Astrotech Corporation (NASDAQ: ASTC) reported its financial
results for the first quarter of fiscal year 2021, which ended
September 30, 2020.
In October, we completed two strategic capital raises for a
total of $24.2 million, strengthening our balance sheet for our
future growth. The financings allow for continued operating
expenses and working capital as we increase sales of our TRACER
1000™ explosives trace detector (ETD) to DHL (Deutsche Post AG) and
other customers in the security market, launch the AgLAB-1000-D2™
into the hemp and cannabis industry, and develop, in partnership
with Cleveland Clinic, 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 Coronavirus
Disease 2019 (“COVID-19”) or the resulting disease, pneumonia.
In September, we announced the completion of non-detection
testing with the US Transportation Security Administration (TSA),
an important milestone that positions us well for detection
testing, which is the final phase of TSA’s Air Cargo Screening
Technology Qualification Test (ACSQT). Once detection testing is
completed successfully, we understand that the TRACER 1000™ will be
listed on the Air Cargo Screening Technology List (ACSTL) as an
“approved” device and thereby approved for cargo sales in the
United States. We also announced that we surpassed $1 million in
purchase orders of our TRACER 1000 with an additional $1 million in
future service and support commitments as we look to continue to
gain market share in the domestic and international ETD
markets.
“We are excited to have passed the $1 million milestone for our
TRACER 1000 in October. We believe we offer the most advanced ETD
on the market and we are excited to be nearing completion of
detection testing with the TSA,” stated Thomas B. Pickens III,
Chairman and Chief Executive Officer of Astrotech Corporation. “We
are also thrilled to have entered into a partnership between
BreathTech and Cleveland Clinic, one of the world’s leading breath
analysis institutions. Dr. Dweik and his colleagues at Cleveland
Clinic have successfully led many clinical trials applying mass
spectrometry to identify unique metabolites using breath samples.
We believe that our technology has the potential to play an
important role in providing a quick, non-invasive, easy-to-use
screening device that can be utilized in numerous locations
including hospitals, nursing homes, schools, and airports as we
look to get all of our lives back to normal again.”
First Quarter Fiscal Year 2021
Financial Highlights
Management continues efforts to optimize our resources while
reducing cost and adding financial flexibility.
- Commercial sales of the TRACER 1000 continued, leading to
revenue of $140 thousand for the first quarter of fiscal 2021.
Additional purchase orders have already been received.
- SG&A expenses decreased $276 thousand, or 23.0%, and
R&D expenses decreased $246 thousand, or 28.8%.
- Monthly cash outlay for this fiscal year has been reduced to
approximately $493 thousand, a 19.1% reduction from our cash outlay
through the first three months of fiscal year 2020.
- The Company terminated its corporate office lease in Austin,
Texas, resulting in net cash savings of approximately $870 thousand
over the next three years.
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
Condensed Consolidated Statements
of Operations and Comprehensive Loss
(In thousands, except per share
data)
(Unaudited)
Three Months Ended
September 30,
2020
2019
Revenue
$
140
$
1
Cost of revenue
113
—
Gross profit
27
1
Operating expenses:
Selling, general and administrative
926
1,202
Research and development
609
855
Disposal of corporate lease
544
—
Total operating expenses
2,079
2,057
Loss from operations
(2,052
)
(2,056
)
Interest and other expense, net
(59
)
(12
)
Loss from operations before income
taxes
(2,111
)
(2,068
)
Income tax benefit
—
—
Net loss
$
(2,111
)
$
(2,068
)
Weighted average common shares
outstanding:
Basic and diluted
7,719
5,591
Basic and diluted net loss per common
share:
Net loss
$
(0.27
)
$
(0.37
)
Total comprehensive loss
$
(2,111
)
$
(2,068
)
ASTROTECH CORPORATION
Condensed Consolidated Balance
Sheets
(In thousands, except share and
per share data)
September 30, 2020
June 30, 2020
Assets
Current assets
Cash and cash equivalents
$
1,853
$
3,349
Accounts receivable
52
101
Inventory:
Raw materials
114
416
Work-in-process
337
38
Finished goods
161
222
Income tax receivable
—
429
Prepaid expenses and other current
assets
283
117
Total current assets
2,800
4,672
Property and equipment, net
100
99
Assets held for disposal
—
237
Operating leases, right-of-use assets,
net
287
851
Other assets
—
71
Total assets
$
3,187
$
5,930
Liabilities and stockholders’ equity
(deficit)
Current liabilities
Accounts payable
75
239
Payroll related accruals
473
433
Accrued expenses and other liabilities
676
627
Income tax payable
2
2
Term note payable - related party
2,500
2,500
Term note payable
330
210
Lease liabilities
198
339
Total current liabilities
4,254
4,350
Term note payable, net of current
portion
211
332
Lease liabilities, net of current
portion
166
623
Other liabilities
—
—
Total liabilities
4,631
5,305
Commitments and contingencies
Stockholders’ equity (deficit)
Convertible preferred stock, $0.001 par
value, 2,500,000 shares authorized; 280,898 shares of Series D
issued and outstanding at September 30, 2020 and June 30, 2020
—
—
Common stock, $0.001 par value, 50,000,000
shares authorized; 8,243,686 and 8,250,286 shares issued at
September 30, 2020 and June 30, 2020, respectively; 7,843,770 and
7,850,362 shares outstanding at September 30, 2020 and June 30,
2020, respectively
190,599
190,599
Treasury stock, 399,916 shares at cost at
September 30, 2020 and June 30, 2020
(4,129
)
(4,129
)
Additional paid-in capital
13,976
13,934
Accumulated deficit
(201,890
)
(199,779
)
Total stockholders’ equity
(deficit)
(1,444
)
625
Total liabilities and stockholders’
equity (deficit)
$
3,187
$
5,930
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201112005675/en/
Eric Stober, Chief Financial Officer, Astrotech Corporation,
(512) 485-9530
Astrotech (NASDAQ:ASTC)
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