Astrotech Corporation (ASTC): Business Model Canvas [Dec-2025 Updated]

Honestly, looking at Astrotech Corporation (ASTC) right now feels like watching a tightrope walk: they're pushing their 1st Detect mass spectrometry tech while actively reviewing strategic alternatives as of November 19, 2025. The numbers tell the story-FY 2025 revenue was just $1.0 million, and they posted a $3.465 million loss in Q1 FY2026, making that $13.9 million cash position paramount. To understand what the buyers or the new path might look like, you need to see the core mechanics of their business, so check out the full canvas breakdown below.

Astrotech Corporation (ASTC) - Canvas Business Model: Key Partnerships

You're looking at the relationships Astrotech Corporation builds to make its business run, focusing on the external entities that provide essential inputs or validation for its mass spectrometry technology. These partnerships are critical, especially given the company's focus on high-stakes security and specialized industrial applications.

The relationship with the US Department of Homeland Security (DHS) is foundational for the 1st Detect subsidiary's TRACER 1000 product line. This partnership provides both revenue and crucial technological validation. For instance, Astrotech Corporation reported Q2 Fiscal Year 2025 revenue of $295 thousand, which was primarily generated by activities supporting work with the DHS to demonstrate the TRACER 1000 capabilities for advanced explosives trace detection.

More specifically, the 1st Detect subsidiary secured a research and development contract, number 70RSAT24CB0000015, with the DHS on January 14, 2025, to mature the TRACER 1000 for next-generation explosives trace detection. This contract has a total potential value of $1,290,650 over 30 months. The initial phase is valued at $581,639, with a contingent second phase valued at $709,011. Furthermore, Q3 Fiscal Year 2025 revenue of $534 thousand included a government grant, likely related to these ongoing R&D efforts.

For product deployment, especially within the domestic security apparatus, partnerships with Transportation Security Administration (TSA) contractors are key. Astrotech announced that 1st Detect received a purchase order for its TRACER 1000 Explosive Trace Detectors (ETDs) from Intuitive Research and Technology Corporation, identified as a TSA contractor. This purchase order was for $429 thousand and was fulfilled and recognized as revenue during the three months ended March 31, 2025. The TRACER 1000 also achieved a significant milestone by being approved for the Air Cargo Security Technology List (ACSTL) in June 2024, which advanced it to Stage II testing with the TSA.

The global reach of the TRACER 1000 is supported by international distribution partners. As of September 30, 2025, the company had deployed its TRACER 1000 technology in approximately 34 locations across 16 countries, spanning the United States, Europe, and Asia. This represents an expansion from the 14 countries where the Explosive Trace Detector (ETD) was previously noted to be in use.

The Pro-Control subsidiary focuses on the industrial sector, using the advanced mass spectrometer instrumentation to monitor and control the fractional distillation of bulk chemicals using real-time in-process samples. While the outline specifies testing with chemical/petrochemical companies, the latest data confirms the introduction of Pro-Control products for in-situ control and process optimization in chemical manufacturing.

The company's overall structure involves launching and commercializing scalable companies based on its core technology, which inherently suggests reliance on research institutions for technology sourcing and commercialization pathways, though specific financial figures for these relationships aren't detailed in the recent reports.

Here's a quick look at the quantifiable partnership metrics as of late 2025:

Partnership Category	Specific Metric/Value	Date/Period Reference
DHS R&D Contract (Total Potential Value)	$1,290,650	Awarded January 2025
DHS R&D Contract (Phase 1 Value)	$581,639	Awarded January 2025
TSA Contractor Purchase Order (Intuitive Research)	$429 thousand	Recognized in Q3 FY2025 (ended March 31, 2025)
TRACER 1000 International Deployment Locations	Approximately 34 locations	As of September 30, 2025
TRACER 1000 International Countries	16 countries	As of September 30, 2025
Cash & Liquid Investments (Liquidity Anchor)	$13.9 million	As of September 30, 2025

The company's financial position, with $13.9 million in cash and liquid investments as of September 30, 2025, is intended to support these ongoing R&D projects and market transition efforts. Still, the Q1 Fiscal Year 2026 revenue was only $297 thousand, showing the reliance on contract milestones and grants over immediate high-volume sales.

