Cyanotech Corp

Aloha from Kona, Hawaii. Thank you all for joining us today to report Cyanotech's second quarter fiscal year 2025 earnings results. I am Matt Custer, President and Chief Executive Officer of Cyanotech. Joining me on the call today is Jennifer Rogerson, our Chief Financial Officer. I will turn the call over to Jennifer to provide a 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 will turn it back to Matt for comments on the quarter. Matt?

In prior quarters, our inventory levels were reduced to just-in-time levels to manage cash flow, and strong sales in the first quarter of fiscal 2025 decreased inventory. However, mid-quarter financing allowed us to start restocking, increasing work-in-progress inventory by $1.9 million, even though finished goods were still down by $1.5 million. Bulk inventory, which has a shorter production time, helped drive a 39% increase in sales, and revenue from contract extraction grew by 156%. However, packaged goods, which take longer to restock, saw a 21% decrease due to stock shortages and timing issues, contributing to an overall 8% drop in total sales for the quarter. For the first half of the year, sales were up 2%. While progress with packaged goods has been slower than expected, we're working quickly to replenish stock and continue promoting our algae-based products farmed in Hawaii's pristine waters. Turning over to Jennifer to discuss the financial results. Jennifer?