ASTROTECH REPORTS FISCAL YEAR 2024 FINANCIAL RESULTS Form 8 K

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Revenue increased to $1.7 million as Astrotech's subsidiary, 1st Detect, gained traction in the international passenger market with its explosives trace detectors ("ETD"). Gross margin increased to 45% for the year compared to 41% in the prior period, due to a higher proportion of recurring revenue.

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The U.S. Transportation Security Administration ("TSA") approved the TRACER 1000 for the Air Cargo Security Technology List, which permits air cargo companies in the United States to use our equipment in their operations. This action advances the TRACER 1000 to Stage II testing and allows us to sell the TRACER 1000 to air cargo companies in the United States. In Stage II testing, the Company will begin field trials with the TSA. If field trials are successful, the TRACER 1000 will be added to the "qualified" list.

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The Company has entered into Developmental Test and Evaluation in which the Transportation Security Laboratory ("TSL") will test the TRACER 1000 and work with 1st Detect to ensure its readiness to enter certification testing for TSA checkpoint testing. The certification test is then completed by the Independent Test & Evaluation department of TSL. As of the fiscal year 2023 budget the TSA had over 6,000 ETD units at checkpoint and baggage screening points which we believe would benefit from utilizing our AMS Technology.

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1^st Detect began accepting orders for the TRACER 1000 Narcotics Trace Detector ("NTD") from worldwide customers. The TRACER 1000 NTD is a high-performance laboratory instrument capable of rapid detection of trace levels of narcotic compounds in seconds. The TRACER 1000 NTD and the TRACER 1000 ETD together provide a comprehensive protection platform that can be applied across various markets including airports, border security, checkpoint, cargo, and infrastructure security, correctional facilities, military, and law enforcement.

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The TRACER 1000 NTD and the TRACER 1000 ETD are now registered with the U.S. General Services Administration ("GSA") IT Schedule 70 under Contract No. GS-35F-250GA with SRI Group LLC, Special Item Number 334290.   The IT Schedule 70 is a long-term contract issued by the GSA to commercial technology vendors that allows sales to the U.S. federal government, one of the largest buyers of goods and services in the world.  1^st Detect continues to showcase the TRACER 1000 NTD and TRACER 1000 ETD at trade events in the U.S.

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We announced the formation of a new wholly-owned subsidiary, Pro-Control, and Astrotech's entry into an exclusive license with Pro-Control to utilize our Astrotech Mass Spectrometer Technology™ (the "AMS Technology") for industrial process control applications involving chemical distillation outside of the agriculture industry. Pro-Control uses advanced mass spectrometer instrumentation to monitor and control the production and operations of manufacturing processes using real-time, in-process samples.

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AgLAB Inc. ("AgLAB") and SC Laboratories ("SC Labs") entered into a master lease agreement providing for the joint marketing of the AgLAB 1000-D2™ mass spectrometer and the AgLAB Maximum Value Process™ ("MVP™") testing method to SC Labs' clients. SC Labs is an industry leader that provides the regulatory requirement of a Certificate of Analysis for all movement and sale of all processed cannabis CBD or THC oils.

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Astrotech presented the AgLAB MVP™ at MJBizcon. The MVP™ is an innovative process control system to increase the potency of ending-weight yields and revenue by 20% or more using AgLAB's proprietary integration of the AMS Technology.

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Astrotech's consolidated balance sheet remains strong with $31.9 million in cash and cash equivalents and liquid investments which is anticipated to support the Company's research and development, organic growth, and potential acquisition targets.

June 30,

2024

2023

Revenue

Cost of revenue

Gross profit

Operating expenses:

Selling, general and administrative

Research and development

Total operating expenses

Loss from operations

Other income and expense, net

Loss from operations before income taxes

Income tax expense

Net loss

Weighted average common shares outstanding:

Basic and diluted

Basic and diluted net loss per common share:

Net loss per common share

Other comprehensive loss, net of tax:

Net loss

Available-for-sale securities:

Net unrealized gain (loss)

Total comprehensive loss

June 30,

2024

2023

Assets

Current assets

Cash and cash equivalents

Short-term investments

Accounts receivable

Inventory, net:

Raw materials

Work-in-process

Finished goods

Income tax receivable

Prepaid expenses and other current assets

Total current assets

Property and equipment, net

Operating lease right-of-use assets, net

Other assets, net

Total assets

Liabilities and stockholders' equity

Current liabilities

Accounts payable

Payroll related accruals

Accrued expenses and other liabilities

Lease liabilities, current

Total current liabilities

Accrued expenses and other liabilities, net of current portion

Lease liabilities, net of current portion

Total liabilities

Commitments and contingencies (Note 14)

Stockholders' equity

Convertible preferred stock, $0.001 par value, 2,500,000 shares authorized; 280,898 shares of Series D issued and outstanding at June 30, 2024 and 2023, respectively

Common stock, $0.001 par value, 250,000,000 shares authorized at June 30, 2024 and 2023 respectively; 1,712,045 and 1,692,045 shares issued at June 30, 2024 and 2023 respectively; 1,701,729 and 1,681,729 outstanding at June 30, 2024 and 2023, respectively

Treasury shares, 10,316 shares at June 30, 2024 and 2023, respectively

Additional paid-in capital

Accumulated deficit

Accumulated other comprehensive loss

Total stockholders' equity

Total liabilities and stockholders' equity