- Dyadic Closes $75 Million DuPont Transaction on December 31, 2015 -
- Dyadic Retains C1 License to Focus in Pharmaceutical Sector -
- All Debt Has Been Repaid or Converted into Dyadic Common Stock at December 31, 2015 -
|- Encouraging data generated by Sanofi Pasteur indicates that the C1 produced antigen generated
an equal, or better, immune response in mice than the industry standard antigen -
- Dyadic is selected to participate in the € 22 Million EU funded ZAPI vaccine initiative -
- Litigation Court Sets January 6, 2017 Trial Date for Professional Liability Litigation -
- Cash and cash equivalents of $68.6 million as of December 31, 2015 which excludes
approximately $7.4 Million of cash held in escrow until July 2017 from the DuPont Transaction -
JUPITER, Fla., March 29, 2016 (GLOBE NEWSWIRE) -- Dyadic International, Inc. ("Dyadic") (OTCQX:DYAI), a global biotechnology company focused on further improving and leveraging its patented and proprietary C1 expression system technology to help speed up the development and production of biologic drugs at flexible commercial scales, today announced financial results for the year ended December 31, 2015.
“2015 has truly been a transformational year for Dyadic and I am very excited about our future prospects,” said Mark Emalfarb, chief executive officer of Dyadic. Mr. Emalfarb further commented, “As we enter 2016, we are debt free and we have a strong cash position with sufficient cash reserves to fund our previously announced $15 million share repurchase program. In addition, I believe we are uniquely positioned to build shareholder value by leveraging our C1 technology in the pharmaceutical sector.”
BUSINESS HIGHLIGHTS AND RECENT DEVELOPMENTS
On December 31, 2015 the Company completed the sale of substantially all of the assets of its Industrial Technology business to DuPont’s (NYSE:DD) Industrial Biosciences business for $75 million in cash (the “DuPont Transaction”). The Agreement provided for $8 million of the purchase price to be held in an escrow account for 18 months to ensure Dyadic’s obligations with respect to certain indemnity claims and working capital adjustments. The escrow account balance at December 31, 2015 of $7,361,182 is net of contractual working capital adjustments agreed to by the parties.
DuPont has granted back to Dyadic co-exclusive rights to the C1 technology for use in human and animal pharmaceutical applications, with the exclusive ability to enter into sub-license agreements in that field. DuPont will retain certain rights to utilize the C1 technology for use in pharmaceutical applications, including development and production of pharmaceutical products, for which it will make royalty payments to Dyadic upon commercialization. In certain circumstances, Dyadic may owe a royalty to either DuPont or certain licensors of DuPont depending upon whether Dyadic elects to utilize certain patents either owned by DuPont or DuPont’s licensors.
The combination of a portion of the proceeds from the DuPont Transaction and possible additional industry and government funding being sought, are expected to provide Dyadic with the opportunity to accelerate the further development and optimization of the C1 technology for its use in the biopharmaceutical industry to develop and manufacture human and animal vaccines, monoclonal antibodies, biosimilars and/or biobetters, and other therapeutic proteins. In addition, the unique attributes of C1 may create attractive research, licensing, collaboration and other opportunities if C1 demonstrates operational efficiencies and reduced capital requirements for biologic drug manufacturers.
Currently, we intend to continue our existing program with Sanofi Pasteur and our participation in the EU funded ZAPI vaccine preparedness program.
In addition, the Company has initiated internally funded research & development pharmaceutical programs and is reviewing a variety of options regarding its future internal and external pharmaceutical research initiatives.
On January 12, 2016 the Company announced that it repurchased and retired an aggregate of 2,136,752 shares of its common stock at $1.35 per share for an aggregate purchase price of $2,884,615 pursuant to a Securities Purchase Agreement entered into with Abengoa Bioenergy New Technologies, LLC (“ABNT”). The $1.35 per share price is equal to the average conversion price that Dyadic convertible debt holders received upon conversion of debt at December 31, 2015.
On February 16, 2016 the Company initiated its stock repurchase program, under which the Company may repurchase up to $15 million of its outstanding common stock. Under the stock repurchase program, Dyadic may repurchase shares in open-market purchases in accordance with all applicable securities laws and regulations, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The extent to which Dyadic repurchases its shares, and the timing of such repurchases, will depend upon a variety of factors, including market conditions, regulatory requirements and other corporate considerations, as determined by Dyadic’s management. The repurchase program may be extended, suspended or discontinued at any time. The Company expects to finance the program from existing cash resources. The number of shares repurchased by the Company as of the date of this report was 688,655 at an average cost of $1.56 per share.
