DYAI

Image source: The Motley Fool. Wednesday, Aug. 12, 2026 at 5:00 p.m. ET Chief Financial Officer - Ping Rawson President and Chief Operating Officer - Joseph Hazelton Chief Executive Officer - Mark Emalfarb Operator: Good evening. Welcome to Dyadic International's Q2 2026 Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded today, August 12, 2026. I would now like to turn the call over to Ms. Ping Rawson, Dyadic's Chief Financial Officer. Please go ahead. Ping Rawson: Thank you. Good evening and welcome everyone to Dyadic's second quarter 2026 conference call. I hope you have had the opportunity to review Dyadic's press releases announcing financial results for the quarter ended June 30, 2026. You may access our release and Form 10-Q under the investor section of the company's website at dyadic.com. On today's call, our President and Chief Operating Officer, Dr. Joe Hazelton will review our Q2 2026 business and corporate highlights and provide commentary on the strategic direction of the business. Our CEO, Mark Emalfarb, will provide an update on our biopharmaceutical programs, and I will follow with a review of our financial results in more detail, after which we will hold a brief question and answer session. At this time, I would like to inform you that certain commentary made in this conference call may be considered forward-looking statements, which involve risks and uncertainties and other factors that could cause Dyadic's actual results, performance, scientific or otherwise, or achievements to be materially different from those experienced or implied by these forward-looking statements. Dyadic expressly disclaims any duty to provide updates to its forward-looking statements, whether because of new information, future events, or otherwise. Participants are directed to the risk factors set forth in Dyadic's report filed with the SEC. It is now my pleasure to pass the call to our President and COO, Joe Hazelton. Joe? Joseph Hazelton: Thanks, Ping, and thank you everyone for joining us today. Last quarter, we talked about Dyadic moving from a platform development story toward a commercially driven business. In Q2, that transition became more tangible. We're shipping products, supporting customer evaluations, generating initial sales, and expanding distribution. We're also improving manufacturing economics and using that commercial activity to create broader opportunities for partnerships and licensing. At the same time, we are expanding and accelerating both our internal product pipeline and third-party product development opportunities. That distinction is important. In our markets, commercialization is rarely a single event. It typically progresses from technical validation to sampling, customer qualification, initial purchasing, and if the product performs and economics work, to repeat potentially larger-volume orders. During Q2 and after quarter end, we saw a growing number of Dyadic's products move further along that continuum. A good example of improving manufacturing economics to accelerate the potential for commercial launch is our animal-free recombinant human transferrin program. During the quarter, our initial pilot-scale run increased productivity by approximately 80%. Based on our current preliminary biomanufacturing assumptions, that improvement is expected to reduce costs by approximately 40%. We've now sampled the product into research and cell culture applications in addition to the recombinant bovine transferrin progress into cultivated meat that we've discussed previously. That matters for several reasons. Lower manufacturing cost improves our commercial flexibility while supporting attractive product economics and maintaining a strong quality profile. Higher productivity improves the scalability and supply profile customers evaluate before qualifying a critical media component. And importantly, these improvements provide another data point in which we can demonstrate to prospective partners evaluating whether our protein production platforms can manufacture proteins in greater quantities, more efficiently and economically. This is the commercial model we're building. We improved the strain and process, used those improvements to support product sales and customer qualification, and then used the resulting performance data to strengthen the case for larger strategic collaborations, licensing arrangements, or technology access opportunities. The value of an 80% productivity improvement is not limited to transferrin itself. It also helps validate the broader platforms. We are seeing similar progress across our life science portfolio. During Q2, we began product shipments to IBT Bioservices under our OEM distribution agreement, and completed additional shipments after quarter end for research, diagnostic and cell culture applications. We also generated initial pilot sales of recombinant transferrin and growth factors for cultivated meat applications. These sales remain early, but they potentially put Dyadic-produced proteins into customer workflows where performance, consistency, supply and economics can be evaluated under real operating conditions. Our distribution strategy is intentionally capital-efficient. Rather than build a large direct commercial organization for every market, we're combining selective direct sales with distributors and OEM partners that already have customer relationships, application expertise, and global reach. That gives us multiple ways to reach the market while keeping our fixed commercial infrastructure relatively lean and selectively launching our own products. Proliant has begun commercialization of Albufree Dx recombinant human albumin for life science and diagnostic applications and has announced plans to broaden the portfolio with Albufree Tx for cell culture and Albufree CGT for cell and gene therapy applications. Successful commercialization under our arrangement could provide Dyadic with potential future royalty participation, while an established partner leads market development and customer adoption. We're also seeing commercial validation in food and nutrition through Enzymes. Their non-animal bovine chymosin produced using Dyadic technology is now generating commercial sales. This represents a partner taking a product developed with our platform through development and into the market where it is being sold commercially. A second product is also in development, creating the potential for an additional milestone and future royalty economics. With Fermbox Bio, commercialization has expanded around recombinant DNase 1 and recombinant human and bovine transferrin. Taken together, these relationships demonstrate the different stages of the commercial cycle, from product development and distribution to initial purchasing and actual commercial sales. And they create multiple potential revenue pathways for Dyadic through direct sales, partner sales, milestones, royalties, development funding, and licensing. We also initiated scale-up activities with BRIG Bio for recombinant bovine alpha-lactalbumin under a fully funded development agreement. Additional product testing is underway to evaluate comparability to animal-produced proteins. This is another example of how we're advancing products toward broader commercial applications while working with partners to support development and scale-up. Importantly, the strain being developed for this program is not limited to a single end market. We're also using it to produce research-grade material for reagent and cell culture applications. That cross-category strategy gives us additional commercial options earlier in the development cycle. A protein ultimately intended for a larger nutrition market may also be introduced into research, reagent or cell culture channels where volumes, qualification requirements and commercialization time lines differ. This can provide earlier market validation and early revenue opportunities while the broader food and nutrition program advances. It also allows us to leverage the same development work across multiple markets. When we create a high-performing strain, optimize the process, and develop the analytical package, we look for opportunities to deploy those capabilities through direct sales, distribution, funded development, licensing, or broader collaborations. After quarter end, we also expanded our precision fermented dairy protein portfolio through an additional development and commercialization agreement. We're following the same playbook in bioindustrial, where we're building a portfolio around scalable enzyme production. In July, we announced a new proprietary industrial cellulase product, specifically engineered for advanced fiber modification applications. The program builds on the commercialization of EN3ZYME and is designed for applications that can include pulp biorefining, microcrystalline cellulose, and nanocellulose production with the potential to improve fiber strength and retention, reduce processing energy requirements, and increase usable fiber output and overall process efficiency. In addition to the commercial launch of enzymes non-animal chymosin and Fermbox Bio EN3ZYME, this new cellulase program further demonstrates the potential of Dapibus as a repeatable product development and manufacturing platform across multiple enzyme classes and end markets. Rather than relying on different production organisms for different products, Dapibus is built around the common microbial production strains and shared development infrastructure, which can help streamline strain development, process optimization, scale-up and manufacturing as additional products move through the pipeline. As our programs advance through optimization, pilot scale production, and customer evaluation, we expect to evaluate multiple commercialization paths, including direct product sales, strategic collaborations, contract manufacturing, and technology licensing. When you look across life sciences, food and nutrition, and bio-industrial, the model is becoming increasingly consistent. We now have products moving through qualification and distribution, products generating initial sales, and partner-developed products already being sold commercially. At the same time, we're improving manufacturing productivity and costs, and expanding the number of applications and markets our proteins and enzymes potentially can address. We use that commercial and technical