ASTROTECH Corp

Previous wording

Our mission encompasses the advancement of both mass spectrometry and gas chromatography, two powerful analytical techniques that together enable precise detection and identification of chemical compounds across a wide range of high-demand environments. We aim to expand access to mass spectrometry and its use through the deployment of devices designed specifically for the appropriate levels of precision required in high-volume, real-time testing environments such as airports, border checkpoints, cargo hubs, infrastructure security, correctional facilities, military bases, law enforcement centers, and industrial locations. We are introducing our new line of products that are ultra-portable, on-site, rugged environmental testing instruments, featuring our proprietary ATi Gas Chromatography Column ("GC") and ATi Mass Spectrometer Technology ("MS") to achieve our mission through simplifying the user interface, ruggedizing the critical components to endure MS/GC field work, and enabling multiple configurations for sample intake options.The Astrotech Mass Spectrometer Technology™ and ATi GC platforms achieve our mission through simplifying the user interface, automating the complicated calibration process, ruggedizing the critical components to endure MS/GC field work, and enabling multiple configurations for sample intake options.

Current wording

Our mission encompasses the advancement of both mass spectrometry and gas chromatography, two powerful analytical techniques that together enable precise detection and identification of chemical compounds across a wide range of high-demand environments. We aim to expand access to mass spectrometry and its use through the deployment of devices designed specifically for the appropriate levels of precision required in high-volume, real-time testing environments such as airports, border checkpoints, cargo hubs, infrastructure security, correctional facilities, military bases, law enforcement centers, and industrial locations. We are introducing our new line of products that are ultra-portable, on-site, rugged environmental testing instruments, featuring our proprietary ATi Gas Chromatography Column ("GC") and ATi Mass Spectrometer Technology ("MS") to achieve our mission through simplifying the user interface, ruggedizing the critical components to endure MS/GC field work, and enabling multiple configurations for sample intake options.The Astrotech Mass Spectrometer Technology™ ("AMS Technology") and ATi GC platforms achieve our mission through simplifying the user interface, automating the complicated calibration process, ruggedizing the critical components to endure MS/GC field work, and enabling multiple configurations for sample intake options.

Previous wording

We are commercializing the Astrotech Mass Spectrometer Technology™ platform (“AMS Technology”) through application specific, wholly owned subsidiaries.

Current wording

We are commercializing the AMS Technology platform through application specific, wholly owned subsidiaries.

Previous wording

We obtained ECAC certification in 2019 which allows us to sell the TRACER 1000 to airport and cargo security customers in the European Union and certain other countries. We currently sell the TRACER 1000 to customers who accept ECAC certification. As of December 31, 2025, we have the TRACER 1000 in approximately 35 locations in 16 countries throughout the United States of America, Europe and Asia.

Current wording

We obtained ECAC certification in 2019 which allows us to sell the TRACER 1000 to airport and cargo security customers in the European Union and certain other countries. We currently sell the TRACER 1000 to customers who accept ECAC certification. As of March 31, 2026, we have the TRACER 1000 in approximately 37 locations in 16 countries throughout the United States of America, Europe and Asia.

Previous wording

Cost of Revenue– Gross profit is comprised of revenue less cost of revenue. Our cost of revenue increased by $34 thousand during the three months ended December 31, 2025, compared to the same period in 2024. The increase was driven by higher warranty-related costs and expenses incurred to support service and maintenance activities during the three months ended December 31, 2025. As a result, gross margin decreased by 54% during the three months ended December 31, 2025, compared to the same period in 2024.

Current wording

Cost of Revenue– Gross profit is comprised of revenue less cost of revenue. Cost of revenue includes materials, overhead, warranty expenses, shipping, and labor. Our cost of revenue decreased by $21 thousand during the three months ended March 31, 2026, compared to the same period in 2025, primarily due to lower device sales, partially offset by higher consumables and grant related costs. The decrease was primarily attributable to consumables sold at costs exceeding revenue during the current quarter. These consumables were purchased at elevated costs during the COVID period and subsequently sold below cost to recover value rather than write off the inventory, which resulted in revenue that was lower than the related cost of revenue. As a result, gross margin decreased by 25% during the three months ended March 31, 2026, compared to the same period in 2025.

