Cyanotech Reports Financial Results for the First Quarter of Fiscal 2024
Commenting on the first quarter fiscal year 2024 results, Cyanotech’s President and Chief Executive Officer, Matthew K. Custer, said:
“This quarter we continue to see the impact of consumers shifting their spend from goods to experiences and services and reallocation of spending related to the high cost of living. Due to these shifting consumer trends, we have added a new position to the Company, Chief Strategic and Commercial Officer, to oversee and drive market strategy and revenue opportunities.”
“Our production is performing efficiently, and we are managing production volumes in line with sales demand to control costs.”
“I am optimistic about the Company’s future as we continue to build brand awareness to our naturally derived high value nutritional products.”
First Quarter Fiscal 2024
Cyanotech reported net sales of
Trailing Twelve Months
For the trailing twelve months ended June 30, 2023, compared to the trailing twelve months ended June 30, 2022, net sales were
Please review the Company’s Form 10-Q for the period ended June 30, 2023 for more detailed information.
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— Cyanotech will host a virtual broadcast at 8:00 PM EDT on Monday, August 14, 2023 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) EDT on Monday, August 14, 2023. The Company will respond only to relevant questions relating to the Company’s first quarter fiscal 2024 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.
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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,
*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
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 2024 ended June 30, 2023, 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 |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(In thousands, except per share amounts) |
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(Unaudited) |
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|
|
June 30,
|
|
March 31,
|
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ASSETS |
|
|
|
|
|
|
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Current assets: |
|
|
|
|
|
|
||
Cash |
|
$ |
648 |
|
|
$ |
974 |
|
Accounts receivable, net of allowance for credit losses of |
|
|
1,794 |
|
|
|
1,331 |
|
Inventories |
|
|
10,506 |
|
|
|
10,707 |
|
Prepaid expenses and other current assets |
|
|
378 |
|
|
|
484 |
|
Total current assets |
|
|
13,326 |
|
|
|
13,496 |
|
|
|
|
|
|
|
|
||
Equipment and leasehold improvements, net |
|
|
11,065 |
|
|
|
11,366 |
|
Operating lease right-of-use assets, net |
|
|
4,656 |
|
|
|
4,776 |
|
Other assets |
|
|
85 |
|
|
|
90 |
|
Total assets |
|
$ |
29,132 |
|
|
$ |
29,728 |
|
|
|
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
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|
|
|
|
|
||
Current liabilities: |
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|
|
|
|
|
||
Accounts payable |
|
$ |
1,721 |
|
|
$ |
1,021 |
|
Accrued expenses |
|
|
821 |
|
|
|
1,101 |
|
Customer deposits |
|
|
77 |
|
|
|
89 |
|
Operating lease obligations, current portion |
|
|
494 |
|
|
|
483 |
|
Line of credit |
|
|
1,770 |
|
|
|
1,540 |
|
Line of credit – related party |
|
|
750 |
|
|
|
500 |
|
Current maturities of long-term debt |
|
|
3,313 |
|
|
|
3,369 |
|
Total current liabilities |
|
|
8,946 |
|
|
|
8,103 |
|
|
|
|
|
|
|
|
||
Long-term debt, less current maturities |
|
|
1,000 |
|
|
|
1,000 |
|
Long-term operating lease obligations |
|
|
4,146 |
|
|
|
4,275 |
|
Other long-term liabilities |
|
|
— |
|
|
|
3 |
|
Total liabilities |
|
|
14,092 |
|
|
|
13,381 |
|
|
|
|
|
|
|
|
||
Commitments and contingencies |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Stockholders’ equity: |
|
|
|
|
|
|
||
Preferred stock of |
|
|
— |
|
|
|
— |
|
Common stock of |
|
|
126 |
|
|
|
125 |
|
Additional paid-in capital |
|
|
33,917 |
|
|
|
33,856 |
|
Accumulated deficit |
|
|
(19,003 |
) |
|
|
(17,634 |
) |
Total stockholders’ equity |
|
|
15,040 |
|
|
|
16,347 |
|
Total liabilities and stockholders’ equity |
|
$ |
29,132 |
|
|
$ |
29,728 |
|
CYANOTECH CORPORATION |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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(In thousands, except per share amounts) |
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(Unaudited) |
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|
|
Three Months Ended
|
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|
|
2023 |
|
2022 |
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|
|
|
|
|
|
|
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Net sales |
|
$ |
5,146 |
|
|
$ |
6,716 |
|
Cost of sales |
|
|
3,614 |
|
|
|
4,398 |
|
Gross profit |
|
|
1,532 |
|
|
|
2,318 |
|
|
|
|
|
|
|
|
||
Operating expenses: |
|
|
|
|
|
|
||
General and administrative |
|
|
1,274 |
|
|
|
1,329 |
|
Sales and marketing |
|
|
1,276 |
|
|
|
1,168 |
|
Research and development |
|
|
191 |
|
|
|
246 |
|
Total operating expenses |
|
|
2,741 |
|
|
|
2,743 |
|
|
|
|
|
|
|
|
||
Loss from operations |
|
|
(1,209 |
) |
|
|
(425 |
) |
|
|
|
|
|
|
|
||
Interest expense, net |
|
|
(160 |
) |
|
|
(44 |
) |
|
|
|
|
|
|
|
||
Loss before income taxes |
|
|
(1,369 |
) |
|
|
(469 |
) |
|
|
|
|
|
|
|
||
Income tax expense |
|
|
— |
|
|
|
3 |
|
|
|
|
|
|
|
|
||
Net loss |
|
$ |
(1,369 |
) |
|
$ |
(472 |
) |
|
|
|
|
|
|
|
||
Net loss per share: |
|
|
|
|
|
|
||
Basic |
|
$ |
(0.22 |
) |
|
$ |
(0.08 |
) |
Diluted |
|
$ |
(0.22 |
) |
|
$ |
(0.08 |
) |
|
|
|
|
|
|
|
||
Shares used in calculation of net loss per share: |
|
|
|
|
|
|
||
Basic |
|
|
6,290 |
|
|
|
6,204 |
|
Diluted |
|
|
6,290 |
|
|
|
6,204 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230811829260/en/
Bruce Russell
(310) 346-6131
brussell@cyanotech.com
Source: Cyanotech Corporation