Navigation Links
Dyadic International Reports 2010 Second Quarter Financial Results
Date:8/13/2010

JUPITER, Fla., Aug. 13 /PRNewswire-FirstCall/ -- Dyadic International, Inc. ("Dyadic") (Pink Sheets: www.pinksheets.com and on Dyadic's website at www.dyadic.com.

(Logo: http://www.newscom.com/cgi-bin/prnh/20091214/DYADICLOGO)

(Logo: http://photos.prnewswire.com/prnh/20091214/DYADICLOGO)

Dyadic's President and Chief Executive Officer, Mark Emalfarb, stated, "During the second quarter, we made significant progress in positioning Dyadic for future long-term growth by continuing to enhance our C1 technology and hiring key personnel and advisors to unlock the value of that technology primarily in the areas of biofuels and chemicals. We also laid the foundation to apply our C1 technology to the development and commercialization of biopharmaceuticals. All of this is now being pursued without the overhanging risk, cost and distraction of protracted stockholder litigation which we have put behind us."

Recent Company Highlights

In 2010, Dyadic has made significant progress in the following areas:

General

  • Achieved final resolution of the stockholder class action lawsuit.

Research & Development

  • Continued to improve the efficiency and performance of our enzymes for use in creating new industrial enzyme products and enhancing our current product offerings in the areas of animal feed, pulp and paper, starch and alcohol, food and brewing, textiles and alternative fuels.
  • Continued to enhance our C1 technology in collaboration with Scripps Florida, a division of the Scripps Research Institute, and Dyadic Netherlands, for greater applicability in producing higher enzyme yields at lower cost for the benefit of our licensing and research partners.
  • Initiated several provisional patent applications on genes and the enzymes they encode which resulted from ongoing research programs.
  • Dedicated a greater portion of Dyadic's research and development capabilities to revenue generating collaborations including the use of our C1 technology for expressing proteins and enzymes in higher quantities from the genes provided by third parties.

Biofuels

  • Engaged the Abraham Group LLC and former U.S. Energy Secretary, Spencer Abraham, as a strategic advisor to implement an international initiative designed to identify potential licensees and strategic partners for Dyadic among major international companies who have demonstrated strong interest in alternative energy and to assist in consummating those transactions.
  • Initiated and continued ongoing discussions with several major companies for the potential license of Dyadic's C1 technology for the development and commercialization of biofuels and biochemicals.

Biopharmaceuticals

  • Entered into a term sheet for a potential exclusive outlicense of C1 technology for biopharmaceutical applications to EnGen Bio, Inc.
  • Continued discussions with numerous companies and investors regarding the potential funding of EnGen Bio as well as ongoing negotiations with a third party to conduct proof-of-concept scientific studies to validate the C1 technology's ability to meet certain protein expression levels as a condition of such funding.

Industrial Enzymes

  • Improved product margins from 20% to 33% for the year to date.
  • Continued discussions and negotiations with several companies for the potential license of Dyadic's C1 technology for animal feed and food applications.
  • Strengthened Dyadic's leadership team through the hiring of a Vice President Sales & Marketing.
  • Introduced and launched two new enzymes for the textiles market.
  • Increased production capacity.

Financial Results

Total revenue for the second quarter ended June 30, 2010 decreased to approximately $2.2 million compared to approximately $11.9 million for the second quarter ended June 30, 2009. Total revenue for the six months ended June 30, 2010 decreased to approximately $4.2 million compared to approximately $16.9 million for the six months ended June 30, 2009. The decrease in total revenue for the three month period ended June 30, 2010 as compared to the three month period ended June 30, 2009 was due to a decrease in licensing revenue. The decrease in total revenue for the six month period ended June 30, 2010 as compared to the six month period ended June 30, 2009 was due to a decrease in research and development revenue and licensing revenue as described below.

Net product related revenue for the second quarter remained essentially flat at approximately $1.7 million. Net product related revenue for the six months ended June 30, 2010 increased to approximately $3.6 million from approximately $3.2 million for the same period a year ago.

