Dyadic releases Q2 results, files registration statement with SEC

By Erin Voegele | August 19, 2014

Dyadic International Inc. has released financial results for the second quarter of 2014 and announced it has filed a registration statement with the U.S. Securities and Exchange Commission.

Dyadic reported net product-related revenue of $4.9 million for the first half of the year, up 58 percent from $3.8 million reported for the same period of 2013. The company attributed the high growth rate to increased sales in nearly all its market segments, with a 24 percent growth in animal food and nutrition, a 65 percent growth in starch and alcohol and a 63 percent growth in brewing.

Research and development revenue was $1.1 million during the first half of the year, a 56 percent increase from $725,000 reported for the same period of last year. License fee revenue decreased by $5 million during the first six months of the year, as no license fee contracts were signed during that period. Total revenue for the six-month period decreased $3.6 million to $6 million, compared to $9.6 million during the same period of last year. The $5 million decrease in license fee revenue was partially offset by increases in product-related revenue and research and development revenue.

Gross profit for the six months decreased $1.9 million from the $5.7 million reported for the same period of 2013. Excluding the effects of decreased license fee revenue, gross profits for the six-month period increased from 14 percent in 2013 to 32 percent for the first six months of the current year.

Dyadic has reported a net loss of $3.2 million, or 10 cents per basic diluted share, for the first half of the year, compared to a net income of $1.9 million or 6 cents per basic share and 5 cents per diluted share for the same period of last year.

During a call to discuss the quarterly results, Mark Emalfarb, CEO of Dyadic, spoke about the company’s activities in the biofuel sector. He noted that Dyadic believes U.S. EPA’s recent qualification of corn kernel fiber as a crop residue under the renewable fuels standard (RFS) has opened up significant potential opportunity for the company’s C1 technology platform.

Emalfarb also discussed the C1 licensing agreement Dyadic has in place with Abenoga, noting that construction on the company’s cellulosic ethanol plant in Hugoton, Kanas, is complete and the facility is expected to begin producing ethanol soon. He also discussed a new memorandum of understanding recently signed with Compagnie Industrielle de la Matière Végétale. Under that agreement, announced Aug. 5, the two companies will work together to develop more efficient, fully-integrated processes to produce environmentally low-impact biofuels and biobased chemicals. According to Emalfarb, Dyadic is in discussions with several parties that are interested in conduction research and development activities at Dyadic’s facility in the Netherlands and/or are interested in obtaining a license for the C1 platform. In addition, he said the company expects to expand projects with several existing partners, including BASF and Sanofi.

Dyadic has also recently filed a Form 10 Registration Statement with the SEC. “The filing of our Form 10 is another Dyadic milestone and an important step in Dyadic becoming a fully reporting SEC company,” Emalfarb said in a statement. Upon the effectiveness of the Registration Statement on Form 10, Dyadic will be subject to the reporting requirements of the Securities Exchange Act of 1934, as amended, and as a result will file periodic reports and other information with the SEC.