JUPITER, Fla., Nov. 8, 2012 /PRNewswire/ -- Dyadic International, Inc. (OTC Pink: 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 and industrial enzyme industries, today announced financial results for the quarter ended September 30, 2012.
Business OutlookDyadic's President and Chief Executive Officer, Mark Emalfarb, stated, "As we continue down the road toward a profitable 2012, recent events have further increased our confidence in Dyadic's near-term growth prospects."
"Dyadic's research team in the Netherlands has experienced a string of successes over the last few months in using Dyadic's patented and proprietary C1 technology to conduct research projects funded by third parties in the key areas of biofuels, animal health and nutrition, food and biopharmaceuticals. In particular, the novel ability of Dyadic's C1 white strain to produce purer cost-efficient enzymes, is proving to be an additional valuable tool in attracting research and licensing partners. Some of these projects are currently in the process of being expanded which will generate additional R&D revenue and further increase the likelihood of increased future license revenue to Dyadic. The greater than two-fold increase in deferred research and development obligation in the third quarter as compared to the previous quarter as listed in our third quarter financial statements represents a growing backlog of research revenue which will be recognized in subsequent quarters as this research is performed. This shows that research and development activities are actually still growing even though the related revenue will not be recognized until future periods."
"Adding to Dyadic's recent research accomplishments for existing partners such as Abengoa Bioenergy, which expanded its non-exclusive license with Dyadic earlier this year, is a strong pipeline of new research and license collaborations. Many of these new opportunities are in the late stage or letter of intent stage of negotiations and are nearing completion, which we expect will generate additional research, product and/or license revenues. Lastly, Dyadic's improving cash position which will continue into next year will help us fund operations and continue to support our growing business."
Third Quarter Highlights
Financial ResultsTotal revenue for the third quarter ended September 30, 2012 decreased 2% to $2.5 million compared to $2.6 million for the quarter ended September 30, 2011. Total revenue for the nine months ended September 30, 2012 increased 64% to $12.9 million compared to $7.9 million for the same period last year. The decrease in total revenue for the third quarter ended September 30, 2012 was due to a decrease in research and development revenue from the same period a year ago. The increase in total revenue for the nine months ended September 30, 2012 was due to increases in all revenue segments.
Net product-related revenue for the third quarter ended September 30, 2012 increased 3% to $2.1 million compared to $2.0 million for the third quarter ended September 30, 2011. Net product-related revenue for the nine months ended September 30, 2012 increased 6% to $5.8 million compared to $5.5 million for the nine months ended September 30, 2011.
Research and development revenue for the third quarter ended September 30, 2012 decreased 20% to $427,000 compared to $536,000 for the third quarter ended September 30, 2011. Research and development revenue for the nine months ended September 30, 2012 increased 18% to $1.6 million compared to $1.3 million for the nine months ended September 30, 2011. The decrease in research and development revenue for the third quarter was due to the timing of the revenue recognition of certain research projects conducted at Dyadic's research and development facility in the Netherlands. The growing backlog of research and development revenue is indicated by the greater than two-fold increase in Deferred Research and Development Obligation to $714,000 as of September 30, 2012 as compared to $309,000 at June 30, 2012.
There was no license fee revenue for the third quarter ended September 30, 2012. License fee revenue for the nine months ended September 30, 2012 increased more than five-fold to $5.5 million compared to $1.0 million for the nine months ended September 30, 2011. The increase in license fee revenue for the nine month period ended September 30, 2012 compared to the same period last year was due to a $5.5 million license fee recognized in the second quarter of 2012 from Dyadic's non-exclusive licensee, Abengoa Bioenergy, for an expansion of its rights under its license agreement with Dyadic.
Gross profit for the third quarter ended September 30, 2012 decreased 22% to $614,000 compared to $784,000 for the third quarter ended September 30, 2011. This decrease was due to lower research and development revenue during the period as indicated above. Gross profit for the nine months ended September 30, 2012 increased 158% to $7.4 million compared to $2.9 million for the same period last year due to increased margins on product revenue and the recognition of license fee income.
