Q3 2024 Cyanotech Corp Earnings Call

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.

One 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 10-Q in fiscal year 2023, 10-K report filed with the Securities and Exchange Commission.

Turn it back to Matt for comments on the quarter Matt.

The macroeconomic environment led to lower sales across the portfolio on a year to date basis being driven particularly by squarely in a bulk sale industry data shows consumers are not pulling back from dietary supplements, but they have begun trading down to private label brands to save on cost the market for bulk material is increasingly.

Sensitive with many companies sourcing lower priced international ingredients.

In the face of these challenges we have revitalized our sales and marketing team starting with the addition of a chief commercial officer. This past August and strengthening the sales team. We are focused on enhancing our consumer message on our premium quality and competitive advantages are naturally farmed microbiology from our location in Hawaii with pristine waters and natural.

Sourcing practices aligns with rising consumer objectives, and growing demand for responsible sustainable and U S grown products.

Now I'd like to turn over the call to Felicia to discuss the third quarter Felicia. Please.

Thank you, Matt and good evening everyone.

Net sales for the third quarter of fiscal year, 2024, or $5 million $582000 compared to $5 $891000 for the third quarter of fiscal year 2023, a decrease of 5% due to the reasons Matt mentioned.

Gross profit for the third quarter of fiscal year 2024, It was $1 million $649000 with a gross profit margin of 29, 5% compared to gross profit of $1 million $764000 and a gross profit margin of 29, 9% in the third quarter of fiscal.

Year 2023.

Operating loss for the third quarter was $848000 compared to operating loss of $404000 last year, reflecting a decrease of $404000 due to lower sales and higher manufacturing costs.

Of not as a.

<unk> of matching production volumes with demand, which is lower than historical levels.

Net loss for the current quarter was $1 million.

$20000 or <unk> 12 per diluted share compared to a net loss of $598000 or 10 cents per diluted share in the prior year.

The company had cash of $661000 and working capital of $3 7 million as compared to $974000 or $5 4 million respectively. As of March 31 2023.

I'll hand, the call back to Matt for concluding comments Matt.

We've received two questions. This quarter question. One please comment on trends in the inventories we are drawing down their inventories of bulk spirit Lena <unk> antenna is part of our strategy to conserve cash by aligning on hand inventory with sales demand.

Question, two can you provide additional color or more granular detail about the company's initiatives to increase sales.

Today's consumers demand more transparency they are increasingly conscious and curious about the ingredients that go into products. They consume our products are not just made in the USA, but grown here in Hawaii, we can visually showcase our pharma facilities with unedited aerial flyover video to show not tell how we grow the products naturally outdoor.

<unk> and pristine surroundings, how our products are cultivated as one of our strongest competitive advantages versus other than any others in the world, we intend to amplify our consumer education and message on social media channels for transparency and authenticity are paramount.

We've also made key additions to the team with newly created head of global sales and business development, who has expertise will drive a more value added tailored and consultative approach to our business to business sales process centered around addressing the specific needs of bulk customers across industries.

Finally, we have strengthened our e-commerce and digital capabilities with the addition of a new ecommerce manager, whose expertise to build and leverage our user generated content and social media strategy centered around consumer education and visit visual storytelling not only to highlight our 40 years of product quality and benefits, but also to share how we set the.

<unk> of the highest bar for natural Microalgae algae cultivation.

For attending the call Aloha.

Yes.

Sure.