validation to strengthen both the economics of individual products and the strategic value of the underlying platforms. That's why we view the commercial traction and strategic business development as complementary. We believe that the combination improves our ability to build recurring product revenue while also increasing the potential value of licensing and broader strategic collaborations. Importantly, the benefits are not limited to one platform or market. We're increasingly able to leverage learnings and technology advances across C1 and Dapibus, including our proprietary combinatorial libraries and the rapid plasmid-to-protein development capabilities advanced through the fully funded biopharmaceutical program. That work has demonstrated the ability in certain programs to move from plasmid-to-purified-protein in approximately 15 days. We believe applying these capabilities across our shared technology foundation can help improve development speed, expression yields, manufacturing economics, and time to commercialization across life sciences, food and nutrition, bioindustrial, and biopharmaceutical opportunities. With that, I will now turn the call over to Mark to discuss our biopharmaceutical programs, including how the data and capabilities being generated there can further strengthen C1 and potentially create additional strategic value across Dyadic. Mark? Mark Emalfarb: Thank you, Joe. Joe described how commercial products are helping validate our platforms across life sciences, food and nutrition, and bioindustrial markets. Our biopharmaceutical programs are doing something similar at the more regulated end of the protein spectrum. The programs are generating data related to the production of monoclonal antibodies, vaccine antigens, and other therapeutic proteins that we believe can strengthen the broader value proposition of C1 as a manufacturing platform. Our strategy in biopharma remains partner-funded and capital-efficient. We're not trying to build a fully integrated pharmaceutical company or independently fund large clinical programs. Instead we were working with organizations such as the Gates Foundation, CEPI Foundation, the Biotecnopolo di Siena or FBS, the EU Vaccine Hub, Scripps Research, NIAID supports collaborations, the Israel Institute for Biological Research, and several others that can help evaluate C1 against demanding technical benchmarks. Our Gates Foundation-supported collaboration is funded under an approximately $3.9 million grant program focused on developing potentially lower-cost monoclonal antibodies targeting respiratory syncytial virus and malaria. C1-produced antibodies have demonstrated high productivity and functional characteristics comparable to established mammalian cell reference materials. Funding is in place to continue this work, and we are working toward providing C1-produced material to support initiation of preclinical studies with one or both antibodies. Each step toward more advanced evaluation provides additional evidence around C1's ability to manufacture complex biologics with the productivity, quality, and functionality in comparison to legacy platforms that biopharmaceutical developers evaluate when considering the adoption of an innovative production platform such as C1. We're also continuing our CEPI-supported collaboration through FBS, under which Dyadic is eligible to receive up to approximately $2.4 million to support recombinant vaccine development and scale-up activities. A key capability demonstrated through this work is speed. C1 has shown the ability to progress from plasmid to purified protein antigen in approximately 15 days. We subsequently applied this rapid workflow to two Scripps-designed Bundibugyo ebolavirus antigens, providing a real-world demonstration of the C1 platform's ability to approximately 15-day plasmid to purified-protein capability. Both antigens have been delivered to Scripps Research and FBS and are now undergoing further characterization with the potential to support future preclinical evaluation. What is particularly important about that result is what the workflow demonstrates. Rapid strain development, efficient creation of the target protein, streamlined process execution, and delivery of purified material in a highly compressed time line. Speed can be especially important in pandemic preparedness. But these same capabilities can also create value more broadly for development time lines, Manufacturing simplicity, scalability, and cost of goods, influence product development and commercialization decisions. This is where our biopharma work connects back to the broader business Joe discussed. Working on technically demanding antibodies and vaccine antigens expands our know-how in strain engineering, expression, secretion, purification, and scale-up. Every protein is different, but the capabilities and technical learnings generated through these programs can and are potentially informing development work across our broader portfolio. Beyond Gates and CEPI, we are advancing the NIAID-supported preclinical evaluation of C1-produced malaria antigens, continuing monoclonal antibody development with the Israel Institute for Biological Research, and pursuing additional potential antibody programs through the European Vaccines Hub and FBS ecosystem, as well as the opportunities with prospective first-time C1 collaborators. Collectively, these programs are broadening the external data set around C1 across many different protein classes and applications. We believe a growing body of evidence continues to support additional funded development programs and create opportunities for potential platform licensing, technology access, milestone royalties, manufacturing relationships, and broader strategic collaborations. Taken together with the commercial progress Joe described, we believe Dyadic is building a more balanced business, nearer-term product revenue opportunities across our commercial segments, supported by externally funded biopharmaceutical programs that can generate technical validation and potentially create longer-term licensing and strategic value. With that, I will turn the call back to Ping for the financial review. Ping Rawson: Thank you, Mark. I will now go over our key financial results for the second quarter of 2026 in more detail. You can find additional information in our earnings press release and Form 10-Q, which we filed earlier today. Total revenue for the three months ended June 30, 2026 was approximately $961,000, essentially flat compared to approximately $967,000 for the second quarter of 2025. Revenue for the quarter included approximately $124,000 of research and development revenue and $837,000 of grant revenue, primarily associated with our ongoing externally funded programs. For the first six months of 2026, total revenue increased approximately 52% to $2.1 million compared to approximately $1.4 million for the same period in 2025. Total cost of revenue for the quarter was approximately $984,000, an increase of 60% compared to approximately $614,000 for the second quarter of 2025. The increase was primarily related to higher activity levels associated with our grant-funded programs. Internal research and development expenses decreased 47% year over year to approximately $333,000 compared to approximately $629,000 in the second quarter of 2025. The decrease reflects our continuous focus on advancing programs through externally funded collaborations and maintaining disciplined internal R&D spending. For the six months, internal research and development expenses were approximately $809,000, down 28% from approximately $1.1 million a year ago. G&A expenses increased by $253,000 or 18% year over year to approximately $1.7 million compared to approximately $1.4 million in the second quarter of 2025. The increase was primarily driven by higher rebranding and business development expenses of $323,000 and the higher legal and accounting expenses of $116,000, partially offset by lower share-based compensation expenses of $196,000 and the lower incentive compensation of $32,000. For the six months, G&A expenses were approximately $3.4 million and an increase of 14% year over year. Loss from operations for the quarter was approximately $2.1 million compared to approximately $1.7 million in the prior year period. Net loss for the quarter was approximately $2.1 million or $0.06 per share, compared to approximately $1.8 million or $0.06 per share for the second quarter of 2025. For the six months ended June 30, 2026, net loss was approximately $4.1 million or $0.11 per share compared to approximately $3.8 million or $0.13 per share for the first six months of 2025. Turning to our balance sheet and liquidity, we ended the second quarter with approximately $4.8 million in cash, cash equivalents, restricted cash and investment-grade securities including accrued interest. As disclosed in our Form 10-Q, based on our current liquidity position and the accounting requirements for evaluating liquidity over the 12 months following the issuance of our financial statements, we concluded that there's substantial doubts about our ability to continue as a going concern under the applicable accounting standard ASC 205-3. I want to briefly put that disclosure into context and be clear about what that means and what it does not mean. Going concern is a required accounting assessment based on whether our current resources, together with financing and other actions that are considered probable, are sufficient to fund our obligations over the required assessment period. This is a required accounting determination regarding the 12-month look-forward period from the financial statement issuance date. It does not mean that the company is ceasing operations, and it does not reflect any default under our convertible notes or any other obligations of the company. We were in compliance with all our covenants under our convertible notes, and those notes do not mature until December 31, 2027. Rather, the conclusion reflects our need to obtain additional capital as we continue executing our commercialization and development strategy. We are actively evaluating a range of financing alternatives and other opportunities to strengthen our balance sheet. Importantly, those opportunities are not limited to traditional equity financing. We are also pursuing potential non-dilutive and strategic sources of