Note 4 - Leases

12 Months Ended

Jun. 30, 2025

Lessee, Operating and Finance Leases Disclosure [Text Block]

(4) Leases

On April 27, 2021, Astrotech entered into a 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. 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.

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 R&D Facility and the Subleased Facility are collectively referred to herein 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 judgment 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 amortization expense for financed lease assets for the years ended June 30, 2025 and 2024 totaled $126 thousand and $124 thousand, respectively.

On January 20, 2025, the Company entered into a lease extension to extend the terms of the leases associated with the Donley Facilities effective May 1, 2025 (“Donley Facilities Lease Extension”). We are currently continuing the lease on a month-to-month basis. The monthly rent for the Donley Facilities will be $14,186 during the initial extension period.

On January 29, 2025, we entered into a new lease agreement for a facility of approximately 17,628 square feet in Austin, Texas (the “Metric facility”) for a term of 890months, which such term commences July 1, 2025. The Metric facility is intended to support and encompass all Austin based functions. Our total contractual base rent obligation for the Metric facility is approximately $3.0 million, less a tenant allowance of $317.3 thousand.

The balance sheet presentation of the Company’s operating and finance leases is as follows:

(In thousands)	*Classification on the Consolidated Balance Sheet*	*June 30, 2025*		*June 30, 2024*
Assets:
Operating lease assets	Operating lease right-of-use assets, net	$	2,225	$	119
Financing lease assets	Property and equipment, net		79		366
*Total lease assets*		$	2,304	$	485

Liabilities:
Current:
Operating lease obligations	Lease liabilities, current	$	381	$	138
Financing lease obligations	Lease liabilities, current		24		89
Non-current:
Operating lease obligations	Lease liabilities, non-current		2,225		-
Financing lease obligations	Lease liabilities, non-current		49		73
*Total lease liabilities*		$	2,679	$	300

Future minimum lease payments as of June 30, 2025 under non-cancelable leases are as follows (in thousands):

For the Year Ended June 30,	Operating Leases			Financing Leases			Total
2026	$	381		$	27		$	408
2027		396			27			423
2028		411			25			436
2029		426			-			426
2030		442			-			442
Thereafter		1,057			-			1,057
Total lease obligations		3,113			79			3,192
Imputed interest		(507	)		(6	)		(513	)
Present value of net minimum lease obligations		2,606			73			2,679
Lease liabilities - current		(381	)		(24	)		(405	)
Lease liabilities - non-current	$	2,225		$	49		$	2,274

Other information as of June 30, 2025 is as follows:

Weighted-average remaining lease term (years):
Operating leases	7.42
Financing leases	3.00
Weighted-average discount rate:
Operating leases	4.80	%
Financing leases	6.10	%

Cash payments for operating leases for the years ended June 30, 2025 and 2024 totaled $170 thousand and $166 thousand, respectively. Cash payments for financing leases for the years ended June 30, 2025 and 2024 totaled $94 thousand and $181 thousand, respectively.