Dyadic (AMEX:DIL)
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Dyadic International, Inc. (AMEX:DIL), a biotechnology
company, today announced financial results for the year ended December
31, 2005.
Overview of Year 2005 and Subsequent Highlights
"2005 was highlighted by the further development of our
proprietary C1 Host Technology for both industrial and bioscience
applications, including identification of the complete C1 genome
sequence; continued progress in the diversification of Dyadic's Enzyme
Business, as sales to the pulp & paper industry increased 75%; and key
additions to our management team, Scientific Advisory Board and Board
of Directors that enhanced our capabilities for the future," said
President and CEO Mark Emalfarb.
"Our C1 technology development program is on the right track. This
proprietary microbial production system for production of large or
small quantities of enzymes or other proteins has already proven its
value in the manufacture of Dyadic's proprietary enzymes for
industrial applications such as pulp & paper and textiles. Our goal is
to apply this technology to the discovery and production of proteins
and antibodies for human therapeutics, as well as enzymes that can
potentially be used to produce cellulosic ethanol, a gasoline
substitute, from agricultural waste such as corn stover, wheat straw,
sugar cane bagasse or other renewable feedstocks.
"In addition to pressing ahead in technology development, we also
expanded and upgraded Dyadic's operating platform in anticipation of
continued growth. We have assembled a team of seasoned sales and
marketing executives to implement an aggressive growth strategy in the
Enzyme Business, where we continue to see substantial upside potential
in the pulp & paper and other markets. We also added a number of
renowned scientists to our Scientific Advisory Board, and recruited
Glenn E. Nedwin, Ph.D., co-founder and President of Novozymes, Inc.
since 1992, to our team as Chief Scientific Officer and President of
Dyadic's Biosciences Business.
"We are pleased by Dyadic's progress in 2005 and excited about our
opportunities for the future," Emalfarb added.
Financial Results
For the twelve months ended December 31, 2005, Dyadic reported net
sales of approximately $15,883,000, primarily from the sale of
industrial enzymes. This compares to net sales for 2004 of
approximately $16,741,000.
As anticipated, sales of enzymes to the textile industry declined
to approximately $11,454,000 from approximately $13,320,000 for 2004,
primarily as a result of intense price competition. Notably, sales of
enzymes to the pulp & paper industry increased 75%, to approximately
$1,869,000 from approximately $1,069,000 for the prior year.
Research and development expenses increased 35% to approximately
$4,899,000 from approximately $3,621,000 for 2004, as the Company
devoted additional resources to the development of its C1 Host
Technology. Sales and marketing expenses increased to approximately
$2,809,000 for 2005 from approximately $1,857,000 for the prior year,
reflecting the Company's expanded sales and marketing efforts in the
pulp & paper market.
The net loss for 2005 was approximately $10,515,000, or $0.48 per
share (diluted). This compares to a net loss for 2004 of approximately
$6,080,000, or $0.37 per share (diluted).
At December 31, 2005, Dyadic reported cash and cash equivalents of
approximately $12,150,000 versus approximately $20,511,000 at December
31, 2004.
About Dyadic
Dyadic International, Inc. is engaged in the development,
manufacture and sale of biological products using a number of
proprietary fungal strains to produce enzymes and other biomaterials,
principally focused on a system for protein production based on the
patented Chrysosporium lucknowense fungus, known as C1. Dyadic
currently sells more than 45 liquid and dry enzyme products to more
than 200 industrial customers in approximately 50 countries.
Dyadic intends to utilize its patented enabling and proprietary
platform technologies on its own behalf and under license to business
collaborators for the discovery, development and manufacture of
biological products from genes to produce targeted protein products
for diverse markets.
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 our actual results,
performance or achievements to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. For a discussion of these risks and
uncertainties, please see our filings from time to time with the
Securities and Exchange Commission, which are available free of charge
on the SEC's web site at http://www.sec.gov, including our Annual
Report on Form 10-KSB for the year ended December 31, 2005. Except as
required by law, we expressly disclaim any intent or obligation to
update any forward-looking statements.
Information contained in this press release should be read in
conjunction with our Annual Report on Form 10-KSB for the year ended
December 31, 2005, as filed with the Securities and Exchange
Commission on March 29, 2006, which contains our audited consolidated
financial statements and other information for the year ended December
31, 2005.
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Dyadic International, Inc.
Condensed Consolidated Balance Sheet
December 31, 2005
Assets
Current assets:
Cash and cash equivalents $12,149,848
Restricted cash 34,658
Accounts receivable, net of allowance for
uncollectible accounts of $530,738 2,869,167
Inventory 5,413,558
Prepaid expenses and other current assets 804,628
--------------
Total current assets 21,271,859
--------------
Fixed assets, net 1,732,929
Intangible assets, net 148,175
Goodwill 467,821
Other assets 132,280
--------------
Total assets $23,753,064
==============
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 2,601,455
Accrued expenses 1,400,937
Accrued interest payable to stockholders 142,629
Short term notes payable 267,590
Notes payable to stockholders of subsidiary 171,986
Income taxes payable 54,106
--------------
Total current liabilities 4,638,703
--------------
Long-term liabilities:
Notes payable to stockholders, including accrued
interest 3,631,677
Other liabilities 106,685
Minority interest 103,891
--------------
Total long-term liabilities 3,842,253
--------------
Total liabilities 8,480,956
--------------
Stockholders' equity:
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 - 22,420,188 22,420
Additional paid-in capital 49,719,905
Notes receivable from exercise of stock options (462,500)
Accumulated deficit (34,007,717)
--------------
Total stockholders' equity 15,272,108
--------------
Total liabilities and stockholders' equity $23,753,064
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Dyadic International, Inc.
Condensed Consolidated Statements of Operations
Year Ended December 31
2005 2004
---------------------------
Net sales $15,882,969 $16,740,847
Cost of goods sold 12,856,607 12,832,890
---------------------------
Gross profit 3,026,362 3,907,957
---------------------------
Operating Expenses:
Research and development 4,898,876 3,621,451
Sales and marketing 2,808,937 1,856,710
General and administrative 5,321,229 3,756,965
Foreign currency exchange (gains)
losses, net (16,785) 213,471
---------------------------
Total operating expenses 13,012,257 9,448,597
---------------------------
Loss from operations (9,985,895) (5,540,640)
---------------------------
Other income (expense):
Interest expense (710,537) (597,906)
Investment income 249,280 69,011
Minority interest (4,725) (16,987)
Other (expense) income, net 1,535 16,654
---------------------------
Total other expense (464,447) (529,228)
---------------------------
Loss before income taxes (10,450,342) (6,069,868)
Provision for income taxes 64,228 9,714
---------------------------
Net loss $(10,514,570)$(6,079,582)
===========================
Net (loss) income applicable to holders of
common stock $(10,514,570)$ 4,397,720
===========================
Net (loss) income per common share:
Basic $ (0.48)$ 0.31
===========================
Diluted $ (0.48)$ (0.37)
===========================
Weighted average shares and equivalent
shares used in calculating net income
(loss) per share:
Basic 22,132,158 14,387,533
===========================
Diluted 22,132,158 16,324,085
===========================
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