Dyadic reports revenue increase in 2013 financial results

By Erin Voegele | March 20, 2014

Dyadic International Inc. has released its 2013 financial results, reporting total revenue of $17.1 million, a 10 percent increase over 2012 revenue of $15.6 million. Net product related revenue increased by 25 percent, reaching $9.8 million. Gross profit remained relatively flat at approximately $8 million.

“We continue to lay the foundation for our continued success including increasing available capital, signing a broad license agreement with BASF, joining the OTCQX U.S. Premier marketplace and expanding our state-of-the-art Dutch research center. Our strategic objectives have always been to unlock the enormous potential of our technologies, including the C1 platform. We think we are remarkably well positioned to continue to grow and exploit new opportunities in 2014 and beyond,” said Mark Emalfarb, Dyadic president and CEO, in a statement.

During a call to discuss the company’s 2013 results, Emalfarb spoke about progress with Dyadic’s C1 technology platform, which has applications in the cellulosic biofuel and biobased chemical industries. In May 2013, Dyadic entered into an agreement with BASF. Under the terms of the agreement, BASF can use the C1 platform to develop, produce, distribute and sell industrial enzymes in certain fields for a variety of applications.

“We are excited that BASF has chosen our C1 technolgoy platform to help grow its various business units,” Emalfarb said, noting the company believes BASF will spend significant resources to continue to make growth of the platform more productive. While the first new C1-based BASF products are several years away, Emalfarb said Dyadic is receiving and expects to continue to receive funded research and development projects and potential milestone payments from BASF in 2014 and beyond.

Earlier this month, Dyadic announced it has been approved for trading on the OTCQX marketplace. Emalfarb noted that the company’s admission to the over the counter (OTC) trading platform is just a next step to dyadic once again becoming an U.S. Securities and Exchange Commission reporting company trading on a registered national exchange.

Emalfarb also discussed Abengoa’s cellulosic ethanol project under development in Kansas. The ethanol producer has been a Dyadic licensee since 2009. “The construction of this first-of-the-kind commercial-scale biorefinery will allow [Abengoa] to utilize their proprietary technology, including enzyme developed and manufactured using Dyadic C1 technology to produce renewable liquid biofuels from the earth’s most abundant organic feedstock sources—plant fiber or cellulosic biomass,” he said. 

Emalfarb also noted that his company feels good about the quality and position of its CMAX product line and its biofuel partners. “We are in various stages of active dialog with a number of potential advanced biofuel producers around the world,” he said. “While the renewable fuel standard is in question in the U.S., many companies are pushing forward domestically.”