On June 30, 2023, Cyanotech Corporation and Skywords Family Foundation Inc. executed a letter of intent (LOI) to commence drafting and negotiating a definitive Second Amendment (the “Second Amendment”) to the Amended and Restated Promissory Note, dated as of April 12, 2021, as amended on December 14, 2022 (the Note), pursuant to which the revolving amount that the Company may borrow from time to time under the Note would increase from $1,000,000 to $2,000,000, with all other terms of the Note remaining the same. As of the date of the LOI, the outstanding principal balance on the Note was $1,000,000, and the balance on the revolving amount borrowed was $750,000. Skywords is controlled by Michael Davis, the Company’s Chairman of the Board of Directors and stockholder.

Entry into the Second Amendment is subject to the completion of definitive documentation, the consent of First Foundation Bank, approval by the U.S. Department of Agriculture, and the other terms and conditions specified in the LOI.