astc20250930

astc20250930_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ___________

Commission file number 001-34426

Astrotech Corporation

(Exact Name of Registrant as Specified in its Charter)

Delaware		91-1273737
State or Other Jurisdiction of Incorporation or Organization		I.R.S. Employer Identification No.

1817 W. Braker Lane, Suite 400, Austin, Texas		78758
Address of Principal Executive Offices		Zip Code

(512) 485-9530

Registrant’s Telephone Number, Including Area Code

Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange on which registered

Common Stock, $0.001 par value per share

ASTC

NASDAQ Stock Market, LLC

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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

As of November 11, 2025, the number of shares of the registrant’s common stock issued and outstanding was: 1,758,953.

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ASTROTECH CORPORATION AND SUBSIDIARIES

QUARTERLY REPORT ON FORM 10-Q

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		Page
PART I:	FINANCIAL INFORMATION	3

ITEM 1.	CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)	3
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	19
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	25
ITEM 4.	CONTROLS AND PROCEDURES	25

PART II:	OTHER INFORMATION	26

ITEM 1.	LEGAL PROCEEDINGS	26
ITEM 1A.	RISK FACTORS	26
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	27
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	27
ITEM 4.	MINE SAFETY DISCLOSURES	27
ITEM 5.	OTHER INFORMATION	27
ITEM 6.	EXHIBITS	28

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PART I: FINANCIAL INFORMATION

ITEM 1. Condensed Consolidated Financial Statements

ASTROTECH CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)

	September 30,			June 30,
	2025			2025
	(Unaudited)			(Note)
Assets
Current assets
Cash and cash equivalents	$	2,646		$	3,100
Short-term investments		11,290			15,108
Accounts receivable		354			485
Contract Asset		—			—
Inventory, net:
Raw materials		2,342			2,194
Work-in-process		286			425
Finished goods		454			310
Prepaid expenses and other current assets		821			353
Total current assets		18,193			21,975
Property and equipment, net		2,606			2,395
Intangible asset, net		50			48
Operating lease right-of-use assets, net		2,044			2,225
Other assets, net		347			346
Total assets	$	23,240		$	26,989
Liabilities and stockholders’ equity
Current liabilities
Accounts payable	$	613		$	1,066
Payroll related accruals		534			529
Accrued expenses and other liabilities		328			451
Lease liabilities, current		384			405
Total current liabilities		1,859			2,451
Accrued expenses and other liabilities, net of current portion		134			164
Lease liabilities, net of current portion		2,160			2,274
Total liabilities		4,153			4,889
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 September 30, 2025, and June 30, 2025		—			—
Common stock, $0.001 par value, 250,000,000 shares authorized at September 30, 2025, and June 30, 2025, respectively; 1,769,269 shares issued at September 30, 2025, and June 30, 2025, respectively; 1,758,953 and 1,701,729 shares outstanding at September 30, 2025, and June 30, 2025, respectively		190,643			190,643
Treasury shares, 10,316 at September 30, 2025, and June 30, 2025, respectively		(119	)		(119	)
Additional paid-in capital		83,614			83,310
Accumulated deficit		(254,335	)		(250,870	)
Accumulated other comprehensive loss		(716	)		(864	)
Total stockholders’ equity		19,087			22,100
Total liabilities and stockholders’ equity	$	23,240		$	26,989

See accompanying notes to unaudited condensed consolidated financial statements.

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ASTROTECH CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Operations and Comprehensive Loss

(In thousands, except per share data)

(Unaudited)

	Three Months Ended
	September 30,
	2025			2024
Revenue	$	297		$	34
Cost of revenue		109			25
Gross profit		188			9
Operating expenses:
Selling, general and administrative		1,780			1,688
Research and development		1,944			1,949
Total operating expenses		3,724			3,637
Loss from operations		(3,536	)		(3,628	)
Other income and expense, net		71			350
Net loss	$	(3,465	)	$	(3,278	)
Weighted average common shares outstanding:
Basic and diluted		1,673			1,631
Basic and diluted net loss per common share:
Net loss per common share	$	(2.07	)	$	(2.01	)
Other comprehensive loss, net of tax:
Net loss	$	(3,465	)	$	(3,278	)
Available-for-sale securities:
Net unrealized gain (loss)		148			316
Total comprehensive loss	$	(3,317	)	$	(2,962	)

See accompanying notes to unaudited condensed consolidated financial statements.

