Note 3 - Leases

9 Months Ended

Mar. 31, 2024

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 (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. 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 & 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 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. The amortization expense for financed lease assets for the years ended March 31, 2024 and 2023 totaled $94 thousand and $76 thousand, 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, 2024		June 30, 2023
Assets:
Operating lease assets	Operating leases, right-of-use assets, net	$	155	$	262
Financing lease assets	Property and equipment, net		398		484
Total lease assets		$	553	$	746
Liabilities:
Current:
Operating lease obligations	Lease liabilities, current	$	163	$	148
Financing lease obligations	Lease liabilities, current		126		168
Non-current:
Operating lease obligations	Lease liabilities, non-current		14		130
Financing lease obligations	Lease liabilities, non-current		78		161
Total lease liabilities		$	381	$	607

Future minimum lease payments as of March 31, 2024 under non-cancellable leases are as follows (in thousands):

(In thousands)
For the Year Ended June 30,	Operating Leases			Financing Leases			Total
2024	$	41		$	46		$	87
2025		142			94			236
2026		—			27			27
2027		—			27			27
2028		—			25			25
Thereafter		—			—			—
Total lease obligations		183			219			402
Less: imputed interest		(6	)		(15	)		(21	)
Present value of net minimum lease obligations		177			204			381
Less: lease liabilities - current		(163	)		(126	)		(289	)
Lease liabilities - non-current	$	14		$	78		$	92

Other information as of March 31, 2024, is as follows:

Weighted-average remaining lease term (years):
Operating leases	1.1
Financing leases	1.5
Weighted-average discount rate:
Operating leases	6.1	%
Financing leases	5.4	%

Cash payments for operating leases for the three months ended March 31, 2024, and 2023 totaled $41 thousand and $42 thousand, respectively. Cash payments for financing leases for the three months ended  March 31, 2024, and 2023 totaled $45 thousand and $38 thousand, respectively. 

Cash payments for operating leases for the nine months ended March 31, 2024, and 2023 totaled $124 thousand and $99 thousand, respectively. Cash payments for financing leases for the nine months ended  March 31, 2024, and 2023 totaled $136 thousand and $115 thousand, respectively.