(Source: Business Wire)
Dyadic International, Inc. (Pink Sheets: DYAI) ("Dyadic") today
announced financial results for the first and second quarters of 2009 as
well as for the years ended December 31, 2008 and 2007. 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 Pink Sheets website at www.pinksheets.com
and on Dyadic's website at www.dyadic.com.
Dyadic's Chief Executive Officer, Mark Emalfarb, stated, "Today marks a
significant milestone for Dyadic in becoming current with its financial
reporting and being able to share its recent efforts to build the
long-term viability of the company. We are committed to providing
financial information on a timely basis going forward. As of today,
Dyadic has a current cash position of approximately $9.6 million which
is sufficient to conduct its operations. We are aggressively pursuing a
variety of research and business collaborations to leverage our patented
and proprietary technologies and to grow our industrial enzyme business
including additional technology licensing deals, co-development of
products and processes and enhancing our manufacturing capabilities."
Highlights and Achievements
June 2008
Newly elected Board of Directors re-appointed Dyadic founder, Mark
Emalfarb, as Chief Executive Officer and Chairman of the Board.
Restructured our business to better align Dyadic with market needs by
streamlining operations, reducing inventory and overhead, and shifting
manufacturing from Poland to Mexico for greater flexibility.
September 2008
Promoted Brian E. Murdoch to Director of Sales & Marketing. Brian has
been with Dyadic for five years and has ten years of domestic and
international enzyme sales and marketing experience.
Promoted Richard H. Jundzil to Director of Development & Quality. Rich
has been with Dyadic for more than six years and has over 16 years of
quality and operations experience within the biotechnology industry
including, most recently, at Genzyme Corporation.
November 2008
Entered into a non-exclusive license agreement with Codexis, Inc.
("Codexis") for the right to use Dyadic's patented and proprietary C1
fungus (the "C1 Platform Technology") for the development and
large-scale production of enzymes in certain fields including biofuels
and chemical and pharmaceutical intermediate production. Dyadic
received an upfront payment of $10 million from Codexis in the first
half of 2009 and is entitled to receive other undisclosed remuneration
upon commercialization of these enzymes.
January 2009
Reduced our debt from approximately $2.4 million to approximately $1.4
million.
Strengthened our executive management team by hiring Adam J. Morgan as
our Vice President General Counsel & Business Development who brings
significant legal, business development, licensing and operational
experience to Dyadic.
March -- April 2009
Filed a lawsuit against Dyadic's former auditors and financial and
transactional consultants and advisors, its former outside corporate
and securities counsel as well as the law firm and its partners
previously retained to conduct a corporate internal investigation, for
professional negligence/malpractice, breach of fiduciary duty,
constructive fraud and civil conspiracy.
May 2009
Settled pending litigation with Abengoa Bioenergy New Technologies,
Inc. ("Abengoa").
Entered into a non-exclusive license agreement with Abengoa, one of
the world's largest ethanol producers and alternative energy
companies, for the right to use Dyadic's patent rights and know-how
relating to the C1 Platform Technology, for the development and
large-scale production of enzymes for use in manufacturing biofuels
(including cellulosic ethanol and butanol), power and/or chemicals.
Dyadic is entitled to receive facility fees and royalties upon
commercialization of these enzymes.
June 2009
Settled an informal inquiry with the U.S. Securities and Exchange
Commission.
Appointed Goldstein Lewin & Co. ("Goldstein Lewin") as Dyadic's new
independent auditors.
October 2009
Received acknowledgement (GRAS Notice No. GRN 000292) from the U.S.
Food and Drug Administration ("FDA") that it has no questions that a
cellulase enzyme preparation derived from Dyadic's C1 Platform
Technology is Generally Recognized As Safe ("GRAS") under the intended
conditions of use as concluded by Dyadic.
Goldstein Lewin completed audits of Dyadic's financial statements for
the years ended December 31, 2008 and 2007 as well as the reviews of
the first and second quarters of 2009.