capital, including new and expanded licensing arrangements, upfront and milestone payments, royalties, funded development programs, products and technology partnerships, and other strategic transactions that could provide capital while also accelerating commercialization and a broader adoption of our technologies. At the same time, we remain focused on disciplined cash management, expanding commercial revenues, and maximizing the use of third-party funding and strategic collaborations to support development activities. Our objective is to increasingly fund product development through a combination of commercial revenues, partner-funded programs, and other non-dilutive sources, thereby reducing the amount of capital Dyadic must deploy internally as the business expands. As Joe and Mark discussed, we are beginning to see increasing commercial activity across our life sciences, food and nutrition, and bioindustrial programs, alongside the continued external funding and validation of our biopharmaceutical programs. While these activities remain at a relatively early stage, we believe they are creating a growing number of opportunities to generate recurring product revenues, licensing income, royalties, milestones, and other partnership revenues. Our broader objective is not simply to increase revenue, but to build a business model in which a growing portion of product development and commercialization can be supported by customers, licensees, strategic partners, and external funding sources. If successful, we believe this approach can help extend our financial resources, reduce our reliance on dilutive capital, and allow us to continue advancing a broader portfolio of commercial and strategic opportunities while carefully managing operating expenses and capital requirements. With that, I will now ask the operator to begin our Q&A session. Each caller will be allowed one question and one follow-up question to provide all callers with an opportunity to participate. If time permits, the operator will allow additional questions from those who have already spoken. I will now ask the operator to begin our Q&A session, after which Joe Hazelton will provide closing remarks. Operator? Operator: [Operator Instructions] And the first question comes from the line of Matt Hewitt with Craig-Hallum Capital Group. Matthew Hewitt: Maybe first up, I think both in your Q as well as in your prepared remarks, you noted fairly significant ordering activity post-closing the Q2 books. I'm just curious, should we anticipate that we're going to see product revenues here in the third quarter? And if so, what does that ramp kind of look like? Or do you anticipate it'll be lumpy here over the first few quarters? Joseph Hazelton: Matt, it's a great question. Yes, lumpy would probably be the best way to describe it. What we did in the second quarter, we started to fill the channels. We obviously shipped products to our first global distributor, IBT. We also have direct product sales or initial pilot sales going into cultured meat and a couple into the research segment as well. But it's too early until we have some recurring orders to really figure out what that ramp is going to look like. Obviously, we're having discussions every day. So again, we're always trying to push the ramp as quickly as possible, but I think it's just right now it's a little too early. But the good news is we also have our partners in the market like ProLiant, who's not only launched AlbuFree DX, but now they're looking to launch two additional products into the market. We have Enzymes and Fermbox as well. So our hope is obviously between our product sales as well as our partners that we'll continue to build that ramp as quickly as possible. Matthew Hewitt: You have a lot of irons in the fire, several different products that you're working on, different partnerships that you've inked and others that are coming. How are you prioritizing all of those? Or is it just basically moving down the list and knocking them all off at the same time? Joseph Hazelton: That one's a lot easier. Revenue. It's all prioritized based on the amount of revenue that we can generate in the shortest amount of time. So when we're looking at whether it's a potential direct sale, whether it's a licensing opportunity, it's based on the size of the potential opportunity. And we're going to continue to execute that way. Operator: And the next question comes from the line of John Vandermosten with Zacks. John Vandermosten: It seems like you mentioned a lot of product shipments in the press release, and I'm hoping you can share with me what the intermediate steps are between shipment and then Dyadic top line? Joseph Hazelton: It first depends on what the shipment is. So we had some shipments to direct customers, which is obviously direct sale. We also had shipments to distributors. So that is again, shipped to the distributor, gets into the channel, sales process, and then you also have people like Proliant. When Proliant sells, obviously we get money, but that's on the back end as well. So the main thing is we need to get product into the channels. We're able to get 6 different product opportunities into commercial distribution with IBT in addition to some of our direct sales. So now we need to ramp that up. We're also exploring obviously other distribution opportunities. And I think that's, to me, that's the important point is in order for us to grow we need to get that product into the market and we also have our customers that are doing the same thing. Enzymes already has commercial sales so our hope obviously is that as those start to ramp as well we'll start to see those come in. John Vandermosten: Okay. And I wanted to get a sense of -- I know you guys aren't providing guidance, but you did mention in the Q about the Enzymes milestone that's expected. What other cash flows, I guess, could we expect in the second half to get a sense of kind of where cash might stand at the end of the year? Is there any help you can give me on that. Mark Emalfarb: Yes, I think, on both the industrial biotech side, through biochemicals, there's some new things going on where we're engaging with some people that are very interested in using the Dapibus platform, not only to develop enzymes, but for bio-based chemicals. And we've got some work that we've actually done in there that we'll be talking about maybe in Q3. But also on the pharmaceutical side, the data is coming in very well as we talked about the Gates Foundation and the mAbs, both RSV and malaria are advancing, and the data that we're seeing from the human glycosylation, the yields, the quality as we head into these non-animal -- animal preclinical studies potentially will actually continue to drive interest there, along with CEPI. That 15-day plasmid-to-protein is applicable not only in pharma, but also, as Joe pointed out, it's going to help accelerate the development and commercialization of some of our food and nutrition, life science, and industrial applications. And then we're in discussions with a couple of major suppliers and pharmaceutical companies where we're hoping to land one of those big chunks of cash to bring us like non-dilutive capital that could last us from several months to several years depending on what it comes out. I mean if you keep in mind, John, we did bring in $30 million of non-dilutive capital on the industrial side and not exclusive to licenses in the past. And so between what Joe's got going on that side and some of the new opportunities there and on the pharmaceutical side, one of those checks could really, really make a huge difference. And as Joe said, those are things we're focused on, getting that done. Operator: [Operator Instructions] There are no further questions at this time and this will conclude the question-and-answer session. I will now turn the call over to Dyadic's President and COO, Joe Hazelton. Joseph Hazelton: Thank you. As we close, I want to bring together what Mark and I discussed today. We believe Q2 represents another important step in Dyadic's evolution from primarily developing technology platforms to building a commercially driven business around those platforms. Across life sciences, food and nutrition, and bio-industrial markets, products are progressing through qualification and distribution into initial and commercial sales. At the same time, we continue to improve our C1 and Dapibus platforms in manufacturing, productivity, and economics, while applying relevant technology advances and learnings across both platforms. This shared technology foundation is helping us expand applications, accelerate product development, and work with strategic partners to broaden our commercial reach. On the biopharmaceutical side, externally funded programs are generating important data around complex proteins, including monoclonal antibodies and vaccine antigens that we believe can strengthen C1's value proposition and support future licensing and strategic opportunities. What connects these activities is our ability to turn technical performance into commercial opportunity. Better productivity and economics can drive product adoption, while customer traction and external validation can strengthen the opportunity for broader strategic relationships. We still have significant execution ahead of us, but we believe Dyadic has more ways to create value today than it did a year ago. We have commercial products, expanding distribution, improving manufacturing economics, partner-funded programs, and a growing body of external validation. Our focus for the remainder of 2026 is to continue converting that product into product sales, recurring revenue, and larger strategic and licensing opportunities while scaling the business efficiently. We appreciate the continued support of our shareholders, partners, and employees. We look forward to updating you on our progress and thank you for joining the call today. Operator: The conference has now concluded. 