0001001907
2012-07-01
2013-03-31
0001001907
2013-03-31
0001001907
2012-06-30
0001001907
2013-01-01
2013-03-31
0001001907
2012-01-01
2012-03-31
0001001907
2011-07-01
2012-03-31
0001001907
2011-06-30
0001001907
2012-03-31
0001001907
2010-03-01
2010-03-31
0001001907
astc:FirstDetectControllingInterestMember
2013-03-31
0001001907
astc:AstrogenetixControllingInterestMember
2013-03-31
0001001907
us-gaap:SecuredDebtMember
2012-07-01
2013-03-31
0001001907
us-gaap:SecuredDebtMember
2013-03-31
0001001907
us-gaap:RevolvingCreditFacilityMember
2012-07-01
2013-03-31
0001001907
us-gaap:RevolvingCreditFacilityMember
2013-03-31
0001001907
us-gaap:FairValueInputsLevel2Member
2013-03-31
0001001907
us-gaap:FairValueInputsLevel2Member
2012-06-30
0001001907
us-gaap:GovernmentContractsConcentrationRiskMember
2012-07-01
2013-03-31
0001001907
us-gaap:GovernmentContractsConcentrationRiskMember
2013-03-31
0001001907
us-gaap:GovernmentContractsConcentrationRiskMember
2011-07-01
2012-03-31
0001001907
astc:AsoMember
2012-07-01
2013-03-31
0001001907
astc:AsoMember
2011-07-01
2012-03-31
0001001907
astc:AsoMember
2013-03-31
0001001907
astc:AsoMember
2012-03-31
0001001907
astc:SpacetechMember
2012-07-01
2013-03-31
0001001907
astc:SpacetechMember
2011-07-01
2012-03-31
0001001907
astc:SpacetechMember
2013-03-31
0001001907
astc:SpacetechMember
2012-03-31
0001001907
astc:Astrotech1994PlanMember
2013-03-31
0001001907
astc:AstrotechDirectorsPlanMember
2012-07-01
2013-03-31
0001001907
astc:AstrotechDirectorsPlanMember
2013-03-31
0001001907
astc:Astrotech2008PlanMember
2012-07-01
2013-03-31
0001001907
astc:Astrotech2008PlanMember
2013-03-31
0001001907
astc:Astrotech2011PlanMember
2012-07-01
2013-03-31
0001001907
astc:Astrotech2011PlanMember
2013-03-31
0001001907
astc:FirstDetectStockGrantsMember
2012-07-01
2013-03-31
0001001907
astc:FirstDetect2011StockIncentivePlanMember
2012-07-01
2013-03-31
0001001907
astc:FirstDetect2011StockIncentivePlanMember
2013-03-31
0001001907
astc:AstrogenetixStockGrantsMember
2012-07-01
2013-03-31
0001001907
2012-11-01
2012-11-30
0001001907
2012-11-30
0001001907
astc:AsoMember
2013-01-01
2013-03-31
0001001907
astc:AsoMember
2012-01-01
2012-03-31
0001001907
astc:SpacetechMember
2013-01-01
2013-03-31
0001001907
astc:SpacetechMember
2012-01-01
2012-03-31
0001001907
2013-05-09
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
xbrli:pure
ASTROTECH Corp \WA\
0001001907
10-Q
2013-03-31
false
--06-30
No
No
Yes
Smaller Reporting Company
Q3
2013
8034000
10177000
14994000
15840000
731000
1926000
976000
592000
9741000
12695000
36681000
37270000
36056000
36997000
625000
273000
57000
84000
46479000
50049000
44879000
48867000
1600000
1182000
237000
3033000
3274000
1634000
3011000
2836000
383000
372000
6905000
7875000
5752000
6042000
13014000
13917000
0
0
183782000
183712000
237000
237000
1176000
1582000
-153995000
-151655000
33465000
36132000
46479000
50049000
0
0
2500000
2500000
0
0
0
0
0
0
75000000
75000000
19781721
19134907
311660
311660
14815000
4565000
10013000
18529000
14682000
18351000
133000
178000
4565000
9933000
0
80000
10581000
2550000
6770000
12804000
4234000
2015000
3243000
5725000
5341000
1758000
1814000
5451000
1494000
459000
475000
1979000
6835000
2217000
2289000
7430000
-2601000
-202000
954000
-1705000
-121000
-36000
-69000
-202000
-2722000
-238000
885000
-1907000
14000
1490000
-2736000
-3397000
655000
1840000
-893000
-955000
0
0
5000
17000
-2722000
-238000
880000
-1924000
-382000
-125000
-134000
-486000
-2340000
-113000
1014000
-1438000
16000
815000
0
200000
1552000
1742000
-952000
-725000
325000
975000
1705000
1835000
-968000
598000
936000
385000
-936000
-385000
0
900000
279000
267000
40000
0
-239000
633000
-2143000
846000
188000
200000
-2796000
-3770000
<p style="margin: 0pt"></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>(1) Description of the Company and Liquidity</b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Astrotech Corporation (Nasdaq:
ASTC) (“Astrotech,” “the Company,” “we,” “us” or “our”), a Washington corporation,
is a commercial aerospace company that was formed in 1984 to leverage the environment of space for commercial purposes. For nearly
30 years, the Company has remained a crucial player in space commerce activities. We have supported the launch of 23 shuttle missions
and more than 300 spacecraft; built space hardware and processing facilities; constructed and operated world-class processing
facilities; and prepared and processed scientific research for microgravity.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Our Business Units</i></b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Astrotech Space Operations </i>(“ASO”)</b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><a name="i8"></a>ASO provides
support to its government and commercial customers as they successfully process complex communication, earth observation and deep
space satellites in preparation for their launch on a variety of launch vehicles. Processing activities include satellite ground
transportation; pre-launch hardware integration and testing; satellite encapsulation, fueling, launch pad delivery; and communication
linked launch control. Our ASO facilities can process five meter class satellites accommodating the majority of U.S. based satellites.
ASO’s service capabilities include designing and building spacecraft processing equipment and facilities. In addition, ASO
provides propellant services including designing, building and testing propellant service equipment for fueling spacecraft. ASO
accounted for 99% of our consolidated revenues for the period ended March 31, 2013. Revenue for our ASO business unit is generated
primarily from various fixed-priced contracts with launch service providers in both government and commercial markets and the
design, fabrication and use of critical space launch equipment. The services and facilities we provide to our customers support
the final assembly, checkout, and countdown functions required to launch a spacecraft. The revenue and cash flows generated from
our ASO operations are primarily related to the number of spacecraft launches and the fabrication of the Ground Support Equipment
(“GSE”) for the U.S. Government.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Spacetech</i></b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Our other business unit is a
technology incubator designed to commercialize space-industry technologies. This business unit is currently pursuing two distinct
opportunities:</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>1<sup>st</sup> Detect</b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">1<sup>st</sup> Detect designs,
manufactures and sells miniature mass spectrometer equipment. 1st Detect launched the MMS-1000<sup>TM </sup>during March 2012.
