Good day, ladies and gentlemen, and thank you for holding. Welcome to Dyadic International's Third Quarter 2017 Financial Results Conference Call. Now all participants are in a listen-only mode. My name is Catherine, and I'll be your conference coordinator today. As a reminder, please note that this call is being recorded. Now I would like to introduce your host for today's call, Tom Dubinski, Dyadic's Vice President and Chief Financial Officer. Please go ahead, sir.

Thank you, Catherine. Good day, and thank you for joining today's conference call to discuss Dyadic's results for the quarter ended September 30, 2017 which were reported in a press release issued earlier today. The press release and Dyadic's quarterly report have been posted to both the Dyadic and the OTC Markets websites. I'm joined today by Dyadic's President and Chief Executive Officer, Mark Emalfarb. On today's call, Mark will cover operating highlights, further details on our corporate strategy, and a summary of our research and business development efforts. I will close with a review of our financial results in more detail. We will then provide you an opportunity to ask questions. Dr. Ronen Tchelet, our VP of Research & Development will join Mark and I during the Q&A to answer questions directed to him. Each caller will be allowed one question and one follow-up question to provide all callers an opportunity to participate. If time permits, the operator will allow additional questions from those who have already spoken. Before we begin, we would like to remind you that certain commentary made in this conference call may be forward-looking statements, which involve risks and uncertainties that could cause Dyadic's actual results, performance, scientific or otherwise or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Dyadic expressly disclaims any intent or obligation to update any forward-looking statements except as required by law. I will now turn the call over to our President and CEO, Mark Emalfarb.

Thank you, Tom. Good evening, everyone. I am very pleased to report that we are continuing to make good progress towards our goal of developing our C1 technology platform, and to leading next-generation protein expression and production system, which has the potential to speed up the development, lower production costs, and improve the performance of biologic vaccines and drugs at flexible commercial scale. We have been extremely busy over the past nine months. I would like to provide you with a brief overview of some of our many activities. We are making good progress in our research programs as we continue to develop what we strongly believe has the potential to be a disruptive next-generation protein expression and production system based upon the proprietary C1 technology. In less than a year, our research has resulted in our ability to shorten the timeframe in which we can express genes of interest and produce the products of genes such as monoclonal antibodies at higher levels with better stability by using improved C1 strains. Using new and improved C1 base strains, along with better molecular tools, which has now been developed over the past year at our prime CRO, the company now has an initial data set to begin to demonstrate C1’s potential ability to express monoclonal antibodies that are secreted, folded and bind in a similar manner to other established cell host technologies commonly used in the industry. C1 glycoengineering work has recently begun. Research data achieved to date is in line with what we expected, and continues to support management’s belief that C1 has the potential to be used for the development and manufacturing of animal and human biopharmaceuticals. In addition to glycoengineering, the Company is continuing its research efforts with focus on further enhancing protein stability and improving yields. We…

Thank you, Mark. At September 30, 2017, cash and cash equivalents were approximately $5.6 million, compared to $6.9 million at December 31, 2016. The carrying value of investment grade securities including interest receivable as September, 2017 was approximately $45.5 million compared to $43.6 million at December 31, 2016. The net decrease in cash and cash equivalents for the nine months ended September 30, 2017 of approximately $1.3 million principally reflects cash used in the repurchase of common stock of $5.7 million, cash used in operations of $4.2 million, The upfront payment of the previously announced BDI R&D agreement of $1.3 million, and cash used to purchase investment grade securities net of proceeds for maturities in interest of $1.5 million. Offset by cash received from escrow funds of $7.4 million, cash received from a litigation settlement net of related costs of $3.7 million, and the favorable effective exchange rate changes on cash of $300,000. The net loss for the quarter ended September 30, 2017 was approximately $1.5 million or $0.05 per basic and diluted share compared to a net loss of $1.2 million or $0.03 per basic and diluted share for the same period a year ago. The net loss for the nine month period of 2017 was approximately $800,000 or $0.03 per basic and diluted share, compared to a net loss of $1.5 million or $0.04 per basic and diluted share for the same period a year ago. The net loss reported in 2017 and 2016 included litigation proceeds of $4.4 million and $2.1 million respectively. R&D revenue for the nine month period of 2017 increased approximately $600,000 compared to $100,000 for the same period a year ago. Cost of revenue for the nine month period of 2017 increased to approximately $542,000 compared to $99,000 for the same period a…

[Operator Instructions] We'll take a question from Barry Kitt with Pinnacle Fund.

Hi, guys. I am sorry. We had a lot of calls going on with earnings. I missed some of that. Could you tell me what the cash burn from operations was for the quarter Tom?

Through September, the cash burn is $4.2 million, and…

Tom, do you have it just for the September quarter?

$2 million.

From operations?

Yes.

And what does that make it for the fourth quarter then?

Well, that does not include the fee up, the 1.3 million we spent in the upfront payment to BDI. So in total it would be 3.3 million including the BDI prepayment.

Okay. And you expect to end the year $1.71, $1.72 in cash.

Yes, sir.

Mark, with the agreements you have with big pharma players, and – is there any opportunity for revenue from those partnerships, if you will between now and the end of 2018, or is it too early to speculate on that?

Well, it is too early to speculate on anything, but we are going to get some revenue in 2018 from at least one of them. We are hoping that another one will re-up and actually we are hoping to bring in an additional one or two more, maybe three more and so there is additional revenue to come in from [indiscernible] and potentially others, but the timing of all that is hard to predict.

Yes, I guess what I wanted to try and do is to get where the cash would be at the end of next year if you burned a similar as you might expect to burn in the fourth quarter of this year, can you help me out with that Tom?

Well, we typically don't like to provide that long a guidance on cash flow Barry, but I think we are thinking that roughly…

And I'm not asking you to project where it will be. I'm just trying to say if the operations next year were similar to the operations this year, and you had no benefit from these partnerships and we just burnt the same amount we burnt this year, I'm just trying to get an idea of where cash would be at the end of next year. Not asking you to make predictions that it will be there.

Yes, no. I understand. Just obviously I'm going to be cautious about what we provide, but I believe overall that we will approximately end the year similar in the mid-1.40s at the end of ’18, middle of 2019.

Okay, thank you very much. I appreciate it.

[Operator Instructions] And with no additional questions, I would like to turn the conference back over to Mr. Emalfarb for any additional or closing remarks.

Thank you, Catherine. We are very excited about our potential research and development and business opportunities in the pipeline, and we believe that 2017 is an important year, and that 2018 will be even more important for the future development of the C1 technology and for Dyadic to grow in the pharmaceutical sector. I want to take this opportunity to thank our very hard working employees and consultants and our dedicated Board of Directors, our research partners and shareholders for their support. Thank you all who have taken the time to participate on today's conference call.

Thank you again. Ladies and gentlemen that does conclude today’s program. You may now disconnect.