- Total Revenue up 35% Year-over-Year
- Gross Profit up 70% Year-over-Year
- Achieved Additional C1 Research & Development Milestones from BASF
- Four EU Funded Research Programs Approved for Start in 2015
- Added New Board Member and Appointed New Chairman of Board
- Raised $2 million in Private Placement
JUPITER, Fla., May 14, 2015 (GLOBE NEWSWIRE) -- Dyadic International, Inc. (“Dyadic”) (OTCQX:DYAI), a global biotechnology company focused on the discovery, development, manufacture and sale of enzymes and other proteins for the bioenergy, bio-based chemicals, biopharmaceutical, food and feed industries, announced today financial results for the quarter ended March 31, 2015.
At March 31, 2015, cash and cash equivalents were approximately $3.7 million compared to $2.5 million at December 31, 2014.
Subsequent to the end of the quarter, the Company received $800,000 for achieving two additional research and development milestones in its funded research program from BASF, a Dyadic C1 Technology licensee. The Company recognized $200,000 of the revenue for achievement of milestone 2 in March 2015 and will recognize $600,000 in April 2015 for the achievement of milestone 3 of the contract.
The Company also subsequently received a payment of €439,819 (approximately US $492,000) as part of a research and development grant for 2G BIOPIC, a project funded by the European Commission Horizon 2020 to develop advanced biofuels. The project is being coordinated by Compagnie Industrielle de la Matière Végétale ("CIMV", a non-related entity). The agreement provides that the company will be paid a total of approximately €1.0 million over the three year term of the project. The purpose of the 2G BIOPIC project is to demonstrate the performance, reliability and sustainability, of the production processes for bioethanol extracted from agricultural residues and wood.
Net loss for the three month period ended March 31, 2015 was $0.4 million, or ($0.1) per basic and diluted share, compared to a net loss of $1.6 million, or ($0.05) per basic and diluted share, for the same period a year ago.
Total revenue for the three month period ended March 31, 2015 increased 35% to approximately $4.0 million compared to $3.0 million for the same period a year ago. Net product related revenue for the three month period ended March 31, 2015 increased 41% to approximately $3.5 million compared to $2.5 million for the same period a year ago. The increase in revenue for the period was driven by growth in the animal nutrition, biogas and food markets. License fee revenue for the three month period ended March 31, 2015 increased to $0.2 million due to the Company achieving a second research milestone with BASF. Research and development revenue for the three month period ended March 31, 2015 decreased 32% to approximately $0.4 million compared to $0.5 million for the same period a year ago. The decrease in revenue for the period was due to mix and timing of project activity in commercial and government programs.
Gross profit for the three month period ended March 31, 2015 increased 70% to approximately $1.6 million compared to $0.9 million for the same period a year ago. The $0.7 million increase in gross profit is attributable to (i) product related revenue growth of approximately $0.3 million, (ii) cost improvements in manufacturing, fermentation and down-stream processing of $0.4 million and (iii) the BASF research milestone of $0.2 million, (iv) partially offset by lower research & development margins due to mix and timing of commercial and government programs of $0.2 million.
General and administrative expenses for the three month period ended March 31, 2015 declined 44% to approximately $1.0 million compared to $1.7 million for the same period a year ago. The decrease primarily reflects lower litigation costs of approximately $0.6 million and lower professional service costs, stock based compensation and project related spending of $0.1 million.
Foreign currency exchange, net for the three month period ended March 31, 2015 was a loss of approximately $189,000, compared to a gain of $43,000 in the same period a year ago reflecting the strengthening US dollar versus the euro.
Chief Executive Officer, Mark Emalfarb, stated, “I am extremely pleased that our patented and proprietary C1 technology platform continues to achieve higher levels of enzyme purity, productivity, and performance. This has been validated by our ability to achieve two milestones sooner than anticipated with BASF resulting in the payment of $800,000 in April 2015. Additionally, Dyadic Netherlands now has four EU funded research programs scheduled to start in 2015, with aggregate funding approximating over €2 million to be received principally over the next three years.
“We are seeing a growing level of interest from the industry, as the global scientific and business community learns about the many benefits of working with our next generation ‘C1 White Strain 2.0’. We anticipate that this will lead to additional research and license revenue across expanded markets. Our enzyme business experienced strong revenue growth, improved gross profit and margins during the quarter. Additionally, we are making further progress in executing our business plan, which includes, among other things, plans to profitably grow our business and control costs. As a result, we believe that the Company is on track to meet our objective of attaining profitability in 2016”.
