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Note 4 - Leases

12 Months Ended

Jun. 30, 2023

Lessee, Operating and Finance Leases Disclosure [Text Block]

(4) 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 (the “R&D facility”) that includes a laboratory, a small production shop, and offices for staff. 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. The Company’s total contractual base rent obligation for the eleven-month extension is approximately $95 thousand.

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 Company’s total contractual base rent obligation for the subleased facility is approximately $156 thousand.

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 judgment 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. The amortization expense for financed lease assets for the years ended June 30, 2023 and 2022 totaled $101 thousand and $61 thousand, respectively.

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 Consolidated Balance Sheet*	*June 30, 2023*		*June 30, 2022*
Assets:
Operating lease assets	Operating lease right-of-use assets, net		262		162
Financing lease assets	Property and equipment, net		484		466
*Total lease assets*		$	746	$	628

Liabilities:
Current:
Operating lease obligations	Lease liabilities, current		148		95
Financing lease obligations	Lease liabilities, current		168		139
Non-current:
Operating lease obligations	Lease liabilities, non-current		130		90
Financing lease obligations	Lease liabilities, non-current		161		213
*Total lease liabilities*		$	607	$	537

Future minimum lease payments as of June 30, 2023 under non-cancelable leases are as follows (in thousands):

For the Year Ended June 30,	*Operating Leases*			*Financing Leases*			*Total*
2024	$	153		$	181		$	334
2025		142			94			236
2026		—			27			27
2027		—			27			27
2028		—			24			24
Thereafter		—			—			—
Total lease obligations		295			353			648
Imputed interest		(17	)		(24	)		(41	)
Present value of net minimum lease obligations		278			329			607
Lease liabilities - current		(148	)		(168	)		(316	)
Lease liabilities - non-current	$	130		$	161		$	291

Other information as of June 30, 2023 is as follows:

Weighted-average remaining lease term (years):
Operating leases	1.8
Financing leases	2.2
Weighted-average discount rate:
Operating leases	6.3	%
Financing leases	5.2	%

Cash payments for operating leases for the years ended June 30, 2023 and 2022 totaled $130 thousand and $86 thousand, respectively. Cash payments for financing leases for the years ended June 30, 2023 and 2022 totaled $157 thousand and $95 thousand, respectively.