- First Half Revenue Up 30% Year-Over-Year
- Gross Profit Up 50% Year-Over-Year
- Initial Biogas Enzyme Product Launch in Europe
- Receipt of Second and Third BASF Research Milestones
- Reached and Received a Low Seven Figure Settlement, in Favor of the Company, With One Defendant in Connection With Its Ongoing Professional Liability Litigation
JUPITER, Fla., Aug. 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 June 30, 2015.
“Our investment in the expansion of our research & development center over the past year and a half continues to pay off, as our C1 Technology has become more productive and versatile as further validated by the receipt of $800,000 in milestone payments from BASF in the first half of this year,” said Mark Emalfarb, chief executive officer of Dyadic. “Our C1 White Strain 2.0 is now two times more productive than it was when we first licensed the technology to BASF two years ago, and our CMAX biofuel strains are 40% more productive than the previous generation. We have now achieved very high levels of protein expression, 100 grams per liter, which has been verified by third parties, using both our C1 High Cellulase and C1 Low Cellulase (White Strain 2.0) strains. What is even more remarkable is that the White Strain 2.0 has shown to be able to produce an enzyme from a heterologous gene with approximately 80% purity or 80 g/l.”
Mr. Emalfarb commented further that, “Our C1 Technology Platform is recognized by the biotechnology industry as a leading expression system which is being used by ourselves, our licensees and our collaborators to turn genes into products to help feed, fuel and heal humankind. We anticipate that many of the application trials we have ongoing in animal feed, baking, brewery, biogas and other industries, along with the expected continued improvements in our science, should help us to realize our business objectives in 2016 and beyond.”
Business Highlights & Second Quarter and Six Months Ended June 30, 2015 Financial Results:
At June 30, 2015, cash and cash equivalents were approximately $5.0 million compared to $2.5 million at December 31, 2014.
On July 31, 2015, the Company reached a settlement with one of the three remaining defendant law firms in its ongoing professional liability litigation. On August 12, 2015 the Company received full payment of this low seven figure settlement, which is net of fees and expenses. The settlement amount will be reported in the Company’s consolidated statement of operations, in other income, for the quarter ending September 30, 2015.
Net loss for the three month period ended June 30, 2015 was $0.4 million, or ($0.01) per basic and diluted share, compared to a net loss of $1.7 million, or ($0.05) per basic and diluted share, for the same period a year ago. Net loss for the six month period ended June 30, 2015 was $0.8 million, or ($0.02) per basic and diluted share, compared to a net loss of $3.2 million, or ($0.10) per basic and diluted share, for the same period a year ago.
Total revenue for the three month period ended June 30, 2015 increased 25% to approximately $3.8 million compared to $3.1 million for the same period a year ago. Net product related revenue for the three month period ended June 30, 2015 increased 12% to $2.8 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, initial sales of enzymes into biogas and food markets. License fee revenue for the three month period ended June 30, 2015 increased to $0.6 million due to the Company achieving a third research milestone with BASF. Research and development revenue for the three month period ended June 30, 2015 decreased 21% to $0.5 million compared to $0.6 million for the same period a year ago. The decrease in revenue for the period was due in part to the mix and timing of research and development project activity in commercial and government programs.
Total revenue for the six month period ended June 30, 2015 increased 30% to approximately $7.9 million compared to $6.0 million for the same period a year ago. Net product related revenue for the six month period ended June 30, 2015 increased 27% to $6.2 million compared to $4.9 million for the same period a year ago. The increase in revenue for the period was driven by growth in the animal nutrition, initial sales of enzymes into the biogas industry, and food markets. License fee revenue for the six month period ended June 30, 2015 increased to $0.8 million due to the Company achieving a second and third research milestones with BASF. Research and development revenue for the six month period ended June 30, 2015 decreased 26% to $0.8 million compared to $1.1 million for the same period a year ago. The decrease in revenue for the period was due to in part to the mix and timing of research and development project activity in commercial and government programs.
Gross profit for the three month period ended June 30, 2015 increased 48% to approximately $1.5 million compared to $1.0 million for the same period a year ago. The $0.5 million increase in gross profit is attributable to (i) product related margin growth of $0.1 million, (ii) cost savings in manufacturing, fermentation and downstream processing of $0.2 million and (iii) the receipt of the BASF research milestone of $0.6 million, (iv) partially offset by lower research & development margins due in part to the mix and timing of commercial and government programs of $0.4 million.
