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/
Eric Stober, Chief Financial Officer, Astrotech Corporation,
(512) 485-9530
Astrotech (NASDAQ:ASTC)
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