astc20221231

astc20221231_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2022

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ___________

Commission file number 001-34426

Astrotech Corporation

(Exact Name of Registrant as Specified in its Charter)

Delaware		91-1273737
State or Other Jurisdiction of Incorporation or Organization		I.R.S. Employer Identification No.

2105 Donley Drive, Suite 100, Austin, Texas		78758
Address of Principal Executive Offices		Zip Code

(512) 485-9530

Registrant’s Telephone Number, Including Area Code

Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange on which registered

Common Stock, $0.001 par value per share

ASTC

NASDAQ Stock Market, LLC

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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

As of February 10, 2023, the number of shares of the registrant’s common stock outstanding was: 1,692,600.

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ASTROTECH CORPORATION AND SUBSIDIARIES

QUARTERLY REPORT ON FORM 10-Q

TABLE OF CONTENTS

		Page
PART I:	FINANCIAL INFORMATION	3

ITEM 1.	CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)	3
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	20
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	26
ITEM 4.	CONTROLS AND PROCEDURES	26

PART II:	OTHER INFORMATION	27

ITEM 1.	LEGAL PROCEEDINGS	27
ITEM 1A.	RISK FACTORS	27
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	27
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	27
ITEM 4.	MINE SAFETY DISCLOSURES	27
ITEM 5.	OTHER INFORMATION	27
ITEM 6.	EXHIBITS	28

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PART I: FINANCIAL INFORMATION

ITEM 1. Condensed Consolidated Financial Statements

ASTROTECH CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)

	*December 31,*			*June 30,*
	*2022*			*2022*
	(Unaudited)			(Note)
Assets
Current assets
Cash and cash equivalents	$	15,889		$	26,453
Short-term investments		30,953			26,173
Accounts receivable		112			56
Cost and estimated revenue in excess of billings		4			2
Inventory, net:
Raw materials		1,012			864
Work-in-process		167			136
Finished goods		318			518
Prepaid expenses and other current assets		979			748
Total current assets		49,434			54,950
Property and equipment, net		1,554			1,098
Operating leases, right-of-use assets, net		336			162
Other assets, net		11			11
Total assets	$	51,335		$	56,221
Liabilities and stockholders’ equity
Current liabilities
Accounts payable		301			169
Payroll related accruals		711			816
Accrued expenses and other liabilities		965			961
Income tax payable		1			2
Term note payable - related party		—			500
Lease liabilities, current		291			234
Total current liabilities		2,269			2,682
Lease liabilities, net of current portion		356			303
Total liabilities		2,625			2,985
Commitments and contingencies (Note 13)
Stockholders’ equity
Convertible preferred stock, $0.001 par value, 2,500,000 shares authorized; 280,898 shares of Series D issued and outstanding at December 31, 2022 and June 30, 2022		—			—
Common stock, $0.001 par value, 250,000,000 shares authorized at December 31, 2022 and June 30, 2022; 1,690,450 and 1,685,595 shares issued and outstanding at December 31, 2022 and June 30, 2022, respectively		190,643			190,642
Additional paid-in capital		80,295			79,505
Accumulated deficit		(220,659	)		(215,712	)
Accumulated other comprehensive loss		(1,569	)		(1,199	)
Total stockholders’ equity		48,710			53,236
Total liabilities and stockholders’ equity	$	51,335		$	56,221

Note: The balance sheet at June 30, 2022, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by the United States generally accepted accounting principles for complete financial statements.

See accompanying notes to unaudited condensed consolidated financial statements.

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ASTROTECH CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Operations and Comprehensive Loss

(In thousands, except per share data)

(Unaudited)

