Astrotech Corporation (Nasdaq: ASTC) reported significant financial challenges for the three months ended September 30, 2024, with revenue plummeting to $34,000, a stark decline from $425,000 in the same period of 2023. This decrease is attributed primarily to the absence of device sales, as revenue was mainly derived from ongoing consumable and maintenance services for the TRACER 1000 mass spectrometer. The gross profit for the quarter was $9,000, down from $183,000 year-over-year, reflecting a gross margin decrease of 17% due to the decline in device sales.

Total operating expenses rose to $3,637,000, an increase of $119,000 or 3.4% compared to the previous year. This rise was driven by higher research and development costs, which increased by $77,000 due to a larger personnel count focused on mass spectrometry development. Selling, general, and administrative expenses also saw a slight increase of $42,000, attributed to heightened marketing efforts.

The company reported a loss from operations of $(3,628,000) for the quarter, compared to $(3,335,000) in the prior year. The net loss for the period was $(3,278,000), up from $(2,912,000) in the same quarter of 2023, resulting in a basic and diluted net loss per share of $(2.01), compared to $(1.79) a year earlier.

Cash and cash equivalents decreased to $6,518,000 as of September 30, 2024, down from $10,442,000 at the end of June 2024, reflecting a net change of $(3,924,000) for the quarter. The company’s total current assets also fell to $31,612,000 from $34,728,000, while total assets decreased to $34,449,000 from $37,640,000. However, total current liabilities decreased to $2,127,000 from $2,528,000, resulting in a working capital of approximately $29.5 million.

Astrotech continues to focus on its core mission of expanding access to mass spectrometry technology, with its wholly-owned subsidiaries actively developing products for various applications, including security, agriculture, and health screening. The company has maintained its strategic direction despite the financial setbacks, with ongoing investments in research and development to enhance its product offerings.

As of September 30, 2024, the company had no long-term investments and reported a valuation allowance against all net deferred tax assets. The effective tax rate for the quarter was approximately 0%, consistent with the previous year.