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By John Vandermosten, CFA NASDAQ: DYAI READ THE FULL DYAI RESEARCH REPORT Dyadic Applied BioSolutions, Inc. (NASDAQ: DYAI) announced 2Q:26 results on August 12th, 2026, and held a conference call providing additional detail after that day’s market close. Dyadic updated investors on the status of its active relationships; however, there were no product revenues reported. Highlights of progress with the Dapibus product set include shipment of recombinant protein products and initial partner sales of recombinant transferrin and growth factors for cultivated-meat applications and initial commercial sales of non-animal bovine chymosin. Proliant’s commercialization of Albufree DX continues with anticipated expansions into cell culture and cell and gene therapy applications. Since the last update, Dyadic forged a new relationship with a European company for its precision-fermented dairy protein portfolio. It is also working on an improved enzyme in the paper and pulp industry that could lower costs in this narrow margin business. Dyadic continues its research work executing the Gates Foundation and Coalition for Epidemic Preparedness Innovations (CEPI) infectious disease programs. The company is working towards delivery of C1-produced monoclonal antibodies to support future use with these collaborators. 2Q:26 Operational & Financial Results Dyadic released second quarter operational and financial results in a press release and a Form 10-Q filing with the SEC. Further detail was provided in a conference call held with investors. Below are financial results for the three months ending June 30th, 2026, compared to the same prior year period: Revenues were $1.0 million, essentially flat with prior year levels. Moving parts in the sales line include a $90,000 decline in R&D revenue from smaller and fewer collaborations and the absence of a $250,000 milestone received in the prior year. These amounts were offset by an increase in grant revenue from CEPI and the Gates Foundation; Cost of revenue totaled $984,000, rising 60% from $614,000 on higher research and grant revenue cost related to the CEPI and Gates Foundation grants, partially offset by a decrease in the cost of R&D revenue; Research and development expense was down 47% to $333,000 from $629,000 due to a decrease in the number of active internal research initiatives in support of product development; General and administrative expenses were $1.7 million vs $1.4 million, rising 18%. Higher legal and accounting expenses, and rebranding and business development expenses contributed. These amounts were partially offset by a decrease in share-based compensation and incentives; Foreign currency exchange loss was $9,000 vs a loss of $16,000 due to fluctuations in the Euro-Dollar exchange rate; Total other expenses were $70,000 vs $65,000 due to fluctuations in net interest expense categories; Net loss amounted to $2.1 million vs $1.8 million. On a per share basis, net loss was $0.06 for both periods. As of June 30th, 2026, cash, equivalents, and short-term securities totaled $4.7 million compared to $8.6 million at the end of 2025. This includes restricted cash of about $1.6 million that is earmarked for work associated with the Gates Foundation Grant. Cash burn during the first six months of 2026 was $3.8 million compared with $2.1 million for the same prior year period. No cash from financing was recorded in the quarter. However, following the second quarter earnings report, on August 13th Dyadic announced a private placement that raised net proceeds of $2.28 million. Dyadic also has access to an At-The-Market (ATM) sales agreement with Craig-Hallum. In the company’s 10-Q Filing, which was issued prior to the post-2Q:26 capital raise, it notes that there is substantial doubt about its ability to continue as a going concern. Registered Direct Offering and Private Placement A day following the second quarter earnings report, Dyadic announced a $2.9 million registered direct offering and concurrent private placement of warrants. 3,625,000 shares of common stock were offered at $0.795 per share along with the same number of warrants at a purchase price of $0.005 per warrant. The exercise price for the warrant is set at $0.84. Net proceeds are expected to be $2.28 million, which will be used for normal Dyadic business operations. Aegis Capital served as the sole placement agent for the offering. Partnerships and Collaborations Dyadic reiterated its progress over the past two years with its numerous partnerships and collaborations adding a few additional agreements and, we believe, moving closer to product revenues. Reviewing progress year-to-date, the company highlighted continued advancement across the commercialization continuum, including strategic partner recruitment around the globe, customer identification, OEM distribution expansion, product launches, initial purchase orders, milestone achievements and product shipments through commercial channels. Recent developments included Dyadic’s virus collaboration with Fondazione Biotecnopolo di Siena (FBS) to accelerate protein-vaccine antigen development with Scripps Research. The collaboration was able to develop and deliver stable pools of C1 cell lines and manufacture and initially purify two Scripps-designed Bundibugyo Ebola antigens in 15 days to FBS and Scripps. The non-dairy pipeline is also advancing through a commercial launch of recombinant bovine chymosin through Inzymes and the ongoing development of recombinant bovine alpha-lactalbumin with BRIG BIO. Earlier in the year we highlighted the OEM distribution agreement with IBT Bioservices, commercialization activities with Proliant and Fermbox Bio, milestone revenue recognition under the Inzymes agreement, and ongoing funded collaborations with organizations such as the Gates Foundation and CEPI. As the year progresses, we are looking to the timing, consistency and magnitude of collections, revenues and cash flow generation. While the trajectory toward commercialization appears to be delayed, the pace and scale of future revenue recognition remain uncertain, and we expect additional clarity to emerge over the coming quarters Beyond the revenue opportunities, Dyadic also penned agreements with longer-term impacts. The first is with Intralink Group for expanding commercial efforts in Japan and Korea. They have made progress with customer engagement in Japan, have shipped samples and are in the process of identifying product opportunities. COO Joe Hazelton made an in-person trip to the region earlier this summer where he forged several new relationships and strengthened existing ones. The relationship with Intralink expanded to include Europe where sampling activity is taking place. SUBSCRIBE TO ZACKS SMALL CAP RESEARCH to receive our articles and reports emailed directly to you. Please visit our website for additional information on Zacks SCR. DISCLOSURE: Zacks SCR has received compensation from the issuer directly, from an investment manager, or from an investor relations consulting firm, engaged by the issuer, for providing research coverage for a period of no less than one year. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management characterized the company's progress as a transition from a platform development story to a commercially driven business with products moving through qualification and distribution, although Q2 2026 total revenue remained flat year-over-year and consisted entirely of research, development, and grant funding. A key strategic driver is the improvement of manufacturing economics, exemplified by an 80% productivity increase in the recombinant human transferrin program, which is expected to reduce costs by approximately 40%. The company is utilizing a capital-efficient distribution strategy, leveraging OEM partners and global distributors like IBT Bioservices to reach markets without building a large direct sales infrastructure. Strategic positioning involves a 'cross-category' approach where high-performing strains developed for large nutrition markets are simultaneously deployed into research and reagent channels for earlier revenue. Management emphasized that technical validation in biopharmaceuticals, such as the 15-day 'plasmid-to-protein' workflow, is being leveraged to accelerate development timelines across all business segments. The business model is shifting toward recurring revenue streams through a mix of direct sales, royalties from partners like Proliant and Enzymes, and milestone payments. Management is prioritizing all future initiatives based on their ability to generate the highest revenue in the shortest possible timeframe. The company is actively pursuing non-dilutive capital through potential large-scale licensing arrangements and strategic partnerships to address liquidity needs. Future growth is dependent on moving products through the 'commercial continuum' from technical sampling and customer qualification to repeat, large-volume orders. Biopharmaceutical strategy remains focused on partner-funded programs with organizations like the Gates Foundation and CEPI to avoid the costs of independent clinical trials. Management expects to expand the precision fermented dairy protein and industrial cellulase portfolios to further demonstrate the repeatability of the Dapibus platform. The company disclosed a 'substantial doubt' regarding its ability to continue as a going concern, a required accounting determination based on a 12-month liquidity look-forward. Management clarified that the going concern status does not reflect a default on convertible notes, which do not mature until December 31, 2027. Internal R&D expenses were reduced by 47% year-over-year as part of a deliberate shift to prioritize externally funded collaborations and disciplined spending. G&A expenses increased 18% due to higher rebranding, business development, and legal costs associated with the company's strategic transition. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects revenue to be 'lumpy' in the near term as they fill distribution channels and wait for recurring orders to establish a predictable ramp. Initial pilot sales in cultured meat and research segments are currently being used to establish performance data for future larger-scale adoption. The primary filter for resource allocation is the magnitude and speed of potential revenue generation. Management is focusing on opportunities that offer the largest potential licensing or direct sale value to maximize cash flow. Dyadic is in discussions with major pharmaceutical and supply companies for potential 'large chunks' of non-dilutive capital that could fund operations for months or years. Upcoming catalysts include potential milestones from Enzymes and new bio-based chemical applications for the Dapibus platform expected in Q3.