About Dyadic
Dyadic International, Inc. is a global biotechnology company that uses its patented and proprietary technologies to conduct research, development and commercial activities for the discovery, development, manufacture and sale of enzymes and other proteins for the bioenergy, bio-based chemical, biopharmaceutical and industrial enzyme industries. Dyadic utilizes an integrated technology platform based on its patented and proprietary C1 microorganism, which enables the development and large scale manufacture of low cost enzymes and other proteins for diverse market opportunities. The C1 platform technology can also be used to screen for the discovery of novel genes. In addition to the sale of proprietary enzyme products, Dyadic actively pursues licensing arrangements and other commercial opportunities to leverage the value of these technologies by providing its partners and collaborators with the benefits of manufacturing and/or utilizing the enzymes and other proteins which these technologies help produce. Please visit Dyadic’s website at www.dyadic.com. Dyadic trades on the OTCQX tier of the OTC marketplace. Investors can find real-time quotes, market information and financial reports for Dyadic on the OTC marketplace website at www.otcmarkets.com/stock/DYAI/quote.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this press release are forward-looking statements within the meaning of the federal securities laws. These forward-looking statements involve risks, uncertainties and other factors that could cause Dyadic’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Investors are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. Any forward-looking statements speak only as of the date of this press release and, except as required by law, Dyadic expressly disclaims any intent or obligation to update or revise any forward-looking statements to reflect actual results, any changes in expectations or any change in events. Factors that could cause results to differ materially include, but are not limited to: (1) general economic conditions, including the recent conditions in the global markets; (2) Dyadic’s ability to retain and attract employees; (3) competitive pressures and reliance on key customers and collaborators; (4) Dyadic’s research and development efforts, (5) the outcome of the current litigation by Dyadic against its former counsel and (6) other factors discussed in Dyadic’s publicly available filings, including the risk factors included in Dyadic’s 2014 Annual Report filed with the OTC Markets Group on March 27, 2015.
The Company will host an investor conference call on Thursday, May 14, 2015 at 5:00 PM EDT, to discuss the Company’s first quarter financial results and provide a business outlook for the remainder of 2015.
In order to participate in the conference call, please dial 888-220-8449 within the U.S., or +913-312-0956 outside the U.S., using the call-in ID: 7726192. The audio replay of the conference call will be on http://www.dyadic.com within 24 hours and available for a period of 15 days after the call.
| Statements of Operations Information (Unaudited): | |||||||||
| DYADIC INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
| Three Months Ended March 31, | |||||||||
| 2015 | 2014 | ||||||||
| Revenue: | (Unaudited) | (Unaudited) | |||||||
| Product Related Revenue, Net | $ | 3,478,317 | $ | 2,459,160 | |||||
| License Fee Revenue | 200,000 | - | |||||||
| Research and Development Revenue | 355,729 | 525,872 | |||||||
| Total Revenue | 4,034,046 | 2,985,032 | |||||||
| Cost of Goods Sold: | 2,439,609 | 2,045,553 | |||||||
| Gross Profit | 1,594,437 | 939,479 | |||||||
| Expenses: | |||||||||
| General and Administrative | 961,670 | 1,711,670 | |||||||
| Sales and Marketing | 242,525 | 241,421 | |||||||
| Research and Development | 405,153 | 450,633 | |||||||
| Gain on Sale of Fixed Assets | - | (11,600 | ) | ||||||
| Foreign Currency Exchange Losses/(Gains), Net | 188,513 | (42,852 | ) | ||||||
| Total Expenses | 1,797,861 | 2,349,272 | |||||||
| Loss from Operations | (203,424 | ) | (1,409,793 | ) | |||||
| Other Income (Expense) | |||||||||
| Interest Income | 3,399 | 9,650 | |||||||
| Interest Expense | (180,631 | ) | (168,843 | ) | |||||
| Total Other Income (Expense) | (177,232 | ) | (159,193 | ) | |||||
| Net Loss | $ | (380,656 | ) | $ | (1,568,986 | ) | |||
| Net Loss per Common Share | |||||||||
| Basic and Diluted | $ | (0.01 | ) | $ | (0.05 | ) | |||
| Weighted Average Common Shares Used in Calculating Net Loss Per Share: | |||||||||
| Basic and Diluted | 34,194,659 | 34,028,762 | |||||||
| Balance Sheet Information: | ||||||||||||
| March 31, 2015 | December 31, 2014 * | |||||||||||
| (Unaudited) | ||||||||||||
| Cash and Cash Equivalents | $ | 3,657,522 | $ | 2,495,455 | ||||||||
| Total Assets | 10,637,994 | 8,535,353 | ||||||||||
| Note Payable to Stockholder and Convertible Subordinated Debt | 10,135,728 | 8,135,728 | ||||||||||
| Accumulated Deficit | (84,881,070 | ) | (84,500,414 | ) | ||||||||
| Stockholders' Deficit | (2,560,398 | ) | (2,264,762 | ) | ||||||||
| * Condensed from audited financial statements. | ||||||||||||
DYADIC CONTACT: Thomas Dubinski Chief Financial Officer Dyadic International, Inc. Tel: 561-743-8333 E-mail: tdubinski@dyadic.com