NASDAQ:DYAI
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Dyadic International Inc. (NASDAQ:DYAI) announced first quarter 2025 results and listed a number of ongoing activities that should produce revenues later this year and in subsequent periods. Several grant awards have also been announced, including a Gates Foundation award and two Coalition for Epidemic Preparedness Innovation (CEPI) awards, which are also backed by the Gates Foundation. Dyadic offers a portfolio of assets in various stages of development and commercialization. Furthest along is human serum albumin with Proliant which should yield a milestone in the second quarter and first product sales in the third quarter. We also received a positive surprise with the announcement that Fermbox Bio would be filling a large purchase order for its Dapibus-derived EN3ZYME product. Dyadic will share in the income from the product sale. Dyadic has other initiatives also in motion for its transferrin, growth factors and human lactoferrin with partner engagement and sampling efforts either ongoing or soon to start. Additionally, the company is developing and validating prototypes for additional enzymes including RNAse Inhibitors and T7 RNA Polymerase with results expected by year end 2025.
First Quarter 2025 Operational & Financial Results
On May 14th, 2025, Dyadic published 1Q:25 operational and financial results in a press release, filed its Form 10-Q with the SEC and held a conference call with investors. Below are financial results for the three months ending March 31st, 2025, compared to the same prior year period:
- Revenues were $0.4 million, up 18% from $0.3 million. The increase comes from higher grant revenue related to the Gates Foundation and CEPI awards which were partially offset by lower research and development revenue;
- Cost of revenue totaled $0.3 million, more than doubling from $0.1 million;
- Research and development expense was flat at $0.5 million;
- General and administrative expenses were $1.6 million vs. $1.8 million, falling 11%. The change was attributable to lower business development and investor relations expenses, management incentives, accounting and legal expenses and insurance expense partially offset by increases in other items;
- Net loss amounted to ($2.0) million, flat with prior year levels. On a per share basis, net loss was ($0.07) also flat with the prior year given the minimal change in share count.
As of March 31st, 2025, cash, equivalents and short-term securities totaled $7.3 million compared to $9.3 million at the end of 2024. Cash burn during the first three months of 2025 was ($1.9) million compared with ($1.1) million for 1Q:24. There were no financing cash flows in the first quarter compared to a net $5.8 million in the same prior year period reflecting the net proceeds from the $6.0 million convertible note issuance.
EN3ZYME
Dyadic announced that its partner Fermbox Bio, with whom it had announced a deal back in May 2023, will fill a purchase order for a Dapibus-produced product called EN3ZYME. It is a cellulase enzyme cocktail designed for the cost-efficient conversion of pre-treated lignocellulosic biomass into fermentable sugars. It allows for conversion of pre-treated biomass to generate fermentable sugars that can be used as an energy source such as ethanol and cellulosic sugars. Feedstock appropriate to EN3ZYME includes bagasse, cotton stalks, straw, corn husks, cane residue and certain kinds of woods. Fermbox’ delivery of EN3ZYME to the customer is expected in the next few months.
Summary
Dyadic reports first quarter results on the cusp of product revenues from recombinant albumin sales and partner sales of an important cellulosic enzyme. Funding from grants is another important contributor to the business with three recent awards tied to the productivity and efficiency of the C1 expression system. Dyadic has other initiatives that can also generate product revenues such as DNAse1, which is the subject of ongoing discussions and could be another product to generate sales. Several products are on the verge of sampling efforts. Options abound for many of these proteins. Dyadic could either partner with a CDMO to sell the product itself or find a partner that would pay a royalty. We hope to see Dyadic continue to pick the low hanging fruit in the non-pharmaceutical protein market in the so it can evolve into a self-funding entity and pursue other recombinant markets in the animal health, food, and vaccine markets. In the meantime, Dyadic maintains a strong balance sheet, with minimal cash burn and potential increases to revenues as the year progresses. Our primary focus remains on Proliant, dairy enzymes, DNAse1 and now EN3ZYME.
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