Dyadic International Inc Q4 FY2021 Earnings Call

Good evening, and welcome to Dyadic International’s 2021 Year-End Financial Results Conference Call. Currently all participants are in a listen-only mode. Following management’s prepared remarks, there will be a brief question-and-answer session. As a reminder, this conference call is being recorded today, March 29, 2022. I’d now like to turn the conference over to Ms. Ping Rawson, Dyadic’s Chief Financial Officer. Please go ahead.

Thank you. Good evening, and welcome everyone to Dyadic International’s 2021 year-end conference call. I hope you’ve had the opportunity to review Dyadic’s press release announcing the financial results for the year ended December 31, 2021 and the recent company highlights. You may access our press release and Form 10-K under the Investor section of the Company’s website at dyadic.com. On today’s call, our President and CEO, Mark Emalfarb will give a review of our year ended 2021 business and recent corporate highlights, including a brief summary of our research and business development efforts. I will follow with a review of our financial results in more detail. We will then hold a brief Q&A session. Our senior management team, Joe Hazelton, Matthew Jones, and Ronen Tchelet will join Mark and I for the Q&A. At this time, I'd like to inform you that certain commentary made in this conference call may be considered forward-looking statements, which involve risks and uncertainties and other factors that could cause Dyadic’s actual results, performance, scientific or otherwise, or achievements to be materially different from those expressed or implied by these forward-looking statements. Dyadic expressly disclaims any duty to provide updates to its forward-looking statements, whether as a result of new information, future events, or otherwise. Participants are directed to the risk factors set forth in Dyadic’s reports filed with the SEC. It is now my pleasure to pass the call to our CEO, Mark Emalfarb. Mark?

