Fri, Jun 20, 8:03 PM (29 days ago)
### Summary of Cyanotech Corporation (CYAN) 10-K Filing **Company Overview:** Cyanotech Corporation (CYAN) is a global leader in premium quality, sustainable microalgae cultivation, producing high-value natural ingredients and dietary supplement products for health and wellness. The company operates in one segment, focusing on the cultivation and production of microalgae into high-value, high-quality natural health and nutrition products. **Financial Performance:** - **Revenue:** $24.2 million for the fiscal year ended March 31, 2025, a 5.0% increase from the prior year. - **Gross Profit:** $6.9 million, representing 28.4% of net sales. - **Operating Expenses:** $9.4 million, or 38.8% of net sales. - **Net Loss:** $3.2 million, an improvement from a $5.3 million loss in the previous year. - **Cash Position:** $257,000 as of March 31, 2025, down from $707,000 in the prior year. **Product Lines:** - **BioAstin® Hawaiian Astaxanthin®:** Represented 65% of net sales, known for its antioxidant properties. - **Hawaiian Spirulina Pacifica®:** Represented 32% of net sales, a nutrient-rich superfood. - **Contract Extraction and R&D Services:** Represented 4% of net sales. **Market Position:** - **Competitive Landscape:** Faces competition from similar products and dietary supplements. - **Customer Concentration:** Two customers accounted for 31% and 10% of total net sales for the fiscal year ended March 31, 2025. **Strategic Overview:** - **Focus:** Growing the market for high-quality, higher-margin consumer products. - **Challenges:** Dependence on favorable weather conditions and environmental factors. - **Future Outlook:** Continued focus on cost savings and operational efficiency. **Risk Factors:** - **Operational Risks:** Dependence on weather, disease, contamination, and water availability. - **Financial Risks:** Significant debt obligations and potential default risks. - **Market Risks:** Competition and economic conditions affecting consumer spending. **Financial Condition:** - **Debt:** Significant debt obligations, including a term loan and revolving credit facilities. - **Liquidity:** Reliance on funding sources to address cash flow challenges. - **Going Concern:** Substantial doubt about the ability to continue as a going concern due to recurring losses and negative cash flows. **Market Position Changes:** - **Stock Performance:** Volatile stock price, influenced by market conditions and operational results. - **Dividends:** No dividends declared or paid on common stock. **Conclusion:** Cyanotech Corporation faces significant financial and operational challenges, including substantial debt, operational risks, and market competition. The company's strategic focus on high-quality products and cost savings initiatives aims to improve its financial condition, but ongoing risks and uncertainties remain.