ASTROTECH Corp 10-K

Item 2. Properties At the beginning of fiscal year 2021, Astrotech had two existing facility leases and several small equipment leases. Astrotech leased 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, the Company decided to terminate the lease. The lease termination is part of an overall plan to optimize the Company’s cash flows in the COVID-19 era. The Company anticipates that the termination of this lease will save the Company an estimated $1.2 million over the original lease term. 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. 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. On April 27, 2021, Astrotech entered into a new lease for 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 many of our employees continue to work remotely. The lease commenced on June 1, 2021 and has a lease term of 36 months. We believe that our current facility and equipment are well maintained, in good condition, and are adequate for our present and foreseeable needs.