Astrotech Reports Third Quarter of Fiscal Year 2021 Financial Results

AUSTIN, Texas--(BUSINESS WIRE)-- Astrotech Corporation (NASDAQ: ASTC) reported its financial results for the third quarter of fiscal year 2021, which ended March 31, 2021.

During and subsequent to quarter end, we continued to strengthen our balance sheet for future growth by raising $50.1 million in total proceeds. As we expect to ramp up sales of our TRACER 1000™ explosives trace detector (ETD), launch the AgLAB-1000-D2™, and develop, in partnership with the Cleveland Clinic Foundation (Cleveland Clinic), the BreathTest-1000™, the financings will provide capital for continued operating expenses, working capital, and capital expenditures. In addition, the capital raises have given us flexibility to think more strategically about how to grow most efficiently, whether it be through strategic partnerships, mergers, or acquisitions.

“We believe that we are now sufficiently capitalized to pursue our current business plan,” said Thomas B. Pickens III, Chairman and Chief Executive Officer of Astrotech Corporation. “With the resources to scale quickly and meet significant potential demand as we commercialize our products, we believe we are well positioned to explore opportunities for growth that were not available to us prior to raising this additional capital.”

In March, Astrotech announced an agreement between its Astrotech Technologies, Inc. subsidiary and Sanmina Corporation to manufacture its mass spectrometry products. As part of the relationship, Sanmina will manufacture 1st Detect’s TRACER 1000. They have also agreed to manufacture AgLAB’s AgLAB-1000 and BreathTech’s BreathTest-1000 once those products are officially released. We anticipate that the relationship will allow us to scale manufacturing quickly with an asset-light operation while also offering us the opportunity to reduce our real estate footprint and related overhead costs of our manufacturing facility in Houston. We are currently consolidating all operations into a new, small research and development facility in Austin.

In April, we also announced that our BreathTech subsidiary signed an Investigator-Initiated Study Agreement with Cleveland Clinic. Under this agreement, BreathTech’s BreathTest-1000™ will be used to compare exhaled breath from individuals who have tested positive on a COVID-19 polymerase chain reaction (PCR) test against subjects who have had a negative COVID-19 PCR test. The goal of the pilot study will be to analyze different VOCs from the breath to evaluate the correlation with different disease states.

“We are excited to have engaged in partnerships with two leaders in their respective industries. Sanmina, as a Fortune 500 company, has demonstrated the ability to help companies scale manufacturing, reduce cost, and optimize their supply chain, giving us comfort that they will be able to keep pace with our planned and potential growth while helping us expand our profitability. With Sanmina’s level of sophistication and technical expertise, we believe that they are a great fit for Astrotech,” continued Mr. Pickens. “We are also thrilled to kick-off the study with Cleveland Clinic, one of world’s leading hospitals and one of the most experienced breath analysis institutions in the world. Due to the numerous mutations of the COVID-19 virus, we are hopeful that the BreathTest-1000 will prove to be useful as a screening tool for COVID-19 in hospitals, nursing homes, the workplace, schools, airports, sporting and performing arts events, conferences, commercial venues, and other large gatherings,” concluded Mr. Pickens.

Third Quarter Fiscal Year 2021 Financial Highlights

We continued efforts to add financial flexibility, optimize our resources, and position Astrotech for success as our products mature.

  • Since the beginning of our third fiscal quarter, we raised $50.1 million in gross proceeds through a registered direct offering, an underwritten, firm-commitment public offering, and an at-the-market (“ATM”) offering through H.C. Wainwright.
  • Year to date through March 31, 2021, our operating expenses, excluding certain one-time items, decreased 22.3%, compared to the same period last year.
  • Anticipated monthly cash outlay, excluding working capital, is approximately $500 thousand.