• DHS R&D Contract 70RSAT24CB0000015 for TRACER 1000 next-gen development.
• TSA approval for TRACER 1000 on Air Cargo Security Technology List (ACSTL).
• Pro-Control utilizing mass spectrometry for in-situ chemical distillation control.
• Deployment in security and cargo screening markets across Europe and Asia.

Astrotech Corporation (ASTC) - Canvas Business Model: Key Activities

You're looking at the core things Astrotech Corporation (ASTC) has to do to make this business model work, focusing on the numbers as of late 2025. It's a mix of deep tech development and trying to scale sales, which is always a tricky balance, especially when the market is watching closely.

Research and development (R&D) of mass spectrometry instruments

The R&D effort is heavily tied to government validation, specifically around the TRACER 1000 platform. The company is advancing its core technology through structured, funded programs. The cash position is a key resource supporting this ongoing work, though it has been decreasing.

• Cash and liquid investments as of September 30, 2025, stood at $13.9 million.
• Cash and liquid investments as of June 30, 2025, were $18.2 million.
• The company reported a Last Twelve Month (LTM) operating margin of -1404.6% as of November 25, 2025, showing R&D and operational costs significantly outpace current revenue.

Manufacturing and shipping of TRACER 1000 and new product lines

Manufacturing and shipping activities are reflected in the device sales, which contribute to the overall revenue stream. Astrotech Corporation has been expanding its physical footprint in the market through deployments.

Metric	Value/Period	Date/Context
TRACER 1000 Deployments	Approximately 34 locations in 16 countries	As of September 30, 2025
TRACER 1000 Deployments (Prior Data)	In 15 countries	As of March 31, 2025 (Q3 FY2025)
New Product Lines Launched	Four product lines	Including TRACER NTD, Pro-Control, and EN-SCAN
Q3 FY2025 Revenue from TRACER 1000 Shipments	Part of $534 thousand total revenue	Quarter ended March 31, 2025

Sales and marketing of trace detectors and process analyzers

Sales and marketing are focused on converting R&D progress and product launches into recognized revenue. The recent quarterly revenue shows a significant portion is currently coming from non-sales sources like grants, so accelerating direct product sales is defintely a key activity.

• Q1 Fiscal Year 2026 Revenue (ended September 30, 2025) was $297 thousand, a 35% increase compared to the fourth quarter of fiscal year 2025.
• Of the Q1 FY2026 revenue, $256 thousand was attributed to customers in the United States and $41 thousand to foreign countries.
• The fiscal year ended June 30, 2025, saw total revenue of $1.0 million, a decrease from the prior year, as the company sold fewer devices.

Securing government R&D grants and contracts

This is a critical activity, as government funding directly supports the development of the core technology and provides non-sales revenue. There are two distinct government-related activities noted, one for the 1st Detect subsidiary and one for Space Operations.

• 1st Detect subsidiary was awarded an R&D contract (70RSAT24CB0000015) with the Department of Homeland Security (DHS) on January 14, 2025, to mature the TRACER 1000.
• The total potential value of the DHS contract is $1,290,650 over 30 months, split into a first phase of $581,639 and a second phase of $709,011.
• Grant Revenue accounted for $234 thousand of the $297 thousand total revenue in Q1 FY2026.
• A payment of $77,834,215 was made on April 28, 2025, to ASTROTECH SPACE OPERATIONS, LLC from the Department of the Air Force for NSSL SV Processing facility expansion.

Managing the strategic alternatives review process

This activity became paramount in late 2025, signaling a major shift in corporate focus from pure operations to maximizing shareholder value through a transaction. The company has not set a definitive timetable for this process.

Metric/Context	Value/Status	Date Announced
Strategic Alternatives Review Initiated	Yes	November 19, 2025
Potential Actions Included	Raising equity capital, reverse mergers, combination transactions, sale of all or part of the business	November 2025
Stock Performance Context	Stock down 29.8% in 21 trading days	As of November 25, 2025
Current Company Size	$4.8 Mil market capitalization	As of November 25, 2025

Astrotech Corporation (ASTC) - Canvas Business Model: Key Resources

You're looking at the core assets Astrotech Corporation (ASTC) relies on to execute its strategy, especially as they navigate a review of strategic alternatives. These aren't just line items; they are the engines of their value creation.

Proprietary Technology Foundation

The bedrock of Astrotech Corporation's offering is its differentiated core technology. This isn't off-the-shelf stuff; it's specialized intellectual property driving their subsidiaries.

