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Dyadic International Reports Profitable 2012 Full Year Financial Results
Submitted by admin on 3/7/2013 @ 1:15 PM
Companies mentioned in this article:
Dyadic International, Inc.
JUPITER, Fla., March 7, 2013 /PRNewswire/ -- Dyadic International, Inc. (OTC Pink: DYAI), a global biotechnology company focused on the discovery, development, manufacture and sale of enzymes and others proteins for the bioenergy, bio-based chemicals, biopharmaceutical and industrial enzyme industries, today announced financial results for the year ended December 31, 2012.
(Logo: http://photos.prnewswire.com/prnh/20110621/CL06708LOGO)
Full Year 2012 Financial Highlights
-- Total Revenue increased 52%
-- License Fee Revenue increased 441%
-- Research and Development Revenue increased 25%
-- Product Related Revenue increased 6%
-- Gross Profit increased 121%
-- Total Expenses decreased 18%
-- Income from Operations of $1.6 million compared to a loss of $4.2
million in the prior year
-- Net Income of $1.3 million compared to a Net Loss of $4.7 million in the
prior year
Full Year 2012 Operational Highlights
-- Licensing
-- Expanded license agreement with Abengoa New Technologies, Inc.
("Abengoa Bioenergy") for $5.5 million plus potential royalties and
facility fees
-- Entered into a research, development and license agreement to use
Dyadic's C1 platform technology to develop and produce enzymes for
food applications
-- Research and Development
-- Demonstrated AlternaFuel® CMAX(TM) enzymes equal or exceed other
industry-leading enzymes in converting biomass into fermentable
sugars for the production of biofuels and bio-based chemicals
-- Successful verification of Dyadic's biofuels enzymes by SEKAB
E-Technology in the ethanol demonstration plant in Sweden
-- Extended existing research projects funded by third parties in the
areas of animal health and nutrition, food and biopharmaceuticals
-- Joined the Bio-Mimetic Project and the HealthBread Project, two
multidisciplinary research consortia funded by the European
Community's Seventh Framework Programme (FP7)
-- New Products
-- Launched FibreZyme® G5000 high performance powder enzyme for pulp
and paper manufacturing processes
-- Patents
-- Received four new issued patents (two U.S. and two foreign)
Dyadic's President and Chief Executive Officer, Mark Emalfarb, stated, "We executed our strategy very effectively in 2012, resulting in our first yearly profit since 2009. By demonstrating the capabilities of our technologies and products to our licensees, research partners and customers, we increased revenue in every business segment. Because our C1 platform creates real value in diverse applications such as animal health and nutrition, food, biofuels and biopharmaceuticals, we believe our efforts to identify new collaborations and sales will bear fruit in the months and years ahead. Provided we conclude a specific pending licensing transaction, 2013 is anticipated to be another great year that should equal or exceed our 2012 results."
Full Year 2012 Financial Results
Revenue. Total revenue increased 52% for the year ended December 31, 2012 to $15.6 million as compared to $10.3 million for the prior year.
License fee revenue increased more than fivefold to $5.5 million for the year ended December 31, 2012 as compared to $1.0 million for the prior year. This increase was due to a $5.5 million license fee recognized in the second quarter of 2012 from Dyadic's non-exclusive licensee, Abengoa Bioenergy, for an expansion of its rights under its license agreement with Dyadic.
Research and development revenue increased 25% to $2.3 million for the year ended December 31, 2012 as compared to $1.8 million for the year ended December 31, 2011.
Net product related revenue increased 6% to $7.8 million for the year ended December 31, 2012 as compared to $7.4 million for the prior year.
Gross Profit. Gross profit increased 121% to $8.0 million for the year ended December 31, 2012 as compared to $3.6 million for the prior year primarily due to the contribution from license fee revenue, which has very high margins.
Expenses. Total expenses decreased 18% to $6.4 million for the year ended December 31, 2012 as compared to $7.8 million for the prior year, due largely to a reduction in litigation-related costs, as well as Dyadic's focus on improving cost controls and operational efficiencies.
Settlement of Litigation. In August 2012, Dyadic received $525,000 for the settlement of certain of its claims against two defendants in Dyadic's professional liability lawsuit against its former outside legal counsel. The settlement is included in Other Income (Expense) for the year ended December 31, 2012.
Net Income. Net income for the year ended December 31, 2012 was $1.3 million, or $0.04 per basic and fully diluted share, as compared to a net loss of $4.7 million, or ($0.15) per basic and fully diluted share, for fiscal 2011.
Cash and Cash Equivalents. At December 31, 2012, cash and cash equivalents totaled $4.0 million as compared to $3.7 million at December 31, 2011. The increase was partially due to Dyadic's receipt of the first $2.0 million of the total license fee of $5.5 million for the expansion of Dyadic's license with Abengoa Bioenergy in April 2012.
Debt. At December 31, 2012, total debt was $8.4 million which was unchanged from December 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 market website at http://www.otcmarkets.com/stock/DYAI/filings and on Dyadic's website at http://dyadic.com/investorinfo/financials/.
Conference Call
Dyadic's 2012 year-end financial results conference call is scheduled for 5:00 p.m. Eastern Time on Thursday, March 7, 2013. The conference call may be accessed by dialing 888-259-8885 (from the United States or Canada) or 913-312-0695 (from other countries) five to ten minutes prior to start time and providing the passcode 1207134. A replay of the conference call will be available on the Dyadic website (www.dyadic.com) shortly after the live event.
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 enzymes and other proteins for the bioenergy, bio-based chemicals, biopharmaceutical and industrial enzyme industries.
Dyadic trades on the OTC Pink tier of the OTC market. Investors can find real-time quotes, market information and financial reports for Dyadic on the OTC market website (www.otcmarkets.com/stock/DYAI/quote).