The MMS-1000<sup>TM</sup> is a low power, miniature mass spectrometer device designed initially for the laboratory testing market.
The unique design of this unit is the result of the Company’s work with the National Aeronautics and Space Administration
(“NASA”) on the International Space Station. 1<sup>st</sup> Detect has been awarded a Developmental Testing and Evaluation
designation from the U.S. Department of Homeland Security as a “promising anti-terrorism technology,” and is the recipient
of a Phase I and Phase II award from the U.S. Army’s Chemical and Biological Defense (“CBD”) Small Business Innovation
Research (“SBIR”) Program. Following the successful execution of the Phase I SBIR, 1<sup>st </sup>Detect was awarded
a $0.8 million Phase II SBIR contract from the Joint Science and Technology Office for Chemical and Biological Defense. Additionally,
1<sup>st</sup> Detect received a $1.8 million award from the Texas Emerging Technology Fund in March 2010.</font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">1st Detect has entered into customer
agreements resulting in over $0.8 million research and development funding and is developing relationships with a number of significant
analytical instrument manufacturers and distributors. The target markets for 1st Detect's MMS-1000 and OEM-1000 products are large
and growing and present an opportunity to compete with established vendors. The unique characteristics of 1st Detect's products
allow us to develop and market into emerging markets and opportunities.</font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Astrogenetix</b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Astrogenetix is a biotechnology
company formed to commercialize products developed in the unique environment of microgravity. Astrogenetix pursued an aggressive
space access strategy to take advantage of the Space Shuttle program prior to its retirement in 2011. This strategy gave Astrogenetix
unprecedented access to research in microgravity, as the Company flew experiments twelve times over a three-year period. Astrogenetix
is currently researching a Salmonella vaccine as part of its ongoing commercialization strategy. Concurrently, Astrogenetix is
evaluating a vaccine target for MRSA based on discoveries made in microgravity. In December 2011, the Company negotiated a Space
Act Agreement with NASA for a minimum of twenty-eight future space flights.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0"></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Liquidity and Capital Resources</b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Our future capital requirements
will depend on a number of factors, including our success in developing and expanding markets for our products, payments under
possible future strategic arrangements, continued progress of our research and development of potential products, the need to
acquire licenses to new technology, costs associated with increasing our manufacturing and development facilities, costs associated
with strategic acquisitions including integration costs and assumed liabilities, litigation expense, the status of competitive
products and potential cost associated with both protecting and defending our intellectual property. Additionally, actions taken
as a result of the ongoing internal evaluation of our business could result in expenditures not currently contemplated in our
estimates for 2013. We believe, however, that our existing cash and cash equivalents are sufficient to fund our operating expenses,
capital equipment requirements and other expected liquidity requirements for the coming twelve months. Factors that could affect
our capital requirements, in addition to those listed above include continued collections of accounts receivable consistent with
our historical experience, uncertainty surrounding mission launch schedules, and our ability to manage product development efforts.</font></p>
<p style="margin: 0pt"></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Basis of Presentation</b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The accompanying unaudited condensed
consolidated financial statements have been prepared by Astrotech Corporation in accordance with United States generally accepted
accounting principles (“GAAP”) for interim financial information and the rules and regulations of the Securities and
Exchange Commission. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial
statements. In the opinion of management, all adjustments (consisting of normal recurring entries) considered necessary for a
fair presentation have been included. Operating results for the nine months ended March 31, 2013 are not necessarily indicative
of the results that may be expected for the year ending June 30, 2013. These financial statements should be read in conjunction
with the financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended June 30,
2012.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Net Income (Loss) per Share</b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Basic net income (loss) per share
is computed on the basis of the weighted average number of shares of common stock outstanding during the period. Diluted net loss
per share is computed on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential
common shares outstanding during the period using the treasury stock method and the if-converted method. Dilutive potential common
shares include outstanding stock options and shared-based awards.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b> Revenue Recognition</b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Astrotech recognizes revenue
employing several generally accepted revenue recognition methodologies across its business units. The methodology used is based
on contract type and the manner in which products and services are provided.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Revenue generated by Astrotech’s
payload processing facilities is recognized ratably over the occupancy period of the satellite while in the Astrotech facilities.
The percentage-of-completion method is used for all contracts where incurred costs can be reasonably estimated and successful
completion can be reasonably assured at inception. Changes in estimated costs to complete and provisions for contract losses are
recognized in the period they become known. Revenue for the sale of commercial products is recognized at shipment.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>A Summary of Revenue Recognition Methods</b></font></p>
<p style="margin: 0"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; margin-top: 0px; font-size: 9.5pt">
<tr style="font-size: 1pt">
<td style="width: 25%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 4%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 25%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 4%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 42%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td style="border-bottom: #000000 1px solid; vertical-align: top; font-size: 8.5pt"><font style="font: 10pt Times New Roman, Times, Serif"><b>Services/Products
Provided</b></font></td>
<td style="vertical-align: top; font-size: 8.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; vertical-align: top; font-size: 8.5pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Contract
Type</b></font></td>
<td style="vertical-align: top; font-size: 8.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; vertical-align: top; font-size: 8.5pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Method
of Revenue Recognition</b></font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif">Payload Processing Facilities</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">Firm Fixed Price — Mission Specific</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><p style="font-size: 9.5pt; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Ratably, over the occupancy
period of a satellite</font></p>
<p style="font-size: 9.5pt; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">within the facility from
arrival through launch</font></p></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif">Construction Contracts</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">Firm Fixed Price</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">Percentage-of-completion based on costs incurred</font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif">Engineering Services</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><p style="font-size: 9.5pt; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Cost Reimbursable</font></p>
<p style="font-size: 9.5pt; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Award/Fixed Fee</font></p></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">Reimbursable costs incurred plus award/fixed fee</font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif">Commercial Products</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><p style="font-size: 9.5pt; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Specific Purchase</font></p>
<p style="font-size: 9.5pt; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Order Based</font></p></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">At shipment</font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif">Grant</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><p style="font-size: 9.5pt; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Cost Reimbursable</font></p>
<p style="font-size: 9.5pt; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Award</font></p></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><p style="font-size: 9.5pt; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">As costs are incurred for
related research and</font></p>
<p style="font-size: 9.5pt; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">development expenses</font></p></td></tr>
</table>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0"></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Under certain contracts, we make
expenditures for specific enhancements and/or additions to our facilities where the customer agrees to pay a fixed fee to deliver
the enhancement or addition. We account for such agreements as a reduction in the cost of such investments and recognize any excess
of amounts collected above the expenditure as revenue.</font></p>
<p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif"><b>Fair Value Measurement</b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The accounting standard for fair
value measurements defines fair value, establishes a market-based framework or hierarchy for measuring fair value, and expands
disclosures about fair value measurements. The standard is applicable whenever assets and liabilities are measured and included
in the financial statements at fair value.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The fair value hierarchy established
in the standard prioritizes the inputs used in valuation techniques into three levels as follows:</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Level 1—Quoted prices in active markets for
identical assets or liabilities.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Level 2—Inputs other than
Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices
in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially
the full term of the assets or liabilities.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Level 3—Unobservable inputs
that are supported by little or no market activity and are significant to the fair value of the assets or liabilities.</font></p>
<p style="margin: 0pt"></p>
23 projects
More than 300 spacecraft
0.99
0.64
0.65
800000
1800000
<p style="margin: 0pt"></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>(2) Basis of Presentation</b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The accompanying unaudited condensed
