0001493152-26-023046
SEC filingRevenue declined 18.4% to $2.6M and net loss widened 95.2% to $1.8M, driven by planned maintenance downtime and unfavorable product mix.
Revenue for the first quarter of fiscal 2026 was $2.6 million, a decrease of 18.4% compared to $3.2 million in the same period last year. The decline was primarily due to lower production volumes in January and February resulting from planned facility maintenance, as well as the timing of a major customer order that shifted to the second quarter. Despite the quarterly decline, management noted that March output reached a record high, indicating underlying demand remains intact.
Net cash used in operating activities was $2.1 million, compared to $1.9 million in the prior year, reflecting the wider net loss and changes in working capital. Capital expenditures increased to $515.4 thousand from $377.8 thousand, primarily for investment in new production capacity for allergen-free cheese products. Free cash flow was negative $2.6 million. Management noted that the decrease in working capital was driven by increased inventory levels for anticipated second quarter deliveries, continued investment in the Peru facility, and the net loss.
Management's outlook emphasizes revenue growth, production scale, cost management, and working capital efficiency as key to improving liquidity. The company is investing in new production capacity for allergen-free cheese products, which could support future revenue and margin expansion. However, near-term risks include continued operating losses, negative cash flow, and reliance on external capital. The shift of a major order to Q2 provides a potential catalyst for the next quarter, but sustained improvement depends on achieving higher facility utilization and a more favorable sales mix.