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ASTROTECH CORPORATION

Condensed Consolidated Statement of Changes in Stockholders’ Equity

(In thousands)

(Unaudited)

	Preferred Stock
	Series D				Common Stock
	Number of Shares Outstanding		Amount		Number of Shares Outstanding		Amount		Treasury Stock Amount			Additional Paid-In Capital		Accumulated Deficit			Accumulated Other Comprehensive Loss			Total Stockholders’ Equity
Balance at June 30, 2025		281	$	—		1,759	$	190,643	$	(119	)	$	83,310	$	(250,870	)	$	(864	)	$	22,100
Net change in available-for-sale marketable securities		—		—		—		—		—			—		—			148			148
Stock-based compensation		—		—		—		—		—			304		—			—			304
Net loss		—		—		—		—		—			—		(3,465	)		—			(3,465	)
Balance at September 30, 2025		281	$	—		1,759	$	190,643	$	(119	)	$	83,614	$	(254,335	)	$	(716	)	$	19,087

	Preferred Stock
	Series D				Common Stock
	Number of Shares Outstanding		Amount		Number of Shares Outstanding		Amount		Treasury Stock Amount			Additional Paid-In Capital		Accumulated Deficit			Accumulated Other Comprehensive Loss			Total Stockholders’ Equity
Balance at June 30, 2024		281	$	—		1,702	$	190,643	$	(119	)	$	82,480	$	(237,020	)	$	(1,177	)	$	34,807
Net change in available-for-sale marketable securities		—		—		—		—		—			—		—			316			316
Stock-based compensation		—		—		—		—		—			216		—			—			216
Net loss		—		—		—		—		—			—		(3,278	)		—			(3,278	)
Balance at September 30, 2024		281	$	—		1,702	$	190,643	$	(119	)	$	82,696	$	(240,298	)	$	(861	)	$	32,061

See accompanying notes to unaudited condensed consolidated financial statements.

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ASTROTECH CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

	Three Months Ended
	September 30,
	2025			2024
Cash flows from operating activities:
Net loss	$	(3,465	)	$	(3,278	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation		304			216
Depreciation and amortization		236			232
Amortization of operating lease right-of-use assets		66			36
Interest on financing leases		1			2
Loss on disposal of asset		—			—
Changes in assets and liabilities:
Accounts receivable		132			(14	)
Contract asset		—			—
Inventory, net		(153	)		(224	)
Income tax payable		—			—
Accounts payable		(453	)		276
Deferred revenue
Other assets and liabilities		(590	)		(863	)
Repayment of financing liability in connection with internal-use software		-			(28	)
Operating lease liabilities		(14	)		(41	)
Net cash used in operating activities		(3,936	)		(3,686	)
Cash flows from investing activities:
Purchases of property and equipment		(448	)		(193	)
Purchases of intangible assets		-			—
Proceeds from short-term investments		3,966			-
Net cash provided by investing activities		3,518			(193	)
Cash flows from financing activities:
Repayment of financing liability in connection with internal-use software		(28	)		—
Repayments on finance lease liabilities		(8	)		(45	)
Net cash used in financing activities		(36	)		(45	)
Net change in cash and cash equivalents	$	(454	)	$	(3,924	)
Cash and cash equivalents at beginning of period		3,100			10,442
Cash and cash equivalents at end of period	$	2,646		$	6,518


Supplemental disclosures of cash flow information:
Cash paid for interest	$	9		$	4
Income taxes paid				$	1
Non-cash financing activities: Finance lease expenditures incurred but not paid for as of the end of the period	$	21			—
Operating Right of Use assets		—

See accompanying notes to unaudited condensed consolidated financial statements.