consolidated financial statements have been prepared by Astrotech Corporation in accordance with United States generally accepted
accounting principles (“GAAP”) for interim financial information and the rules and regulations of the Securities and
Exchange Commission. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial
statements. In the opinion of management, all adjustments (consisting of normal recurring entries) considered necessary for a
fair presentation have been included. Operating results for the nine months ended March 31, 2013 are not necessarily indicative
of the results that may be expected for the year ending June 30, 2013. These financial statements should be read in conjunction
with the financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended June 30,
2012.</font></p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>(3) Noncontrolling Interest</b></font></p>
<p style="margin: 0"></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">In January 2010, restricted shares
of Astrotech subsidiaries, 1<sup>st </sup>Detect and Astrogenetix, were granted to certain employees, directors and officers,
resulting in Astrotech owning less than 100% of the subsidiaries. The Company applied noncontrolling interest accounting for the
period ended March 31, 2013, which requires us to clearly identify the noncontrolling interest in the balance sheets and income
statements. We disclose three measures of net income (loss): net loss, net loss attributable to noncontrolling interest, and net
loss attributable to Astrotech Corporation. Our operating cash flows in our consolidated statements of cash flows reflect net
loss: while our basic and diluted net loss per share calculations reflect net loss attributable to Astrotech Corporation.</font></p>
<p style="margin: 0"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; margin-top: 0px; font-size: 9pt">
<tr style="font-size: 1pt">
<td style="width: 86%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 13%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td style="vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; vertical-align: bottom; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>(In
thousands)</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Beginning balance at June 30, 2012</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>2,730 </b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-indent: 12px"><font style="font: 10pt Times New Roman, Times, Serif">Net loss attributable to noncontrolling
interest</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(382)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td style="text-indent: 12px"><font style="font: 10pt Times New Roman, Times, Serif">Capital contribution</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">390 </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-indent: 12px"><font style="font: 10pt Times New Roman, Times, Serif">Stock based compensation</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1 </font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Ending balance at March 31, 2013</b></font></td>
<td style="border-bottom: #000000 3px double; border-top: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td>
<td style="border-bottom: #000000 3px double; border-top: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2,739 </font></td></tr>
</table>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">As of March 31, 2013, the Company’s
share of income and losses is 86% for 1<sup>st </sup>Detect and 84% for Astrogenetix.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"></p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; margin-top: 0px; font-size: 9pt">
<tr style="font-size: 1pt">
<td style="width: 86%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 13%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td style="vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; vertical-align: bottom; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>(In
thousands)</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Beginning balance at June 30, 2012</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>2,730 </b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-indent: 12px"><font style="font: 10pt Times New Roman, Times, Serif">Net loss attributable to noncontrolling
interest</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(382)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td style="text-indent: 12px"><font style="font: 10pt Times New Roman, Times, Serif">Capital contribution</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">390 </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-indent: 12px"><font style="font: 10pt Times New Roman, Times, Serif">Stock based compensation</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1 </font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Ending balance at March 31, 2013</b></font></td>
<td style="border-bottom: #000000 3px double; border-top: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td>
<td style="border-bottom: #000000 3px double; border-top: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2,739 </font></td></tr>
</table>
0.86
0.84
<p style="margin: 0pt"></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>(4) Net Income (Loss) per Share</b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Basic net income (loss) per share
is computed on the basis of the weighted average number of shares of common stock outstanding during the period. Diluted net loss
per share is computed on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential
common shares outstanding during the period using the treasury stock method and the if-converted method. Dilutive potential common
shares include outstanding stock options and shared-based awards. Reconciliation and the components of basic and diluted net loss
per share are as follows (in thousands, except per share data):</font></p>
<p style="margin: 0"></p>
<table cellspacing="0" cellpadding="0" style="margin-top: 0px; font-size: 9pt; width: 100%">
<tr style="font-size: 1pt">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 6px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 63px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 6px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 6px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 65px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 6px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 6px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 63px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 6px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 6px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 65px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td style="vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="5" style="border-bottom: #000000 1px solid; vertical-align: bottom"><p style="font-size: 8pt; text-align: center; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Three
Months Ended</b></font></p>
<p style="font-size: 8pt; text-align: center; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>March
31,</b></font></p></td>
<td style="vertical-align: bottom; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="5" style="border-bottom: #000000 1px solid; vertical-align: bottom"><p style="font-size: 8pt; text-align: center; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Nine
Months Ended</b></font></p>
<p style="font-size: 8pt; text-align: center; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>March
31,</b></font></p></td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; font-size: 8pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>2013</b></font></td>
<td style="font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; font-size: 8pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td style="font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; font-size: 8pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>2013</b></font></td>
<td style="font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; font-size: 8pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>2012</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Numerator:</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif">Net income (loss) attributable to Astrotech Corporation, basic
and diluted</font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(113)</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,014 </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(2,340)</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(1,438)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Denominator:</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td><font style="font: 10pt Times New Roman, Times, Serif">Denominator for basic net loss per share attributable to Astrotech
Corporation — weighted average common stock outstanding</font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">19,463 </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">18,764 </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">19,279 </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">18,448 </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td><font style="font: 10pt Times New Roman, Times, Serif">Dilutive common stock equivalents — common stock options and
share-based awards</font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">— </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">388 </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">— </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">— </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td><font style="font: 10pt Times New Roman, Times, Serif">Denominator for diluted net loss per share attributable to Astrotech
Corporation — weighted average common stock outstanding and dilutive common stock equivalents</font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">19,463 </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">19,152 </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">19,279 </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">18,448 </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td><font style="font: 10pt Times New Roman, Times, Serif">Basic net loss per share attributable to Astrotech Corporation</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(0.01)</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">0.05 </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(0.12)</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(0.08)</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif">Diluted net loss per share attributable to Astrotech Corporation</font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(0.01)</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">0.05 </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(0.12)</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(0.08)</font></td></tr>
</table>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Options to purchase 1,147,850
shares of common stock at exercise prices ranging from $0.30 to $24.10 per share outstanding for the three and nine months ended
as of March 31, 2013 and 2012 respectively were not included in diluted net loss per share, as the impact to net loss per share
is anti-dilutive. Options to purchase 794,100 shares of common stock at exercise prices ranging from $0.71 to $24.10 per share
outstanding, for the three months ended March 31, 2012, were not included in diluted net income (loss) per share, as the impact
to net income (loss) per share is anti-dilutive. Options to purchase 1,147,850 shares of common stock at exercise prices ranging
from $0.30 to $24.10 per share outstanding, for the nine months ended March 31, 2012, were not included in diluted net income
