JUPITER, Fla., March 10, 2011 /PRNewswire/ -- Dyadic International, Inc. (OTC Pink: DYAI), a global biotechnology company, today announced financial results for the year ended December 31, 2010. The financial information contained in this press release should be read in conjunction with the financial statements, footnotes and independent auditors' report which have been posted on the OTC Markets website at www.otcmarkets.com and on Dyadic's website at www.dyadic.com.
Dyadic's President and Chief Executive Officer, Mark Emalfarb, stated, "In 2010, Dyadic made substantial progress toward the continued growth of our licensing, research and development, and industrial enzyme businesses. We commenced discussions and negotiations with a broad spectrum of potential new partners and continue to work towards successfully concluding these potential collaborations. Our non-exclusive licensees, Codexis and Abengoa Bioenergy, continue to report positive results in using Dyadic's C1 platform technology to reduce the costs involved in the commercialization of cellulosic ethanol and the production of cellulosic sugars for a variety of applications. Dyadic Netherlands has continued to attract funded research projects which provide a fertile testing ground of our technologies for various industry applications and the potential for those projects to evolve into broader partnerships. Our industrial enzyme business grew revenues by nine percent with improved margins as we continue to achieve greater distribution of new and existing products to our global customers. The recent launch of our Fibrezyme® G200 pulp and paper product was developed from an improved variant of our C1 technology which produces purer forms of proteins and enzymes at higher yields demonstrating once again the versatility and robust nature of our C1 technology platform. Lastly, we continued to strengthen our intellectual property portfolio with the recent grants of two additional U.S. patents."
Financial ResultsTotal revenue for the year ended December 31, 2010 decreased to approximately $8.4 million as compared to approximately $21.4 million for the prior year.
Net product related revenue for the year ended December 31, 2010 increased nine percent to approximately $7.4 million as compared to approximately $6.8 million for the year ended December 31, 2009. Gross margins for the year ended December 31, 2010 continued to improve as a result of the restructuring of Dyadic's industrial enzyme business to focus on higher margin products for growing segments of the industry such as animal feed, while streamlining and discontinuing lower margin products.
License fee revenue decreased to approximately $37,250 for the year ended December 31, 2010 as compared to $10.3 million for the prior year. This decrease was due largely to the fact that Dyadic recognized a $10 million upfront license fee from Codexis, Inc. in 2009 pursuant to a non-exclusive license agreement between Codexis and Dyadic and did not consummate any similar license agreements in 2010.
Research and development revenue decreased to approximately $1.0 million for the year ended December 31, 2010 as compared to approximately $4.3 million for the year ended December 31, 2009. This decrease was largely due to the recognition of approximately $3.3 million in research and development revenue in 2009 from Dyadic's non-exclusive licensee, Abengoa Bioenergy.
Net loss for the year ended December 31, 2010 was approximately $5.5 million, or $(0.18) per basic and fully diluted share, as compared to net income of approximately $5.2 million, or $0.17 per basic and $0.16 per fully diluted share, for fiscal 2009.
At December 31, 2010, cash and cash equivalents totaled approximately $4.5 million as compared to approximately $8.4 million at December 31, 2009. This decrease was largely due to the net loss for the period and the resolution of the stockholder class action lawsuit which was partially offset by the private debt placement mentioned below.
At December 31, 2010, total debt was approximately $5.4 million as compared to approximately $1.4 million at December 31, 2009. This increase was due to Dyadic's private placement in 2010 of $4.0 million of convertible subordinated debt.
About DyadicDyadic 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 enzyme and protein products for the bioenergy, industrial enzyme and biopharmaceutical industries. Please visit Dyadic's website at www.dyadic.com.
Dyadic makes financial disclosures through the OTC Disclosure and News Service which offers free information on the OTC Markets website (www.otcmarkets.com) concerning companies traded on the OTC Markets. Investors can access and download Dyadic's financial reports and other announcements that Dyadic makes through the OTC Markets website. Dyadic will also continue providing updates through regular press releases as appropriate.
