2014

Dyadic International Reports 2011 Fiscal Year Financial Results

JUPITER, Fla., March 27, 2012 /PRNewswire/ -- Dyadic International, Inc. (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 year ended December 31, 2011. The financial information contained in this press release should be read in conjunction with the audited financial statements, footnotes and independent auditors' report which have been posted on the OTC market website at www.otcmarkets.com/stock/DYAI/financials and on Dyadic's website at www.dyadic.com/wt/dyad/investors.

(Logo:  http://photos.prnewswire.com/prnh/20110621/CL06708LOGO )

Dyadic's President and Chief Executive Officer, Mark Emalfarb, stated, "In 2011, Dyadic made substantial progress across all areas of its business in continuing to lay a foundation for long-term growth through the consummation of opportunities in a diverse group of markets.  Foremost among these were our first major collaborations with leading companies in the biopharmaceutical and animal nutrition industries to use Dyadic's versatile and robust C1 technology to express genes for the production of key enzymes and proteins. These and other transactions contributed to the large increase in research and license revenue which resulted from Dyadic's continuous process of identifying and securing revenue-generating opportunities with major companies in a variety of industries. Our two non-exclusive biofuels licensees also continued to make significant progress in 2011 toward the development and improvement of highly productive cellulase enzymes. These enzymes have been produced by both licensees at commercial scale in preparation for their commercialization of cellulosic ethanol, biochemicals and other products derived from cellulosic sugars which will generate additional payments to Dyadic."

2011 Highlights

  • Total revenue increased 21%
  • Gross profit increased 86%
  • Research and development revenue increased 81%
  • Entered into research and licensing agreement with major player in the animal nutrition industry to use Dyadic's C1 platform technology to produce certain animal feed enzymes
  • Entered into biopharmaceutical research collaboration with Sanofi Pasteur and EnGen Bio to use Dyadic's C1 platform technology to produce certain vaccines
  • Improved product mix and margins in the sale of our industrial enzyme products
  • Introduced two new enzyme products, FibreZyme® G200 for pulp & paper applications and AlternaFuel® CMAX™ for biofuels applications
  • Raised $3 million in a private placement of convertible debt
  • Received four new U.S. and 14 foreign patents

Financial Results

Total revenue for the year ended December 31, 2011 increased 21% to $10.3 million as compared to $8.4 million for the prior year.

Net product related revenue for the year ended December 31, 2011 remained in line with 2010 at approximately $7.4 million. Gross profit increased 86% for the year ended December 31, 2011 due to increased license fee revenue, increased research and development revenue and improved product margins.

License fee revenue increased to $1.0 million for the year ended December 31, 2011 as compared to $37,000 for the prior year. This increase was due largely to the upfront license payment from a non-exclusive license agreement with a leading global animal nutrition company.

Research and development revenue increased 81% to $1.8 million for the year ended December 31, 2011 as compared to $1.0 million for the year ended December 31, 2010. This increase was largely due to a greater number of research and development projects funded by third parties.

Net loss for the year ended December 31, 2011 was $4.7 million, or $(0.15) per basic and fully diluted share, as compared to a net loss of $5.5 million, or $(0.18) per basic and fully diluted share, for fiscal 2010.

At December 31, 2011, cash and cash equivalents totaled $3.7 million as compared to $4.5 million at December 31, 2010. This decrease was largely due to the net loss for the period and arbitration costs which were partially offset by the private debt placement mentioned below.

At December 31, 2011, total debt was $8.4 million as compared to $5.4 million at December 31, 2010. This increase was due to Dyadic's private placement in 2011 of $3.0 million of convertible subordinated debt.

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

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 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

CONSOLIDATED STATEMENTS OF OPERATIONS














Year Ended  December 31,



2011


2010

Revenue:





Product Related Revenue, Net

$

7,407,908

$

7,389,793

License Fee Revenue


1,017,000


37,250

Research and Development Revenue


1,825,304


1,010,559

          Total Revenue


10,250,212


8,437,602






Cost of Goods Sold


6,641,666


6,497,935

Gross Profit


3,608,546


1,939,667






Expenses:





General and Administrative


5,649,028


5,157,755

Sales and Marketing


1,112,213


988,453

Research and Development


1,047,478


1,240,510

Foreign Currency Exchange Losses, Net


38,144


148,423

          Total Expenses


7,846,863


7,535,141






(Loss) from Operations


(4,238,317)


