0001001907 2005-04-28 0001001907 2005-04-01 2005-04-28 0001001907 2008-10-01 2008-10-31 0001001907 astc:AstrotechCommonStockIncentivePlansMember 2009-03-01 2009-03-31 0001001907 astc:TexasEmergingTechnologyFundMember astc:FirstDetectMember 2010-03-01 2010-03-31 0001001907 us-gaap:RevolvingCreditFacilityMember 2010-10-31 0001001907 us-gaap:SecuredDebtMember 2010-10-31 0001001907 2010-11-01 2010-11-30 0001001907 astc:AstrotechSecuritiesRepurchaseProgramMember 2010-07-01 2011-06-30 0001001907 astc:AstrotechSecuritiesRepurchaseProgramMember 2011-06-30 0001001907 astc:TexasEmergingTechnologyFundMember astc:FirstDetectMember 2012-06-30 0001001907 exch:XNAS 2012-11-01 2012-11-13 0001001907 2013-01-01 2013-01-10 0001001907 2013-02-01 2013-02-20 0001001907 2012-07-01 2013-06-30 0001001907 astc:AsoSegmentMember 2012-07-01 2013-06-30 0001001907 astc:SpacetechSegmentMember 2012-07-01 2013-06-30 0001001907 us-gaap:GovernmentContractsConcentrationRiskMember 2012-07-01 2013-06-30 0001001907 us-gaap:NoncontrollingInterestMember 2012-07-01 2013-06-30 0001001907 us-gaap:RetainedEarningsMember 2012-07-01 2013-06-30 0001001907 us-gaap:AdditionalPaidInCapitalMember 2012-07-01 2013-06-30 0001001907 us-gaap:CommonStockMember 2012-07-01 2013-06-30 0001001907 us-gaap:RestrictedStockMember 2012-07-01 2013-06-30 0001001907 astc:FairValueStockBasedCompensationAstrotechMember 2012-07-01 2013-06-30 0001001907 astc:StockOptionActivityAstrotechMember 2012-07-01 2013-06-30 0001001907 astc:StockOptionActivityFirstDetectMember 2012-07-01 2013-06-30 0001001907 astc:StockOptionActivityAstrogenetixMember 2012-07-01 2013-06-30 0001001907 astc:AstrotechStockOptionActivityMember 2012-07-01 2013-06-30 0001001907 2013-06-30 0001001907 us-gaap:SecuredDebtMember 2013-06-30 0001001907 astc:AsoSegmentMember 2013-06-30 0001001907 astc:SpacetechSegmentMember 2013-06-30 0001001907 us-gaap:FairValueInputsLevel2Member 2013-06-30 0001001907 astc:FirstDetect2011StockIncentivePlanMember 2013-06-30 0001001907 astc:UsGovernmentContractsMember 2013-06-30 0001001907 astc:CommercialContractsMember 2013-06-30 0001001907 us-gaap:FlightEquipmentMember 2013-06-30 0001001907 us-gaap:BuildingAndBuildingImprovementsMember 2013-06-30 0001001907 astc:FurnitureFixturesEquipmentAndLeaseholdImprovementsMember 2013-06-30 0001001907 us-gaap:ConstructionInProgressMember 2013-06-30 0001001907 astc:AstrotechStockOptionActivityMember 2013-06-30 0001001907 astc:AstrotechRestrictedStockActivityMember 2013-06-30 0001001907 2013-10-11 0001001907 exch:XNAS 2013-10-16 2013-10-29 0001001907 2013-12-31 0001001907 astc:AstrotechSpaceOperationsMember 2014-05-01 2014-05-28 0001001907 astc:TexasEmergingTechnologyFundAgreementMember astc:FirstDetectMember 2014-06-01 2014-06-13 0001001907 2013-07-01 2014-06-30 0001001907 us-gaap:RevolvingCreditFacilityMember 2013-07-01 2014-06-30 0001001907 us-gaap:SecuredDebtMember 2013-07-01 2014-06-30 0001001907 astc:AsoSegmentMember 2013-07-01 2014-06-30 0001001907 astc:SpacetechSegmentMember 2013-07-01 2014-06-30 0001001907 us-gaap:GovernmentContractsConcentrationRiskMember 2013-07-01 2014-06-30 0001001907 astc:AstrogenetixMember 2013-07-01 2014-06-30 0001001907 us-gaap:NoncontrollingInterestMember 2013-07-01 2014-06-30 0001001907 us-gaap:RetainedEarningsMember 2013-07-01 2014-06-30 0001001907 us-gaap:AdditionalPaidInCapitalMember 2013-07-01 2014-06-30 0001001907 us-gaap:CommonStockMember 2013-07-01 2014-06-30 0001001907 astc:TexasEmergingTechnologyFundMember astc:FirstDetectMember 2013-07-01 2014-06-30 0001001907 us-gaap:RestrictedStockMember 2013-07-01 2014-06-30 0001001907 astc:Range032To045Member 2013-07-01 2014-06-30 0001001907 astc:Range071071Member 2013-07-01 2014-06-30 0001001907 astc:Range1202410Member 2013-07-01 2014-06-30 0001001907 astc:Range0322410Member 2013-07-01 2014-06-30 0001001907 astc:StockOptionActivityAstrotechMember 2013-07-01 2014-06-30 0001001907 astc:StockOptionActivityFirstDetectMember 2013-07-01 2014-06-30 0001001907 astc:StockOptionActivityAstrogenetixMember 2013-07-01 2014-06-30 0001001907 astc:AstrotechDirectorsStockOptionPlanMember 2013-07-01 2014-06-30 0001001907 astc:Astrotech2008StockIncentivePlanMember 2013-07-01 2014-06-30 0001001907 astc:Astrotech2011StockIncentivePlanMember 2013-07-01 2014-06-30 0001001907 astc:AstrotechStockOptionActivityMember 2013-07-01 2014-06-30 0001001907 astc:AstrotechRestrictedStockActivityMember 2013-07-01 2014-06-30 0001001907 2014-06-30 0001001907 us-gaap:SecuredDebtMember 2014-06-30 0001001907 astc:AsoSegmentMember 2014-06-30 0001001907 astc:SpacetechSegmentMember 2014-06-30 0001001907 us-gaap:FairValueInputsLevel2Member 2014-06-30 0001001907 astc:Astrotech1994PlanMember 2014-06-30 0001001907 astc:FirstDetect2011StockIncentivePlanMember 2014-06-30 0001001907 astc:UsGovernmentContractsMember 2014-06-30 0001001907 astc:CommercialContractsMember 2014-06-30 0001001907 astc:FirstDetectMember 2014-06-11 0001001907 astc:AstrogenetixMember 2014-06-11 0001001907 us-gaap:FlightEquipmentMember 2014-06-30 0001001907 us-gaap:BuildingAndBuildingImprovementsMember 2014-06-30 0001001907 astc:FurnitureFixturesEquipmentAndLeaseholdImprovementsMember 2014-06-30 0001001907 us-gaap:ConstructionInProgressMember 2014-06-30 0001001907 astc:TexasEmergingTechnologyFundMember astc:FirstDetectMember 2014-06-30 0001001907 astc:Range032To045Member 2014-06-30 0001001907 astc:Range071071Member 2014-06-30 0001001907 astc:Range1202410Member 2014-06-30 0001001907 astc:Range0322410Member 2014-06-30 0001001907 astc:AstrotechCommonStockIncentivePlansMember 2014-06-30 0001001907 astc:AstrotechDirectorsStockOptionPlanMember 2014-06-30 0001001907 astc:Astrotech2008StockIncentivePlanMember 2014-06-30 0001001907 astc:Astrotech2011StockIncentivePlanMember 2014-06-30 0001001907 astc:AstrotechStockOptionActivityMember 2014-06-30 0001001907 astc:AstrotechRestrictedStockActivityMember 2014-06-30 0001001907 us-gaap:SubsequentEventMember astc:AstrotechSpaceOperationsMember 2014-08-22 0001001907 us-gaap:SubsequentEventMember astc:AstrotechSpaceOperationsMember 2014-08-01 2014-08-22 0001001907 2014-09-17 0001001907 2012-06-30 0001001907 us-gaap:NoncontrollingInterestMember 2012-06-30 0001001907 us-gaap:NoncontrollingInterestMember 2013-06-30 0001001907 us-gaap:RetainedEarningsMember 2012-06-30 0001001907 us-gaap:RetainedEarningsMember 2013-06-30 0001001907 us-gaap:AdditionalPaidInCapitalMember 2012-06-30 0001001907 us-gaap:AdditionalPaidInCapitalMember 2013-06-30 0001001907 us-gaap:TreasuryStockMember 2012-06-30 0001001907 us-gaap:TreasuryStockMember 2013-06-30 0001001907 us-gaap:CommonStockMember 2012-06-30 0001001907 us-gaap:CommonStockMember 2013-06-30 0001001907 us-gaap:RestrictedStockMember 2012-06-30 0001001907 us-gaap:RestrictedStockMember 2013-06-30 0001001907 astc:StockOptionActivityAstrotechMember 2012-06-30 0001001907 astc:StockOptionActivityAstrotechMember 2013-06-30 0001001907 astc:StockOptionActivityFirstDetectMember 2012-06-30 0001001907 astc:StockOptionActivityFirstDetectMember 2013-06-30 0001001907 astc:StockOptionActivityAstrogenetixMember 2012-06-30 0001001907 astc:StockOptionActivityAstrogenetixMember 2013-06-30 0001001907 us-gaap:NoncontrollingInterestMember 2014-06-30 0001001907 us-gaap:RetainedEarningsMember 2014-06-30 0001001907 us-gaap:AdditionalPaidInCapitalMember 2014-06-30 0001001907 us-gaap:TreasuryStockMember 2014-06-30 0001001907 us-gaap:CommonStockMember 2014-06-30 0001001907 us-gaap:RestrictedStockMember 2014-06-30 0001001907 astc:StockOptionActivityAstrotechMember 2014-06-30 0001001907 astc:StockOptionActivityFirstDetectMember 2014-06-30 0001001907 astc:StockOptionActivityAstrogenetixMember 2014-06-30 iso4217:USD iso4217:USDxbrli:shares xbrli:shares xbrli:pure astc:Shuttle_missions astc:Installment astc:Day utr:sqft astc:Renewalterms 5096000 3831000 10177000 5317000 1279000 503000 574000 10916000 5684000 37035000 35625000 1410000 35069000 33858000 1211000 51000 29000 48002000 46159000 1843000 40782000 38423000 2359000 2488000 1180000 2430000 2386000 1304000 872000 387000 5655000 6609000 10093000 64000 237000 194000 152000 5655000 12522000 10482000 183782000 183866000 237000 237000 987000 1671000 -151840000 -156800000 2788000 2730000 35480000 30300000 48002000 40782000 2500000 2500000 75000000 75000000 19781721 19856454 311660 311660 23995000 23862000 133000 16423000 16293000 130000 15684000 10705000 8311000 5718000 6790000 8893000 2080000 2505000 8870000 11398000 -559000 -5680000 -164000 -182000 -723000 3121000 -3844000 -5862000 1606000 -7468000 6000 -723000 -538000 -185000 -5868000 -908000 -4960000 -538000 -908000 -185000 -4960000 0.01 0.25 19328 19487 0.01 0.25 19328 19487 31000 646000 2115000 2313000 3391000 -4038000 -1468000 -259000 -545000 -1270000 1079000 -152000 -2902000 -552000 1847000 368000 -1847000 -368000 372000 387000 40000 42000 -332000 -345000 -5081000 -1265000 249000 235000 <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b>(1) Description of the Company and Operating Environment</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">Astrotech Corporation (Nasdaq: ASTC) (&#8220;Astrotech,&#8221; &#8220;the Company,&#8221; &#8220;we,&#8221; &#8220;us&#8221; or &#8220;our&#8221;), a State of Washington corporation, is a commercial aerospace company that was formed in 1984 to leverage the environment of space for commercial purposes. For nearly 30&#160;years, the Company has remained a crucial player in space commerce activities. We have successfully supported the launch of 23 shuttle missions and more than 300 spacecraft. We have designed, operated and built space hardware and processing facilities. We currently own, operate and maintain world-class spacecraft processing facilities; prepare and process scientific research in microgravity and develop and manufacture sophisticated and cutting edge chemical sensor equipment.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b>Our Business Units</b></p> <p style="font: 8pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Astrotech Space Operations (&#8220;ASO&#8221;)</i></b></p> <p style="font: 8pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">On August 22, 2014, the Company completed the sale of substantially all of its assets used to conduct the Company&#8217;s Astrotech Space Operations business unit (&#8220;the ASO business&#8221;) for $61.0 million, less a working capital and indemnity holdback of $1.8 million and $6.1 million, respectively. The working capital holdback will be settled up once both sides agree on the final net working capital amount as of the date of the transaction. The indemnity holdback is being held in escrow under the terms of an escrow agreement until February 2016 (the 18-month anniversary of the consummation of the transaction).</p> <p style="font: 8pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">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 and launch pad delivery; and communication linked launch control. Our ASO facilities can accommodate up to five-meter class satellites, which includes almost all U.S.-based satellites. ASO&#8217;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 June 30, 2014. 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 from 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 by ASO are primarily driven by the number of spacecraft launches.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Spacetech</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">Our other business unit is a technology incubator designed to commercialize space-industry technologies. This business unit is currently pursuing two distinct opportunities:</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b>1<sup>st</sup>&#160;Detect</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">1<sup>st</sup>&#160;Detect develops, manufactures and sells ultra-small mass spectrometers and related equipment. Mass spectrometers, in general, measure the mass and relative abundance of ions in a sample to create a &#8220;mass spectrum&#8221;. This resulting mass spectrum is a unique chemical fingerprint that can be compared to a reference library of mass spectra to verify the identity of a sample. Mass spectrometers can identify chemicals with more accuracy and precision than competing instruments given their extreme sensitivity and specificity and they are a staple of almost all analytical laboratories. By leveraging technology initiated by an engagement with the National Aeronautics and Space Administration (&#8220;NASA&#8221;) to develop a mass spectrometer for the International Space Station (&#8220;ISS&#8221;), the Company has developed a series of instruments that are significantly smaller, lighter, faster and less expensive than competing mass spectrometers, and significantly more sensitive and accurate than other competing chemical detectors at a similar price point. Our efforts have resulted in a technology that can provide mass spectrometry analytics in real-time for explosive device detection in airports and the battlefield, industrial quality and process control, environmental field applications and laboratory research.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The MMS-1000<sup>TM</sup>&#160;is a small, low power mass spectrometer designed initially for the laboratory market. The unique design of this unit enables mass spectrometric quality chemical analysis in a small package (about the size of a shoebox) that operates from less power than a typical light bulb. This allows high quality chemical analysis to be performed in locations where mass spectrometers have not been used before, such as directly on the factory floor or in the battlefield, without compromising the quality of the analysis. The OEM-1000 is a mass spectrometer component that is designed to be integrated into customers&#8217; complementary technology. The OEM-1000 has recently been integrated into a Thermogravimetric Analyzer (&#8220;TGA&#8221;) manufactured by RIGAKU of Tokyo, Japan, one of the leading instrumentation companies in Asia. The integrated instrument named Thermo iMS2 is the world's first integrated TGA with MS/MS capabilities.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b>Astrogenetix</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif;">Astrogenetix is a biotechnology company formed to commercialize products processed 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 we flew experiments twelve times over a three year period. In collaboration with NASA, NASA has engaged leading vaccine development experts through a premier educational institution to independently evaluate Astrogenetix&#8217;s platform with specific direction to aid in the filing of an IND application for Salmonella. Given that NASA is providing much of the necessary funding for this research, additional investment in Astrogenetix has been scaled back considerably as efforts are concentrated on filing this IND. The team is also evaluating a vaccine target for Methicillin-Resistant Staphylococcus Aureus (&#8220;MRSA&#8221;) based on discoveries made in microgravity.&#160;</font>We have negotiated a Space Act Agreement with NASA for a minimum of twenty eight additional space flights following the successful filing of the IND application<font style="font-family: 'times new roman', times, serif;">.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i></i></b>&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Liquidity</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">At June&#160;30, 2014, we had cash and cash equivalents of $3.8 million and our working capital was approximately ($4.4) million.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">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. 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 year. 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.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">On August 22, 2014, the Company completed the sale of substantially all of its assets used to conduct the Company's Astrotech Space Operations business unit for $61.0 million, less a working capital and indemnity holdback of $1.8 million and $6.1 million, respectively. The working capital holdback will be settled up once both sides agree on the final net working capital amount as of the date of the transaction. The indemnity holdback is being held in escrow under the terms of an escrow agreement until February 2016 (the 18-month anniversary of the consummation of the transaction). A portion of the proceeds from the sale were used to pay off the term note of $5.7 million (see Note 19 to our Consolidated Financial Statements). The remaining funds will fund current operations and support strategies for our Spacetech business unit.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">We believe we have sufficient liquidity to continue to fund our operating expenses, capital equipment requirements and other expected liquidity requirements over the next fiscal year.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b>(3) Noncontrolling Interest</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 11pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-size: 10pt;">In January&#160;2010, restricted shares of Astrotech subsidiaries, 1</font><font style="font-size: 10pt;"><sup>st</sup></font><font style="font-size: 10pt;">&#160;Detect and Astrogenetix, were granted to certain employees, directors and officers (see Note 10), resulting in Astrotech owning less than 100% of the subsidiaries. The Company applied non-controlling interest accounting for the fiscal years ended June&#160;30, 2014 and 2013, which requires us to clearly identify the non-controlling interest in the consolidated balance sheets and consolidated income statements. We disclose three measures of net loss: net loss, net loss&#160;attributable to noncontrolling interest, and net loss&#160;attributable to Astrotech </font><font size="2">Corporation. Our operating cash flows in our consolidated statements of cash flows reflect net loss, while our basic and diluted earnings per share calculations reflect net loss&#160;attributable to Astrotech Corporation.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">During June 2014, the Company completed an internal reorganization involving both 1<sup>st</sup>&#160;Detect and Astrogenetix which resulted in the two entities becoming wholly-owned subsidiaries of the Company, and which was effected through the relinquishment by certain employees of equity grants previously issued to them in 1<sup>st</sup>&#160;Detect and Astrogenetix, and through the filing of Certificates of Ownership and Merger pursuant to Section 253 of the General Corporation Law of the State of Delaware by Detect Merger Sub Corporation and AG Merger Sub, Inc., which were wholly-owned subsidiaries of the Company prior to the effective time of such mergers, and which owned at least 90% of the outstanding shares of voting stock of 1<sup>st</sup>&#160;Detect and Astrogenetix, respectively. The relinquishment resulted in approximately $39,000 of incremental&#160; stock-based compensation expense and approximately $22,000 of reimbursements to employees of the Company.&#160; Further and as a result, the noncontrolling interest of $1.1 million for these entities was reclassified into additional paid in capital.&#160;The remaining noncontrolling interest balance of $1.8 million at June 30, 2014 represents an interest held by the State of Texas Emerging Technology Fund which is more fully disclosed in Note 15.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table align="center" style="font: 9pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td><font style="font-size: 8pt;"><b>(in thousands)</b></font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">2014</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">2013</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1102px; text-align: left; font-weight: bold;">Beginning balance</td> <td style="width: 15px; font-weight: bold;">&#160;</td> <td style="width: 15px; text-align: left; font-weight: bold;">$</td> <td style="width: 149px; text-align: right; font-weight: bold;">2,788</td> <td style="width: 15px; text-align: left; font-weight: bold;">&#160;</td> <td style="width: 15px; font-weight: bold;">&#160;</td> <td style="width: 15px; text-align: left; font-weight: bold;">$</td> <td style="width: 148px; text-align: right; font-weight: bold;">2,730</td> <td style="width: 14px; text-align: left; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; text-indent: 9pt;">Net loss attributable to noncontrolling interest</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">(908</td> <td style="text-align: left;">)</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">(538</td> <td style="text-align: left;">)</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; text-indent: 9pt;">Capital Contribution</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1,000</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">596</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; text-indent: 9pt;">Stock-based compensation expense</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">6</td> <td style="text-align: left;">&#160;</td> <td style="font-size: 11pt;">&#160;</td> <td style="text-align: left; font-size: 11pt;">&#160;</td> <td style="text-align: right; font-size: 11pt;">&#8212;</td> <td style="text-align: left; font-size: 11pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; text-indent: 9pt; padding-bottom: 1pt;">Change in interest of subsidiaries</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(1,086</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; font-size: 10pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 2.5pt; font-weight: bold;">Ending balance</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,800</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">2,788</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The capital contribution is made by the Company in order to fund the net losses of the noncontrolling interest.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 11pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-size: 10pt;">From July 1, 2013 to June 11, 2014, the Company&#8217;s share of income and losses was 86% for 1<sup>st</sup>&#160;Detect and 84% for Astrogenetix. Subsequent to June 11, 2014, 100% of income and losses of 1<sup>st</sup>&#160;Detect and Astrogenetix was included in the net loss attributable to Astrotech Corporation.</font></p> <p style="font: 11pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-size: 10pt;">&#160;</font></p> <p style="font: 11pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The effect of the change in our ownership interest in 1<sup>st</sup>&#160;Detect and Astrogenetix on our equity is as follows.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table align="center" style="font: 9pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom; background-color: white;"> <td>&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="3"><font style="font-size: 8pt;">2014</font></td> <td style="padding-bottom: 1pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="3"><font style="font-size: 8pt;">2013</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1102px; text-align: left; font-weight: bold;">Net loss attributable to Astrotech Corporation shareholders</td> <td style="width: 15px; font-weight: bold;">&#160;</td> <td style="width: 15px; text-align: left; font-weight: bold;">$</td> <td style="width: 149px; text-align: right; font-weight: bold;">(4,960</td> <td style="width: 15px; text-align: left; font-weight: bold;">)</td> <td style="width: 15px; font-weight: bold;">&#160;</td> <td style="width: 15px; text-align: left; font-weight: bold;">$</td> <td style="width: 148px; text-align: right; font-weight: bold;">(185</td> <td style="width: 14px; text-align: left; font-weight: bold;">)</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Transfers from noncontrolling interest:</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; text-indent: 9pt; padding-bottom: 1pt;">Increase in Astrotech Corporations paid-in capital for relinquishment of subsidiary stock</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,086</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#8212;&#160;&#160;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">Change from net loss attributable to Astrotech Corporation shareholders and transfers from noncontrolling interest</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">(3,874</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">)</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">(185</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">)</td> </tr> </table> <div>&#160;</div> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;"><b>(12) Net Loss Per Share</b></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">Basic net 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, convertible debt, 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):</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;">&#160;</p> <table style="font: 9pt/normal times new roman, times, serif; width: 100%; border-collapse: collapse; font-size-adjust: none; font-stretch: normal;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt;"> </font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6"><font style="font-size: 8pt;">Year Ended June 30,</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt;"> </font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">2014</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">2013</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="font-weight: bold;">Numerator:</td> <td></td> <td style="text-align: left;"></td> <td style="text-align: right;"></td> <td style="text-align: left;"></td> <td></td> <td style="text-align: left;"></td> <td style="text-align: right;"></td> <td style="text-align: left;"></td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="width: 70%; text-align: left; padding-bottom: 1pt;">Net loss attributable to Astrotech, basic</td> <td style="width: 1%; padding-bottom: 1pt;"></td> <td style="width: 1%; text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">$</td> <td style="width: 12%; text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(4,960</td> <td style="width: 1%; text-align: left; padding-bottom: 1pt;">)</td> <td style="width: 1%; padding-bottom: 1pt;"></td> <td style="width: 1%; text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">$</td> <td style="width: 12%; text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(185</td> <td style="width: 1%; text-align: left; padding-bottom: 1pt;">)</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 1pt;">Net loss attributable to Astrotech, diluted</td> <td style="padding-bottom: 1pt;"></td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(4,960</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> <td style="padding-bottom: 1pt;"></td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(185</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>&#160;</td> <td></td> <td style="text-align: left;"></td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;"></td> <td></td> <td style="text-align: left;"></td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;"></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="font-weight: bold;">Denominator:</td> <td></td> <td style="text-align: left;"></td> <td style="text-align: right;"></td> <td style="text-align: left;"></td> <td></td> <td style="text-align: left;"></td> <td style="text-align: right;"></td> <td style="text-align: left;"></td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Denominator for basic net loss per share &#8212; weighted average common stock outstanding</td> <td></td> <td style="text-align: left;"></td> <td style="text-align: right;">19,487</td> <td style="text-align: left;"></td> <td></td> <td style="text-align: left;"></td> <td style="text-align: right;">19,328</td> <td style="text-align: left;"></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Dilutive common stock equivalents &#8212; common stock options and share-based awards</td> <td></td> <td style="text-align: left;"></td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;"></td> <td></td> <td style="text-align: left;"></td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;"></td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1pt;">Denominator for diluted net loss per share weighted average common stock outstanding and dilutive common stock equivalents</td> <td style="padding-bottom: 1pt;"></td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">19,487</td> <td style="text-align: left; padding-bottom: 1pt;"></td> <td style="padding-bottom: 1pt;"></td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">19,328</td> <td style="text-align: left; padding-bottom: 1pt;"></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 1pt;">Basic net loss per share</td> <td style="padding-bottom: 1pt;"></td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(0.25</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> <td style="padding-bottom: 1pt;"></td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(0.01</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 1pt;">Diluted net loss per share</td> <td style="padding-bottom: 1pt;"></td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(0.25</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> <td style="padding-bottom: 1pt;"></td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(0.01</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> </tr> </table> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">Options to purchase 874,750 shares of common stock at exercise prices ranging from $0.32 to $24.10 per share outstanding for the year ended June 30, 2014, were not included in diluted net loss per share, as the impact to net loss per share is anti-dilutive. Options to purchase 1,175,150 shares of common stock at exercise prices ranging from $0.32 to $24.10 per share outstanding for the year ended June 30, 2013, were not included in diluted net loss per share, as the impact to net loss per share is anti-dilutive.