Noncontrolling Interest

12 Months Ended

Jun. 30, 2015

From January 2010 through June 2014, restricted shares of Astrotech subsidiaries, 1^st Detect and Astrogenetix, were granted to certain employees, directors and officers (see Note 11). During June 2014, the Company completed an internal reorganization involving both 1^st Detect and Astrogenetix which resulted in the two entities becoming wholly-owned subsidiaries of the Company, and which was effected through the relinquishment by certain employees of equity grants previously issued to them in 1^st Detect and Astrogenetix.

During the third quarter of 2015, Astral Images was created in conjunction with a noncontrolling interest, resulting in Astrotech owning 72% of Astral at the time of creation. The Company applied noncontrolling interest accounting for the fiscal years ended June 30, 2015 and June 30, 2014, which requires us to clearly identify the noncontrolling interest in the consolidated balance sheets and consolidated income statements. We disclose three measures of net income (loss): net income (loss), net loss attributable to noncontrolling interest and net income (loss) attributable to Astrotech Corporation. Our operating cash flows in our consolidated statements of cash flows reflect net income (loss), while our basic and diluted earnings per share calculations reflect net income (loss) attributable to Astrotech Corporation.

The noncontrolling interest balance of $1.8 million at June 30, 2014 represented an interest held by the State of Texas Emerging Technology Fund, which was settled in August 2014 for $2.3 million (see Note 16 for more information). The noncontrolling interest balance of $299 thousand at June 30, 2015 represents a noncontrolling interest in Astral Images.



(in thousands)	2015			2014
Beginning balance	$	1,800		$	2,788
Net loss attributable to noncontrolling interest	(123		)	(908		)
Repayment of State of Texas Emerging Technology Fund	(1,800		)	—
Capital contribution	—			1,000
Noncontrolling interest funding of Astral Images	422			—
Stock-based compensation expense	—			6
Change in interest of subsidiaries	—			(1,086		)
Ending balance	$	299		$	1,800

The capital contribution was made by the Company in order to fund the net losses of the noncontrolling interest in fiscal 2014. As of June 30, 2015, Astrotech owned 83% of Astral.

From July 1, 2013 to June 11, 2014, the Company’s share of income and losses was 86% for 1^st Detect and 84% for Astrogenetix. Subsequent to June 11, 2014, 100% of income and losses of 1^st Detect and Astrogenetix was included in the net income (loss) attributable to Astrotech Corporation.

The effect of the change in our ownership interest in 1^st Detect and Astrogenetix on our equity is as follows (in thousands):



	2015		2014
Net loss attributable to Astrotech Corporation shareholders	$	—	$	(4,960	)
Transfers from noncontrolling interest:
Increase in Astrotech Corporation's paid-in capital for relinquishment of subsidiary stock	—		1,086
Change from net loss attributable to Astrotech Corporation shareholders and transfers from noncontrolling interest	$	—	$	(3,874	)