This article first appeared on GuruFocus. Release Date: August 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Dyadic International Inc (NASDAQ:DYAI) reported a 52% increase in total revenue for the first half of 2026, reaching $2.1 million. The company achieved an 80% productivity improvement in its recombinant human transferrin program, reducing costs by approximately 40%. Dyadic International Inc (NASDAQ:DYAI) initiated product shipments to IBT BioServices and generated initial pilot sales for cultivated meat applications. The company's partner Proliant has begun commercializing Albufree DX and plans to launch additional products, potentially providing future royalties. Dyadic International Inc (NASDAQ:DYAI) is advancing externally funded biopharmaceutical programs, including a $3 million Gates Foundation grant and a CEPI collaboration, demonstrating C1's rapid protein production capabilities. Dyadic International Inc (NASDAQ:DYAI) reported a net loss of $2.1 million for Q2 2026, consistent with the prior year period. The company's cost of revenue increased 60% year-over-year, driven by higher activity in grant-funded programs. Dyadic International Inc (NASDAQ:DYAI) has substantial doubt about its ability to continue as a going concern, requiring additional capital within the next 12 months. The company's cash position is only $4.8 million, and it is actively seeking financing alternatives, including potential dilution. Product revenue ramp is expected to be lumpy and early-stage, with no clear timeline for significant recurring revenue. Warning! GuruFocus has detected 6 Warning Signs with DYAI. Is DYAI fairly valued? Test your thesis with our free DCF calculator. Q: Should we anticipate seeing product revenues in the third quarter, and will the ramp be lumpy over the first few quarters? A: Joe Hazelton (President and COO): Yes, lumpy would be the best way to describe it. In Q2, we began filling channels by shipping products to our first global distributor, IBT, and made direct pilot sales into cultured meat and research segments. It's too early to determine the ramp until we see recurring orders. However, partners like ProLiant are launching additional products, and Enzymes and Firmbox are also active, so we hope to build the ramp as quickly as possible. Q: How are you prioritizing the many products and partnerships you are working on? A: Joe Hazelton (President and COO): It's prioritized based on revenuespecifically, the amount of revenue we can generate in the shortest amount of time. Whether it's a direct sale or a licensing opportunity, we focus on the size of the potential opportunity and execute accordingly. Q: What are the intermediate steps between product shipments and Dyadic's top-line revenue? A: Joe Hazelton (President and COO): It depends on the shipment type. Direct customer shipments are direct sales, while shipments to distributors enter the channel and sell through. Partners like ProLiant generate revenue on the back end. We've placed six product opportunities into commercial distribution with IBT, and we need to ramp that up. The key is getting product into the market, and we're exploring additional distribution opportunities to grow. Q: Can you provide any guidance on expected cash flows in the second half of the year, particularly regarding the Enzymes milestone? A: Mark Enosard (CEO): On the industrial biotech side, we're engaging with parties interested in using the DAPIBIS platform for enzymes and bio-based chemicals, with updates potentially in Q3. On the pharmaceutical side, data from the Gates Foundation MABS programs (RSV and malaria) is advancing well, and the 15-day plasmid-to-protein capability from CEPI is applicable across our portfolio. We're in discussions with major suppliers and pharmaceutical companies, hoping to land a large non-dilutive capital infusion that could last several months to several years. We previously brought in $30 million of non-dilutive capital, and one of these checks could make a huge difference. Q: Can you elaborate on the 80% productivity improvement in the recombinant human transferrin program and its broader implications? A: Joe Hazelton (President and COO): The initial pilot scale run increased productivity by approximately 80%, which is expected to reduce costs by about 40% based on preliminary biomanufacturing assumptions. This improves commercial flexibility, scalability, and supply profile for customer qualification. Importantly, it also validates the broader C1 and DAPIBIS platforms, demonstrating our ability to manufacture proteins more efficiently and economically, which strengthens the case for larger strategic collaborations and licensing arrangements. Q: What is the status of the biopharmaceutical programs, and how do they contribute to the broader business? A: Mark Enosard (CEO): Our biopharma strategy remains partner-funded and capital efficient. The Gates Foundation collaboration (approximately $3 million grant) is focused on monoclonal antibodies for RSV and malaria, with C1-produced antibodies showing high productivity and functional characteristics comparable to mammalian cell references. The CEPI-supported collaboration through FBS (up to $2.4 million) demonstrated the ability to progress from plasmid to purified protein antigen in approximately 15 days, applied to Ebola virus antigens. These programs generate data that strengthens C1's value proposition for potential licensing and strategic opportunities. Q: Can you explain the going concern disclosure and what it means for the company's future? A: Peng Rawson (CFO): The going concern conclusion is a required accounting assessment under ASC 205-20, based on whether current resources and probable financing actions are sufficient to fund obligations over the 12-month look-forward period. It does not mean the company is ceasing operations, and we are in compliance with all covenants under our convertible notes, which don't mature until December 31, 2027. We are actively evaluating a range of financing alternatives, including non-dilutive sources like licensing arrangements, milestones, royalties, and funded development programs, to strengthen our balance sheet. Q: What were the key financial results for Q2 2026, and how do they compare to the prior year? A: Peng Rawson (CFO): Total revenue for Q2 2026 was approximately $961,000, essentially flat compared to $967,000 in Q2 2025. For the first six months, revenue increased 52% to $2.1 million. Cost of revenue increased 60% to $984,000 due to higher grant-funded program activity. Internal R&D expenses decreased 47% to $333,000, reflecting disciplined spending. G&A expenses increased 18% to $1.7 million, driven by higher rebranding and business development costs. Net loss was $2.1 million or $0.06 per share, compared to $1.8 million or $0.06 per share in the prior year period. Q: How is the company's distribution strategy evolving, and what role do partners play? A: Joe Hazelton (President and COO): Our distribution strategy is intentionally capital efficient. Rather than building a large direct commercial organization, we combine selective direct sales with distributors and OEM partners that have existing customer relationships and global reach. ProLiant has begun commercializing Albufree DX recombinant human albumin and plans to launch Albufree TX and Albufree CGT. Enzymes' non-animal bovine Cognosin is generating commercial sales, and Firmbox Bio has expanded commercialization around recombinant DNase 1 and transferrins. These relationships create multiple revenue pathways through direct sales, partner sales, milestones, royalties, and licensing. Q: What progress has been made in the bioindustrial segment, particularly with the new cellulase products? A: Joe Hazelton (President and COO): In July, we announced new proprietary industrial cellulase products engineered for advanced fiber modification applications, including pulp biorefining, microcrystalline cellulose, and nanocellulose production. This program builds on the commercialization of N3Zyme and demonstrates DAPIBIS as a repeatable product development platform across multiple enzyme classes. The shared microbial production strains and development infrastructure help streamline strain development, process optimization, and scale-up as additional products move through the pipeline. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Dyadic to host earnings call on August 12 at 5:00 pm ET JUPITER, Fla., Aug. 12, 2026 (GLOBE NEWSWIRE) -- Dyadic International, Inc. (“Dyadic”, “we”, “us”, “our”, or the “Company”) (NASDAQ: DYAI), d/b/a Dyadic Applied BioSolutions, a global biotechnology company producing precision-engineered, animal-free proteins and enzymes for diverse commercial applications, today reported its financial results for the second quarter ended June 30, 2026, highlighting significant progress in product commercialization, strategic partnerships, and C1 biomanufacturing platform expansion. “Our strong second-quarter performance underscores Dyadic’s ongoing transformation into a commercial-stage biotechnology leader, “said Joe Hazelton, President and COO. “We are driving commercial launches and sales of recombinant proteins, securing recurring revenue through strategic partners, distribution and optimizing manufacturing yields across life sciences, food and nutrition, and bioindustrial markets. Simultaneously, leading global health, government, academic and industry collaborations continue to validate the speed, productivity, scalability and potential commercial viability of our proprietary C1 expression system, while advancing C1-produced antibodies, vaccine antigens and other biologics toward broader preclinical evaluation and potential future clinical and commercial adoption.” Recent Company Developments Commercial Sales & Product Shipments: Advanced the recombinant protein portfolio through Q2 product shipments directly and through distribution partners. Subsequent to quarter-end, Dyadic completed shipments of six distinct recombinant protein products and generated initial pilot sales of