(loss) per share, as the impact to net income (loss) per share is anti-dilutive.</font></p>
<table cellspacing="0" cellpadding="0" style="margin-top: 0px; font-size: 9pt; width: 100%">
<tr style="font-size: 1pt">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 6px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 63px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 6px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 6px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 65px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 6px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 6px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 63px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 6px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 6px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 65px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td style="vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="5" style="border-bottom: #000000 1px solid; vertical-align: bottom"><p style="font-size: 8pt; text-align: center; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Three
Months Ended</b></font></p>
<p style="font-size: 8pt; text-align: center; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>March
31,</b></font></p></td>
<td style="vertical-align: bottom; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="5" style="border-bottom: #000000 1px solid; vertical-align: bottom"><p style="font-size: 8pt; text-align: center; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Nine
Months Ended</b></font></p>
<p style="font-size: 8pt; text-align: center; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>March
31,</b></font></p></td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; font-size: 8pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>2013</b></font></td>
<td style="font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; font-size: 8pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td style="font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; font-size: 8pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>2013</b></font></td>
<td style="font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; font-size: 8pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>2012</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Numerator:</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif">Net income (loss) attributable to Astrotech Corporation, basic
and diluted</font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(113)</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,014</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(2,340)</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(1,438)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Denominator:</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td><font style="font: 10pt Times New Roman, Times, Serif">Denominator for basic net loss per share attributable to Astrotech
Corporation — weighted average common stock outstanding</font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">19,463 </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">18,764</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">19,279 </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">18,448 </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td><font style="font: 10pt Times New Roman, Times, Serif">Dilutive common stock equivalents — common stock options and
share-based awards</font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">— </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">388</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">— </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">— </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td><font style="font: 10pt Times New Roman, Times, Serif">Denominator for diluted net loss per share attributable to Astrotech
Corporation — weighted average common stock outstanding and dilutive common stock equivalents</font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">19,463 </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">19,152</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">19,279 </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">18,448 </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td><font style="font: 10pt Times New Roman, Times, Serif">Basic net loss per share attributable to Astrotech Corporation</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(0.01)</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">0.05</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(0.12)</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(0.08)</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif">Diluted net loss per share attributable to Astrotech Corporation</font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(0.01)</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">0.05</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(0.12)</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(0.08)</font></td></tr>
</table>
1147850
794100
0.30
0.71
24.10
24.10
<p style="margin: 0pt"></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>(5) Revenue Recognition</b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Astrotech recognizes revenue
employing several generally accepted revenue recognition methodologies across its business units. The methodology used is based
on contract type and the manner in which products and services are provided.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Revenue generated by Astrotech’s
payload processing facilities is recognized ratably over the occupancy period of the satellite while in the Astrotech facilities.
The percentage-of-completion method is used for all contracts where incurred costs can be reasonably estimated and successful
completion can be reasonably assured at inception. Changes in estimated costs to complete and provisions for contract losses are
recognized in the period they become known. Revenue for the sale of commercial products is recognized at shipment.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>A Summary of Revenue Recognition Methods</b></font></p>
<p style="margin: 0"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; margin-top: 0px; font-size: 9.5pt">
<tr style="font-size: 1pt">
<td style="width: 25%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 4%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 25%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 4%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 42%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td style="border-bottom: #000000 1px solid; vertical-align: top; font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>Services/Products
Provided</b></font></td>
<td style="vertical-align: top; font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: #000000 1px solid; vertical-align: top; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Contract
Type</b></font></td>
<td style="vertical-align: top; font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: #000000 1px solid; vertical-align: top; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Method
of Revenue Recognition</b></font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif">Payload Processing Facilities</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">Firm Fixed Price — Mission Specific</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><p style="font-size: 9.5pt; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Ratably, over the occupancy
period of a satellite</font></p>
<p style="font-size: 9.5pt; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">within the facility from
arrival through launch</font></p></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif">Construction Contracts</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">Firm Fixed Price</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">Percentage-of-completion based on costs incurred</font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif">Engineering Services</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><p style="font-size: 9.5pt; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Cost Reimbursable</font></p>
<p style="font-size: 9.5pt; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Award/Fixed Fee</font></p></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">Reimbursable costs incurred plus award/fixed fee</font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif">Commercial Products</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><p style="font-size: 9.5pt; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Specific Purchase</font></p>
<p style="font-size: 9.5pt; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Order Based</font></p></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">At shipment</font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif">Grant</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><p style="font-size: 9.5pt; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Cost Reimbursable</font></p>
<p style="font-size: 9.5pt; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Award</font></p></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><p style="font-size: 9.5pt; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">As costs are incurred for
related research and</font></p>
<p style="font-size: 9.5pt; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">development expenses</font></p></td></tr>
</table>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Under certain contracts, we make expenditures for
specific enhancements and/or additions to our facilities where the customer agrees to pay a fixed fee to deliver the enhancement
or addition. We account for such agreements as a reduction in the cost of such investments and recognize any excess of amounts
collected above the expenditure as revenue.</font></p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>(6) Debt</b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Credit Facilities</i></b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">In October 2010, we entered into
a financing facility with a commercial bank providing a $7.0 million term loan note and a $3.0 million revolving credit facility.
The $7.0 million term loan terminates in October 2015, and the $3.0 million revolving credit facility expired in October 2012.
The Company had no outstanding balance on the revolving credit facility. The term loan requires monthly payments of principal
plus interest at the rate of prime plus 0.25%, but not less than 4.0%. The revolving credit facility allowed multiple advances
not to exceed $3.0 million, based on eligible accounts receivable, and incurred interest at the rate of prime plus 0.25%, but
not less than 4.0%. The bank financing facilities are secured by the assets of ASO, including accounts receivable, and require
us to comply with designated covenants. The balance of the $7.0 million term loan at March 31, 2013 was $6.1 million. In October
2012 the Company's $3.0 million revolving credit facility expired. The Company had no outstanding balance on the revolving credit
facility. The Company was in compliance with all covenants as of March 31, 2013.</font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The bank financing
facilities contain certain affirmative and negative covenants with which we must comply, including the maintenance by us of a
debt service coverage ratio of 1.00 to 1.00. As of March 31, 2013, we were not in compliance with the debt service coverage
ratio; however, we have received a waiver from the bank.</font></p>
2010-10-31
2010-10-31
2015-10-31
2012-10-31
7000000
3000000
Term loan requires monthly payments of principal plus interest. Secured by the assets of ASO, including accounts receivable and require us to comply with designated covenants.
