Cyanotech Corp.

KAILUA KONA, Hawaii--(BUSINESS WIRE)-- Cyanotech Corporation (Nasdaq Capital Market: 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 2024, ended June 30, 2023. 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 $5,146,000 for the first quarter of fiscal 2024 compared to $6,716,000 for the first quarter of fiscal 2023, a decrease of 23.4%. Gross profit was $1,532,000, with gross profit margin of 29.8%, compared to gross profit of $2,318,000, with gross profit margin of 34.5%. Operating loss for the first quarter of fiscal 2024 was $1,209,000 compared to operating loss of $425,000 in the same period of the prior year. Net loss for the current fiscal quarter was $1,369,000, or $0.22 per diluted share, compared to net loss of $472,000, or $0.08 per diluted share, for the same period of the prior year. 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 $21,607,000 compared to $33,720,000, respectively. Gross profit was $6,473,000, with gross profit margin of 30.0%, compared to $12,212,000 and 36.2%. Net loss was $4,337,000, or $0.69 per diluted share, compared to net income of $1,161,000, or $0.19 per diluted share. Please review the Company’s Form 10-Q for the period ended June 30, 2023 for more detailed information. --------------- — 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 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 and also distributes to dietary supplement, nutraceutical and cosmeceutical manufacturers and marketers. The Company is regulated by the Food and Drug Administration. Visit 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 2024 ended June 30, 2023, which can be found on the Cyanotech website ( ) 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 per share amounts) (Unaudited) June 30, 2023 March 31, 2023 ASSETS Current assets: Cash $ 648 $ 974 Accounts receivable, net of allowance for credit losses of $11 as of June 30, 2023 and $64 as of March 31, 2023 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 Current liabilities: 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 $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 6,291,086 shares at June 30, 2023 and 6,271,971 shares at March 31, 2023 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 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) Three Months Ended June 30, 2023 2022 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

DUBLIN, March 27, 2023 /PRNewswire/ -- The "Microalgae: Global Strategic Business Report" report has been added to ResearchAndMarkets.com's offering. Global Microalgae Market to Reach $1.6 Billion by 2030 The global market for Microalgae estimated at US$1 Billion in the year 2022, is projected to reach a revised size of US$1.6 Billion by 2030, growing at a CAGR of 5.7% over the analysis period 2022-2030. Spirulina, one of the segments analyzed in the report, is projected to record a 6.5% CAGR and reach US$706.2 Million by the end of the analysis period. Taking into account the ongoing post pandemic recovery, growth in the Chlorella segment is readjusted to a revised 4.9% CAGR for the next 8-year period. The U.S. Market is Estimated at $299.9 Million, While China is Forecast to Grow at 6.8% CAGR The Microalgae market in the U.S. is estimated at US$299.9 Million in the year 2022. China, the world's second largest economy, is forecast to reach a projected market size of US$331.5 Million by the year 2030 trailing a CAGR of 6.8% over the analysis period 2022 to 2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 4.5% and 5.1% respectively over the 2022-2030 period. Within Europe, Germany is forecast to grow at approximately 5.1% CAGR. What`s New for 2023? Special coverage on Russia-Ukraine war; global inflation; easing of zero-Covid policy in China and its `bumpy` reopening; supply chain disruptions, global trade tensions; and risk of recession. Global competitiveness and key competitor percentage market shares Market presence across multiple geographies - Strong/Active/Niche/Trivial Online interactive peer-to-peer collaborative bespoke updates Access to digital archives and Research Platform Complimentary updates for one year Key Topics Covered: MARKET OVERVIEW Competitive Market Presence - Strong/Active/Niche/Trivial for Players Worldwide in 2022 (E) Urgency of Ensuring Sustainability & Robust Investments in Algal Biotechnology as a Means to Achieve the Goal Provides the Foundation for Growth Sustainability Becomes More Important than Ever. Here's Why The Time to Get Our Act Together & Move Towards a Circular Bioeconomy Has Come Sustainable Investments to Emerge Into an Unstoppable Force in the Coming Decade Interest Deepens in Algal Biotechnology as a Potent Tool for Establishing a Circular Bioeconomy After Years of