• Leverages proprietary mass spectrometry and gas chromatography technologies.
• These technologies form the basis for trace detection systems and process analyzers.
• EN-SCAN, Inc. specifically integrates gas chromatography and mass spectrometry for field environmental testing solutions.

This technology is what allows 1st Detect to pursue markets like explosives trace detection and narcotics screening, and what powers AgLAB in agriculture and Pro-Control in industrial manufacturing. It's the science that underpins every product line.

Financial Stability and Liquidity

Cash on hand is a critical resource, especially when exploring major strategic shifts. You need runway to develop, acquire, or negotiate. As of September 30, 2025, Astrotech Corporation held cash and liquid investments totaling $13.9 million.

Here's the quick math on that liquidity position based on the reported components from that date:

Resource Component	Amount (Millions USD)
Cash and Cash Equivalents	$2.646
Short-Term Investments	$11.290
Total Cash and Liquid Investments (Derived)	$13.936

This liquidity supported working capital of approximately $16.3 million as of that same date. Still, remember that operating cash flow was negative at $(3.936) million for the period, so managing this cash is paramount.

Intellectual Property Portfolio

The patents and IP are the legal moat around that proprietary technology. They represent exclusive rights to use and develop specific detection and analysis methods.

• Patented IP portfolio covers key areas in trace detection and chemical analysis.
• This IP is leveraged across security screening, narcotics detection, and industrial controls.

This portfolio is what the Board is looking to maximize value from, whether through scaling or transaction.

Specialized Talent Pool

You can't run advanced mass spectrometry and gas chromatography operations without the right people. Astrotech Corporation relies on specialized scientific and engineering talent to invent, acquire, and commercialize these innovations. The recent executive appointments show active management of this resource.

Key personnel shifts in late 2025 include:

• Appointment of Nihanth Badugu as Chief Operating Officer, effective August 13, 2025.
• Appointment of Scott Bartley as Interim Chief Financial Officer, announced October 31, 2025.

These roles are filled by individuals with executive management experience, which is a key intangible asset for navigating complex R&D and strategic reviews.

Austin Metric Facility

Operations and manufacturing require a physical footprint, and Astrotech Corporation's is centered in Austin, Texas. The corporate office is located at 2105 Donley Drive; Suite 100; Austin, TX 78758. The specific Austin Metric Facility is secured via a long-term lease.

The commitment to this operational base includes:

• An 89-month lease for the Austin Metric Facility.
• Total base rent obligations under that lease are about $3.0 million.
• The company received a $317.3 thousand tenant allowance against those obligations.

This facility is where the development and manufacturing of their trace detection systems and analyzers happen. Finance: draft 13-week cash view by Friday.

Astrotech Corporation (ASTC) - Canvas Business Model: Value Propositions

You're looking at the core benefits Astrotech Corporation (ASTC) is delivering to its customers across its technology platforms as of late 2025. These aren't just features; they are direct answers to market needs in security, manufacturing, and environmental monitoring.

Highly precise, field-ready explosives and narcotics trace detection is primarily driven by the TRACER 1000 product line. This technology offers a proven track record, serving airports in 15 countries. The system has processed thousands of samples in cargo screening operations over its four years of operational history as of the end of 2024. Furthermore, the TRACER 1000 NTD variant, introduced in March 2025, specifically targets the global drug crisis by screening for synthetic opiates and novel psychoactive substances. The commitment to this value proposition is backed by significant government investment, with a recent Department of Homeland Security (DHS) R&D contract valued up to $1,290,650 over 30 months to enhance these detection capabilities.

For chemical manufacturing, the value is in immediate process optimization. The real-time, in-situ chemical process control offered by the Pro-Control product line helps automate and optimize chemical manufacturing processes. This capability is being tested with some of the largest chemical and petrochemical companies, suggesting a high-value application where real-time data translates directly into efficiency gains.

The newly introduced EN-SCAN subsidiary focuses on delivering portable, ruggedized systems for on-site environmental testing. This line, featuring proprietary ATi Gas Chromatograph and Mass Spectrometer Technology™, is purpose-built for demanding field conditions. The value here is speed and accuracy, eliminating the traditional testing bottleneck where results from remote labs often take days or even weeks. With EN-SCAN, threats or contamination that previously went undetected for days can now be identified in minutes.

The inherent design of Astrotech Corporation's mass spectrometry instruments supports simplified operating procedures and minimal maintenance for end-users, which is crucial for field deployment across security and environmental sectors. This ease of use, combined with rugged design, allows for immediate, data-driven decision-making at the point of need.

