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2021 ANNUAL REPORT Deardear Cyanotechcyanotech Corporation Corporation 2021 2021 Annual Annual Report Report

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2021 ANNUAL REPORT Deardear Cyanotechcyanotech Corporation Corporation 2021 2021 Annual Annual Report Report CORPORATE HEADQUARTERS Cyanotech Corporation 73-4460 Queen Kaahumanu Hwy, Suite 102 Keahole Point Kailua-Kona, Hawaii 96740 t (808) 326-1353 | f (808) 329-3597 cyanotech.com WHOLLY OWNED SUBSIDIARY Nutrex Hawaii, Inc. 2021 ANNUAL REPORT DearDear CyanotechCyanotech Corporation Corporation 2021 2021 Annual Annual Report Report Officers Investor Relations Market for Common Equity and Officers Investor Relations Market for Common Equity and Shareholders Gerald R. Cysewski, Ph.D. Russell Communications Group Related Stockholders Matters Shareholders Gerald R. Cysewski, Ph.D. Russell Communications Group Related Stockholders Matters Chief Executive Officer Tel (310) 346-6131 The Company’s common stock is listed and traded on the Chief Executive Officer Tel (310) 346-6131 The Company’s common stock is listed and traded on the A Letter from Our CEO [email protected] NASDAQ Capital Market under the symbol “CYAN”. The A Letter from Our CEO [email protected] NASDAQ Capital Market under the symbol “CYAN”. The Matthew K. Custer closing price of our common stock was $2.80 as of June This was a challenging year for everyone. Fortunately, Cyanotech Matthew K. Custer closing price of our common stock was $2.80 as of June This was a challenging year for everyone. Fortunately, Cyanotech President Felicia I. Ladin 15, 2021. The approximate number of holders of record President Felicia I. Ladin 15, 2021. The approximate number of holders of record was declared an “essential” company and we were able to Chief Financial Officer of our common stock was 390. The high and low selling was declared an “essential” company and we were able to Chief Financial Officer of our common stock was 390. The high and low selling maintain full operations during the pandemic with selected Felicia I. Ladin [email protected] prices as reported by NASDAQ were as follows: maintain full operations during the pandemic with selected Gerald R. Cysewski Felicia I. Ladin [email protected] prices as reported by NASDAQ were as follows: staff working remotely and other minor adjustments. I want to Gerald R. Cysewski Chief Financial Officer, Vice President staff working remotely and other minor adjustments. I want to Chief Executive Officer Chief Financial Officer, Vice President Chief Executive Officer of Finance and Administration, Transfer Agent and Registrar thank our dedicated team for their commitment to Cyanotech of Finance and Administration, Transfer Agent and Registrar thank our dedicated team for their commitment to Cyanotech Treasurer Computershare Investor Services Fiscal 2021 during these uncertain times. Treasurer Computershare Investor Services Fiscal 2021 during these uncertain times. ® ® 250 Royall St, Canton, MA 02021 Common stock price per share labels for both our BioAstin ®Hawaiian Astaxanthin ®and 250 Royall St, Canton, MA 02021 Common stock price per share labels for both our BioAstin Hawaiian Astaxanthin and Glenn D. Jensen www.computershare.com Q End June 30 Sept 30 Dec 31 March 31 During the pandemic, we saw a shift in revenue from brick Hawaiian Spirulina Pacifica® products. The new labels were Glenn D. Jensen www.computershare.com During the pandemic, we saw a shift in revenue from brick ® Vice President of Operations Q End June 30 Sept 30 Dec 31 March 31 and mortar outlets to more on-line services. Revenue for Hawaiian Spirulina Pacifica products. The new labels were Vice President of Operations High $3.13 $3.20 $3.45 $6.29 and mortar outlets to more on-line services. Revenue for very well received in the marketplace. Independent Registered Public High $3.13 $3.20 $3.45 $6.29 very well received in the marketplace. Independent Registered Public Low $1.91 $2.14 $2.37 $3.01 FY2021 was $32.3 million, a modest increase of 1.4% from Jennifer M. Johansen Accountants Low $1.91 $2.14 $2.37 $3.01 FY2021 was $32.3 million, a modest increase of 1.4% from Jennifer M. Johansen Accountants FY2020. Net income increased to $0.9 million in FY2021 up We are experiencing some disruptions to our supply chain in Vice President of Quality, Regulatory Grant Thornton LLP FY2020. Net income increased to $0.9 million in FY2021 up We are experiencing some disruptions to our supply chain in Vice President of Quality, Regulatory Grant Thornton LLP from $0.4 million in FY2020, primarily due to the forgiveness sourcing certain materials and bottlenecks at our third-party and Government Affairs 4695 MacArthur Court, Suite 1600 from $0.4 million in FY2020, primarily due to the forgiveness sourcing certain materials and bottlenecks at our third-party and Government Affairs 4695 MacArthur Court, Suite 1600 Fiscal 2020 partners that are causing delays in shipping product. We Newport Beach, CA 92660 Fiscal 2020 of a Payroll Protection