Dyadic(US:DYAI)2021-08-11 16:00Financial Performance - Total revenue for Q2 2021 was $937,092, an increase of 78.9% compared to $524,271 in Q2 2020[16] - Net loss for Q2 2021 was $(3,846,174), compared to a net loss of $(2,651,422) in Q2 2020, representing a 45.2% increase in losses[16] - Basic and diluted net loss per common share for Q2 2021 was $(0.14), compared to $(0.10) in Q2 2020[16] - Total costs and expenses for Q2 2021 were $4,804,166, an increase of 44.6% from $3,322,280 in Q2 2020[16] - The net loss for the six months ended June 30, 2021, was $7,141,123, compared to a net loss of $4,865,561 for the same period in 2020, representing an increase of approximately 46.7%[21] - Total revenue for the first half of 2021 reached $1,397,612, up from $839,643 in the same period of 2020, reflecting a growth of 66.5%[180] Assets and Liabilities - Total current assets decreased to $26,156,373 as of June 30, 2021, down 12.5% from $29,781,498 as of December 31, 2020[14] - Total liabilities increased to $3,288,485 as of June 30, 2021, up 102.3% from $1,625,871 as of December 31, 2020[14] - Total stockholders' equity decreased to $23,158,769 as of June 30, 2021, down 18.5% from $28,446,561 as of December 31, 2020[14] - Cash and cash equivalents decreased to $14,018,826 as of June 30, 2021, down 32.3% from $20,637,045 as of December 31, 2020[14] - Accounts receivable as of June 30, 2021, totaled $291,435, a slight decrease from $294,199 on December 31, 2020[47] Research and Development - Research and development expenses for Q2 2021 were $2,209,242, an increase of 97.7% from $1,116,163 in Q2 2020[16] - Research and development costs for the three months ended June 30, 2021, were $2,209,242, compared to $1,116,163 for the same period in 2020, reflecting a 97.8% increase[65] - Research and development expenses increased significantly to $2,273,607 for the six months ended June 30, 2021, compared to $904,572 for the same period in 2020[49] - The company is involved in multiple funded research collaborations with pharmaceutical companies to leverage its C1 technology for developing innovative vaccines and drugs, including a proprietary COVID-19 vaccine candidate[25] - The C1 technology platform has demonstrated the ability to produce antigens at yields approximately 300 times greater than traditional methods, enhancing vaccine development efficiency[136] Customer and Revenue Growth - The company generated revenue from 13 customers in the six months ended June 30, 2021, compared to 10 customers in the same period in 2020, reflecting a growth in customer base[36] - For the six months ended June 30, 2021, approximately $1,121,000 or 80.2% of revenue was generated from customers outside the United States, compared to $441,000 or 52.5% in the same period in 2020, showing a significant increase in international revenue contribution[37] - The number of ongoing research collaborations increased to eleven in Q2 2021 from nine in Q2 2020, contributing to revenue growth[180] Cash Flow and Financing - The company reported net cash used in operating activities of $4,307,783 for the six months ended June 30, 2021, compared to $3,903,929 for the same period in 2020, indicating an increase in cash outflow from operations[21] - The company had net cash provided by financing activities of $986,140 for the six months ended June 30, 2021, compared to $230,743 in the same period in 2020, representing an increase of approximately 327.5%[21] - Net cash used in operating activities for the first half of 2021 was approximately $4.3 million, primarily due to a net loss of approximately $7.1 million[197] - Net cash used in investing activities for the first half of 2021 was approximately $3.3 million, compared to a net cash provided by investing activities of $10.6 million in the same period of 2020[200] Agreements and Collaborations - The company entered into a technology transfer and licensing agreement with the Rubic Consortium to license its C1 platform technology for COVID-19 vaccine development[128] - On August 10, 2021, the Company entered into a License Agreement with Sorrento Therapeutics, granting exclusive rights for the use of Dyadic's C1 technology in multiple regions, including North and South America, Europe, and major Asian countries[129] - Sorrento will pay an upfront license fee of $10 million, consisting of $5 million in cash and $5 million in shares, along with potential milestone payments of up to $33 million and ongoing royalties from net sales[130] - The Company is advancing its DYAI-100 COVID-19 vaccine candidate towards a Phase 1 clinical study, with preliminary safety results expected by October 2021[141] Investment and Financial Position - As of June 30, 2021, the company's total cash, cash equivalents, and investments amounted to $25,589,160, with cash and cash equivalents at $14,018,826[81] - The company’s investment policy requires investment securities to be investment grade and held to maturity, focusing on maintaining liquidity while maximizing yield[81] - The company has not made any sales under the Open Market Sale Agreement with Jefferies, which allows for an aggregate offering price of up to $50 million[192] - The company has not recognized any milestone payment revenue from sublicensing arrangements to date[59] Risks and Uncertainties - The company is actively monitoring the impact of COVID-19 on its operations and financial condition, with potential adverse effects still uncertain[28] - The impact of COVID-19 continues to create uncertainty regarding the Company's operations and research projects, with management actively monitoring the situation[145] - The company expects to continue incurring substantial operating losses despite potential revenue generation from research and development collaborations[191]