Neglect, The Current Focus on Sustainability is Bringing Algae Biotechnology Back Into the Spotlight Microalgae: A Quick Primer Recent Market Activity Innovations World Brands MARKET TRENDS & DRIVERS Robust Outlook for Nutraceuticals Strengthened by Pandemic Induced Focus on Immunity Drives Opportunities for Algae as Supplements and Nutritional/Functional Food Sources Nutraceuticals Market Outlook Increasing Familiarity With & Confidence in Nutraceuticals Primes the Market for Acceptance of Algae Based Food & Supplements Marine Nutraceuticals in the Spotlight Expanding Population, Rising Food Security & Increasing Consumption of Meat Drive Popularity of Microalgae as Feed Ingredients for Livestock Production Rise in Animal Meat Production Drives Demand for Feed Fortification by Algae Among Livestock Farmers Ban on Use of Antibiotics Drives Demand for Microalgal-Based Feed Increasing Animal Feed Sources with Algae: A Review Growing Popularity of Non-Animal Based Protein Bodes Well for the Rise of Algae Proteins Rising Carbon Footprint of Animal Agriculture Leads to Shift in Consumer Preference for Non-Animal Based Protein Alternatives A Growing Market for Protein Alternatives Expands the Addressable Market Opportunity for Algae Proteins Microalgae in the Food Industry is Poised for Healthy Growth Microalgae Emerges Into the Spotlight as the Biofuel of the Future Biodiesel Outlook in the Wake of Decarburization Efforts Robust Growth Projected for Biodiesel Brightens the Outlook for Algae Biofuel: Global Market for Biofuel (In US$ Billion) for Years 2020, 2022, 2024 & 2026 Growing Consensus that the Widely Adopted Biofuel Strategy to Reduce Vehicle Emission in Reality Is a Mistake, Drives Interest in Algae Biofuel Algae Based Biofuel Storms into a Spotlight With the Promise of Remedying the Situation Algae Based Inks Emerges as the Future of Inks Here's What is Going on the Field of Algae Based Inks Strong Demand for Eco-Friendly Ink from the Packaging Industry Bodes Well for Growth in this Segment Algae Cosmetics Promises to Slice Through the Lucrative Cosmetics Industry Supported by the Trend Towards Natural Ingredients Consumers Switching to Natural & Organic Cosmetics Lead Manufacturers to Explore the Potential of Using Algae in Cosmetics Algae's Role the Future of the Global Beauty Industry: A Review Robust Demand for Pharmaceutical Drugs Expands Algae & Microalgae Applications in Drug Formulations More Drugs Being Manufactured Means More Opportunities for the Use of Algae in Medicines & Drug Development Algae in Medicine: A Review FOCUS ON SELECT PLAYERS (Total 184 Featured) Algatechnologies Ltd. Allmicroalgae - Natural Products, SA Beijing Gingko Group Bluetec Naturals Co., Ltd C.B.N.Bioengineering Co., Ltd. Cyanotech Corporation DIC Corporation DSM N.V. E.I.D. - Parry (India) Limited Earthrise Nutritionals LLC Fuji Chemical Industries Co., Ltd. Fuqing King Dnarmsa Spirulina Co., Ltd. Jiangshan Comp Spirulina Co., Ltd. Naturex S.A Novozymes A/S NOW Health Group, Inc. Phycom Taiwan Chlorella Manufacturing Company Yunnan Green A Biological Project Co., Ltd. Zhejiang Binmei Biotechnology Co.,Ltd. For more information about this report visit About ResearchAndMarkets.com ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. Media Contact: Research and Markets Laura Wood, Senior Manager [email protected] For E.S.T Office Hours Call +1-917-300-0470 For U.S./CAN Toll Free Call +1-800-526-8630 For GMT Office Hours Call +353-1-416-8900 U.S. Fax: 646-607-1907 Fax (outside U.S.): +353-1-481-1716 Logo: SOURCE Research and Markets

KAILUA KONA, Hawaii--( BUSINESS WIRE )--Cyanotech Corporation (Nasdaq Capital Market: CYAN), a world leader in microalgae-based, high-value nutrition and health dietary supplement products, announced financial results for the third quarter and first nine months of fiscal year 2023, ended December 31, 2022. Commenting on the third quarter fiscal year 2023 results, Cyanotech’s President and Chief Executive Officer, Matthew K. Custer, said: “Sales in the third quarter improved by $712,000, or 14%, compared to the second quarter, as we saw modest improvement in consumer movement on both finished goods and bulk sales. However, both of our online finished good sales and our international bulk sales are still not performing to historical levels. On the international bulk sales, as the global supply chain issues eased, customers made adjustments to their inventory levels that impacted our sales. The inventory levels have improved but are still a headwind. We are focused on taking steps and making changes to improve these sales channels.” “The cash saving initiatives that we implemented in the second quarter, including slowing production and reducing headcount, were not fully