Thank you, Ping. Good evening, and thank you for joining us today. Before we begin, I just wanted to share the team’s optimism for what is in store for Dyadic in the year ahead and just how proud we are of Dyadic’s scientific and business accomplishments in 2021. But we’re still early in the days of seeing the full potential that synthetic biology holds for the world, and we are excited to be a part of this future. As we look forward to leveraging our proprietary and patented C1 protein production platform and our other technologies to become one of the leading platforms for synthetic biology production. The synthetic biology market is categorized into several segments: medical applications, industrial applications, food and agriculture, and environmental applications. In 2020, the medical applications segment accounted for the largest share of the synthetic biology market, which remains our primary focus for C1’s commercial goals in protein manufacturing. To this end, we are proud to share not only this year’s progress with you but also our 2022 development goals during this first investor update call of the new calendar year. As you know, it is our company’s mission to improve the way we feed, fuel, and heal the world. This year sets new operating milestones for us to hit while staying true to that mission. While I hope you take away from today’s call a renewed focus Dyadic has on our mission and our ability to advance it to the next level. We expanded and enhanced our leadership team with the appointment of Joe Hazelton as Chief Business Officer, whose role supports the global commercialization of the company, new and existing business initiatives, including corporate strategy, business and corporate development, and licensing. We have positioned ourselves better to tackle the influx of global partnering requests and interests related to the company’s experience and knowledge, coupled with the advancement of our C1 platform and other technologies. Additionally, after several years of internal research and development, we have published preclinical proof of concept papers across the industries we are targeting today, and we believe we are entering a new period of potential growth, highlighted by advanced testing and development of our C1 protein production platform and other technologies in industries that we are using to penetrate some of the largest commercial enterprises in these industries, whether in human or animal health, or food manufacturing and our industrial endeavors. As we focus our commercialization and development efforts on these core verticals of human health, animal health, and other biomolecules, examples of major accomplishments advancing the commercial viability of our C1 protein production platform and other technologies have included partnerships with Phibro Animal Health, Janssen, and a multitude of organizations around the world that have been instrumental in fully funding a number of our non-COVID-19 biopharmaceutical programs as well as helping us to advance our proprietary DYAI-100 COVID-19 vaccine candidate. We are pleased to note that manuscripts relating to antigens produced from C1 cells showing safety and efficacy in animal models against influenza and SARS-CoV-2 were published in three peer-reviewed scientific journals, including Vaccines. We have successfully completed the toxicology study of our DYAI-100 COVID-19 vaccine candidate. A manuscript showing safety and persistence has been peer-reviewed and is awaiting publication in the scientific journal Toxicologic Pathology. These are exciting preclinical studies for us that, among other benefits, demonstrate safety and efficacy in various biochemical structures and properties of the SARS-CoV-2 RBD antigen produced from human health. Furthermore, these publications also demonstrated a novel method to deliver the C1 SARS-CoV-2 RBD antigen, both subcutaneously and intranasally and separately, the utility of the C1 cell protein platform in expediting production of seasonal and pandemic influenza vaccines. We have refocused and improved our active outbound awareness regarding the steady advancement of our knowledge across over 20 years of proven industrial manufacturing, which we have begun to leverage as we continue to pivot into biopharmaceutical manufacturing of vaccines, antibodies, and other therapeutic proteins. We firmly believe that these efforts have the potential to revolutionize medicinal biomanufacturing. We have already begun to conduct funded research in areas of agriculture, food production, and metabolic engineering. We remain focused on the application of our C1 protein production platform to address health inequity in middle and lower-income countries. We rely on outside sources for vaccine and drug production that lack the infrastructure and resources to store and distribute vaccines which require advanced cold storage techniques. While we continue to move our DYAI-100 COVID-19 vaccine candidate into the clinic, we want to emphasize that interest in the C1 platform is occurring across numerous other applications, in addition to vaccines and therapeutics. We believe we will continue to deliver in this arena for years, not only in the U.S. but through our collaboration and relationships in Africa, India, Asia, Europe, and the Americas. As we move these efforts forward, I want to reiterate that Dyadic, through these partnerships, continues to maintain our own IP as we structured our partnerships to include upfront payments, development milestones, and future commercial-based royalty or other forms of earn-outs. With this said, let’s move ahead in the call to quickly cover some of our recent company highlights, which we have announced in recent press releases. A major win is the announcement of Dyadic’s agreement with Janssen Biotech, facilitated by J&J Innovation. We already received Janssen’s upfront payment of $500,000 for their non-exclusive rights to utilize the C1 cell protein production platform to develop C1 production cell lines for the manufacturing of Janssen’s therapeutic protein candidates against several biologic targets. As awareness continues to expand around C1’s ability to revolutionize commercial protein expression, we believe we’ll continue to see similar agreements to come as we ramp up our team’s efforts in new business development, which we expect will, in turn, trigger future upfront payments, milestones, royalties, or other forms of payments. Additionally, for this particular agreement with Janssen, we will be provided R&D funding of up to €1.6 million to develop and assess C1 production cell lines for its product candidates. We recently announced that we have broadened our relationship with Phibro Animal Health, a leading global diversified animal health and mineral nutrition company. We’ve entered into an exclusive license agreement to produce a single specific targeted antigen for development and commercialization of a poultry vaccine. The agreement follows a successful proof of concept development work, including animal trials previously completed by the two companies. The parties expect to continue working on developing additional animal vaccine candidates to be produced from Dyadic C1 cells. In December, we announced we received a National Institute of Manufacturing of Biologics (NIIMBL) coronavirus grant under the White House American Rescue Plan of up to $690,000 to engineer two C1 derived antibodies. The NIIMBL project is off to a good start, and this grant is intended to benchmark the speed of the C1 manufacturing platform and the advantage we will have compared to current state-of-the-art methods, which could lead to a rapid ability to produce medical countermeasures and vaccines in response to future pandemics. Earlier this month, the company announced that, due to a