Finally, the underlying technology offers significant flexibility through customization and field updatability of mass spectrometry instruments. This is evident in the EN-SCAN devices, which come preloaded with a library of thousands of chemical signatures, with the ability to add new or custom signatures easily in the field. This adaptability ensures the instruments remain relevant against evolving threats and testing requirements.

Here's a breakdown of how the key product lines deliver these value propositions, referencing recent operational and financial metrics where applicable:

Product Line	Primary Value Proposition Delivered	Key Metric/Data Point (as of late 2025)
TRACER 1000 / NTD	Highly precise, field-ready trace detection (Explosives & Narcotics)	Operational in 15 countries; DHS R&D contract up to $1,290,650
Pro-Control	Real-time, in-situ chemical process control for manufacturing optimization	Currently undergoing testing with some of the largest chemical and petrochemical companies
EN-SCAN (Rugged-Lab, Fenceline, Handheld GC)	Portable, ruggedized systems for on-site environmental testing	Reduces testing time from days/weeks to minutes
Mass Spectrometry Platform (Underlying Tech)	Customization and field updatability	EN-SCAN devices support a library of thousands of chemical signatures

The overall financial performance reflects the transition to selling these new lines. For example, Q3 Fiscal Year 2025 revenue reached $534 thousand, which included TRACER 1000 shipments. Despite this, the gross margin for the most recent reported quarter ending September 30, 2025, stood at 63%, indicating strong pricing or cost control on the units sold, even as the company manages a substantial free cash flow deficit of -$2,709,000 as of early October 2025.

• Deliver lab-grade accuracy in the most demanding environments.
• Support continuous monitoring and immediate response for environmental compliance.
• Enable easy procurement for government entities via GSA IT Schedule 70 listing for TRACER 1000.

Astrotech Corporation (ASTC) - Canvas Business Model: Customer Relationships

You're looking at how Astrotech Corporation (ASTC) manages its connections with its buyers, which is critical given its specialized, high-tech product lines. The relationships are clearly segmented based on the end-market, moving from direct government engagement to industrial process optimization.

Long-term contractual relationships with government agencies (e.g., DHS)

The relationship with the Department of Homeland Security (DHS) is foundational, evidenced by specific contract activity. Astrotech Corporation's subsidiary, 1st Detect, secured research and development contract number 70RSAT24CB0000015 with the DHS for the TRACER 1000 explosives trace detection system. Revenue in the second quarter of fiscal year 2025 was $295 thousand, primarily generated from activities supporting work with the DHS for the TRACER 1000™. By the third quarter of fiscal year 2025, total revenue reached $534,000, which included TRACER 1000™ shipments and a government grant. As of September 30, 2025, the company had deployed the TRACER 1000 in approximately 34 locations across 16 countries in the United States, Europe, and Asia. The TRACER 1000 system has four years of operational history in cargo warehouses across 14 countries.

Consultative selling model for Pro-Control chemical clients

For the Pro-Control subsidiary, which targets chemical manufacturing, the relationship is heavily consultative. Astrotech believes the Pro-Control MVP has the ability to routinely improve yields from 20% to 30%. This value proposition-improving lost yields and delivering found profits directly to the bottom line-necessitates a deep, technical engagement with large-volume chemical manufacturers. Decisions are progressing, and many quotes are pending following testing completed with some of the largest chemical and petrochemical companies.

Dedicated sales team for high-touch, enterprise-level B2B sales

The sales approach for specialized instruments like the TRACER line, which serves security and narcotics screening, requires a high-touch model. The company continues to advance its strategic sales plans globally. The deployment across 16 countries as of September 30, 2025, implies a structured, likely dedicated, international sales and deployment effort to manage these enterprise-level B2B relationships.

Direct technical support and maintenance for specialized instruments

The revenue mix in Q3 FY2025 included recurring consumable sales and maintenance services, which directly reflects the ongoing support relationship required after instrument deployment. This recurring revenue stream is a direct result of providing technical support and maintenance for the specialized mass spectrometry instruments deployed in the field.

Investor relations for transparency during strategic review

The relationship with shareholders is currently focused on transparency regarding corporate direction. The Board of Directors initiated a review of strategic alternatives on November 19, 2025. Management, including the Chairman and CEO, hosted investor meetings on September 9, 2025, as part of the H.C. Wainwright 27th Annual Global Investment Conference. As of September 30, 2025, the company held $13.9 million in cash and liquid investments to support its operations during this review period.

