JUPITER, Fla., May 11, 2017 (GLOBE NEWSWIRE) -- Dyadic International, Inc. (“Dyadic”) (OTCQX:DYAI), a global biotechnology company focused on further improving and applying the proprietary C1 expression system to help speed up the development and production of biologic vaccines and drugs at flexible commercial scales, today announced its financial results for the quarter ended March 31, 2017.
BUSINESS HIGHLIGHTS AND RECENT DEVELOPMENTS
- Cash, cash equivalents and investment grade securities, including interest receivable at March 31, 2017 was approximately $43.6 million
- Escrowed funds from the sale of the Company's industrial business to DuPont of approximately $7.4 million are expected to be received in July 2017
- In April 2017, received approximately $4.4 million litigation settlement payment, net of legal fees and other expenses, from the last remaining defendant law firm, Greenberg Traurig, LLP and Greenberg Traurig, P.A., ending our long-standing professional liability litigation
- Net income for the first quarter of 2017, including litigation settlement gain of approximately $4.4 million, was approximately $2.1 million or $0.07 per basic and diluted share
- The Company repurchased approximately 3.7 million shares, in both open market and private transactions, at an average price of $1.55 per share, through February 15, 2017, the expiration date of the 2016 Stock Repurchase Program
- As of March 31, 2017, there were approximately 28.7 million shares outstanding and approximately 10.2 million shares held in treasury
- On May 4, 2017, the Company entered into a small research program with another of the world’s largest pharmaceutical companies to demonstrate the potential of the C1 technology to produce therapeutic proteins
FINANCIAL RESULTS FOR THE QUARTER ENDED MARCH 31, 2017
At March 31, 2017, cash and cash equivalents were approximately $8.0 million compared to $6.9 million at December 31, 2016. The carrying value of investment grade securities, including accrued interest as of March 31, 2017 was $35.6 million compared to $43.6 million at December 31, 2016.
Cash and cash equivalents do not include the approximately $7.4 million of cash held in escrow in connection with the DuPont Transaction, which we anticipate to be released in July 2017, if no claims are made prior to such release.
Net increase in cash and cash equivalents for the three months ended March 31, 2017 of approximately $1.1 million principally reflects approximately $7.5 million of cash proceeds from maturities of investment grade securities, net of purchases and premium paid, and cash received from interest earned of approximately $0.6 million, partially offset by cash used for the repurchase of common stock of approximately $5.7 million, litigation costs of approximately $0.6 million, and all other cash used in operations of approximately $0.7 million.
On February 15, 2017, the Company has successfully completed its one year 2016 Stock Repurchase Program. From January 1, 2017 through February 15, 2017, the expiration date of the 2016 Stock Repurchase Program, the Company purchased approximately 3.7 million shares in both open market and private transactions at an average price of $1.55 per share.
On April 14, 2017, the Company received the litigation settlement payment from the last remaining defendant law firm Greenberg Traurig, LLP, and Greenberg Traurig, P.A. (collectively, "Greenberg Traurig"), in its ongoing professional liability litigation, in the amount of approximately $4.4 million, net of legal fees and other expenses. The settlement amount was reported in other income, for the quarter ended March 31, 2017.
Net income for the three months ended March 31, 2017, including the litigation settlement gain of approximately $4.4 million, was approximately $2.1 million, or $0.07 per basic and diluted share, compared to a net loss of $(0.9) million, or $(0.02) per basic and diluted share for the same period a year ago.
Research and development revenue for the three months ended March 31, 2017 increased to approximately $122,000 compared to approximately $87,000 for the same period a year ago. The cost of revenue for the three months ended March 31, 2017 increased to approximately $122,000 compared to approximately $85,000 for the same period a year ago. The increase in research and development revenue, and cost of revenue reflects the activities of the ZAPI project and a confidential biopharmaceutical collaborative research project started in December 2016.
For the three months ended March 31, 2017, the Company recorded a $210,540 provision for contract losses. The amount reflects the increase in the total estimated research costs due to the Company's extended involvement in the ZAPI program. The reported loss will be accredited into the statement of operations over the term of the contract.