Allowed multiple advances not to exceed $3,000,000 based on eligible accounts receivable and incurred interest. Secured by the assets of ASO, including accounts receivable and require us to comply with designated covenants.
Prime plus 0.25%, but not less than 4.0%
Prime plus 0.25%, but not less that 4.0%
6100000
0
The Company was in compliance with all covenants as of March 31, 2013.
The Company was in compliance with all covenants as of March 31, 2013.
<p style="margin: 0pt"></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>(7) Fair Value Measurement</b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The accounting standard for fair
value measurements defines fair value, establishes a market-based framework or hierarchy for measuring fair value, and expands
disclosures about fair value measurements. The standard is applicable whenever assets and liabilities are measured and included
in the financial statements at fair value.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The fair value hierarchy established
in the standard prioritizes the inputs used in valuation techniques into three levels as follows:</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Level 1—Quoted prices in active markets for identical
assets or liabilities.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Level 2—Inputs other than
Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices
in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially
the full term of the assets or liabilities.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Level 3—Unobservable inputs
that are supported by little or no market activity and are significant to the fair value of the assets or liabilities.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The following table presents
the carrying amounts, estimated fair values and valuation input levels of certain of the Company’s financial instruments
as of March 31, 2013 and June 30, 2012 (in thousands):</font></p>
<p style="margin: 0"></p>
<table cellspacing="0" cellpadding="0" style="margin-top: 0px; font-size: 8.5pt; width: 100%">
<tr style="font-size: 1pt">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 7px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 59px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 6px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 7px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 59px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 6px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 7px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 59px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 6px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 7px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 59px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 6px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 72px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td style="vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="5" style="border-bottom: #000000 1px solid; vertical-align: bottom; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>March
31, 2013</b></font></td>
<td style="vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="5" style="border-bottom: #000000 1px solid; vertical-align: bottom; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>June
30, 2012</b></font></td>
<td style="vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Carrying</b></font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Fair</b></font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Carrying</b></font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Fair</b></font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Valuation</b></font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Amount</b></font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Value</b></font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Amount</b></font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Value</b></font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: #000000 1px solid; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Inputs</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td style="font-size: 9pt"><font style="font: 10pt Times New Roman, Times, Serif">Debt</font></td>
<td style="border-bottom: #000000 1px solid; font-size: 9pt"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; font-size: 9pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">6,135</font></td>
<td style="font-size: 9pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; font-size: 9pt"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; font-size: 9pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">6,135</font></td>
<td style="font-size: 9pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; font-size: 9pt"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; font-size: 9pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">6,414</font></td>
<td style="font-size: 9pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; font-size: 9pt"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; font-size: 9pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">6,414</font></td>
<td style="font-size: 9pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 9pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Level 2</font></td></tr>
</table>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The carrying value of the Company’s debt at March
31, 2013 approximates fair value based on rates available for similar debt available to comparable companies in the marketplace.
The carrying amounts of cash and cash equivalents, accounts receivable, notes receivable and accounts payable approximate their
fair market value due to the relatively short duration of these instruments.</font></p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="margin-top: 0px; font-size: 8.5pt; width: 100%">
<tr style="font-size: 1pt">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 7px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 59px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 6px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 7px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 59px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 6px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 7px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 59px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 6px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 7px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 59px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 6px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 72px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td style="vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="5" style="border-bottom: #000000 1px solid; vertical-align: bottom; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>March
31, 2013</b></font></td>
<td style="vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="5" style="border-bottom: #000000 1px solid; vertical-align: bottom; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>June
30, 2012</b></font></td>
<td style="vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Carrying</b></font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Fair</b></font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Carrying</b></font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Fair</b></font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Valuation</b></font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Amount</b></font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Value</b></font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Amount</b></font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Value</b></font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: #000000 1px solid; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Inputs</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td style="font-size: 9pt"><font style="font: 10pt Times New Roman, Times, Serif">Debt</font></td>
<td style="border-bottom: #000000 1px solid; font-size: 9pt"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; font-size: 9pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">6,135</font></td>
<td style="font-size: 9pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; font-size: 9pt"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; font-size: 9pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">6,135</font></td>
<td style="font-size: 9pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; font-size: 9pt"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; font-size: 9pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">6,414</font></td>
<td style="font-size: 9pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid; font-size: 9pt"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; font-size: 9pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">6,414</font></td>
<td style="font-size: 9pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 9pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Level 2</font></td></tr>
</table>
6135000
6414000
6135000
6414000
<p style="margin: 0pt"></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>(8) Business and Credit Risk Concentration</b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">A substantial portion of our
revenue has been generated under contracts with the U.S. Government. During the nine months ended March 31, 2013 and 2012, approximately
64% and 65%, respectively, of our revenues were generated under U.S. Government contracts. Accounts receivable totaled $0.7 million
at March 31, 2013, of which 27% was attributable to the U.S. Government.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The Company maintains funds in
bank accounts that may exceed the limit insured by the Federal Deposit Insurance Corporation, or “FDIC.” In October
2008, the FDIC increased its insurance to $250,000 per depositor, and to an unlimited amount for non-interest bearing accounts.