realized until late in the third quarter, due to material lead times and payment terms. However, our working capital remains strong due to higher inventories that have long expiration dates.” Third Quarter Fiscal 2023 Cyanotech reported net sales of $5,891,000 for the third quarter of fiscal 2023 compared to $9,459,000 for the third quarter of fiscal 2022, a decrease of 37.7%. Gross profit was $1,764,000, with gross profit margin of 29.9%, compared to gross profit of $3,238,000, with gross profit margin of 34.2%. Operating loss for the third quarter of fiscal 2023 was $404,000 compared to operating income of $508,000 in the same period of the prior year. Net loss for the current fiscal quarter was $598,000, or $0.10 per diluted share, compared to net income of $386,000, or $0.06 per diluted share, for the same period of the prior year. First Nine Months of Fiscal 2023 Cyanotech reported net sales of $17,786,000 for the first nine months of fiscal 2023 compared to $27,842,000 for the same period in fiscal 2022, a decrease of 36.1%. Gross profit was $5,872,000, with gross profit margin of 33.0%, compared to gross profit of $10,672,000, with gross profit margin of 38.3%. Operating loss for the first nine months of fiscal 2023 was $1,666,000 compared to operating income of $2,210,000 in the same period of the prior year. Net loss for the first nine months of fiscal 2023 was $2,010,000, or $0.32 per diluted share, compared to net income of $1,877,000, or $0.30 per diluted share, for the same period of the prior year. Trailing Twelve Months For the trailing twelve months ended December 31, 2022, compared to the trailing twelve months ended December 31, 2021, net sales were $25,912,000 compared to $37,280,000. Gross profit was $8,766,000, with gross profit margin of 33.8%, compared to $13,442,000 and 36.1%. Net loss was $1,733,000, or $0.28 per diluted share, compared to net income of $1,676,000, or $0.27 per diluted share. Please review the Company’s Form 10-Q for the period ended December 31, 2022 for more detailed information. --------------- — Cyanotech will host a virtual broadcast at 8:00 PM EST on Friday, February 10, 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) EST on Friday, February 10, 2023. The Company will respond only to relevant questions relating to the Company’s third quarter fiscal 2023 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 third quarter fiscal 2023 ended December 31, 2022, 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 per share amounts) (Unaudited) December 31, 2022 March 31, 2022 ASSETS Current assets: Cash $ 513 $ 2,589 Accounts receivable, net of allowance for doubtful accounts of $35 as of December 31, 2022 and $67 as of March 31, 2022 2,156 3,664 Inventories 11,574 9,466 Prepaid expenses and other current assets 284 545 Total current assets 14,527 16,264 Equipment and leasehold improvements, net 11,693 11,885 Operating lease right-of-use assets, net 3,463 3,787 Other assets 89 109 Total assets $ 29,772 $ 32,045 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 1,031 $ 2,362 Accrued expenses 988 1,412 Customer deposits 97 164 Operating lease obligations, current portion 243 393 Line of credit 1,550 — Line of credit – related party 500 — Current maturities of long-term debt 261 490 Total current liabilities 4,670 4,821 Long-term debt, less current maturities 4,166 4,336 Long-term operating lease obligations 3,203 3,386 Other long-term liabilities — 15 Total liabilities 12,039 12,558 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 6,271,971 shares at December 31, 2022 and 6,202,223 shares at March 31, 2022 125 124 Additional paid-in capital 33,812 33,557 Accumulated deficit (16,204 ) (14,194 ) Total stockholders’ equity 17,733 19,487 Total liabilities and stockholders’ equity $ 29,772 $ 32,045 CYANOTECH CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) Three Months Ended December 31, Nine Months Ended December 31, 2022 2021 2022 2021 Net sales $ 5,891 $ 9,459 $ 17,786 $ 27,842 Cost of sales 4,127 6,221 11,914 17,170 Gross profit 1,764 3,238 5,872 10,672 Operating expenses: General and administrative 1,021 1,403 3,631 4,171 Sales and marketing 1,041 1,127 3,351 3,808 Research and development 106 200 556 483 Total operating expenses 2,168 2,730 7,538 8,462 (Loss) income from operations (404 ) 508 (1,666 ) 2,210 Interest expense, net (186 ) (116 ) (333 ) (312 ) (Loss) income before income taxes (590 ) 392 (1,999 ) 1,898 Income tax expense 8 6 11 21 Net (loss) income $ (598 ) $ 386 $ (2,010 ) $ 1,877 Net (loss) income per share: Basic $ (0.10 ) $ 0.06 $ (0.32 ) $ 0.31 Diluted $ (0.10 ) $ 0.06 $ (0.32 ) $ 0.30 Shares used in calculation of net (loss) income per share: Basic 6,272 6,183 6,235 6,144 Diluted 6,272 6,195 6,235 6,165