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
CONSOLIDATED STATEMENTS OF OPERATIONS
Year Ended December 31,
-----------------------
2012 2011
---- ----
Revenue:
Product Related Revenue, Net $7,819,547 $7,407,908
License Fee Revenue 5,500,000 1,017,000
Research and Development Revenue 2,282,173 1,825,304
Total Revenue 15,601,720 10,250,212
Cost of Goods Sold 7,616,222 6,641,666
Gross Profit 7,985,498 3,608,546
--------- ---------
Expenses:
General and Administrative 4,802,653 5,649,028
Sales and Marketing 700,778 1,112,213
Research and Development 921,714 1,047,478
Foreign Currency Exchange
(Gains)/Losses, Net (27,989) 38,144
Total Expenses 6,397,156 7,846,863
--------- ---------
Income (Loss) from Operations 1,588,342 (4,238,317)
--------- ----------
Other Income (Expense)
Interest Income 5,245 10,789
Interest Expense (701,090) (517,742)
Gain on Settlement of Litigation 525,000 -
Other - 1,709
--- -----
Total Other Income (Expense) (170,845) (505,244)
-------- --------
Income (Loss) before Provision
for Income Taxes 1,417,497 (4,743,561)
Provision for Income Taxes (68,000) -
------- ---
Net Income (Loss) $1,349,497 $(4,743,561)
========== ===========
Net Income (Loss) per Common
Share:
Basic $0.04 $(0.15)
===== ======
Diluted $0.04 $(0.15)
===== ======
Weighted Average Common Shares
Used in
Calculating Net Income (Loss)
per Share:
Basic 31,608,841 31,349,980
========== ==========
Diluted 34,225,590 31,349,980
========== ==========
DYADIC INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31,
------------
2012 2011
---- ----
ASSETS
Current Assets:
Cash and Cash Equivalents $3,990,062 $3,691,755
Restricted Cash 192,355 214,376
Accounts Receivable, Net 1,260,798 1,774,773
License Fee Receivable 3,500,000 -
Inventory, Net 2,765,187 3,276,382
Prepaid Expenses and Other Current Assets 237,389 280,812
------- -------
Total Current Assets 11,945,791 9,238,098
Fixed Assets, Net 393,860 552,221
Intangible Assets, Net 525,224 497,385
Other Assets 16,173 16,173
$12,881,048 $10,303,877
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIT)
Current Liabilities:
Accounts Payable $1,687,177 $2,035,253
Accrued Expenses 412,483 439,040
Accrued Interest Payable 1,905 173,496
Note Payable to Stockholder 1,424,941 1,424,941
Deferred Research and Development Obligation 567,400 29,134
Total Current Liabilities 4,093,906 4,101,864
Convertible Subordinated Debt 7,000,000 7,000,000
--------- ---------
Total Liabilities 11,093,906 11,101,864
---------- ----------
COMMITMENTS AND CONTINGENCIES
Stockholders' Equity (Deficit):
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 - 31,656,245 and 31,448,745,
Respectively 31,656 31,449
Additional Paid-In Capital 79,847,761 78,608,586
Stock to be Issued - 3,750
Accumulated Deficit (78,092,275) (79,441,772)
Total Stockholders' Equity (Deficit) 1,787,142 (797,987)
--------- --------
$12,881,048 $10,303,877
=========== ===========
DYADIC INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31,
-----------------------
2012 2011
---- ----
Operating Activities
Net Income (Loss) 1,349,497 (4,743,561)
Adjustments to Reconcile Net Income (Loss) to Net Cash
Provided By (Used In) Operating Activities:
Depreciation and
Amortization of Fixed
Assets 204,176 247,350
Amortization of
Intangible and
Other Assets 52,305 37,773
Increase (Decrease) in
Allowance for Doubtful
Accounts 320,573 (61,968)
Increase (Decrease)
in Inventory
Reserve 245,000 (75,389)
Compensation Expense on
Stock Option Grants 1,198,559 1,454,214
Change in Operating
Assets and
Liabilities
Accounts
Receivable 193,402 (436,231)
License Fee
Receivable (3,500,000) -
Inventory 266,195 (418,560)
Prepaid Expenses
and Other Current
Assets 43,423 55,826
Other Assets - 757
Accounts
Payable (348,076) 264,585
Accrued
Expenses (26,557) 19,723
Accrued Interest
Payable (171,591) 27,266
Deferred Research and
Development
Obligation 538,266 -
Income Taxes
Payable - (168)
--- ----
Net Cash Provided by (Used In) Operating Activities 365,172 (3,628,383)
------- ----------
Investing Activities
Purchases of Fixed Assets (45,815) (80,410)
Patent Costs (80,144) (224,180)
Restricted Cash 22,021 32,706
------ ------
Net Cash (Used In) Investing Activities (103,938) (271,884)
-------- --------
Financing Activities
Proceeds from Issuance of Convertible Subordinated Debt - 3,000,000
Proceeds from Stock Warrant Exercises - 15,000
Proceeds from Stock Option Exercises 37,073 41,743
------ ------
Net Cash Provided by Financing Activities 37,073 3,056,743
------ ---------
Net Increase (Decrease) in Cash and Cash Equivalent 298,307 (843,524)
Cash and Cash Equivalents at Beginning of Year 3,691,755 4,535,279
--------- ---------
Cash and Cash Equivalents at End of Year $3,990,062 $3,691,755
========== ==========
Supplement Cash Flow Information:
Cash Paid:
Interest $872,681 $490,477
======== ========
Income Taxes $68,000 $ -
======= ===
SOURCE Dyadic International, Inc.