The risk of loss attributable to these uninsured balances is mitigated by depositing funds in what we believe to be high credit
quality financial institutions. The Company has not experienced any losses in such accounts.</font></p>
<p style="margin: 0pt"></p>
700000
0.27
<p style="margin: 0pt"></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>(9) Segment Information</b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Management’s primary financial
and operating reviews focus on ASO, the core business unit. All intercompany transactions between business units have been eliminated
in consolidation.</font></p>
<p style="margin: 0"> </p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Key financial metrics for the three months ended March
31, 2013 and 2012 are as follows (in thousands):</font></p>
<p style="margin: 0"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; margin-top: 0px; font-size: 9pt">
<tr style="font-size: 1pt">
<td style="width: 39%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 3%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 13%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 14%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td style="vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="5" style="vertical-align: bottom; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Three
Months Ended</b></font></td>
<td style="vertical-align: bottom; font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="5" style="vertical-align: bottom; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Three
Months Ended</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="5" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>March
31, 2013</b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="5" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>March
31, 2012</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Income
(loss) before</b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Income
(loss) before</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: #000000 1px solid; font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>Revenue
and Income</b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Revenue</b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>income
taxes</b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Revenue</b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>income
taxes</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>ASO</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">4,565</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">655 </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">9,933</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,840 </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Spacetech</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(893)</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">80</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(955)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">4,565</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(238)</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">10,013</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(885)</font></td></tr>
</table>
<p style="margin: 0"> </p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Key financial metrics for the nine months ended March
31, 2013 and 2012 are as follows (in thousands):</font></p>
<p style="margin: 0"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; margin-top: 0px; font-size: 9pt">
<tr style="font-size: 1pt">
<td style="width: 39%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 3%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 13%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 14%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td style="vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="5" style="vertical-align: bottom; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Nine
Months Ended</b></font></td>
<td style="vertical-align: bottom; font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="5" style="vertical-align: bottom; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Nine
Months Ended</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="5" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>March
31, 2013</b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="5" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>March
31, 2012</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Income
(loss) before</b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Income
(loss) before</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: #000000 1px solid; font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>Revenue
and Income</b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Revenue</b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>income
taxes</b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Revenue</b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>income
taxes</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>ASO</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">14,682</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">14 </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">18,351</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,490 </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Spacetech</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">133</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(2,736)</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">178</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(3,397)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">14,815</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(2,722)</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">18,529</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(1,907)</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Key financial metrics for the balance sheet are as
follows (in thousands):</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; margin-top: 0px; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="5" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>March
31, 2013</b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="5" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>June
30, 2012</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: #000000 1px solid; font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>Assets</b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid"><p style="font-size: 8.5pt; text-align: center; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Fixed</b></font></p>
<p style="font-size: 8.5pt; text-align: center; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Assets,
net</b></font></p></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Total
Assets</b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid"><p style="font-size: 8.5pt; text-align: center; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Fixed</b></font></p>
<p style="font-size: 8.5pt; text-align: center; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Assets,
net</b></font></p></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Total
Assets</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td style="width: 39%"><font style="font: 10pt Times New Roman, Times, Serif"><b>ASO</b></font></td>
<td style="width: 3%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; width: 12%"><font style="font: 10pt Times New Roman, Times, Serif">36,056</font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; width: 13%"><font style="font: 10pt Times New Roman, Times, Serif">44,879 </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; width: 12%"><font style="font: 10pt Times New Roman, Times, Serif">36,997</font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; width: 14%"><font style="font: 10pt Times New Roman, Times, Serif">48,867 </font> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Spacetech</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">625</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,600 </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">273</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,182 </font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">36,681</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">46,479 </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">37,270</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">50,049 </font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; margin-top: 0px; font-size: 9pt">
<tr style="font-size: 1pt">
<td style="width: 39%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 3%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 13%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 14%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td style="vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="5" style="vertical-align: bottom; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Three
Months Ended</b></font></td>
<td style="vertical-align: bottom; font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="5" style="vertical-align: bottom; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Three
Months Ended</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="5" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>March
31, 2013</b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="5" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>March
31, 2012</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Income
(loss) before</b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Income
(loss) before</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: #000000 1px solid; font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>Revenue
and Income</b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Revenue</b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>income
taxes</b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Revenue</b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>income
taxes</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>ASO</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">4,565</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">655 </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">9,933</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,840 </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Spacetech</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(893)</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">80</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(955)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">4,565</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(238)</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">10,013</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(885)</font></td></tr>
</table>
<p style="margin: 0"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; margin-top: 0px; font-size: 9pt">
<tr style="font-size: 1pt">
<td style="width: 39%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 3%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 13%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 14%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td style="vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="5" style="vertical-align: bottom; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Nine
Months Ended</b></font></td>
<td style="vertical-align: bottom; font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="5" style="vertical-align: bottom; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Nine
Months Ended</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="5" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>March
31, 2013</b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="5" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>March
31, 2012</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Income
(loss) before</b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Income
(loss) before</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: #000000 1px solid; font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>Revenue
and Income</b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Revenue</b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>income
taxes</b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Revenue</b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>income
taxes</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>ASO</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">14,682</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">14 </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">18,351</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,490 </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Spacetech</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">133</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(2,736)</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">178</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(3,397)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">14,815</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(2,722)</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">18,529</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(1,907)</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="5" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>March
31, 2013</b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="5" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>June
30, 2012</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: #000000 1px solid; font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>Assets</b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid"><p style="font-size: 8.5pt; text-align: center; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Fixed</b></font></p>
<p style="font-size: 8.5pt; text-align: center; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Assets,
net</b></font></p></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Total
Assets</b></font></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid"><p style="font-size: 8.5pt; text-align: center; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Fixed</b></font></p>
<p style="font-size: 8.5pt; text-align: center; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif"><b>Assets,
net</b></font></p></td>
<td style="font-size: 8.5pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: #000000 1px solid; font-size: 8.5pt; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"><b>Total
Assets</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>ASO</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">36,056</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">44,879</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">36,997</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">48,867</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Spacetech</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">625</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,600</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">273</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,182</font></td></tr>
<tr style="vertical-align: bottom; background-color: #f3f3f3">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">36,681</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">46,479</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">37,270</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">50,049</font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>(10) State of Texas Funding</b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">In March 2010, the Texas Emerging
Technology Fund awarded 1<sup>st </sup>Detect $1.8 million for the development and marketing of the Miniature Chemical Detector,
a portable mass spectrometer designed to serve the security, healthcare and industrial markets. In exchange for the award, 1<sup>st
</sup>Detect granted a common stock purchase right and a note payable to the State of Texas. As of March 31, 2013, 1<sup>st </sup>Detect
has received $1.8 million in disbursements. The proceeds from the award can only be used to fund development of the Miniature
Chemical Detector at 1<sup>st</sup> Detect, not for repaying existing debt or for use in other Company subsidiaries.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The common stock purchase right
is exercisable at the first Qualifying Financing Event (“QFE”), which is essentially a change in control or third party
equity investment in 1<sup>st</sup> Detect. The number of shares available to the State of Texas, at the price of par value, is
calculated as the total disbursements (numerator) divided by the stock price established in the QFE (denominator). If the first
QFE does not occur within 18 months of the agreement’s effective date, which has been extended to March 31, 2013 as a result
of recent extensions granted by the State of Texas, the number of shares available for purchase will equal the total disbursements
(numerator) divided by $100 (denominator). As of March 31, 2013 no QFE has occurred.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The note equals the disbursements
to 1<sup>st</sup> Detect to date, accrues interest at 8% per year and cancels automatically at the earlier of (1) selling substantially
all of the assets of 1<sup>st</sup> Detect, (2) selling more than 50% of common stock of 1<sup>st</sup> Detect or (3) March 2020.
