The higher loss was primarily a result of the company's increased selling, general and administrative expenses to meet increased financial reporting requirements of being a public company, expenses associated with hiring additional personnel to support new marketing initiatives for the company's Enzyme Business, increased R&D expenses to continue the development of the company's proprietary C1 Host Technology, including the one-time expense of sequencing the C1 genome, and a $331,000 provision for slow moving inventory items due to the decrease in textile industry net sales.
"In the second quarter of 2005, they finished their transition to a public company, listed their common stock on the American Stock Exchange, were added to the Russell Microcap Index, and put in place a solid infrastructure to accelerate their pulp & paper sales effort," said Mark Emalfarb, Dyadic's President and CEO. "During the second half of 2005 and into 2006 we intend to expand pulp & paper sales and marketing initiatives, as we work to capture both an increasing number of new customer trials and convert existing and new customer trials into significant and sustained levels of pulp & paper product sales.
They continue to estimate the addressable market for the existing enzyme products in the pulp & paper industry and potential enzyme products for the pulp & paper industry currently in research and development pipeline to be in excess of $1.0 billion.
"They are encouraged by the opportunities created from the sequencing of the C1 genome and have identified a number of enzymes that have the potential to become new products for several industries, such as pulp & paper, food and feed," continued Mr. Emalfarb.
marketing@alchempro.com