On March 3, 2016 the Company announced that in its lawsuit against Defendants Greenberg Traurig, LLP, Greenberg Traurig, P.A. (collectively, "Greenberg Traurig") and the Estate of Robert I. Schwimmer, who previously represented the Company while an attorney at Greenberg Traurig, and also against Defendant Bilzin Sumberg Baena Price & Axelrod LLP ("Bilzin Sumberg"), the Court issued an Order, dated March 2, 2016, scheduling the lawsuit for a six-week jury trial commencing Friday, January 6, 2017.
FINANCIAL RESULTS YEAR ENDED DECEMBER 31, 2015
We have reclassified the revenues and expenses of our industrial technology business to “income (loss) from discontinued operations” and the related assets and liabilities to “assets held for sale” and “liabilities related to assets held for sale” for all of the periods presented in the accompanying consolidated financial statements.
Results of Continuing Operations:
At December 31, 2015, cash and cash equivalents, excluding the approximately $7.4 million of cash held in escrow, was approximately $68.6 million compared to $2.5 million at December 31, 2014.
Net loss for the year ended December 31, 2015 was $1.5 million, or ($0.04) per basic and diluted share, compared to a net loss of $5.4 million, or ($0.16) per basic and diluted share, for the same period a year ago.
Research and development revenue for the year ended December 31, 2015 was approximately $316,000 compared to $106,000 for the same period a year ago. The increase in revenue for the period reflects two ongoing biopharmaceutical R&D projects.
Gross profit for the year ended December 31, 2015 increased to approximately $192,000, compared to a loss of $97,000 for the same period a year ago. At this time the Company has two ongoing biopharmaceutical R&D projects.
General and administrative expenses for the year ended December 31, 2015 declined 27% to approximately $3,838,000 compared to $5,284,000 for the same period a year ago. The decrease primarily reflects lower litigation costs of approximately $1,266,000 and lower professional service costs, compensation and project related spending of $180,000.
Research and Development expenses for the year ended December 31, 2015 decreased to $0 from approximately $71,000 in 2014 as a result of the closure of our North Carolina lab in April 2014.
Other income increased for the year ended December 31, 2015 to approximately $2,181,000 compared to $28,000 for the same period a year ago. The increase principally relates to the settlement with one of the defendant law firms in its ongoing professional liability litigation.
Discontinued Operations resulting from the DuPont Transaction:
Net income for year ended December 31, 2015 was approximately $67.3 million, or $1.95 per basic and diluted share, compared to a net loss of $575,800, or ($0.02) per basic and diluted share, for the same period a year ago.
CONFERENCE CALL INFORMATION
Dyadic will host a shareholder call today, Tuesday March 29, 2016 at 5:00 p.m. to discuss the financial results for the full year of 2015 and discuss 2016 company initiatives. In order to participate in the conference call, please dial +719-325-2308 for International callers, and 888-452-4023 for U.S./Canada callers, using code 3130746.
A replay of the conference call will be available on Dyadic’s website (www.dyadic.com) within 24 hours after the live event.
About Dyadic International, Inc.
Dyadic International, Inc. is a global biotechnology company which is developing what it believes will be a potentially significant protein production system based on the fungus Myceliopthora thermophila, nicknamed C1. The C1 microorganism, which enables the development and large scale manufacture of low cost proteins, has the potential to be further developed into a safe and efficient expression system that may help speed up the development and production of biologic drugs at flexible commercial scales. Dyadic is using the C1 technology and other technologies to conduct research, development and commercial activities for the development and manufacturing of human and animal vaccines, monoclonal antibodies, biosimilars and/or biobetters, and other therapeutic proteins. Dyadic pursues research & development collaborations, licensing arrangements and other commercial opportunities to leverage the value of these technologies by providing its partners and collaborators with the benefits of developing and manufacturing and/or utilizing the biopharmaceuticals which these technologies help produce. In particular, as the aging population grows in developed and undeveloped countries, Dyadic believes the C1 technology may help bring biologic drugs to market faster, in greater volumes and at lower cost to drug developers and manufacturers and, hopefully, to patients and the healthcare system. Please visit Dyadic’s website at www.dyadic.com for additional information, including details regarding Dyadic’s plans for its biopharmaceutical business. Dyadic trades on the OTCQX tier of the OTC marketplace. Investors can find real-time quotes, market information and financial reports for Dyadic, as well as additional information related to its professional liability lawsuit, in the Company’s annual and quarterly reports which are filed with the OTC markets. Please visit the OTC markets website at www.otcmarkets.com/stock/DYAI/quote.
