ASTROTECH Corp 10-K

Item 1B. Unresolved Staff Comments   None.   Item   2. Properties   Astrotech currently leases a research and development facility of approximately 5,960 square feet in Austin, Texas that includes a laboratory, a small production shop, and offices for staff, although our accounting and administrative employees continue to work remotely. The lease commenced on June 1, 2021 and has a lease term of 36 months.   In May 2013, 1 st Detect completed build-out of a 16,540 square foot leased research and development and production facility in Webster, Texas (the “Webster Lease”). On March 30, 2021, we announced that we engaged Sanmina to manufacture our products. As we transitioned to contract manufacturing, we allowed the Webster Lease to expire on its expiration date of April 30, 2021 and consolidated our entire operations in Austin, Texas.   Astrotech also previously leased corporate office space consisting of 5,219 square feet in Austin, Texas that housed executive management, finance and accounting, sales, and marketing and communications. The lease began in November 2016 and originally expired in December 2023. On August 3, 2020, we decided to terminate the lease as part of an overall plan to optimize our cash flows in the COVID-19 era. We anticipate that the termination of this lease will save the Company an estimated $1.2 million over the original lease term.   During fiscal year 2022, Astrotech had one existing facility lease and several equipment leases. We believe that our current facility and equipment are well maintained, in good condition, and are adequate for our present and foreseeable needs.