Astrotech Reports Second Quarter of Fiscal Year 2021 Financial Results

 Astrotech Reports Second Quarter of Fiscal Year 2021 Financial Results

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Astrotech Corporation (NASDAQ: ASTC) reported its financial results for the second quarter of fiscal year 2021, which ended December 31, 2020.

Since the beginning of the quarter, we successfully raised a total of $37.0 million in gross proceeds, strengthening our balance sheet for our future growth and expansion of our business. The financings will allow for continued operating expenses and working capital as we increase sales of our TRACER 1000™ explosives trace detector (ETD) to DHL (Deutsche Post AG) and other customers in the security market, launch the AgLAB-1000-D2™ into the hemp and cannabis industry, and develop, in partnership with The Cleveland Clinic Foundation, the BreathTest-1000™ to screen for volatile organic compound (VOC) metabolites found in a person’s breath that could indicate they may have an infection, including Coronavirus Disease 2019 (COVID-19) or the resulting disease, pneumonia.

On the heels of the capital raises, we announced that 1st Detect exceeded $1 million in purchase orders and an additional $1 million in future service & support commitments for its TRACER 1000. In December, we also announced that the TRACER 1000 ETD received a Gold Award for the Best CBRNE Detection System category at American Security Today’s ‘ASTORS’ Homeland Security Awards program, the preeminent U.S. Homeland Security Awards Program that highlights the most cutting-edge and forward-thinking security solutions coming onto the market today. We also continue to get closer to domestic sales at 1st Detect. Following the successful completion of non-detection testing last quarter with the U.S. Transportation Security Administration (TSA), we have entered detection testing, which is the final phase before the TRACER 1000 can be approved for cargo sales in the United States.

“We are excited to have our superior technology recognized by a leading voice in the security industry, to have passed the significant $1 million purchase order milestone, and for our progress with TSA. We believe that we offer the most advanced ETD on the market,” stated Thomas B. Pickens III, Chairman and Chief Executive Officer of Astrotech Corporation. “Our work to bring our Ag solution to the market continues to move forward as we receive positive feedback and much interest from prospective customers. Finally, our breath analysis efforts are progressing with The Cleveland Clinic Foundation and we hope to have an update on our work in the near-term,” concluded Pickens.

Second Quarter Fiscal Year 2021 Financial Highlights

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

  • Through this release, $37.0 million in gross proceeds was raised through an S-1 public offering, an at-the-market (“ATM”) public offering, and two registered direct offerings.
  • Commercial sales of the TRACER 1000 continued, leading to revenue of $130 thousand for the second quarter of fiscal 2021. For the fiscal year 2021, we have increased sales by $64 thousand, compared to the same period in fiscal year 2020. Additional purchase orders have already been received.
  • For the quarter ended December 31, 2020, SG&A expenses decreased $307 thousand, or 27.7%, and R&D expenses decreased $181 thousand, or 19.3%, compared to the quarter ended December 31, 2019. Year to date through December 31, 2020, SG&A expenses decreased $583 thousand, or 25.2%, and R&D expenses decreased $427 thousand, or 23.8%, compared to the same period last year.
  • Monthly cash outlay for this fiscal year has been reduced to approximately $416 thousand, a 25.6% reduction from our cash outlay through the first six months of fiscal year 2020.

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, 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 and Comprehensive Loss

(In thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended
December 31,

 

 

Six Months Ended
December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenue

 

$

130

 

 

$

205

 

 

$

270

 

 

$

206

 

Cost of revenue

 

 

128

 

 

 

196

 

 

 

241

 

 

 

196

 

Gross profit

 

 

2

 

 

 

9

 

 

 

29

 

 

 

10

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

803

 

 

 

1,110

 

 

 

1,729

 

 

 

2,312

 

Research and development

 

 

758

 

 

 

939

 

 

 

1,367

 

 

 

1,794

 

Disposal of corporate lease

 

 

 

 

 

 

 

 

544

 

 

 

 

Total operating expenses

 

 

1,561

 

 

 

2,049

 

 

 

3,640

 

 

 

4,106

 

Loss from operations

 

 

(1,559

)

 

 

(2,040

)

 

 

(3,611

)

 

 

(4,096

)

Interest and other expense, net

 

 

(63

)

 

 

(43

)

 

 

(122

)

 

 

(55

)

Loss from operations before income taxes

 

 

(1,622

)

 

 

(2,083

)

 

 

(3,733

)

 

 

(4,151

)

Income tax benefit

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(1,622

)

 

$

(2,083

)

 

$

(3,733

)

 

$

(4,151

)

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

15,864

 

 

 

5,947

 

 

 

11,769

 

 

 

5,769

 

Basic and diluted net loss per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(0.10

)

 

$

(0.35

)

 

$

(0.32

)

 

$

(0.72

)

Total comprehensive loss

 

$

(1,622

)

 

$

(2,083

)

 

$

(3,733

)

 

$

(4,151

)

 
 

ASTROTECH CORPORATION

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)

(Unaudited)

 

 

 

December 31,
2020

 

 

June 30,
2020

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

22,121

 

 

$

3,349

 

Restricted cash

 

 

542

 

 

 

 

Accounts receivable

 

 

95

 

 

 

101

 

Inventory:

 

 

 

 

 

 

 

 

Raw materials

 

 

173

 

 

 

416

 

Work-in-process

 

 

221

 

 

 

38

 

Finished goods

 

 

194

 

 

 

222

 

Income tax receivable

 

 

 

 

 

429

 

Prepaid expenses and other current assets

 

 

76

 

 

 

117

 

Total current assets

 

 

23,422

 

 

 

4,672

 

Property and equipment, net

 

 

85

 

 

 

99

 

Assets held for disposal

 

 

 

 

 

237

 

Operating leases, right-of-use assets, net

 

 

72

 

 

 

851

 

Other assets

 

 

 

 

 

71

 

Total assets

 

$

23,579

 

 

$

5,930

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

 

228

 

 

 

239

 

Payroll related accruals

 

 

434

 

 

 

433

 

Accrued expenses and other liabilities

 

 

939

 

 

 

627

 

Income tax payable

 

 

2

 

 

 

2

 

Term note payable – related party

 

 

2,500

 

 

 

2,500

 

Term note payable

 

 

421

 

 

 

210

 

Lease liabilities

 

 

82

 

 

 

339

 

Total current liabilities

 

 

4,606

 

 

 

4,350

 

Term note payable, net of current portion

 

 

121

 

 

 

332

 

Lease liabilities, net of current portion

 

 

42

 

 

 

623

 

Total liabilities

 

 

4,769

 

 

 

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 December 31, 2020 and June 30, 2020

 

 

 

 

 

 

Common stock, $0.001 par value, 50,000,000 shares authorized; 18,941,345 and 8,250,286 shares issued at December 31, 2020 and June 30, 2020, respectively; 18,541,429 and 7,850,362 shares outstanding at December 31, 2020 and June 30, 2020, respectively

 

 

190,610

 

 

 

190,599

 

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

 

 

(4,129

)

 

 

(4,129

)

Additional paid-in capital

 

 

35,841

 

 

 

13,934

 

Accumulated deficit

 

 

(203,512

)

 

 

(199,779

)

Total stockholders’ equity

 

 

18,810

 

 

 

625

 

Total liabilities and stockholders’ equity

 

$

23,579

 

 

$

5,930

 

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