Dyadic(US:DYAI)2025-05-14 22:00Financial Data and Key Metrics Changes - Total revenue for Q1 2025 increased to approximately $394,000 compared to $335,000 for the same period last year, driven by an increase in grants revenue of approximately $210,000 from the Gates Foundation and CEPI [18][19] - Research and development expenses for Q1 2025 decreased to $495,000 from $523,000 year-over-year, reflecting a decrease in ongoing internal research projects [19][20] - General and administrative expenses decreased by 10.8% to $1,596,000 compared to $1,789,000 for the same period last year [20] - Net loss for Q1 2025 was $2,028,000 or $0.07 per share, compared to $2,010,000 or $0.07 per share for the same period last year [20] Business Line Data and Key Metrics Changes - The company is focusing on commercializing high-value recombinant enzymes and proteins, particularly in life sciences, nutrition, and industrial applications [4][5] - The top commercialization priority lies in the cell culture media space, a market valued at over $6.1 billion globally, growing at a robust 13% compound annual growth rate [6][8] - Significant progress has been made in developing recombinant proteins and enzymes, including recombinant human serum albumin and fibroblast growth factors [7][9] Market Data and Key Metrics Changes - The animal-free dairy products market was valued at approximately $26.5 billion in 2023, with increasing partner interest in non-animal dairy proteins [10][11] - The nucleic acid tools market is projected to exceed $4 billion globally by 2028, with ongoing development of recombinant DNase-one and RNase-free enzymes [10][12] Company Strategy and Development Direction - The core growth strategy is centered on high-value life sciences, bioactives, ingredients, and industrial markets, aiming for sustainable growth in non-pharmaceutical sectors [4][5] - The company is committed to delivering sustainable value to shareholders and partners, with a growing pipeline and strong network of collaborators [5][17] - The company is also participating in various initiatives for pandemic preparedness, including collaborations with CEPI and the Gates Foundation [14][15] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of focusing on product commercialization rather than long-term platform development, aiming to generate revenue through ready-to-market products [38][61] - The company is optimistic about its position in the market, with commercial launches on the horizon and a robust pipeline backed by non-dilutive funding [63] Other Important Information - The company has cash and investment-grade securities of $7.4 million as of March 31, 2025, down from $9.4 million as of December 31, 2024 [20] - The company is exploring opportunities in onshoring and expanding manufacturing capabilities in the U.S. [51][56] Q&A Session Summary Question: Can you explain the royalty arrangement with Fermbox? - The profit split from the joint venture collaboration with Fermbox is significant, and revenue sharing will begin immediately as sales start rolling in [24][25] Question: What is the progress on the albumin arrangement? - No advanced orders have been placed yet, but sampling is expected to begin in Q2 2025, with orders anticipated in Q3 [26] Question: Will there be more government contracts for Fermbox? - There are opportunities for Fermbox to bid on additional contracts, both government and private sector [30] Question: When will the company shift focus from research spending to revenue-generating areas? - The company is currently reprioritizing resources towards non-pharmaceutical sectors for revenue generation [37] Question: Which non-dairy product has the best margins? - Lactoferrin has the highest margin potential, while alpha-lactalbumin has the largest market potential in terms of volume and margins [43] Question: What caused the drop in paid collaborators? - The decrease is due to the company's pivot towards licensing deals and product partnerships rather than resource-intensive collaborations [51]