Total expenses for the third quarter ended September 30, 2012 decreased 32% to $1.4 million compared to $2.0 million for the third quarter ended September 30, 2011. For the nine months ended September 30, 2011, total expenses decreased 26% to $4.5 million compared to $6.1 million for the nine months ended September 30, 2011. The decrease in both periods was due largely to a reduction in litigation-related costs from the same period a year ago as well as Dyadic's focus on improving cost controls and operational efficiencies.
On August 8, 2012, the Company received $525,000 in settlement of certain of its claims against two defendants in the Company's professional liability lawsuit against its former outside legal counsel which is included in Other Income (Expense) for the three and nine month periods ended September 30, 2012.
Net loss for the third quarter ended September 30, 2012 was $392,000, or $(0.01) per basic and diluted share, compared to a net loss of $1.3 million, or $(0.04) per basic and diluted share for the third quarter ended September 30, 2011. Net income for the nine months ended September 30, 2012 was $2.8 million, or $0.09 per basic and $0.08 per diluted share, compared to a net loss of $3.6 million, or $(0.11) per basic and diluted share, for the nine months ended September 30, 2011.
At September 30, 2012, cash and cash equivalents were $2.9 million compared to $3.7 million at December 31, 2011. After the third quarter ended, Dyadic received $2.0 million of the total license fee of $5.5 million recognized from the expansion of Dyadic's license with Abengoa Bioenergy which was completed in April 2012. The two remaining payments of $1.0 million and $2.5 million are due in January and July 2013, respectively.
The financial information contained in this press release should be read in conjunction with the financial statements and related footnotes which have been posted on the OTC market website at http://www.otcmarkets.com/stock/DYAI/filings and on Dyadic's website at http://dyadic.com/investorinfo/financials/.
Conference CallDyadic's third quarter 2012 financial results conference call is scheduled for 5:00 p.m. Eastern Time on Thursday, November 8, 2012. The conference call may be accessed by dialing 888-221-9518 (from the United States or Canada) or 913-312-0966 (from other countries) five to ten minutes prior to start time and providing the passcode 9107146. A replay of the conference call will be available on the Dyadic website (www.dyadic.com) shortly after the live event.
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 enzymes and other proteins for the bioenergy, bio-based chemicals, biopharmaceutical and industrial enzyme industries.
Dyadic trades on the OTC Pink tier of the OTC market. Investors can find real-time quotes, market information and financial reports for Dyadic on the OTC market website (www.otcmarkets.com/stock/DYAI/quote).
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 SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Nine Months Ended September 30, Three Months Ended September 30, 2012201120122011Revenue: (Unaudited) (Unaudited) (Unaudited) (Unaudited) Product Related Revenue, Net
2,039,528License Fee Revenue5,500,0001,017,000--Research and Development Revenue1,591,3091,349,985426,789535,883Total Revenue12,889,2807,859,0672,519,9142,575,411Cost of Goods Sold:5,535,1105,004,1471,906,0711,790,994Gross Profit7,354,1702,854,920613,843784,417Expenses:General and Administrative3,241,1284,353,282984,2131,340,945Sales and Marketing 561,747807,199202,929270,746Research and Development 671,823910,597207,404288,480Foreign Currency Exchange Loss (Gain), Net21,8666,183(39,713)87,527Total Expenses4,496,5646,077,2611,354,8331,987,698Income (Loss) from Operations2,857,606(3,222,341)(740,990)(1,203,281)Other Income (Expense) Interest Income3,8768,3881,1221,714Interest Expense(524,445)(342,872)(176,726)(116,135)Gain on settlement of litigation525,000-525,000-Total Other Income (Expense)4,431(334,484)349,396(114,421)Income (Loss) Before Provision for Income Taxes2,862,037(3,556,825)(391,594)(1,317,702)Provision for Income Taxes(65,000)---Net Income (Loss)