Program loan of $1.4 million. At the partners that are causing delays in shipping product. We Newport Beach, CA 92660 Common stock price per share of a Payroll Protection Program loan of $1.4 million. At the Amy B. Nordin www.grantthornton.com Common stock price per share end of FY2021, we had cash of $3.8 million and working are working through issues as they arise and look forward to Amy B. Nordin www.grantthornton.com Q End June 30 Sept 30 Dec 31 March 31 end of FY2021, we had cash of $3.8 million and working are working through issues as they arise and look forward to Vice President Human Resources, Q End June 30 Sept 30 Dec 31 March 31 a good FY2022 as the pandemic subsides. I want to again Vice President Human Resources, capital of $9.3 million compared to $2.4 million and $8.4 a good FY2022 as the pandemic subsides. I want to again Secretary Legal Counsel High $3.47 $3.02 $2.78 $3.25 capital of $9.3 million compared to $2.4 million and $8.4 Secretary Legal Counsel High $3.47 $3.02 $2.78 $3.25 million, respectively, at the end of FY2020. Also in FY2021, thank our dedicated employees who are working hard to Farella Braun + Martel, LLP Low $3.00 $2.01 $2.17 $1.82 million, respectively, at the end of FY2020. Also in FY2021, thank our dedicated employees who are working hard to Farella Braun + Martel, LLP Low $3.00 $2.01 $2.17 $1.82 we paid down $1.7 million of debt. produce the highest quality microalgae products possible that Directors Russ Building we paid down $1.7 million of debt. produce the highest quality microalgae products possible that Directors Russ Building enhance people’s lives worldwide. Michael A. Davis 3 235 Montgomery Street enhance people’s lives worldwide. Michael A. Davis 3 235 Montgomery Street Progress was made during FY2021. In the second quarter, Private Investor San Francisco, CA 94104 The Company is prohibited from declaring any common Progress was made during FY2021. In the second quarter, Private Investor San Francisco, CA 94104 The Company is prohibited from declaring any common Cyanotech introduced BioAstin® water dispersible powder Thank you for your continued support. www.fbm.com stock dividends without the prior written consent of a Cyanotech introduced BioAstin® water dispersible powder Thank you for your continued support. www.fbm.com stock dividends without the prior written consent of a Nancy E. Katz 1,3 lender per the conditions of an existing term loan agree- in 1% and 2% concentrations for worldwide bulk sales. This Nancy E. Katz 1,3 lender per the conditions of an existing term loan agree- in 1% and 2% concentrations for worldwide bulk sales. This CEO Additional Information ment with such lender. The Company has never declared powder can be dissolved in hot or cold water, ready-to-drink CEO Additional Information ment with such lender. The Company has never declared powder can be dissolved in hot or cold water, ready-to-drink NKI Consulting Copies of Cyanotech’s news releases and or paid cash dividends on its common stock. We currently NKI Consulting Copies of Cyanotech’s news releases and or paid cash dividends on its common stock. We currently beverages, such as teas, fruit juices or carbonated beverages, Gerry Cysewski financial statements are available at our intend to retain all of our earnings for use in the business beverages, such as teas, fruit juices or carbonated beverages, Gerry Cysewski financial statements are available at our intend to retain all of our earnings for use in the business as well as incorporated into powder mixes, due to its neutral Chief Executive Officer Walter B. Menzel 1,2 website: http://www.cyanotech.com and do not anticipate paying any cash dividends on com- as well as incorporated into powder mixes, due to its neutral Chief Executive Officer Walter B. Menzel 1,2 website: http://www.cyanotech.com and do not anticipate paying any cash dividends on com- flavor profile. During the fourth quarter, we launched new President WM Group mon stock in the foreseeable future. President WM Group mon stock in the foreseeable future. flavor profile. During the fourth quarter, we launched new Notice of Annual Meeting Notice of Annual Meeting David M. Mulder 1 The 2021 Annual Meeting of Stockholders Cyanotech Corporation’s annual report to the Securities David M. Mulder 1 The 2021 Annual Meeting of Stockholders Cyanotech Corporation’s annual report to the Securities Owner will be held on Thursday, August 26, 2021, and Exchange Commission on Form 10-K, including Owner will be held on Thursday, August 26, 2021, and Exchange Commission on Form 10-K, including CFO Pinch Hitters, Inc. at 3:00P.M. Hawaii Standard Time at the financial statements and financial statement schedules, CFO Pinch Hitters, Inc. at 3:00P.M. Hawaii Standard Time at the financial statements and financial statement schedules, Cyanotech Innovation Center 73-4185 for the most recent fiscal year accompany these proxy Cyanotech Innovation Center 73-4185 for the most recent fiscal year accompany these proxy David L.
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