Cyanotech (CYAN) Q1 2026 Earnings Call August 07, 2025 08:00 PM ET Speaker0Aloha from Kona, Hawaii. Thank you all for joining us today to report Cytotec's first quarter fiscal year twenty twenty six earnings results. I am Matt Custer, President and Chief Executive Officer of Cytotec. Joining me on the call today is Jennifer Rogerson, our Chief Financial Officer. I will turn the call over to Jennifer to provide our forward looking statement.Speaker1Thanks, Matt. Our discussion today may include forward looki ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For Quarterly Period Ended June 30, 2025 Or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period From to Commission File Number 0-14602 CYANOTECH CORPORATION (Exact name of registrant as specified in its charter) Nevada 91-1206026 (State or other jurisdictio ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended March 31, 2025 Or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period From to Commission File Number 0-14602 CYANOTECH CORPORATION (Exact name of registrant as specified in its charter) Nevada 91-1206026 (State or other jurisdiction ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For Quarterly Period Ended December 31, 2024 Or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period From to Commission File Number 0-14602 CYANOTECH CORPORATION (Exact name of registrant as specified in its charter) Nevada 91-1206026 (State or other jurisdi ...

Core Insights - The global spirulina beverages market is projected to reach USD 61 million by 2030, with a compound annual growth rate (CAGR) of 14.5% from 2025 to 2030, driven by a shift towards healthier, nutritious, and vegan food options [2][8] Market Overview - The consumption of spirulina has significantly increased, creating new opportunities for spirulina-derived beverages as consumers prefer healthy options over carbonated drinks [3] - Spirulina is recognized for its high protein content and beneficial properties, including hypolipidemic, antioxidant, and anti-inflammatory effects [3] Regional Insights - North America accounted for over 33.3% of the spirulina beverages market in 2024, attributed to high consumption of algae-based protein and a growing vegan population [4][10] - The trend towards plant-based protein sources is gaining traction as consumers seek healthier lifestyles [4] Distribution Channels - Hypermarkets and supermarkets represented the largest segment of the market with a share of over 60.9% in 2024, due to high visibility and the ability for consumers to physically verify products [5] - The online retail segment is expected to experience the highest CAGR during the forecast period, driven by increased internet and smartphone adoption [5] Market Dynamics - The report highlights the increasing popularity of vegan trends globally, as consumers seek eco-friendly food products that meet their nutritional needs [5] - The industry is still in its nascent stage, with few companies currently offering products, but there is potential for growth as existing companies in spirulina powder and extracts enter the beverage market [10] Financial Projections - The estimated market value for spirulina beverages in 2024 is USD 27.3 million, with a forecasted value of USD 61 million by 2030 [8]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For Quarterly Period Ended September 30, 2024 Or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period From to Commission File Number 0-14602 CYANOTECH CORPORATION (Exact name of registrant as specified in its charter) Nevada 91-1206026 (State or other jurisd ...

CYAN (CYAN, Financial), a company listed on the U.S. OTC market, experienced a significant stock price increase of 6.58%. The stock is currently trading at $0.81 per share with a trading volume of 6,855 shares and a turnover rate of 0.10%. The stock's price volatility today was 2.26%. Recent financial reports for CYAN show that the company achieved a revenue of $5.90 million. However, it reported a net loss of $1.20 million, translating to an earnings per share (EPS) of -$0.17. The gross profit stood at $1. ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For Quarterly Period Ended June 30, 2024 Or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period From to Commission File Number 0-14602 CYANOTECH CORPORATION (Exact name of registrant as specified in its charter) Nevada 91-1206026 (State or other jurisdictio ...

