Cyanotech Corporation

Aloha from Kona, Hawaii. Thank you all for joining us today to report Cyanotech's first quarter fiscal year 2025 earnings results. I am Matt Custer, President and Chief Executive Officer of Cyanotech. Joining me on the call today is Felicia Layden, our Chief Financial Officer. I will turn the call over to Felicia to provide our forward-looking statement.

Thanks, Matt. Our discussion today may include forward-looking statements. We do not undertake any obligation to update forward-looking statements, either as a result of new information, future events, or otherwise. Our actual results may differ materially from what is described in these forward-looking statements. Some of the factors that may cause results to differ are listed in our publicly filed documents. For additional information, We encourage you to review our 10Q and fiscal year 2024 10K report filed with the Securities and Exchange Commission. I'll turn it back to Matt for comments on the quarter. Matt?

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 lower gross profit. Production has been at a low for the trailing six quarters, resulting in higher costs, which resulted in the 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 the market demand. We feel positive about the future of our brand and the consumer's interest in sustainable, high-quality dietary supplements. Turning over the call to Felicia to discuss the financial results. Felicia?

Thank you, Matt, and good evening, everyone. Key financial results for the first quarter. Total net sales for the first quarter of fiscal 2025 were 5.9 million, compared to 5.1 million for the first quarter of fiscal 2024. Total sales revenue increased by 800,000, or 15% from prior year. Gross profit for the first quarter of fiscal 2025 was 1.5 million, with a gross profit margin of 25%, compared to gross profit of $1.5 million and a gross profit margin of 29.8% in the first quarter of fiscal 2024, a 4.8 percentage point decrease due to higher costs related to lower production volumes, as Matt noted. Operating loss for the first quarter was $1 million, compared to operating loss of $1.2 million in the first quarter of fiscal 2024, a decrease of $200,000. Net loss for the current quarter was $1.2 million or $0.17 per diluted share compared to net loss of $1.4 million or $0.22 per diluted share in the prior year. The company had cash of $720,000 and working capital of $207,000 compared to $707,000 and $2 million respectively as of March 31, 2024. The drop in working capital is due to lower inventory, higher accounts payable, and a reclassification of $1 million of debt from long-term to short-term. I will hand the call back to Matt for concluding comments. Matt?

We've had no questions. Thank you for attending the call. Aloha.