recombinant transferrin and growth factors for cultivated-meat applications. OEM Distribution Progress: Initiated Q2 shipments to IBT Bioservices under Dyadic’s OEM distribution agreement, with additional shipments completed after quarter-end, supporting product evaluation, qualification and commercialization across IBT’s global life-science customer network. Proliant Health & Biologicals: Proliant has begun commercialization of Albufree™ DX recombinant human albumin for life science and diagnostic applications and announced plans to expand the Albufree™ portfolio with Albufree™ TX for cell culture and Albufree™ CGT for cell and gene therapy applications, positioning Dyadic for future royalties. Fermbox Bio: Scaled commercialization and initial orders for recombinant DNase I (RNase-free) and recombinant human transferrin. Inzymes: Confirmed initial commercial sales of non-animal bovine chymosin, with a second product in development that could trigger milestone payments and royalties. Cell Culture & Life-Science Products: Continued advancing animal-free recombinant proteins for cell-culture and related applications. Pilot-scale process improvements increased recombinant human transferrin productivity by approximately 80%, further supporting the potential for competitive manufacturing economics as Dyadic advances transferrin, albumin, growth factors and other recombinant animal-free proteins toward broader commercial use. Food & Nutrition Pipeline Expansion: Initiated scale-up activities with BRIG BIO for recombinant bovine alpha-lactalbumin under a funded development agreement. Subsequent to quarter-end, Dyadic expanded its precision-fermented dairy protein portfolio through an additional development and commercialization agreement, broadening potential opportunities to generate future product, licensing and royalty revenues. Global Health Programs: Advanced Gates Foundation-funded RSV and malaria monoclonal antibody (“mAb”) programs, with C1-produced antibodies demonstrating high productivity and functional characteristics comparable to established mammalian-cell reference materials. Funding is in place to advance these programs, and Dyadic is working toward delivery of C1-produced material to support initiation of preclinical studies with one or both mAbs, providing an additional opportunity to support potential future clinical and commercial adoption.Continued C1 development with CEPI/Fondazione Biotecnopolo di Siena (“FBS”) to accelerate protein-vaccine antigen development and advancing NIAID-supported preclinical evaluation of C1-produced malaria antigens. Rapid Pandemic Response Capabilities: Demonstrated C1’s platform agility by producing, purifying and delivering two Scripps-designed Bundibugyo ebolavirus (“BDBV”) antigens to Scripps Research and FBS in approximately 15 days from plasmid to purified protein. The antigens are undergoing further characterization and may support future preclinical evaluation, subject to program priorities, additional evaluation and available funding. Government, Academic & Industry Adoption: Continued monoclonal antibody development with the Israel Institute for Biological Research (“IIBR”) and expanded access to C1 strains, processes and development capabilities for academic and industry partners evaluating next-generation vaccines and therapeutics. Dyadic is also pursuing several potential monoclonal antibody programs through the European Vaccines Hub/FBS ecosystem, as well as opportunities with prospective first-time C1 collaborators. Financial Highlights Cash Position: As of June 30, 2026, cash, cash equivalents, restricted cash, and the carrying value of investment-grade securities, including accrued interest, were $4,794,798 compared to $8,587,289 as of December 31, 2025. Revenue: Total revenue for the three months ended June 30, 2026 was $961,138, representing a decrease of $5,492 or 0.6% compared to $966,630 for the three months ended June 30, 2025. The slight decrease was driven by a $89,563 decrease in research and development revenue resulting from the reduction in the numbers and size of collaboration activities, and the absence of a $250,000 milestone revenue recorded in 2025, partially offset by a $334,071 increase in grant revenue from activities under the CEPI and Gates Foundation grants. Cost of Revenue: Total cost of revenue for the three months period ended June 30, 2026 was $984,165, representing an increase of $370,574 or 60.4% compared to $613,591 for the three months ended June 30, 2025. The increase was due to a $395,709 increase in cost of grant revenue from activities under the CEPI and Gates Foundation grants, partially offset by a $25,135 decrease in the cost of research and development revenue. R&D Expenses: Research and development expenses for the three months ended June 30, 2026, were $332,621, a decrease of $296,758 or 47.2% compared to $629,379 for the same period in 2025. The decrease was due to reduction in the number of active internal research initiatives. G&A Expenses: General and administrative expenses for the three months ended June 30, 2026, were $1,689,863, an increase of $253,233 or 17.6%, compared to $1,436,630 for the same period in 2025. The increase was due to higher rebranding and business development expenses of $322,638, increased legal and accounting expenses of $115,836, and other expenses of $43,639, partially offset by a decrease in share-based compensation expenses of $196,408 and incentives of $32,472. Loss from Operations: Loss from operations for the three months ended June 30, 2026 was $2,054,204, an increase of $325,136 or 18.8%, compared to $1,729,068 for the same period in 2025. The increase was largely attributable to higher total cost of revenue of $370,574 and higher general and administrative expenses of $253,233, partially offset by lower research and development expenses of $296,758. Net Loss: Net loss for the three months ended June 30, 2026, was $2,123,884 or $(0.06) per share, compared to $1,793,774 or $(0.06) per share for the same period a year ago. Conference Call Information Date: Wednesday, August 12, 2026Time: 5:00 p.m. Eastern TimeDial-in numbers: Toll Free: +1-877-407-9219 / +1 412-652-1274Conference ID:13761129Webcast Link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=b9s8dhjS An archive of the webcast will be available within 24 hours after completion of the live event and will be accessible on the Investor Relations section of the Company’s website at www.dyadic.com. To access the replay of the webcast, please follow the webcast link above. About Dyadic Applied BioSolutions Dyadic Applied BioSolutions is a global biotechnology company that uses its proprietary microbial platforms to produce recombinant proteins that are sold or licensed to partners across the life sciences, food and nutrition, and bio-industrial markets. These high-quality proteins are designed to enable customers to develop more efficient, scalable, and sustainable products. Dyadic’s Dapibus™ and C1 expression systems support flexible, cost-effective manufacturing, and are the foundation of a growing portfolio of commercial and partnered programs. For more information, please visit http://www.dyadic.com. Safe Harbor Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, including those regarding Dyadic International’s expectations, intentions, strategies, and beliefs pertaining to future events or future financial performance, such as the success of our clinical trial and interest in our protein production platforms, our research projects and third-party collaborations, as well as the availability of necessary funding. Forward-looking statements generally can be identified by use of the words “expect,” “should,” intend,” anticipate,” “will,” “project,” “may,” “might,” “potential,” or “continue” or other similar terms or variations of them. Forward-looking statements involve many risks, uncertainties or other factors beyond Dyadic’s control. These factors include, but are not limited to, the following: (i) our history of net losses, and management’s related conclusion that there is substantial doubt about our ability to continue as a going concern for the 12 months following June 30, 2026; (ii) market and regulatory acceptance of our microbial protein production platforms and other technologies; (iii) failure to commercialize our microbial protein production platforms or our other technologies; (iv) competition, including from alternative technologies; (v) the results of nonclinical studies and clinical trials; (vi) our capital needs and the dilutive impact of a capital raise to mitigate our going-concern risk; (vii) changes in global economic and financial conditions; (viii) our reliance on information technology; (ix) our dependence on third parties; (x) government regulations and environmental, social and governance issues; (xi) intellectual property risks; and (xii) our ability to comply with the listing standards of the Nasdaq Stock Market LLC. For a more complete description of the risks that could cause our actual results to differ from our current expectations, please see the section entitled “Risk Factors” in Dyadic’s annual reports on Form 10-K and quarterly reports on Form 10-Q filed with the SEC, as such factors may be updated from time to time in Dyadic’s periodic filings with the SEC, which are accessible on the SEC’s website and at www.dyadic.com. All forward-looking statements speak only as of the date made, and except as required by applicable law, Dyadic assumes no obligation to publicly update any such forward-looking statements for any reason after the date of this press release to conform these statements to actual results or to changes in our expectations. Contact: Dyadic International, Inc.Ping RawsonChief Financial OfficerPhone: (561) 743-8333Email: [email protected] See Notes to Consolidated Financial Statements in Item 1 of Dyadic’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 12, 2026. See Notes to Consolidated Financial Statements in Item 1 of Dyadic’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 12, 2026.

