Astrotech Corporation (NASDAQ: ASTC) reported its financial
results for the fourth quarter and fiscal year ended June 30,
2019.
Astrotech’s 1st Detect subsidiary continues to generate interest
following its official launch of the TRACER 1000™ explosives trace
detector (ETD) on June 26, 2019, due to its advantages over current
generation ETDs, including:
- A virtually unlimited detection library – today’s ETDs can only
detect a very limited number of compounds;
- A near-zero false alarm rate – today’s ETDs are fraught with
false positives caused by common household compounds;
- A near 100% uptime – today’s ETDs have lengthy calibrations and
bake-outs, often unprompted, at the most inopportune times.
“Fiscal 2019 was an excellent year in terms of product
development and endorsement,” stated Thomas B. Pickens III,
Chairman and CEO of Astrotech. “Development of the TRACER 1000 is
now essentially complete as we shifted our focus toward
certification testing in the airport market and achieved European
Civil Aviation Conference (ECAC) certification for both checkpoint
and cargo earlier in the year. It has also given us the opportunity
to explore other market opportunities with our versatile core
technology and we have found a significant opportunity in the
agriculture market. We recently launched the AG-LAB-1000™, which is
uniquely capable of solving a significant pain point, specifically
in the hemp and cannabis market,” concluded Pickens.
On September 20, 2019, Astrotech announced that it launched
Agriculture Technology Corporation (AG-TECH) and the AG-LAB-1000
series of mass spectrometers to address the needs of the
agriculture market. The Company believes that pesticide detection
continues to be a major issue for farmers, especially in the hemp
and cannabis market where certain pesticides turn into cyanide and
other harmful toxic and carcinogenic compounds when smoked.
Jurisdictions where hemp and cannabis are legal are therefore
increasingly requiring sophisticated trace detection analysis to
ensure products do not contain illegal levels of certain
pesticides. This analysis can take 5-8 days before results are
available. While awaiting results, additional batches processed
using the same equipment become contaminated, leading to
potentially millions of dollars of wasted product. We believe that
no other product currently exists on the market that can detect
these pesticides in real-time like the AG-LAB-1000.
Financial Highlights
Management continues efforts to optimize our resources while
reducing cost and adding financial flexibility.
- Net loss decreased by 43.2% for the fiscal year ended June 30,
2019, compared to the fiscal year ended June 30, 2018, due to an
ongoing emphasis on optimizing our resources.
- Monthly cash burn for fiscal year 2019 was reduced to just over
$700 thousand, a 21.4% reduction from our run rate in fiscal year
2018. Further, this represents a 36.4% decrease from the end of
fiscal year 2016, when such cost cutting measures began.
- In April 2019, Astrotech completed a $2 million private
investment from its Chairman and CEO and another long-term
investor.
- In September 2019, Astrotech completed an additional investment
from its Chairman and CEO of a $1.5 million term note.
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 chemical analyzers for use in the security
and detection market. AG-TECH develops, manufactures, and
sells trace detectors for use in the agriculture market. Astral
Images sells film-to-digital image enhancement, defect removal,
color correction, and post processing software, providing
economically feasible conversion of film to the new 4K ultra-high
definition (UHD), high-dynamic range (HDR) format. 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 for the
fiscal year ended June 30, 2018. 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,
2019
2018
Revenue
$
127
$
86
Cost of revenue
90
36
Gross profit
37
50
Operating expenses:
Selling, general and administrative
4,876
5,629
Research and development
3,578
6,065
Loss on impairment of long-lived
assets
—
1,693
Total operating expenses
8,454
13,387
Loss from operations
(8,417
)
(13,337
)
Interest and other income, net
25
86
Loss from operations before income
taxes
(8,392
)
(13,251
)
Income tax benefit
858
—
Net loss
$
(7,534
)
$
(13,251
)
Weighted average common shares
outstanding:
Basic and diluted
4,940
4,061
Basic and diluted net loss per common
share:
Net loss
$
(1.53
)
$
(3.26
)
Other comprehensive loss, net of tax:
Net loss
$
(7,534
)
$
(13,251
)
Available-for-sale securities
Net unrealized losses, net of zero tax
expense
—
(94
)
Reclassification adjustment for realized
losses included in net loss, net
of zero tax expense
31
124
Total comprehensive loss
$
(7,503
)
$
(13,221
)
ASTROTECH CORPORATION
Consolidated Balance Sheets
(In thousands, except share
data)
June 30,
2019
2018
Assets
Current assets
Cash and cash equivalents
$
1,588
$
552
Short-term investments
—
3,551
Accounts receivable
3
12
Inventory:
Raw materials, net
150
7
Work-in-process
181
—
Income tax receivable
429
—
Prepaid expenses and other current
assets
371
154
Total current assets
2,722
4,276
Property and equipment, net
469
733
Long-term investments
—
50
Long-term tax receivable
429
—
Other assets
72
81
Total assets
$
3,692
$
5,140
Liabilities and stockholders’
equity
Current liabilities
Accounts payable
$
160
$
112
Payroll related accruals
319
412
Accrued expenses and other liabilities
357
434
Income tax payable
2
2
Total current liabilities
838
960
Other liabilities
146
188
Total liabilities
984
1,148
Commitments and contingencies
Stockholders’ equity
Convertible preferred stock, $0.001 par
value, 2,500,000 shares authorized; 280,898 and no shares of Series
C and 280,898 and no shares of Series D issued and outstanding at
June 30, 2019 and 2018, respectively
—
—
Common stock, $0.001 par value, 15,000,000
shares authorized; 6,184,698 and 4,496,873 shares issued at June
30, 2019 and 2018, respectively; 5,775,171 and 4,097,346 shares
outstanding at June 30, 2019 and 2018, respectively
190,571
190,570
Treasury stock, 399,916 and 399,527 shares
at cost at June 30, 2019 and 2018, respectively
(4,129
)
(4,128
)
Additional paid-in capital
7,964
1,745
Accumulated deficit
(191,698
)
(184,164
)
Accumulated other comprehensive loss
—
(31
)
Total stockholders’ equity
2,708
3,992
Total liabilities and stockholders’
equity
$
3,692
$
5,140
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190927005531/en/
Eric Stober, Chief Financial Officer, Astrotech Corporation,
(512) 485-9530
Astrotech (NASDAQ:ASTC)
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