Part I [Business](index=5&type=section&id=Item%201.%20Business) Cyanotech is a global leader in microalgae-derived natural products, primarily BioAstin® Astaxanthin and Hawaiian Spirulina, cultivated at its unique Hawaiian facility - The company is a **world leader** in producing high-value natural products from microalgae, operating from a **96-acre facility** in Kona, Hawaii, which offers unique environmental advantages for cultivation[15](index=15&type=chunk)[17](index=17&type=chunk) - The company's two major product lines are **BioAstin® Hawaiian Astaxanthin®** (a powerful antioxidant) and **Hawaiian Spirulina Pacifica®** (a nutrient-rich superfood)[19](index=19&type=chunk) Net Sales by Product Line (in thousands) | Product Line | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | **Natural astaxanthin products (BioAstin®)** | $15,104 | $14,209 | $17,378 | | **Spirulina products (Hawaiian Spirulina Pacifica®)** | $7,351 | $8,355 | $17,990 | | **Contract extraction and R&D services** | $616 | $614 | $600 | | **Total** | **$23,071** | **$23,178** | **$35,968** | - For fiscal year 2024, two major customers accounted for **34%** and **17%** of total net sales, indicating significant customer concentration[44](index=44&type=chunk) - The company's patents for production methods and BioAstin® usage have **expired**, now relying on trade secrets, know-how, and its unique location for competitive advantage[46](index=46&type=chunk)[47](index=47&type=chunk) [Risk Factors](index=11&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant operational, market, and financial risks, including facility vulnerability, intense competition, and going concern doubts - The company's operations are concentrated at a single facility in Hawaii, making it vulnerable to natural disasters, weather patterns, and resource shortages like water and power[60](index=60&type=chunk)[62](index=62&type=chunk)[65](index=65&type=chunk) - The company faces significant financial risk, with recurring losses, negative cash flow, and an accumulated deficit of approximately **$22.9 million** as of March 31, 2024, raising substantial doubt about its ability to continue as a going concern[104](index=104&type=chunk)[105](index=105&type=chunk) - The company has defaulted on debt covenants related to its debt service coverage ratio and current ratio as of March 31, 2024, and is seeking a waiver from its lender, with failure to obtain a waiver potentially leading to default and bankruptcy[102](index=102&type=chunk)[103](index=103&type=chunk) - Significant customer concentration risk exists, with the top ten customers generating **69%** of net sales in fiscal 2024, where the loss of a major customer could materially reduce revenues[75](index=75&type=chunk) - Two largest shareholders collectively own approximately **32.7%** of the common stock, which could allow them to exert substantial influence over the company's business and policies[84](index=84&type=chunk) [Cybersecurity](index=24&type=section&id=Item%201C.%20Cybersecurity) The company maintains a cybersecurity risk management program with Board oversight, reporting no material incidents to date - The company has a cybersecurity risk management program that includes risk assessments, an incident response plan, and employee training, with oversight from the Board of Directors[109](index=109&type=chunk)[111](index=111&type=chunk) - As of the end of fiscal year 2024, the company has not identified any cybersecurity risks or incidents that have materially affected its business, operations, or financial condition[110](index=110&type=chunk) [Properties](index=24&type=section&id=Item%202.%20Properties) The company's primary 96-acre facility and headquarters are in Kailua-Kona, Hawaii, under long-term leases expiring in 2035 and 2037 - The main operations are on a **96-acre** property in Kailua-Kona, Hawaii, leased from the State of Hawaii with leases expiring in **2035** and **2037**[112](index=112&type=chunk) [Legal Proceedings](index=24&type=section&id=Item%203.%20Legal%20Proceedings) As of March 31, 2024, the company reported no significant outstanding legal proceedings - As of March 31, 2024, the company had no significant outstanding legal proceedings[113](index=113&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=25&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on OTCQB under 'CYAN', with no history of cash dividends due to lender restrictions - The company's common stock is traded on the **OTCQB Venture Market** under the symbol "**CYAN**"[114](index=114&type=chunk) - The company has never paid cash dividends and is prohibited from doing so by an existing loan agreement[115](index=115&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses declining sales, operating losses, and liquidity challenges, including debt covenant violations and going concern doubts, despite cost-saving efforts [Results of Operations](index=28&type=section&id=Results%20of%20Operations) FY2024 saw a slight sales decrease to $23.1 million, with worsening operating and net losses, and a decline in gross profit margin to 25.8% Consolidated Performance Summary ($ in thousands) | Metric | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Net sales | $23,071 | $23,178 | $35,968 | | Gross profit | $5,945 | $7,259 | $13,566 | | Gross profit % | 25.8% | 31.3% | 37.7% | | Operating (loss) income | $(4,592) | $(2,920) | $2,574 | | Net (loss) income | $(5,267) | $(3,440) | $2,154 | - In FY2024, net sales decreased **0.5%** to **$23.1 million**, with a **$1.0 million (12.0%)** decrease in spirulina sales largely offset by a **$0.9 million (6.3%)** increase in astaxanthin sales[130](index=130&type=chunk) - Gross profit margin decreased by **5.5 percentage points** in FY2024 to **25.8%**, caused by higher per-kilogram costs from lower production volumes and inventory write-downs[133](index=133&type=chunk) - Bulk sales saw a significant decline of **44.5%** in FY2024, with spirulina bulk sales dropping **55.6%** and astaxanthin bulk sales down **24.8%**, while total packaged sales grew **13.8%**[131](index=131&type=chunk)[132](index=132&type=chunk) [Liquidity and Going Concern](index=30&type=section&id=Liquidity%20and%20Going%20Concern) Recurring