Cyanotech Corporation (OTCQB: CYAN), a world leader in
microalgae-based, high-value nutrition and health dietary
supplement products, announced financial results for the first
quarter of fiscal year 2025, ended June 30, 2024.
Commenting on the first quarter fiscal year 2025 results,
Cyanotech’s President and Chief Executive Officer, Matthew K.
Custer, said:
“This quarter’s net sales increased 15% as compared to prior
year primarily due to increased sales of Astaxanthin in both our
bulk and packaged markets. As we continue to expand our product
offerings, we were excited to launch our Hawaiian Spirulina®
gummies in May to complement the Astaxanthin gummy product.”
“Our growth in sales for the quarter was offset by a lower gross
profit. Production has been at a low for the trailing six quarters
resulting in higher costs which resulted in this gross profit
decline. This strategic production management has allowed us to
manage both spending and inventory to mitigate cash outflow. Now we
turn our focus to meeting this changing demand with a well-managed
increase in supply. We have preliminarily secured the financing to
ensure we can meet market demand.”
“We feel positive about the future of our brand and the
consumers interest for sustainable, high quality dietary
supplements.”
First Quarter Fiscal 2025
Cyanotech reported net sales of $5,898,000 for the first quarter
of fiscal 2025 compared to $5,146,000 for the first quarter of
fiscal 2024, an increase of 14.6%. Gross profit was $1,476,000,
with gross profit margin of 25.0%, compared to gross profit of
$1,532,000, with gross profit margin of 29.8%. Operating loss for
the first quarter of fiscal 2025 was $1,041,000 compared to
operating loss of $1,209,000 in the same period of the prior year.
Net loss for the current fiscal quarter was $1,202,000, or $0.17
per diluted share, compared to net loss of $1,369,000, or $0.22 per
diluted share, for the same period of the prior year.
Trailing Twelve Months
For the trailing twelve months ended June 30, 2024, compared to
the trailing twelve months ended June 30, 2023, net sales were
$23,824,000 compared to $21,607,000, respectively. Gross profit was
$5,889,000, with gross profit margin of 24.7%, compared to
$6,473,000 and 30.0%. Net loss was $5,100,000, or $0.76 per diluted
share, compared to net loss of $4,337,000, or $0.69 per diluted
share.
Please review the Company’s Form 10-Q for the period ended June
30, 2024 for more detailed information.
---------------
— Cyanotech will host a virtual broadcast at 8:00 PM ET on
Thursday, August 8, 2024 to respond to questions about its
operating results and other topics of interest. Interested parties
are asked to submit questions to questions@cyanotech.com before 12
p.m. (noon) ET on Thursday, August 8, 2024. The Company will
respond only to relevant questions relating to the Company’s first
quarter fiscal 2025 financial performance and will not be accepting
any questions or comments during the broadcast.
To join the broadcast, please browse http://cyanotech.com/meet
approximately five minutes prior to the start time.
---------------
About Cyanotech — Cyanotech Corporation, a world leader
in microalgae technology for more than 30 years, produces BioAstin®
Hawaiian Astaxanthin® and Hawaiian Spirulina Pacifica®. These
all-natural, dietary ingredients and supplements leverage our
experience and reputation for quality, building nutritional brands
which promote health and well-being. The Company’s mission is to
fulfill the promise of whole health through Hawaiian microalgae.
Cyanotech’s BioAstin® offers superior antioxidant activity which
supports skin, eye and joint health, as well as recovery from
exercise*. Cyanotech's Spirulina products offer nutrition that
supports cardiovascular health and immunity*. All Cyanotech
products are produced from microalgae grown at our 96-acre facility
in Kona, Hawaii using patented and proprietary technology and are
Generally Recognized as Safe (“GRAS”) for use in food products.
Cyanotech sells its products direct to consumers at retail
locations in the United States and online at www.nutrex-hawaii.com
and also distributes to dietary supplement, nutraceutical and
cosmeceutical manufacturers and marketers. The Company is regulated
by the Food and Drug Administration. Visit www.cyanotech.com for
more information.