Previous wording

Operating Expenses – Operating expenses decreased by $567 thousand, or 12.7%, during the three months ended December 31, 2025, compared to the same period in 2024. Significant changes to operating expenses include the following:

Current wording

Operating Expenses – Operating expenses decreased by $584 thousand, or 14.2%, during the three months ended March 31, 2026, compared to the same period in 2025. Significant changes to operating expenses include the following:

Previous wording

Other Income and Expense, net– Other income and expense, net decreased by $338 thousand during the three months ended December 31, 2025, compared to the same period in 2024, primarily due to lower dividend income and a realized loss on securities, partially offset by higher interest income.

Current wording

Other Income and Expense, net– Other income and expense, net decreased by $549 thousand during the three months ended March 31, 2026, compared to the same period in 2025, primarily due to a loss on the disposal of assets ($210 thousand), a realized loss on securities during the current quarter ($184 thousand) compared to a realized gain in the prior- year period, and lower dividend income ($140 thousand).

Previous wording

Selected consolidated financial data for the six months ended December 31, 2025, and 2024 is as follows:

Current wording

Selected consolidated financial data for the nine months ended March 31, 2026, and 2025 is as follows:

Previous wording

Revenue – Total revenue increased by $150 thousand for the six months ended December 31, 2025, compared to the same period in 2024.The year- over year-increase was primarily attributable to a $220 thousand increase in grant revenue and a $50 thousand increase in consumables. These increases were partially offset by lower product revenue and warranty revenue of $120 thousand and $20 respectively.

Current wording

Revenue – Total revenue decreased by approximately $42 thousand, or 5.0%, during the nine months ended March 31, 2026, compared to the nine months ended March 31, 2025. Revenue in both periods was generated from product sales, consumables, warranty services, training, and grant revenue. The decrease was primarily attributable to a $323 thousand decline in product revenue and a $60 thousand decline in warranty revenue. These decreases were partially offset by higher grant revenue of $111 thousand, increased consumables revenue of $209 thousand, and $20 thousand of training revenue recognized in the current period.

Previous wording

Cost of Revenue– Gross profit is comprised of revenue less cost of revenue. Our costs of revenue include materials, overhead, warranty expenses, shipping, and labor. Cost of revenue increased by $118 thousand during the six months ended December 31, 2025, compared to the same period in 2024. This increase reflects costs associated with fulfilling grant related milestones and warranty expenses. Gross margin declined primarily because cost of revenue increased at a rate that was nearly proportional to the increase in revenue, driven by higher labor and increased warranty-related expenses.

Current wording

Cost of Revenue– Gross profit is comprised of revenue less cost of revenue. Our costs of revenue include materials, overhead, warranty expenses, shipping, and labor. For the nine months ended March 31, 2026, cost of revenue increased by approximately $97 thousand compared to the prior year period, primarily due to higher labor and warranty costs, including the sale of obsolete consumable parts at standard cost under contractual agreements rather than recording an inventory write‑off. These increases were partially offset by lower material costs, resulting in a decrease in gross margin compared to the prior year period.

Previous wording

Operating Expenses – Operating expenses decreased $480 thousand, or 5.9% during the six months ended December 31, 2025 compared to the same period in 2024.

Current wording

Operating Expenses – Operating expenses decreased $1,064 thousand, or 8.7% during the nine months ended March 31, 2026, compared to the same period in 2025.

Previous wording

Other Income and Expense, net– Other income and expense, net decreased by $617 thousand for the six months ended December 31, 2025, compared to the same prior year period, due to lower dividend income and higher realized loss on securities

Current wording

Other Income and Expense, net– Other income and expense, net decreased by $1.17 million for the nine months ended March 31, 2026, compared to the same prior year period, primarily due to lower dividend income and higher realized losses on the sale of securities.

