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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2021

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ___________

Commission file number 001-34426

 

Astrotech Corporation

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

 

91-1273737

State or Other Jurisdiction of

Incorporation or Organization

 

I.R.S. Employer Identification No.

 

 

 

2105 Donley Drive, Suite 100, Austin, Texas

 

78758

Address of Principal Executive Offices

 

Zip Code

 

(512) 485-9530

Registrant’s Telephone Number, Including Area Code

 

Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, $0.001 par value per share

 

ASTC

 

NASDAQ Stock Market, LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes      No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes     No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

  

Accelerated filer

 

 

Non-accelerated filer

 

 

  

Smaller reporting company

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  Yes     No 

As of February 7, 2022, the number of shares of the registrant’s common stock outstanding was: 49,569,113.

 

 

 


 

ASTROTECH CORPORATION AND SUBSIDIARIES

QUARTERLY REPORT ON FORM 10-Q

TABLE OF CONTENTS

 

 

 

2


 

 

PART I: FINANCIAL INFORMATION

ITEM 1.   Condensed Consolidated Financial Statements

ASTROTECH CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)

 

 

 

December 31,

2021

 

 

June 30,

2021

 

 

 

(Unaudited)

 

 

(Note)

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

30,170

 

 

$

35,936

 

Short-term investments

 

 

27,106

 

 

 

27,351

 

Accounts receivable

 

 

92

 

 

 

5

 

Inventory, net:

 

 

 

 

 

 

 

 

Raw materials

 

 

1,135

 

 

 

1,056

 

Work-in-process

 

 

2

 

 

 

147

 

Finished goods

 

 

277

 

 

 

297

 

Prepaid expenses and other current assets

 

 

516

 

 

 

318

 

Total current assets

 

 

59,298

 

 

 

65,110

 

Property and equipment, net

 

 

870

 

 

 

263

 

Operating leases, right-of-use assets, net

 

 

206

 

 

 

249

 

Other assets

 

 

11

 

 

 

11

 

Total assets

 

$

60,385

 

 

$

65,633

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

 

90

 

 

 

396

 

Payroll related accruals

 

 

741

 

 

 

344

 

Accrued expenses and other liabilities

 

 

853

 

 

 

888

 

Income tax payable

 

 

2

 

 

 

2

 

Term note payable - related party

 

 

500

 

 

 

2,500

 

Lease liabilities, current

 

 

227

 

 

 

81

 

Total current liabilities

 

 

2,413

 

 

 

4,211

 

Lease liabilities, net of current portion

 

 

421

 

 

 

215

 

Total liabilities

 

 

2,834

 

 

 

4,426

 

Commitments and contingencies (Note 13)

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

 

Convertible preferred stock, $0.001 par value, 2,500,000 shares authorized; 280,898 shares of Series D issued and outstanding at December 31, 2021 and June 30, 2021

 

 

 

 

 

 

Common stock, $0.001 par value, 250,000,000 and 50,000,000 shares authorized at December 31, 2021 and June 30, 2021, respectively; 49,514,467 and 49,450,558 shares issued and outstanding at December 31, 2021 and June 30, 2021, respectively

 

 

190,641

 

 

 

190,641

 

Additional paid-in capital

 

 

78,769

 

 

 

77,971

 

Accumulated deficit

 

 

(211,591

)

 

 

(207,382

)

Accumulated other comprehensive loss

 

 

(268

)

 

 

(23

)

Total stockholders’ equity

 

 

57,551

 

 

 

61,207

 

Total liabilities and stockholders’ equity

 

$

60,385

 

 

$

65,633

 

 

Note: The balance sheet at June 30, 2021, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by the United States generally accepted accounting principles for complete financial statements.

.

See accompanying notes to unaudited condensed consolidated financial statements.

