Cyanotech Corporation - Company Summary

Business Overview

• Primary Focus: Cultivation and production of microalgae-derived natural health and nutrition products.
• Core Competencies: Large-scale cultivation using proprietary systems and environmentally sensitive open-pond agricultural methods on the Kona coast of Hawaii.
• Location: Main facility located at the Natural Energy Laboratory of Hawaii Authority (NELHA) in Kailua-Kona, Hawaii.
• Size: Operates a 96-acre facility with cultivation ponds, processing, research, and administrative buildings. Also rents warehouse space in California.

Key Products

• BioAstin® Hawaiian Astaxanthin®:

  • Natural antioxidant, used for supporting inflammatory response, skin health, eye, joint, brain, and immune health.
  • Since 1997 in production; approved for sale in the U.S. and Europe.
  • Derived from Haematococcus pluvialis microalgae cultivated with deep ocean water in proprietary closed culture systems and open ponds.
  • Certified non-GMO, gluten-free, glyphosate-free, vegan, Halal, and GMP certified.
  • Significant portion of revenue (approx. 65% in FY2025).

• Hawaiian Spirulina Pacifica®:

  • Nutrient-rich superfood and dietary supplement.
  • Contains protein, beta-carotene, carotenoids, B vitamins, gamma-linolenic acid, amino acids.
  • Cultivated in fresh water using proprietary technology; dried via Ocean-Chill Drying process to preserve nutrients.
  • Available in powder, tablets, and gummies.
  • Certified Kosher, Halal, non-GMO, Vegan, and gluten-free.
  • Represents about 32% of net sales in FY2025.

Revenue and Financials

• Total Revenue (FY2025): $24.2 million (up from $23.1 million in FY2024).
• Main Revenue Sources:
  • Natural astaxanthin products: $15.7 million (approx. 65% of FY2025 sales).
  • Spirulina products: $7.6 million.
  • Contract extraction and R&D services: $849,000.
• Net Loss (FY2025): $3.2 million (improved from a $5.3 million loss in FY2024).
• Employees: 83 as of March 31, 2025.
• Market Capitalization (as of September 30, 2024): Approximately $2.98 million based on stock valuation.
• Shares Outstanding (June 13, 2025): 7,232,217 shares of common stock.

Production and Cultivation

• Cultivation Methods: Combination of PhytoDome CCS closed systems and open ponds.
• Growth Conditions: Located in Kona, Hawaii to utilize consistent sunlight, warm temperatures, low rainfall, and ocean water for cultivation.
• Water Use: Fresh water and deep ocean water from 2,000 feet depth; ocean water is used in drying and as trace nutrients.
• Operations: Generally allows year-round harvest; relies heavily on environmental conditions.

Market and Competition

• Main Markets: U.S., international regions, health food industry, dietary supplement industry.
• Major Customers: Two customers accounted for 31% and 10% of sales in FY2025; two customers also represented 34% and 17% of FY2024 sales.
• Competitive Landscape: Competes with global producers like Fuji Chemical (Japan), Algalif (Iceland), AlgaTechnologies (Israel), BGG (China), Earthrise (USA), and Parry Nutraceuticals (India).

Additional Details

• Focus on Growth: Emphasis on increasing sales of high-margin consumer products and expanding market for natural, high-quality ingredients.
• Certifications and Quality: Multiple third-party quality approvals (e.g., Informed Choice, Vegan.org, Gluten-free, Glyphosate Free, Halal).
• Location Advantages: Access to deep ocean water, favorable climate, designated Biosecure Zone, and proprietary cultivation technology.
• Key Challenges: Environmental risks, water supply costs, global competition, reliance on key customers, and maintaining proprietary technology.