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ASTROTECH CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

(1) General Information

Business Overview

The terms “Astrotech”, “the Company”, “we”, “us”, or “our” refer to Astrotech Corporation (Nasdaq: ASTC), a Delaware corporation organized in 1984.

Our mission is to expand access to mass spectrometry ("MS") 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. The Astrotech Mass Spectrometer Technology™ (“AMS Technology”) platform achieves our mission through simplifying the user interface, automating the complicated calibration process, ruggedizing the critical components to endure MS field work, and enabling multiple configurations for sample intake options. 

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

●

Astrotech Technologies, Inc. (“ATI”) owns and licenses the intellectual property related to the AMS Technology.

●

1st Detect Corporation (“1st Detect”) is a manufacturer of explosives trace detectors ("ETDs") and narcotics trace detectors (“NTDs”) developed for use in security and detection at airports, border checkpoints, cargo hubs, infrastructure security, correctional facilities, military bases, and law enforcement centers. 1st Detect holds an exclusive AMS Technology license from ATI for air passenger and cargo security applications as well as narcotics detection.

●

AgLAB, Inc. (“AgLAB”) is developing a series of mass spectrometers for use in the hemp and cannabis market with initial focus on optimizing yields in the distillation processes. AgLAB holds an exclusive AMS Technology license from ATI for applications in the agriculture industry which require analyzing complex chemical compounds found in organic plant material and extracts.

●

BreathTech Corporation (“BreathTech”) is developing a breath analysis tool to screen for volatile organic compound (“VOC”) metabolites found in a person’s breath that could indicate a compromised condition including but not limited to a bacterial or viral infection. BreathTech holds an exclusive AMS Technology license from ATI for breath analysis applications.

●

Pro-Control, Inc. ("Pro-Control") is focused on applying the AMS Technology in industrial process control applications. The mass spectrometer and process are designed to test, measure and increase reaction intermediates, purity and percent yields in industrial processes. Pro-Control holds an exclusive AMS Technology license from ATI for the distillation of chemicals outside of the agriculture industry.

●

EN-SCAN, Inc. (“EN-SCAN”) is developing advanced environmental testing and monitoring solutions, integrating gas chromatography and mass spectrometry technology in rugged, portable designs. EN-SCAN’s products are expected to support industrial, environmental, and regulatory applications, helping organizations meet compliance requirements and environmental safety. EN-SCAN will use proprietary ATi Gas Chromatograph and AMS Technology license from ATI for instant feedback to accurately detect soil, water, and air contamination source location and migration.

Principles of Consolidation and Basis of Presentation

The accompanying condensed consolidated financial statements of Astrotech Corporation and Subsidiaries (collectively the “Company”) have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and disclosures required by accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. These condensed financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations of the Company for the period presented. The results of operations for the three months ended September 30, 2025, are not necessarily indicative of the results that may be expected for any future period or the fiscal year ending June 30, 2026 and should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025, filed with the SEC.

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Segment Information

The accounting guidance on Segment Reporting establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information of those segments to be presented in financial statements. Operating segments are identified as components of an enterprise for which separate discrete financial information is available for evaluation by the chief operating decision maker (the “CODM”), the Chief Executive Officer, in making decisions on how to allocate resources and assess performance. Net sales attributed to customers in the United States and foreign countries as of September 30, 2025, and June 30, 2025 were as follows:

Revenue by Segment (In thousands)	September 30, 2025		September 30, 2024
United States	$	256	$	—
Foreign Countries		41		34
Total Revenue	$	297	$	34

Product Revenue

(In thousands)	September 30, 2025		September 30, 2024
Training Revenue	$	20		—
Grant Revenue		234		—
Service Revenue		30		9
Warranty Revenue		13		25
Total Revenue	$	297	$	34

Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” which is intended to enhance the transparency and decision usefulness of income tax disclosures. The guidance addresses investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. The guidance is effective for annual periods beginning after December 15, 2024. We adopted this standard in fiscal year 2025 This pronouncement has not impacted the Company’s consolidated financial statements

Recently Issued Accounting Standards Not Yet Adopted

In November 2024, the FASB issued Accounting Standards Update 2024-03 "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40)" which requires that at each interim and annual reporting period an entity:

1. Disclose the amounts of (a) purchases of inventory, (b) employee compensation, (c) depreciation, (d) intangible asset amortization, and (e) depreciation, depletion, and amortization included in each relevant expense caption. A relevant expense caption is an expense caption presented on the face of the income statement within continuing operations that contains any of the listed expense categories.

2. Include certain amounts that are already required to be disclosed under current generally accepted accounting principles (GAAP) in the same disclosure as the other disaggregation requirements.

3. Disclose a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively.

4. Disclose the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses.

These amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027: either (1) prospectively to financial statements issued for reporting periods after the effective date of this Update or (2) retrospectively to any or all prior periods presented in the financial statements. The Company expects to enhance disclosures of expenses based on new requirements.

In November 2024, the FASB also issued Accounting Standards Update 2024-04 "Debt - Debt with Conversion and Other Options (Subtopic 470-20) “Induced Conversions of Convertible Debt Instruments” to clarify the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. Under the amendments, to account for a settlement of a convertible debt instrument as an induced conversion, an inducement offer is required to provide the debt holder with, at a minimum, the consideration (in form and amount) issuable under the conversion privileges provided in the terms of the instrument. An entity should assess whether this criterion is satisfied as of the date the inducement offer is accepted by the holder. If, when applying this criterion, the convertible debt instrument had been exchanged or modified (without being deemed substantially different) within the one-year period leading up to the offer acceptance date, an entity should compare the terms provided in the inducement offer with the terms that existed one year before the offer acceptance date. The amendments in this Update also clarify that the induced conversion guidance applies to a convertible debt instrument that is not currently convertible as long as it had a substantive conversion feature as of both its issuance date and the date the inducement offer is accepted. The amendments are effective for all entities for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. The Company is examining the impact this pronouncement may have on the Company’s consolidated financial statements.

Other accounting pronouncements issued but not yet effective are not believed by management to be relevant or to have a material impact on the Company’s present or future consolidated financial statements.

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(2) Investments

The following tables summarize gains and losses related to the Company’s investments as of September 30, 2025, and June 30, 2025, respectively:

	September 30, 2025
Available-for-Sale Investments	*Adjusted*		*Unrealized*		*Unrealized*			*Fair*
(In thousands)	*Cost*		*Gain*		*Loss*			*Value*
Mutual Funds - Corporate & Government Debt	$	7,246	$	—	$	(553	)	$	6,693
ETFs - Corporate & Government Debt		4,760		—		(163	)		4,597
Total	$	12,006	$	—	$	(716	)	$	11,290

	June 30, 2025
Available-for-Sale Investments	*Adjusted*		*Unrealized*		*Unrealized*			*Fair*
(In thousands)	*Cost*		*Gain*		*Loss*			*Value*
Mutual Funds - Corporate & Government Debt	$	10,547	$	—	$	(668	)	$	9,879
ETFs - Corporate & Government Debt		5,425		—		(196	)		5,229
Total	$	15,972	$	—	$	(864	)	$	15,108

As of September 30, 2025, and June 30, 2025, the Company had no long-term investments. For more information about the fair value of the Company’s financial instruments, see footnote 10.