disagreement between the parties concerning the timing, terms, and conditions of the previously announced term sheet with Sorrento Therapeutics for the entry into the license agreement, the parties have mutually agreed to terminate the term sheet effective March 17, 2022. We also sent Luina Bio a termination notice letter related to our license agreement with Luina Bio Novovet in February 2022 as they have not been able to raise capital to continue the program. As our partners' needs in business focus have changed over time, we view these terminations as an ongoing part of our business. However, both Janssen and Phibro are great examples of how our years of hard work in the research and development of C1, as well as renewed business development efforts on multiple fronts, are bearing fruit. For those who followed the company over the last several years, all indications have marked a certain maturity and a development lifecycle as we move our company’s technology from proof of concept to partnering and collaboration towards commercialization and feasibility studies to first-in-human trials. Moving on to certain of Dyadic’s ongoing global collaborations, we entered into a technology transfer and license agreement with South Africa’s Rubic Consortium, who have already begun working to develop end-to-end solutions for vaccine discovery, development, and manufacturing for the African market. This arrangement includes a C1 COVID-19 vaccine technology transfer and licensing agreement. A potential funding pathway for a C1 manufactured COVID-19 vaccine to progress to Phase 2 and 3 clinical trials has been established to co-develop research to develop multiple other product vaccines in addition to DYAI-100 with the intention to reduce Africa's dependence on foreign vaccine suppliers. In coordination with CR20, Parexel, and Rubic, we are preparing for a submission of a clinical trial application (CTA) for our DYAI-100 vaccine candidate to the South African Health Products Regulatory Authority, or SAPHRA. We’ve identified, which clinical research, a diminishing of the Wits Health Consortium (Pty) Limited, as a potential site for carrying out the DYAI-100 Phase 1 clinical trial to validate that C1-produced proteins are safe in humans and further accelerate the global C1 platform adoption. This clinical trial will also serve as the proof of concept for other next-generation variant COVID-19 vaccine candidates. It’s important to note that Wits has experience conducting COVID-19 vaccine clinical trials in South Africa for big pharma. While many on the call may be familiar with the FDA’s clinical testing phases and drug approval process, we wanted to take some time to discuss the process for South Africa. It’s important to note the importance of partnering with the Consortium in South Africa, Rubic and Wits, not only from a regulatory partnering perspective but also from a trial design perspective, especially amidst the evolving landscape of COVID-19, including the disease infection and transmission rates. The shift now has been away from treating COVID-19 as a pandemic, and rather focusing on controlling and managing infection and transmission rates as well as symptom severity in the absence of the ability to control how COVID-19 variants evolve. This is the primary reason why global regulatory guidelines on COVID-19 vaccine development are still evolving. Our partnership with Wits and the Consortium in South Africa gives us unprecedented access to leading institutions and R&D scientists, who are at the very front lines of testing and developing current COVID-19 treatments, including Pfizer’s current COVID-19 vaccine, AstraZeneca, and others that are in the marketplace in South Africa today. Current data suggests that many of the so-called first-generation vaccines remain highly effective against several variants of concern. However, the Omicron variant and sub-variants pose a potential exception, particularly against severe disease. However, it is possible that new variants will emerge and may overcome the current vaccines' induced protection to some degree, with the emergence of the Omicron variant only highlighting this risk. The C1 cell protein production platform can effectively support the global immunization strategies needed against emerging SARS-CoV-2 variants of concern. The company can rapidly insert receptor binding domain variant genes into the same C1 cell line with the same genotype in approximately 60 days. Thus far, in addition to the original Wuhan SARS-CoV-2, the following variants have been successfully produced from C1 cells: alpha (UK), beta (South Africa), gamma (Brazil), delta (India), and we already have the Omicron B.1.1.529. One of Dyadic's commercial goals is to demonstrate the effective capability to rapidly produce different combinations of multivalent COVID-19 vaccines, which could protect against several variants of concern at once. We continue to work with Syngene in India, a major global contract development and manufacturing organization with a headcount of over 5,000 employees. Syngene International is an integrated research, development, and manufacturing company providing scientific services, conducting early stage research, preclinical and clinical trials, drug substance and drug product manufacturing and development, biologics manufacturing, and other services. The company serves not only the pharmaceutical industry but the biotechnology industry, nutrition, animal health, consumer goods, and special chemical industries. Our discussions with Syngene are centered on advancing a commercial framework in planning around the use of C1 cell protein production platform and our other technologies as an in-house option to traditional CHO-cell line manufacturing offerings for manufacturing vaccines, antibodies, and other therapeutic proteins. In 2020, the company entered into a non-exclusive technology usage agreement with Epygen Biotech of India, who plans to conduct clinical trials in India using Dyadic’s C1 cell protein production platform to produce their COVID-19 vaccine. Epygen recently procured the approval for funding from the government of India to move forward with vaccine production technology across early stage Phase 1 and Phase 2 human clinical trials. For Epygen to receive government funding, it must contribute approximately 25% of the funding from its own sources. During 2021, the company also expanded its influenza vaccine collaboration with the University of Oslo. Scientific results included having mice vaccinated with C1-produced MHC II hemagglutinin California 7/2009, combined with an adjuvant AS03, challenged with a lethal dose of 5LB50 of the homologous influenza A/H1N1, which showed no clinical signs, no weight loss, and full protection in the mice. Other mice trials are ongoing as we speak, and others are scheduled with C1-produced antigens for influenza and SARS-CoV-2 with Oslo University. As part of inbound inquiries, we have highlighted the launch of our biomolecule development to demonstrate that our industrially proven C1 cells can be engineered to manufacture therapeutically viable and commercially useful cannabis compounds, including cannabidiol or CBD and its precursors, using synthetic biology. As acceptance and therapeutic uses for cannabinoids continue, we’re demonstrating C1’s potential to manufacture pure synthetic cannabinoids for commercial use potentially cheaper and more effectively as compared to conventional methods using hemp and the marijuana plant cannabis sativa. This is just another example of how we are starting to apply synthetic biology to engineer C1 cells to help improve and develop more efficient bio-processes for a number of potential applications. And with this, I’ll turn the call over to our CFO to run through our financials, Ping Rawson?