3


 

ASTROTECH CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Operations and Comprehensive Loss

(In thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended

December 31,

 

 

Six Months Ended

December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenue

 

$

561

 

 

$

130

 

 

$

748

 

 

$

270

 

Cost of revenue

 

 

441

 

 

 

128

 

 

 

616

 

 

 

241

 

Gross profit

 

 

120

 

 

 

2

 

 

 

132

 

 

 

29

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

1,728

 

 

 

803

 

 

 

3,154

 

 

 

1,729

 

Research and development

 

 

652

 

 

 

758

 

 

 

1,291

 

 

 

1,367

 

Disposal of corporate lease

 

 

 

 

 

 

 

 

 

 

 

544

 

Total operating expenses

 

 

2,380

 

 

 

1,561

 

 

 

4,445

 

 

 

3,640

 

Loss from operations

 

 

(2,260

)

 

 

(1,559

)

 

 

(4,313

)

 

 

(3,611

)

Other income and (expense), net

 

 

80

 

 

 

(63

)

 

 

104

 

 

 

(122

)

Loss from operations before income taxes

 

 

(2,180

)

 

 

(1,622

)

 

 

(4,209

)

 

 

(3,733

)

Income tax benefit

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(2,180

)

 

$

(1,622

)

 

$

(4,209

)

 

$

(3,733

)

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

47,482

 

 

 

15,864

 

 

 

47,455

 

 

 

11,769

 

Basic and diluted net loss per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(0.05

)

 

$

(0.10

)

 

$

(0.09

)

 

$

(0.32

)

Other comprehensive loss, net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(2,180

)

 

$

(1,622

)

 

$

(4,209

)

 

$

(3,733

)

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized loss

 

 

(197

)

 

 

 

 

 

(245

)

 

 

 

Total comprehensive loss

 

$

(2,377

)

 

$

(1,622

)

 

$

(4,454

)

 

$

(3,733

)

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

 

4


 

 

 

ASTROTECH CORPORATION

Condensed Consolidated Statement of Changes in Stockholders’ Equity

(In thousands)

(Unaudited)

 

 

 

Preferred Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series D

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of

Shares

Outstanding

 

 

Amount

 

 

Number of

Shares

Outstanding

 

 

Amount

 

 

Treasury

Stock

Amount

 

 

Additional

Paid-In

Capital

 

 

Accumulated

Deficit

 

 

Accumulated

Other

Comprehensive

Loss

 

 

Total

Stockholders’

Equity

 

Balance at June 30, 2021

 

 

281

 

 

$

 

 

 

49,451

 

 

$

190,641

 

 

$

 

 

$

77,971

 

 

$

(207,382

)

 

$

(23

)

 

$

61,207

 

Net change in available-for-sale marketable securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(48

)

 

 

(48

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

359

 

 

 

 

 

 

 

 

 

359

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,029

)

 

 

 

 

 

(2,029

)

Balance at September 30, 2021

 

 

281

 

 

$

 

 

 

49,451

 

 

$

190,641

 

 

$

 

 

$

78,330

 

 

$

(209,411

)

 

$

(71

)

 

$

59,489

 

Net change in available-for-sale marketable securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(197

)

 

 

(197

)

Stock-based compensation

 

 

 

 

 

 

 

 

63

 

 

 

 

 

 

 

 

 

439

 

 

 

 

 

 

 

 

 

439

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,180

)

 

 

 

 

 

(2,180

)

Balance at December 31, 2021

 

 

281

 

 

$

 

 

 

49,514

 

 

$

190,641

 

 

$

 

 

$

78,769

 

 

$

(211,591

)

 

$

(268

)

 

$

57,551

 

 

 

 

Preferred Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series D

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of

Shares

Outstanding

 

 

Amount

 

 

Number of

Shares

Outstanding

 

 

Amount

 

 

Treasury

Stock

Amount

 

 

Additional

Paid-In

Capital

 

 

Accumulated

Deficit

 

 

Accumulated

Other

Comprehensive

Loss

 

 

Total

Stockholders’

Equity

 

Balance at June 30, 2020

 

 

281

 

 

$

 

 

 

7,850

 

 

$

190,599

 

 

$

(4,129

)

 

$

13,934

 

 

$

(199,779

)

 

$

 

 

$

625

 

Stock offering costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

 

 

 

 

 

 

 

 

(2

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

49

 

 

 

 

 

 

 

 

 

49

 

Restricted stock cancellation

 

 

 

 

 