Gross profit for the six month period ended June 30, 2015 increased 50% to approximately $3.2 million compared to $2.2 million for the same period a year ago. The $1.0 million increase in gross profit is attributable to (i) product related margin growth of $0.5 million, (ii) cost savings in manufacturing, fermentation and downstream processing of $0.4 million and (iii) the receipt of the second and third BASF research milestones of $0.8 million, (iv) partially offset by lower research & development margins due in part to the mix and timing of commercial and government programs of $0.7 million.
General and administrative expenses for the three month period ended June 30, 2015 declined 32% to approximately $1.7 million compared to $2.6 million for the same period a year ago. The decrease primarily reflects lower litigation costs of $0.4 million, lower research and development spending of $0.3 million and lower professional service costs, compensation and project related spending of $0.2 million.
General and administrative expenses for the six month period ended June 30, 2015 declined 29% to approximately $3.6 million compared to $5.1 million for the same period a year ago. The decrease primarily reflects lower litigation costs of $1.0 million, lower research and development spending of $0.5 million and lower professional service costs, compensation and project related spending of $0.2 million, partially offset by a net foreign currency exchange loss of $0.2 million reflecting the strengthening US dollar versus the euro.
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, (6) Dyadic’s ability to obtain additional debt or equity financing sources and (7) other many other factors discussed in Dyadic’s publicly available filings, including information set forth under the caption “Risk Factors” in our December 31, 2014 Annual Report filed with OTC Markets on March 27, 2015.
The Company will host an investor conference call on Monday, August 17, 2015 at 5:00 PM EDT, to discuss the Company’s second quarter financial results and provide a business outlook for the remainder of 2015.
In order to participate in the conference call, please dial 888-631-5926 within the U.S., or +913-312-1524 outside the U.S., using the call-in ID: 6931516. 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.
| DYADIC INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||||||
| Selected Consolidated Financial Data | |||||||||||||||||
| (In Thousands, Except Share and Per Share Amounts) | |||||||||||||||||
| Statement of Operations Information (Unaudited): | |||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
| REVENUES: | |||||||||||||||||
| Product Related Revenue, Net | $ | 2,756 | $ | 2,458 | $ | 6,235 | $ | 4,917 | |||||||||
| License Fee Revenue | 600 | - | 800 | - | |||||||||||||
| Research and Development Revenue | 476 | 604 | 831 | 1,130 | |||||||||||||
| TOTAL REVENUES | 3,832 | 3,062 | 7,866 | 6,047 | |||||||||||||
| OPERATING EXPENSES: | |||||||||||||||||
| Cost of goods sold | 2,290 | 2,023 | 4,649 | 3,895 | |||||||||||||
| Research and development | 323 | 648 | 809 | 1,272 | |||||||||||||
| Sell, general and administrative | 1,426 | 1,907 | 2,819 | 3,806 | |||||||||||||
| TOTAL OPERATING EXPENSES | 4,039 | 4,578 | 8,277 | 8,973 | |||||||||||||
| OPERATING LOSS | (207 | ) | (1,516 | ) | (411 | ) | (2,926 | ) | |||||||||
| OTHER INCOME: | |||||||||||||||||
| Interest and other income, net | (216 | ) | (163 | ) | (393 | ) | (322 | ) | |||||||||
| NET LOSS | $ | (423 | ) | $ | (1,679 | ) | $ | (804 | ) | $ | (3,248 | ) | |||||
| NET LOSS PER COMMON SHARE | |||||||||||||||||
| Basic and diluted net loss per common share | $ | (0.01 | ) | $ | (0.05 | ) | $ | (0.02 | ) | $ | (0.10 | ) | |||||
| SHARES USED IN COMPUTING NET LOSS | |||||||||||||||||
| PER COMMON SHARE | |||||||||||||||||
| Basic and diluted | 34,207,808 | 34,043,745 | 34,202,488 | 34,036,295 | |||||||||||||
| Balance Sheet Information: | |||||||||||||||||
| June 30, 2015 | December 31, 2014* | ||||||||||||||||
| (unaudited) | |||||||||||||||||
| Cash, cash equivalents | $ | 4,990 | $ | 2,495 | |||||||||||||
| Inventory | $ | 3,362 | $ | 3,607 | |||||||||||||
| Total Assets | $ | 11,201 | $ | 8,535 | |||||||||||||
| Accumulated deficit | $ | (85,304 | ) | $ | (84,500 | ) | |||||||||||
| Stockholders' deficit | $ | (2,705 | ) | $ | (2,265 | ) | |||||||||||
| * Condensed from audited financial statements | |||||||||||||||||
Contact: Dyadic International, Inc. Thomas L. Dubinski Chief Financial Officer Phone: 561-743-8333 Email: tdubinski@dyadic.com