In addition to these and other accomplishments, Dyadic has continued its
efforts to improve its technologies as a means to discovering and
developing new products and processes which we anticipate will expand
our potential for research and business opportunities for the benefit of
Dyadic and its partners. These improvements include, without limitation,
the annotation and re-sequencing of the C1 genome in collaboration with
Scripps Florida, a division of The Scripps Research Institute
headquartered in La Jolla, California.
Second Quarter 2009 Financial Results
Total revenue for the quarter ended June 30, 2009 increased to
approximately $11.9 million, as compared to approximately $3.2 million
for the quarter ended June 30, 2008.
As previously reported, Dyadic received the remaining $5 million of a
total $10 million upfront license fee from Codexis and recognized
related revenues of approximately $9.8 million during this quarter.
Net product related revenue for the quarter ended June 30, 2009
decreased to approximately $1.8 million, as compared to approximately
$2.2 million for the quarter ended June 30, 2008. This was due, in part,
to Dyadic's restructuring of its industrial enzyme business to focus on
higher margin products for growing segments of the industry, such as
animal feed, while streamlining product lines and discontinuing some
lower margin products in declining segments of the industry, such as
textiles, as well as global economic conditions.
Net income for the quarter ended June 30, 2009 increased to
approximately $8.6 million or $0.29 per basic share and $0.26 per
diluted share, as compared to a net loss of approximately $4.2 million,
or $(0.14) per basic and diluted share, for the quarter ended June 30,
2008.
At June 30, 2009, cash and cash equivalents were approximately $9.9
million. Inventory at the end of this year's second quarter was
approximately $3.1 million. Working capital at June 30, 2009 amounted to
approximately $11.2 million, and stockholders' equity was approximately
$12.4 million.
First Quarter 2009 Financial Results
Total revenue for the quarter ended March 31, 2009 increased to
approximately $5 million, as compared to approximately $3.4 million for
the quarter ended March 31, 2008.
Dyadic recognized approximately $3.3 million in research and development
revenue during the first quarter from the unrecognized portion of a
total of $10 million in proceeds received from Abengoa pursuant to a
Securities Purchase Agreement (the "Abengoa Securities Purchase
Agreement") entered into between Dyadic and Abengoa in October 2006.
Net product related revenue for the quarter ended March 31, 2009
decreased to approximately $1.5 million, as compared to approximately
$2.5 million for the quarter ended March 31, 2008. This was due, in
part, to Dyadic's restructuring of its industrial enzyme business to
focus on higher margin products for growing segments of the industry,
such as animal feed, while streamlining product lines and discontinuing
some lower margin products in declining segments of the industry, such
as textiles, as well as global economic conditions.
Net income for the quarter ended March 31, 2009 increased to
approximately $2.3 million, or $0.08 per basic share and $0.07 per
diluted share, as compared to a net loss of approximately $3.9 million,
or $(0.13) per basic and diluted share, for the quarter ended March 31,
2008.
At March 31, 2009, cash and cash equivalents were approximately $6.1
million. Inventory at the end of this year's first quarter was
approximately $3.5 million. Working capital at March 31, 2009 amounted
to approximately $2.5 million, and stockholders' equity was
approximately $3.8 million.
Fiscal 2008 Financial Results
Total revenue for the twelve months ended December 31, 2008 was
approximately $13.1 million as compared to approximately $13.3 million
for fiscal 2007.
Dyadic recognized approximately $3.3 million in research and development
revenue during fiscal 2008 from a total of $10 million in proceeds
received from Abengoa pursuant to the Abengoa Securities Purchase
Agreement entered into between Dyadic and Abengoa in October 2006.
Net product related revenue for the year ended December 31, 2008
decreased to approximately $9.2 million, as compared to approximately
$9.7 million for the year ended December 31, 2007. This was due
primarily to Dyadic's restructuring of its industrial enzyme business
beginning in the second half of 2008 to focus on higher margin products
for growing segments of the industry, such as animal feed, while
streamlining product lines and discontinuing some lower margin products
in declining segments of the industry, such as textiles, as well as
global economic conditions.
Net loss for 2008 was approximately $12.4 million, or $(0.41) per basic
and diluted share, as compared to a net loss of approximately $15.5
million, or $(0.52) per basic and diluted share, for fiscal 2007.
