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Note 4 - Leases

12 Months Ended

Jun. 30, 2022

Lessee, Operating and Finance Leases Disclosure [Text Block]

(4) 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 that includes a laboratory, a small production shop, and offices for staff, although the Company’s accounting and administrative employees continue to work remotely. The lease commenced on June 1, 2021 and has a lease term of 36 months.

On August 3, 2020, the Company terminated its corporate office lease of 5,219 square feet in Austin, Texas that housed executive management, finance and accounting, sales, and marketing and communications. The lease began in November 2016 and was originally set to expire in December 2023. Upon lease termination, the Company recognized a decrease in the related operating ROU asset and operating lease liability of approximately $539 thousand and $506 thousand, respectively.

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.

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.

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, 2022*
Assets:
Operating lease assets	Operating leases, right-of-use assets, net		162
Financing lease assets	Property and equipment, net		466
Total lease assets		$	628

Liabilities:
Current:
Operating lease obligations	Lease liabilities, current		95
Financing lease obligations	Lease liabilities, current		139
Non-current:
Operating lease obligations	Lease liabilities, non-current		90
Financing lease obligations	Lease liabilities, non-current		213
Total lease liabilities		$	537

Future minimum lease payments as of June 30, 2022 under non-cancelable leases are as follows (in thousands):

For the Year Ended June 30,	*Operating Leases*		*Financing Leases*		*Total*
2023		104		154	$	258
2024		93		154		247
2025		—		67		67
2026		—		—		—
2027		—		—		—
Thereafter		—		—		—
Total lease obligations		197		375		572
Less: imputed interest		12		23		35
Present value of net minimum lease obligations		185		352		537
Less: lease liabilities - current		95		139		234
Lease liabilities - non-current	$	90	$	213	$	303

Other information as of June 30, 2022 is as follows:

Weighted-average remaining lease term (years):
Operating leases	1.85
Financing leases	2.45
Weighted-average discount rate:
Operating leases	6.4	%
Financing leases	5.3	%

Cash payments for operating leases for the years ended June 30, 2022 and 2021 totaled $86 thousand and $195 thousand, respectively. Cash payments for financing leases for the years ended June 30, 2022 and 2021 totaled $95 thousand and $12 thousand, respectively.