Key Customer Relationship Metrics as of Late 2025:

Relationship Aspect	Metric/Value	Context/Date
Government Contract Value (R&D)	70RSAT24CB0000015	DHS R&D Contract for TRACER 1000
Government-Related Revenue (Q2 FY2025)	$295 thousand	Primarily from DHS activities
Total Revenue (Q3 FY2025)	$534,000	Included maintenance services
Pro-Control Yield Improvement Potential	20% to 30%	Routinely achievable for MVP
Global TRACER 1000 Deployments	34 locations	As of September 30, 2025
Countries with TRACER 1000 History	14 countries	Operational history in cargo warehouses
Cash Position during Strategic Review	$13.9 million	As of September 30, 2025

• TRACER 1000 operational history spans four years.
• The company is focused on selling and marketing all its brands.
• Investor Relations activity included a conference presentation on September 9, 2025.

Astrotech Corporation (ASTC) - Canvas Business Model: Channels

You're looking at how Astrotech Corporation moves its technology, like the TRACER 1000, from the lab to the end-user as of late 2025. This is all about getting those specialized mass spectrometry instruments into the hands of government agencies and international clients.

The government channel is clearly a major focus. Astrotech's subsidiary, 1st Detect Corporation, secured research and development contract 70RSAT24CB0000015 with the Department of Homeland Security (DHS) on January 14, 2025, specifically to mature the TRACER 1000 for next-generation explosives trace detection. Revenue in Q2 of fiscal year 2025, which was $295 thousand, came primarily from activities supporting work with the DHS. Furthermore, a purchase order valued at $429 thousand for TRACER 1000 ETDs from a TSA contractor was fulfilled and recognized as revenue in the quarter ending March 31, 2025.

The GSA listing acts as a pre-approved pathway for federal sales. 1st Detect's TRACER 1000 is listed in the U.S. General Services Administration (GSA) IT Schedule 70 under Contract No. GS-35F-250GA. This streamlines the process for federal agencies to procure the technology.

For global reach, Astrotech is expanding its footprint. The company announced the first sale and deployment of its TRACER 1000 Narcotics Trace Detector in Vietnam, marking a step into Southeast Asia. Looking at the most recent quarterly revenue breakdown (Q1 FY2026, ending September 30, 2025), foreign sales accounted for $41 thousand, while U.S. sales were $256 thousand.

The actual movement of product involves direct shipments, as revenue in Q3 FY2025 was comprised of TRACER 1000 shipments, a government grant, and recurring consumable sales. The installed base shows this distribution:

Metric	Value as of June 30, 2025	Value as of September 30, 2025
Total TRACER 1000 Deployments	Approximately 34 locations	Approximately 34 locations
Countries with Deployments	16 countries	16 countries
Geographic Reach	United States, Europe and Asia	United States, Europe and Asia

Product showcases at industry events are part of the marketing spend. For the period ending September 30, 2024 (Q1 FY2025), operating expenses increased by $119 thousand, which represented a 3.3% rise, specifically due to increased trade event participation.

The direct sales effort targets specific high-value markets, which include:

• Airport security checkpoints
• Border security operations
• Cargo handling facilities
• Infrastructure security sites
• Correctional facilities
• Military bases
• Law enforcement centers

The TRACER 1000 NTD and ETD together form a comprehensive protection platform applied across these sectors.

Finance: draft 13-week cash view by Friday.

Astrotech Corporation (ASTC) - Canvas Business Model: Customer Segments

You're looking at the customer base for Astrotech Corporation (ASTC) as of late 2025. This company, through its subsidiaries like 1st Detect, AgLab, Pro-Control, and the newly formed EN-SCAN, targets several distinct, high-stakes markets using its core mass spectrometry technology. Honestly, the revenue figures show they are still heavily reliant on government R&D, but the segment expansion is clear.