No payments of interest or principal are due on the note unless there is a default, which would occur if 1<sup>st</sup> Detect
moves its operations or headquarters outside of Texas at any time before March 2020. 1<sup>st</sup> Detect has the option to pay
back the principal plus accrued interest by March 31, 2013, but repayment does not cancel the State of Texas’ common stock
purchase right.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Management considers the likelihood
of voluntarily repaying the note or of a default event as remote due to the fact that the covenants that would necessitate repayment
are within the control of the Company. As such, the $1.8 million, which was received in two installments of $0.9 million and $0.9
million prior to the period ended March 31, 2013, was accounted for as a contribution to equity. As of March 31, 2013, no default
events have occurred.</font></p>
<p style="margin: 0pt"></p>
In March 2010, the Texas Emerging Technology Fund awarded 1st Detect $1.8 million for the development and marketing of the Miniature Chemical Detector, a portable mass spectrometer designed to serve the security, healthcare and industrial markets. In exchange for the award, 1st Detect granted a common stock purchase right and a note payable to the State of Texas. The common stock purchase right is exercisable at the first Qualifying Financing Event ("QFE"). The shares available to the State of Texas is calculated as the total disbursements divided by the stock price established in the QFE. If the first QFE does not occur within 18 months of the agreement's effective date, which was extended to March 31, 2013, the number of shares available for purchase will equal the total disbursements divided by $100.
1800000
0.08
<p style="margin: 0pt"></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>(11) Equity and Other Long Term Incentive Plans</b></font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>The 1994 Plan (“1994
Plan”)</i></b></font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Under the terms of the 1994 Plan,
the number and price of the stock incentive awards granted to employees is determined by the Board of Directors and such grants
vest, in most cases, incrementally over a period of four years and expire no more than ten years after the date of grant. At the
time of approval, 395,000 shares of our common stock were reserved for issuance under this plan. As of March 31, 2013, there are
no shares available for grant. Based on the Articles of the 1994 stock incentive plan, no awards shall be granted more than ten
years after the effective date of the plan unless amended.</font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>The Directors’ Stock
Option Plan (“Director’s Plan”)</i></b></font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Options under the Director’s
Plan vest after one year and expire seven years from the date of grant. At the time of approval, 50,000 shares of our common stock
were reserved for issuance under this plan. As of March 31, 2013, there are 41,500 shares available for future grant.</font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin-top: 0; margin-bottom: 11px"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>2008
Stock Incentive Plan (“2008 Plan”)</i></b></font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The 2008 Plan was created to
promote growth of the Company by aligning the long-term financial success of the Company with the employees, consultants and directors.
At the time of approval, 5,500,000 shares of our common stock were reserved for issuance under this plan. The 2008 Plan, administered
by the Compensation Committee of the Board of Directors, provides for granting of incentive awards in the form of stock options,
stock appreciation rights (SARs) and restricted stock to employees, directors and consultants of the Company. Stock options awarded
will vest upon the Company’s stock achieving a closing price of $1.50 and expire ten years from grant date or upon employee
or director termination. Restricted shares awarded will vest 33.33% a year over a three year period and expire upon employee or
director termination. There have been no SARs granted from the 2008 Plan. As of March 31, 2013, there are 342,501 shares available
for grant under the 2008 Plan.</font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>2011 Stock Incentive Plan
(“2011 Plan”)</i></b></font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The 2011 Plan was designed to
increase shareholder value by compensating employees over the long term. The plan is to be used to promote long-term financial
success and execution of our business strategy. At the time of approval, 1,750,000 shares of our common stock were reserved for
issuance under this plan. The 2011 Plan, administered by the Compensation Committee of the Board of Directors, provides for granting
of incentive awards in the form of stock options, stock appreciation rights (SARs) and restricted stock to employees, directors
and consultants of the Company. Stock options awarded will vest upon the Company’s stock achieving a closing price of $1.50
and expire ten years from the grant date or upon employee or director termination. Additionally, a single 200,000 stock option
grant was awarded to a third party consultant intended to provide incentive which is aligned with management and the shareholders.
Vesting for these option shares will occur once certain performance conditions have been fulfilled. There have been no SARs or
restricted stock granted from the 2011 Plan. As of March 31, 2013, there are 1,056,000 shares available for grant under the 2011
Plan.</font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">At March 31, 2013, 1,440,001
shares of Common Stock were reserved for future grants of stock incentive grants under the Company’s four stock incentive
plans.</font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>1<sup>st </sup></i></b>Detect</font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">On January 19, 2010, an independent
committee of the Board of Directors of 1<sup>st</sup> Detect, a subsidiary of the Company, approved a grant of 1,180 restricted
stock shares and 1,820 stock purchase warrants to certain officers, directors and employees of 1<sup>st</sup> Detect, of which
75 and 45, respectively, have subsequently been cancelled. The awards vest 50% a year over a two-year period. The restricted stock
awards are equal to the fair market value of 1<sup>st </sup>Detect’s common stock on the date of grant as determined by an
independent valuation firm. The Company utilized the Black-Scholes methodology in determining the fair market value of the warrants.</font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>1<sup>st </sup></i></b>Detect
2011 Stock Incentive Plan</font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The 2011 Plan was designed to
increase shareholder value by compensating employees over the long term. The plan is to be used to promote long-term financial
success and execution of our business strategy. At the time of approval, 2,500 shares of 1<sup>st</sup> Detect stock were reserved
for issuance under this plan. The 2011 Plan, administered by the Board of Directors of 1<sup>st</sup> Detect, provides for granting
of incentive awards in the form of stock options to certain directors, officers and employees of 1<sup>st</sup> Detect. The awards
vest upon certain performance conditions being met and expire ten years from the grant date. The stock options have an exercise
price equal to the fair market value of 1<sup>st</sup> Detect’s common stock on the date of grant as determined by an independent
valuation firm. As of March 31, 2013, there are 1,775 shares available for grant under the 2011 Plan.</font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Astrogenetix</i></b></font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">On January 19, 2010, an independent
committee of the Board of Directors of Astrogenetix, a subsidiary of the Company, approved a grant of 1,550 restricted stock shares
and 2,050 stock purchase warrants to certain officers, directors and employees of Astrogenetix, of which 375 and 50 have subsequently
been cancelled. The awards vested 50% a year over a two-year period. The restricted stock awards are equal to the fair market value
of Astrogentix’s common stock on the date of grant as determined by an independent valuation firm. The Company utilized the
Black-Scholes methodology in determining the fair market value of the warrants.</font></p>
<p style="margin: 0pt"></p>
Vest after one year and expire seven years from the date of grant
Vest upon the Company’s stock achieving a closing price of $1.50 and expire ten years from grant date or upon employee or director termination
Vest upon the Company’s stock achieving a closing price of $1.50 and expire ten years from the grant date or upon employee or director termination. Vesting for the 200,000 stock option grant will occur once certain performance conditions have been fulfilled.
