Dyadic addresses biofuels, biochemicals in Q3 results

By Erin Voegele | November 22, 2013

Dyadic International Inc. recently released financial results for the third quarter, reporting revenues of $3.5 million, up from $2.5 million for the same period of last year. The company attributes the increase to a 55 percent increase in product-related revenue, which was offset by a $211,000 decrease in research and development revenue.

Net product-related revenue for the third quarter increased to $3.2 million, up from $2.1 million in the third quarter of 2012. Research and development revenue for the quarter decreased 50 percent to $216,000, down from $427,000 during the same period of last year. Gross profit for the quarter was up 13 percent, reaching $691,000. Gross profit for the third quarter of last year was $613,000.

During a call to discuss the results, Mark Emalfarb, Dyadic president and CEO, spoke about the company’s relationship with BASF. Dyadic achieved technical milestones defined in the research and development agreement related to technology transfer. As a result, dyadic will receive a final milestone payment of $1 million in the fourth quarter. According to Emalfarb, although the existing license with BASF is focused on product development, his company is exploring other ways to leverage the relationship. He said Dyadic was particularly excited to learn of BASF’s acquisition of Verenium, which is expected to create more opportunities for Dyadic’s C1 technology.

Information released by Dyadic also indicates the company expects Abengoa to being production of cellulosic ethanol at its Hugoton, Kan., plant during the second quarter of 2014. Dyadic expect to receive royalty payments in conjunction with the operation of that facility next year.

Earlier this month, Dyadic announced it was issued a new patent that addresses methods to convert lignocellulosic biomass into fermentable sugars with enzymes that degrade the lignocellulosic material and novel combinations of enzymes, including those that provide a synergistic release of sugars from plant biomass. U.S. Patent No. 8,551,751 B2 , titled “BX11 Enzymes Having Xylosidase Activity,” is the 13 U.S. patent issued to Dyadic, adding to its portfolio of 41 international patents. An additional 23 international patents and 11 U.S. patents are pending.