</p> ASTROTECH Corp \WA\ 0001001907 10-K 2014-06-30 false --06-30 No No Yes Smaller Reporting Company 55135176000 19553127 FY 2014 <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"><b>(7) Debt</b></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">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, which 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 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 June 30, 2014 and 2013 was $5.7 million and $6.0 million, respectively.</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;"></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">In October, 2013 we were notified by a customer that a previously booked payload processing contract would be deferred several weeks. Consequently, our financial projections for fiscal year 2014 indicated that we would likely not be in compliance with our debt service coverage ratio and minimum tangible net worth covenants by the third quarter ended March 31, 2014. As such, on October 11, 2013, we amended the debt agreement with our bank that updated the following with respect to our debt covenants: 1) provided a credit of $0.50 million and $2.25 million for the third and fourth quarter of fiscal year 2014, respectively, to our debt service coverage calculation, 2) reduced our minimum tangible net worth requirement to $32.0 million for the third and fourth fiscal quarter of fiscal year 2014, and 3) required that we maintain a minimum cash balance at the bank of $2.0 million through June 30, 2014 and $0.75 million thereafter. In November, 2013 we were subsequently notified by the same customer that this mission would be further deferred. As a result of this deferral we did not meet our debt service coverage ratio and minimum tangible net worth covenants in the third and fourth quarters of fiscal 2014. As such, we reclassified our long-term debt to current for the balance of fiscal year 2014.</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">On August 22, 2014, the Company paid off the term note as part of the sale of its ASO business (see Note 19).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b>(8) Fair Value of Financial Instruments</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">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.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The fair value hierarchy established in the standard prioritizes the inputs used in valuation techniques into three levels as follows:</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">Level 1&#8212;Quoted prices in active markets for identical assets or liabilities.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">Level 2&#8212;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.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">Level 3&#8212;Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The following table presents the carrying amounts, estimated fair values and valuation input levels of certain of the Company&#8217;s financial instruments, which are not recorded at fair value, as of June 30, 2014 and 2013 (in thousands):</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 9pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6"><font style="font-size: 8pt;">June 30, 2014</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6"><font style="font-size: 8pt;">June 30, 2013</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="2"><font style="font-size: 8pt;">Carrying</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="2"><font style="font-size: 8pt;">Fair</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="2"><font style="font-size: 8pt;">Carrying</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="2"><font style="font-size: 8pt;">Fair</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">Valuation</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">Amount</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">Value</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">Amount</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">Value</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-size: 8pt;">Inputs</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 549px; text-align: left; padding-bottom: 1pt;">Note payable</td> <td style="width: 16px; padding-bottom: 1pt;">&#160;</td> <td style="width: 16px; text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">$</td> <td style="width: 157px; text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">5,655</td> <td style="width: 16px; text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="width: 16px; padding-bottom: 1pt;">&#160;</td> <td style="width: 16px; text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="width: 157px; text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">5,655</td> <td style="width: 16px; text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="width: 16px; padding-bottom: 1pt;">&#160;</td> <td style="width: 16px; text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">$</td> <td style="width: 157px; text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">6,042</td> <td style="width: 15px; text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="width: 15px; padding-bottom: 1pt;">&#160;</td> <td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">$</td> <td style="width: 156px; text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">6,042</td> <td style="width: 15px; text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="width: 15px; padding-bottom: 1pt;">&#160;</td> <td style="width: 188px; text-align: center; padding-bottom: 1pt;">Level 2</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 2.5pt; font-weight: bold;">Total</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">5,655</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">5,655</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">6,042</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">6,042</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The carrying value of the Company&#8217;s debt at June&#160;30, 2014 approximates fair value based on rates available for similar debt available to comparable companies in the marketplace. The carrying amounts of the Company&#8217;s Level 1 securities consists of cash and cash equivalents for which carrying value equals fair value.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b>(9) Business and Credit Risk Concentration</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">A substantial portion of our revenue has been generated under contracts with the U.S. Government. During the year ended June&#160;30, 2014 and 2013, approximately 46% and 66%, respectively, of our revenues were generated by various NASA and U.S. Government contracts or subcontracts. Accounts receivable (net of allowance) totaled $1.3 million at June&#160;30, 2014, of which 91% was attributable to the U.S. Government.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The Company maintains funds in bank accounts that may exceed the limit insured by the Federal Deposit Insurance Corporation, or &#8220;FDIC.&#8221; In October&#160;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.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b>(16) Segment Information</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">During the fiscal year 2014, the Company shifted the use of its corporate resources from its ASO business unit to its Spacetech business unit to focus more on growth opportunities at 1<sup>st</sup>&#160;Detect. As such, there were higher incremental costs allocated to our Spacetech business unit for the year ended June 30, 2014 compared to the year ended June 30, 2013. The shift in resources had no impact on our consolidated results.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">All intercompany transactions between business units have been eliminated in consolidation.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">Key financial metrics for the year ended June&#160;30, 2014 and 2013 of the Company&#8217;s segments are as follows (in thousands):</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table align="center" style="font: 9pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">Year Ended</font></td> <td style="font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">Year Ended</font></td> <td style="font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">June 30, 2014</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">June 30, 2013</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">Revenue and Income</font></td> <td style="font-size: 8pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 8pt;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 8pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Income (loss)</font></td> <td style="font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 8pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 8pt;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 8pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Income (loss)</font></td> <td style="font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands)</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Revenue</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">before income taxes</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Revenue</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">before income taxes</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 715px;">ASO</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">$</td> <td style="width: 149px; text-align: right;">16,293</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">$</td> <td style="width: 149px; text-align: right;">1,606</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">$</td> <td style="width: 149px; text-align: right;">23,862</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 14px; text-align: left;">$</td> <td style="width: 148px; text-align: right;">3,121</td> <td style="width: 14px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 1pt;">Spacetech</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">130</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(7,468</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">133</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(3,844</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 2.5pt; font-weight: bold;">Total</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">16,423</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">(5,862</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">)</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">23,995</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">(723</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">)</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;" nowrap="nowrap">&#160;</td> <td style="font-size: 8pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="6" nowrap="nowrap">&#160;</td> <td style="font-size: 8pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="font-size: 8pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="6" nowrap="nowrap">&#160;</td> <td style="font-size: 8pt; font-weight: bold;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">June 30, 2014</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">June 30, 2013</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font-size: 8pt;">Assets&#160;<br />(in thousands)</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Fixed&#160;<br />Assets, net</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Total Assets</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Fixed&#160;<br />Assets, net</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Total Assets</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td>ASO</td> <td>&#160;</td> <td style="text-align: left;">$</td> <td style="text-align: right;">33,858</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">$</td> <td style="text-align: right;">38,423</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">$</td> <td style="text-align: right;">35,625</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">$</td> <td style="text-align: right;">46,159</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 1pt;">Spacetech</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,211</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">2,359</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,410</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,843</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 2.5pt; font-weight: bold;">Total</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">35,069</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">40,782</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">37,035</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">48,002</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><i>Significant Customers &#8211;&#160;</i>We had three customers and two customers that accounted for greater than 10% of our consolidated revenues for our fiscal years ended June 30, 2014 and 2013, respectively. For our year ended June 30, 2014, those largest three customers accounted for approximately 46%, 22% and 17% of our consolidated revenues, and were reported within our ASO segment. For our year ended June 30, 2013, those largest two customers accounted for approximately 66% and&#160;15% of our consolidated revenues, and were reported within our ASO segment.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b>(15) State of Texas Funding</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 11pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-size: 10pt;">In March&#160;2010, the Texas Emerging Technology Fund awarded 1</font><font style="font-size: 10pt;"><sup>st</sup></font><font style="font-size: 10pt;">&#160;Detect $1.8&#160;million for the development and marketing of the Miniature Chemical Detector, a portable mass spectrometer designed to serve the industrial, environmental, security and healthcare markets. In exchange for the award, 1</font><font style="font-size: 10pt;"><sup>st</sup></font><font style="font-size: 10pt;">&#160;Detect granted a common stock purchase right and a note payable to the State of Texas. As of June&#160;30, 2012, 1</font><font style="font-size: 10pt;"><sup>st</sup></font><font style="font-size: 10pt;">&#160;Detect had received $1.8 million in disbursements. The proceeds from the award could only be used to fund development of the Miniature Chemical Detector at 1</font><font style="font-size: 10pt;"><sup>st</sup></font><font style="font-size: 10pt;">Detect, not for repaying existing debt or for use in other Company subsidiaries.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 11pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-size: 10pt;">The common stock purchase right is exercisable at the first Qualifying Financing Event (&#8220;QFE&#8221;), which is essentially a change in control or third party equity investment in 1</font><font style="font-size: 10pt;"><sup>st</sup></font><font style="font-size: 10pt;">&#160;Detect. The number of shares available to the State of Texas, at the price of par value, is calculated as the total disbursements together with the accrued interest (numerator)&#160;divided by the stock price established in the QFE (denominator). If the first QFE does not occur on or before November 30, 2014 following the agreement effective date, the number of shares available for purchase will equal the total disbursements (numerator)&#160;divided by $100 (denominator). As of June&#160;30, 2014, no QFE has occurred.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The note equals the disbursements to 1<sup>st&#160;</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>&#160;Detect, (2) selling more than 50% of common stock of 1<sup>st</sup>&#160;Detect, or (3) in 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>&#160;Detect moves its operations or headquarters outside of Texas at any time before March 2020. While the award agreement includes both a common stock purchase right and a note payable to the State of Texas, the economic substance of the transaction is that the State of Texas has purchased shares of 1<sup>st</sup>&#160;Detect in exchange for the granted award. As such, the $1.8 million, which was received in two installments of $0.9 million and $0.9 million, was accounted for as a contribution to equity in the periods ended June 30, 2012 and 2010 respectively. Effective with an amendment executed on June 13, 2014, 1<sup>st</sup>&#160;Detect has the option to settle the note payable and common stock purchase right by November 30, 2014. As of June 30, 2014, the State of Texas still had the right to exercise the common stock purchase right and management continued to classify the award proceeds as equity as the Company did not have the ability to repay the note. In August 2014, the shareholders of the Company approved the sale of ASO for $61 million. On August 22, 2014, 1<sup>st&#160;</sup>Detect settled the note payable and common stock repurchase right with a payment of $2.3 million (see Note 19).</p> <p style="font: 11pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-size: 10pt;">&#160;</font></p> <p style="font: 11pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">Management considers the likelihood 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 of June&#160;30, 2014, no default events have occurred.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b>(11) Income Taxes</b></p> <p style="font: 9pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">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 June&#160;30, 2014, the Company has established a full valuation allowance against all of its net deferred tax assets.</p> <p style="font: 9pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">FASB ASC 740, Income Taxes (FASB ASC 740) addresses the accounting for uncertainty in income taxes recognized in an entity&#8217;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. The Company has an unrecognized tax benefit of $0.1 million for the years ended June&#160;30, 2014&#160;and 2013.</p> <p style="font: 9pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">For the years ended June&#160;30, 2014 and 2013, the Company&#8217;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.</p> <p style="font: 9pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">Loss carryovers are generally subject to modification by tax authorities until 3 years after they have been utilized.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"></p> <p style="font: 9pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The components of income tax expense (benefit)&#160;from continuing operations are as follows (in thousands):</p> <p style="font: 9pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table align="center" style="font: 9pt/normal 'times new roman', times, serif; width: 1488px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 1pt; font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6"><font style="font: 8pt/normal 'times new roman', times, serif;"><b>Year Ended June 30,</b></font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 1pt; font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">2014</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">2013</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 100%;">Current</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 179px; text-align: right;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 178px; text-align: right;">&#160;</td> <td style="width: 14px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>Federal</td> <td>&#160;</td> <td style="text-align: left;">$</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">$</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">State and local</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">6</td> <td style="text-align: left;"></td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 1pt;">Foreign</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font: 9pt/normal 'times new roman', times, serif;">6</font></td> <td style="text-align: left; padding-bottom: 1pt;"></td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td>Deferred</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;"></td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>Federal</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">State and local</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 1pt;">Foreign</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">Total Tax Expense</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font: 9pt/normal 'times new roman', times, serif;"><b>6</b></font></td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;"></td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> </table> <p style="font: 9pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">A reconciliation of the reported income tax expense to the amount that would result by applying the U.S. Federal statutory rate to the income (loss)&#160;before income taxes to the actual amount of income tax expense (benefit)&#160;recognized follows (in thousands):</p> <p style="font: 9pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table align="center" style="font: 9pt/normal 'times new roman', times, serif; width: 1488px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6"><font style="font-size: 8pt;">Year Ended June 30,</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">2014</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">2013</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 100%; text-align: left;">Expected expense (benefit)</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">$</td> <td style="width: 179px; text-align: right;">(2,052</td> <td style="width: 15px; text-align: left;">)</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">$</td> <td style="width: 178px; text-align: right;">(253</td> <td style="width: 14px; text-align: left;">)</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">State tax expense</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">6</td> <td style="text-align: left;"></td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Change in temporary tax adjustments not recognized</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2,003</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">167</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 1pt;">Other permanent items</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">49</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">86</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 2.5pt; font-weight: bold;">Total</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">6</td> <td style="text-align: left; padding-bottom: 2.5pt;"></td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The Company&#8217;s deferred tax assets as of June&#160;30, 2014 and 2013 consist of the following (in thousands):</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table align="center" style="font: 9pt/normal 'times new roman', times, serif; width: 1488px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6"><font style="font-size: 8pt;">Year Ended June 30,</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">2014</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">2013</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Deferred tax assets:</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="width: 100%; text-align: left;">Net operating loss carryforwards</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">$</td> <td style="width: 179px; text-align: right;">15,243</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">$</td> <td style="width: 178px; text-align: right;">13,274</td> <td style="width: 14px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Alternative minimum tax credit carryforwards</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">671</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">671</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1pt;">Accrued expenses and other timing</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">929</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">683</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Total gross deferred tax assets</td> <td>&#160;</td> <td style="text-align: left;">$</td> <td style="text-align: right;">16,843</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">$</td> <td style="text-align: right;">14,628</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1pt;">Less &#8212; valuation allowance</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(16,009</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(13,540</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 1pt;">Net deferred tax assets</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">834</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,088</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Deferred tax liabilities:</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1pt;">Property and equipment, principally due to differences in depreciation</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(834</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(1,088</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 1pt;">Total gross deferred tax liabilities</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(834</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(1,088</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">Net deferred tax assets (liabilities)</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The valuation allowance increased by approximately $2.5&#160;million for the year ended June&#160;30, 2014. The valuation allowance increased by approximately $0.3&#160;million for the year ended June&#160;30, 2013. The Company adjusted the value of its deferred tax assets (before valuation allowance) in order to reflect tax return filings occurring since the prior year provision. Since the Company reflects a full valuation allowance against its deferred tax assets, there has been no income tax impact from these changes.