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Astrotech Reports Second Quarter of Fiscal Year 2020 Financial Results

·6 mins read

Astrotech Corporation (NASDAQ: ASTC) reported its financial results for the second quarter of fiscal year 2020, which ended December 31, 2019.

Fiscal 2020 has been pivotal for the Company. This quarter, 1st Detect sold its first units of the TRACER 1000™ explosives trace detector (ETD) to a global shipping and logistics company. In addition, we have completed numerous domestic and international product demonstrations and field trials where the TRACER 1000 outperformed incumbent ion mobility spectrometry (IMS) ETDs. Among these demonstrations was a field trial with Finland’s Helsinki International Airport and Finavia, one of the world’s most technologically advanced airport operators. The Finavia case study is available on our website at https://www.1stdetect.com/finavia-cs/ and demonstrates that the TRACER 1000 outperforms the IMS-ETDs on a head-to-head comparison. In addition, 1st Detect was selected by the TSA’s Innovation Task Force to conduct live screenings at Miami International Airport, which was completed in November. Results again showed that the TRACER 1000 outperformed IMS-ETDs.

The Company also responded to a number of inquiries from the growing hemp and cannabis market by launching AgLAB Inc. (formerly AG-TECH). With minimal additional development, the Company’s versatile platform mass spectrometry technology is being designed to detect the presence of pesticides in hemp and cannabis. Ideally suited for this market, the AgLAB-1000 can detect pesticides on plant material and during the oil extraction and distillation process. We believe there are currently no other ruggedized instruments in the field that can detect pesticides at parts per billion (ppb) in real-time.

In addition, Thomas B. Pickens, the Company’s Chairman and Chief Executive Officer, invested an additional $1 million subsequent to the end of the quarter.

"We have reached an exciting phase in our company," stated Pickens. "1st Detect completed its first commercial sales with more anticipated sales on the horizon, we continue to outperform our competition in field trials, and our versatile platform technology has a green field of opportunity in the emerging and high-growth hemp and cannabis industry. My continued financial support will help fund working capital and operating expenses as we develop both markets."

Second Quarter Fiscal Year 2020 Financial Highlights

Management continues efforts to optimize our resources while reducing cost and adding financial flexibility.

  • The Company recognized its first commercial sales of the TRACER 1000, leading to revenue of $205 thousand for the second quarter of fiscal 2020. Additional purchase orders have already been received.

  • Monthly cash burn for this fiscal year has been reduced to approximately $559 thousand, a 20.7% reduction from our cash burn rate through the first six months of fiscal year 2019.

  • Chairman and CEO invests $1.0 million in a term note subsequent to the end of the quarter, bringing his recent investments to $5.5 million.

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 develops, manufactures, and sells chemical analyzers for use in the agriculture market. Astrotech is headquartered in Austin, Texas. For information, please visit www.astrotechcorp.com.

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 Company’s use of proceeds from the private placement transaction, whether we can successfully develop our proprietary technologies 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)

(Unaudited)

Three Months Ended

December 31,

Six Months Ended

December 31,

2019

2018

2019

2018

Revenue

$

205

$

7

$

206

$

40

Cost of revenue

196

196

11

Gross profit

9

7

10

29

Operating expenses:

Selling, general and administrative

1,110

1,286

2,312

2,430

Research and development

939

897

1,794

2,000

Total operating expenses

2,049

2,183

4,106

4,430

Loss from operations

(2,040

)

(2,176

)

(4,096

)

(4,401

)

Interest and other income (expense), net

(43

)

16

(55

)

3

Loss from operations before income taxes

(2,083

)

(2,160

)

(4,151

)

(4,398

)

Income tax benefit

Net loss

$

(2,083

)

$

(2,160

)

$

(4,151

)

$

(4,398

)

Weighted average common shares outstanding:

Basic and diluted

5,947

4,678

5,769

4,374

Basic and diluted net loss per common share:

Net loss

$

(0.35

)

$

(0.46

)

$

(0.72

)

$

(1.01

)

Other comprehensive loss, net of tax:

Net loss

$

(2,083

)

$

(2,160

)

$

(4,151

)

$

(4,398

)

Available-for-sale securities:

Reclassification adjustment for realized loss

31

Total comprehensive loss

$

(2,083

)

$

(2,160

)

$

(4,151

)

$

(4,367

)

ASTROTECH CORPORATION

Consolidated Balance Sheets

(In thousands, except share and per share data)

December 31,

2019

June 30,

2019

(Unaudited)

(Audited)

Assets

Current assets

Cash and cash equivalents

$

393

$

1,588

Restricted cash

611

Accounts receivable

213

3

Inventory:

Raw materials

274

150

Work-in-process

181

Income tax receivable

214

429

Prepaid expenses and other current assets

313

371

Total current assets

2,018

2,722

Property and equipment, net

351

469

Operating leases, right-of-use assets, net

1,022

Long-term tax receivable

214

429

Other assets

72

72

Total assets

$

3,677

$

3,692

Liabilities and stockholders’ equity

Current liabilities

Accounts payable

153

160

Payroll related accruals

347

319

Accrued expenses and other liabilities

375

357

Income tax payable

2

2

Term note payable - related party

1,500

Operating lease liabilities - current

301

Total current liabilities

2,678

838

Operating lease liabilities, non-current

752

Other liabilities

146

Total liabilities

3,430

984

Commitments and contingencies

Stockholders’ equity

Convertible preferred stock, $0.001 par value, 2,500,000 shares authorized; 280,898 shares of Series C and 280,898 shares of Series D issued and outstanding at December 31, 2019 and June 30, 2019, respectively

Common stock, $0.001 par value, 15,000,000 shares authorized; 6,749,664 and 6,184,698 shares issued at December 31, 2019 and June 30, 2019, respectively; 6,348,137 and 5,775,171 shares outstanding at December 31, 2019 and June 30, 2019, respectively

190,598

190,571

Treasury stock, 399,916 shares at cost at December 31, 2019 and June 30, 2019, respectively

(4,129

)

(4,129

)

Additional paid-in capital

9,397

7,964

Accumulated deficit

(195,619

)

(191,698

)

Total stockholders’ equity

247

2,708

Total liabilities and stockholders’ equity

$

3,677

$

3,692

View source version on businesswire.com: https://www.businesswire.com/news/home/20200213005877/en/

Contacts

Eric Stober, Chief Financial Officer, Astrotech Corporation, (512) 485-9530