JUPITER, Fla., Aug. 03, 2026 (GLOBE NEWSWIRE) -- Dyadic International, Inc. d/b/a Dyadic Applied BioSolutions ("Dyadic", "we", "us", "our", or the "Company") (Nasdaq: DYAI), a global biotechnology company focused on the scalable production of high-value, precision engineered functional input proteins for use in life sciences, food and nutrition, and industrial biotechnology applications utilizing its proprietary gene expression platforms, today announced that it will report its financial results for the quarter ended Jun 30, 2026 and host a corporate update conference call on Wednesday, August 12, 2026. Conference Call InformationDate: Wednesday, August 12, 2026Time: 5:00 p.m. Eastern TimeDial-in numbers: Toll Free: +1-877-407-9219 / +1 412-652-1274Conference ID: 13761129 Webcast Link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=b9s8dhjS An archive of the webcast will be available within 24 hours after completion of the live event and will be accessible on the Investor Relations section of the Company's website at www.dyadic.com. To access the replay of the webcast, please follow the webcast link above. If you have any questions that you would like to ask management during the Q&A session, please email [email protected] prior to the conference call. About Dyadic Applied BioSolutions Dyadic Applied BioSolutions is a global biotechnology company that uses its proprietary microbial platforms to produce recombinant proteins that are sold or licensed to partners across the life sciences, food and nutrition, and bio-industrial markets. These high-quality proteins are designed to enable customers to develop more efficient, scalable, and sustainable products. Dyadic's C1 and Dapibus™ expression systems support flexible, cost-effective manufacturing, and are the foundation of a growing portfolio of commercial and partnered programs. For more information, please visit www.dyadic.com. Safe Harbor Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including those regarding Dyadic International's expectations, intentions, strategies, and beliefs pertaining to future events or future financial performance, such as the success of our clinical trial and interest in our protein production platforms, our research projects and third-party collaborations, as well as the availability of necessary funding. Actual events or results may differ materially from those in the forward-looking statements because of various important factors, including those described in the Company's most recent filings with the SEC. Dyadic assumes no obligation to update publicly any such forward-looking statements, whether because of new information, future events or otherwise. For a more complete description of the risks that could cause our actual results to differ from our current expectations, please see the section entitled "Risk Factors" in Dyadic's annual reports on Form 10-K and quarterly reports on Form 10-Q filed with the SEC, as such factors may be updated from time to time in Dyadic's periodic filings with the SEC, which are accessible on the SEC's website and at www.dyadic.com. Contact:Ping RawsonDyadic Applied BioSolutionsChief Financial OfficerPhone: (561) 743-8333Email: [email protected]

Image source: The Motley Fool. Wednesday, March 25, 2026 at 5 p.m. ET President and Chief Operating Officer — Joseph Hazelton Chief Executive Officer — Mark Emalfarb Chief Financial Officer — Ping Rawson Need a quote from a Motley Fool analyst? Email [email protected] Joseph Hazelton: Thanks, Ping, and thank you, everyone, for joining us today. As we recently held our full year 2025 earnings call, today, we want to build on the updates we provided in March by focusing on the continued operational and commercial progress we're making across the business and why we believe Dyadic is increasingly well positioned for the future. Over the last several years, we have worked to transform Dyadic from a platform technology company into a commercially focused biotechnology company capable of generating recurring revenues from products, partnerships, licensing opportunities and strategic collaborations. While we're still in the early stages of that transition, we believe the progress made during 2025 and into 2026 demonstrates that the business today is materially different than it was even a year ago. Importantly, products enabled by our microbial production platforms are now entering commercial channels. We have products launched, products being shipped, products being sampled by customers and products beginning to generate revenues through direct sales, OEM distribution, milestone payments, profit-sharing arrangements and strategic partnerships. For investors, the key point is that Dyadic is building multiple potential paths to revenue creation rather than relying on a single product or market opportunity. A strong example is Proliant Health & Biologics' commercial launch of Albufree Dx recombinant human albumin produced using Dyadic's platform technology. Dyadic is eligible to receive a share of the profits from product sales. We believe the significance of this launch extends beyond the economics themselves. It demonstrates that the established industry participants are willing to commercialize products produced using our technology platform and bring them into commercial channels. Similarly, Inzymes has now commercialized recombinant non-animal bovine chymosin after successfully achieving developmental milestones. This is another important validation point for our technology and commercialization models. As additional partners bring products to market, we believe awareness and interest in our platforms will continue to increase. Since these launches and partnership announcements, we've seen growing inbound interest from potential partners, distributors and customers evaluating our technology for additional proteins and enzymes across life sciences, food and nutrition and industrial applications. Our strategy is around -- centered around leveraging our proprietary C1 and Dapibus microbial production platforms to produce animal-free proteins and enzymes for large and growing global markets where scalability, manufacturing economics, supply chain reliability and sustainability matter. We believe our technology is particularly well suited for these markets because the many products we target require stable manufacturing, competitive economics and consistent quality. Traditional production systems can be expensive, difficult to scale or dependent on animal-derived inputs. Our platforms are designed to address those challenges while enabling partners and customers to move toward more sustainable and animal-free solutions. In life sciences, we are focused on recombinant proteins and enzymes used in cell culture media, diagnostics, molecular biology and bioprocessing applications. These are attractive markets because many products are consumables that generate recurring demand once qualified into customer workflows. For example, recombinant transferrin is used in serum-free and animal-free cell culture media and support cell growth and viability. Demand for transferrin can scale alongside growth in cultivated meat, biologics manufacturing and advanced cell culture applications. During the quarter, we continued to expand customer engagement around recombinant bovine transferrin and received initial purchase orders within the cultivated meat segment. While still early, we believe this is an important indicator of market adoption. These markets typically develop through a progression of evaluation, sampling, qualification, initial purchasing and ultimately repeat ordering as customer production scales. We also continue to advance recombinant growth factors and additional cell culture components designed to support broader transition towards animal-free media systems. Another important milestone was our OEM distribution agreement with IBT Bioservices. Through this relationship, IBT will commercialize Dyadic recombinant products, including DNase-1 and transferrin through its established global distribution channels. We believe this is strategically important because it expands market reach while allowing Dyadic to remain capital efficient. DNase-1 represents another example of how we intend to commercialize products across multiple channels. Together with Fermbox Bio, we commercially launched recombinant animal origin-free DNase-1 earlier this year, and DNase-1 is broadly used in molecular biology, diagnostics and bioprocessing workflows. In Food and Nutrition, we remain focused on large global markets where animal-free proteins may provide functional sustainability and supply chain advantages. Our agreement with BRIG BIO for development of recombinant bovine alpha-lactalbumin is an example of this strategy. Alpha-lactalbumin is a key whey protein with applications in infant nutrition, medical nutrition and functional food products. Under the agreement, development work is underway, including product optimization and application testing with customer sampling currently expected to begin in mid-2026. We're also continuing development activities for recombinant human lactoferrin, another high-value functional