Research and development expenses for the three months ended March 31, 2017 increased 30.6% to approximately $320,000 compared to approximately $245,000 for the same period a year ago. The increase principally reflects the costs of biopharmaceutical contract research initiatives and personnel related costs.
General and administrative expenses for the three months ended March 31, 2017 increased 100.7% to approximately $1,790,000 compared to $892,000 for the same period a year ago. The increase principally reflects new employment agreements for executives of approximately $391,000, litigation costs for trial of approximately $369,000, financial reporting costs of approximately $115,000, and biopharmaceutical business development costs of approximately $99,000. These increases were partially offset by lower board compensation costs of approximately $76,000 due to the formation of the Special Committee of the Board in 2016.
Interest income for the three months ended March 31, 2017 increased 78.5% to approximately $116,000 compared to approximately $65,000 for the same period a year ago. The increase in interest income reflects returns earned on the Company's investment grade debt securities, which are classified as held-to-maturity.
CONFERENCE CALL INFORMATION
Dyadic management will host a conference call today, Thursday, May 11, 2017 at 5:00 p.m. to discuss the financial results for the quarter ended March 31, 2017. In order to participate in the conference call, please dial 888-663-2260 for U.S./Canada callers and +913-312-0416 for International callers, using access code 8410672.
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 biopharmaceutical 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, production and performance of biologic vaccines and 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 with its partners and collaborators to leverage the value and benefits of these technologies in developing and manufacturing 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, at lower cost, and with new properties to drug developers and manufacturers and, hopefully, improve access and cost to patients and the healthcare system, but most importantly saving lives.
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 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, political and market conditions; (2) our ability to carry out and implement our biopharmaceutical research and business plans and strategic initiatives; (3) Dyadic’s ability to retain and attract employees, consultants, directors and advisors; (4) our ability to implement and successfully carry out Dyadic’s and third parties research and development efforts; (5) our ability to obtain new license and research agreements; (6) our ability to maintain our existing access to, and/or expand access to third party contract research organizations in order to carry out our research projects for ourselves and third parties; (7) competitive pressures and reliance on key customers and collaborators; and (8) other factors discussed in Dyadic’s publicly available filings, including information set forth under the caption “Risk Factors” in our December 31, 2016 Annual Report filed with OTC Markets on March 24, 2017. 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|
CONSOLIDATED STATEMENTS OF OPERATIONS
|Three Months Ended March 31,|
|Research and Development Revenue||$||121,527||$||86,891|
|COSTS AND EXPENSES:|
|Cost of Revenue||121,528||85,146|
|Provision for Contract Losses||210,540||—|
|Research and Development||319,524||244,934|
|General and Administrative||1,790,291||891,979|
|Foreign Currency Exchange Gain||(27,836||)||(132,799||)|
|Total Costs and Expenses||2,414,047||1,089,260|
|LOSS FROM OPERATIONS||(2,292,520||)||(1,002,369||)|
|Other Income (Expense):|
|Settlement of Litigation, Net||4,358,223||—|
|Total Other Income||4,474,416||64,289|
|INCOME (LOSS) BEFORE INCOME TAXES||2,181,896||(938,080||)|
|Provision for Income Taxes||85,556||—|
|NET INCOME (LOSS)||$||2,096,340||$||(938,080||)|
|NET INCOME (LOSS) PER SHARE|
|Weighted-Average Number of Shares:|
|Balance Sheet Information:||March 31, 2017||December 31, 2016*|
|Cash and Cash Equivalents||$||7,979,545||$||6,889,357|
|Escrowed Funds from Sale of Assets||7,365,963||7,364,859|
|Investment Securities, Short-term and Long-term and Interest Receivable||35,623,449||43,609,849|
|Litigation Settlement Receivable||4,358,223||—|
|*Condensed from audited financial statements|
Contact: Dyadic International, Inc. Thomas L. Dubinski Chief Financial Officer Phone: 561-743-8333 Email: email@example.com
Source:Dyadic International, Inc.