Dyadic International Inc 10-Q for FY2021 Q1

Dyadic International Inc (DYAI)

10-Q 2021-05-13 For: 2021-03-31

Added on April 07, 2026

About this 10-Q

Dyadic International Inc filed this 10-Q on May 13, 2021, covering the quarter ended March 31, 2021 (FY2021 Q1).

Headline figures

Quarter ended March 31, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $460.52K; up 46.0% from $315.37K a year earlier
Net loss: $3.29M; compared with a net loss of $2.21M a year earlier

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☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2021

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Delaware		45-0486747
State or Other Jurisdiction of Incorporation or Organization		I.R.S. Employer Identification No.

140 Intracoastal Pointe Drive, Suite 404
Jupiter, Florida		33477
Address of Principal Executive Offices		Zip Code

Large accelerated filer ☐						Accelerated filer ☐

Non-accelerated filer ☒						Smaller reporting company ☒

						Emerging growth company ☐

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common Stock, par value $0.001 per share			DYAI			The NASDAQ Stock Market LLC

	Registrant’s Telephone Number, Including Area Code
		N/A
	Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report

		Page
PART I FINANCIAL INFORMATION
Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	29
Item 4.	Controls and Procedures	29

PART II OTHER INFORMATION
Item 1.	Legal Proceedings	29
Item 1A.	Risk Factors	29
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	30
Item 3.	Defaults Upon Senior Securities	30
Item 4.	Mine Safety Disclosures	30
Item 5.	Other Information	30
Item 6.	Exhibits	30
Signatures		31

	*March 31, 2021*			*December 31, 2020*
	(Unaudited)			(Audited)
Assets
Current assets:
Cash and cash equivalents	$	13,055,558		$	20,637,045
Short-term investment securities		14,177,441			8,457,452
Interest receivable		157,201			112,247
Accounts receivable		384,963			294,199
Prepaid expenses and other current assets		216,189			280,555
Total current assets		27,991,352			29,781,498

Non-current assets:
Investment in Alphazyme		284,709			284,709
Other assets		6,151			6,225
Total assets	$	28,282,212		$	30,072,432

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	1,473,813		$	1,013,099
Accrued expenses		277,668			489,756
Deferred research and development obligations		842,248			123,016
Total current liabilities		2,593,729			1,625,871

Commitments and contingencies (Note 4)

Stockholders’ equity:
Preferred stock, $.0001 par value:
Authorized shares - 5,000,000; none issued and outstanding		—			—
Common stock, $.001 par value:
Authorized shares - 100,000,000; issued shares - 39,807,659 and 39,747,659, outstanding shares - 27,554,157 and 27,494,157 as of March 31, 2021 and December 31, 2020, respectively		39,808			39,748
Additional paid-in capital		98,549,890			98,013,079
Treasury stock, shares held at cost - 12,253,502		(18,929,915	)		(18,929,915	)
Accumulated deficit		(53,971,300	)		(50,676,351	)
Total stockholders’ equity		25,688,483			28,446,561
Total liabilities and stockholders’ equity	$	28,282,212		$	30,072,432

	*Three Months Ended March 31,*
	*2021*			*2020*
Revenues:
Research and development revenue	$	460,520		$	315,372

Costs and expenses:
Costs of research and development revenue		390,762			278,182
Research and development		1,808,098			755,453
General and administrative		1,554,007			1,653,392
Foreign currency exchange loss (gain), net		28,272			10,867
Total costs and expenses		3,781,139			2,697,894

Loss from operations		(3,320,619	)		(2,382,522	)

Interest income		25,670			168,383

Net loss	$	(3,294,949	)	$	(2,214,139	)

Basic and diluted net loss per common share	$	(0.12	)	$	(0.08	)

Basic and diluted weighted-average common shares outstanding		27,533,268			27,452,490

	Common Stock				Treasury Stock						Additional		Accumulated
	Shares		Amount		Shares			Amount			Paid-in Capital		Deficit			Total

Balance at December 31, 2020		39,747,659	$	39,748		(12,253,502	)	$	(18,929,915	)	$	98,013,079	$	(50,676,351	)	$	28,446,561

Stock-based compensation		—		—		—			—			421,071		—			421,071

Exercise of stock options		60,000		60		—			—			115,740		—			115,800

Net loss		—		—		—			—			—		(3,294,949	)		(3,294,949	)

Balance at March 31, 2021		39,807,659	$	39,808		(12,253,502	)	$	(18,929,915	)	$	98,549,890	$	(53,971,300	)	$	25,688,483

	•	Level 1 – Quoted prices in active markets for identical assets or liabilities.
	•	Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
	•	Level 3 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.