The following table presents the carrying amounts of certain financial instruments as of September 30, 2025, and June 30, 2025, respectively:

	Carrying Value				Carrying Value
	Short-Term Investments				Long-Term Investments
(In thousands)	September 30, 2025		June 30, 2025		September 30, 2025		June 30, 2025
Money Market Funds
Mutual Funds - Corporate & Government Debt	$	6,693	$	9,879	$	—	$	—
ETFs - Corporate & Government Debt		4,597		5,229		—		—
Total	$	11,290	$	15,108	$	—	$	—

(3) Leases

On April 27, 2021, the Company entered into a lease for a research and development facility of approximately 5,960 square feet in Austin, Texas (the “R&D Facility”). On January 20, 2025, entered into the Donley Facilities Lease Extension as further described below.

On November 22, 2022, Astrotech entered into a sublease agreement for an additional facility directly adjacent to the R&D facility (the “Subleased Facility”). The Subleased Facility consists of approximately 3,900 square feet and will provide the space needed as the Company launches its AgLAB products and continues its R&D efforts at ATI and BreathTech. The sublease commenced on December 1, 2022, and has a lease term of 29 months. The R&D Facility and the Subleased Facility are collectively referred to herein as the “Donley Facilities.”

On January 20, 2025, the Company entered into a lease extension to extend the terms of the leases associated with the Donley Facilities, effective May 1, 2025 (“Donley Facilities Lease Extension”). We are currently continuing the lease on a month-to-month basis. The monthly rent for the Donley Facilities is $14,186 during the initial extension period.

On January 29, 2025, we entered into a new lease agreement for a facility of approximately 17,628 square feet in Austin, Texas (the “Metric Facility”) for a term of 89 months, which such term commences July 1, 2025. The Metric Facility is intended to support and encompass all Austin-based functions. Our total contractual base rent obligation for the Metric Facility is approximately $3.0 million, less a tenant allowance of $317.3 thousand.

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The balance sheet presentation of the Company’s operating and finance leases is as follows:

(In thousands)	Classification on the Condensed Consolidated Balance Sheet	September 30, 2025		June 30, 2025
Assets:
Operating lease assets	Operating leases, right-of-use assets, net	$	2,044	$	2,225
Financing lease assets	Property and equipment, net	$	202		79
*Total lease assets*		$	2,246	$	2,304

Liabilities:
Current:
Operating lease obligations	Lease liabilities, current	$	360	$	381
Financing lease obligations	Lease liabilities, current		24		24
Non-current:
Operating lease obligations	Lease liabilities, non-current		2,115		2225
Financing lease obligations	Lease liabilities, non-current		45		49
*Total lease liabilities*		$	2,544	$	2,679

Future minimum lease payments as of September 30, 2025, under non-cancellable leases are as follows (in thousands):

(In thousands)
For the Year Ended September 30,	Operating Leases			Financing Leases			Total
2026	$	284		$	20		$	304
2027		361			27			388
2028		374			27			401
2029		388			—			388
2030		403			—			403
2031		454			—			454
Thereafter		692			—			692
Total lease obligations		2,956			74			3,030
Less: imputed interest		(481	)		(5	)		(486	)
Present value of net minimum lease obligations		2,475			69			2,544
Less: lease liabilities - current		(360	)		(24	)		(384	)
Lease liabilities - non-current	$	2,115		$	45		$	2,160

Other information as of September 30, 2025, is as follows:

Weighted-average remaining lease term (years):
Operating leases	7.17
Financing leases	2.75
Weighted-average discount rate:
Operating leases	4.8	%
Financing leases	6.1	%

Cash payments for operating leases for the three months ended September 30, 2025, and 2024 were $63 thousand and $43 thousand, respectively. Cash payments for financing leases for the three months ended September 30, 2025, and 2024, were $8 thousand and $45 thousand respectively.