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">At June&#160;30, 2014, the Company had accumulated net operating loss carryforwards of approximately $40.9&#160;million for Federal income tax purposes ($14.3&#160;million, tax effected) that are available to offset future regular taxable income. These net operating loss carryforwards expire between the years 2021 and&#160;2035. Utilization of these net operating losses is limited due to the changes in stock ownership of the Company associated with the October&#160;2007 Exchange Offer; as such, the benefit from these losses may not be realized.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The Company also has accumulated state net operating loss carryforwards of approximately $14.4&#160;million ($0.6&#160;million, tax effected) that are available to offset future state taxable income. These net operating loss carryforwards expire between the years 2019 and&#160;2035. These losses may also be subject to utilization limitations; as such, the benefit from these losses may not be realized.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The Company has a temporary credit for business loss carryovers that may be utilized to offset its Texas margin tax. The credit amount is $0.5 million ($326,000, tax effected). These credits may be used to offset $13,000 of state tax liability each year and will expire in 2027.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The Company has $0.7&#160;million of alternative minimum tax credit carryforwards available to offset future regular tax liabilities.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The Company files consolidated returns for federal, California, Florida, and Texas income and franchise taxes. In assessing the need for a valuation allowance, management considers whether it is more likely than not that some portion or all of the net deferred tax assets will be utilized to offset future tax liabilities. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. As of June&#160;30, 2014, the Company provided a full valuation allowance of approximately $16.0&#160;million against its net deferred tax assets.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Uncertain Tax Positions</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The Company&#8217;s change in uncertain tax benefit reserves during 2014 and 2013 were as follows (in thousands):</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table align="center" style="font: 9pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">2014</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">2013</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 932px; font-weight: bold;">Balance at July 1</td> <td style="width: 14px;">&#160;</td> <td style="width: 14px; text-align: left;">$</td> <td style="width: 160px; text-align: right;">68</td> <td style="width: 13px; text-align: left;">&#160;</td> <td style="width: 13px; font-weight: bold;">&#160;</td> <td style="width: 13px; text-align: left; font-weight: bold;">$</td> <td style="width: 159px; text-align: right; font-weight: bold;">64</td> <td style="width: 13px; text-align: left; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Additions for tax positions of current period</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Additions for tax positions of prior years</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">4</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">4</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1pt;">Decreases for tax positions of prior years</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 2.5pt; font-weight: bold;">Balance at June 30</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">72</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">68</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">As of June 30, 2014, total uncertain tax positions related to state income taxes amounted to $72,000. Should the tax positions prove successful, the Company&#8217;s tax expense would be reduced by $47,000 (net of federal benefit). &#160;We recognize interest and penalties related to income tax matters in income tax expense. During the years ended June 30, 2014 and 2013, we recognized interest expense related to uncertain tax positions of approximately $4,000 and $4,000, respectively.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b>(14) Commitments and Contingencies</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">In addition to the term loan (see Note 7), the Company is obligated under non-cancelable operating leases for equipment, office space and the land for a payload processing facility. Future minimum payments under the term loan and non-cancelable operating leases are as follows (in thousands):</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table align="center" style="font: 9pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: left; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-size: 8pt;">Year ending June 30,</font></td> <td style="font-size: 8pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 8pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 100%; text-align: left;">2015</td> <td style="width: 13px;">&#160;</td> <td style="width: 12px; text-align: left;">$</td> <td style="width: 150px; text-align: right;">5,955</td> <td style="width: 12px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">2016</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">338</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">2017</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">167</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">2018</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">172</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">2019</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">5</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1pt;">2020 and thereafter</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">Total</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">6,637</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">Rent expense was approximately $0.3 million for the year ended June&#160;30, 2014 and approximately $0.7 million for the year ended June 30, 2013. The Company received sublease payments of $0.1&#160;million for the year ended June 30, 2013. No sublease payments were received for the year ended June 30, 2014.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">ASO presently leases the 60-acre site located on VAFB in California, where we own four buildings totaling over 50,000 square feet of space. The Company has extended the original land lease, which expired in September&#160;2013. The new lease expires in September 2018, with provisions to extend the lease at the request of the lessee and the concurrence of the lessor. There are no required payments on this land lease as part of the new lease agreement. Upon final expiration of the land lease, all improvements on the property revert, at the lessor&#8217;s option, to the lessor at no cost. However, this land lease, as extended, requires the tenant to remove the buildings and restore the land to its original condition at the end of the lease term. If ASO fails to remove the buildings and restore the land, the government may accept the buildings and other improvement on the land in lieu of such removal and restoration.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">1<sup>st</sup>&#160;Detect presently leases a premises consisting of approximately 15,761 square feet in the city of Webster, Texas. The lease began in May 2013 and expires in June 2018, with provisions to renew and extend the lease for the entire premises, but not less than the entire premises, for two renewal terms of five years each. 1<sup>st</sup>&#160;Detect must in writing advise the landlord of its intention to renew the lease at least six months before the expiration of its current lease in order to renew the lease.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Legal Proceedings</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">We are party from time to time to certain claims, litigation, audits and investigations. Potential liabilities associated with these types of proceedings could have a material impact on our financial position, results of operations or cash flows.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">On January 10, 2013, a lawsuit was filed 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 alleged various breaches of contract claims in connection with his termination from the Company on August 3, 2012. On April 28, 2014, the Company reached a settlement of all claims asserted by Mr. Porter in this lawsuit.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">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 alleged, 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&#8217;s common stock. On February 25, 2014 the Texas Court of Appeals dismissed this lawsuit.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">Astrotech was named as a party to a suit filed in the Circuit Court of the Eighteenth Judicial Circuit for Brevard County, Florida. This is an action for foreclosure of certain real estate and for debt. The Company is named as a party because it holds an inferior lien against the property at issue and must be named in the foreclosure action. No monetary relief was requested from Astrotech.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>State of Texas Funding</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 11pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-size: 10pt;">In March&#160;2010, the Texas Emerging Technology Fund awarded 1</font><font style="font-size: 10pt;"><sup>st</sup></font><font style="font-size: 10pt;">&#160;Detect $1.8&#160;million for the development and marketing of the Miniature Chemical Detector, a portable mass spectrometer designed to serve the industrial, environmental, security and healthcare markets (see Note 15). As of June&#160;30, 2012, 1</font><font style="font-size: 10pt;"><sup>st</sup></font><font style="font-size: 10pt;">&#160;Detect had received $1.8 million in disbursements. The disbursed amount of $1.8&#160;million represents a contingency through March&#160;2020, the date of cancellation. If an event of default should occur, the Company would calculate and expense accrued interest and reclassify principal from equity to notes payable in the consolidated financial statements as amounts due to the State of Texas.&#160;See Note 15 for further discussion.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Employment Contracts</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The Company has entered into employment contracts with certain of its key executives. Generally, certain amounts may become payable in the event the Company terminates the executives&#8217; employment.</p> 35480000 30300000 36132000 2730000 2788000 -151655000 -151840000 1582000 987000 -237000 -237000 183712000 183782000 1800000 -156800000 1671000 -237000 183866000 18823000 19470000 19544000 31000 31000 646000 6000 640000 40000 -30000 70000 42000 -42000 84000 119000 66000 528000 596000 -596000 1000000 -1000000 <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b>(2)&#160;Summary of Significant Accounting Policies</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Principles of Consolidation and Basis of Presentation</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The consolidated financial statements include the accounts of Astrotech Corporation and its majority-owned subsidiaries that are required to be consolidated. All significant intercompany transactions have been eliminated in consolidation.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Use of Estimates</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that directly affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Credit Risk</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The Company maintains funds in bank accounts that, at times, may exceed the limit insured by the Federal Deposit Insurance Corporation, or &#8220;FDIC.&#8221; In October&#160;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.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Revenue Recognition</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">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.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">Revenue generated by Astrotech&#8217;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 construction 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.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b>A Summary of Revenue Recognition Methods</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 9pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 439px; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font: 9pt/normal 'times new roman', times, serif;"><b>Services/Products Provided</b></font></td> <td style="width: 16px;">&#160;</td> <td style="width: 439px; text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font: 9pt/normal 'times new roman', times, serif;"><b>Contract Type</b></font></td> <td style="width: 15px;">&#160;</td> <td style="width: 658px; text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font: 9pt/normal 'times new roman', times, serif;"><b>Method of Revenue Recognition</b></font></td> </tr> <tr style="vertical-align: top; background-color: #cceeff;"> <td style="font-size: 9.5pt;"><font style="font: 9.5pt/normal 'times new roman', times, serif;">Payload Processing Facilities</font></td> <td style="font-size: 9.5pt;">&#160;</td> <td style="font-size: 9.5pt;"><font style="font: 9.5pt/normal 'times new roman', times, serif;">Firm Fixed Price &#8212; Mission Specific</font></td> <td style="font-size: 9.5pt;">&#160;</td> <td style="font-size: 9.5pt;"><font style="font: 9.5pt/normal 'times new roman', times, serif;">Ratably, over the occupancy period of a satellite within the facility from arrival through launch</font></td> </tr> <tr style="vertical-align: top; background-color: white;"> <td style="font-size: 9.5pt;">&#160;</td> <td style="font-size: 9.5pt;">&#160;</td> <td style="font-size: 9.5pt;">&#160;</td> <td style="font-size: 9.5pt;">&#160;</td> <td style="font-size: 9.5pt;">&#160;</td> </tr> <tr style="vertical-align: top; background-color: #cceeff;"> <td style="font-size: 9.5pt;"><font style="font: 9.5pt/normal 'times new roman', times, serif;">Construction Contracts</font></td> <td style="font-size: 9.5pt;">&#160;</td> <td style="font-size: 9.5pt;"><font style="font: 9.5pt/normal 'times new roman', times, serif;">Firm Fixed Price</font></td> <td style="font-size: 9.5pt;">&#160;</td> <td style="font-size: 9.5pt;"><font style="font: 9.5pt/normal 'times new roman', times, serif;">Percentage-of-completion based on costs incurred</font></td> </tr> <tr style="vertical-align: top; background-color: white;"> <td style="font-size: 9.5pt;">&#160;</td> <td style="font-size: 9.5pt;">&#160;</td> <td style="font-size: 9.5pt;">&#160;</td> <td style="font-size: 9.5pt;">&#160;</td> <td style="font-size: 9.5pt;">&#160;</td> </tr> <tr style="vertical-align: top; background-color: #cceeff;"> <td style="font-size: 9.5pt;"><font style="font: 9.5pt/normal 'times new roman', times, serif;">Engineering Services</font></td> <td style="font-size: 9.5pt;">&#160;</td> <td> <p style="font: 9.5pt/normal 'times new roman', times, serif; margin: 0pt 0px;">Cost Reimbursable</p> <p style="font: 9.5pt/normal 'times new roman', times, serif; margin: 0pt 0px;">Award/Fixed Fee</p> </td> <td style="font-size: 9.5pt;">&#160;</td> <td style="font-size: 9.5pt;"><font style="font: 9.5pt/normal 'times new roman', times, serif;">Reimbursable costs incurred plus award/fixed fee</font></td> </tr> </table> <p style="font: 11pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 9pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top; background-color: #cceeff;"> <td style="width: 439px; font-size: 9.5pt;"><font style="font: 9.5pt/normal 'times new roman', times, serif;">Commercial Products</font></td> <td style="width: 16px; font-size: 9.5pt;">&#160;</td> <td style="width: 439px;"> <p style="font: 9.5pt/normal 'times new roman', times, serif; margin: 0pt 0px;">Specific Purchase</p> <p style="font: 9.5pt/normal 'times new roman', times, serif; margin: 0pt 0px;">Order Based</p> </td> <td style="width: 15px; font-size: 9.5pt;">&#160;</td> <td style="width: 658px; font-size: 9.5pt;"><font style="font: 9.5pt/normal 'times new roman', times, serif;">At shipment</font></td> </tr> <tr style="vertical-align: top; background-color: white;"> <td style="font-size: 9.5pt;">&#160;</td> <td style="font-size: 9.5pt;">&#160;</td> <td style="font-size: 9.5pt;">&#160;</td> <td style="font-size: 9.5pt;">&#160;</td> <td style="font-size: 9.5pt;">&#160;</td> </tr> <tr style="vertical-align: top; background-color: #cceeff;"> <td style="font-size: 9.5pt;"><font style="font: 9.5pt/normal 'times new roman', times, serif;">Grant</font></td> <td style="font-size: 9.5pt;">&#160;</td> <td> <p style="font: 9.5pt/normal 'times new roman', times, serif; margin: 0pt 0px;">Cost Reimbursable</p> <p style="font: 9.5pt/normal 'times new roman', times, serif; margin: 0pt 0px;">Award</p> </td> <td style="font-size: 9.5pt;">&#160;</td> <td style="font-size: 9.5pt;"><font style="font: 9.5pt/normal 'times new roman', times, serif;">As costs are incurred for related research and development expenses</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>&#160;</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Deferred Revenue</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">Deferred revenue represents amounts collected from customers for projects, products, or services expected to be provided at a future date. Deferred revenue is shown on the balance sheet as either a short-term or long-term liability, depending on when the service or product is expected to be provided.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>&#160;</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Multiple Element Arrangements</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>&#160;</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">We evaluate new or significantly modified contracts with customers to the extent the contracts includes multiple elements, to determine if the individual deliverables should be accounted for as separate units of accounting. When we determine that accounting for the deliverables as separate units is appropriate, we allocate the contract value to the deliverables based on their contract stated prices. The contracts or contract modifications we evaluate for multiple elements may be both short and long-term in nature for services to be performed. Based on the nature of our business, we generally account for components of such contracts using the percentage-of-completion accounting model.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Research and Development</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">Research and development costs are expensed as incurred.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Net Loss Per Share</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">Basic net loss&#160;per share is calculated by dividing net loss&#160;by the weighted average number of common shares outstanding during the period. Diluted net loss&#160;per share includes all common stock options and other common stock equivalents that potentially may be issued as a result of conversion privileges (see Note 12).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Cash and Cash Equivalents</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The Company considers short-term investments with original maturities of three months or less to be cash equivalents. Cash equivalents are comprised primarily of operating cash accounts, money market investments and certificates of deposits.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Accounts Receivable</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The carrying value of the Company&#8217;s accounts receivable, net of the allowance for doubtful accounts, represents their estimated net realizable value. We estimate the allowance for doubtful accounts based on type of customer, age of outstanding receivable, historical collection trends, and existing economic conditions. If events or changes in circumstances indicate that a specific receivable balance may be unrealizable, further consideration is given to the collectability of those balances, and the allowance is adjusted accordingly. Receivable balances deemed uncollectible are written off against the allowance.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Property and Equipment</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">Property and equipment are stated at cost. All furniture, fixtures, and equipment are depreciated using the straight-line method over the estimated useful lives of the respective assets, which is generally five years. Our payload processing facilities are depreciated using the straight-line method over their estimated useful lives ranging from 16 to 40&#160;years. Leasehold improvements are amortized over the shorter of the useful life of the improvement or the term of the lease. Repairs and maintenance are expensed when incurred.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">As required by our customers, we purchase equipment or enhance our facilities to meet specific customer requirements. These enhancements or equipment purchases are compensated through our contract with the customer. The difference between the amount reimbursed and the cost of the enhancements is recognized as revenue.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Deferred Financing Costs</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">Deferred financing costs represent loan origination fees paid to the lender and related professional fees. These costs are amortized on a straight-line basis over the term of the respective loan agreements which approximates the interest method.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Impairment of Long-Lived Assets</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">We review long-lived assets and certain identifiable intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Notes Receivable</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The carrying value of the Company&#8217;s notes receivable, net of the allowance for doubtful accounts, represents their estimated net realizable value. We estimate the allowance for doubtful accounts based on type of customer, age of outstanding notes receivable, historical collection trends, and existing economic conditions. If events or changes in circumstances indicate that a specific receivable balance may be unrealizable, further consideration is given to the collectability of those balances, and the allowance is adjusted accordingly. Notes receivable balances deemed uncollectible are written off against the allowance and note receivable balances deemed less than likely to be fully collected at maturity are reserved. In fiscal year 2014, we adjusted the reserve of a note receivable that was fully reserved for in fiscal 2012 and wrote-off the remaining uncollectible balance. The adjustment was not material to our financial statements.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Fair Value of Financial Instruments</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">Our financial instruments consist of cash and cash equivalents, accounts receivable, notes receivable, accounts payable, notes payable and accrued liabilities. The carrying amounts of these assets and liabilities, in the opinion of Company&#8217;s management, approximate their fair value.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b>Operating Leases</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The Company leases space under operating leases. Lease agreements often include tenant improvement allowances, rent holidays and rent escalation clauses, as defined in the respective lease agreements. Most of the Company&#8217;s lease agreements include renewal periods at the Company&#8217;s option. The Company recognizes rent holiday periods, tenant improvement allowances and scheduled rent increases on a straight-line basis over the lease term beginning with the date the Company takes possession of the leased property. The Company records tenant improvement allowances and rent holidays as deferred rent liabilities on the consolidated balance sheets and amortize the deferred rent over the terms of the lease to rent expense on the consolidated statements of operations.