Leases

6 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

(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.

On August 3, 2020, the Company terminated its office lease of 5,219 square feet in Austin, Texas that housed executive management, finance and accounting, sales, and marketing and communications. The lease began in November 2016 and was originally set to expire in December 2023. Upon lease termination, the Company recognized a decrease in the related operating right-of-use (“ROU”) asset and operating lease liability of approximately $539 thousand and $506 thousand, respectively.

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 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, 2021
Assets:
Operating lease assets	Operating leases, right-of-use assets, net	$	206
Financing lease assets	Property and equipment, net		516
Total lease assets		$	722
Liabilities:
Current:
Operating lease obligations	Lease liabilities, current	$	92
Financing lease obligations	Lease liabilities, current		135
Non-current:
Operating lease obligations	Lease liabilities, non-current		138
Financing lease obligations	Lease liabilities, non-current		283
Total lease liabilities		$	648

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

(In thousands)
For the Year Ended June 30,	Operating Leases		Financing Leases		Total
2022	$	52	$	77	$	129
2023		103		154		257
2024		93		154		247
2025		—		67		67
2026		—		—		—
Thereafter		—		—		—
Total lease obligations		248		452		700
Less: imputed interest		18		34		52
Present value of net minimum lease obligations		230		418		648
Less: lease liabilities - current		92		135		227
Lease liabilities - non-current	$	138	$	283	$	421

Other information as of December 31, 2021 is as follows:

Weighted-average remaining lease term (years):
Operating leases	2.4
Financing leases	3.0
Weighted-average discount rate:
Operating leases	6.4	%
Financing leases	5.3	%

Cash payments for operating leases for the three months ended December 31, 2021 and 2020 totaled $25 thousand and $53 thousand, respectively. Cash payments for operating leases for the six months ended December 31, 2021 and 2020 totaled $35 thousand and $123 thousand, respectively.

Cash payments for financing leases for the three months ended December 31, 2021 and 2020 totaled $15 thousand and $3 thousand, respectively. Cash payments for financing leases for the six months ended December 31, 2021 and 2020 totaled $18 thousand and $6 thousand, respectively.