Cyanotech Corporation

Aloha from Kona, Hawaii. Thank you all for joining us today to report SciOtech's fourth quarter and fiscal year 2025 earnings results. I am Matt Custer, President and Chief Executive Officer of SciOtech. 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.

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 these factors that may cause results to differ are listed on our publicly filed documents. For additional information, we encourage you to review our 10K Fiscal Year 2025 report filed with the Securities and Exchange Commission. I will turn it back to Matt for comments on the quarter. Matt.

Although the year had its challenges, I'm pleased with the momentum we have seen throughout the year. resulting in a 5% growth in net sales. Efficiencies in production and tight inventory management played a large role in the 11% improvement in expenses that we experienced from prior year, resulting in a more favorable net loss. Our product mix in sales shifted from prior year, with our bulk spirulina and bulk acid xanthan growing 53% and 74% respectively. This increase was offset by a decline in our package sales of 5%. We continue to expand market awareness with strategic initiatives by hiring a head of sales to focus on deeper retail channel expansion, building on the strategic market awareness we have focused on this year. As we look forward to the next fiscal year and the heightened demand for our products, we are continuing to balance our focus on managing our inventory levels to meet the demand while also being conservative with our cash. Turning over to Jennifer to discuss the financial results. Jennifer.

Thank you, Matt, and good evening, everyone. Key financial results for the fourth quarter and fiscal year 2025. In the fourth quarter this fiscal year, net sales were 6.3 million as compared to 6 million last year, an increase of $330,000, or 5.5%. Total sales for the fiscal year were 24.2 million compared to 23.1 million last year, an increase of 1.1 million, or 5%. Gross profit for the fourth quarter of fiscal 2025 was $1.7 million with a gross profit margin of 27.7% compared to a gross profit of $675,000 and gross margin of 11.3% in the fourth quarter of fiscal year 2024. Total gross profit for the fiscal year was $6.9 million with a gross profit margin of 28.4% as compared to $5.9 million with a gross profit margin of 25.8% last year. The 2.6 percentage point increase was a result of higher production volumes and efficiencies in production driving our costs down. Fourth quarter operating loss was $442,000 compared to an operating loss of $1.9 million in the fourth quarter of the prior fiscal year. Fiscal year 2025 operating loss was $2.5 million compared to an operating loss of $4.6 million in fiscal year 2024. Net loss for the current quarter was $627,000 or $0.09 loss per diluted share compared to a net loss of $2.1 million or $0.30 loss per diluted share in the prior year. Net loss for the full year was $3.2 million or $0.45 loss per diluted share compared to a net loss of $5.3 million or $0.81 loss per diluted share in the prior year. We ended the current fiscal year with cash of $257,000 and working capital of $302,000 compared to $707,000 and $2 million, respectively, at the end of fiscal year 2024. I will hand the call back to Matt for concluding comments. Matt.

We did not receive any questions. Aloha.