 

 

 

(6

)

 

 

 

 

 

 

 

 

(5

)

 

 

 

 

 

 

 

 

(5

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,111

)

 

 

 

 

 

(2,111

)

Balance at September 30, 2020

 

 

281

 

 

$

 

 

 

7,844

 

 

$

190,599

 

 

$

(4,129

)

 

$

13,976

 

 

$

(201,890

)

 

$

 

 

$

(1,444

)

Issuance of stock, net of offering costs

 

 

 

 

 

 

 

 

10,714

 

 

 

11

 

 

 

 

 

 

21,819

 

 

 

 

 

 

 

 

 

21,830

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

47

 

 

 

 

 

 

 

 

 

47

 

Restricted stock cancellation

 

 

 

 

 

 

 

 

(17

)

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

(1

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,622

)

 

 

 

 

 

(1,622

)

Balance at December 31, 2020

 

 

281

 

 

$

 

 

 

18,541

 

 

$

190,610

 

 

$

(4,129

)

 

$

35,841

 

 

$

(203,512

)

 

$

 

 

$

18,810

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

5


 

 

ASTROTECH CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

Six Months Ended

December 31,

 

 

 

2021

 

 

2020

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(4,209

)

 

$

(3,733

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Stock-based compensation, net of forfeitures

 

 

798

 

 

 

90

 

Depreciation and amortization

 

 

94

 

 

 

141

 

Loss on disposal of assets

 

 

 

 

 

173

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(87

)

 

 

6

 

Inventory, net

 

 

86

 

 

 

88

 

Income tax receivable

 

 

 

 

 

429

 

Accounts payable

 

 

(306

)

 

 

(11

)

Other assets and liabilities

 

 

140

 

 

 

325

 

Net cash used in operating activities

 

 

(3,484

)

 

 

(2,492

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(264

)

 

 

(16

)

Net cash used in investing activities

 

 

(264

)

 

 

(16

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Repayment of related party debt

 

 

(2,000

)

 

 

 

Payments on lease financing

 

 

(18

)

 

 

(6

)

Proceeds from issuance of stock, net of offering issuance costs

 

 

 

 

 

21,828

 

Net cash (used in) provided by financing activities

 

 

(2,018

)

 

 

21,822

 

Net change in cash and cash equivalents

 

 

(5,766

)

 

 

19,314

 

Cash and cash equivalents at beginning of period

 

 

35,936

 

 

 

3,349

 

Cash and cash equivalents at end of period

 

$

30,170

 

 

$

22,663

 

 

 

 

 

 

 

 

 

 

Reconciliation of cash and cash equivalents and restricted cash at end of period:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

30,170

 

 

$

22,121

 

Restricted cash

 

 

 

 

 

542

 

Total

 

$

30,170

 

 

$

22,663

 

 

 

 

 

 

 

 

 

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

 

 

 

Cash paid for interest

 

$

3

 

 

$

 

Income taxes paid

 

$

 

 

$

 

Acquisition of equipment through financing lease

 

$

394

 

 

$

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

6


 

ASTROTECH CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

(1) General Information

Description of the Company – Astrotech Corporation (Nasdaq: ASTC) (“Astrotech,” the “Company,” “we,” “us,” or “our”), a Delaware corporation organized in 1984, is a mass spectrometry company that launches, manages, and commercializes scalable companies based on its innovative core technology.

 

Basis of Presentation – The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the three and six months ended December 31, 2021 are not necessarily indicative of the results that may be expected for the year ending June 30, 2022. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2021. Certain prior year amounts have been reclassified to conform to the current year presentation.

 

Accounting Pronouncements – In November 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-10, “Government Assistance (Topic 832)” (“ASU 2021-10”), which enhances disclosure of transactions with governments that are accounted for by applying a grant or contribution model. The new pronouncement requires entities to provide information about the nature of the transaction, terms and conditions associated with the transaction, and financial statement line items affected by the transaction. ASU 2021-10 is effective for fiscal years beginning after December 15, 2021. The Company does not expect the adoption of ASU 2021-10 to have a material impact on its financial statements.

 

Our Business Units

 

Astrotech Technologies, Inc.