Research and development revenue for the second quarter ended June 30, 2010 increased to approximately $465,000 compared to approximately $396,000 for the second quarter ended June 30, 2009. Research and development revenue for the six months ended June 30, 2010 decreased to approximately $554,000 compared to approximately $3.9 million for the six months ended June 30, 2009. The decrease in research and development revenue for the six months ended June 30, 2010 compared to the six months ended June 30, 2009 was due to research and development revenue recognized in the first quarter of 2009 of $3.3 million received from Abengoa Bioenergy R&D, Inc. pursuant to a securities purchase agreement between Dyadic and Abengoa.

There was no license fee revenue for the second quarter ended June 30, 2010 compared to license fee revenue of approximately $9.8 million for the second quarter ended June 30, 2009. License fee revenue for the six months ended June 30, 2010 decreased to approximately $32,000 compared to approximately $9.8 million for the six months ended June 30, 2009. The decrease in license fee revenue for the three and six month periods ended June 30, 2010 compared to the three and six month periods ended June 30, 2009 was due to licensee fee revenue recognized in the second quarter of 2009 of approximately $9.8 million related to license fees received from Codexis, Inc. pursuant to the non-exclusive license agreement between Codexis and Dyadic.

Gross margins for net product related revenue, exclusive of shipping and other costs, increased to 33% for the six months ended June 30, 2010 compared to 20% for the six months ended June 30, 2009 as a result of the continued focus on more profitable product lines and improvements to inventory management and overall operating efficiencies.

Net loss for the second quarter ended June 30, 2010 was approximately $1.4 million, or $(0.05) per basic and diluted share, compared to net income of approximately $8.6 million, or $0.29 per basic and $0.26 per diluted share for the second quarter ended June 30, 2009. Net loss for the six months ended June 30, 2010 was approximately $2.5 million, or $(0.08) per basic and diluted share, respectively, compared to net income of approximately $10.9 million, or $0.36 per basic and $0.33 per diluted share, for the six months ended June 30, 2009.

At June 30, 2010, cash and cash equivalents were approximately $4.0 million compared to approximately $8.4 million at December 31, 2009. A significant portion of the decrease in cash and cash equivalents since the end of last year was due to costs incurred and payments by Dyadic to resolve the stockholder class action lawsuit.

Conference Call

A conference call to discuss Dyadic's 2010 second quarter financial results is scheduled for 11:00 a.m. Eastern Time on Friday, August 13, 2010.  The conference call may be accessed by dialing 888-724-9504 (domestic) or 913-312-0951 (international) five to ten minutes prior to start time and providing the passcode 4931751.

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 products and solutions for the bioenergy, industrial enzyme and biopharmaceutical industries. Please visit Dyadic's website at www.dyadic.com.

Dyadic makes financial disclosures through the Pink OTC Markets Disclosure and News Service which offers free information on the Pink Sheets website (www.pinksheets.com) concerning issuers listed on the Pink Sheets over-the-counter market. Investors can access and download Dyadic's financial reports and other announcements that Dyadic makes through the Pink Sheets website. Dyadic will also continue providing updates through regular press releases as appropriate.

Cautionary Statement for Forward-Looking Statements

Certain 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 SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


















Six Months Ended June 30,


Three Months Ended June 30,


2010


2009


2010


2009


(Unaudited)


(Unaudited)


(Unaudited)


(Unaudited)

Revenue:








         Product Related Revenue, Net

$  3,618,937


$  3,210,964


$  1,739,792


$  1,754,765

License Fee Revenue

32,000


9,750,000


-


9,750,000

Research and Development Revenue

553,575


3,920,801


465,340


396,388

Total Revenue

4,204,512


16,881,765


2,205,132


11,901,153









Cost of Goods Sold:

3,090,979


2,975,786


1,485,650


1,819,789

         Gross Profit

1,113,533


13,905,979


719,482


10,081,364









Expenses:








General and Administrative

2,634,142


1,845,313


1,274,476


1,022,056

Sales and Marketing

472,596


455,457


245,863


184,440

Research and Development

648,634


624,502


362,595


241,300

Foreign Currency Exchange Losses, Net

260,543


50,252


227,246


18,770

Total Expenses

4,015,915


2,975,524


2,110,180


1,466,566









Income (Loss) from Operations

(2,902,382)


10,930,455


(1,390,698)


8,614,798









Other Income (Expense)