*These statements have not been evaluated
by the Food and Drug Administration. This product is not intended
to diagnose, treat, cure or prevent any disease.
“Safe Harbor” Statement under the U.S. Private
Securities Litigation Reform Act of 1995 Besides statements of
present fact and historical fact, this press release may contain
forward-looking statements. Forward-looking statements relate to
the future and are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict. Our actual
results may differ materially from those contemplated by
forward-looking statements. We caution against relying on
forward-looking statements. Important factors that could change
actual, future results include: changes in sales levels to our
largest customers, weather patterns in Hawaii, production problems,
risks associated with new products, foreign exchange fluctuations,
and availability of financing, as well as national and global
political, economic, business, competitive, market and regulatory
conditions. Other factors are more fully detailed in the Company’s
annual Form 10-K filings with the Securities and Exchange
Commission.
Financial Tables Follow: The following tables do not
contain footnotes or other information contained in the Company’s
Form 10-Q for the first quarter fiscal 2025 ended June 30, 2024,
which can be found on the Cyanotech website (www.cyanotech.com)
under Investors>Investor Filings upon filing. As such, the
following Financial Tables are provided only as a guide and other
factors are more fully detailed in the Company’s annual Form 10-K
filings with the Securities and Exchange Commission.
CYANOTECH CORPORATION
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except share
data)
(Unaudited)
June 30, 2024
March 31, 2024
ASSETS
Current assets:
Cash
$
720
$
707
Accounts receivable, net of allowance for
credit losses of $11 as of June 30, 2024 and March 31, 2024
2,137
2,102
Inventories
6,961
7,313
Prepaid expenses and other current
assets
551
469
Total current assets
10,369
10,591
Equipment and leasehold improvements,
net
9,783
10,109
Operating lease right-of-use assets,
net
4,156
4,284
Other assets
124
128
Total assets
$
24,432
$
25,112
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
2,311
$
1,439
Accrued expenses
587
757
Customer deposits
278
198
Operating lease obligations, current
portion
536
530
Short term debt - bank
1,120
1,240
Line of credit – related party
1,250
1,250
Current maturities of long-term debt
4,080
3,140
Total current liabilities
10,162
8,554
Long-term debt, less current
maturities
—
1,000
Long-term operating lease obligations
3,610
3,744
Total liabilities
13,772
13,298
Commitments and contingencies
Stockholders’ equity:
Preferred stock of $0.01 par value,
authorized 10,000,000 shares; no shares issued and outstanding
—
—
Common stock of $0.02 par value,
authorized 50,000,000 shares; issued and outstanding 6,948,379
shares at June 30, 2024 and 6,947,246 shares at March 31, 2024
139
139
Additional paid-in capital
34,624
34,576
Accumulated deficit
(24,103
)
(22,901
)
Total stockholders’ equity
10,660
11,814
Total liabilities and stockholders’
equity
$
24,432
$
25,112
CYANOTECH CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands)
(Unaudited)
Three Months Ended June
30,
2024
2023
Net sales
$
5,898
$
5,146
Cost of sales
4,422
3,614
Gross profit
1,476
1,532
Operating expenses:
General and administrative
1,268
1,274
Sales and marketing
1,165
1,276
Research and development
84
191
Total operating expenses
2,517
2,741
Loss from operations
(1,041
)
(1,209
)
Interest expense, net
(161
)
(160
)
Loss before income taxes
(1,202
)
(1,369
)
Income tax expense
—
—
Net loss
$
(1,202
)
$
(1,369
)
Net loss per share:
Basic
$
(0.17
)
$
(0.22
)
Diluted
$
(0.17
)
$
(0.22
)
Shares used in calculation of net loss per
share:
Basic
6,948
6,290
Diluted
6,948
6,290
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version on businesswire.com: https://www.businesswire.com/news/home/20240807649624/en/
Felicia Ladin (808) 334-9455 investorrelations@cyanotech.com
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