	*Three Months Ended*						*Six Months Ended*
	*December 31,*						*December 31,*
	*2022*			*2021*			*2022*			*2021*
Revenue	$	263		$	561		$	301		$	748
Cost of revenue		155			441			187			616
Gross profit		108			120			114			132
Operating expenses:
Selling, general and administrative		1,558			1,728			3,200			3,154
Research and development		1,364			652			2,492			1,291
Total operating expenses		2,922			2,380			5,692			4,445
Loss from operations		(2,814	)		(2,260	)		(5,578	)		(4,313	)
Other income and expense, net		396			80			631			104
Loss from operations before income taxes		(2,418	)		(2,180	)		(4,947	)		(4,209	)
Income tax benefit		—			—			—			—
Net loss	$	(2,418	)	$	(2,180	)	$	(4,947	)	$	(4,209	)
Weighted average common shares outstanding:
Basic and diluted		1,613			1,583			1,613			1,582
Basic and diluted net loss per common share:
Net loss per common share	$	(1.50	)	$	(1.38	)	$	(3.07	)	$	(2.66	)
Other comprehensive loss, net of tax:
Net loss	$	(2,418	)	$	(2,180	)	$	(4,947	)	$	(4,209	)
Available-for-sale securities:
Net unrealized losses, net of zero tax expense		(2	)		(197	)		(370	)		(245	)
Total comprehensive loss	$	(2,420	)	$	(2,377	)	$	(5,317	)	$	(4,454	)

See accompanying notes to unaudited condensed consolidated financial statements.

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ASTROTECH CORPORATION

Condensed Consolidated Statement of Changes in Stockholders’ Equity

(In thousands)

(Unaudited)

	*Preferred Stock*
	*Series D*				*Common Stock*
	*Number of Shares Outstanding*		*Amount*		*Number of Shares Outstanding*		*Amount*		*Additional Paid-In Capital*		*Accumulated Deficit*			*Accumulated Other Comprehensive Loss*			*Total Stockholders’ Equity*
Balance at June 30, 2022		281	$	—		1,686	$	190,642	$	79,505	$	(215,712	)	$	(1,199	)	$	53,236
Net change in available-for-sale marketable securities		—		—		—		—		—		—			(368	)		(368	)
Stock-based compensation		—		—		2		—		387		—			—			387
Net loss		—		—		—		—		—		(2,529	)		—			(2,529	)
Balance at September 30, 2022		281	$	—		1,688	$	190,642	$	79,892	$	(218,241	)	$	(1,567	)	$	50,726
Net change in available-for-sale marketable securities		—		—		—		—		—		—			(2	)		(2	)
Stock-based compensation		—		—		2		1		403		—			—			404
Net loss		—		—		—		—		—		(2,418	)		—			(2,418	)
Balance at December 31, 2022		281	$	—		1,690	$	190,643	$	80,295	$	(220,659	)	$	(1,569	)	$	48,710

	*Preferred Stock*
	*Series D*				*Common Stock*
	*Number of Shares Outstanding*		*Amount*		*Number of Shares Outstanding*		*Amount*		*Additional Paid-In Capital*		*Accumulated Deficit*			*Accumulated Other Comprehensive Loss*			*Total Stockholders’ Equity*
Balance at June 30, 2021		281	$	—		1,648	$	190,641	$	77,971	$	(207,382	)	$	(23	)	$	61,207
Net change in available-for-sale marketable securities		—		—		—		—		—		—			(48	)		(48	)
Stock-based compensation		—		—		—		—		359		—			—			359
Net loss		—		—		—		—		—		(2,029	)		—			(2,029	)
Balance at September 30, 2021		281	$	—		1,648	$	190,641	$	78,330	$	(209,411	)	$	(71	)	$	59,489
Net change in available-for-sale marketable securities		—		—		—		—		—		—			(197	)		(197	)
Stock-based compensation		—		—		2		—		439		—			—			439
Net loss		—		—		—		—		—		(2,180	)		—			(2,180	)
Balance at December 31, 2021		281	$	—		1,650	$	190,641	$	78,769	$	(211,591	)	$	(268	)	$	57,551

See accompanying notes to unaudited condensed consolidated financial statements.

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ASTROTECH CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

	*Six Months Ended*
	*December 31,*
	*2022*			*2021*
Cash flows from operating activities:
Net loss	$	(4,947	)	$	(4,209	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation		791			798
Depreciation and amortization		199			94
Changes in assets and liabilities:
Accounts receivable		(56	)		(87	)
Cost and estimated revenue in excess of billings		(2	)		—
Inventory, net		21			86
Accounts payable		132			(306	)
Income tax payable		(1	)		—
Other assets and liabilities		(392	)		140
Net cash used in operating activities		(4,255	)		(3,484	)
Cash flows from investing activities:
Purchase of security investments		(5,100	)		—
Purchases of property and equipment		(632	)		(264	)
Net cash used in investing activities		(5,732	)		(264	)
Cash flows from financing activities:
Repayment of related party debt		(500	)		(2,000	)
Repayments on lease financing		(77	)		(18	)
Net cash used in financing activities		(577	)		(2,018	)
Net change in cash and cash equivalents		(10,564	)		(5,766	)
Cash and cash equivalents at beginning of period		26,453			35,936
Cash and cash equivalents at end of period	$	15,889		$	30,170


