Note 3 - Leases

3 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Lessee, Operating and Finance Leases Disclosure [Text Block]

(3) Leases

On April 27, 2021, Astrotech entered into a new lease for a research and development facility of approximately 5,960 square feet in Austin, Texas 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 has a lease term of 36 months.

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.

Upon the adoption of Topic 842, the Company’s accounting for financing leases, previously referred to as capital leases, remains substantially unchanged from prior guidance.

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, 2022
Assets:
Operating lease assets	Operating leases, right-of-use assets, net	$	140
Financing lease assets	Property and equipment, net		440
Total lease assets		$	580
Liabilities:
Current:
Operating lease obligations	Lease liabilities, current	$	98
Financing lease obligations	Lease liabilities, current		141
Non-current:
Operating lease obligations	Lease liabilities, non-current		64
Financing lease obligations	Lease liabilities, non-current		177
Total lease liabilities		$	480

Future minimum lease payments under non-cancellable leases are as follows:

(In thousands)
For the Year Ended June 30,	Operating Leases		Financing Leases		Total
2023	$	78	$	116	$	194
2024		93		154		247
2025		—		67		67
2026		—		—		—
2027		—		—		—
Thereafter		—		—		—
Total lease obligations		171		337		508
Less: imputed interest		9		19		28
Present value of net minimum lease obligations		162		318		480
Less: lease liabilities - current		98		141		239
Lease liabilities - non-current	$	64	$	177	$	241

Other information as of September 30, 2022 is as follows:

Weighted-average remaining lease term (years):
Operating leases	1.6
Financing leases	2.2
Weighted-average discount rate:
Operating leases	6.4	%
Financing leases	5.3	%

Cash payments for operating leases for the three months ended September 30, 2022 and 2021 totaled $26 thousand and $10 thousand, respectively. Cash payments for financing leases for the three months ended September 30, 2022 and 2021 totaled $38 thousand and $3 thousand, respectively. 

Amortization of ROU assets for the three months ended September 30, 2022 and 2021 totaled $22 thousand and $21 thousand, respectively.