Thank you, Mark. In addition to the financial results, I'll be discussing now. You can find additional information in our Form 10-K, which we filed earlier today. Our cash, cash equivalents, and the current value of investment grade securities as of December 31, 2021, including accrued interest, were approximately $20.4 million compared to $29.2 million last year. Research and development revenue for the year-end December 31, 2021, increased to approximately $2.4 million compared to $1.6 million last year. At December 31, 2021, the company recorded the $500,000 upfront payments received from the collaboration and the license agreements with Janssen as deferred license revenue. Cost of R&D revenue for the year-end December 31, 2021, increased to approximately $1.9 million compared to $1.4 million last year. The increase in revenue and the cost of the R&D revenue was due to a number of larger research collaborations combined in 2021. R&D expenses for the year ended December 31, 2021, increased to approximately $8.4 million compared to $3.9 million last year. The increase primarily reflected the cost to manage and support preclinical and clinical development, as well as cGMP manufacturing costs as the company moves toward an anticipated Phase 1 clinical trial of the DYAI-100 COVID-19 vaccine candidate in the amount of approximately $5.1 million, offset by a decrease of $621,000 in other internal R&D costs. G&A expenses for the year ended December 31, 2021, increased to approximately $6.7 million compared to $6 million last year. The increase principally reflected increases in legal expenses, insurance premiums, and other outside services offset by reductions in business development and investor relations costs. Interest income for the year ended December 31, 2021, decreased to approximately $52,000 compared to $447,000 year-end. The decrease was primarily due to a decrease in interest rate and yield on the Company's investment grade securities, which are classified as held-to-maturity. For the year ended December 31, 2021, the Company also recorded a gain from the sale of investment in BDI in the amount of $1.6 million. The net loss for the year ended December 31, 2021, was approximately $13.1 million, or $0.47 per share, compared to a net loss of $9.3 million, or $0.34 per share last year. Our cash position remains strong for 2022. We expect our cash burn for 2022 to be in the range of $10 million to $11 million. With that, I will now ask the operator to begin our Q&A session. Dr. Ronen Tchelet, Joe Hazelton, and Matthew Jones will be joining Mark and me to answer your questions. Each caller will be allowed one question and one follow-up question to provide all callers an opportunity to participate. If time permits, the operator will allow additional questions from those who have already spoken.