 

Astrotech Technologies, Inc. (“ATI”) owns and licenses the Astrotech Mass Spectrometer Technology™ (the “AMS Technology”), the platform mass spectrometry technology originally developed by 1st Detect Corporation (“1st Detect”). The AMS Technology has been designed to be inexpensive, small, and easy to use. Unlike other technologies, the AMS Technology works under ultra-high vacuum, which eliminates competing molecules, yielding higher resolution and fewer false alarms. The intellectual property includes 24 patents granted with two additional patents in process along with extensive trade secrets. With a number of diverse market opportunities for the core technology, ATI is structured to license the intellectual property for different fields of use. ATI currently licenses the AMS Technology to three wholly-owned subsidiaries of Astrotech on an exclusive basis, including to 1st Detect for use in the security and detection market, to AgLAB Inc. (“AgLAB”) for use in the agriculture market, and to BreathTech Corporation (“BreathTech”) for use in breath analysis.

 

1st Detect Corporation

 

1st Detect, a licensee of ATI for the security and detection market, has developed the TRACER 1000™, the world’s first mass spectrometry (“MS”) based explosives trace detector (“ETD”) certified by the European Civil Aviation Conference (“ECAC”), designed to replace the ETDs used at airports, cargo and other secured facilities, and borders worldwide. The Company believes that ETD customers are unsatisfied with the currently deployed ETD technology, which is driven by ion mobility spectrometry (“IMS”). The Company believes that IMS-based ETDs are fraught with false positives, as they often misidentify personal care products and other common household chemicals as explosives, causing facility shutdowns, unnecessary delays, frustration, and significant wasted security resources. In addition, there are hundreds of different types of explosives, but IMS-based ETDs have a very limited threat detection library reserved only for those several explosives of largest concern. Adding additional compounds to the detection library of an IMS-based ETD fundamentally reduces the instrument’s performance, further increasing the likelihood of false alarms. In contrast, adding additional compounds to the TRACER 1000’s detection library does not degrade its detection capabilities, as it has a virtually unlimited and easily expandable threat library.

 

In order to sell the TRACER 1000 to airport and cargo security customers in the European Union and certain other countries, ECAC certification is required. We are currently selling the TRACER 1000 to customers who accept ECAC certification.

 

In the United States, the Company is working with the U.S. Transportation Security Administration (“TSA”) towards air cargo certification. On March 27, 2018, the Company announced that the TRACER 1000 was accepted into TSA’s Air Cargo Screening Technology Qualification Test (“ACSQT”) and, on April 4, 2018, the Company announced that the TRACER 1000 was beginning testing with TSA for passenger screening at airports. On November 14, 2019, the Company announced that the TRACER 1000 had been selected by the TSA’s Innovation Task Force to conduct live checkpoint screening at Miami International Airport. With similar protocols as ECAC testing, the Company has received valuable feedback from all programs. Following ECAC certification and the Company's early traction within the cargo market, testing for cargo security continued with the TSA. With the COVID-19 pandemic, all testing within the TSA was put on hold; however, the Company resumed cargo

7


 

testing during the summer of 2020, and the Company subsequently announced on September 9, 2020 that the TRACER 1000 passed the non-detection testing portion of the TSA’s ACSQT. Due to continued delays caused by COVID-19, TSA cargo detection testing is ongoing but proceeding much more slowly than anticipated. As a result, efforts are primarily focused on the Company’s other opportunities. TSA cargo detection testing is the final step to be listed on the Air Cargo Screening Technology List (“ACSTL”) as an “approved” device. If approved, the TRACER 1000 will be approved for cargo sales in the United States.

 

On August 25, 2021, 1st Detect announced that it secured an important landmark purchase order for the TRACER 1000, representing the first units to be deployed at an airport security checkpoint. These systems were delivered to the customer during the second quarter of fiscal year 2022.

 

AgLAB Inc.

 

AgLAB, an exclusive licensee of ATI for the agriculture market, has developed the AgLAB-1000™ series of mass spectrometers for use in the hemp and cannabis market with initial focus on optimizing yields in the extraction and distillation process. The AgLAB product line is a derivative of the Company’s core AMS Technology. The AMS Technology provides a significant competitive advantage due to its small size, rugged design, quick analysis, and ease of use.