Fiscal 2007 Financial Results
Total revenue for the twelve months ended December 31, 2007 was
approximately $13.3 million as compared to approximately $15.4 million
for fiscal 2006. The decline in sales was attributable in large part to
Dyadic's abandonment of its Asian operations and pricing pressure on
enzymes in the textile industry.
Dyadic recognized approximately $3.3 million in research and development
revenue during fiscal 2007 from a total of $10 million in proceeds
received from Abengoa pursuant to the Abengoa Securities Purchase
Agreement entered into between Dyadic and Abengoa in October 2006.
Net product related revenue for the year ended December 31, 2007
increased to approximately $9.7 million, as compared to approximately
$9.3 million for the year ended December 31, 2006.
Net loss for 2007 was approximately $15.5 million, or $(0.52) per basic
and diluted share, as compared to a net loss of approximately $10.9
million, or $(0.45) per basic and diluted share for fiscal 2006.
Chief Executive Officer, Mark Emalfarb, added, "Since returning to
Dyadic in June 2008, we have made substantial progress in re-positioning
Dyadic to grow both our licensing and industrial enzymes businesses. We
are focused on leveraging our patented and proprietary technologies by
continuing to invest in their improvement and finding suitable partners
and collaborators to maximize the many benefits that these technologies
can offer for diverse markets such as biofuels, industrial enzymes and
biopharmaceuticals."
Mr. Emalfarb continued, "In particular, Dyadic is working with its
partners to apply and improve its technologies to produce the maximum
quantity of fermentable sugars from biomass at the lowest cost for use
as an alternative to oil or other petroleum-based products such as
plastics, polymers and chemicals. In addition to our license deals with
Abengoa and Codexis, we are actively pursuing transactions with other
potential licensees in the biofuels industry and seeking government
funding, both in the U.S. and Europe, in this growing area. We believe
that Dyadic's success in biofuel enzyme discovery and production is
evidence of the C1 Platform Technology's applicability across diverse
biotechnology fields including protein discovery, protein production and
biogenerics. For biopharma and other industries where Dyadic lacks the
necessary knowledge and expertise, Dyadic will rely more heavily on the
resources of our potential partners to realize the full potential of our
technologies. Finally, the completion earlier this month of our FDA GRAS
notification process shows our ability to produce C1-derived enzymes for
the food and animal feed industries which provides Dyadic with the
ability to work with potential collaborators where the lack of GRAS
status previously presented a barrier to entry for these types of
products in these and other markets."
About Dyadic
Dyadic International, Inc. is an early-stage 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 has begun making 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.
Contact:
Dyadic International, Inc.
Adam J. Morgan
Vice President
General Counsel & Business Development
Phone: 561-743-8333
Email:
amorgan@dyadic.com
DYADIC INTERNATIONAL, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2009 2008
ASSETS (Unaudited)
Current Assets:
Cash and Cash Equivalents $ 9,891,000 $ 2,826,542
Restricted Cash 343,158 344,355
Accounts Receivable, Net 1,513,447 1,504,200
Inventory, Net 3,140,674 3,775,750
Prepaid Expenses and Other Current Assets 615,097 637,202
Total Current Assets 15,503,376 9,088,049
Fixed Assets, Net 964,178 1,039,458
Intangible Assets, Net 155,353 162,420
Other Assets 109,898 137,502
$ 16,732,805 $ 10,427,429
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts Payable $ 2,359,173 $ 2,678,794
Accrued Expenses 251,623 325,634
Accrued Interest Payable to Stockholder 27,106 194,260
Deferred Research and Development Obligation 250,000 3,332,863
Note Payable to Stockholder 1,424,941 2,424,941
Income Taxes Payable 3,074 8,658
Total Current Liabilities 4,315,917 8,965,150
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 -- 30,040,675 and 29,990,675, Respectively 30,041 29,991
Additional Paid-In Capital 75,906,556 75,843,581
Accumulated Deficit (63,519,709 ) (74,411,293 )
12,416,888 1,462,279
$ 16,732,805 $ 10,427,429
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DYADIC INTERNATIONAL, INC.