JUPITER, Fla., Aug. 11, 2016 (GLOBE NEWSWIRE) -- Dyadic International, Inc. (“Dyadic”) (OTCQX:DYAI), a global biotechnology company focusing on further improving and leveraging the patented and 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 June 30, 2016.
BUSINESS HIGHLIGHTS AND RECENT DEVELOPMENTS
- Cash, cash equivalents and investment securities at June 30, 2016 was $62.6 million
- Net income for the second quarter 2016 was approximately $0.6 million and EPS of $0.01
- Received litigation settlement of $2.1 million, in favor of the Company on April 19, 2016
- Repurchased approximately 4.0 million shares of its common stock as of June 30, 2016 in both open market and private transactions at an average price of $1.49 per share
- Professional Liability Litigation remains on track for a January 6, 2017 trial date
- Completed all transition services provided to DuPont in connection with the sale of the Company's industrial biotechnology business to DuPont on December 31, 2015. Escrowed funds from the transaction of approximately $7.4 million are scheduled for release on July 1, 2017
- On August 8, 2016, the Company announced the termination of its Proof of Concept, Exclusive Option and Technology Transfer Agreement with Sanofi Pasteur
- On August 8, 2016, Dyadic’s Board of Directors approved a reverse stock split which will be subject to shareholders’ approval
FINANCIAL RESULTS QUARTER AND SIX MONTHS ENDED JUNE 30, 2016
At June 30, 2016, cash and cash equivalents were approximately $15.0 million compared to $68.6 million at December 31, 2015. The Company used approximately $53.6 million of cash during the six month period principally for the purchase of investment securities of $47.6 million, stock repurchases of $6.0 million, payment of DuPont related transaction costs of $1.9 million and operating activities of $2.1 million offset by cash received from the litigation settlement of $2.1 million, cash received by Dyadic on DuPont’s behalf in connection with the DuPont transition services agreement of $1.7 million and other cash items of $0.2 million.
Cash and cash equivalents do not include the $7.4 million of cash held in escrow in connection with the DuPont Transaction, which we anticipate will be released on July 1, 2017. Although none are anticipated, such amount is subject to reduction should there be any claims from DuPont.
The Company repurchased approximately 1.2 million shares of its common stock at an average of $1.69 per share during the second quarter, and an aggregate of approximately 4.0 million shares of its common stock at an average price of $1.49 per share for the six months ended June 30, 2016. Subsequent to June 30, 2016, the Company repurchased approximately 800,000 additional shares at an average price of $1.62 through August 10th. As of August 10, 2016, we have approximately $10,700,000 still available under our announced Stock Repurchase Program.
Net income from continuing operations for the quarter ended June 30, 2016 was approximately $0.6 million, or $0.01 per basic and diluted share, compared to a net loss of $1.5 million, or ($0.04) per basic and diluted share, for the same period a year ago.
Net loss from continuing operations for the six months ended June 30, 2016 was approximately $0.4 million, or ($0.01) per basic and diluted share, compared to a net loss of $2.3 million, or ($0.06) per basic and diluted share, for the same period a year ago.
Research and development revenue for the six months ended June 30, 2016 increased 59% to approximately $101,800 compared to $64,000 for the same period a year ago. The increase in revenue for the period reflects activity from one ongoing and one discontinued biopharmaceutical R&D project.
General and administrative expenses for the six months ended June 30, 2016 decreased 9% to approximately $1,983,900 compared to $2,183,000 for the same period a year ago. The decrease primarily reflects lower employee related costs due to the organizational downsizing in connection with the DuPont Transaction of $566,300, cost reimbursement received from DuPont for services rendered in the transition services agreement of $182,200 and a decrease in litigation costs of $105,500, offset by an increase in non-cash stock compensation in connection with the Special Committee of the Board of $200,000, an increase in executive compensation costs of $244,700, an increase in costs related to the Company's transition to a biopharmaceutical research company of $133,600 and an increase in financial personnel compensation and related recruitment costs of $76,600.
Research and development expenses from continuing operations for the six months ended June 30, 2016 increased to approximately $594,300 compared to $0, for the same periods a year ago. The increase reflects the R&D activities and the service agreement with DuPont to support our ongoing biopharmaceutical and internally funded projects.
Net Income from discontinued operations for the quarter and six months ended June 30, 2015 were approximately $1.1 million, and $1.5 million, respectively, or $0.03 and $0.04 per basic and diluted share, respectively.
CONFERENCE CALL INFORMATION
Dyadic management will host a conference call today, Thursday August 11, 2016 at 5:00 p.m. to discuss the financial results for the second quarter of 2016. In order to participate in the conference call, please dial 877-795-3648 for U.S./Canada callers and +719-325-4857 for International callers, using access code 4570690.