 

BreathTech Corporation

 

BreathTech, an exclusive licensee of ATI for use in breath analysis, is developing the BreathTest-1000, a breath analysis tool 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. While vaccines have been deployed to prevent the transmission of COVID-19, only a fraction of the world has been vaccinated and new variants continue to pose a significant and evolving threat. New tools to aid in the battle against COVID-19 remain of the utmost importance to help defeat the disease, and BreathTech, in conjunction with Cleveland Clinic, are developing a quick and easy to use device to help aid in preventing the further spread of the disease.

 

Development of the BreathTest-1000 follows the Company’s results in pre-clinical trials for the BreathDetect-1000™, a rapid self-serve breathalyzer that was designed to detect bacterial infections in the respiratory tract, including pneumonia. The pre-clinical trials were conducted in collaboration with UT Health San Antonio in 2017.

 

(2) Investments

 

The following tables summarize gains and losses related to the Company’s investments as of December 31, 2021 and June 30, 2021:

 

 

December 31, 2021

 

Available-for-Sale

 

Adjusted

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

(In thousands)

 

Cost

 

 

Gain

 

 

Loss

 

 

Value

 

Mutual Funds - Corporate & Government Debt

 

$

19,998

 

 

$

 

 

$

(179

)

 

$

19,819

 

ETFs - Corporate & Government Debt

 

 

7,376

 

 

 

 

 

 

(89

)

 

 

7,287

 

Total

 

$

27,374

 

 

$

 

 

$

(268

)

 

$

27,106

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2021

 

Available-for-Sale

 

Adjusted

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

(In thousands)

 

Cost

 

 

Gain

 

 

Loss

 

 

Value

 

Mutual Funds - Corporate & Government Debt

 

$

19,998

 

 

$

 

 

$

(13

)

 

$

19,985

 

ETFs - Corporate & Government Debt

 

 

7,376

 

 

 

 

 

 

(10

)

 

 

7,366

 

Total

 

$

27,374

 

 

$

 

 

$

(23

)

 

$

27,351

 

 

(3) Leases

 

On April 27, 2021, Astrotech entered into a new lease for a research and development facility of approximately 5,960 square feet in Austin, Texas that includes a laboratory, a small production shop, and offices for staff, although many of the Company’s employees continue to work remotely. The lease commenced on June 1, 2021 and has a lease term of 36 months.

 

On August 3, 2020, the Company terminated its office lease of 5,219 square feet in Austin, Texas that housed executive management, finance and accounting, sales, and marketing and communications. The lease began in November 2016 and was originally set to expire in December 2023. Upon lease termination, the Company recognized a decrease in the related operating right-of-use (“ROU”) asset and operating lease liability of approximately $539 thousand and $506 thousand, respectively.

 

Operating lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate in determining the present value of lease payments. Significant

8


 

judgement is required when determining the Company’s incremental borrowing rate. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

 

The balance sheet presentation of the Company’s operating and finance leases is as follows:

 

 

(In thousands)

 

Classification on the Condensed Consolidated Balance Sheet

 

December 31, 2021

 

Assets:

 

 

 

 

 

 

Operating lease assets

 

Operating leases, right-of-use assets, net

 

$

206

 

Financing lease assets

 

Property and equipment, net

 

 

516

 

Total lease assets

 

 

 

$

722

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Current:

 

 

 

 

 

 

Operating lease obligations

 

Lease liabilities, current

 

$

92

 

Financing lease obligations

 

Lease liabilities, current

 

 

135

 

Non-current:

 

 

 

 

 

 

Operating lease obligations

 

Lease liabilities, non-current

 

 

138

 

Financing lease obligations

 

Lease liabilities, non-current

 

 

283

 

Total lease liabilities

 

 

 

$

648

 

 

Future minimum lease payments under non-cancellable leases are as follows:

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ended June 30,

 

Operating Leases

 

 

Financing Leases

 

 

Total

 

2022

 

$

52

 

 

$