By John Vandermosten, CFA
NASDAQ:DYAI
READ THE FULL DYAI RESEARCH REPORT
Dyadic International Inc. (NASDAQ:DYAI) provided 3Q:23 operational and financial results in a press release on November 8, 2023, filed its Form 10-Q with the SEC and held a conference call with investors. Dyadic announced new collaborations with bYoRNA, INZYMES and a Department of Defense program for vaccines. Several other fully funded product related projects were also announced in the press release. Other news of note includes the addition of Doug Pace as Executive Vice President of Business Development and Dyadic’s participation in a number of scientific and investor conferences around the globe.
Highlights year to date include:
➢ Sale of Alphazyme interest – January 2023
➢ Dosing initiated in DYAI-100 COVID trial – January 2023
➢ Dosing completed in DYAI-100 COVID trial – February 2023
➢ Participation in FDA Vaccine Workshop – April 2023
➢ Presentation at World Vaccine Congress – April 2023
➢ Patent Notice of Allowance awarded from USPTO – April 2023
➢ Fermbox Bio animal free protein collaboration – May 2023
➢ MoU with Bangladesh State-Owned Pharmaceutical Company – June 2023
➢ INZYMES Collaboration – September 2023
➢ bYoRNA Collaboration – September 2023
➢ Termination of Janssen Collaboration Agreement – October 2023
➢ Inclusion in self-assembling vaccine consortium – October 2023
Financial results for the quarter ending September 30, 2023, compared to the same prior year period:
➢ Revenues were $0.4 million, down 55% from $0.9 million and cost of revenues was $0.1 million vs. $0.6 million. The revenue and cost of research increase was due to several research projects winding down or on hold as a result of a laboratory relocation at a major contract research organization;
➢ Research and development expenses totaled $0.7 million, down 4%. The decrease was attributable to the reduction in expenses related to the DYAI-100 clinical trial;
➢ General and administrative expenses were $1.3 million, down 7% from $1.4 million. Reduced business development and investor relations expenses, insurance expenses and legal expenses were partially offset by other miscellaneous increases;
➢ Interest income increased to $109,000 from $30,000 due to higher yields on securities held;
➢ Other income was $106,000 compared to $54,000 and reflected higher yields on the company’s cash, equivalents and investment securities;
➢ Net loss amounted to ($1.6) million compared to ($1.8) million. On a per share basis, net loss was ($0.06) vs. ($0.06).
As of September 30, 2023, cash, equivalents and short-term securities totaled $8.2 million compared to $12.6 million at the end of 2022. 3Q:23 cash burn was ($1.2) million compared with ($1.8) million in 3Q:22. Financing cash flows were zero. Dyadic holds no debt on its balance sheet. Cash burn guidance for 2023 is reduced to less than $6 million.
Dyadic continued to sign deals during the third quarter, illustrating the extensive applicability of the C1 and Dapibus platforms in a variety of biologic molecules. One agreement was made with the Danish company INZYMES ApS for food products and another with the French bYoRNA SAS to produce cost-effective messenger RNA (mRNA). Both partners are exposed to multi-billion-dollar markets that can benefit from a more precise and efficient expression system. Several other arrangements were announced for the first time in the third quarter press release that align with Dyadic’s shift toward products more than platform. The first of these fully funded collaborations is development of an enzyme for dispersion and absorption of injected drugs to reduce tissue damage. Another is a development commercialization agreement with a multinational pharmaceutical company to generate multiple C1 cell lines to produce monoclonal antibodies targeting infectious diseases. The last is development of a C1 cell line for a monoclonal antibody against Filoviruses such as Ebola and Marburg. We include these programs in our updated research collaboration summary at the end of the report.
Other news of note includes Dyadic’s participation in a Department of Defense (DoD) project to develop a self-assembling vaccine and the addition of Doug Pace as Executive Vice President of Business Development. Dyadic’s management team is also busy communicating with scientific and investor stakeholders in a variety of conferences around the globe.
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