Astrotech Corporation entered into (1) the Omnibus Amendment to the Secured Promissory Notes with Thomas B. Pickens III, in connection with the Company’s Secured Promissory Note, dated Sept. 5, 2019, in the original aggregate principal amount of $1,500,000 and the Company’s Secured Promissory Note, dated Feb. 13, 2020, in the original aggregate principal amount of $1,000,000 and (2) the Omnibus Amendment to the Security Agreements with certain subsidiaries of the Company signatory thereto and the holder of the Original Notes, in connection with the Security Agreements between the Company, certain subsidiaries of the Company signatory thereto and the holder of the Original Notes, dated as of Sept. 5, 2019 and Feb. 13, 2020, respectively.
Pursuant to the Original Notes and the Original Security Agreements, the principal amount and accrued interest on the Original Notes were due and payable on Sept. 5, 2020. Pursuant to the Amendments, the principal amount and accrued interest on the Amended Notes are due and payable on Sept. 5, 2021.
In addition, the Subsidiaries (as defined in the Subsidiary Guarantee) jointly and severally agreed to guarantee and act as surety for the Company’s obligation to repay the Original Notes pursuant to subsidiary guarantees, dated Sept. 5, 2019 and Feb. 13, 2020, respectively, as amended by the Omnibus Amendments to Subsidiary Guarantees, dated Aug. 24, 2020.
The transaction was approved by the Company’s board of directors and its audit committee.
Astrotech Corporation (NASDAQ: ASTC) is a science and technology development and commercialization company that launches, manages, and builds scalable companies based on innovative technology in order to maximize shareholder value. The Company currently operates two reportable business units, 1st Detect Corporation and Astral Images Corporation, and their efforts are focused on the following: 1st Detect is a manufacturer of explosives and narcotics trace detectors developed for use at airports, secured facilities, and borders worldwide; and Astral is a developer of advanced film restoration and enhancement software.
Astrotech reported a net loss of $7.53 million for the year ended June 30, 2019, compared to a net loss of $13.25 million for the year ended June 30, 2018. As of March 31, 2020, the Company had $7.51 million in total assets, $4.86 million in total liabilities, and $2.65 million in total stockholders’ equity.
Armanino LLP, in San Francisco, California, the Company’s auditor since 2019, issued a “going concern” qualification in its report dated Sept. 30, 2019, citing that the Company has suffered recurring losses from operations and has net cash flows deficiencies that raise substantial doubt about its ability to continue as a going concern.