JUPITER, Fla., Aug. 10, 2017 (GLOBE NEWSWIRE) -- Dyadic International, Inc. (“Dyadic”) (OTCQX:DYAI), a global biotechnology company focused on further improving and applying its proprietary C1 expression system to speed up the development and production of biologic vaccines and drugs at flexible commercial scales, today announced its financial results for the quarter ended June 30, 2017.
BUSINESS HIGHLIGHTS AND RECENT DEVELOPMENTS
- Cash, cash equivalents and investment grade securities, including interest receivable at June 30, 2017, was approximately $45.6 million
- On July 6, 2017, received approximately $7.4 million of cash held in escrow in connection with the previously announced DuPont Transaction
- Net loss for the second quarter of 2017 was approximately $(1.3) million, or $(0.05) per basic and diluted share
- As of June 30, 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 fully funded research program with one of the world’s largest pharmaceutical companies, which is focused on demonstrating the potential of the C1 technology to produce therapeutic proteins
- On June 30, 2017, the Company entered into a strategic research and collaboration agreement, including a potential commercialization agreement, with Biotechnology Development for Industry ("BDI"), a Spanish biotech company, and its subsidiaries, to advance Dyadic’s proprietary C1 technology in the development of next generation biological vaccines and drugs
- On August 4, 2017, the Company announced the conclusion of its formal research services agreement with Danisco US Inc., a unit of DuPont Industrial Biosciences ("Danisco"). The research collaboration was part of the previously announced DuPont Sale Transaction, and will conclude on September 30, 2017.
FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED JUNE 30, 2017
At June 30, 2017, cash and cash equivalents were approximately $4.6 million compared to $6.9 million at December 31, 2016. The carrying value of investment grade securities, including interest receivable as of June 30, 2017, was approximately $41.0 million compared to $43.6 million at December 31, 2016.
On July 6, 2017, the Company received approximately $7.4 million of cash held in escrow in connection with the previously announced DuPont Transaction. Such amount was not included in the cash and cash equivalents balance as of June 30, 2017.
The net decrease in cash and cash equivalents for the six months ended June 30, 2017, of approximately $2.3 million principally reflects cash used in the repurchase of common stock of approximately $5.7 million, the upfront payment for the BDI R&D agreement of approximately $1.1 million, cash used in other business operations of approximately $2.2 million, offset by cash received from a litigation settlement, net of related costs, of approximately $3.7 million, cash proceeds from maturities of investment grade securities and interest payment, net of purchases and premium paid, of approximately $2.8 million, and the favorable effect of exchange rate changes on cash of approximately $0.2 million.
Net loss for the quarter ended June 30, 2017, was approximately $(1.3) million, or $(0.05) per basic and diluted share, compared to a net income of $0.6 million, or $0.01 per basic and diluted share, for the same period a year ago. The quarter ended June 30, 2016 included a litigation settlement of $2.1 million.
Net income for the six months ended June 30, 2017, including litigation settlement proceeds of approximately $4.4 million, was approximately $0.7 million, or $0.03 per basic and diluted share, compared to a net loss of $(0.4) million, or $(0.01) per basic and diluted share for the same period a year ago. The six months ended June 30, 2016 included a litigation settlement of $2.1 million.
Research and development revenue for the six months ended June 30, 2017, increased to approximately $329,000 compared to $102,000 for the same period a year ago. Cost of revenue for the six months ended June 30, 2017, increased to approximately $321,000 compared to $99,000 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 two confidential biopharmaceutical collaborative research projects that began in December 2016 and June 2017, respectively.
Provision for contract losses for the six months ended June 30, 2017, increased to approximately $221,000 compared to $0 for the same period a year ago. The amount of provision for contract losses reflects the increase in the total estimated research costs due to the Company's extended involvement in the ZAPI program.
Research and development expenses for the six months ended June 30, 2017, increased 24.4% to approximately $739,000 compared to $594,000 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 six months ended June 30, 2017, increased 52.4% to approximately $3,024,000 compared to $1,984,000 for the same period a year ago. The increase principally reflects litigation costs for trial of approximately $468,000, new employment agreements for executives of approximately $253,000, biopharmaceutical business development costs of approximately $198,000, financial reporting costs of approximately $143,000, and other cost increases of approximately $44,000. These increases were partially offset by a reduction in insurance costs of approximately $66,000.
Foreign currency exchange gains for the six months ended June 30, 2017, were approximately $206,000 compared to $32,000 for the same period a year ago. The change represents the strengthening of the Euro in comparison to the U.S. dollar.
Interest income for the six months ended June 30, 2017, increased 25.5% to approximately $246,000 compared to $196,000 for the same period a year ago. The increase in interest income reflects earnings 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, August 10, 2017, at 5:00 p.m. to discuss the financial results for the quarter ended June 30, 2017. In order to participate in the conference call, please dial 888-515-2235 for U.S./Canada callers and +719-325-2177 for International callers, using access code 9865737.
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 Myceliophthora 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|
|Six Months Ended|
|Research and Development Revenue||$||207,402||$||14,945||$||328,929||$||101,836|
|COSTS AND EXPENSES:|
|Cost of Revenue||199,794||13,676||321,322||98,822|
|Provision for Contract Losses||10,175||—||220,715||—|
|Research and Development||419,750||349,380||739,274||594,314|
|General and Administrative||1,233,801||1,091,953||3,024,092||1,983,932|
|Foreign Currency Exchange (Gain) Loss, Net||(178,277||)||101,128||(206,113||)||(31,671||)|
|Total Costs and Expenses||1,685,243||1,556,137||4,099,290||2,645,397|
|LOSS FROM OPERATIONS||(1,477,841||)||(1,541,192||)||(3,770,361||)||(2,543,561||)|
|Settlement of Litigation, Net||—||2,100,000||4,358,223||2,100,000|
|Interest Income, Net||130,236||131,884||246,429||196,173|
|Total Other Income||130,236||2,231,884||4,604,652||2,296,173|
|NET INCOME (LOSS) BEFORE INCOME TAXES||(1,347,605||)||690,692||834,291||(247,388||)|
|Provision for Income Taxes||1,901||133,745||87,457||133,745|
|NET INCOME (LOSS)||$||(1,349,506||)||$||556,947||$||746,834||$||(381,133||)|
|NET INCOME (LOSS) PER SHARE|
|Weighted-Average Number of Shares:|
|Balance Sheet Information:||June 30, 2017||December 31, 2016*|
|Cash and Cash Equivalents||$||4,611,809||$||6,889,357|
|Escrowed Funds from Sale of Assets||7,367,562||7,364,859|
|Investment Securities, Short-term, Long-term and Interest Receivable||41,008,916||43,609,849|
|Prepaid Research and Development||1,124,420||—|
|*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.