(5,595,474)






Other Income (Expense)





Interest Income


10,789


61,573

Interest Expense


(517,742)


(248,319)

Gain on Reduction of Accrued Stockholder Litigation


-


410,000

Other


1,709


(155,712)

          Total Other Income (Expense)


(505,244)


67,542











Net Loss

$

(4,743,561)

$

(5,527,932)






Net (Loss) per Common Share:





Basic

$

(0.15)

$

(0.18)

Diluted

$

(0.15)

$

(0.18)






Weighted Average Common Shares Used in





 Calculating Net (Loss) per Share:





Basic


31,349,980


31,011,137

Diluted


31,349,980


31,011,137



DYADIC INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS











December 31,




2011


2010

ASSETS






Current Assets:






Cash and Cash Equivalents


$

3,691,755

$

4,535,279

Restricted Cash



214,376


247,082

Accounts Receivable, Net



1,774,773


1,276,574

Inventory, Net



3,276,382


2,782,433

Prepaid Expenses and Other Current Assets



280,812


336,638

                       Total Current Assets



9,238,098


9,178,006







Fixed Assets, Net



552,221


719,161

Intangible Assets, Net



497,385


310,978

Other Assets



16,173


16,930



$

10,303,877

$

10,225,075







LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)






Current Liabilities:






Accounts Payable


$

2,065,708

$

1,801,123

Accrued Expenses



437,719


417,996

Accrued Interest Payable



173,496


146,230

Note Payable to Stockholder



1,424,941


1,424,941

Income Taxes Payable



-


168

                       Total Current Liabilities



4,101,864


3,790,458

Convertible Subordinated Debt



7,000,000


4,000,000

                       Total Liabilities



11,101,864


7,790,458







COMMITMENTS AND CONTINGENCIES












  Stockholders’ 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 – 31,448,745 and
   31,138,120, Respectively



31,449


31,138

Additional Paid-In Capital



78,608,586


77,101,690

Stock to be Issued



3,750


-

Accumulated Deficit



(79,441,772)


(74,698,211)

                       Total Stockholders' Equity (Deficit)



(797,987)


2,434,617



$

10,303,877

$

10,225,075



DYADIC INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS










Year Ended December 31,









2011


2010

Operating Activities









Net (Loss)






$

(4,743,561)

$

(5,527,932)

Adjustments to Reconcile Net (Loss) to Net Cash (Used In)






Operating Activities:










Depreciation and Amortization of Fixed Assets




247,350


309,162


Amortization of Intangible and Other Assets




37,773


18,142


Reduction of Allowance for Doubtful Accounts




(61,968)


(55,818)


Reduction of Inventory Reserve





(75,389)


(418,406)


Compensation Expense on Stock Option Grants




1,454,214


888,147


Stock Issued for Consulting Services





-


63,000


Gain on Reduction of Accrued Stockholder Litigation



-


(410,000)


Change in Operating Assets and Liabilities









Accounts Receivable





(436,231)


155,278



Inventory






(418,560)


456,354



Prepaid Expenses and Other Current Assets



55,826


84,016



Other Assets





757


-



Accounts Payable





264,585


(147,915)



Accrued Expenses





19,723


(295,167)



Accrued Interest Payable




27,266


86,392



Accrued Stockholder Litigation




-


(2,840,000)



Income Taxes Payable





(168)


(599)












Net Cash (Used In) Operating Activities





(3,628,383)


(7,635,346)












Investing Activities









Purchases of Fixed Assets






(80,410)


(188,684)

Patent Costs







(224,180)


(180,953)

Restricted Cash







32,706


69,047












Net Cash (Used In) Investing Activities





(271,884)


(300,590)












Financing Activities









Proceeds from Issuance of Convertible Subordinated Debt



3,000,000


4,000,000

Proceeds from Stock Warrant Exercises





15,000


16,642

Proceeds from Stock Option Exercises





41,743


34,639












Net Cash Provided by Financing Activities





3,056,743


4,051,281












Net Decrease in Cash and Cash Equivalent




(843,524)


(3,884,655)

Cash and Cash Equivalents at Beginning of Year




4,535,279


8,419,934












Cash and Cash Equivalents at End of Year



$

3,691,755

$

4,535,279












Supplement Cash Flow Information:



















Cash Paid for Interest





$

490,477

$

161,927



SOURCE Dyadic International, Inc.



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