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Share-Based Compensation</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The Company accounts for share-based awards to employees based on the fair value of the award on the grant date. The fair value of the stock options is estimated using expected dividend yields of the Company&#8217;s stock, the expected volatility of the stock, the expected length of time the options remain outstanding and risk-free interest rates. Changes in one or more of these factors may significantly affect the estimated fair value of the stock options. The Company estimates forfeitures using historical forfeiture rates for previous grants of equity instruments. The fair value of awards that are expected to vest is recorded as an expense over the vesting period.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Noncontrolling Interest</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">Noncontrolling interest accounting is applied for any entities where the Company maintains more than 50% and less than 100% ownership. The Company clearly identifies the noncontrolling interest in the balance sheets and income statements. We also disclose three measures of net 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 earnings per share calculations reflect net loss attributable to Astrotech Corporation.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The remaining noncontrolling interest balance of $1.8 million at June 30, 2014 represents an interest by the State of Texas Emerging Technology Fund more fully discussed in Note 15.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>State of Texas Funding</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 11pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-size: 10pt;">The Company accounts for the State of Texas funding in its majority owned subsidiary 1</font><font style="font-size: 10pt;"><sup>st</sup></font><font style="font-size: 10pt;">&#160;Detect as a contribution of capital and has reflected the disbursement in the equity section of the consolidated balance sheet. While the award agreement includes both a common stock purchase right and a note payable to the State of Texas, the economic substance of the transaction is that the State of Texas has purchased shares of 1</font><font style="font-size: 10pt;"><sup>st</sup></font><font style="font-size: 10pt;">&#160;Detect in exchange for the granted award (see Notes 15 and 19).</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 11pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-size: 10pt;">The common stock purchase right gives the State of Texas the ability to purchase common stock in 1</font><font style="font-size: 10pt;"><sup>st</sup></font><font style="font-size: 10pt;">&#160;Detect, at par value per share, at the earlier of: (1)&#160;the first Qualifying Financing Event or (2)&#160;eighteen months (recent extensions were granted by the State of Texas, see Note 15). As of June&#160;30, 2014, no Qualifying Financing Event has occurred.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 11pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-size: 10pt;">There are no cash payments due under the note unless there is an event of default, and the terms that allow for the note to be cancelled after the passage of a set amount of time. The purpose of the note is to provide recourse for the State of Texas if 1<sup>st</sup>&#160;Detect fails to fulfill the purpose of the grant, which is primarily to provide for economic development within the State of Texas. If an event of default should occur, the Company would calculate and expense accrued interest and reclassify principal from equity to notes payable in the consolidated financial statements as amounts due to the State of Texas. Management considers the likelihood of an event of default to be remote due to the fact that the covenants that would necessitate repayment are within the control of the Company. On June 13, 2014, the Texas Emerging Technology Fund Agreement was amended to extend the deadline and to also relinquish the purchase rights that were previously set to survive repayment of the note payable. The previous deadline of June 30 required that 1<sup>st&#160;</sup>Detect raise at least $500,000 in equity capital by June 30, 2014. If this was not accomplished, the investment would convert into an equity stake that provided for significant dilution to 1<sup>st&#160;</sup>Detect shareholders. As of June&#160;30, 2014, no default events had occurred (see Notes 15 and 19).</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Income Taxes</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The Company accounts for income taxes under the liability method, whereby deferred tax asset or liability account balances are determined based on the difference between the financial statement and the tax bases of assets and liabilities using current tax laws and rates in effect for the year in which the differences are expected to affect taxable income. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. A valuation allowance is established when it is more likely than not that some portion or all of the deferred tax assets will not be realized.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Accounting Pronouncements</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">In May 2014, the FASB issued FASB ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC 605,&#160;<i>Revenue Recognition</i>. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a five-step process to achieve that core principle. ASU 2014-09 requires disclosures enabling users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, using one of two retrospective application methods. Early application is not permitted. The Company is currently evaluating the effect that the adoption of this ASU will have on its financial statements.</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;"><b>(4) Accounts Receivable</b></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;"></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;">As of June 30, 2014, and 2013, accounts receivable consisted of the following (in thousands):</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;"></p> <table align="center" style="font: 9pt/normal times new roman, times, serif; width: 95%; border-collapse: collapse; font-size-adjust: none; font-stretch: normal;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt;"> </font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">2014</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">2013</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">U.S. Government contracts:</td> <td></td> <td style="text-align: left;"></td> <td style="text-align: right;"></td> <td style="text-align: left;"></td> <td></td> <td style="text-align: left;"></td> <td style="text-align: right;"></td> <td style="text-align: left;"></td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="width: 74%;">Billed</td> <td style="width: 1%; font-size: 10pt;"></td> <td style="width: 1%; text-align: left; font-size: 10pt;">$</td> <td style="width: 10%; text-align: right; font-size: 10pt;">&#8212;</td> <td style="width: 1%; text-align: left; font-size: 10pt;"></td> <td style="width: 1%;"></td> <td style="width: 1%; text-align: left;">$</td> <td style="width: 10%; text-align: right;">1,013</td> <td style="width: 1%; text-align: left;"></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 1pt;">Unbilled</td> <td style="padding-bottom: 1pt;"></td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,169</td> <td style="text-align: left; padding-bottom: 1pt;"></td> <td style="padding-bottom: 1pt;"></td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,976</td> <td style="text-align: left; padding-bottom: 1pt;"></td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1pt;">Total U.S. Government contracts</td> <td style="padding-bottom: 1pt;"></td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,169</td> <td style="text-align: left; padding-bottom: 1pt;"></td> <td style="padding-bottom: 1pt;"></td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">2,989</td> <td style="text-align: left; padding-bottom: 1pt;"></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td>&#160;</td> <td></td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;"></td> <td></td> <td style="text-align: left;"></td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;"></td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Commercial contracts:</td> <td></td> <td style="text-align: left;"></td> <td style="text-align: right;"></td> <td style="text-align: left;"></td> <td></td> <td style="text-align: left;"></td> <td style="text-align: right;"></td> <td style="text-align: left;"></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td>Billed</td> <td></td> <td style="text-align: left;">$</td> <td style="text-align: right;">99</td> <td style="text-align: left;"></td> <td></td> <td style="text-align: left;">$</td> <td style="text-align: right;">2,076</td> <td style="text-align: left;"></td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 1pt;">Unbilled</td> <td style="padding-bottom: 1pt;"></td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">11</td> <td style="text-align: left; padding-bottom: 1pt;"></td> <td style="padding-bottom: 1pt;"></td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">252</td> <td style="text-align: left; padding-bottom: 1pt;"></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 1pt;">Total commercial contracts</td> <td style="padding-bottom: 1pt;"></td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">110</td> <td style="text-align: left; padding-bottom: 1pt;"></td> <td style="padding-bottom: 1pt;"></td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">2,328</td> <td style="text-align: left; padding-bottom: 1pt;"></td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>&#160;</td> <td></td> <td style="text-align: left;"></td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;"></td> <td></td> <td style="text-align: left;"></td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;"></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">Total accounts receivable</td> <td style="padding-bottom: 2.5pt; font-weight: bold;"></td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,279</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;"></td> <td style="padding-bottom: 2.5pt; font-weight: bold;"></td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">5,317</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;"></td> </tr> </table> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">The Company anticipates collecting all unreserved receivables within one year. Unbilled accounts receivable represents revenue earned in excess of contracted billing milestones. The accuracy and appropriateness of our direct and indirect costs and expenses under government cost-plus contracts, and therefore, our accounts receivable recorded pursuant to such contracts, are subject to extensive regulation and audit by the U.S. Defense Contract Audit Agency (&#8220;DCAA&#8221;) or by other appropriate agencies of the U.S. Government. Such agencies have the right to challenge our cost estimates or allocations with respect to any government contract. In the opinion of management, any adjustments likely to result from remaining inquiries or audits of its contracts would not have a material adverse impact on our financial condition or results of operations.</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;"></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;">The following table summarizes the changes in our allowance for doubtful accounts (in thousands):</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;"></p> <table align="center" style="font: 9pt/normal times new roman, times, serif; width: 85%; border-collapse: collapse; font-size-adjust: none; font-stretch: normal;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td><font style="font-size: 8pt;"> </font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">2014</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">2013</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 74%; text-align: left; font-weight: bold;">Beginning balance</td> <td style="width: 1%; font-weight: bold;"></td> <td style="width: 1%; text-align: left; font-weight: bold;">$</td> <td style="width: 10%; text-align: right; font-weight: bold;">(58</td> <td style="width: 1%; text-align: left; font-weight: bold;">)</td> <td style="width: 1%; font-size: 11pt;"></td> <td style="width: 1%; text-align: left; font-size: 11pt;"><font style="font-size: 9pt;">$</font></td> <td style="width: 10%; text-align: right; font-size: 11pt;"><font style="font-size: 9pt;">(54</font></td> <td style="width: 1%; text-align: left; font-size: 11pt;"><font style="font-size: 9pt;">)</font></td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Provision for uncollectable accounts, net of recoveries</td> <td></td> <td style="text-align: left;"></td> <td style="text-align: right;">(35</td> <td style="text-align: left;">)</td> <td></td> <td style="text-align: left;"></td> <td style="text-align: right;">(4</td> <td style="text-align: left;">)</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 1pt;">Write- off of uncollectable accounts</td> <td style="padding-bottom: 1pt; font-size: 10pt;"></td> <td style="text-align: left; font-size: 10pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"></td> <td style="text-align: right; font-size: 10pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">93</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"></td> <td style="padding-bottom: 1pt; font-size: 11pt;"></td> <td style="text-align: left; font-size: 11pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"></td> <td style="text-align: right; font-size: 11pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 11pt;"></td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 2.5pt; font-weight: bold;">Ending balance</td> <td style="padding-bottom: 2.5pt; font-size: 10pt;"></td> <td style="text-align: left; font-size: 10pt; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-size: 10pt; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;"></td> <td style="padding-bottom: 2.5pt; font-weight: bold;"></td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">(58</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">)</td> </tr> </table> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;"><b>(5) Property and Equipment</b></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;"></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;">As of June 30, 2014 and 2013, property and equipment consisted of the following (in thousands):</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;"></p> <table align="center" style="font: 9pt/normal times new roman, times, serif; width: 95%; border-collapse: collapse; font-size-adjust: none; font-stretch: normal;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt;"> </font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6"><font style="font-size: 8pt;">June 30,</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt;"> </font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">2014</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">2013</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 66%; text-align: left;">Flight Assets</td> <td style="width: 1%;"></td> <td style="width: 1%; text-align: left;">$</td> <td style="width: 14%; text-align: right;">44,757</td> <td style="width: 1%; text-align: left;"></td> <td style="width: 1%;"></td> <td style="width: 1%; text-align: left;">$</td> <td style="width: 14%; text-align: right;">44,757</td> <td style="width: 1%; text-align: left;"></td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Payload Processing Facilities</td> <td></td> <td style="text-align: left;"></td> <td style="text-align: right;">45,866</td> <td style="text-align: left;"></td> <td></td> <td style="text-align: left;"></td> <td style="text-align: right;">45,866</td> <td style="text-align: left;"></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Furniture, Fixtures, Equipment &amp; Leasehold Improvements</td> <td></td> <td style="text-align: left;"></td> <td style="text-align: right;">20,376</td> <td style="text-align: left;"></td> <td></td> <td style="text-align: left;"></td> <td style="text-align: right;">19,973</td> <td style="text-align: left;"></td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1pt;">Capital Improvements in Progress</td> <td style="padding-bottom: 1pt;"></td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">3</td> <td style="text-align: left; padding-bottom: 1pt;"></td> <td style="padding-bottom: 1pt;"></td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">39</td> <td style="text-align: left; padding-bottom: 1pt;"></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 1pt; font-weight: bold;">Gross Property and Equipment</td> <td style="padding-bottom: 1pt; font-weight: bold;"></td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"></td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">111,002</td> <td style="text-align: left; padding-bottom: 1pt; font-weight: bold;"></td> <td style="padding-bottom: 1pt; font-weight: bold;"></td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"></td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">110,635</td> <td style="text-align: left; padding-bottom: 1pt; font-weight: bold;"></td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1pt;">Accumulated Depreciation</td> <td style="padding-bottom: 1pt;"></td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(75,933</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> <td style="padding-bottom: 1pt;"></td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(73,600</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">Property and Equipment, net</td> <td style="padding-bottom: 2.5pt; font-weight: bold;"></td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">35,069</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;"></td> <td style="padding-bottom: 2.5pt; font-weight: bold;"></td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">37,035</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;"></td> </tr> </table> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">Depreciation and amortization expense of property and equipment for the years ended June 30, 2014 and 2013 was $2.3 million and $2.1 million, respectively.</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"><b>(6) Note Receivable</b></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">On April 28, 2005 the Company consummated the sale and simultaneous leaseback of its Cape Canaveral Florida Spacehab Payload Processing Facility (&#8220;SPPF&#8221;). The sales price of the building was $4.8 million. The Company received $4.1 million in cash of which $0.3 million was used for expenses related to the transaction. The Company also received a note, secured by a second mortgage on the SPPF, for $0.7 million due December 2010. The Company deferred approximately $0.5 million of gain from the sale leaseback transaction and recognized it as an offset to rent expense over the five-year lease term.</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">The Company leased the building back from the owner under an agreement that initially expired on December 31, 2010. In November 2010, the Company renewed its lease with the owner for an additional two year term extending the lease to December 31, 2012. Simultaneously, the Company extended the full repayment date of the note to December 31, 2012.</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">During fiscal year 2012, it was determined the owner of the SPFF did not have sufficient resources to repay the Company&#8217;s note. As a result, the Company recorded a full reserve in fiscal year 2012 against the collection of the note. In December 2013, the owner of the SPPF declared bankruptcy. Subsequently in March 2014, Company management retained an attorney to represent the Company in collecting funds through bankruptcy proceedings. In June 2014, the Company was informed of a settlement, and subsequently adjusted the reserve and wrote-off the remaining uncollectible balance. The adjustment was not material to our financial statements.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b>(10) Common Stock Incentive, Stock Purchase Plans and Other Compensation Plans</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">At June&#160;30, 2014, 3,672,501 shares of Common Stock were reserved for future grants of stock incentive grants under the Company&#8217;s four stock incentive plans.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>The 1994 Plan (&#8220;1994 Plan&#8221;)</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">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 June 30, 2014, 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.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>The Directors&#8217; Stock Option Plan (&#8220;Director&#8217;s Plan&#8221;)</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">Options under the Director&#8217;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 June 30, 2014, there are 44,000 shares available for future grant.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>2008 Stock Incentive Plan (&#8220;2008 Plan&#8221;)</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">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 previously awarded vested upon the Company&#8217;s stock achieving a closing price of $1.63 on October 21, 2013, resulting in incremental compensation expense of $0.6 million. These options 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 June 30, 2014, there are 362,501 shares available for grant under the 2008 Plan.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>&#160;</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>2011 Stock Incentive Plan (&#8220;2011 Plan&#8221;)</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">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. On June 26, 2014, an additional 2,000,000 shares of our common stock were approved 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 previously awarded vested upon the Company&#8217;s stock achieving a closing price of $1.63 on October 21, 2013, resulting in incremental compensation expense of $0.6 million. These options expire ten years from the grant date or upon employee or director termination. There have been no SARs or restricted stock granted from the 2011 Plan. As of June 30, 2014, there are 3,266,000 shares available for grant under the 2011 Plan.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Stock Option Activity Summary</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The Company&#8217;s stock option activity for year ended June&#160;30, 2013 and 2014 was as follows:</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table align="center" style="font: 9pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="2"><font style="font-size: 8pt;">Shares</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="2"><font style="font-size: 8pt;">Weighted Average</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">(in thousands)</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">Exercise Price</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 952px;">Outstanding at June&#160;30, 2012</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 202px; text-align: right;">1,141</td> <td style="width: 14px; text-align: left;">&#160;</td> <td style="width: 14px;">&#160;</td> <td style="width: 14px; text-align: left;">$</td> <td style="width: 201px; text-align: right;">0.79</td> <td style="width: 14px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>Granted</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">330</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1.20</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td>Exercised</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">(119</td> <td style="text-align: left;">)</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.34</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1pt;">Cancelled or expired</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(177</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">0.85</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 2.5pt;">Outstanding at June&#160;30, 2013</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,175</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">0.94</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>Exercised</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">(66</td> <td style="text-align: left;">)</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.64</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 1pt;">Cancelled or expired</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(234</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1.75</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 2.5pt;">Outstanding at June&#160;30, 2014</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">875</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">0.91</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The aggregate intrinsic value of options exercisable at June&#160;30, 2014 was $2.1&#160;million as the fair value of the Company&#8217;s common stock is more than the exercise prices of these options.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table align="center" style="font: 9pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-size: 8pt;">Range of exercise prices</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">Number&#160;<br />Outstanding</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">Options&#160;<br />Outstanding&#160;<br />Weighted-&#160;<br />Average&#160;<br />Remaining&#160;<br />Contractual&#160;<br />Life (years)</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">Weighted-&#160;<br />Average&#160;<br />Exercise&#160;<br />Price</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">Number&#160;<br />Exercisable</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">Options&#160;<br />Exercisable&#160;<br />Weighted-&#160;<br />Average&#160;<br />Exercise&#160;<br />Price</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 521px;">$0.32 &#8211; 0.45</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 149px; text-align: right;">216,250</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 149px; text-align: right;">3.36</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">$</td> <td style="width: 149px; text-align: right;">0.38</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 149px; text-align: right;">216,250</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 14px; text-align: left;">$</td> <td style="width: 148px; text-align: right;">0.38</td> <td style="width: 14px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>$0.71 &#8211; 0.71</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">331,500</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">6.20</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.71</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">331,500</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.71</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 1pt;">$1.20 &#8211; 24.10</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">327,000</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">6.79</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1.47</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">327,000</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1.47</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 2.5pt;">$0.32 &#8211; 24.10</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">874,750</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">5.72</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">0.91</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">874,750</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">0.91</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">Compensation costs recognized related to vested stock option awards during the year ended June&#160;30, 2014, and 2013 was $0.6 million and $0.1&#160;million, respectively. At June&#160;30, 2014 and 2013, there was $0.0 million and $0.5 million, respectively, of total unrecognized compensation cost related to non-vested stock option awards.