losses, negative cash flows, and debt covenant violations raise substantial doubt about the company's ability to continue as a going concern - Recurring operating losses, negative cash flows, and debt covenant violations have raised substantial doubt about the company's ability to continue as a going concern[139](index=139&type=chunk)[190](index=190&type=chunk) - As of March 31, 2024, the company was not in compliance with the debt service coverage ratio and current ratio covenants required by its lender, First Foundation Bank, and is seeking a waiver[142](index=142&type=chunk)[193](index=193&type=chunk) - The company is utilizing a **$2.0 million** revolving line of credit from a related party, with **$1.25 million** outstanding as of March 31, 2024, which expires in April 2025[141](index=141&type=chunk)[192](index=192&type=chunk) - In December 2023, the company raised net proceeds of **$388,000** for working capital through a private placement of **400,000 shares** of common stock at **$1.00 per share**[143](index=143&type=chunk)[194](index=194&type=chunk) [Cash Flows](index=32&type=section&id=Cash%20Flows) FY2024 operating cash outflow improved to $0.5 million, with overall cash decreasing by $0.3 million due to investing and financing activities Summary of Cash Flows ($ in thousands) | Activity | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | **Operating activities** | $(455) | $(2,100) | $2,379 | | **Investing activities** | $(381) | $(1,068) | $(1,270) | | **Financing activities** | $569 | $1,553 | $(2,287) | | **Net decrease in cash** | **$(267)** | **$(1,615)** | **$(1,178)** | [Financial Statements and Supplementary Data](index=35&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents audited financial statements, including balance sheets and income statements, with the auditor's report highlighting going concern doubts - The independent auditor's report includes a "Going Concern" paragraph, citing operating losses, negative cash flows, and non-compliance with debt covenants as conditions that raise substantial doubt about the company's ability to continue as a going concern[172](index=172&type=chunk) Consolidated Balance Sheet Data (in thousands) | Account | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $10,591 | $13,496 | | **Total Assets** | $25,112 | $29,728 | | **Total Current Liabilities** | $8,554 | $8,103 | | **Total Liabilities** | $13,298 | $13,381 | | **Total Stockholders' Equity** | $11,814 | $16,347 | Consolidated Statements of Operations Data (in thousands) | Account | FY 2024 | FY 2023 | FY 2022 | | :--- | :--- | :--- | :--- | | **Net sales** | $23,071 | $23,178 | $35,968 | | **Gross profit** | $5,945 | $7,259 | $13,566 | | **(Loss) income from operations** | $(4,592) | $(2,920) | $2,574 | | **Net (loss) income** | $(5,267) | $(3,440) | $2,154 | | **Basic and Diluted EPS** | $(0.81) | $(0.55) | $0.35 | - In FY2024, the company expensed **$206,000** in abnormal production costs and **$467,000** in other non-inventoriable fixed costs to cost of sales, primarily due to regenerating fallowed spirulina ponds and lower overall production volumes[230](index=230&type=chunk)[232](index=232&type=chunk) - The company has a loan and a revolving line of credit with a related party (Skywords Family Foundation, Inc., controlled by the Chairman), with outstanding balances of **$1.0 million** on the term loan and **$1.25 million** on the revolver as of March 31, 2024[244](index=244&type=chunk)[245](index=245&type=chunk)[290](index=290&type=chunk) - A full valuation allowance of **$4.4 million** has been recorded against deferred tax assets as of March 31, 2024, due to cumulative losses in recent years, indicating it is more likely than not that these assets will not be realized[279](index=279&type=chunk)[280](index=280&type=chunk) [Controls and Procedures](index=62&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of March 31, 2024 - Management concluded that the company's disclosure controls and procedures, as well as its internal control over financial reporting, were effective as of March 31, 2024[293](index=293&type=chunk)[294](index=294&type=chunk) [Other Information](index=62&type=section&id=Item%209B.%20Other%20Information) The Chairman of the Board initiated a Rule 10b5-1 trading plan on March 6, 2024, to purchase 315,000 shares - The Chairman of the Board, Michael Davis, entered into a Rule 10b5-1 trading plan on March 6, 2024, to purchase **315,000 shares** of company stock[298](index=298&type=chunk) Part III [Directors, Executive Officers, Compensation, Security Ownership, and Accountant Fees](index=63&type=section&id=Items%2010%2C%2011%2C%2012%2C%2013%20and%2014) Information on directors, executive compensation, security ownership, and accountant fees is incorporated by reference from the 2024 Proxy Statement - Information regarding directors, executive officers, compensation, security ownership, and accountant fees is incorporated by reference from the company's definitive 2024 Proxy Statement[301](index=301&type=chunk)[303](index=303&type=chunk)[304](index=304&type=chunk)[305](index=305&type=chunk)[306](index=306&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=64&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed with the Form 10-K, including material contracts and certifications - This section contains the list of all financial statements, schedules, and exhibits filed with the Form 10-K, including material contracts and certifications[307](index=307&type=chunk)[309](index=309&type=chunk) [Signatures](index=69&type=section&id=Item%2016.%20Signatures) This section contains the formal signatures of the registrant's authorized officers and directors, certifying the report

Cyanotech Corporation (NASDAQ:CYAN) Q3 2024 Results Conference Call February 9, 2024 8:00 PM ET Company Participants Matt Custer - President and CEO Felicia Ladin - CFO Matt Custer Aloha from Kona, Hawaii. Thank you all for joining us today. I'm Matt Custer, President and Chief Executive Officer of Cyanotech. Joining me on the call today is Felicia Ladin, our Chief Financial Officer. I will turn the call over to Felicia to provide our forward-looking statement. Felicia Ladin Thanks, Matt. Our discussion tod ...