrotech Corporation (Nasdaq: ASTC) reported its financial
results for the fiscal year ended June 30, 2021.
Fiscal year 2021 represented a turning point for Astrotech
Corporation. We successfully raised a total of $74.3 million in
gross proceeds from equity offerings, strengthening our balance
sheet and sufficiently capitalizing the company for the foreseeable
future. We plan to ramp sales of our mass spectrometry
instrumentation and explore other strategic opportunities to
accelerate growth. The capital further provided the opportunity to
engage a leading contract manufacturer, Sanmina, to manufacture our
various mass spectrometry products, adding flexibility and
scalability.
As the first and only mass spectrometry-based explosives trace
detector (ETD) certified for air and cargo security, 1st Detect’s
TRACER 1000™ continues to demonstrate why we believe mass
spectrometry is the way of the future for ETDs. With its near-zero
false alarms and a more reliable analysis than ion mobility
spectrometry (IMS) based ETDs, cargo facilities using the TRACER
1000 are seeing fewer delays to their operations. In addition,
while the downturn in air travel caused by COVID-19 caused some
delays in our ramping sales in checkpoint security, on August 25,
2021, we announced that we have secured our first purchase order
for the TRACER 1000 to be deployed at an international airport
security checkpoint for passenger screening.
Meanwhile, AgLAB continued its development of the AgLAB-1000™
series of instruments and recently hired hemp and cannabis industry
veteran and mass spectrometry expert, Joe Levinthal, as its Chief
Science Officer. As an authority in distillation of hemp and
cannabis products, Mr. Levinthal is leading AgLAB’s product
development team and finalizing a product that is being designed to
optimize yield during the hemp and cannabis oil extraction and
distillation process, and thereby meaningfully increase top line
revenue for hemp and cannabis oil manufacturers.
Finally, BreathTech continues to move forward in its partnership
with Cleveland Clinic to develop the BreathTest-1000™ to screen for
volatile organic compound (VOC) metabolites found in a person’s
breath that could indicate they may have an infection, including
COVID-19 or pneumonia. In April 2021, we announced that BreathTech
signed an Investigator-Initiated Study Agreement with Cleveland
Clinic to use the BreathTest-1000 to compare exhaled breath from
individuals who have tested positive on a COVID-19 polymerase chain
reaction (PCR) test against subjects who have had a negative
COVID-19 PCR test. We are excited to finish our study and
prospectively enter the ongoing battle against COVID-19.
“The continued development of our mass spectrometry technology
has provided new and exciting opportunities,” stated Thomas B.
Pickens, III, Chairman and Chief Executive Officer of Astrotech
Corporation. “We now have what we believe to be the most rugged and
least expensive mass spectrometer on the market that can provide an
analysis comparable to laboratory instruments that are much more
expensive. Further, our instruments have been designed such that a
highly sophisticated operator is not required, unlike many of the
other mass spectrometers on the market. We continue to look for
opportunities to further exploit our technology and we welcome
discussions with potential industry partners that have applications
where our technology can add value.”
Financial Highlights
Management continues efforts to optimize our resources while
reducing cost and adding financial flexibility.
- During fiscal year 2021, we raised $74.3 million in gross
proceeds from equity offerings, bolstering our balance sheet for
future growth.
- Commercial sales of the TRACER 1000 continued, leading to
revenue of $334 thousand in fiscal year 2021. Additional purchase
orders have been received.
- In August 2021, we received our first purchase order for the
TRACER-1000 to be deployed at an airport security checkpoint.
- We engaged with a leading contract manufacturer, Sanmina, to
manufacture all of our products.
- We optimized our real estate footprint, now that we have
outsourced manufacturing, by consolidating our operations in
Austin, Texas, leading to an estimated $2.1 million in savings over
the life of our new lease, which terminates in 2024.
About Astrotech
Astrotech (NASDAQ: ASTC) is a mass spectrometry company that
launches, manages, and commercializes scalable companies based on
its innovative core technology through its wholly-owned
subsidiaries. 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,
2021
2020
Revenue
$
334
$
488
Cost of revenue
298
449
Gross profit
36
39
Operating expenses:
Selling, general and administrative
4,741
4,716
Research and development
2,692
3,437
Disposal of corporate lease
513
—
Total operating expenses
7,946
8,153
Loss from operations
(7,910
)
(8,114
)
Interest and other (expense), net
(235
)
(197
)
Gain on extinguishment of debt - PPP
loan
542
—
Loss from operations before income
taxes
(7,603
)
(8,311
)
Income tax benefit
—
—
Net loss
$
(7,603
)
$
(8,311
)
Weighted average common shares
outstanding:
Basic and diluted
21,984
6,346
Basic and diluted net loss per common
share:
$
(0.35
)
$
(1.31
)
Other comprehensive loss, net of tax:
Net loss
$
(7,603
)
$
(8,311
)
Available-for-sale securities
Net unrealized losses, net of zero tax
expense
(23
)
—
Total comprehensive loss
$
(7,626
)
$
(8,311
)
ASTROTECH CORPORATION
Consolidated Balance Sheets
(In thousands, except share
data)
June 30,
2021
2020
Assets
Current assets
Cash and cash equivalents
$
35,936
$
3,349
Short-term investments
27,351
—
Accounts receivable
5
101
Inventory, net:
Raw materials
1,056
416
Work-in-process
147
38
Finished goods
297
222
Income tax receivable
—
429
Prepaid expenses and other current
assets
318
117
Total current assets
65,110
4,672
Property and equipment, net
263
99
Assets held for disposal, net
—
237
Operating leases, right-of-use asset,
net
249
851
Other assets, net
11
71
Total assets
$
65,633
$
5,930
Liabilities and stockholders’
equity
Current liabilities
Accounts payable
$
396
$
239
Payroll related accruals
344
433
Accrued expenses and other liabilities
888
627
Income tax payable
2
2
Term note payable - related party
2,500
2,500
Term note payable
—
210
Lease liabilities, current
81
339
Total current liabilities
4,211
4,350
Term note payable, net of current
portion
—
332
Lease liabilities, non-current
215
623
Total liabilities
4,426
5,305
Commitments and contingencies (Note
14)
Stockholders’ equity
Convertible preferred stock, $0.001 par
value, 2,500,000 shares authorized; 280,898 shares of Series D
issued and outstanding at June 30, 2021 and 2020, respectively
—
—
Common stock, $0.001 par value, 50,000,000
shares authorized at June 30, 2021 and 2020; 49,450,558 and
8,250,286 shares issued at June 30, 2021 and 2020, respectively;
49,450,558 and 7,850,362 shares outstanding at June 30, 2021 and
2020, respectively
190,641
190,599
Treasury stock, no shares and 399,916
shares at cost at June 30, 2021 and 2020, respectively
—
(4,129
)
Additional paid-in capital
77,971
13,934
Accumulated deficit
(207,382
)
(199,779
)
Accumulated other comprehensive loss
(23
)
—
Total stockholders’ equity
61,207
625
Total liabilities and stockholders’
equity
$
65,633
$
5,930
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version on businesswire.com: https://www.businesswire.com/news/home/20210920005359/en/
Eric Stober, Chief Financial Officer, Astrotech Corporation,
(512) 485-9530
Astrotech (NASDAQ:ASTC)
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