Note 3 - Leases

6 Months Ended

Dec. 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 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. The combined R&D facility and the Subleased facility are referred to as the “Donley facilities.”

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 $31 thousand for each of the three months ended December 31, 2024, and 2023, respectively. Total depreciation and amortization expense includes finance lease right-of-use asset amortization of $63 thousand and $72 thousand for each of the six months ended December 31, 2024, and 2023, 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	December 31, 2024		June 30, 2024
Assets:
Operating lease assets	Operating leases, right-of-use assets, net	$	48	$	119
Financing lease assets	Property and equipment, net	$	304		366
Total lease assets		$	352	$	485
Liabilities:
Current:
Operating lease obligations	Lease liabilities, current	$	56	$	138
Financing lease obligations	Lease liabilities, current		25		89
Non-current:
Operating lease obligations	Lease liabilities, non-current		—		—
Financing lease obligations	Lease liabilities, non-current		61		73
Total lease liabilities		$	142	$	300

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

(In thousands)
For the Year Ended June 30,	Operating Leases			Financing Leases			Total
2025	$	57		$	15		$	72
2026		—			27			27
2027		—			27			27
2028		—			25			25
2029		—			—			—
Thereafter		—			—			—
Total lease obligations		57			94			151
Less: imputed interest		(1	)		(8	)		(9	)
Present value of net minimum lease obligations		56			86			142
Less: lease liabilities - current		(56	)		(25	)		(81	)
Lease liabilities - non-current	$	—		$	61		$	61

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

Weighted-average remaining lease term (years):
Operating leases	0.3
Financing leases	2.4
Weighted-average discount rate:
Operating leases	6.1	%
Financing leases	6.1	%

Cash payments for operating leases for the three months ended December 31, 2024, and 2023 were $43 thousand and $41 thousand, respectively. Cash payments for financing leases for the three months ended December 31, 2024, and 2023, were $33 thousand and $45 thousand respectively.

Cash payments for operating leases for the six months ended December 31, 2024, and 2023 were $85 thousand and $83 thousand, respectively. Cash payments for financing leases for the six months ended December 31, 2024, and 2023, were $79 thousand and $90 thousand respectively.