Dyadic International Reports Profitable 2012 Full Year Financial Results

JUPITER, Fla., March 7, 2013 /PRNewswire/ -- Dyadic International, Inc. (OTC Pink: DYAI), a global biotechnology company focused on the discovery, development, manufacture and sale of enzymes and others proteins for the bioenergy, bio-based chemicals, biopharmaceutical and industrial enzyme industries, today announced financial results for the year ended December 31, 2012.

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Full Year 2012 Financial Highlights

  • Total Revenue increased 52%
    • License Fee Revenue increased 441%
    • Research and Development Revenue increased 25%
    • Product Related Revenue increased 6%
  • Gross Profit increased 121%
  • Total Expenses decreased 18%
  • Income from Operations of $1.6 million compared to a loss of $4.2 million in the prior year
  • Net Income of $1.3 million compared to a Net Loss of $4.7 million in the prior year

Full Year 2012 Operational Highlights

  • Licensing
    • Expanded license agreement with Abengoa New Technologies, Inc. ("Abengoa Bioenergy") for $5.5 million plus potential royalties and facility fees
    • Entered into a research, development and license agreement to use Dyadic's C1 platform technology to develop and produce enzymes for food applications
  • Research and Development
    • Demonstrated AlternaFuel® CMAX™ enzymes equal or exceed other industry-leading enzymes in converting biomass into fermentable sugars for the production of biofuels and bio-based chemicals
    • Successful verification of Dyadic's biofuels enzymes by SEKAB E-Technology in the ethanol demonstration plant in Sweden
    • Extended existing research projects funded by third parties in the areas of animal health and nutrition, food and biopharmaceuticals
    • Joined the Bio-Mimetic Project and the HealthBread Project, two multidisciplinary research consortia funded by the European Community's Seventh Framework Programme (FP7)
  • New Products
    • Launched FibreZyme® G5000 high performance powder enzyme for pulp and paper manufacturing processes
  • Patents
    • Received four new issued patents (two U.S. and two foreign)

Dyadic's President and Chief Executive Officer, Mark Emalfarb, stated, "We executed our strategy very effectively in 2012, resulting in our first yearly profit since 2009. By demonstrating the capabilities of our technologies and products to our licensees, research partners and customers, we increased revenue in every business segment. Because our C1 platform creates real value in diverse applications such as animal health and nutrition, food, biofuels and biopharmaceuticals, we believe our efforts to identify new collaborations and sales will bear fruit in the months and years ahead. Provided we conclude a specific pending licensing transaction, 2013 is anticipated to be another great year that should equal or exceed our 2012 results."

Full Year 2012 Financial Results

Revenue. Total revenue increased 52% for the year ended December 31, 2012 to $15.6 million as compared to $10.3 million for the prior year.

License fee revenue increased more than fivefold to $5.5 million for the year ended December 31, 2012 as compared to $1.0 million for the prior year. This increase 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.

Research and development revenue increased 25% to $2.3 million for the year ended December 31, 2012 as compared to $1.8 million for the year ended December 31, 2011.

Net product related revenue increased 6% to $7.8 million for the year ended December 31, 2012 as compared to $7.4 million for the prior year.

Gross Profit. Gross profit increased 121% to $8.0 million for the year ended December 31, 2012 as compared to $3.6 million for the prior year primarily due to the contribution from license fee revenue, which has very high margins.

Expenses. Total expenses decreased 18% to $6.4 million for the year ended December 31, 2012 as compared to $7.8 million for the prior year, due largely to a reduction in litigation-related costs, as well as Dyadic's focus on improving cost controls and operational efficiencies.

Settlement of Litigation. In August 2012, Dyadic received $525,000 for the settlement of certain of its claims against two defendants in Dyadic's professional liability lawsuit against its former outside legal counsel. The settlement is included in Other Income (Expense) for the year ended December 31, 2012.

Net Income. Net income for the year ended December 31, 2012 was $1.3 million, or $0.04 per basic and fully diluted share, as compared to a net loss of $4.7 million, or ($0.15) per basic and fully diluted share, for fiscal 2011.

Cash and Cash Equivalents. At December 31, 2012, cash and cash equivalents totaled $4.0 million as compared to $3.7 million at December 31, 2011. The increase was partially due to Dyadic's receipt of the first $2.0 million of the total license fee of $5.5 million for the expansion of Dyadic's license with Abengoa Bioenergy in April 2012.

Debt. At December 31, 2012, total debt was $8.4 million which was unchanged from December 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 market website at http://www.otcmarkets.com/stock/DYAI/filings and on Dyadic's website at http://dyadic.com/investorinfo/financials/.

Conference Call

Dyadic's 2012 year-end financial results conference call is scheduled for 5:00 p.m. Eastern Time on Thursday, March 7, 2013. The conference call may be accessed by dialing 888-259-8885 (from the United States or Canada) or 913-312-0695 (from other countries) five to ten minutes prior to start time and providing the passcode 1207134. A replay of the conference call will be available on the Dyadic website (www.dyadic.com) shortly after the live event.