Thank you. Our first question today is from John Vandermosten from Zacks. Your line is now live.

Hello, good evening. First question is on the animal health side of things. I know – we all know that that's a faster route to get – to get things approved. And I was wondering if you could remind us, Mark, just what is required to get something approved once it's – once the companies decide that they want to take it forward?

Well, I think what every company’s different, of course, but they would run the animal studies in the case of the Phibro policies vary. They'd already run two out of the maybe three animal studies that they would and obviously they saw the excellent results, which is why they entered into a license agreement. So then they would have to file for regulatory approval and depending on the different countries, there are different timelines for that. Then through the regulatory approval process, they would have an approval, and hopefully, they would launch their product, in the case of Phibro, to a global animal health company, so that we have to register in a variety of countries all over the world. Depending on where they would first apply for that, they would leverage that application and regulatory filing in the other countries. So it's kind of rollout country-by-country all over the globe in our case as a global company.

Okay. And looking at the DYAI-100 Phase 1 trial; what's left there to get done before it can get – before it can get started? And I know you have it potentially going on in a number of different countries, which may have different timelines there, but what do you see on that is that needs to get done, I guess for the U.S. specifically?

Well, let me turn you over to Joe Hazelton, who is our Chief Business Officer, who's handling the regulatory process on that, so Joe.

Absolutely. So as you're aware, our initial CTA application is in South Africa. Pending approval and data from the Phase 1 study in South Africa, we would then turn to file an IND in the United States with that data. Again, that could take anywhere from six months to a year or two to get that filed and pushed through and move on to our end to Phase 2 meeting pending a successful resolution with the FDA regarding our IND status. So that would be the option for us as we move from South Africa to the United States.

But we would also have the ability to go to different countries, which we probably would be doing even in advance to that. In addition to South Africa and potential other countries, our partners in South Africa, Rubic, would be handling the regulatory filings for the Phase 2, Phase 3 in their own countries on their own continent. Of course, in India, Epygen, as they move forward with the new grant they got from the Indian Government would obviously handle all the regulatory filings and approvals for their country.

Okay, great. And Joe, welcome aboard. Good to hear your voice.

Thank you. Thank you for the questions.

Thank you. Next question today is coming from Paul Rosenbaum from SWR Corporation. Your line is now live.

Thank you. For the size of your company and I applaud you for this, you've taken a very aggressive stand on many issues. And so my question to you is merely an observation, no criticism intended. It just seems to me from everything I've read and everything I've heard, you're probably 18 months away at best from commercialization. So please correct me if I'm wrong, but I'm just asking that question. I'm just curious?

Yes. So mostly commercialization is not coming from Dyadic; it's coming from potentially Janssen and Phibro or other collaborators. It's their products that we're getting paid fully funded R&D with a margin on top of that to develop those products and candidates for them. Then they'll be picking up the costs and expenses of moving those forward. The goal here is to do what we did in the industrial biotech sector, where we raised over $30 million in upfront access fees, the four milestones and commercialization. In that particular case, we had Abengoa Bioenergy when we got $15.5 million in income from just biofuels in the industrial space, there was $6 million upfront from BASF, $2 million in R&D funding, and a $1 million mile. I think it was only between $8 million and $9 million that came from that. We expect this year to be able to start bringing in some of those upfront access fees, where we bring in the money and the cash to reduce the burn. In the industrial side, some of those years, we had no burn at all, and we got a big payment in. So that's the way we're moving forward to try to monetize the businesses, have them prove out the technology in certain cases, including the DYAI-100, along with Nivolumab, which is a biobetter Opdivo we are developing, and a cannabinoid technology, and another primary metabolite technology that we're looking to out-license to bring in revenue as well. But I appreciate your question.

No, and I do. And as a shareholder, I'm particularly interested when I talk about commercialization as a shareholder, as to the bottom line of the company. And when do you expect to find those revenues in the future? And I again, it was an observation, no criticism intended.

No, I don't take it as criticism. As I mentioned, we've already gone down this path on the industrial side. In that case, we also made enzymes and built them in 35 countries around the world. As we mentioned, we are now getting approached and studying to work towards our non-compete, which ended on 12/31/2020. So we're working now towards leveraging this technology back into the industrial world as well, because people are reaching out to us. I’d say, stay tuned for some of those potential opportunities to start moving towards commercialization and announcements.

Thank you. Our next question today is a follow up from John Vandermosten from Zacks. Your line is now live.

Hello there again? I had a question on the NIIMBL brand; does that $690,000 fully cover all the related work that you're going to do for the project? Or does Dyadic have to contribute some to that as well?

No, it's fully funded with a little margin for us.

Oh, great. And then has that work started yet? Or what is the timeline on that?

Yes, I think I mentioned today that it's already moving forward. It's actually very, very fast. We've already developed both of the different antibodies. The goal there was to see how fast we can create these antibodies and then see how far we can push the yield and productivity. So it's already moving; it's sorting into probably halfway through it, that’s my guess right now, somewhere in the neighborhood.

Oh great. And then those revenues I guess this one is for paying; are those going to be recognized as revenues over, I guess the 2022 year? Or how should we think about that? Are those counter or counter R&D or something like that? How should we look at that?

It will be part of the revenue because it's a grant, and we follow 606 in terms of revenue recognition. Most of them will be in 2022. It could be; it depends on how far they're going. It's a 10-month project, so certain things may fall into next year.

Okay, great. Thank you.

Thank you.

Thank you. Our next question is coming from Robert Smith from The Center of Performance Investing. Your line is now live.

