Financial Analysis

( 13 ) Commitments and Contingencies Legal Proceedings From time to time, the Company is subject to legal and administrative proceedings, settlements, investigations, claims and actions. The Companys assessment of the likely outcome of litigation matters is based on its judgment of a number of factors including experience with similar matters, past history, precedents, relevant financial and other evidence and facts specific to the matter. Notwithstanding the uncertainty as to the final outcome, based upon the information currently available, management does not believe any matters, individually or in aggregate, will have a material adverse effect on the Companys financial position or results of operations. The Company establishes reserves for the estimated losses on specific contingent liabilities, for regulatory and legal actions where the Company deems a loss to be probable and the amount of the loss can be reasonably estimated. In other instances, the Company is not able to make a reasonable estimate of liability because of the uncertainties related to the outcome or the amount or range of potential loss. …

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( 12 ) Employee Benefit Plans Astrotech has a defined contribution retirement plan, which covers substantially all employees and officers. `For the years ended June 30, 2025 and 2024 , the Company made matching contributions of $92 thousand and $82 thousand, respectively, to the plan. The Company has the right, but not an obligation, to make additional contributions to the plan in future years at the discretion of the Companys Board of Directors. The Company has not made any additional contributions for the years ended June 30, 2025 and 2024 . …

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(In thousands) June 30, 2025 June 30, 2024 Product Revenue $ 804 $ 1,576 Grant Revenue 115 - Service Revenue 130 88 Total Revenue $ 1,049 $ 1,664

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( 9 ) Common Stock Incentive, Stock Purchase Plans, and Other Compensation Plans Stock Option Activity Summary The Companys stock option activity for the years ended June 30, 2025 and 2024 was as follows: Weighted Shares Average Exercise Price Outstanding at June 30, 2023 38,166 $ 27.34 Granted 131,840 10.01 Exercised - - Canceled or expired (13,378 ) 10.70 Outstanding at June 30, 2024 156,628 $ 14.18 Granted 102,260 9.43 Exercised - - Canceled or expired (45,775 ) 12.10 Outstanding at June 30, 2025 213,113 $ 12.35 The aggregate intrinsic value of options exercisable at June 30, 2025 was $0 as the fair value of the Companys common stock is less than the exercise prices of these options. The aggregate intrinsic value of all options outstanding at June 30, 2025 was $3 thousand. Options Outstanding Options Weighted- Exercisable Average Weighted- Weighted- Number Remaining Average Number Average Outstanding Contractual Exercise Exercisable Exercise Range of exercise prices Life (years) Price Price $5.50 $9.69 55,000 9.45 $ 7.41 2,551 $ 9.21 $10.10 $11.27 79,770 8.24 10.12 27,720 10.14 $11.51 $19.20 76,402 8.22 14.21 29,422 18.42 $159.00 $175.50 1,941 1.86 170.33 1,941 170.33 $5.50 $175.50 213,113 8.49 $ 12.35 61,634 $ 19.10 Compensation costs recognized related to vested stock option awards during the years ended June 30, 2025 and 2024 were $622 thousand and $480 thousand, respectively. At June 30, 2025 , there was $858 thousand of total unrecognized compensation cost related to …

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( 6 ) Fair Value Measurement ASC Topic 820 Fair Value Measurement (Topic 820 ) defines fair value, establishes a market-based framework or hierarchy for measuring fair value, and expands disclosures about fair value measurements. Topic 820 is applicable whenever assets and liabilities are measured and included in the financial statements at fair value. The fair value hierarchy established in the standard prioritizes the inputs used in valuation techniques into three levels as follows: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. The following tables present the carrying amounts, estimated fair values, and valuation input levels of certain financial instruments as of June 30, 2025 , and June 30, 2024 : June 30, 2025 Carrying Fair Value Measured Using Fair (In thousands) Amount Level 1 Level 2 Level 3 Value Available-for-Sale Securities Short-Term Investments Mutual Funds - Corporate & Government Debt $ 9,879 $ 9,879 $ - $ - $ 9,879 ETFs - Corporate & Governm …