Vest 50% a year over a two year period
Vest upon certain performance conditions being met and expire ten years from the grant date
Vest 50% a year over a two year period
50000
5500000
1750000
2500
Vest 33.33% a year over a three year period and expire upon employee or director termination
395000
41500
342501
1056000
1775
200000
1820
2050
1180
1550
45
50
75
375
<p style="margin: 0pt"></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>(12) Income Taxes</b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The Company accounts for income
taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the expected tax consequences
of temporary differences between the tax bases of assets and liabilities and their reported amounts. Valuation allowances are
established, when necessary, to reduce deferred tax assets to amounts that are more likely than not to be realized. As of March
31, 2013, the Company has established a full valuation allowance against all of its net deferred tax assets.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">FASB ASC 740, <i>Income Taxes
</i>(FASB ASC 740) addresses the accounting for uncertainty in income taxes recognized in an entity’s financial statements
and prescribes a recognition threshold and measurement attribute for financial statement disclosure of tax positions taken or
expected to be taken on a tax return. As of March 31, 2013, the Company has a liability of $64,000 ($42,000 net of federal benefit)
for unrecognized tax benefits.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">For the three and nine months
ended March 31, 2013 and 2012, the Company’s effective tax rate differed from the federal statutory rate of 35%, primarily
due to recording changes to the valuation allowance placed against its net deferred tax assets.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The Company files consolidated returns for federal,
California, Florida, and Texas income and franchise taxes.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The Company is currently under
examination by the Internal Revenue Service for the fiscal years ended June 30, 2008 through 2010. Loss carryovers are generally
subject to modification by tax authorities until 3 years after they have been utilized; as such, the Company is subject to examination
for the fiscal years ended 2000 through present for federal purposes and fiscal years ended 2006 through present for state purposes.</font></p>
<p style="margin: 0pt"></p>
64000
The Company is currently under examination by the Internal Revenue Service for the fiscal years ended June 30, 2008 through 2010. Loss carryovers are generally subject to modification by tax authorities until 3 years after they have been utilized; as such, the Company is subject to examination for the fiscal years ended 2000 through present for federal purposes and fiscal years ended 2006 through present for state purposes.
<p style="margin: 0pt"></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>(13) Purchase of Common Stock</b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Common stock repurchases under
the Company’s securities repurchase program may be made from time to time, in the open market, through block trades or otherwise
in accordance with applicable regulations of the Securities and Exchange Commission. Depending on market conditions and other
factors, these purchases may be commenced or suspended at any time or from time to time without prior notice. Additionally, the
timing of such transactions will depend on other corporate strategies and will be at the discretion of the management of the Company.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">As of March 31, 2013, we had
repurchased 311,660 shares of common stock at a cost of $0.2 million, which represents an average cost of $0.76 per share, and
$1.1 million of Senior Convertible Notes payable. All of these repurchases were made prior to the period ended March 31, 2013.
As a result, the Company is authorized to repurchase an additional $5.7 million of securities under this program. Additionally,
on November 1, 2012, Thomas B. Pickens III and Winn Interests, Ltd. purchased 1,783,746 and 594,581 shares of common stock of
the Company, respectively, at an average price of $0.90 per share.</font></p>
<p style="margin: 0pt"></p>
311660
200000
0.76
1100000
5700000
1783746
594581
0.90
<p style="margin: 0pt"></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>(14) Commitments and Contingencies</b></font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The Company is subject to various
lawsuits and other claims in the normal course of business. In addition, from time to time, the Company receives communications
from government or regulatory agencies concerning investigations or allegations of noncompliance with laws or regulations in jurisdictions
in which the Company operates.</font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The Company establishes reserves
for the estimated losses on specific contingent liabilities, for regulatory and legal actions where the Company deems a loss to
be probable and the amount of the loss can be reasonably estimated. In other instances, the Company is not able to make a reasonable
estimate of liability because of the uncertainties related to the outcome or the amount or range of potential loss.</font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">On January 10, 2013, a lawsuit
was filed in a district court in Travis County against Astrotech Corporation by John Porter, the former Senior Vice President,
Chief Financial Officer, Treasurer and Secretary of the Company. In the lawsuit, Mr. Porter alleges various breaches of contract
claims in connection with his termination from the Company on August 3, 2012. Mr. Porter seeks monetary damages of at least $639,808.
While the Company intends to vigorously defend any such actions by Mr. Porter, the Company recorded a liability at March 31, 2013
for its estimate of the probable loss in this matter.</font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">On February 20, 2013, a shareholder
derivative lawsuit was filed in the District Court of Travis County, Texas against the current directors and chief executive officer
of Astrotech Corporation and against the Company, as nominal defendant. The complaint alleges, among other things, that the directors
and chief executive officer breached fiduciary duties to the Company in connection with certain corporate transactions, including
loans to subsidiaries and purchases of outstanding shares of the Company's common stock. The Company intends to vigorously defend
the lawsuit.</font></p>
<p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif"><b>(16) Subsequent Events</b></font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company and ARES have resolved certain issues
relative to the early termination of the subcontract in May 2008, including, but not limited to, the completion of the 2005 through
2008 governmental audits by the DCAA. In April 2013 the Company received the remaining outstanding balance of $0.1 million.</font></p>
<p style="margin: 0pt"></p>
2739000
2730000
390000
1000
-2340
-113
1014
-1438
19279000
19463000
18764000
18448000
0
0
388000
0
19279000
19463000
19152000
18448000
-0.12
-0.01
0.05
-0.08
-0.12
-0.01
0.05
-0.08
150000
0
100000
The Company and ARES have resolved certain issues relative to the early termination of the subcontract in May 2008, including, but not limited to, the completion of the 2005 through 2008 governmental audits by the DCAA.
2013-04-30
Over $800,000 in research and development funding
19486727
<p style="margin: 0pt"></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>(15) NASDAQ Listing Qualifications</b></font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">On November 13, 2012, we received
written notification from NASDAQ indicating that the minimum bid price of our common stock had fallen below $1.00 for 30 consecutive
trading days and that we were therefore not in compliance with NASDAQ Listing Rule 5550(a)(2). On May 14, 2013, we received a
second compliance notice from NASDAQ regarding the Company's failure to maintain the minimum bid price for continued listing.
However, the NASDAQ staff has determined that the Company is eligible for an additional 180 day grace period, or until November
11, 2013, to regain compliance. NASDAQ's determination was based on the Company meeting the continued listing requirement for
market value of publicly held shares and all other applicable requirements for initial listing on the NASDAQ Capital Market, with
the exception of the bid price requirement, and the Company's written notice to NASDAQ of its intention to cure the deficiency
during the second compliance period by effecting a reverse stock split, if necessary.</font></p>
<p style="margin: 0pt"></p>
207000
0