10-K - CYANOTECH CORP (0000768408) (Filer)

Wed, Jun 26, 8:04 PM (19 days ago)

Cyanotech Corporation's fiscal year 2024 report highlights several key financial metrics and challenges. The company reported a net sales decrease of 0.5% to $23.1 million, with a gross profit margin of 25.8%, down from 31.3% in the prior year. Operating expenses rose by 3.5%, contributing to a higher pretax loss of $5.3 million, compared to a $3.4 million loss in fiscal 2023. The net loss for the year was $5.3 million, resulting in a basic and diluted loss per share of $0.81. The company faced significant liquidity issues, with cash reserves decreasing to $0.7 million from $1.0 million the previous year. Notably, Cyanotech was not in compliance with certain debt covenants, raising substantial doubt about its ability to continue as a going concern. The company has taken measures such as cost-cutting initiatives and securing additional funding through a private placement and related-party loans to address these challenges. Future outlook remains uncertain due to ongoing macroeconomic pressures and competition in the dietary supplements market. The company continues to focus on operational efficiencies and strategic adjustments to improve financial stability.