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Restricted Stock</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">At June&#160;30, 2014, and 2013, there was $1,000 and $0.1&#160;million of unrecognized compensation costs related to restricted stock, respectively, which is expected to be recognized over a weighted average period of 0.15&#160;years.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The Company&#8217;s restricted stock activity for the year ended June&#160;30, 2013 and 2014, was as follows:</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table align="center" style="font: 9pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">Shares&#160;<br />(in thousands)</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">Weighted&#160;<br />Average&#160;<br />Grant-Date&#160;<br />Fair Value</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1075px;">Non-vested at June&#160;30, 2012</td> <td style="width: 16px;">&#160;</td> <td style="width: 16px; text-align: left;">&#160;</td> <td style="width: 184px; text-align: right;">678</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">$</td> <td style="width: 184px; text-align: right;">1.12</td> <td style="width: 15px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>Vested</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">(528</td> <td style="text-align: left;">)</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1.13</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 1pt;">Cancelled or expired</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(133</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1.15</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 2.5pt;">Non-vested at June&#160;30, 2013</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">17</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">0.75</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td>Vested</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">(9</td> <td style="text-align: left;">)</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.75</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1pt;">Cancelled or expired</td> <td style="padding-bottom: 1pt; font-size: 11pt;">&#160;</td> <td style="text-align: left; font-size: 11pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; font-size: 11pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 11pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 11pt;">&#160;</td> <td style="text-align: left; font-size: 11pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; font-size: 11pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 11pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 2.5pt;">Non-vested at June&#160;30, 2014</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">8</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">0.75</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 11pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-size: 10pt;"><b><i>Stock Options 1</i></b></font><b><i><font style="font-size: 10pt;"><sup>st</sup></font></i></b><font style="font-size: 10pt;">&#160;<b><i>Detect</i></b></font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">At June 30, 2014 and 2013, there was $0.0 million and $0.1 million of unrecognized compensation costs related to options and warrants, respectively. These options and warrants were cancelled as of June 11, 2014.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The Company&#8217;s stock activity for the year ended June 30, 2013 and 2014 was as follows:</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table align="center" style="font: 9pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt;" colspan="2"><font style="font-size: 8pt;">&#160;<b>Shares</b></font></td> <td style="font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="2"><font style="font-size: 8pt;">Weighted&#160;Average</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">(in thouasands)</td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">Exercise Price</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 100%;">Outstanding at June&#160;30, 2011</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 179px; text-align: right;">2,730</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">$</td> <td style="width: 178px; text-align: right;">212.00</td> <td style="width: 14px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1pt;">Cancelled or expired</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(255</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">212.00</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 2.5pt;">Outstanding at June&#160;30, 2012</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">2,475</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">212.00</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1pt;">Cancelled, forfeited or expired</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(2,475</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">212.00</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 2.5pt;">Outstanding at June&#160;30, 2013</td> <td style="padding-bottom: 2.5pt; font-size: 11pt;">&#160;</td> <td style="text-align: left; font-size: 11pt; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; font-size: 11pt; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt; font-size: 11pt;">&#160;</td> <td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-size: 10pt; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 11pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-size: 10pt;"><b><i>Restricted Stock 1</i></b></font><b><i><font style="font-size: 10pt;"><sup>st</sup></font></i></b><font style="font-size: 10pt;">&#160;<b><i>Detect</i></b></font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">As of June 11, 2014 the awards were effectively cancelled. At June&#160;30, 2013 the awards were fully vested and there was no additional compensation expense to be recognized related to restricted stock.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Stock Options Astrogenetix</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>&#160;</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">As of June 11, 2014 the awards were effectively cancelled. At June 30, 2013 the warrants were fully vested and there was no additional compensation expense to be recognized related to warrants.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The Company&#8217;s stock options activity for the year ended June 30, 2014 was as follows:</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table align="center" style="font: 9pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt;" colspan="2"><font style="font-size: 8pt;"><b>&#160;Shares</b></font></td> <td style="font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="2"><font style="font-size: 8pt;">Weighted&#160;Average</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">(in thouasands)</td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">Exercise Price</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 100%;">Outstanding at June&#160;30, 2012</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 179px; text-align: right;">2,000</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">$</td> <td style="width: 178px; text-align: right;">167.00</td> <td style="width: 14px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1pt;">Cancelled or expired</td> <td style="padding-bottom: 1pt; font-size: 11pt;">&#160;</td> <td style="text-align: left; font-size: 11pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; font-size: 11pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 11pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 11pt;">&#160;</td> <td style="text-align: left; font-size: 11pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; font-size: 11pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 11pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 2.5pt;">Outstanding at June&#160;30, 2013</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">2,000</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">167.00</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1pt;">Cancelled, forfeited or expired</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(2,000</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">167.00</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 2.5pt;">Outstanding at June&#160;30, 2014</td> <td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; font-size: 10pt; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-size: 10pt; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Restricted Stock Astrogenetix</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">As of June 11, 2014 the awards were effectively cancelled. At June&#160;30, 2013 the awards were fully vested and there was no additional compensation expense to be recognized related to restricted stock.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>&#160;</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Fair Value of Stock-Based Compensation</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">Stock-based compensation costs are generally based on the fair value calculated from the Black-Scholes or Binomial option-pricing model on the date of grant for stock options.&#160;&#160;The fair values of stock options are amortized as compensation expense on a straight-line basis over the vesting period of the grants. No grants were issued for the year ended June 30, 2014. The assumptions used for the year ended June 30, 2013 are summarized in the following table:</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table align="center" style="font: 9pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="6"><font style="font-size: 8pt;">Astrotech</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="6"><font style="font-size: 8pt;">Year ended&#160;<br />June 30,</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6"><font style="font-size: 8pt;">2013</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1119px; text-align: left;">Expected Dividend Yield</td> <td style="width: 14px; font-size: 10pt;">&#160;</td> <td style="width: 14px; text-align: left; font-size: 10pt;">&#160;</td> <td style="width: 13px; text-align: right; font-size: 10pt;"></td> <td style="width: 13px; text-align: left; font-size: 10pt;"></td> <td style="width: 13px;">&#160;</td> <td style="width: 13px; text-align: left;">&#160;</td> <td style="width: 119px; text-align: right;">0</td> <td style="width: 13px; text-align: left;">%</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Expected Volatility</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;"></td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.71</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Risk-Free Interest Rates</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;"></td> <td style="text-align: left; font-size: 10pt;"></td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.20</td> <td style="text-align: left;">%</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Expected Option Life (in years)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;"></td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">10.00</td> <td style="text-align: left;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0pt; margin-bottom: 0pt; word-spacing: 0px; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 20.15pt;"></td> <td style="width: 20.15pt;"><b>&#8226;</b></td> <td style="text-align: justify;">The expected dividend yield is based on our current dividend yield and the best estimate of projected dividend yield for future periods within the expected life of the option, which is currently 0%.</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 40.3pt; text-align: justify; color: #000000; text-transform: none; text-indent: -20.15pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0pt; margin-bottom: 0pt; word-spacing: 0px; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 20.15pt;"></td> <td style="width: 20.15pt;"><b>&#8226;</b></td> <td style="text-align: justify;">We estimated volatility using our historical share price performance over the last two years. Management believes the historical estimated volatility is materially indicative of expectations about expected future volatility.</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 40.3pt; text-align: justify; color: #000000; text-transform: none; text-indent: -20.15pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0pt; margin-bottom: 0pt; word-spacing: 0px; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 20.15pt;"></td> <td style="width: 20.15pt;"><b>&#8226;</b></td> <td style="text-align: justify;">The estimate of the risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant.</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 40.3pt; text-align: justify; color: #000000; text-transform: none; text-indent: -20.15pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0pt; margin-bottom: 0pt; word-spacing: 0px; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 20.15pt;"></td> <td style="width: 20.15pt;"><b>&#8226;</b></td> <td style="text-align: justify;">The expected life is calculated using the contractual term of the options as well as an analysis of the Company&#8217;s historical exercises of stock options.</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px 0pt 40.3pt; text-align: justify; color: #000000; text-transform: none; text-indent: -20.15pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Securities Repurchase Program</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">In March&#160;2009, the Company repurchased 300,000 shares of Common Stock at a price of $0.40 per share, pursuant to the securities repurchase program. As of June&#160;30, 2011, we had repurchased 311,660 share of Common Stock at a cost of $0.2&#160;million, which represents an average cost of $0.76 per share, and $1.1&#160;million of Senior Convertible Notes. As a result, the Company is authorized to repurchase an additional $5.7&#160;million of securities under this program.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">Common stock repurchases under the Company&#8217;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.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Incentive Compensation</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">At June 30, 2014 and 2013, the Company had accrued $1.1 million and $0.4 million, respectively, as part of its incentive compensation.</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"><b>(13) Employee Benefit Plans</b></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">We have a defined contribution retirement plan, which covers substantially all employees and officers. For the years ended June 30, 2014 and 2013, we have contributed the required match of $0.2 million and $0.2 million, respectively, to the plan. We have the right, but not an obligation, to make additional contributions to the plan in future years at the discretion of the Company&#8217;s Board of Directors. We have not made any additional contributions for the years ended June 30, 2014 and 2013.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b>(17)&#160;Related Party Transactions</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">On April 15, 2014, 1<sup>st</sup>&#160;Detect entered into an agreement with a 3<sup>rd</sup>&#160;party for which Thomas B. Pickens, III, the Company&#8217;s CEO, holds a&#160;nominal&#160;investment. The 3<sup>rd</sup>&#160;party agreement includes a 12 month technology license agreement in the amount of $100,000 and a 12 month professional services agreement in the amount of $80,000.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b>(18) NASDAQ Listing Qualifications</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b>&#160;</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">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, for which the Company received 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. On October 30, 2013, we received written notification from NASDAQ that for the previous 10 business days, from October 16, 2013 to October 29, 2013, the closing bid price of the Company&#8217;s common stock had been at $1.00 per share or greater and the Company had regained compliance with NASDAQ Listing Rule 5550(a)(2).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b>(19) Subsequent Events</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><i>Sale of Astrotech Space Operations business (&#8220;Asset Sale&#8221;)</i></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">On May 28, 2014, the Company entered into a definitive agreement to sell the assets constituting its Astrotech Space Operations business to Lockheed Martin Corporation, including the assets of its wholly owned subsidiary, Astrotech Space Operations, for $61.0 million. The Asset Sale was approved by shareholder vote on August 20, 2014 in a special meeting held at the Company headquarters in Austin, TX. Additionally, the stockholders approved by non-binding advisory vote certain compensation arrangements for the Company&#8217;s named executive officers in connection with the Asset Sale.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The following table summarizes the carrying amounts of the major classes of assets and liabilities at June 30, 2014, that were disposed of as part of the Asset Sale, which represented 100% of our ASO segment (in thousands):</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1317px;"><font style="font-size: 10pt;"><b>Assets:</b></font></td> <td style="width: 48px;"></td> <td style="width: 15px;"></td> <td style="width: 172px;"></td> <td style="width: 15px;"></td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td><font style="font-size: 10pt;">Accounts receivable</font></td> <td></td> <td><font style="font-size: 10pt;">$</font></td> <td style="text-align: right;"><font style="font-size: 10pt;">1,220</font></td> <td></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td><font style="font-size: 10pt;">Prepaid expenses and other current assets</font></td> <td></td> <td></td> <td style="text-align: right;"><font style="font-size: 10pt;">177</font></td> <td></td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td><font style="font-size: 10pt;">Property and equipment, net</font></td> <td></td> <td style="border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-size: 10pt;">33,858</font></td> <td></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td><font style="font-size: 10pt;"><b>Total assets</b></font></td> <td></td> <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double;"><font style="font-size: 10pt;"><b>$</b></font></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double;"><font style="font-size: 10pt;"><b>35,255</b></font></td> <td></td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td> <p style="margin-top: 0px; margin-bottom: 0px;">&#160;</p> <p style="margin-top: 0px; margin-bottom: 0px;"></p> </td> <td></td> <td></td> <td></td> <td></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td><font style="font-size: 10pt;"><b>Liabilities:</b></font></td> <td></td> <td></td> <td></td> <td></td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td><font style="font-size: 10pt;">Accounts payable</font></td> <td></td> <td><font style="font-size: 10pt;">$</font></td> <td style="text-align: right;"><font style="font-size: 10pt;">184</font></td> <td></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td><font style="font-size: 10pt;">Accrued liabilities and other</font></td> <td></td> <td></td> <td style="text-align: right;"><font style="font-size: 10pt;">628</font></td> <td></td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td><font style="font-size: 10pt;">Deferred revenue</font></td> <td></td> <td style="border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-size: 10pt;">1,110</font></td> <td></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td><font style="font-size: 10pt;"><b>Total liabilities</b></font></td> <td></td> <td style="border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-size: 10pt;"><b>$</b></font></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-size: 10pt;"><b>1,922</b></font></td> <td></td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td> <p style="margin-top: 0px; margin-bottom: 0px;">&#160;</p> <p style="margin-top: 0px; margin-bottom: 0px;"></p> </td> <td></td> <td style="border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"></td> <td></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td><font style="font-size: 10pt;"><b>Net assets</b></font></td> <td></td> <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double;"><font style="font-size: 10pt;"><b>$</b></font></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double;"><font style="font-size: 10pt;"><b>33,333</b></font></td> <td></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><i>Payoff of Term Loan</i></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">On August 22, 2014, the Company used funds from its Asset Sale to pay off the outstanding balance of its term loan of $5.7 million.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><i>&#160;</i></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><i>Payoff of Texas Emerging Technology Fund Award</i></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">On August 27, 2014, the Company used funds from its Asset Sale to settle its funding from the State of Texas Emerging Technology Fund for $2.3 million.</p> P5Y 16 to 40 years 0.86 0.84 2100000 2300000 4800000 4100000 300000 700000 500000 395000 3672501 50000 5500000 1750000 44000 362501 3266000 <div>Stock options previously awarded vested upon the Company's stock achieving a closing price of $1.63 on October 21, 2013, resulting in incremental compensation expense of $0.6 million. These options 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</div> <div>Stock options previously awarded vested upon the Company's stock achieving a closing price of $1.63 on October 21, 2013, resulting in incremental compensation expense of $0.6 million. These options expire ten years from the grant date or upon employee or director termination.</div> 2000000 2100000 100000 600000 600000 600000 100000 500000 100000 0 0 1000 P1M24D 311660 0.40 0.76 200000 1100000 5700000 2500000 40900000 14300000 2035-06-30 14400000 600000 2035-06-30 500000 326000 13000 700000 <div>Should the tax positions prove successful, the Company's tax expense would be reduced by $47,000</div> 4000 4000 1175150 874750 0.32 0.32 24.10 24.10 We have a defined contribution retirement plan, which covers substantially all employees and officers. We have the right, but not an obligation, to make additional contributions to the plan in future years at the discretion of the Company's Board of Directors. 200000 200000 700000 300000 100000 <div>ASO presently leases the 60-acre site located on VAFB in California, where we own four buildings totaling over 50,000 square feet of space. The Company has extended the original land lease, which expired in September 2013. The new lease expires in September 2018, with provisions to extend the lease at the request of the lessee and the concurrence of the lessor.</div> On January 10, 2013, a lawsuit was filed 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 alleged various breaches of contract claims in connection with his termination from the Company on August 3, 2012. On April 28, 2014, the Company reached a settlement of all claims asserted by Mr. Porter in this lawsuit. 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 alleged, 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. On February 25, 2014 the Texas Court of Appeals dismissed this lawsuit. <div><font style="font-family: times new roman,times;" size="2">In March&#160;2010, the Texas Emerging Technology Fund awarded 1<font style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><sup>st</sup></font><font style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;Detect $1.8&#160;million for the development and marketing of the Miniature Chemical Detector, a portable mass spectrometer designed to serve the industrial, environmental, security and healthcare markets.</font></font></div> 0.08 <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"><b><i>Principles of Consolidation and Basis of Presentation</i></b></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">The consolidated financial statements include the accounts of Astrotech Corporation and its majority-owned subsidiaries that are required to be consolidated. All significant intercompany transactions have been eliminated in consolidation.</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"><b><i>Use of Estimates</i></b></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that directly affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates.</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"><b><i>Credit Risk</i></b></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">The Company maintains funds in bank accounts that, at times, may exceed the limit insured by the Federal Deposit Insurance Corporation, or &#8220;FDIC.&#8221; 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.</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"><b><i>Revenue Recognition</i></b></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">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.</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">Revenue generated by Astrotech&#8217;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 construction 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.