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( 10 ) Income Taxes The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Valuation allowances are established, when necessary, to reduce deferred tax assets to amounts that are more likely than not to be realized. As of June 30, 2025, and 2024, the Company had established a full valuation allowance against all of its net deferred tax assets. For the fiscal years ended June 30, 2025, and 2024, the Company incurred losses from operations in the amount of $13.8 million and $11.7 million, respectively. The effective tax rate for the fiscal years 2025 and 2024 was 0.01% and 0.01%, respectively. There is materially no current state tax expense. FASB ASC 740, Income Taxes addresses the accounting for uncertainty in income taxes recognized in an entitys financial statements and prescribes a recognition threshold and measurement attribute for financial statement disclosure of tax positions taken or expected to be taken on a tax return. The Company had unrecognized tax benefit of $762 thousand as of June 30, 2025, all of which has been accounted for as contra deferred tax assets. For the years ended June 30, 2025, and 2024, the Companys effective tax rate differed from the federal statutory rate of 21%, primarily due to tax credits and the valuation allowance against its net defer …

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"Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2023 - 07, Segment Reporting (Topic 280 ): Improvements to Reportable Segment Disclosures, which requires disclosure of incremental segment information on an annual and interim basis. The ASU is effective for fiscal years beginning after December 15, 2023, with retrospective application to all prior periods presented. We adopted this standard in fiscal year 2025. The adoption of this on July 1, 2024 did not have a material impact on its financial statements. In November 2023, the FASB issued Accounting Standards Update 2023 - 07 Segment Reporting (Topic 280 ): Improvements to Reportable Segment Disclosures. All public entities will be required to report segment information in accordance with the new guidance starting in annual periods beginning after December 15, 2023. We adopted this standard in fiscal year 2025. The Company implemented enhanced annual segment reporting disclosures based on new requirements. ASU 2022 - 04 - Supplier Finance Program (SFP) . This ASU requires that a buyer in an SFP disclose qualitative and quantitative information about its program, including the nature of the SFP and key terms, outstanding amounts as of the end of the reporting period, and presentation in its financial statements. This pronouncement has not impacted the Companys consolidated financial statements. In August 2020, the FASB issued ASU No. 2020 …

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"( 2 ) Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The preparation of these consolidated financial statements in conformity to U.S. Generally Accepted Accounting Principles (GAAP) for the accounts of Astrotech Corporation and all its wholly owned subsidiaries requires management to make judgments and estimates and form assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Estimates and underlying assumptions are reviewed on an ongoing basis. Actual outcomes may differ from these estimates under different assumptions and conditions. All intercompany transactions have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation and have had no impact on net income or stockholders' equity. Revenue Recognition Astrotech recognizes revenue employing the generally accepted revenue recognition methodologies described under the provisions of Accounting Standards Codification (""ASC"") Topic 606 Revenue from Contracts with Customers (Topic 606 ). The methodology used is based on contract type and how products and services are provided. The guidelines of Topic 606 establish a five -step process to govern the recognition and reporting of revenue from contracts with customers. The five steps are: (i) identify the contract with …

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"( 7 ) Stockholders Equity Common Stock On November 22, 2022, the Company filed a third amendment (the Amendment) to the Companys Certificate of Incorporation (as amended, the Certificate of Incorporation) with the Secretary of State of the State of Delaware to effect a 1 -for-30 stock split of all of the Companys issued and outstanding shares of Common Stock. The Amendment provided that, at the effective time of the Reverse Stock Split, every 30 shares of the Companys issued and outstanding Common Stock were automatically combined into one validly issued, fully paid and non-assessable share of Common Stock, without effecting a change to the par value per share. The Reverse Stock Split affected all shares of the Companys Common Stock outstanding immediately prior to the effective time of the Reverse Stock Split, as well as the number of shares of Common Stock available for issuance under the Companys equity incentive plans. In addition, the Reverse Stock Split effected a reduction in the number of shares of Common Stock issuable upon the exercise of stock options and warrants outstanding immediately prior to the effectiveness of the Reverse Stock Split with a corresponding increase in exercise price per share. The Reverse Stock Split also triggered a proportionate adjustment to the number of shares of Common Stock issuable upon the conversion of our Series D convertible preferred stock, par value of $0.001 per share (Series D Preferred Shares). All historical per share data, …

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( 14 ) Subsequent Events Management has determined there are no subsequent events to report through September 26, 2025.

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