1st Detect Awarded a Homeland Security Research and Development Contract to Expand the TRACER 1000™ Explosive Threat Detection

Rhea-AI Summary

Astrotech (NASDAQ: ASTC) and its subsidiary 1st Detect have secured a research and development contract from the U.S. Department of Homeland Security (DHS) to enhance their TRACER 1000 explosives trace detection system. The contract, numbered 70RSAT24CB0000015, aims to develop improved detection capabilities against evolving security threats.

The project is structured in two 15-month phases with a total potential value of $1,290,650. Phase 1 is valued at $581,639, while Phase 2, which is optional and dependent on successful completion of Phase 1, is worth $709,011. The entire project spans 30 months and aligns with DHS's Long Range Broad Agency Announcement No. 18-01 objectives.

Positive

• Secured new R&D contract worth $1.29M with DHS
• Contract validates TRACER 1000's capabilities after DHS evaluation
• Potential for additional $709,011 in Phase 2 funding

Negative

• Phase 2 funding contingent on Phase 1 performance
• Extended 30-month timeline before full contract value realization

Insights

Government Contracts Analyst

The $1.29 million DHS contract represents a strategic milestone for Astrotech, particularly significant given the company's micro-cap status ($11.3 million market cap). The phased structure with $581,639 initial funding and $709,011 contingent second phase provides a balanced risk-reward profile. The 30-month timeline suggests a methodical development approach, with clear performance gates tied to funding.

For a company of ASTC's size, this contract could materially impact revenues and validate their technology in the homeland security sector. The R&D focus on next-generation explosive detection capabilities aligns with increasing government emphasis on advanced security technologies, potentially opening doors to larger operational contracts if successful.

Security Technology Specialist

The TRACER 1000's selection for DHS next-generation ETD research signals strong technical merit in an increasingly critical security domain. The focus on combating evolving threat evasion tactics positions this technology at the forefront of aviation security innovation. For context, explosive trace detection represents a important layer in multi-tiered airport security, where even incremental improvements can have significant operational impact.

In simpler terms - this is like getting picked to develop the next generation of security screening technology that keeps airports safe. The government essentially saying "we believe your technology has potential to be the future standard" is a major vote of confidence for a small company like Astrotech.

AUSTIN, Texas, Jan. 14, 2025 (GLOBE NEWSWIRE) -- Astrotech Corporation (NASDAQ: ASTC) ("Astrotech" or the "Company") and its wholly-owned subsidiary, 1st Detect Corporation, announced that the Company has been awarded   research and development (“R&D”) contract 70RSAT24CB0000015 (“Contract”) with the U.S. Department of Homeland Security (“DHS”) to research, develop and mature the TRACER 1000 for DHS next generation explosives trace detection (“ETD”).

The Contract is in support of the objectives stated in the DHS Long Range Broad Agency Announcement No. 18-01 (the “Announcement”). According to the Announcement, the purpose of this technical research is to develop new and improved ETD capabilities to address the increasing number of threats and tactics used to evade detection.

The research project is broken into two phases that each span 15 months. The contract has a total potential value of $1,290,650 for the entire 30-month duration of the project. The first phase is valued at $581,639. Phase 2, which is optional and contingent upon the successful completion of phase 1, is valued at $709,011. The exercise of Phase 2 depends on completion of specific deliverables.

Tom Pickens, CEO and CTO of Astrotech, said: “The Tracer 1000^TM has been thoroughly evaluated by DHS and based on its capability, the Company has been awarded this important R&D project.    We are pleased to receive this award and look forward to working with DHS in the development of the next generation explosive detectors. This new generation of ETDs will aid the effort of continuing to secure the safety of the world’s passengers, airports and airways.”

About Astrotech Corporation

Astrotech (Nasdaq: ASTC) is a mass spectrometry company that launches, manages and commercializes scalable companies based on its innovative core technology through its wholly owned subsidiaries. 1st Detect develops, manufactures, and sells trace detectors for use in the security and detection market. Astrotech is headquartered in Austin, Texas. For information, please visit www.astrotechcorp.com.

Forward-Looking Statements

This press release contains forward-looking statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, trends, and uncertainties that could cause actual results to be materially different from the forward-looking statement. These factors include, but are not limited to, the adverse impact of inflationary pressures, including significant increases in fuel costs, global economic conditions and events related to these conditions, including the ongoing wars in Ukraine and the Middle East and the COVID-19 pandemic, the Company’s use of proceeds from the common stock offerings, whether we can successfully complete the development of our new products and proprietary technologies, whether we can obtain the FDA and other regulatory approvals required to market our products under development in the United States or abroad, whether the market will accept our products and services and whether we are successful in identifying, completing and integrating acquisitions, as well as other risk factors and business considerations described in the Company’s Securities and Exchange Commission filings including the Company’s most recent Annual Report on Form 10-K. Any forward-looking statements in this document should be evaluated in light of these important risk factors. While we do not intend to directly harvest, manufacture, distribute or sell cannabis or cannabis products, we may be detrimentally affected by a change in enforcement by federal or state governments and we may be subject to additional risks in connection with the evolving regulatory area and associated uncertainties. Any such effects may give rise to risks and uncertainties that are currently unknown or amplify others mentioned herein. Although the Company believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all) or will prove to have been correct. Moreover, such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. In addition, any forward-looking statements included in this press release represent the Company’s views only as of the date of its publication and should not be relied upon as representing its views as of any subsequent date. The Company assumes no obligation to correct or update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

Contact: 
Jaime Hinojosa
Chief Financial Officer
Astrotech Corporation
(512) 485-9530
https://www.astrotechcorp.com/

FAQ

What is the total value of ASTC's new DHS contract for TRACER 1000?

The total potential value of the DHS contract is $1,290,650 over a 30-month period.

How is ASTC's DHS contract for TRACER 1000 structured?

The contract is structured in two 15-month phases: Phase 1 valued at $581,639 and Phase 2 valued at $709,011, with Phase 2 being contingent on successful completion of Phase 1.

What is the purpose of ASTC's new DHS research contract?

The contract aims to research and develop improved explosives trace detection capabilities for the TRACER 1000 to address increasing threats and tactics used to evade detection.

When was ASTC awarded the DHS contract for TRACER 1000?

Astrotech was awarded the DHS contract on January 14, 2025.