</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;"></p> <div style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;">&#160;</div> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;"><b>A Summary of Revenue Recognition Methods</b></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;"></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;">&#160;</p> <table style="font: 9pt/normal times new roman, times, serif; width: 100%; border-collapse: collapse; font-size-adjust: none; font-stretch: normal;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 28%; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font: 9pt/normal times new roman, times, serif; font-size-adjust: none; font-stretch: normal;"><b>Services/Products Provided</b></font></td> <td style="width: 1%;"></td> <td style="width: 28%; text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font: 9pt/normal times new roman, times, serif; font-size-adjust: none; font-stretch: normal;"><b>Contract Type</b></font></td> <td style="width: 1%;"></td> <td style="width: 42%; text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font: 9pt/normal times new roman, times, serif; font-size-adjust: none; font-stretch: normal;"><b>Method of Revenue Recognition</b></font></td> </tr> <tr style="vertical-align: top; background-color: #cceeff;"> <td style="font-size: 9.5pt;"><font style="font: 9.5pt/normal times new roman, times, serif; font-size-adjust: none; font-stretch: normal;">Payload Processing Facilities</font></td> <td style="font-size: 9.5pt;"></td> <td style="font-size: 9.5pt;"><font style="font: 9.5pt/normal times new roman, times, serif; font-size-adjust: none; font-stretch: normal;">Firm Fixed Price &#8212; Mission Specific</font></td> <td style="font-size: 9.5pt;"></td> <td style="font-size: 9.5pt;"><font style="font: 9.5pt/normal times new roman, times, serif; font-size-adjust: none; font-stretch: normal;">Ratably, over the occupancy period of a satellite within the facility from arrival through launch</font></td> </tr> <tr style="vertical-align: top; background-color: white;"> <td style="font-size: 9.5pt;"></td> <td style="font-size: 9.5pt;"></td> <td style="font-size: 9.5pt;"></td> <td style="font-size: 9.5pt;"></td> <td style="font-size: 9.5pt;"></td> </tr> <tr style="vertical-align: top; background-color: #cceeff;"> <td style="font-size: 9.5pt;"><font style="font: 9.5pt/normal times new roman, times, serif; font-size-adjust: none; font-stretch: normal;">Construction Contracts</font></td> <td style="font-size: 9.5pt;"></td> <td style="font-size: 9.5pt;"><font style="font: 9.5pt/normal times new roman, times, serif; font-size-adjust: none; font-stretch: normal;">Firm Fixed Price</font></td> <td style="font-size: 9.5pt;"></td> <td style="font-size: 9.5pt;"><font style="font: 9.5pt/normal times new roman, times, serif; font-size-adjust: none; font-stretch: normal;">Percentage-of-completion based on costs incurred</font></td> </tr> <tr style="vertical-align: top; background-color: white;"> <td style="font-size: 9.5pt;"></td> <td style="font-size: 9.5pt;"></td> <td style="font-size: 9.5pt;"></td> <td style="font-size: 9.5pt;"></td> <td style="font-size: 9.5pt;"></td> </tr> <tr style="vertical-align: top; background-color: #cceeff;"> <td style="font-size: 9.5pt;"><font style="font: 9.5pt/normal times new roman, times, serif; font-size-adjust: none; font-stretch: normal;">Engineering Services</font></td> <td style="font-size: 9.5pt;"></td> <td> <p style="font: 9.5pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;">Cost Reimbursable</p> <p style="font: 9.5pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;">Award/Fixed Fee</p> </td> <td style="font-size: 9.5pt;"></td> <td style="font-size: 9.5pt;"><font style="font: 9.5pt/normal times new roman, times, serif; font-size-adjust: none; font-stretch: normal;">Reimbursable costs incurred plus award/fixed fee</font></td> </tr> </table> <p style="font: 11pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;">&#160;</p> <table style="font: 9pt/normal times new roman, times, serif; width: 100%; border-collapse: collapse; font-size-adjust: none; font-stretch: normal;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top; background-color: #cceeff;"> <td style="width: 28%; font-size: 9.5pt;"><font style="font: 9.5pt/normal times new roman, times, serif; font-size-adjust: none; font-stretch: normal;">Commercial Products</font></td> <td style="width: 1%; font-size: 9.5pt;"></td> <td style="width: 28%;"> <p style="font: 9.5pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;">Specific Purchase</p> <p style="font: 9.5pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;">Order Based</p> </td> <td style="width: 1%; font-size: 9.5pt;"></td> <td style="width: 42%; font-size: 9.5pt;"><font style="font: 9.5pt/normal times new roman, times, serif; font-size-adjust: none; font-stretch: normal;">At shipment</font></td> </tr> <tr style="vertical-align: top; background-color: white;"> <td style="font-size: 9.5pt;"></td> <td style="font-size: 9.5pt;"></td> <td style="font-size: 9.5pt;"></td> <td style="font-size: 9.5pt;"></td> <td style="font-size: 9.5pt;"></td> </tr> <tr style="vertical-align: top; background-color: #cceeff;"> <td style="font-size: 9.5pt;"><font style="font: 9.5pt/normal times new roman, times, serif; font-size-adjust: none; font-stretch: normal;">Grant</font></td> <td style="font-size: 9.5pt;"></td> <td> <p style="font: 9.5pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;">Cost Reimbursable</p> <p style="font: 9.5pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;">Award</p> </td> <td style="font-size: 9.5pt;"></td> <td style="font-size: 9.5pt;"><font style="font: 9.5pt/normal times new roman, times, serif; font-size-adjust: none; font-stretch: normal;">As costs are incurred for related research and development expenses</font></td> </tr> </table> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"><b><i>Deferred Revenue</i></b></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">Deferred revenue represents amounts collected from customers for projects, products, or services expected to be provided at a future date. Deferred revenue is shown on the balance sheet as either a short-term or long-term liability, depending on when the service or product is expected to be provided.</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"><b><i>Research and Development</i></b></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">Research and development costs are expensed as incurred.</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;"><b><i>Net Loss Per Share</i></b></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;"></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">Basic net loss per share is calculated by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per share includes all common stock options and other common stock equivalents that potentially may be issued as a result of conversion privileges (see Note 12).</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;"><b><i>Cash and Cash Equivalents</i></b></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;"></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">The Company considers short-term investments with original maturities of three months or less to be cash equivalents. Cash equivalents are comprised primarily of operating cash accounts, money market investments and certificates of deposits.</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;"><b><i>Accounts Receivable</i></b></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;"></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">The carrying value of the Company&#8217;s accounts receivable, net of the allowance for doubtful accounts, represents their estimated net realizable value. We estimate the allowance for doubtful accounts based on type of customer, age of outstanding receivable, historical collection trends, and existing economic conditions. If events or changes in circumstances indicate that a specific receivable balance may be unrealizable, further consideration is given to the collectability of those balances, and the allowance is adjusted accordingly. Receivable balances deemed uncollectible are written off against the allowance.</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;"><b><i>Property and Equipment</i></b></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">Property and equipment are stated at cost. All furniture, fixtures, and equipment are depreciated using the straight-line method over the estimated useful lives of the respective assets, which is generally five years. Our payload processing facilities are depreciated using the straight-line method over their estimated useful lives ranging from 16 to 40 years. Leasehold improvements are amortized over the shorter of the useful life of the improvement or the term of the lease. Repairs and maintenance are expensed when incurred.</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">As required by our customers, we purchase equipment or enhance our facilities to meet specific customer requirements. These enhancements or equipment purchases are compensated through our contract with the customer. The difference between the amount reimbursed and the cost of the enhancements is recognized as revenue.</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;"><b><i>Deferred Financing Costs</i></b></p> <div style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;">&#160;</div> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">Deferred financing costs represent loan origination fees paid to the lender and related professional fees. These costs are amortized on a straight-line basis over the term of the respective loan agreements which approximates the interest method.</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; font-size-adjust: none; font-stretch: normal;"><b><i>Impairment of Long-Lived Assets</i></b></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">We review long-lived assets and certain identifiable intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"><b><i>Notes Receivable</i></b></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">The carrying value of the Company&#8217;s notes receivable, net of the allowance for doubtful accounts, represents their estimated net realizable value. We estimate the allowance for doubtful accounts based on type of customer, age of outstanding notes receivable, historical collection trends, and existing economic conditions. If events or changes in circumstances indicate that a specific receivable balance may be unrealizable, further consideration is given to the collectability of those balances, and the allowance is adjusted accordingly. Notes receivable balances deemed uncollectible are written off against the allowance and note receivable balances deemed less than likely to be fully collected at maturity are reserved. In fiscal year 2014, we adjusted the reserve of a note receivable that was fully reserved for in fiscal 2012 and wrote-off the remaining uncollectible balance. The adjustment was not material to our financial statements.</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"><b><i>Fair Value of Financial Instruments</i></b></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">Our financial instruments consist of cash and cash equivalents, accounts receivable, notes receivable, accounts payable, notes payable and accrued liabilities. The carrying amounts of these assets and liabilities, in the opinion of Company&#8217;s management, approximate their fair value.</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"><b>Operating Leases</b></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">The Company leases space under operating leases. Lease agreements often include tenant improvement allowances, rent holidays and rent escalation clauses, as defined in the respective lease agreements. Most of the Company&#8217;s lease agreements include renewal periods at the Company&#8217;s option. The Company recognizes rent holiday periods, tenant improvement allowances and scheduled rent increases on a straight-line basis over the lease term beginning with the date the Company takes possession of the leased property. The Company records tenant improvement allowances and rent holidays as deferred rent liabilities on the consolidated balance sheets and amortize the deferred rent over the terms of the lease to rent expense on the consolidated statements of operations.</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"><b><i>Share-Based Compensation</i></b></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">The Company accounts for share-based awards to employees based on the fair value of the award on the grant date. The fair value of the stock options is estimated using expected dividend yields of the Company&#8217;s stock, the expected volatility of the stock, the expected length of time the options remain outstanding and risk-free interest rates. Changes in one or more of these factors may significantly affect the estimated fair value of the stock options. The Company estimates forfeitures using historical forfeiture rates for previous grants of equity instruments. The fair value of awards that are expected to vest is recorded as an expense over the vesting period.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Noncontrolling Interest</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">Noncontrolling interest accounting is applied for any entities where the Company maintains more than 50% and less than 100% ownership. The Company clearly identifies the noncontrolling interest in the balance sheets and income statements. We also disclose three measures of net 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 earnings per share calculations reflect net loss attributable to Astrotech Corporation.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The remaining noncontrolling interest balance of $1.8 million at June 30, 2014 represents an interest by the State of Texas Emerging Technology Fund more fully discussed in Note 15.</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"><b><i>Income Taxes</i></b></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;"></p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">&#160;</p> <p style="font: 10pt/normal times new roman, times, serif; margin: 0pt 0px; text-align: justify; font-size-adjust: none; font-stretch: normal;">The Company accounts for income taxes under the liability method, whereby deferred tax asset or liability account balances are determined based on the difference between the financial statement and the tax bases of assets and liabilities using current tax laws and rates in effect for the year in which the differences are expected to affect taxable income. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. A valuation allowance is established when it is more likely than not that some portion or all of the deferred tax assets will not be realized.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Accounting Pronouncements</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">In May 2014, the FASB issued FASB ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a five-step process to achieve that core principle. ASU 2014-09 requires disclosures enabling users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, using one of two retrospective application methods. Early application is not permitted. The Company is currently evaluating the effect that the adoption of this ASU will have on its financial statements.</p> <table align="center" style="font: 9pt/normal 'times new roman', times, serif; width: 90%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td><font style="font-size: 8pt;"><b>(in thousands)</b></font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">2014</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">2013</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 100%; text-align: left; font-weight: bold;">Beginning balance</td> <td style="width: 15px; font-weight: bold;">&#160;</td> <td style="width: 15px; text-align: left; font-weight: bold;">$</td> <td style="width: 149px; text-align: right; font-weight: bold;">2,788</td> <td style="width: 15px; text-align: left; font-weight: bold;">&#160;</td> <td style="width: 15px; font-weight: bold;">&#160;</td> <td style="width: 15px; text-align: left; font-weight: bold;">$</td> <td style="width: 148px; text-align: right; font-weight: bold;">2,730</td> <td style="width: 14px; text-align: left; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; text-indent: 9pt;">Net loss attributable to noncontrolling interest</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">(908</td> <td style="text-align: left;">)</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">(538</td> <td style="text-align: left;">)</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; text-indent: 9pt;">Capital Contribution</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1,000</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">596</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; text-indent: 9pt;">Stock-based compensation expense</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">6</td> <td style="text-align: left;">&#160;</td> <td style="font-size: 11pt;">&#160;</td> <td style="text-align: left; font-size: 11pt;">&#160;</td> <td style="text-align: right; font-size: 11pt;">&#8212;</td> <td style="text-align: left; font-size: 11pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; text-indent: 9pt; padding-bottom: 1pt;">Change in interest of subsidiaries</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(1,086</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; font-size: 10pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 2.5pt; font-weight: bold;">Ending balance</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,800</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">2,788</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table align="center" style="font: 9pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt; ; font-family: times new roman,times;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">2014</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">2013</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;"><font style="font-family: times new roman,times;" size="2">U.S. Government contracts:</font></td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="width: 1000.9px;"><font style="font-family: times new roman,times;" size="2">Billed</font></td> <td style="width: 13.63px; font-size: 10pt;">&#160;</td> <td style="width: 13.63px; text-align: left; font-size: 10pt;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="width: 135.45px; text-align: right; font-size: 10pt;"><font style="font-family: times new roman,times;" size="2">&#8212;</font></td> <td style="width: 13.63px; text-align: left; font-size: 10pt;">&#160;</td> <td style="width: 13.63px;">&#160;</td> <td style="width: 13.63px; text-align: left;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="width: 134.54px; text-align: right;"><font style="font-family: times new roman,times;" size="2">1,013</font></td> <td style="width: 12.72px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 1pt;"><font style="font-family: times new roman,times;" size="2">Unbilled</font></td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">1,169</font></td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">1,976</font></td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-family: times new roman,times;" size="2">Total U.S. Government contracts</font></td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">1,169</font></td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">2,989</font></td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;"><font style="font-family: times new roman,times;" size="2">Commercial contracts:</font></td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td><font style="font-family: times new roman,times;" size="2">Billed</font></td> <td>&#160;</td> <td style="text-align: left;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">99</font></td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">2,076</font></td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 1pt;"><font style="font-family: times new roman,times;" size="2">Unbilled</font></td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">11</font></td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">252</font></td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-family: times new roman,times;" size="2">Total commercial contracts</font></td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">110</font></td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">2,328</font></td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;"><font style="font-family: times new roman,times;" size="2">Total accounts receivable</font></td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">1,279</font></td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">5,317</font></td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table align="center" style="font: 9pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td><font style="font-size: 8pt; ; font-family: times new roman,times;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">2014</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">2013</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 895.45px; text-align: left; font-weight: bold;"><font style="font-family: times new roman,times;" size="2">Beginning balance</font></td> <td style="width: 12.72px; font-weight: bold;">&#160;</td> <td style="width: 11.81px; text-align: left; font-weight: bold;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="width: 120.9px; text-align: right; font-weight: bold;"><font style="font-family: times new roman,times;" size="2">(58</font></td> <td style="width: 11.81px; text-align: left; font-weight: bold;"><font style="font-family: times new roman,times;" size="2">)</font></td> <td style="width: 11.81px; font-size: 11pt;">&#160;</td> <td style="width: 11.81px; text-align: left; font-size: 11pt;"><font style="font-size: 9pt; ; font-family: times new roman,times;" size="2">$</font></td> <td style="width: 120.9px; text-align: right; font-size: 11pt;"><font style="font-size: 9pt; ; font-family: times new roman,times;" size="2">(54</font></td> <td style="width: 11.81px; text-align: left; font-size: 11pt;"><font style="font-size: 9pt; ; font-family: times new roman,times;" size="2">)</font></td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;"><font style="font-family: times new roman,times;" size="2">Provision for uncollectable accounts, net of recoveries</font></td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">(35</font></td> <td style="text-align: left;"><font style="font-family: times new roman,times;" size="2">)</font></td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">(4</font></td> <td style="text-align: left;"><font style="font-family: times new roman,times;" size="2">)</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-family: times new roman,times;" size="2">Write- off of uncollectable accounts</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; font-size: 10pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">93</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 11pt;">&#160;</td> <td style="text-align: left; font-size: 11pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; font-size: 11pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">&#8212;</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 11pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 2.5pt; font-weight: bold;"><font style="font-family: times new roman,times;" size="2">Ending balance</font></td> <td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right; font-size: 10pt; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">&#8212;</font></td> <td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">(58</font></td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;"><font style="font-family: times new roman,times;" size="2">)</font></td> </tr> </table> <div>&#160;</div> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 9pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6"><font style="font-size: 8pt;">June 30,</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">2014</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">2013</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 983px; text-align: left;">Flight Assets</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">$</td> <td style="width: 209px; text-align: right;">44,757</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 14px; text-align: left;">$</td> <td style="width: 208px; text-align: right;">44,757</td> <td style="width: 14px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Payload Processing Facilities</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">45,866</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">45,866</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Furniture, Fixtures, Equipment &amp; Leasehold Improvements</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">20,376</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">19,973</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1pt;">Capital Improvements in Progress</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">3</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">39</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 1pt; font-weight: bold;">Gross Property and Equipment</td> <td style="padding-bottom: 1pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">111,002</td> <td style="text-align: left; padding-bottom: 1pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">110,635</td> <td style="text-align: left; padding-bottom: 1pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1pt;">Accumulated Depreciation</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(75,933</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(73,600</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">Property and Equipment, net</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">35,069</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">37,035</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 9pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt; ; font-family: times new roman,times;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">June 30, 2014</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">June 30, 2013</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="2"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Carrying</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="2"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Fair</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="2"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Carrying</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="2"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Fair</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Valuation</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Amount</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Value</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Amount</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Value</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Inputs</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 