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, production and performance 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 and 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, 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, 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, advisors and contract research organizations (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) competitive pressures and reliance on key customers and collaborators (7) the outcome of the current litigation by Dyadic against its former counsel and (8) 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 | |||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
| REVENUES: | |||||||||||||||||
| Research and Development Revenue | $ | 14,945 | $ | 25,835 | $ | 101,836 | $ | 63,983 | |||||||||
| COSTS AND EXPENSES (INCOME): | |||||||||||||||||
| Costs of Goods Sold | 13,676 | 19,796 | 98,822 | 50,833 | |||||||||||||
| General and Administrative | 1,091,953 | 1,353,854 | 1,983,932 | 2,183,000 | |||||||||||||
| Research and Development | 349,380 | - | 594,314 | - | |||||||||||||
| Foreign Currency Transaction Loss (Gain), Net | 101,128 | 128,657 | (31,671 | ) | 128,657 | ||||||||||||
| Total Expenses | 1,556,137 | 1,502,307 | 2,645,397 | 2,362,490 | |||||||||||||
| LOSS FROM CONTINUING OPERATIONS BEFORE OTHER INCOME (EXPENSE) | (1,541,192 | ) | (1,476,472 | ) | (2,543,561 | ) | (2,298,507 | ) | |||||||||
| Other Income (Expense): | |||||||||||||||||
| Settlement of Litigation, Net | 2,100,000 | - | 2,100,000 | - | |||||||||||||
| Interest Income | 132,065 | 2,687 | 197,082 | 6,087 | |||||||||||||
| Interest Expense | (181 | ) | - | (909 | ) | - | |||||||||||
| Total Other Income | 2,231,884 | 2,687 | 2,296,173 | 6,087 | |||||||||||||
| INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 690,692 | (1,473,785 | ) | (247,388 | ) | (2,292,420 | ) | ||||||||||
| Income Tax Expense from Continuing Operations | (133,745 | ) | - | (133,745 | ) | - | |||||||||||
| NET INCOME (LOSS) FROM CONTINUING OPERATIONS | 556,947 | (1,473,785 | ) | (381,133 | ) | (2,292,420 | ) | ||||||||||
| NET INCOME FROM DISCONTINUED OPERATIONS | - | 1,050,577 | - | 1,488,556 | |||||||||||||
| NET INCOME (LOSS) | $ | 556,947 | $ | (423,208 | ) | $ | (381,133 | ) | $ | (803,864 | ) | ||||||
| BASIC NET INCOME (LOSS) PER SHARE: | |||||||||||||||||
| Basic Net Income (Loss) from Continuing Operations per Share | $ | 0.01 | $ | (0.04 | ) | $ | (0.01 | ) | $ | (0.06 | ) | ||||||
| Basic Net Income from Discontinued Operations per Share | - | 0.03 | - | 0.04 | |||||||||||||
| Basic Net Income (Loss) per Share | $ | 0.01 | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) | ||||||
| DILUTED NET INCOME (LOSS) PER SHARE: | |||||||||||||||||
| Diluted Net Income (Loss) from Continuing Operations per Share | 0.01 | $ | (0.04 | ) | (0.01 | ) | $ | (0.06 | ) | ||||||||
| Diluted Net Income from Discontinued Operations per Share | - | 0.03 | - | 0.04 | |||||||||||||
| Diluted Net Income (Loss) per Share | 0.01 | $ | (0.01 | ) | (0.01 | ) | $ | (0.02 | ) | ||||||||
| Weighted-Average Number of Shares: | |||||||||||||||||
| Basic | 37,580,900 | 34,207,808 | 38,186,194 | 34,202,488 | |||||||||||||
| Diluted | 37,906,553 | 34,207,808 | 38,186,194 | 34,202,488 | |||||||||||||
| June 30, | December 31, | ||||||||||||||||
| Balance Sheet Information: | 2016 | 2015* | |||||||||||||||
| (Unaudited) | (Audited) | ||||||||||||||||
| Cash and Cash Equivalents | $ | 14,958,236 | $ | 68,601,138 | |||||||||||||
| Investment Securities, Short-term and Long-term | 47,683,071 | - | |||||||||||||||
| Escrowed Funds from Sale of Assets | 7,363,026 | 7,361,182 | |||||||||||||||
| Total Assets | 70,807,506 | 76,667,425 | |||||||||||||||
| Accumulated Deficit | (19,094,229 | ) | (18,713,096 | ) | |||||||||||||
| Stockholders' Equity | 68,031,804 | 73,794,505 | |||||||||||||||
| *Condensed from audited financial statements | |||||||||||||||||
| INCOME FROM DISCONTINUED OPERATIONS (Unaudited) | ||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
| 2015 | 2015 | |||||||||||||
| REVENUES: | ||||||||||||||
| Product Related Revenue, Net | $ | 2,756,394 | $ | 6,234,710 | ||||||||||
| License Fee revenue | 600,000 | 800,000 | ||||||||||||
| Research and Development Revenue | 449,582 | 767,163 | ||||||||||||
| Total Revenue | 3,805,976 | 7,801,873 | ||||||||||||
| COSTS AND EXPENSES (INCOME): | ||||||||||||||
| Cost of Goods Sold | 2,189,810 | 4,598,381 | ||||||||||||
| General and Administrative | (202,520 | ) | (69,995 | ) | ||||||||||
| Sales and Marketing | 299,933 | 542,457 | ||||||||||||
| Research and Development | 403,421 | 808,574 | ||||||||||||
| Foreign Currency Transaction (Gain) Loss, Net | (153,755 | ) | 34,759 | |||||||||||
| Total Expenses | 2,536,889 | 5,914,176 | ||||||||||||
| INCOME FROM DISCONTINUED OPERATIONS BEFORE OTHER EXPENSE | 1,269,087 | 1,887,697 | ||||||||||||
| OTHER EXPENSE: | ||||||||||||||
| Interest Expense | (218,510 | ) | (399,141 | ) | ||||||||||
| NET INCOME FROM DISCONTINUED OPERATIONS | $ | 1,050,577 | $ | 1,488,556 | ||||||||||