Cautionary Statement for Forward-Looking StatementsCertain statements contained in this press release are forward-looking statements. These forward-looking statements involve risks and uncertainties 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. Except as required by law, Dyadic expressly disclaims any intent or obligation to update any forward-looking statements.DYADIC INTERNATIONAL, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS Year Ended December 31, 20102009Revenue:Product Related Revenue, Net
6,800,071License Fee Revenue37,25010,300,000Research and Development Revenue1,010,5594,321,258Total Revenue8,437,60221,421,329Cost of Goods Sold6,497,9356,292,411Gross Profit1,939,66715,128,918Expenses:General and Administrative5,157,7554,334,190Sales and Marketing 988,453958,143Research and Development 1,240,5101,211,035Foreign Currency Exchange Losses, Net148,42356,455Total Expenses7,535,1416,559,823Income (Loss) from Operations(5,595,474)8,569,095Other Income (Expense) Interest Income61,573141,811Interest Expense(248,319)(219,892)Loss on Stockholder Litigation-(3,250,000)Gain on Reduction of Accrued Stockholder Litigation410,000-Other(155,712)-Total Other Income (Expense)67,542(3,328,081)Net Income (Loss)
5,241,014Net Income (Loss) per Common Share:Basic
0.16Weighted Average Common Shares Used in Calculating Net Income (Loss) per Share:Basic31,011,13730,121,396Diluted31,011,13733,231,170DYADIC INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS December 31,20102009ASSETSCurrent Assets:Cash and Cash Equivalents
8,419,934Restricted Cash247,082316,129Accounts Receivable, Net1,276,5741,376,034Inventory, Net2,782,4332,820,381Prepaid Expenses and Other Current Assets336,638420,654Total Current Assets9,178,00613,353,132Fixed Assets, Net719,161839,639Intangible Assets, Net310,978148,167Other Assets16,93016,930$
14,357,868LIABILITIES AND STOCKHOLDERS' EQUITYCurrent Liabilities:Accounts Payable
1,949,038Accrued Expenses417,996713,163Accrued Stockholder Litigation-3,250,000Accrued Interest Payable146,23059,838Note Payable to Stockholder1,424,9411,424,941Income Taxes Payable168767Total Current Liabilities3,790,4587,397,747Convertible Subordinated Debt4,000,000-7,790,4587,397,747COMMITMENTS AND CONTINGENCIES Stockholders' Equity:Preferred Stock, $.0001 Par Value:Authorized Shares – 5,000,000; None Issued and
Outstanding--Common Stock, $.001 Par Value,Authorized Shares – 100,000,000;
Issued and Outstanding – 31,138,120 and 30,613,995,
Respectively31,13830,614Additional Paid-In Capital77,101,69076,075,899Stock to be Issued-23,887Accumulated Deficit(74,698,211)(69,170,279)Total Stockholders' Equity2,434,6176,960,121$
14,357,868DYADIC INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended December 31, 2010 2009 Operating ActivitiesNet Income (Loss)
5,241,014Adjustments to Reconcile Net Income (Loss) to Net Cash
Provided by (Used In) Operating Activities:Depreciation and Amortization of Fixed Assets309,162294,194Amortization of Intangible and Other Assets18,14214,253Reduction of Allowance for Doubtful Accounts(55,818)(55,550)Reduction of Inventory Reserve(418,406)(842,587)Compensation Expense on Stock Option Grants888,147118,103Stock Issued for Consulting Services63,00031,521Loss on Stockholder Litigation-3,250,000Gain on Reduction of Accrued Stockholder Litigation(410,000)-Changes in Operating Assets and Liabilities:Accounts Receivable155,278183,716Inventory456,3541,797,956Prepaid Expenses and Other Current Assets84,016216,548Other Assets-120,573Accounts Payable(147,915)(729,756)Accrued Expenses(295,167)387,529Accrued Interest Payable 86,392(134,422)Accrued Stockholder Litigation(2,840,000)-Deferred Research and Development Obligation-(3,332,863)Income Taxes Payable(599)(7,892)Net Cash Provided by (Used In) Operating Activities(7,635,346)6,552,337Investing ActivitiesPurchases of Fixed Assets(188,684)(94,376)Patent Costs(180,953)-Restricted Cash 69,04728,227Net Cash (Used In) Investing Activities(300,590)(66,149)Financing ActivitiesRepayment of Note Payable to Stockholder-(1,000,000)Proceeds from Issuance of Convertible Subordinated Debt4,000,000-Proceeds from Stock Warrant Exercises16,64286,654Proceeds from Stock Option Exercises34,63920,550Net Cash (Used In) Provided by Financing Activities4,051,281(892,796)Net Increase (Decrease) in Cash and Cash Equivalents (3,884,655)5,593,392Cash and Cash Equivalents at Beginning of Year8,419,9342,826,542Cash and Cash Equivalents at End of Year
8,419,934Supplemental Cash Flow Information:Cash Paid for Interest
|SOURCE Dyadic International, Inc.|
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