Dyadic(US:DYAI)2025-05-14 22:02Financial 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 [15] - 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 [16] - General and administrative expenses decreased by 10.8% to $1,596,000 compared to $1,789,000 for the same period last year [17] - 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 [18] Business Line Data and Key Metrics Changes - The focus is 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, valued at over $6.1 billion globally, growing at a 13% compound annual growth rate [6] - Significant progress is being made in the development of recombinant human serum albumin, with expectations for launch in Q3 2025 [7] 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 [9] - 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 [8] 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 [5] - The company is focusing on product development rather than platform development, prioritizing commercialization-ready products [35][36] - Strategic partnerships are maintained in vaccine therapeutic developments, with collaborations with CEPI and the Gates Foundation [4][12] Management's Comments on Operating Environment and Future Outlook - Management emphasizes the importance of transitioning from a development stage to a product-driven revenue-generating enterprise [62] - The company is well-positioned to meet global demand for scalable and affordable animal-free precision engineered proteins and enzymes [63] - There is a commitment to strengthening the balance sheet to support near-term revenue growth and strategic objectives [18] 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 [18] - The company is participating in various funded programs, including a $4.5 million grant from CEPI and a $3 million program funded by the Gates Foundation [11][12] Q&A Session Summary Question: Can you explain the royalty arrangement with Fermbox? - The profit split is significant for both companies, and revenue sharing will begin immediately as sales start rolling in [22][23] Question: What is the progress on the albumin arrangement? - No advanced orders have been placed yet; sampling is expected to begin in Q2 2025 [24] Question: Will there be opportunities for Fermbox to bid on other contracts? - There are ongoing evaluations for additional contracts in both government and private sectors [27] Question: When will the company start spending less on research and more on revenue-generating areas? - The company is currently reprioritizing resources towards non-pharmaceutical sectors for revenue generation [34][36] Question: What product in the non-dairy applications portfolio has the best margins? - Lactoferrin has the highest margin potential, while alpha-lactalbumin has the largest market potential [40][41] Question: Is there any quantifiable tariff problem for the company? - Currently, there are no significant tariff issues, and there may be potential opportunities with onshoring [50] Question: Will the albumin and dairy enzymes be produced in the U.S.? - Yes, both products are being produced domestically, which mitigates tariff concerns [54][55]