Interest Income

36,012


70,995


14,741


48,116

Interest Expense

(65,066)


(109,866)


(31,687)


(43,316)

Gain on Reduction of Accrued Stockholder Litigation

410,000


-


-


-

Other

243


-


243


(1,198)

Total Other Income (Expense)

381,189


(38,871)


(16,703)


3,602

















Net Income (Loss)

$  (2,521,193)


$  10,891,584


$  (1,407,401)


$  8,618,400









Net Income (Loss) per Common Share








Basic

$  (0.08)


$  0.36


$  (0.05)


$  0.29

Diluted

$  (0.08)


$  0.33


$  (0.05)


$  0.26









Weighted Average Common Shares Used in








 Calculating Net Income (Loss) Per Share:








Basic

30,906,706


30,027,962


30,985,745


30,002,830

Diluted

30,906,706


32,936,567


30,985,745


33,218,934



DYADIC INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS







June 30,


December 31,


2010


2009

ASSETS

(Unaudited)



Current Assets:




Cash and Cash Equivalents

$  3,964,486


$  8,419,934

Restricted Cash

270,540


316,129

Accounts Receivable, Net

1,626,781


1,376,034

Inventory, Net

2,754,425


2,820,381

Prepaid Expenses and Other Current Assets

302,867


420,654

    Total Current Assets

8,919,099


13,353,132





Fixed Assets, Net

845,858


839,639

Intangible Assets, Net

147,383


148,167

Other Assets

16,930


16,930


$  9,929,270


$  14,357,868





LIABILITIES AND STOCKHOLDERS' EQUITY




Current Liabilities:




Accounts Payable

$  1,882,804


$  1,949,038

Accrued Expenses

279,133


713,163

Accrued Stockholder Litigation

1,340,000


3,250,000

Accrued Interest Payable to Stockholder

33,750


59,838

Note Payable to Stockholder

1,424,941


1,424,941

Income Taxes Payable

2,005


767

    Total Current Liabilities

4,962,633


7,397,747

COMMITMENTS 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 – 31,006,995 and 30,613,995, Respectively

31,007


30,614

Additional Paid-In Capital

76,617,987


76,075,899

Stock to Be Issued

9,117


23,887

Accumulated Deficit

(71,691,474)


(69,170,279)


4,966,637


6,960,121


$  9,929,270


$  14,357,868



DYADIC INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS










Six Months Ended June 30,



2010



2009



(Unaudited)



(Unaudited)

Operating Activities






Net Income (Loss)

$

(2,521,193)


$

10,891,584

Adjustments to Reconcile Net Income (Loss) to Net Cash
              Provided By (Used In) Operating Activities:






Depreciation and Amortization of Fixed Assets


151,096



87,682

Amortization of Intangible and Other Assets


7,068



7,067

Reduction of Allowance for Doubtful Accounts


(132,030)



-

Reduction of Inventory Reserve


(333,795)



(490,414)

Compensation Expense on Stock Option Grants


425,032



58,025

Stock Issued for Financial Services


63,000



-

Stock Issued for Rent


-



5,000

Gain on Reduction of Accrued Stockholder Litigation


(410,000)



-

Changes in Operating Assets and Liabilities:






Accounts Receivable


(118,717)



(9,247)

Inventory


399,751



1,125,490

Prepaid Expenses and Other Current Assets


117,787



22,105

Other Assets


-



27,604

Accounts Payable


(66,234)



(319,621)

Accrued Expenses


(434,030)



(74,011)

Accrued Interest Payable to Stockholder


(26,088)



(167,154)

Accrued Stockholder Litigation


(1,500,000)



-

Deferred Research and Development Obligations


-



(3,082,863)

Income Taxes Payable


1,238



(5,584)

Net Cash Provided By (Used In) Operating Activities


(4,377,115)



8,075,663







Investing Activities






Purchases of Fixed Assets


(157,315)



(12,402)

Patent Costs


(6,284)



-

Restricted Cash


45,589



1,197

Net Cash (Used In) Investing Activities


(118,010)



(11,205)







Financing Activities






Repayment of Note Payable to Stockholder


-



(1,000,000)

