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Note 3 - Leases

9 Months Ended

Mar. 31, 2025

Lessee, Operating and Finance Leases Disclosure [Text Block]

(3) Leases

On April 27, 2021, Astrotech entered into a lease for a research and development facility of approximately 5,960 square feet in Austin, Texas (the “R&D Facility”) that includes a laboratory, a small production shop, and offices for staff, although many of the Company’s employees continue to work remotely. The lease commenced on June 1, 2021, and had a lease term of 36 months. On November 11, 2022, the Company signed a lease extension agreement for the R&D Facility, extending the term of the lease through April 30, 2025. 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 provides the space needed for the Company to launch its AgLAB products and continues its R&D efforts at ATI and BreathTech. The sublease commenced on December 1, 2022, and had a lease term of 29 months through April 30, 2025. On January 20, 2025, entered into the Donley Facilities Lease Extension as further described below.

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, and terminating June 30, 2025 (“Donley Facilities Lease Extension”), with an option to continue the lease on a month-to-month basis. Astrotech expects to continue renewing the lease after June 30, 2025. The monthly rent for the Donley Facilities will be $14,186 during the initial extension period.

Operating lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate in determining the present value of lease payments. Significant judgement is required when determining the Company’s incremental borrowing rate. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Total depreciation and amortization expense includes finance lease right-of-use asset amortization of $7 thousand and $31 thousand for each of the three months ended March 31, 2025, and 2024, respectively. Total depreciation and amortization expense includes finance lease right-of-use asset amortization of $69 thousand and $94 thousand for each of the nine months ended March 31, 2025, and 2024, respectively.

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

(In thousands)	*Classification on the Condensed Consolidated Balance Sheet*	*March 31, 2025*		*June 30, 2024*
Assets:
Operating lease assets	Operating leases, right-of-use assets, net	$	35	$	119
Financing lease assets	Property and equipment, net		85		366
Total lease assets		$	120	$	485

Liabilities:
Current:
Operating lease obligations	Lease liabilities, current	$	43	$	138
Financing lease obligations	Lease liabilities, current		23		89
Non-current:
Operating lease obligations	Lease liabilities, non-current		—		—
Financing lease obligations	Lease liabilities, non-current		55		73
Total lease liabilities		$	121	$	300

Future minimum lease payments as of March 31, 2025, under non-cancellable leases are as follows (in thousands):

(In thousands)
For the Year Ended June 30,	*Operating Leases*			*Financing Leases*			*Total*
2025	$	43		$	7		$	50
2026		—			27			27
2027		—			27			27
2028		—			25			25
Total lease obligations		43			86			129
Less: imputed interest		—			(8	)		(8	)
Present value of net minimum lease obligations		43			78			121
Less: lease liabilities - current		(43	)		(23	)		(66	)
Lease liabilities - non-current	$	—		$	55		$	55

Other information as of March 31, 2025, is as follows:

Weighted-average remaining lease term (years):
Operating leases	0.3
Financing leases	3.3
Weighted-average discount rate:
Operating leases	6.1	%
Financing leases	6.1	%

Cash payments for operating leases for the three months ended March 31, 2025, and 2024 were $43 thousand and $41 thousand, respectively. Cash payments for financing leases for the three months ended March 31, 2025, and 2024, were $9 thousand and $45 thousand respectively.

Cash payments for operating leases for the nine months ended March 31, 2025, and 2024 were $128 thousand and $124 thousand, respectively. Cash payments for financing leases for the nine months ended March 31, 2025, and 2024, were $87 thousand and $136 thousand respectively.