- Astrotech reported financial results for the quarter ended December 31, 2023, recording year-to-date revenue of $1,540,000
- The company attributed the growth to the successful fulfillment of two significant purchase orders for the TRACER 1000(TM), the world’s first mass spectrometer-based explosive trace detectors (“ETD”), to customers in Romania
- Astrotech is focused on commercializing its innovative platform mass spectrometry technology through its wholly owned subsidiaries 1st Detect Corp., AgLAB Inc., Pro-Control Inc., and BreathTech Corp.
- The company and its subsidiaries are positioned to capitalize on burgeoning markets, including the global mass spectrometry market, expected to grow from an estimated $6.77 billion in 2024 to $9.17 billion by 2029
Astrotech (NASDAQ: ASTC), a science and technology development and commercialization company, focused on commercializing its innovative platform mass spectrometry technology through its wholly owned subsidiaries, recently released financial results for the three months ended December 31, 2023 (“Q2 2024”).
The company recorded a 512% jump in its year-to-date (“YTD”) revenue to $1,540,000 from $301,000 in the comparative period a year before. Astrotech attributed this growth primarily to two significant purchase orders for the TRACER 1000(TM) explosive trace detectors (“ETDs”) to customers in Romania, which the company, through 1st Detect Corp., successfully delivered on (https://ibn.fm/nh80b).
The subsidiary 1st Detect develops, manufactures, and sells mass-spectrometer-based trace detectors – including the TRACER 1000(TM), the world’s first mass spectrometer-based ETD – for use in the security and detection markets. It is one of Astrotech’s wholly owned subsidiaries formed to explore and capitalize on opportunities in disparate markets. The other subsidiaries include Astrotech Technologies Inc, AgLAB Inc., Pro-Control Inc., and BreathTech Corp.
A recent SNS Insider article (https://ibn.fm/6nCuS) confirms that “the Explosive Trace Detection Market is witnessing significant growth driven by increasing security concerns, particularly in transportation, critical infrastructure, and public spaces”. Specifically, it indicates: “The Explosive Trace Detection Market, valued at USD 1137.50 million in 2022, is projected to achieve a significant milestone, reaching USD 2250.60 million by 2030.” This market is yet another fast-growing and important opportunity for 1st Detect and the superior mass spectrometry technology it offers. The article continues that “there is a growing demand for advanced ETD systems that offer higher sensitivity, faster detection times, and improved ease of use”, the very capabilities that 1st Detect represents. In particular, 1st Detect holds an exclusive AMS Technology license from ATI for air passenger and cargo security applications.
For its part, AgLAB has developed a mass-spectrometer-based chemical analyzer, the AgLAB 1000 series, and the AgLAB Maximum Value Process(TM) (“AgLAB MVP for use in botanical distillation and specifically, the hemp and cannabis sectors. AgLAB uses its proprietary mass spectrometry instrumentation on the manufacturing floor to test and analyze distilled cannabidiol (“CBD”) and tetrahydrocannabinol (“THC”) oils quickly, easily, and continually, providing immediate information that not only maximizes potency but also improves the ending weight yields of every batch. According to AgLAB’s analysis, its mass spectrometers improve yields by an average of 34% (https://ibn.fm/OI897).
The U.S. cannabis market, which combines the recreational cannabis, medical cannabis, and therapeutic cannabis segments, is expected to experience significant growth in the coming years, according to Statista, reaching a projected $39.85 billion in revenue in 2024 and $67.15 billion by the end of 2028. The market is projected to grow at a CAGR of 13.93% during this forecast period (https://ibn.fm/pE5aV). Globally, the cannabis market is projected to reach revenue of $60.79 billion in 2024 and $102.90 billion by 2028, representing a CAGR of 14.06% (https://ibn.fm/nVjAS).
Beyond the U.S. cannabis and cannabinoids markets, Astrotech is positioned to capitalize on and benefit from the growth in the global mass spectrometry market, which is expected to grow from an estimated $6.77 billion in 2024 to $9.17 billion by 2029, representing a CAGR of 6.25%. “One of the major driving factors for the growth of the mass spectrometry market is the technological advancements in mass spectrometer devices,” wrote Mordor Intelligence in its report (https://ibn.fm/XmFDa).
Pro-Control subsidiary is expected to benefit from the global industrial automation and control systems market that is valued at USD 172.26 billion in 2022 with a compound annual growth rate (“CAGR”) of 10.5% from 2023 to 2030. The Pro-Control 1000(TM) mass spectrometer is designed to measure, test, and increase efficiencies in the chemical manufacturing processes.
Pro-Control MVP(TM) uses mass spectrometry instrumentation to monitor and control the fractional distillation of bulk chemicals using real-time in-process samples. “The Pro-Control subsidiary was launched late Q2 2024, and we look forward to introducing Pro-Control to chemical manufacturers who are using all types of distillation,” said Thomas B. Pickens, III, Astrotech’s Chairman, CEO, and CTO.
The BreathTech subsidiary is continuing its development of a breath analysis device that can provide early detection of lung diseases so that targeted antibiotics can be administered within minutes vs. days under current lab conditions. “The early BreathTech work was focused on COVID, but as vaccines were introduced and the effect of the disease outbreaks diminished, we have expanded our breath work to include other lung diseases that would benefit from early identification,” said Mr. Pickens.
The BreathTech subsidiary is continuing its development of a breath analysis device that can to provide early detection of lung diseases so that targeted antibiotics can be administered within seconds vs. days under current lab conditions. “The early BreathTest work was directed exclusively to COVID, but as the vaccines too effect and the disease outbreaks diminished, we have expanded our breath work to include other lung diseases that would benefit from early identification. The testing of these diseases is ongoing and we remain optimistic over our most recent results,” said Mr. Pickens.
For more information, visit the company’s website at www.AstrotechCorp.com.
NOTE TO INVESTORS: The latest news and updates relating to ASTC are available in the company’s newsroom at https://ibn.fm/ASTC
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