Supplemental disclosures of cash flow information:
Cash paid for interest	$	63		$	3
Acquisition of equipment through financing lease	$	—		$	394
Operating right of use assets and associated liabilities	$	223		$	—
Income taxes paid	$	1		$	—

See accompanying notes to unaudited condensed consolidated financial statements.

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ASTROTECH CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

(1) General Information

Description of the Company – Astrotech Corporation (Nasdaq: ASTC) (“Astrotech,” the “Company,” “we,” “us,” or “our”), a Delaware corporation organized in 1984, is a mass spectrometry company that launches, manages, and commercializes scalable companies based on its innovative core technology.

Basis of Presentation – The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the three and six months ended December 31, 2022 are not necessarily indicative of the results that may be expected for the year ending June 30, 2023. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2022. Certain prior period amounts have been reclassified to conform to the current year presentation or adjusted due to rounding and have had no impact on net income or stockholders' equity.

Reverse Stock Split – On Monday, December 5, 2022, the Company effectuated a reverse stock split of its shares of common stock, par value $0.001 per share (the “Common Stock”), whereby every thirty (30) pre-split shares of Common Stock were exchanged for one (1) post-split share of the Company's Common Stock (the “Reverse Stock Split”). No fractional shares were issued in connection with the Reverse Stock Split. Stockholders who would otherwise have held a fractional share of the Common Stock received a cash payment in lieu thereof. Numbers presented in these condensed consolidated financial statements have been adjusted to reflect the Reverse Stock Split.

Accounting Pronouncements – There were no new accounting pronouncements which affected the company and its business.

Our Business Units

Astrotech Technologies, Inc.

Astrotech Technologies, Inc. (“ATI”) owns and licenses the Astrotech Mass Spectrometer Technology™ (the “AMS Technology”), the platform mass spectrometry technology originally developed by 1^st Detect Corporation (“1^st Detect”). The AMS Technology has been designed to be inexpensive, smaller, and easier to use when compared to traditional mass spectrometers. Unlike other technologies, the AMS Technology works under ultra-high vacuum, which eliminates competing molecules, yielding higher resolution and fewer false alarms. The intellectual property includes 21 patents granted with one additional patent in process along with extensive trade secrets. With a number of diverse market opportunities for the core technology, ATI is structured to license the intellectual property for different fields of use. ATI currently licenses the AMS Technology to three wholly-owned subsidiaries of Astrotech on an exclusive basis, including to 1^st Detect for use in the security and detection market, to AgLAB Inc. (“AgLAB”) for use in the agriculture market, and to BreathTech Corporation (“BreathTech”) for use in breath analysis applications.

1^st Detect Corporation

1^st Detect, a licensee of ATI for the security and detection market, has developed the TRACER 1000™, the world’s first mass spectrometry (“MS”) based explosives trace detector (“ETD”) certified by the European Civil Aviation Conference (“ECAC”). The TRACER 1000 was designed to outperform the ETDs currently used at airports, cargo and other secured facilities, and borders worldwide. The Company believes that ETD customers are unsatisfied with the currently deployed ETD technology, which is driven by ion mobility spectrometry (“IMS”). The Company further believes that some IMS-based ETDs have issues with false positives, as they often misidentify personal care products and other common household chemicals as explosives, causing facility shutdowns, unnecessary delays, frustration, and significant wasted security resources. In addition, there are hundreds of different types of explosives, but IMS-based ETDs have a very limited threat detection library reserved only for those few explosives of largest concern. Adding additional compounds to the detection library of an IMS-based ETD fundamentally reduces the instrument’s performance, further increasing the likelihood of false alarms. In contrast, adding additional compounds to the TRACER 1000’s detection library does not degrade its detection capabilities, as it has a virtually unlimited and easily expandable threat library.