Thanks. Thanks for taking my question. With the COVID-19 virus continuing to evolve, what is your approach in the development of the vaccine? I mean, how do you look at this?

Yes, so it's a good question, Robert. It's one that is constantly evolving, right? But yes, if you remember, our primary goal of doing DYAI-100 is to demonstrate safety, efficacy, and potency of proteins produced from the platform to open up the doors to big pharma, biotech, government agencies, and academia to speed adoption and use of the platform. That's our primary purpose. However, in addition to that, to your point, we think we might have an ideal booster vaccine because your body already recognizes the different variants. As I mentioned in this call, we've made not only the Wuhan but also the Alpha, Beta, Gamma, Delta, and Omicron, and we can do that very quickly. As I mentioned before, within 60 days of getting the team synthesized, we can have a stable cell line that becomes your master cell line for production and protein that can be used for animal studies and preclinical studies. To be honest, our conversations with the Paul-Ehrlich-Institut in Germany are about being able to pop out one gene and put a new one in. If we don't have to change the adjuvant, we don't need a new tox study. I think as I mentioned earlier in this call, we have a publication coming out which, if you're a toxicologist, I think you'll find that not only do we have excellent safety of the protein, but we have longer persistence than the other vaccines that they've looked at. Our goal here is not only for our own vaccines but also for people approaching us and talking to us about running other studies on their vaccines using C1. We've sort of opened the door up to the pandemic to how fast we can do things, at the yield at which we can produce things at a low cost, and the easy tech transfer. So, we're going to take a multivalent approach, which is our current thinking, where we would take maybe Wuhan, Delta, and Omicron as a blend. Stay tuned because we probably have, or will soon have animal data showing those results.

Thank you. And my follow-up concerns the Janssen Agreement. Can you give some color on what the succeeding steps in the Janssen program would look like and the particular timelines that they might have shared with you on their progress?

Well, first of all, the Janssen Agreement has opened up the doors and the eyes of many pharmaceutical companies to recognize that this technology may or may not be here when they want to use it. So between the first-in-human data, safety, efficacy, and protection with Janssen and the other deals we have going, I think it's an eye-opener for the industry in general, similar to what happened in the industrial side again with BASF, Shell, Abengoa, and then DuPont taking the non-exclusive license to the industrial biotech business. The Janssen deal itself is currently for a limited number of proteins. So the upfront cash payment and their potential seven-figure payment can go from an X number of molecules to Y with that first seven-figure payment. We're now working on two different proteins, one being an antibody, the other one we're not sharing, as that wasn't in our 8-K filing. So that's moving along. That has already started. Keep in mind, we've already done business in the past with Janssen. This is now coming back and focusing on the success they saw before on a couple of different molecules to bring this technology in-house. The goal here is to demonstrate success with what we're doing and for them to bring it in-house, to do the purification, and to conduct trials on their own, to use it to discover and develop a magnitude of products that they already have today. Those come along with low figure milestones, mid-figure, or, potentially, nine-figure payments per product on the back end. The timing is unknown at this point for when, if we’ll be receiving some of those milestone payments or commercial payments. Right now, we are receiving the royalty, right, the funded R&D, which is fully funded with a margin, and we already received the first $500,000.

Thank you. We reached the end of our question-and-answer session. I'd like to turn the floor back over for any further or closing comments.

I want to thank everyone for joining us on tonight's call. We hope you've come away with a greater sense of Dyadic’s many achievements in 2021. In addition to the renewed focus on broadening the commercial potential of the company’s C1 cell protein production platform and other technologies for animal and human health, including vaccines, food, and other industry protein manufacturing challenges, which C1 and other technologies can help address. Even though the company remains under CDA and is just not possible to disclose all the potential prospects we are currently gaining traction with, we also hope that you leave with a sense of the magnitude and breadth and scope of industries that we are working with, with each partnership and licensing agreement. We believe that we are one step closer to making a breakthrough that will someday hope to transform and revolutionize the biomanufacturing industries very broadly that we have targeted. With a conservative development approach and sensible licensing strategy, we are also well positioned to brace for and withstand the current pressures early stage companies in the healthcare space are facing today. Lastly, our strong IP protection and ownership will allow our shareholders to participate in the intrinsic value creation that Dyadic proposes. Thank you once again, and we look forward to keeping you updated on our progress along the way, and we'll see you on the next call.

Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.