Dyadic International (DYAI) Q2 2024 earnings summary

Executive summary

• Focused on near-term licensing, product commercialization, and technology partnerships to drive multiple revenue streams and milestones over the next 24 months, with emphasis on alternative proteins, animal, and human health sectors.

• Entered strategic partnerships, including with Proliant Health & Biologicals for recombinant albumin and a top 10 global dairy company for non-animal alpha-lactalbumin, expected to generate recurring revenue and expand market reach.

• Advanced pipeline of non-pharmaceutical recombinant proteins and enzymes using C1 and Dapibus platforms, recognized for speed, productivity, and versatility.

• Provided C1-produced recombinant antigens for avian influenza vaccine development, with positive preclinical results for H5N1 candidate.

• Cash and investment-grade securities totaled $10.1 million as of June 30, 2024, up from $7.3 million at year-end 2023.

Financial highlights

• Q2 2024 revenue was $386,000, down from $837,000 year-over-year due to winding down of large research collaborations.

• Net loss for Q2 2024 was $2,045,000 ($0.07 per share), compared to $2,153,000 ($0.07 per share) in Q2 2023; net loss for H1 2024 was $4.1 million.

• Cash and investment-grade securities were $10.1 million at June 30, 2024, with $4.0 million in investment grade securities.

• R&D expenses decreased to $516,000 from $918,000 year-over-year; G&A expenses increased to $1,608,000 from $1,403,000.

• Issued $6 million in 8% senior secured convertible promissory notes in March 2024; $400,000 converted to common shares in Q2.

Outlook and guidance

• Anticipates recurring revenue from Proliant partnership in 2025 and additional milestone payments in late 2024, with commercial launch of recombinant human serum albumin in H1 2025.

• Plans to commercialize new products in alternative protein and bioindustrial enzyme markets within 12 months.

• Focused on expanding non-animal dairy and cell culture media product pipelines, with new agreements and sampling underway.

• Management expects continued losses and negative cash flows as development and commercialization efforts expand.

• Existing cash, proceeds from convertible notes, and investment securities are expected to fund operations for at least the next 12 months.