Safe Harbor Regarding Forward-Looking Statements
Certain statements contained in this press release are forward-looking statements within the meaning of the federal securities laws. These forward-looking statements involve risks, uncertainties and other factors 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. Investors are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. Any forward-looking statements speak only as of the date of this press release and, except as required by law, Dyadic expressly disclaims any intent or obligation to update or revise any forward-looking statements to reflect actual results, any changes in expectations or any change in events. Factors that could cause results to differ materially include, but are not limited to: (1) general economic conditions, including the recent conditions in the global markets; (2) Dyadic’s ability to retain and attract employees; (3) competitive pressures and reliance on key customers and collaborators; (4) Dyadic’s research and development efforts, (5) the outcome of the current litigation by Dyadic against its former counsel, (6) Dyadic’s ability to obtain additional debt or equity financing sources and (7) other factors discussed in Dyadic’s publicly available filings, including information set forth under the caption “Risk Factors” in our December 31, 2015 Annual Report filed with OTC Markets on March 29, 2016. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us.
|DYADIC INTERNATIONAL, INC. AND SUBSIDIARIES|
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS|
|Years Ended December 31,|
|Research and Development Revenue||$||315,712||$||105,738|
|COSTS AND EXPENSES (INCOME):|
|Costs of Goods Sold||124,012||202,472|
|General and Administrative||3,837,955||5,284,315|
|Research and Development||-||71,018|
|Gain on Sale of Assets||-||(19,755||)|
|LOSS FROM CONTINUING OPERATIONS BEFORE OTHER INCOME||(3,646,255||)||(5,432,312||)|
|Gain on Settlement of Litigation, Net||2,170,000||-|
|Total Other Income||2,181,156||28,055|
|LOSS FROM CONTINUING OPERATIONS||(1,465,099||)||(5,404,257||)|
|NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS, Net of Income Taxes of|
|$1,076,100 and $0 in 2015 and 2014, Respectively||67,252,417||(575,832||)|
|NET INCOME (LOSS)||$||65,787,318||$||(5,980,089||)|
|BASIC AND DILUTED NET INCOME (LOSS) PER COMMON SHARE|
|Basic and Diluted Net (Loss) from continuing operations per share||$||(0.04||)||$||(0.16||)|
|Basic and Diluted Net Income (Loss) from discontinued operations per share||1.95||(0.02||)|
|Basic and Diluted Net Income (Loss) per share||$||1.91||$||(0.18||)|
|Weighted-Average Common Shares Outstanding|
|Basic and Diluted||34,367,723||34,099,319|
|December 31,||December 31,|
|Balance Sheet Information:||2015||2014|
|Cash and Cash Equivalents||$||68,601,138||$||2,495,455|
|Assets Held for Sale||-||5,681,151|
|Escrowed Funds from Sale of Assets||7,361,182||-|
|Liabilities Related to Assets Held for Sale||-||1,721,373|
|Note Payable and Convertible Debt||-||8,135,728|
|Total Stockholders' Equity (Deficit)||73,794,505||(2,264,762||)|
|BALANCE SHEET DISCONTINUED OPERATIONS|
|ASSETS HELD FOR SALE|
|Accounts Receivable, Net of Allowance for Doubtful Accounts of $64,382||$||1,044,990|
|Inventory, Net of Inventory Reserves of $237,782||3,607,062|
|Prepaid Expenses and Other Current Assets||70,224|
|Fixed Assets, Net of Accumulated Depreciation of $2,495,776||539,902|
|Intangible Assets, Net of Accumulated Amortization of $710,199||418,973|
|LIABILITIES RELATED TO ASSETS HELD FOR SALE|
|Deferred Research and Development Obligation||365,827|
|INCOME (LOSS) FROM DISCONTINUED OPERATIONS|
|Years Ended December 31,|
|Product Related Revenue, Net||$||11,989,604||$||9,779,232|
|License Fee revenue||800,567||700,000|
|Research and Development Revenue||1,694,460||1,938,428|
|COSTS AND EXPENSES (INCOME):|
|Cost of Goods Sold||9,231,916||7,779,059|
|General and Administrative||3,407,178||829,341|
|Sales and Marketing||957,577||1,243,801|
|Research and Development||1,687,348||2,310,939|
|Foreign Currency Exchange Loss (Gain), Net||200,246||147,145|
|INCOME (LOSS) FROM DISCONTINUED OPERATIONS BEFORE OTHER INCOME (EXPENSE)||(999,634||)||107,375|
|OTHER INCOME (EXPENSE):|
|Gain on Sale of Assets||70,945,629||-|
|Total Other Income (Expense)||69,328,151||(683,207||)|
|INCOME (LOSS) FROM DISCONTINUED OPERATIONS BEFORE INCOME TAXES||68,328,517||(575,832||)|
|Provision for Income Taxes||(1,076,100||)||-|
|NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS||$||67,252,417||$||(575,832||)|
Contact: Dyadic International, Inc. Thomas L. Dubinski Chief Financial Officer Phone: 561-743-8333 Email: firstname.lastname@example.org
Source:Dyadic International, Inc.