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In order to sell the TRACER 1000 to airport and cargo security customers in the European Union and certain other countries, we obtained ECAC certification. The Company is currently selling the TRACER 1000 to customers who accept ECAC certification. As of December 31, 2022, the Company has deployed the TRACER 1000 in approximately 21 locations in 14 countries throughout Europe and Asia.

In the United States, the Company is working with the U.S. Transportation Security Administration (“TSA”) towards air cargo certification. On March 27, 2018, the Company announced that the TRACER 1000 was accepted into TSA’s Air Cargo Screening Technology Qualification Test (“ACSQT”) and, on April 4, 2018, the Company announced that the TRACER 1000 entered into testing with the TSA for passenger screening at airports. On November 14, 2019, the Company announced that the TRACER 1000 had been selected by the TSA’s Innovation Task Force to conduct live checkpoint screening at Miami International Airport. With similar protocols as ECAC testing, the Company has received valuable feedback from all programs. Following ECAC certification and the Company’s early traction within the cargo market, testing for cargo security continued with the TSA. With the COVID-19 pandemic, all testing within the TSA was put on hold; however, cargo testing resumed during the summer of 2020, and the Company subsequently announced on September 9, 2020 that the TRACER 1000 passed the non-detection testing portion of the TSA’s ACSQT. Due to delays caused by COVID-19, TSA cargo detection testing is ongoing, but has proceeded much more slowly than originally anticipated. As a result, efforts are primarily focused on our other opportunities. TSA cargo detection testing is the final step to be listed on the Air Cargo Screening Technology List as an “approved” device. If approved, the TRACER 1000 will be approved for cargo sales in the United States.

AgLAB Inc.

AgLAB, an exclusive licensee of ATI for the agriculture market, has developed the AgLAB 1000™ series of mass spectrometers for use in the hemp and cannabis markets with initial focus on optimizing yields in the distillation process. The AgLAB product line is a derivative of the Company’s core AMS Technology. We believe hemp and cannabis distillers can gain significant improvement on their processing yields by utilizing the AgLAB 1000-D2™ system with their existing short path-molecular distillation systems. As part of our growth plan, we also plan to launch a family of “process control” methods and solutions that we believe could be valuable additions to many nutraceutical distillation laboratories.

During the first quarter of fiscal year 2023, we began our first production run of the AgLAB 1000-D2 and sales efforts are currently underway.

BreathTech Corporation

BreathTech, an exclusive licensee of ATI for use in breath analysis applications, is developing the BreathTest-1000™, a breath analysis tool to screen for volatile organic compound (“VOC”) metabolites found in a person’s breath that could indicate they may have a bacterial or viral infection. The Company believes that new tools to aid in the battle against COVID-19 and other diseases remain of the utmost importance to help more quickly identify that an infection may be present.

In June 2022, the Company expanded its existing study that initially focused on COVID-19 with Cleveland Clinic to use the BreathTest-1000 to screen for a variety of diseases spanning the entire body. The project will focus on detecting bloodstream infections, respiratory infections such as influenza types A and B and respiratory syncytial virus (“RSV”), carriage of Staphylococcus aureus, and Clostridioides difficile (“C. diff”) infections.

(2) Investments

The following tables summarize gains and losses related to the Company’s investments as of December 31, 2022 and June 30, 2022:

	*December 31, 2022*
Available-for-Sale Investments	*Adjusted*		*Unrealized*		*Unrealized*			*Fair*
(In thousands)	*Cost*		*Gain*		*Loss*			*Value*
Mutual Funds - Corporate & Government Debt	$	19,997	$	—	$	(1,071	)	$	18,926
ETFs - Corporate & Government Debt		7,375		—		(463	)		6,912
Time Deposits		5,150		—		(35	)		5,115
Total	$	32,522	$	—	$	(1,569	)	$	30,953

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	*June 30, 2022*
Available-for-Sale Investments	*Adjusted*		*Unrealized*		*Unrealized*			*Fair*
(In thousands)	*Cost*		*Gain*		*Loss*			*Value*
Mutual Funds - Corporate & Government Debt	$	19,997	$	—	$	(806	)	$	19,191
ETFs - Corporate & Government Debt		7,375		—		(393	)		6,982
Time Deposits		—		—		—			—
Total	$	27,372	$	—	$	(1,199	)	$	26,173