(1,317,702)Net Income (Loss) per Common ShareBasic
(0.04)Weighted Average Common Shares Used in Calculating Net Income (Loss) Per Share:Basic31,708,06331,317,55331,651,65731,413,614Diluted33,937,59831,317,55331,651,65731,413,614DYADIC INTERNATIONAL, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETSSeptember 30, 2012December 31, 2011ASSETS(unaudited)Current Assets:Cash and Cash Equivalents$
3,691,755Restricted Cash215,753214,376Accounts Receivable, Net1,679,9491,774,773License Fee Receivable5,500,000-Inventory, Net2,929,2623,276,382Prepaid Expenses and Other Current Assets299,399280,812Total Current Assets13,492,3809,238,098Fixed Assets, Net405,339552,221Intangible Assets, Net517,494497,385Other Assets16,17316,173$
10,303,877LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)Current Liabilities:Accounts Payable$
2,065,708Accrued Expenses390,515437,719Accrued Interest Payable175,270173,496Income Taxes Payable65,000-Note Payable to Stockholder-1,424,941Deferred Research and Development Obligation714,181-Total Current Liabilities3,014,2174,101,864Note Payable to Stockholder1,424,941-Convertible Subordinated Debt7,000,0007,000,00011,439,15811,101,864COMMITMENTS AND CONTINGENCIESStockholders' Equity (Deficit):Preferred Stock, $.0001 Par Value:Authorized Shares – 5,000,000; None Issued and Outstanding--Common Stock, $.001 par value,Authorized Shares – 100,000,000; Issued and Outstanding R
31,656,245 and 31,448,745, Respectively31,65731,449Additional Paid-in Capital79,605,30578,608,586Stock to be Issued-3,750Accumulated Deficit(76,644,734)(79,441,772)2,992,228(797,987)$
10,303,877 DYADIC INTERNATIONAL, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Nine Months Ended September 30, 20122011 (Unaudited) (Unaudited) Operating Activities Net Income (Loss)
(3,556,825) Adjustments to Reconcile Net Income (Loss) to Net Cash (Used in) Operating Activities: Depreciation and Amortization of Fixed Assets 156,148193,128 Amortization of Intangible and Other Assets 38,18223,675 Reserve (Recovery) of Doubtful Accounts 65,345(50,011) Reserve (Recovery) of Inventory Reserve 161,000(75,389) Compensation Expense on Stock Option Grants 956,1021,068,374 Changes in Operating Assets and Liabilities: Accounts Receivable 29,478(17,665) License Fee Receivable (5,500,000)- Inventory 186,120155,558 Prepaid Expenses and Other Current Assets (18,585)(10,942) Accounts Payable (396,457)(602,044) Accrued Expenses (47,204)18,902 Accrued Interest Payable 1,774(31,452) Income Taxes Payable 65,000- Deferred Research and Development Obligation 714,181155,648 Net Cash (Used In) Operating Activities (791,879)(2,729,043) Investing Activities Purchases of Fixed Assets (9,266)(80,412) Cost of Patents (58,291)(126,331) Restricted Cash(1,377)(9,546) Net Cash (Used In) Investing Activities (68,934)(216,289) Financing Activities Proceeds from Issuance of Convertible Debt -2,400,000 Proceeds from Warrant Exercises -15,000 Proceeds from Stock Option Exercises 37,07534,806 Net Cash Provided by Financing Activities 37,0752,449,806 Net (Decrease) in Cash and Cash Equivalents (823,738)(495,526) Cash and Cash Equivalents at Beginning of Period 3,691,7554,535,279 Cash and Cash Equivalents at End of Period
4,039,753 Supplemental Cash Flow Information: Cash Paid for Interest
|SOURCE Dyadic International, Inc.|
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