Proceeds from Stock Warrant Exercises


16,876



-

Proceeds from Stock Option Exercises


22,801



-

Net Cash Provided By (Used In) Financing Activities


39,677



(1,000,000)







Net Increase (Decrease) in Cash and Cash Equivalents


(4,455,448)



7,064,458

Cash and Cash Equivalents at Beginning of Period


8,419,934



2,826,542

Cash and Cash Equivalents at End of Period

$

3,964,486


$

9,891,000







Supplemental Cash Flow Information:






Cash Paid for Interest

$

91,154


$

277,020




'/>"/>
SOURCE Dyadic International, Inc.
Copyright©2010 PR Newswire.
All rights reserved


Related medicine technology :

1. Microfluidics International Corporation to Report Second Quarter 2010 Financial Results on August 10, 2010
2. Chindex International to Report First Quarter 2011 Financial Results
3. Robert F. Walters Appointed Chairman of the Board of Directors of ORBIS International
4. Airline Passenger Experience Association Teams Up With ORBIS International in Their Fight Against Avoidable Blindness
5. Update: International HIV/AIDS Partnership Wins Two Awards for Supply Chain Excellence
6. New Edition of Guidelines for Involving Communities in HIV Prevention Research Released at International AIDS Conference
7. SRI International and Stanford University School of Medicines MISTRAL Collaborative and the Institute for Pediatric Innovation Awarded FDA Grant to Accelerate Commercialization of Pediatric Medical Devices
8. Encorium Group, Inc. Acquires Progenitor International Research, a Vaccine Focused Emerging Market CRO
9. Noscira Presents Results of Phase IIa Clinical Trial with Nypta(R) (Tideglusib) on Alzheimers Disease at International Conference on Alzheimers Disease (ICAD)
10. PRA International Hosts Audio Conference on Site and Patient Recruitment
11. Viveve-Sponsored Research Accepted for Presentation at Two Prestigious International Conferences
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/26/2016)... -- VMS Rehab Systems, Inc. ( www.vmsrehabsystemsinc.com ) reported today ... to build a strong and stable market for trading ... the OTC Markets-pink current trading platform. Explains ... seeing an anomaly in market trading activities that may ... Company, but shareholders and market players as well. I ...
(Date:6/24/2016)... Mass. , June 24, 2016   ... Spaulding Rehabilitation Network,s Dean Center for Tick ... Physical Medicine and Rehabilitation, MIT Hacking Medicine, University ... for Innovation, today announced the five finalists of ... for Lyme disease.  More than 100 scientists, clinicians, ...
(Date:6/24/2016)... SAN CLEMENTE, Calif. , June 24, 2016 /PRNewswire/ ... pulmonary function testing company, is now able to perform sophisticated lung ... ndd Medical Technologies , Inc. Patients are ... labs.  Thanks to ndd,s EasyOne PRO ® , ARL patients like ... any needed testing done in the comfort of her own home. ...
Breaking Medicine Technology:
(Date:6/25/2016)... ... June 25, 2016 , ... "With 30 hand-drawn hand gesture animations, FCPX users ... - CEO of Pixel Film Studios. , ProHand Cartoon’s package transforms over 1,300 ... Pro X . Simply select a ProHand generator and drag it above media or ...
(Date:6/25/2016)... Montreal, Canada (PRWEB) , ... June 25, 2016 , ... ... the pursuit of success. In terms of the latter, setting the bar too high ... low, risk more than just slow progress toward their goal. , Research from ...
(Date:6/24/2016)... Texas (PRWEB) , ... June 24, 2016 , ... ... International Conference and Scientific Sessions in Dallas that it will receive two significant ... of the grants came as PHA marked its 25th anniversary by recognizing patients, ...
(Date:6/24/2016)... Plano, TX (PRWEB) , ... June 24, 2016 , ... ... taking part in Genome magazine’s Code Talker Award, an essay contest in which patients ... for an award to be presented at the 2016 National Society of Genetic Counselors ...
(Date:6/24/2016)... ... June 24, 2016 , ... National recruitment firm ... sciences executive with extensive sequencing and genomics experience, as Vice President of North American ... Hill will be responsible for leading the sales team in the commercialization of the ...
Breaking Medicine News(10 mins):