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(4) Property and Equipment, net

As of September 30, 2025, and June 30, 2025, property and equipment, net consisted of the following, respectively:

(In thousands)	September 30, 2025			June 30, 2025
Furniture, fixtures, equipment & leasehold improvements	$	3,756		$	3,960
Software		323			323
Capital improvements in progress		775			327
Gross property and equipment		4,854			4,610
Accumulated depreciation and amortization		(2,248	)		(2,215	)
Property and equipment, net	$	2,606		$	2,395

Depreciation and amortization expense of property and equipment was $236 thousand and $232 thousand for the three months ended September 30, 2025, and 2024, respectively. Total depreciation and amortization expense includes finance lease right-of-use asset amortization of $31 thousand for each of the three months ended September 30, 2025, and 2024, respectively.

(5) Intangible Assets, net

As of September 30, 2025, and June 30, 2025, intangible assets, net consisted of the following, respectively:

(In thousands)	September 30, 2025		June 30, 2025
Indefinite-life intangible asset	$	50	$	50
Accumulated amortization		—		(2	)
Intangible Assets, net	$	50	$	48

The indefinite-life intangible asset consists of a license from a national laboratory for technology used in gas chromatographic products.

(6) Warranty Reserve

Astrotech offers its customers warranties on the products that it sells. These warranties typically provide for repairs and maintenance of the products if problems arise during a specified period after original shipment. Concurrent with the sale of products, the Company records a provision for estimated warranty expenses with a corresponding increase in cost of goods sold. The Company periodically adjusts this provision based on historical experience and anticipated expenses. The Company charges actual expenses of repairs under warranty, including parts and labor, to this provision when incurred. The current obligation for warranty provision is included in accrued expenses and other liabilities in the condensed consolidated balance sheets. The warranty reserve balance was $173 thousand and $197 thousand of as September 30, 2025, and June 30, 2025, respectively.

(7) Stockholders’ Equity

Preferred Stock

The Company has issued 280,898 shares of Series D convertible preferred stock (“Series D Preferred Shares”), all of which were issued and outstanding as of September 30, 2025. Series D Preferred Shares are convertible to common stock on a one-to-thirty basis. Series D Preferred Shares are not callable by the Company. The holder of the preferred stock is entitled to receive, and we shall pay, dividends on shares equal to and in the same form as dividends actually paid on shares of common stock when, and if, such dividends are paid on shares of common stock. No other dividends are paid on the preferred shares. Preferred shares have no voting rights. Upon liquidation, dissolution, or winding-up of the Company, whether voluntary or involuntary, the preferred shares have preference over common stock. The holder of Series D Preferred Shares has the option to convert said shares to common stock at the holder’s discretion.

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Common Stock

The Company has issued 1,769,269 shares of common stock and has outstanding shares of common stock of 1,758,953 as of September 30, 2025. Treasury shares of 10,316 are the difference between issued and outstanding shares.

We did not issue common stock during the three months ended September 30, 2025.

Rights Plan

On December 21, 2022, the Company’s Board of Directors adopted a limited duration stockholder rights plan (the “Rights Plan”) expiring December 20, 2023 and declared a dividend of one preferred share purchase right for each outstanding share of common stock to stockholders of record on January 5, 2023 to purchase from the Company one one-thousandth of a share of Series A Junior Participating Preferred Stock, par value $0.001 per share, of the Company for an exercise price of $58.00 once the rights become exercisable, subject to the terms of and adjustment as provided in the related rights agreement.

On December 18, 2023, the Company entered into Amendment No. 1 to Rights Agreement between the Company and Equiniti Trust Company, as Rights Agent (the "Amendment"), which extended the Final Expiration Date (as defined in the Rights Plan) to December 20, 2024. On December 12, 2024, the Company entered into Amendment No. 2 to the Rights Agreement between the Company and the Rights Agent, which extends the Final Expiration Date to December 20, 2025, unless the Final Expiration Date is further extended by the Company or the rights subject to the Rights Plan are earlier redeemed or exchanged by the Company in accordance with the terms of the Rights Plan. All other terms and conditions of the Rights Plan remain unchanged.

Warrants

A summary of the common stock warrant activity for the three months ended September 30, 2025, is presented below:

SEC Form 10-Q filed by Astrotech Corporation (DE)