Previous wording

Cash provided by investing activities increased by approximately $8 million driven primarily by $8.4 million of proceeds from short investments, partially offset by $0.9 million of capital expenditures, including leasehold improvements.

Current wording

Cash provided by investing activities increased by approximately $7.7 million for the nine months ended March 31, 2026, compared to the nine months ended March 31, 2025, primarily due to $11.7 million of proceeds from short-term investments, partially offset by $0.9 million of capital expenditures, including leasehold improvements.

Previous wording

Cash used in financing activities decreased by $25 thousand for the six months ended December 31, 2025 compared to the same period in 2024, primarily due to lower payments on finance lease obligations.

Current wording

Cash used in financing activities was $80 thousand for the nine months ended March 31, 2026, compared to $157 thousand for the nine months ended March 31, 2025, primarily due to lower finance lease payments.

Previous wording

The Company’s unaudited consolidated financial statements have been prepared in accordance with US GAAP, which assumes that the Company’s management will evaluate whether it will be able to meet its obligations and continue its operations in the normal course of business. At December 31, 2025, the Company had cash of approximately $3,095,000, short-term investments of approximately $7,037,000, and has positive working capital of $12,450,000.

Current wording

The Company’s unaudited consolidated financial statements have been prepared in accordance with US GAAP, which assumes that the Company’s management will evaluate whether it will be able to meet its obligations and continue its operations in the normal course of business. As of March 31, 2026, the Company had cash of approximately $2.7 million, short-term investments of approximately $3.9 million, and had positive working capital of $9.5 million. We have incurred recurring losses and negative cash flows from operations since inception and had an accumulated deficit of approximately $262 million at March 31, 2026, and reported a net loss of $11.2 million. We regularly monitor potential financings and capital sources, including equity and debt markets, in an effort to meet our planned capital expenditures and liquidity requirements. Our future success may depend on our ability to access outside sources of capital including through public or private equity offerings, additional debt financing, or via strategic collaborations, partnerships, or other arrangements with third parties. The availability and terms of future financing will depend on a variety of factors, including general economic and market conditions, our operating performance, and investor interest. Additional funding may not be available on acceptable terms, if at all. If we are unable to obtain adequate financing when needed, we may be forced to delay, reduce the scope of, or eliminate certain operations, commercialization efforts, or other aspects of our business. In addition, raising additional funds through equity offerings may result in dilution to our stockholders, while debt or other financing could involve covenants or obligations that restrict our business operations. Until we can generate sufficient revenue from product sales, if at all, we expect to finance our operations primarily through existing cash reserves and additional capital-raising activities.

Previous wording

The Company’s effective tax rate is 0% for income tax for the three and six months ended December 31, 2025 and the Company expects that its effective tax rate for the full fiscal year 2026 will be 0%. Based on the weight of available evidence, including net cumulative losses and expected future losses, the Company has determined that it is more likely than not that it U.S. federal and state deferred tax assets will not be realized and therefore a full valuation allowance has been provided on the U.S. federal and state net deferred tax assets.

Current wording

The Company’s effective tax rate is 0% for income tax for the three and nine months ended March 31, 2026, and the Company expects that its effective tax rate for the full fiscal year 2026 year will be 0%. Based on the weight of available evidence, including net cumulative losses and expected future losses, the Company has determined that it is more likely than not that its U.S. federal and state deferred tax assets will not be realized and therefore a full valuation allowance has been provided on the U.S. federal and state net deferred tax assets.

Previous wording

There was no income tax expense for the three and six months ended December 31, 2025. There was $1 thousand provision for income taxes during both the three and six months ended December 31, 2024.

Current wording

There is no income tax expense for the three and nine months ended March 31, 2026. There was $1 thousand provision for income taxes during both the three and nine months ended March 31, 2025.