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 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 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,



2012


2011

Revenue:





Product Related Revenue, Net

$

7,819,547

$

7,407,908

License Fee Revenue


5,500,000


1,017,000

Research and Development Revenue


2,282,173


1,825,304

Total Revenue


15,601,720


10,250,212






Cost of Goods Sold


7,616,222


6,641,666

Gross Profit


7,985,498


3,608,546






Expenses:





General and Administrative


4,802,653


5,649,028

Sales and Marketing


700,778


1,112,213

Research and Development


921,714


1,047,478

Foreign Currency Exchange (Gains)/Losses, Net


(27,989)


38,144

Total Expenses


6,397,156


7,846,863






Income (Loss) from Operations


1,588,342


(4,238,317)






Other Income (Expense)





Interest Income


5,245


10,789

Interest Expense


(701,090)


(517,742)

Gain on Settlement of Litigation


525,000


-

Other


-


1,709

Total Other Income (Expense)


(170,845)


(505,244)






Income (Loss) before Provision for Income Taxes


1,417,497


(4,743,561)






Provision for Income Taxes


(68,000)


-






Net Income (Loss)

$

1,349,497

$

(4,743,561)






Net Income (Loss) per Common Share:





Basic

$

0.04

$

(0.15)

Diluted

$

0.04

$

(0.15)






Weighted Average Common Shares Used in





Calculating Net Income (Loss) per Share:





Basic


31,608,841


31,349,980

Diluted


34,225,590


31,349,980











 

DYADIC INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS











December 31,




2012


2011

ASSETS






Current Assets:






Cash and Cash Equivalents


$

3,990,062

$

3,691,755

Restricted Cash



192,355


214,376

Accounts Receivable, Net



1,260,798


1,774,773

License Fee Receivable



3,500,000


-

Inventory, Net



2,765,187


3,276,382

Prepaid Expenses and Other Current Assets



237,389


280,812

                        Total Current Assets



11,945,791


9,238,098







Fixed Assets, Net



393,860


552,221

Intangible Assets, Net



525,224


497,385

Other Assets



16,173


16,173



$

12,881,048

$

10,303,877







LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)






Current Liabilities:






Accounts Payable


$

1,687,177

$

2,035,253

Accrued Expenses



412,483


439,040

Accrued Interest Payable



1,905


173,496

Note Payable to Stockholder



1,424,941


1,424,941

Deferred Research and Development Obligation



567,400


29,134

                        Total Current Liabilities



4,093,906


4,101,864

Convertible Subordinated Debt



7,000,000


7,000,000

                        Total Liabilities



11,093,906


11,101,864







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 – 31,656,245 and 31,448,745, Respectively



31,656


31,449

Additional Paid-In Capital



79,847,761


78,608,586

Stock to be Issued



-


3,750

Accumulated Deficit



(78,092,275)


(79,441,772)

                        Total Stockholders' Equity (Deficit)



1,787,142


(797,987)



$

12,881,048

$

10,303,877







 

DYADIC INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS





















Year Ended December 31,









2012


2011

Operating Activities









Net Income (Loss)






1,349,497


(4,743,561)

Adjustments to Reconcile Net Income (Loss) to Net Cash






  Provided By (Used In) Operating Activities:








Depreciation and Amortization of Fixed Assets



204,176


247,350


Amortization of Intangible and Other Assets




52,305


37,773


Increase (Decrease) in Allowance for Doubtful Accounts


320,573


(61,968)


Increase (Decrease) in Inventory Reserve




245,000


(75,389)


Compensation Expense on Stock Option Grants



1,198,559


1,454,214


Change in Operating Assets and Liabilities









Accounts Receivable





193,402


(436,231)



License Fee Receivable




(3,500,000)


-



Inventory






266,195


(418,560)



Prepaid Expenses and Other Current Assets



43,423


55,826



Other Assets





-


757



Accounts Payable





(348,076)


264,585



Accrued Expenses





(26,557)


19,723



Accrued Interest Payable




(171,591)


27,266



Deferred Research and Development Obligation


538,266


-



Income Taxes Payable




-


(168)












Net Cash Provided by (Used In) Operating Activities



365,172


(3,628,383)












Investing Activities









Purchases of Fixed Assets





(45,815)


(80,410)

Patent Costs







(80,144)


(224,180)

Restricted Cash






22,021


32,706












Net Cash (Used In) Investing Activities




(103,938)


(271,884)












Financing Activities









Proceeds from Issuance of Convertible Subordinated Debt



-


3,000,000

Proceeds from Stock Warrant Exercises




-


15,000

Proceeds from Stock Option Exercises





37,073


41,743












Net Cash Provided by Financing Activities




37,073


3,056,743












Net Increase (Decrease) in Cash and Cash Equivalent



298,307


(843,524)

Cash and Cash Equivalents at Beginning of Year




3,691,755


4,535,279












Cash and Cash Equivalents at End of Year



$

3,990,062

$

3,691,755












Supplement Cash Flow Information:



















Cash Paid:












Interest





$

872,681

$

490,477



Income Taxes




$

68,000

$

-























SOURCE Dyadic International, Inc.



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http://www.dyadic.com

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