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Dyadic International Reports Profitable 2012 Full Year Financial Results

March 7, 2013

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.

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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.


Source: PR Newswire