We have certain financial instruments on our condensed consolidated balance sheets related to interest-bearing time deposits. Time deposits with maturities of less than 90 days, if any, from the purchase date are included in “Cash and Cash Equivalents.” Time deposits with maturities from 91-360 days, if any, are included in “Short-term investments.” Time deposits with maturities of more than 360 days, if any, are included in “Long-term investments.” As of December 31, 2022 and June 30, 2022, the Company had no long-term investments. For more information about the fair value of the Company’s financial instruments, see footnote 8.

The following table presents the carrying amounts of certain financial instruments as of December 31, 2022 and June 30, 2022:

	*Carrying Value*
	*Short-Term Investments*
(In thousands)	*December 31, 2022*		*June 30, 2022*
Mutual Funds - Corporate & Government Debt	$	18,926	$	19,191
ETFs - Corporate & Government Debt		6,912		6,982
Time Deposits - Maturities from 91-360 days		5,115		—
Total	$	30,953	$	26,173

(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 (the “R&D facility”) 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 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. The Company’s total contractual base rent obligation for the eleven-month extension is approximately $95 thousand.

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 BreathTech. The sublease commenced on December 1, 2022 and has a lease term of 29 months. The Company’s total contractual base rent obligation for the subleased facility is approximately $156 thousand.

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.

Upon the adoption of Topic 842, the Company’s accounting for financing leases, previously referred to as capital leases, remains substantially unchanged from prior guidance.

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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, 2022*
Assets:
Operating lease assets	Operating leases, right-of-use assets, net	$	336
Financing lease assets	Property and equipment, net		415
*Total lease assets*		$	751

Liabilities:
Current:
Operating lease obligations	Lease liabilities, current	$	148
Financing lease obligations	Lease liabilities, current		143
Non-current:
Operating lease obligations	Lease liabilities, non-current		216
Financing lease obligations	Lease liabilities, non-current		140
*Total lease liabilities*		$	647

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

(In thousands)
For the Year Ended June 30,	*Operating Leases*		*Financing Leases*		*Total*
2023	$	83	$	77	$	160
2024		166		154		320
2025		142		67		209
2026		—		—		—
2027		—		—		—
Thereafter		—		—		—
Total lease obligations		391		298		689
Less: imputed interest		27		15		42
Present value of net minimum lease obligations		364		283		647
Less: lease liabilities - current		148		143		291
Lease liabilities - non-current	$	216	$	140	$	356

Other information as of December 31, 2022 is as follows:

Weighted-average remaining lease term (years):
Operating leases	2.3
Financing leases	2.0
Weighted-average discount rate:
Operating leases	6.3	%
Financing leases	5.3	%

Cash payments for operating leases for the three months ended December 31, 2022 and 2021 totaled $31 thousand and $25 thousand, respectively. Cash payments for financing leases for the three months ended December 31, 2022 and 2021 totaled $38 thousand and $15 thousand, respectively.

Cash payments for operating leases for the six months ended December 31, 2022 and 2021 totaled $57 thousand and $35 thousand, respectively. Cash payments for financing leases for the six months ended December 31, 2022 and 2021 totaled $77 thousand and $18 thousand, respectively.

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(4) Property and Equipment, net

As of December 31, 2022 and June 30, 2022, property and equipment, net consisted of the following:

(In thousands)	*December 31, 2022*			*June 30, 2022*
Furniture, fixtures, equipment & leasehold improvements	$	1,981		$	1,371
Software		217			264
Capital improvements in progress		140			242
Gross property and equipment		2,338			1,877
Accumulated depreciation and amortization		(784	)		(779	)
Property and equipment, net	$	1,554		$	1,098

Depreciation and amortization expense of property and equipment for the three months ended December 31, 2022 and 2021 was $82 thousand and $34 thousand, respectively. Depreciation and amortization expense of property and equipment for the six months ended December 31, 2022 and 2021 was $149 thousand and $51 thousand, respectively.

(5) Stockholders’ Equity

Common Stock

On November 22, 2022, the Company filed a