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, the 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 its recent financings, 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 our 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

(In thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended

March 31,

 

 

Nine Months Ended

March 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenue

 

$

54

 

 

$

118

 

 

$

324

 

 

$

324

 

Cost of revenue

 

 

46

 

 

 

111

 

 

 

287

 

 

 

307

 

Gross profit

 

 

8

 

 

 

7

 

 

 

37

 

 

 

17

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

1,679

 

 

 

1,193

 

 

 

3,408

 

 

 

3,505

 

Research and development

 

 

669

 

 

 

814

 

 

 

2,036

 

 

 

2,608

 

Disposal of corporate lease

 

 

 

 

 

 

 

 

544

 

 

 

 

Total operating expenses

 

 

2,348

 

 

 

2,007

 

 

 

5,988

 

 

 

6,113

 

Loss from operations

 

 

(2,340

)

 

 

(2,000

)

 

 

(5,951

)

 

 

(6,096

)

Interest and other expense, net

 

 

(63

)

 

 

(68

)

 

 

(185

)

 

 

(123

)

Loss from operations before income taxes

 

 

(2,403

)

 

 

(2,068

)

 

 

(6,136

)

 

 

(6,219

)

Income tax provision

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(2,403

)

 

$

(2,068

)

 

$

(6,136

)

 

$

(6,219

)

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

18,171

 

 

 

6,107

 

 

 

14,649

 

 

 

5,934

 

Basic and diluted net loss per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(0.13

)

 

$

(0.34

)

 

$

(0.42

)

 

$

(1.05

)

 
 

ASTROTECH CORPORATION

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)

 

 

 

March 31,

2021

 

 

June 30,

2020

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

31,474

 

 

$

3,349

 

Restricted cash

 

 

542

 

 

 

 

Accounts receivable

 

 

112

 

 

 

101

 

Inventory:

 

 

 

 

 

 

 

 

Raw materials

 

 

847

 

 

 

416

 

Work-in-process

 

 

100

 

 

 

38

 

Finished goods

 

 

201

 

 

 

222

 

Income tax receivable

 

 

 

 

 

429

 

Prepaid expenses and other current assets

 

 

396

 

 

 

117

 

Total current assets

 

 

33,672

 

 

 

4,672

 

Property and equipment, net

 

 

82

 

 

 

99

 

Assets held for disposal

 

 

 

 

 

237

 

Operating leases, right-of-use assets, net

 

 

26

 

 

 

851

 

Other assets

 

 

 

 

 

71

 

Total assets

 

$

33,780

 

 

$

5,930

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

 

370

 

 

 

239

 

Payroll related accruals

 

 

1,179

 

 

 

433

 

Accrued expenses and other liabilities

 

 

787

 

 

 

627

 

Income tax payable

 

 

2

 

 

 

2

 

Term note payable - related party

 

 

2,500

 

 

 

2,500

 

Term note payable

 

 

512

 

 

 

210

 

Lease liabilities

 

 

32

 

 

 

339

 

Total current liabilities

 

 

5,382

 

 

 

4,350

 

Term note payable, net of current portion

 

 

30

 

 

 

332

 

Lease liabilities, net of current portion

 

 

40

 

 

 

623

 

Total liabilities

 

 

5,452

 

 

 

5,305

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

 

Convertible preferred stock, $0.001 par value, 2,500,000 shares authorized; 280,898 shares of Series D issued and outstanding at March 31, 2021 and June 30, 2020

 

 

 

 

 

 

Common stock, $0.001 par value, 50,000,000 shares authorized; 25,013,254 and 8,250,286 shares issued at March 31, 2021 and June 30, 2020, respectively; 24,613,338 and 7,850,362 shares outstanding at March 31, 2021 and June 30, 2020, respectively

 

 

190,616

 

 

 

190,599

 

Treasury stock, 399,916 shares at cost at March 31, 2021 and June 30, 2020

 

 

(4,129

)

 

 

(4,129

)

Additional paid-in capital

 

 

47,756

 

 

 

13,934

 

Accumulated deficit

 

 

(205,915

)

 

 

(199,779

)

Total stockholders’ equity

 

 

28,328

 

 

 

625

 

Total liabilities and stockholders’ equity

 

$

33,780

 

 

$

5,930

 

 

Contacts

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

 
 

Source: Astrotech Corporation

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