JUPITER, Fla., May 5, 2011 /PRNewswire/ -- Dyadic International, Inc. ("Dyadic") (OTC Pink: DYAI), a global biotechnology company focused on the discovery, development, manufacture and sale of enzyme and protein products for the bioenergy, industrial enzyme and biopharmaceutical industries, today announced financial results for the quarter ended March 31, 2011. 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 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, "During the first quarter, Dyadic achieved strong growth in research revenue which continues to serve as the proving ground for future licensing and other third party collaborations. We also experienced improving margins in our enzyme business and launched two new products for the pulp & paper and biofuels markets which are currently being sampled and undergoing trials by new and existing customers. Finally, we added to the value and protection of our products and technologies with the issuance of several new U.S. patents."
First Quarter Highlights and Recent Events
Financial ResultsTotal revenue for the three months ended March 31, 2011 increased approximately 15% to approximately $2.3 million, as compared to approximately $2.0 million for the three months ended March 31, 2010. The increase was primarily attributable to research revenue of approximately $491,000 for the three months ended March 31, 2011, as compared to approximately $88,000 for the same period in the prior year, reflecting Dyadic's continued commitment to increasing its revenue-generating research and development projects in addition to internally funded projects.
Gross profit for the first quarter of 2011 increased approximately 95% to approximately $768,000 from approximately $394,000 in the first quarter of 2010. The increase was due mainly to higher gross margins on product sales, increased research and development activity which generally has higher contribution margins, and further cost controls and operational efficiencies.
General and administrative expenses for the three months ended March 31, 2011 increased approximately 24% to approximately $1.7 million, as compared to approximately $1.4 million for the same period last year due primarily to increased litigation costs.
Net loss for the quarter ended March 31, 2011 was approximately $1.5 million, or $(0.05) per basic and diluted share, as compared to a net loss of approximately $1.1 million, or $(0.04) per basic and diluted share for the quarter ended March 31, 2010. In 2010, Dyadic recorded a gain on reduction of accrued stockholder litigation of $410,000, which accounted for the majority of the difference.
At March 31, 2011, cash and cash equivalents were approximately $3.1 million and working capital was approximately $4.2 million.
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.
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 SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSThree Months Ended March 31,20112010Revenue: (Unaudited) (Unaudited) Product Related Revenue, Net
1,879,145License Fee Revenue-32,000Research and Development Revenue491,30988,235Total Revenue2,296,5171,999,380Cost of Goods Sold1,528,2271,605,324Gross Profit768,290394,055Expenses:General and Administrative1,684,6901,359,667Sales and Marketing 267,734226,733Research and Development 304,003286,042Foreign Currency Exchange Losses (Gains), Net(94,034)33,294Total Expenses2,162,3931,905,736(Loss) from Operations(1,394,103)(1,511,681)Other Income (Expense):Interest Income4,19121,270Interest Expense(113,006)(33,379)Gain on Reduction of Accrued Stockholder Litigation-410,000Total Other Income (Expense)(108,815)397,891Net (Loss)
(1,113,789)Net (Loss) per Common ShareBasic
(0.04)Weighted Average Common Shares Used in Calculating Net (Loss) Per Share:Basic31,150,62030,832,621Diluted31,150,62030,832,621DYADIC INTERNATIONAL, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETSMarch 31, 2011December 31, 2010ASSETS(Unaudited)Current Assets:Cash and Cash Equivalents$
4,535,279Restricted Cash263,934247,082Accounts Receivable, Net1,517,1571,276,574Inventory, Net2,831,1892,782,433Prepaid Expenses and Other Current Assets447,490336,638Total Current Assets8,180,9599,178,006Fixed Assets, Net648,631719,161Intangible Assets, Net354,609310,978Other Assets16,92916,930$
10,225,075LIABILITIES AND STOCKHOLDERS' EQUITYCurrent Liabilities:Accounts Payable$
1,801,123Accrued Expenses511,010417,996Accrued Interest Payable 112,283146,230Note Payable to Stockholder1,424,9411,424,941Income Taxes Payable168168Total Current Liabilities3,974,2293,790,458Convertible Subordinated Debt4,000,0004,000,0007,974,2297,790,458COMMITMENTS AND CONTINGENCIESStockholders’ Equity:Preferred Stock, $.0001 Par Value:Authorized Shares – 5,000,000; None Issued and Outstanding--Common stock, $.001 par value,Authorized Shares – 100,000,000; Issued and Outstanding – 31,163,120 and 31,138,120, Respectively31,16331,138Additional Paid-in Capital77,396,86577,101,690Accumulated Deficit(76,201,129)(74,698,211)1,226,8992,434,617$
10,225,075DYADIC INTERNATIONALCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Three Months Ended March 31, 2011 2010 (Unaudited) (Unaudited) Operating ActivitiesNet (Loss)
(1,113,790)Adjustments to Reconcile Net (Loss) to Net Cash (Used in) Operating Activities:Depreciation and Amortization of Fixed Assets70,53271,712Amortization of Intangible and Other Assets7,4903,515Provision for Doubtful Accounts11,839-Recovery of Inventory Reserve(75,389)(97,713)Compensation Expense on Stock Option Grants291,450196,102Stock Issued for Financial Services-63,000Gain on Reduction of Accrued Stockholder Litigation-(410,000)Changes in Operating Assets and Liabilities:Accounts Receivable(252,422)5,049Inventory26,633450,985Prepaid Expenses and Other Current Assets(110,852)34,504Other Assets-(12,588)Accounts Payable124,70447,084Accrued Expenses93,014(101,563)Accrued Interest Payable(33,947)(26,459)Deferred Research and Development Obligation-90,614Income Taxes Payable-(767)Net Cash (Used In) Operating Activities(1,349,866)(800,315)Investing ActivitiesPurchases of Fixed Assets-(104,622)Cost of Patents(51,122)-Restricted Cash(16,852)(1,429)Net Cash (Used In) Investing Activities(67,974)(106,051)Financing ActivitiesProceeds from Stock Option Exercises3,75015,093Proceeds from Stock Warrant Exercises-16,876Net Cash Provided by Financing Activities3,75031,969Net (Decrease) in Cash and Cash Equivalents(1,414,090)(874,397)Cash and Cash Equivalents at Beginning of Period4,535,2798,419,934Cash and Cash Equivalents at End of Period
7,545,537Supplemental Cash Flow Information:Cash Paid for Interest
|SOURCE Dyadic International, Inc.|
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