The primary customer segments Astrotech Corporation targets are clearly defined by the application of its detection and analysis instruments:

• Government security agencies (DHS, TSA, military) for explosives detection
• International airport and cargo screening facilities in 16 countries
• Chemical and petrochemical manufacturers for process control
• Environmental testing and remediation firms (air, water, soil analysis)
• Law enforcement and border patrol for narcotics trace detection (TRACER NTD)

The government security segment is a major driver, especially for the TRACER 1000 explosives trace detector (ETD). You see this reflected directly in the financials. For example, the second quarter of fiscal year 2025 (ended December 31, 2024) revenue was $295 thousand, which came primarily from work supporting the U.S. Department of Homeland Security (DHS) on the TRACER 1000 demonstration. Furthermore, 1st Detect secured a significant R&D contract (70RSAT24CB0000015) with DHS on January 14, 2025, to mature the TRACER 1000 for next-generation explosives trace detection, valued up to $1,290,650 over 30 months. This contract is split into Phase 1 for $581,639 and a contingent Phase 2 for $709,011.

The deployment footprint in the security sector is expanding globally. As of June 30, 2025, the TRACER 1000 has been deployed in approximately 34 locations across 16 countries spanning the United States, Europe, and Asia. This builds on earlier success; by February 2025, the CEO noted the explosive trace detection products were proven with four years of use in cargo warehouses at airports in 14 countries. The TSA has also been a key partner, with 1st Detect receiving a purchase order for TRACER 1000 ETDs from Intuitive Research and Technology Corporation, a TSA contractor, on January 23, 2025. That specific $429 thousand purchase order was fulfilled and recognized as revenue during the three months ended March 31, 2025.

The expansion into narcotics detection directly targets law enforcement and border patrol needs. 1st Detect Corporation launched its enhanced TRACER 1000 Narcotics Trace Detector (TRACER 1000 NTD). This system is specifically configured to deliver speed and accuracy in detecting trace levels of synthetic opiates and novel psychoactive substances, including fentanyl. A major milestone for this segment was the first sale and deployment of the TRACER 1000 NTD system in Vietnam on July 31, 2025.

For the chemical and petrochemical sector, Astrotech Corporation uses its subsidiary Pro-Control, Inc., which produces products for the in-situ control of chemical manufacturing processes. The overall focus on mass spectrometry technology is positioned to serve these customers for process optimization.

Environmental testing is a newer, dedicated segment, established with the formation of EN-SCAN, Inc. in February 2025. This subsidiary develops instruments for on-site, real-time air, water, and soil analysis using proprietary technology. The company announced the deployment of EN-SCAN devices in August 2025 to transform instant, on-site environmental field monitoring.

Here's a quick look at how the revenue streams supporting these segments looked for the fiscal year ended June 30, 2025, and the subsequent quarter:

Metric	Value (FY Ended June 30, 2025)	Value (Q1 FY2026, Ended Sept 30, 2025)
Total Revenue	$1.0 million	$297,000
US Sales Component	Not specified	$256 thousand
Foreign Sales Component	Not specified	$41 thousand
Cash & Liquid Investments (End of Period)	$18.2 million	Approx. $16.3 million ($2.646M cash + $11.290M short-term investments)

To be fair, while the customer base is diversifying across security, environmental, and industrial process control, the Q1 FY2026 revenue of $297,000 is only a 35% increase over the previous quarter (Q4 FY2025 revenue was $220,000). Still, the gross margin improved to 63% for the full fiscal year 2025, up from 45.1% in the prior year, due to higher-margin device sales in 2025.

Finance: review the Q1 FY2026 revenue breakdown against the Pro-Control and EN-SCAN sales pipeline by next Tuesday.

Astrotech Corporation (ASTC) - Canvas Business Model: Cost Structure

You're looking at the expenses Astrotech Corporation is carrying as it tries to scale its product lines. Honestly, the cost side is where the current pressure is showing up.

The most immediate figure you see is the bottom line for the first quarter of fiscal year 2026, which ended September 30, 2025. The net loss for that period was reported at $3.465 million. $(3.465)M is a significant burn rate, especially when compared to the prior year's loss of $(3.278)M for the same quarter.

This loss is driven by the overall operating structure. The loss from operations for Q1 FY2026 was $(3.536) million, which was slightly better than the prior year's loss from operations of $(3.628) million. The company noted that Selling, General, and Administrative (SG&A) expenses were slightly higher in Q1 FY2026. The operating cash outflow for that same quarter was substantial at $(3.936) million.