498.18px; text-align: left; padding-bottom: 1pt;"><font style="font-family: times new roman,times;" size="2">Note payable</font></td> <td style="width: 14.54px; padding-bottom: 1pt;">&#160;</td> <td style="width: 14.54px; text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="width: 142.72px; text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">5,655</font></td> <td style="width: 14.54px; text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="width: 14.54px; padding-bottom: 1pt;">&#160;</td> <td style="width: 14.54px; text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="width: 142.72px; text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">5,655</font></td> <td style="width: 14.54px; text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="width: 14.54px; padding-bottom: 1pt;">&#160;</td> <td style="width: 14.54px; text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="width: 142.72px; text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">6,042</font></td> <td style="width: 13.63px; text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="width: 13.63px; padding-bottom: 1pt;">&#160;</td> <td style="width: 13.63px; text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="width: 141.81px; text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">6,042</font></td> <td style="width: 13.63px; text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="width: 13.63px; padding-bottom: 1pt;">&#160;</td> <td style="width: 170px; text-align: center; padding-bottom: 1pt;"><font style="font-family: times new roman,times;" size="2">Level 2</font></td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 2.5pt; font-weight: bold;"><font style="font-family: times new roman,times;" size="2">Total</font></td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">5,655</font></td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">5,655</font></td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">6,042</font></td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">6,042</font></td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Stock Option Activity Summary</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table align="center" style="font: 9pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="2"><font style="font-size: 8pt;">Shares</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="2"><font style="font-size: 8pt;">Weighted Average</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">(in thousands)</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">Exercise Price</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 952px;">Outstanding at June&#160;30, 2012</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 202px; text-align: right;">1,141</td> <td style="width: 14px; text-align: left;">&#160;</td> <td style="width: 14px;">&#160;</td> <td style="width: 14px; text-align: left;">$</td> <td style="width: 201px; text-align: right;">0.79</td> <td style="width: 14px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>Granted</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">330</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1.20</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td>Exercised</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">(119</td> <td style="text-align: left;">)</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.34</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1pt;">Cancelled or expired</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(177</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">0.85</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 2.5pt;">Outstanding at June&#160;30, 2013</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,175</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">0.94</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>Exercised</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">(66</td> <td style="text-align: left;">)</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.64</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 1pt;">Cancelled or expired</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(234</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1.75</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 2.5pt;">Outstanding at June&#160;30, 2014</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">875</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">0.91</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-size: 10pt;"><b><i>Stock Options 1</i></b></font><b><i><font style="font-size: 10pt;"><sup>st</sup></font></i></b><font style="font-size: 10pt;">&#160;<b><i>Detect</i></b></font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table align="center" style="font: 9pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt;" colspan="2"><font style="font-size: 8pt;">&#160;<b>Shares</b></font></td> <td style="font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="2"><font style="font-size: 8pt;">Weighted&#160;Average</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">(in thouasands)</td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">Exercise Price</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 100%;">Outstanding at June&#160;30, 2011</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 179px; text-align: right;">2,730</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">$</td> <td style="width: 178px; text-align: right;">212.00</td> <td style="width: 14px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1pt;">Cancelled or expired</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(255</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">212.00</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 2.5pt;">Outstanding at June&#160;30, 2012</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">2,475</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">212.00</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1pt;">Cancelled, forfeited or expired</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(2,475</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">212.00</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 2.5pt;">Outstanding at June&#160;30, 2013</td> <td style="padding-bottom: 2.5pt; font-size: 11pt;">&#160;</td> <td style="text-align: left; font-size: 11pt; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; font-size: 11pt; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt; font-size: 11pt;">&#160;</td> <td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-size: 10pt; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Stock Options Astrogenetix</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>&#160;</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table align="center" style="font: 9pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt;" colspan="2"><font style="font-size: 8pt;"><b>&#160;Shares</b></font></td> <td style="font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="2"><font style="font-size: 8pt;">Weighted&#160;Average</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">(in thouasands)</td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">Exercise Price</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 100%;">Outstanding at June&#160;30, 2012</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 179px; text-align: right;">2,000</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">$</td> <td style="width: 178px; text-align: right;">167.00</td> <td style="width: 14px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1pt;">Cancelled or expired</td> <td style="padding-bottom: 1pt; font-size: 11pt;">&#160;</td> <td style="text-align: left; font-size: 11pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; font-size: 11pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 11pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 11pt;">&#160;</td> <td style="text-align: left; font-size: 11pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; font-size: 11pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 11pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 2.5pt;">Outstanding at June&#160;30, 2013</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">2,000</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">167.00</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1pt;">Cancelled, forfeited or expired</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(2,000</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">167.00</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 2.5pt;">Outstanding at June&#160;30, 2014</td> <td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; font-size: 10pt; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-size: 10pt; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table align="center" style="font: 9pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Range of exercise prices</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Number&#160;<br />Outstanding</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Options&#160;<br />Outstanding&#160;<br />Weighted-&#160;<br />Average&#160;<br />Remaining&#160;<br />Contractual&#160;<br />Life (years)</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Weighted-&#160;<br />Average&#160;<br />Exercise&#160;<br />Price</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Number&#160;<br />Exercisable</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Options&#160;<br />Exercisable&#160;<br />Weighted-&#160;<br />Average&#160;<br />Exercise&#160;<br />Price</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 473.63px;"><font style="font-family: times new roman,times;" size="2">$0.32 &#8211; 0.45</font></td> <td style="width: 13.63px;">&#160;</td> <td style="width: 13.63px; text-align: left;">&#160;</td> <td style="width: 135.45px; text-align: right;"><font style="font-family: times new roman,times;" size="2">216,250</font></td> <td style="width: 13.63px; text-align: left;">&#160;</td> <td style="width: 13.63px;">&#160;</td> <td style="width: 13.63px; text-align: left;">&#160;</td> <td style="width: 135.45px; text-align: right;"><font style="font-family: times new roman,times;" size="2">3.36</font></td> <td style="width: 13.63px; text-align: left;">&#160;</td> <td style="width: 13.63px;">&#160;</td> <td style="width: 13.63px; text-align: left;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="width: 135.45px; text-align: right;"><font style="font-family: times new roman,times;" size="2">0.38</font></td> <td style="width: 13.63px; text-align: left;">&#160;</td> <td style="width: 13.63px;">&#160;</td> <td style="width: 13.63px; text-align: left;">&#160;</td> <td style="width: 135.45px; text-align: right;"><font style="font-family: times new roman,times;" size="2">216,250</font></td> <td style="width: 13.63px; text-align: left;">&#160;</td> <td style="width: 12.72px;">&#160;</td> <td style="width: 12.72px; text-align: left;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="width: 134.54px; text-align: right;"><font style="font-family: times new roman,times;" size="2">0.38</font></td> <td style="width: 12.72px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td><font style="font-family: times new roman,times;" size="2">$0.71 &#8211; 0.71</font></td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">331,500</font></td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">6.20</font></td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">0.71</font></td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">331,500</font></td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">0.71</font></td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 1pt;"><font style="font-family: times new roman,times;" size="2">$1.20 &#8211; 24.10</font></td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">327,000</font></td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">6.79</font></td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">1.47</font></td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">327,000</font></td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">1.47</font></td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 2.5pt;"><font style="font-family: times new roman,times;" size="2">$0.32 &#8211; 24.10</font></td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">874,750</font></td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">5.72</font></td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">0.91</font></td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">874,750</font></td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">0.91</font></td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> </table> <div>&#160;</div> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table align="center" style="font: 9pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt; ; font-family: times new roman,times;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Shares&#160;<br />(in thousands)</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Weighted&#160;<br />Average&#160;<br />Grant-Date&#160;<br />Fair Value</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 976.36px;"><font style="font-family: times new roman,times;" size="2">Non-vested at June&#160;30, 2012</font></td> <td style="width: 14.54px;">&#160;</td> <td style="width: 14.54px; text-align: left;">&#160;</td> <td style="width: 167.27px; text-align: right;"><font style="font-family: times new roman,times;" size="2">678</font></td> <td style="width: 13.63px; text-align: left;">&#160;</td> <td style="width: 13.63px;">&#160;</td> <td style="width: 13.63px; text-align: left;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="width: 167.27px; text-align: right;"><font style="font-family: times new roman,times;" size="2">1.12</font></td> <td style="width: 13.63px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td><font style="font-family: times new roman,times;" size="2">Vested</font></td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">(528</font></td> <td style="text-align: left;"><font style="font-family: times new roman,times;" size="2">)</font></td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">1.13</font></td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-family: times new roman,times;" size="2">Cancelled or expired</font></td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">(133</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-family: times new roman,times;" size="2">)</font></td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">1.15</font></td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 2.5pt;"><font style="font-family: times new roman,times;" size="2">Non-vested at June&#160;30, 2013</font></td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">17</font></td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">0.75</font></td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td><font style="font-family: times new roman,times;" size="2">Vested</font></td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">(9</font></td> <td style="text-align: left;"><font style="font-family: times new roman,times;" size="2">)</font></td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">0.75</font></td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-family: times new roman,times;" size="2">Cancelled or expired</font></td> <td style="padding-bottom: 1pt; font-size: 11pt;">&#160;</td> <td style="text-align: left; font-size: 11pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; font-size: 11pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">&#8212;</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 11pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 11pt;">&#160;</td> <td style="text-align: left; font-size: 11pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; font-size: 11pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">&#8212;</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 11pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 2.5pt;"><font style="font-family: times new roman,times;" size="2">Non-vested at June&#160;30, 2014</font></td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">8</font></td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">0.75</font></td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> </table> <div>&#160;</div> <table align="center" style="font: 9pt/normal times new roman, times, serif; width: 85%; border-collapse: collapse; font-size-adjust: none; font-stretch: normal;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td><font style="font-size: 8pt;"> </font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="6"><font style="font-size: 8pt;">Astrotech</font></td> <td style="font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td> </tr> <tr style="vertical-align: bottom;"> <td><font style="font-size: 8pt;"> </font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="6"><font style="font-size: 8pt;">Year ended <br />June 30,</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td> </tr> <tr style="vertical-align: bottom;"> <td><font style="font-size: 8pt;"> </font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6"><font style="font-size: 8pt;">2013</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;"> </font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 84%; text-align: left;">Expected Dividend Yield</td> <td style="width: 1%; font-size: 10pt;"></td> <td style="width: 1%; text-align: left; font-size: 10pt;"></td> <td style="width: 1%; text-align: right; font-size: 10pt;"></td> <td style="width: 1%; text-align: left; font-size: 10pt;"></td> <td style="width: 1%;"></td> <td style="width: 1%; text-align: left;"></td> <td style="width: 9%; text-align: right;">0</td> <td style="width: 1%; text-align: left;">%</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Expected Volatility</td> <td style="font-size: 10pt;"></td> <td style="text-align: left; font-size: 10pt;"></td> <td style="text-align: right; font-size: 10pt;"></td> <td style="text-align: left; font-size: 10pt;"></td> <td></td> <td style="text-align: left;"></td> <td style="text-align: right;">0.71</td> <td style="text-align: left;"></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Risk-Free Interest Rates</td> <td style="font-size: 10pt;"></td> <td style="text-align: left; font-size: 10pt;"></td> <td style="text-align: right; font-size: 10pt;"></td> <td style="text-align: left; font-size: 10pt;"></td> <td></td> <td style="text-align: left;"></td> <td style="text-align: right;">0.20</td> <td style="text-align: left;">%</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Expected Option Life (in years)</td> <td style="font-size: 10pt;"></td> <td style="text-align: left; font-size: 10pt;"></td> <td style="text-align: right; font-size: 10pt;"></td> <td style="text-align: left; font-size: 10pt;"></td> <td></td> <td style="text-align: left;"></td> <td style="text-align: right;">10.00</td> <td style="text-align: left;"></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table align="center" style="font: 9pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 1pt; font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6"><font style="font: 8pt/normal 'times new roman', times, serif;"><b>Year Ended June 30,</b></font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 1pt; font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">2014</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">2013</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 100%;">Current</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 179px; text-align: right;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 178px; text-align: right;">&#160;</td> <td style="width: 14px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>Federal</td> <td>&#160;</td> <td style="text-align: left;">$</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">$</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">State and local</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">6</td> <td style="text-align: left;"></td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 1pt;">Foreign</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font: 9pt/normal 'times new roman', times, serif;">6</font></td> <td style="text-align: left; padding-bottom: 1pt;"></td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td>Deferred</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;"></td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>Federal</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">State and local</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 1pt;">Foreign</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">Total Tax Expense</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font: 9pt/normal 'times new roman', times, serif;"><b>6</b></font></td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;"></td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> </table> <div>&#160;</div> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table align="center" style="font: 9pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6"><font style="font-size: 8pt;">Year Ended June 30,</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">2014</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">2013</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 100%; text-align: left;">Expected expense (benefit)</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">$</td> <td style="width: 179px; text-align: right;">(2,052</td> <td style="width: 15px; text-align: left;">)</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">$</td> <td style="width: 178px; text-align: right;">(253</td> <td style="width: 14px; text-align: left;">)</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">State tax expense</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">6</td> <td style="text-align: left;"></td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Change in temporary tax adjustments not recognized</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2,003</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">167</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 1pt;">Other permanent items</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">49</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">86</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 2.5pt; font-weight: bold;">Total</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">6</td> <td style="text-align: left; padding-bottom: 2.5pt;"></td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table align="center" style="font: 9pt/normal 'times new roman', times, serif; width: 1488px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6"><font style="font-size: 8pt;">Year Ended June 30,</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">2014</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">2013</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Deferred tax assets:</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="width: 100%; text-align: left;">Net operating loss carryforwards</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">$</td> <td style="width: 179px; text-align: right;">15,243</td> <td style="width: 15px; text-align: left;">&#160;</td> <td style="width: 15px;">&#160;</td> <td style="width: 15px; text-align: left;">$</td> <td style="width: 178px; text-align: right;">13,274</td> <td style="width: 14px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Alternative minimum tax credit carryforwards</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">671</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">671</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1pt;">Accrued expenses and other timing</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">929</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">683</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Total gross deferred tax assets</td> <td>&#160;</td> <td style="text-align: left;">$</td> <td style="text-align: right;">16,843</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">$</td> <td style="text-align: right;">14,628</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1pt;">Less &#8212; valuation allowance</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(16,009</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(13,540</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 1pt;">Net deferred tax assets</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">834</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,088</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Deferred tax liabilities:</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1pt;">Property and equipment, principally due to differences in depreciation</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(834</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(1,088</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 1pt;">Total gross deferred tax liabilities</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(834</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(1,088</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">Net deferred tax assets (liabilities)</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><br class="apple-interchange-newline" />&#160;</p> <table align="center" style="font: 9pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">2014</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt;">2013</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 932px; font-weight: bold;">Balance at July 1</td> <td style="width: 14px;">&#160;</td> <td style="width: 14px; text-align: left;">$</td> <td style="width: 160px; text-align: right;">68</td> <td style="width: 13px; text-align: left;">&#160;</td> <td style="width: 13px; font-weight: bold;">&#160;</td> <td style="width: 13px; text-align: left; font-weight: bold;">$</td> <td style="width: 159px; text-align: right; font-weight: bold;">64</td> <td style="width: 13px; text-align: left; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Additions for tax positions of current period</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;">Additions for tax positions of prior years</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">4</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">4</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1pt;">Decreases for tax positions of prior years</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 2.5pt; font-weight: bold;">Balance at June 30</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">72</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">68</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> </tr> </table> <div>&#160;</div> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 9pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt; ; font-family: times new roman,times;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Year Ended June 