Dyadic International Reports 2011 First Quarter Financial Results

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May 05, 2011, 09:15 ET

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

Total revenue for the first quarter increased approximately 15% over the same period last year highlighted by a greater than five-fold increase in research and development revenue
Product margins for the first quarter increased compared to the previous year's first quarter
Gross profit for the first quarter increased by approximately 95% over the same period last year as a result of higher research revenue, improved product margins and further cost controls and operational efficiencies
Launched two new products: FibreZyme® G200 and AlternaFuel® CMAX™, for the pulp and paper and biofuels markets
Received four new U.S. patents
Completed negotiations and entered into R&D collaboration with Sanofi Pasteur and EnGen Bio for certain vaccine applications of Dyadic's patented C1 technology

Financial Results

Total 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 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.

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 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

		Three Months Ended March 31,
		2011		2010
Revenue:		(Unaudited)		(Unaudited)
Product Related Revenue, Net	$	1,805,208	$	1,879,145
License Fee Revenue		-		32,000
Research and Development Revenue		491,309		88,235
Total Revenue		2,296,517		1,999,380

Cost of Goods Sold		1,528,227		1,605,324
Gross Profit		768,290		394,055

Expenses:
General and Administrative		1,684,690		1,359,667
Sales and Marketing		267,734		226,733
Research and Development		304,003		286,042
Foreign Currency Exchange Losses (Gains), Net		(94,034)		33,294
Total Expenses		2,162,393		1,905,736

(Loss) from Operations		(1,394,103)		(1,511,681)

Other Income (Expense):
Interest Income		4,191		21,270
Interest Expense		(113,006)		(33,379)
Gain on Reduction of Accrued Stockholder Litigation		-		410,000
Total Other Income (Expense)		(108,815)		397,891


Net (Loss)	$	(1,502,918)	$	(1,113,789)


Net (Loss) per Common Share
Basic	$	(0.05)	$	(0.04)
Diluted	$	(0.05)	$	(0.04)

Weighted Average Common Shares Used in Calculating Net (Loss) Per Share:
Basic		31,150,620		30,832,621
Diluted		31,150,620		30,832,621

DYADIC INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

		March 31, 2011		December 31, 2010
ASSETS		(Unaudited)
Current Assets:
Cash and Cash Equivalents	$	3,121,189	$	4,535,279
Restricted Cash		263,934		247,082
Accounts Receivable, Net		1,517,157		1,276,574
Inventory, Net		2,831,189		2,782,433
Prepaid Expenses and Other Current Assets		447,490		336,638
Total Current Assets		8,180,959		9,178,006

Fixed Assets, Net		648,631		719,161
Intangible Assets, Net		354,609		310,978
Other Assets		16,929		16,930
	$	9,201,128	$	10,225,075

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts Payable	$	1,925,827	$	1,801,123
Accrued Expenses		511,010		417,996
Accrued Interest Payable		112,283		146,230
Note Payable to Stockholder		1,424,941		1,424,941
Income Taxes Payable		168		168
Total Current Liabilities		3,974,229		3,790,458
Convertible Subordinated Debt		4,000,000		4,000,000
		7,974,229		7,790,458
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 – 31,163,120 and 31,138,120, Respectively		31,163		31,138
Additional Paid-in Capital		77,396,865		77,101,690
Accumulated Deficit		(76,201,129)		(74,698,211)
		1,226,899		2,434,617
	$	9,201,128	$	10,225,075

DYADIC INTERNATIONAL
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
		Three Months Ended March 31,
		2011		2010
		(Unaudited)		(Unaudited)
Operating Activities
Net (Loss)	$	(1,502,918)	$	(1,113,790)
Adjustments to Reconcile Net (Loss) to Net Cash (Used in) Operating Activities:
Depreciation and Amortization of Fixed Assets		70,532		71,712
Amortization of Intangible and Other Assets		7,490		3,515
Provision for Doubtful Accounts		11,839		-
Recovery of Inventory Reserve		(75,389)		(97,713)
Compensation Expense on Stock Option Grants		291,450		196,102
Stock Issued for Financial Services		-		63,000
Gain on Reduction of Accrued Stockholder Litigation		-		(410,000)
Changes in Operating Assets and Liabilities:
Accounts Receivable		(252,422)		5,049
Inventory		26,633		450,985
Prepaid Expenses and Other Current Assets		(110,852)		34,504
Other Assets		-		(12,588)
Accounts Payable		124,704		47,084
Accrued Expenses		93,014		(101,563)
Accrued Interest Payable		(33,947)		(26,459)
Deferred Research and Development Obligation		-		90,614
Income Taxes Payable		-		(767)
Net Cash (Used In) Operating Activities		(1,349,866)		(800,315)

Investing Activities
Purchases 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 Activities
Proceeds from Stock Option Exercises		3,750		15,093
Proceeds from Stock Warrant Exercises		-		16,876
Net Cash Provided by Financing Activities		3,750		31,969

Net (Decrease) in Cash and Cash Equivalents		(1,414,090)		(874,397)
Cash and Cash Equivalents at Beginning of Period		4,535,279		8,419,934
Cash and Cash Equivalents at End of Period	$	3,121,189	$	7,545,537

Supplemental Cash Flow Information:
Cash Paid for Interest	$	146,953	$	59,838