Here's a quick look at the Q1 FY2026 financial snapshot that feeds into these costs:

Metric	Amount (Q1 FY2026)
Total Revenue	$297 thousand
Gross Profit	$188 thousand
Gross Margin	63%
Net Loss	$(3.465) million

Regarding research and development (R&D), the most recent detailed change available shows that R&D expenses actually decreased in the first quarter of fiscal year 2025 compared to Q1 FY2024. Specifically, R&D expenses decreased by $5 thousand, or 0.2%. This decrease was attributed to lower material purchases and slightly reduced consulting costs. However, this reduction was partially offset by higher personnel-related expenses, which included equity compensation and recruiting costs for technical hires needed to mature those product lines.

Costs of revenue (COGS) are a factor, as the search results indicate that rising operating costs and COGS eroded profitability despite the revenue surge in Q1 FY2026. With Q1 FY2026 revenue at $297 thousand and gross profit at $188 thousand, the implied COGS for that period was approximately $109 thousand ($297k - $188k).

Employee compensation is a component of the operating expenses. While the specific stock-based compensation figure of $1 million isn't explicitly stated for the latest period, we know equity compensation was part of the personnel costs driving R&D expenses in Q1 FY2025. Furthermore, the company finalized separation terms with its former CFO, which included a cash payment of $122,795.25 plus COBRA premiums through April 30, 2026.

General and administrative costs include the expenses related to the strategic review. Astrotech Corporation announced that its Board initiated a review of strategic alternatives on November 19, 2025. This review process, which explores actions like raising equity capital, reverse mergers, or sale of part of the business, inherently involves legal fees and other administrative costs that fall into the G&A bucket, though the exact amount for these specific legal fees isn't itemized in the latest reports.

• R&D expense change (Q1 FY2025 vs Q1 FY2024): Down $5 thousand
• Personnel costs in R&D included equity compensation
• Former CFO separation cash payment: $122,795.25
• COBRA coverage for former CFO through: April 30, 2026

Finance: draft 13-week cash view by Friday.

Astrotech Corporation (ASTC) - Canvas Business Model: Revenue Streams

You're looking at the revenue streams for Astrotech Corporation (ASTC) as of late 2025. Honestly, the numbers show a company heavily reliant on specific, large, project-based wins right now, though they are actively building out recurring sources.

The primary engine for top-line growth in the most recent reported quarter was the sale of the core detection hardware. Sales of TRACER 1000™ trace detection devices generated significant revenue, exemplified by the $534 thousand reported in Q3 FY2025. To be precise, a large portion of that quarterly figure came from a single event: a $429 thousand purchase order from Intuitive Research and Technology Corporation, a contractor for the Transportation Security Administration (TSA), which was fulfilled and recognized in that period.

The total fiscal year 2025 revenue, which ended June 30, 2025, was reported as $1.0 million, a defintely small figure when you look at the operational burn rate. Still, this revenue is composed of several distinct sources, which is key to understanding the model.

Here's a breakdown of the known revenue components based on the latest available data points:

Revenue Stream Component	Most Recent Specific Data Point (Period)	Amount
TRACER 1000™ Device Sales (Single Order Example)	Q3 FY2025	$429 thousand
Total Quarterly Revenue (Device Sales, Grant, Recurring)	Q3 FY2025	$534 thousand
Total Annual Revenue	Fiscal Year Ended June 30, 2025	$1.0 million
Grant Revenue and Consumables (Latest Indicator)	Q1 FY2026 (Ended September 30, 2025)	Drove 35% increase over Q4 FY2025

You see the focus on government funding supporting development. Government research and development (R&D) grant revenue is a clear stream, evidenced by the award of contract 70RSAT24CB0000015 with the Department of Homeland Security (DHS) for TRACER 1000 maturation, which contributed to the Q3 FY2025 total.

The company is actively trying to shift toward more predictable income. Recurring revenue from consumable sales and maintenance services is a stated goal. The most recent quarter, Q1 FY2026, showed revenue of $297 thousand, which was explicitly driven by more grant revenue and increased consumable sales compared to the prior quarter (Q4 FY2025).

Astrotech Corporation is also building out revenue potential through new product lines. Sales of these newer offerings are expected to diversify the base beyond the core TRACER 1000™ Explosives Trace Detector (ETD) platform. These include:

• Sales of new product lines: TRACER NTD
• Sales of new product lines: Pro-Control
• Sales of new product lines: EN-SCAN

The management team highlighted the launch of these four product lines in total during fiscal year 2025, aiming to expand sales opportunities across security, environmental monitoring, and chemical processing markets.

Finance: draft 13-week cash view by Friday.