	*March 31, 2021 (Unaudited)*
				*Gross*		*Gross*
	*Level*			*Unrealized*		*Unrealized*
	*(1)*	*Fair Value*		*Holding Gains*		*Holding Losses*			*Adjusted Cost*
Cash and Cash Equivalents
Cash		$	1,217,419	$	—	$	—		$	1,217,419
Money Market Funds	1		11,838,139		—		—			11,838,139
Subtotal			13,055,558		—		—			13,055,558
Short-Term Investment Securities ⁽²⁾
Corporate Bonds ⁽³⁾	2		14,161,252		1,658		(17,847	)		14,177,441
Total		$	27,216,810	$	1,658	$	(17,847	)	$	27,232,999

	*December 31, 2020 (Audited)*
				*Gross*		*Gross*
	*Level*			*Unrealized*		*Unrealized*
	*(1)*	*Fair Value*		*Holding Gains*		*Holding Losses*			*Adjusted Cost*
Cash and Cash Equivalents
Cash		$	149,015	$	—	$	—		$	149,015
Money Market Funds	1		20,488,030		—		—			20,488,030
Subtotal			20,637,045		—		—			20,637,045
Short-Term Investment Securities ⁽²⁾
Corporate Bonds ⁽³⁾	2		8,473,461		22,473		(6,463	)		8,457,451
Total		$	29,110,506	$	22,473	$	(6,463	)	$	29,094,496

Risk-Free interest rate			0.13%-0.55%
Expected dividend yield			—%
Expected stock price volatility			54.52%-56.07%
Expected life of options (in years)			2.00-6.25

						*Weighted-Average*
				*Weighted-Average*		*Remaining Contractual*		*Aggregate Intrinsic*
	*Shares*			*Exercise Price*		*Term (Years)*		*Value*
Outstanding at December 31, 2020		4,638,390		$	2.44		5.64	$	13,701,610
Granted (1)		745,825			5.25
Exercised (2)		(60,000	)		1.93
Expired		—			—
Canceled		—			—
Outstanding at March 31, 2021		5,324,215		$	2.84		6.03	$	14,209,431

Exercisable at March 31, 2021		4,016,141		$	2.28		5.09	$	12,927,908

	•	Annual share-based compensation awards on January 4, 2021, including: (a) 417,500 stock options with an exercise price of $5.16 per share granted to executives and key personnel, upon one year anniversary, or vesting annually in equal installments over four years, (b) 227,500 stock options with an exercise price of $5.16 per share granted to members of the Board of Directors, vesting upon one year anniversary, (c) 23,325 stock options with an exercise price of $5.16 per share granted to employees, vesting annually in equal installments over four years and (d) 5,000 stock options with an exercise price of $5.16 per share granted to a consultant, vesting upon one year anniversary.
	•	One-time award on January 8, 2021, 35,000 stock options with an exercise price of $5.50 per share granted to a new member of the Board of Directors, vesting in one year from the grant date.
	•	One-time award on January 21, 2021, 7,500 stock options with an exercise price of $5.65 per share granted to a consultant, vesting in one year from the grant date.
	•	One-time award on March 22, 2021, 30,000 stock options with an exercise price of $6.87 per share granted to a consultant, vesting in one year from the grant date.

			*Three Months Ended March 31, 2021 (Unaudited)*
	*Common Stock*		*Treasury Stock*			*Additional Paid-In Capital*		*Accumulated Deficit*			*Total*
January 1, 2021	$	39,748	$	(18,929,915	)	$	98,013,079	$	(50,676,351	)	$	28,446,561
Stock-based compensation		—		—			421,071		—			421,071
Stock issued		60		—			115,740		—			115,800
Net loss		—		—			—		(3,294,949	)		(3,294,949	)
March 31, 2021	$	39,808	$	(18,929,915	)	$	98,549,890	$	(53,971,300	)	$	25,688,483

			*Three Months Ended March 31, 2020 (Unaudited)*
	*Common Stock*		*Treasury Stock*			*Additional Paid-In Capital*		*Accumulated Deficit*			*Total*
January 1, 2020	$	39,613	$	(18,929,915	)	$	96,105,851	$	(41,351,078	)	$	35,864,471
Stock-based compensation		—		—			426,939		—			426,939
Stock issued		100		—			174,900		—			175,000
Net loss		—		—			—		(2,214,139	)		(2,214,139	)
March 31, 2020	$	39,713	$	(18,929,915	)	$	96,707,690	$	(43,565,217	)	$	34,252,271

	Three Months Ended March 31,
	2021		2020
Revenue	$	460,520	$	315,372
Cost of research and development revenue		390,762		278,182

			Incorporated by Reference
Exhibit No.	Description of Exhibit	Form	Original No.	Date Filed	Filed Herewith
1.1	Open Market Sale Agreement by and between the Company and Jeffries LLC, dated August 13, 2020	S-3	1.2	August 13, 2020
10.1	Dyadic International, Inc. 2021 Equity Inventive Award Plan	DEF14A	10.1	April 27, 2021
31.1	Certification of Principal Executive Officer of Dyadic Pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002				x
31.2	Certification of Principal Financial Officer of Dyadic Pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002				x
32.1	Certification of Principal Executive Officer of Dyadic Pursuant to 18 U.S.C Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002				x
32.2	Certification of Principal Financial Officer of Dyadic Pursuant to18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002				x

Exhibit No.	Description
101.INS	Inline XBRL Instance Document
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Labels Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (embedded within the Inline XBRL and contained in Exhibit 101)


	DYADIC INTERNATIONAL, INC.

May 13, 2021	By:	/s/ Mark A. Emalfarb
		Mark A. Emalfarb
		President and Chief Executive Officer
		(Principal Executive Officer)


May 13, 2021	By:	/s/ Ping W. Rawson
		Ping W. Rawson
		Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)

	1.	I have reviewed this quarterly report on Form 10-Q of Dyadic International Inc.;

	2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

	3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

	4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

	5.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

	a.	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b.	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c.	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	d.	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

	a.	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	a.	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 13, 2021
By:	/s/ Mark A. Emalfarb

Name:	Mark A. Emalfarb
Title:	Chief Executive Officer