0001005286-26-000020
SEC filingRevenue and gross profit declined due to lower HA manufacturing volume, though the company significantly reduced its operating loss and generated positive free cash flow. Management expects current resources to fund operations for at least the next twelve months.
Revenue for the first quarter of fiscal 2026 was $23.2 million, a decrease of 6.1% compared to $24.7 million in the prior year period. The decline was primarily driven by decreased sales volume in the HA manufacturing segment. This reduction in volume also impacted manufacturing absorption, contributing to the overall revenue contraction.
Operating loss narrowed significantly by 59.7% to -$4.7 million, compared to -$11.6 million in the first quarter of fiscal 2025. This improvement reflects the operational changes implemented by the company, despite the revenue headwinds. Management noted that SG&A expenses include salaries and related costs for administrative, public company, and business development functions, as well as legal and consulting fees.