30,</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">2014</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">2013</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="font-weight: bold;"><font style="font-family: times new roman,times;" size="2">Numerator:</font></td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="width: 996.36px; text-align: left; padding-bottom: 1pt;"><font style="font-family: times new roman,times;" size="2">Net loss&#160;attributable to Astrotech, basic</font></td> <td style="width: 14.54px; padding-bottom: 1pt;">&#160;</td> <td style="width: 14.54px; text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="width: 170.9px; text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">(4,960</font></td> <td style="width: 14.54px; text-align: left; padding-bottom: 1pt;"><font style="font-family: times new roman,times;" size="2">)</font></td> <td style="width: 14.54px; padding-bottom: 1pt;">&#160;</td> <td style="width: 13.63px; text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="width: 170px; text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">(185</font></td> <td style="width: 13.63px; text-align: left; padding-bottom: 1pt;"><font style="font-family: times new roman,times;" size="2">)</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-family: times new roman,times;" size="2">Net loss&#160;attributable to Astrotech, diluted</font></td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">(4,960</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-family: times new roman,times;" size="2">)</font></td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">(185</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-family: times new roman,times;" size="2">)</font></td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="font-weight: bold;"><font style="font-family: times new roman,times;" size="2">Denominator:</font></td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;"><font style="font-family: times new roman,times;" size="2">Denominator for basic net loss per share &#8212; weighted average common stock outstanding</font></td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">19,487</font></td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">19,328</font></td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;"><font style="font-family: times new roman,times;" size="2">Dilutive common stock equivalents &#8212; common stock options and share-based awards</font></td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">&#8212;</font></td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">&#8212;</font></td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-family: times new roman,times;" size="2">Denominator for diluted net loss&#160;per share weighted average common stock outstanding and dilutive common stock equivalents</font></td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">19,487</font></td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">19,328</font></td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 1pt;"><font style="font-family: times new roman,times;" size="2">Basic net loss&#160;per share</font></td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">(0.25</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-family: times new roman,times;" size="2">)</font></td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">(0.01</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-family: times new roman,times;" size="2">)</font></td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 1pt;"><font style="font-family: times new roman,times;" size="2">Diluted net loss&#160;per share</font></td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">(0.25</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-family: times new roman,times;" size="2">)</font></td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">(0.01</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-family: times new roman,times;" size="2">)</font></td> </tr> </table> <div>&#160;</div> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table align="center" style="font: 9pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: left; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Year ending June 30,</font></td> <td style="font-size: 8pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="font-size: 8pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 968.18px; text-align: left;"><font style="font-family: times new roman,times;" size="2">2015</font></td> <td style="width: 11.81px;">&#160;</td> <td style="width: 10.9px; text-align: left;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="width: 136.36px; text-align: right;"><font style="font-family: times new roman,times;" size="2">5,955</font></td> <td style="width: 10.9px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;"><font style="font-family: times new roman,times;" size="2">2016</font></td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">338</font></td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;"><font style="font-family: times new roman,times;" size="2">2017</font></td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">167</font></td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;"><font style="font-family: times new roman,times;" size="2">2018</font></td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">172</font></td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left;"><font style="font-family: times new roman,times;" size="2">2019</font></td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">5</font></td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-family: times new roman,times;" size="2">2020 and thereafter</font></td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">&#8212;</font></td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;"><font style="font-family: times new roman,times;" size="2">Total</font></td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">6,637</font></td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> </tr> </table> <div>&#160;</div> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table align="center" style="font: 9pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;">&#160;</font></td> <td style="font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Year Ended</font></td> <td style="font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Year Ended</font></td> <td style="font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">June 30, 2014</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">June 30, 2013</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Revenue and Income</font></td> <td style="font-size: 8pt;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: right; font-size: 8pt;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="font-size: 8pt;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Income (loss)</font></td> <td style="font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="font-size: 8pt;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: right; font-size: 8pt;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="font-size: 8pt;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Income (loss)</font></td> <td style="font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">(in thousands)</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Revenue</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">before income taxes</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Revenue</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">before income taxes</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 649.09px;"><font style="font-family: times new roman,times;" size="2">ASO</font></td> <td style="width: 13.63px;">&#160;</td> <td style="width: 13.63px; text-align: left;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="width: 135.45px; text-align: right;"><font style="font-family: times new roman,times;" size="2">16,293</font></td> <td style="width: 13.63px; text-align: left;">&#160;</td> <td style="width: 13.63px;">&#160;</td> <td style="width: 13.63px; text-align: left;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="width: 135.45px; text-align: right;"><font style="font-family: times new roman,times;" size="2">1,606</font></td> <td style="width: 13.63px; text-align: left;">&#160;</td> <td style="width: 13.63px;">&#160;</td> <td style="width: 13.63px; text-align: left;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="width: 135.45px; text-align: right;"><font style="font-family: times new roman,times;" size="2">23,862</font></td> <td style="width: 13.63px; text-align: left;">&#160;</td> <td style="width: 13.63px;">&#160;</td> <td style="width: 12.72px; text-align: left;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="width: 134.54px; text-align: right;"><font style="font-family: times new roman,times;" size="2">3,121</font></td> <td style="width: 12.72px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 1pt;"><font style="font-family: times new roman,times;" size="2">Spacetech</font></td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">130</font></td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">(7,468</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-family: times new roman,times;" size="2">)</font></td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">133</font></td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">(3,844</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-family: times new roman,times;" size="2">)</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 2.5pt; font-weight: bold;"><font style="font-family: times new roman,times;" size="2">Total</font></td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">16,423</font></td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">(5,862</font></td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;"><font style="font-family: times new roman,times;" size="2">)</font></td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">23,995</font></td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">(723</font></td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;"><font style="font-family: times new roman,times;" size="2">)</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;" nowrap="nowrap">&#160;</td> <td style="font-size: 8pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="6" nowrap="nowrap">&#160;</td> <td style="font-size: 8pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="font-size: 8pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-size: 8pt; font-weight: bold;" colspan="6" nowrap="nowrap">&#160;</td> <td style="font-size: 8pt; font-weight: bold;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">June 30, 2014</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">June 30, 2013</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Assets&#160;<br />(in thousands)</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Fixed&#160;<br />Assets, net</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Total Assets</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Fixed&#160;<br />Assets, net</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> <td style="text-align: center; font-size: 8pt; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">Total Assets</font></td> <td style="padding-bottom: 1pt; font-size: 8pt; font-weight: bold;" nowrap="nowrap"><font style="font-size: 8pt; ; font-family: times new roman,times;" size="2">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td><font style="font-family: times new roman,times;" size="2">ASO</font></td> <td>&#160;</td> <td style="text-align: left;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">33,858</font></td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">38,423</font></td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">35,625</font></td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right;"><font style="font-family: times new roman,times;" size="2">46,159</font></td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-bottom: 1pt;"><font style="font-family: times new roman,times;" size="2">Spacetech</font></td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">1,211</font></td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">2,359</font></td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">1,410</font></td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-family: times new roman,times;" size="2">1,843</font></td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="padding-bottom: 2.5pt; font-weight: bold;"><font style="font-family: times new roman,times;" size="2">Total</font></td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">35,069</font></td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">40,782</font></td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">37,035</font></td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">$</font></td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font style="font-family: times new roman,times;" size="2">48,002</font></td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> </tr> </table> <div>&#160;</div> More than 300 spacecraft 23 0.99 28 4400000 500000 2250000 32000000 2000000 750000 3000000 7000000 6000000 5700000 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 bank financing facilities are secured by the assets of ASO, including accounts receivable, and require us to comply with designated covenants. At the rate of prime plus 0.25%, but not less than 4.0%. 0.040 2010-10-01 2010-10-01 2012-10-31 2015-10-31 250000 0.66 0.46 0.91 596000 1000000 6000 1013000 2076000 99000 1976000 252000 1169000 11000 2989000 2328000 1169000 110000 -58000 -54000 -4000 -35000 93000 110635000 44757000 45866000 19973000 39000 111002000 44757000 45866000 20376000 3000 73600000 75933000 6042000 5655000 6042000 5655000 1141000 1175000 2730000 2475000 2000000 2000000 875000 330000 119000 66000 177000 255000 234000 2475000 2000000 0.79 0.94 212.00 212.00 167.00 167.00 0.91 1.20 0.34 0.64 0.85 212.00 1.75 212.00 167.00 216250 331500 327000 874750 P3Y4M10D P6Y2M12D P6Y9M14D P5Y8M19D 0.38 0.71 1.47 0.91 216250 331500 327000 874750 0.38 0.71 1.47 0.91 678000 17000 8000 528000 9000 133000 1.12 0.75 0.75 1.13 0.75 1.15 0.00 0.0071 0.0020 P10Y 6000 6000 6000 -253000 -2052000 6000 167000 2003000 86000 49000 13274000 15243000 671000 671000 683000 929000 14628000 16843000 13540000 16009000 1088000 834000 1088000 834000 1088000 834000 68000 72000 64000 4000 4000 -185000 -4960000 -185000 -4960000 5955000 338000 167000 172000 5000 6637000 astc 0.01 0.25 19328000 19487000 -1086000 -1086000 less than 100% P2Y P5Y 6042000 5655000 6042000 5655000 0.35 68000 1800000 1800000 100 61000000 61000000 0.50 5700000 1800000 500000 10 30 <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>State of Texas Funding</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 11pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-size: 10pt;">The Company accounts for the State of Texas funding in its majority owned subsidiary 1</font><font style="font-size: 10pt;"><sup>st</sup></font><font style="font-size: 10pt;">&#160;Detect as a contribution of capital and has reflected the disbursement in the equity section of the consolidated balance sheet. While the award agreement includes both a common stock purchase right and a note payable to the State of Texas, the economic substance of the transaction is that the State of Texas has purchased shares of 1</font><font style="font-size: 10pt;"><sup>st</sup></font><font style="font-size: 10pt;">&#160;Detect in exchange for the granted award (see Notes 15 and 19).</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 11pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-size: 10pt;">The common stock purchase right gives the State of Texas the ability to purchase common stock in 1</font><font style="font-size: 10pt;"><sup>st</sup></font><font style="font-size: 10pt;">&#160;Detect, at par value per share, at the earlier of: (1)&#160;the first Qualifying Financing Event or (2)&#160;eighteen months (recent extensions were granted by the State of Texas, see Note 15). As of June&#160;30, 2014, no Qualifying Financing Event has occurred.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 11pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-size: 10pt;">There are no cash payments due under the note unless there is an event of default, and the terms that allow for the note to be cancelled after the passage of a set amount of time. The purpose of the note is to provide recourse for the State of Texas if 1<sup>st</sup>&#160;Detect fails to fulfill the purpose of the grant, which is primarily to provide for economic development within the State of Texas. If an event of default should occur, the Company would calculate and expense accrued interest and reclassify principal from equity to notes payable in the consolidated financial statements as amounts due to the State of Texas. Management considers the likelihood of an event of default to be remote due to the fact that the covenants that would necessitate repayment are within the control of the Company. On June 13, 2014, the Texas Emerging Technology Fund Agreement was amended to extend the deadline and to also relinquish the purchase rights that were previously set to survive repayment of the note payable. The previous deadline of June 30 required that 1<sup>st&#160;</sup>Detect raise at least $500,000 in equity capital by June 30, 2014. If this was not accomplished, the investment would convert into an equity stake that provided for significant dilution to 1<sup>st&#160;</sup>Detect shareholders. As of June&#160;30, 2014, no default events had occurred (see Notes 15 and 19).</font></p> 250000 1800000 6100000 15761 2 300000 8000 0001001907astc:TexasEmergingTechnologyFundMemberus-gaap:SubsequentEventMember2014-08-012014-08-27 2300000 0001001907us-gaap:SubsequentEventMemberastc:FirstDetectMemberastc:TexasEmergingTechnologyFundMember2014-08-012014-08-22 2300000 $1.00 per share or greater fallen below $1.00 100000 100000 0.35 300000 16000000 0001001907astc:Astrotech1994PlanMember2013-07-012014-06-30 P4Y P10Y P1Y P3Y P10Y P10Y 1086000 1800000 2 0001001907astc:FirstDetectMemberastc:TexasEmergingTechnologyFundMember2011-07-012012-06-30 0001001907astc:FirstDetectMemberastc:TexasEmergingTechnologyFundMember2009-07-012010-06-30 900000 900000 <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>Multiple Element Arrangements</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><b><i>&#160;</i></b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">We evaluate new or significantly modified contracts with customers to the extent the contracts includes multiple elements, to determine if the individual deliverables should be accounted for as separate units of accounting. When we determine that accounting for the deliverables as separate units is appropriate, we allocate the contract value to the deliverables based on their contract stated prices. The contracts or contract modifications we evaluate for multiple elements may be both short and long-term in nature for services to be performed. Based on the nature of our business, we generally account for components of such contracts using the percentage-of-completion accounting model.</p> 1100000 0001001907astc:FirstDetectMemberus-gaap:SubsequentEventMember2014-06-11 0001001907us-gaap:SubsequentEventMemberastc:AstrogenetixMember2014-06-11 0001001907astc:IncentiveCompensationPlanMember2014-06-30 0001001907astc:IncentiveCompensationPlanMember2013-06-30 1100000 400000 0001001907astc:CustomerOneMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2013-07-012014-06-30 0001001907astc:CustomerTwoMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2013-07-012014-06-30 0001001907astc:CustomerThreeMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2013-07-012014-06-30 <div>accounted for greater than 10% of our consolidated revenues</div> <div>accounted for greater than 10% of our consolidated revenues</div> <div>accounted for greater than 10% of our consolidated revenues</div> <div>greater than 10%</div> <div>greater than 10%</div> <div>greater than 10%</div> 0001001907astc:CustomerOneMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2012-07-012013-06-30 0001001907astc:CustomerTwoMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2012-07-012013-06-30 <div>accounted for greater than 10% of our consolidated revenues</div> <div>greater than 10%</div> <div>greater than 10%</div> <div>accounted for greater than 10% of our consolidated revenues</div> 0001001907astc:AsoSegmentMemberastc:CustomerOneMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2013-07-012014-06-30 0001001907astc:AsoSegmentMemberastc:CustomerTwoMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2013-07-012014-06-30 0001001907astc:AsoSegmentMemberastc:CustomerThreeMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2013-07-012014-06-30 0.46 0.22 0.17 0001001907astc:AsoSegmentMemberastc:CustomerOneMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2012-07-012013-06-30 0001001907astc:AsoSegmentMemberastc:CustomerTwoMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2012-07-012013-06-30 0.66 0.15 0001001907astc:FirstDetectMember2014-04-012014-04-15 100000 80000 <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">The following table summarizes the carrying amounts of the major classes of assets and liabilities at June 30, 2014, that were disposed of as part of the Asset Sale, which represented 100% of our ASO segment (in thousands):</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1317px;"><font style="font-size: 10pt;"><b>Assets:</b></font></td> <td style="width: 48px;"></td> <td style="width: 15px;"></td> <td style="width: 172px;"></td> <td style="width: 15px;"></td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td><font style="font-size: 10pt;">Accounts receivable</font></td> <td></td> <td><font style="font-size: 10pt;">$</font></td> <td style="text-align: right;"><font style="font-size: 10pt;">1,220</font></td> <td></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td><font style="font-size: 10pt;">Prepaid expenses and other current assets</font></td> <td></td> <td></td> <td style="text-align: right;"><font style="font-size: 10pt;">177</font></td> <td></td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td><font style="font-size: 10pt;">Property and equipment, net</font></td> <td></td> <td style="border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-size: 10pt;">33,858</font></td> <td></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td><font style="font-size: 10pt;"><b>Total assets</b></font></td> <td></td> <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double;"><font style="font-size: 10pt;"><b>$</b></font></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double;"><font style="font-size: 10pt;"><b>35,255</b></font></td> <td></td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td> <p style="margin-top: 0px; margin-bottom: 0px;">&#160;</p> <p style="margin-top: 0px; margin-bottom: 0px;"></p> </td> <td></td> <td></td> <td></td> <td></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td><font style="font-size: 10pt;"><b>Liabilities:</b></font></td> <td></td> <td></td> <td></td> <td></td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td><font style="font-size: 10pt;">Accounts payable</font></td> <td></td> <td><font style="font-size: 10pt;">$</font></td> <td style="text-align: right;"><font style="font-size: 10pt;">184</font></td> <td></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td><font style="font-size: 10pt;">Accrued liabilities and other</font></td> <td></td> <td></td> <td style="text-align: right;"><font style="font-size: 10pt;">628</font></td> <td></td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td><font style="font-size: 10pt;">Deferred revenue</font></td> <td></td> <td style="border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-size: 10pt;">1,110</font></td> <td></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td><font style="font-size: 10pt;"><b>Total liabilities</b></font></td> <td></td> <td style="border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-size: 10pt;"><b>$</b></font></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font style="font-size: 10pt;"><b>1,922</b></font></td> <td></td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td> <p style="margin-top: 0px; margin-bottom: 0px;">&#160;</p> <p style="margin-top: 0px; margin-bottom: 0px;"></p> </td> <td></td> <td style="border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"></td> <td></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td><font style="font-size: 10pt;"><b>Net assets</b></font></td> <td></td> <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double;"><font style="font-size: 10pt;"><b>$</b></font></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double;"><font style="font-size: 10pt;"><b>33,333</b></font></td> <td></td> </tr> </table> 1220000 177000 33858000 35255000 33333000 1922000 1110000 628000 184000 <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table align="center" style="font: 9pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom; background-color: white;"> <td>&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="3"><font style="font-size: 8pt;">2014</font></td> <td style="padding-bottom: 1pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="3"><font style="font-size: 8pt;">2013</font></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1102px; text-align: left; font-weight: bold;">Net loss attributable to Astrotech Corporation shareholders</td> <td style="width: 15px; font-weight: bold;">&#160;</td> <td style="width: 15px; text-align: left; font-weight: bold;">$</td> <td style="width: 149px; text-align: right; font-weight: bold;">(4,960</td> <td style="width: 15px; text-align: left; font-weight: bold;">)</td> <td style="width: 15px; font-weight: bold;">&#160;</td> <td style="width: 15px; text-align: left; font-weight: bold;">$</td> <td style="width: 148px; text-align: right; font-weight: bold;">(185</td> <td style="width: 14px; text-align: left; font-weight: bold;">)</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left;">Transfers from noncontrolling interest:</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; text-indent: 9pt; padding-bottom: 1pt;">Increase in Astrotech Corporations paid-in capital for relinquishment of subsidiary stock</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">1,086</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">&#8212;&#160;&#160;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">Change from net loss attributable to Astrotech Corporation shareholders and transfers from noncontrolling interest</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">(3,874</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">)</td> <td style="padding-bottom: 2.5pt; font-weight: bold;">&#160;</td> <td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">(185</td> <td style="text-align: left; padding-bottom: 2.5pt; font-weight: bold;">)</td> </tr> </table> <div>&#160;</div> -3874000 -185000 39000 22000 1 1