protein with applications across nutrition and wellness markets. Importantly, we're prioritizing opportunities where our platforms can address markets that are both large and recurring. We believe this creates the potential for long-term value creation as customers increasingly seek scalable, animal-free and cost-effective production alternatives. In bioindustrial markets, our partnership with Fermbox Bio continues to advance manufacturing scale-up and commercialization activities across multiple products. Fermbox provides an efficient pathway to manufacturing capacity and commercial scale without requiring Dyadic to build significant internal infrastructure. Their EN3ZYME product produced using our Dapibus technology previously fulfilled its first large-scale commercial order and continues expanded sampling activity into additional geographic markets, including Asia Pacific. Across all these initiatives, our commercial strategy remains disciplined and focused. We're emphasizing larger strategic partnerships, leveraging established commercial channels where possible, expanding direct product opportunities selectively and maintaining careful expense management while we continue building the business. We also recognize that investors remain focused on financial performance and stock price, and we understand that Dyadic is still viewed by many as a company in transition. However, we believe the operational progress we made over the last year meaningfully differentiates the business today from where it has been historically. Importantly, this evolution also represents a return to Dyadic's roots. Prior to focusing on biotechnology platform development, Dyadic successfully developed, manufactured and commercialized industrial enzymes globally. Today, we're leveraging the technologies and intellectual property developed over the past decades to build a product-driven business focused on recombinant proteins and enzymes across life sciences, food and nutrition and industrial markets. We now have products commercially launched, product shipments underway, initial purchase orders, established distribution relationships, manufacturing partners and multiple opportunities to build recurring product revenues through direct sales, licensing milestones and strategic collaborations. While we recognize that investors ultimately want to see sustained revenue growth and broader commercial adoption, we believe the underlying foundation of the business continues to strengthen. We now have multiple products commercialized or entering commercial channels, a growing partner network, increasing manufacturing capabilities, expanding geographic reach and a broader set of opportunities to generate future revenues. We believe where Dyadic is heading today is significantly stronger than where the company has been historically, and we remain focused on executing that transition responsibly, efficiently and methodically. With that, I'm going to turn the call over to Mark to discuss our biopharmaceutical programs and broader strategic implications for our technology platform. Mark? Mark Emalfarb: Thank you, Joe. While Dyadic's primary commercial focus remains on non-pharmaceutical markets, our biopharmaceutical activities continue to play an important strategic role by validating the capabilities of the C1 platform, generating non-dilutive funding and creating potential future licensing and partnership opportunities. Our approach in biopharma remains disciplined, capital efficient and partner-driven. Rather than independently funding large clinical development programs, we are collaborating with government agencies, global health organizations, academic institutions and industry partners that recognize the potential advantages of flexible and scalable biologic manufacturing technologies. Through collaborations with organizations, including the Gates Foundation and CEPI in collaboration with Fondazione Biotecnopolo di Siena, we continue advancing programs involving monoclonal antibodies and recombinant vaccine antigens while generating additional data, supporting the scalability, flexibility and manufacturing advantages of the C1 platform. Our Gates Foundation supported collaboration funded under an approximately $3 million grant program continues advancing low-cost monoclonal antibodies targeting RSV and malaria with ongoing studies demonstrating comparability between certain C1 produced monoclonal antibodies and CHO-derived antibodies, the current industry standard. We also continue advancing activities under the CEPI supported collaboration through Fondazione Biotecnopolo di Siena, where Dyadic is eligible to receive up to approximately $2.4 million to support recombinant vaccine development, scale up, supporting future manufacturing capabilities and speed to market. Importantly, these programs continue generating data supporting the ability of the C1 platform to rapidly develop and scale complex recombinant proteins, including monoclonal antibodies and vaccine antigens. Beyond these programs, we remain engaged across a broader portfolio of government-supported and partner-funded initiatives involving respiratory viruses, malaria, MERS, rabies and as evidenced by recent events, additional emerging infectious disease applications. Importantly, these collaborations continue expanding the body of data supporting the versatility of the C1 platform across multiple protein classes and therapeutic targets, while also positioning Dyadic for potential future licensing opportunities, milestone payments, royalties, technology access agreements, strategic partnerships and manufacturing relationships. At the same time, we are beginning to see meaningful commercialization progress across our non-pharmaceutical businesses through product launches, initial customer orders, commercial shipments, manufacturing partnerships, distribution relationships and expanding business development activities involving recombinant animal-free proteins and enzymes. We believe these commercial activities not only create potential revenue opportunities, but help validate the scalability and broader applicability of our underlying production platforms. Taken together, we believe Dyadic is continuing to build a diversified opportunity set that combines near-term commercial product opportunities with longer-term strategic platform value. With that, I'll turn the call back over to Ping to review the financial results for the quarter. Ping Rawson: Thank you, Mark. I will now go over our key financial results for the first quarter of 2026 in more detail. You can find additional information in our earnings press release and Form 10-Q, which we filed earlier today. Total revenue for the 3 months ended March 31, 2026, was approximately $1.1 million, representing an increase of 182% compared to approximately $394,000 for the first quarter of 2025. The increase was driven by higher research and development revenue of $220,000, including the Proliant Agreement, ongoing grant revenues of $277,000 funded by CEPI and the Gates Foundation as well as milestone revenue of $200,000 recognized under the Inzymes Agreement. Total cost of revenue for the quarter was approximately $792,000 compared to approximately $298,000 for the first quarter of 2025. The increase was primarily related to higher activity levels associated with our research and development and grant funded programs, particularly under the CEPI and the Gates Foundation initiatives. Internal research and development expenses decreased modestly to approximately 4% year-over-year to approximately $476,000, primarily reflecting a slight reduction in the number of active internal research and commercial initiatives during the quarter. G&A expenses increased by $159,000 or 10% year-over-year to approximately $1.8 million. The increase was primarily driven by higher legal and accounting expenses of $221,000 and rebranding and business development activities, partially offset by lower share-based compensation expenses of $110,000 and reduced insurance costs. Loss from operations improved by approximately 5% year-over-year to approximately $1.9 million compared to approximately $2 million in the prior year period. The improvement was mainly driven by the significant increase in revenue and lower research and development expenses, partially offset by higher costs associated with revenue-generating activities and increased G&A expenses. Net loss for the quarter was approximately $1.95 million or $0.05 per share compared to approximately $2.03 million or $0.07 per share for the same period a year ago. We ended the first quarter of 2026 with approximately $6.6 million in cash, cash equivalents, restricted cash and investment-grade securities. Looking ahead through the remainder of 2026, we expect to see growth in product revenues across our Life Sciences and Food and Nutrition business, supported by recent product launches, expanding commercial activities and growing customer engagement. We remain focused on building recurring revenue opportunities while maintaining disciplined cash management and keeping operating expenses generally in line with 2025 levels. As we discussed on our year-end call in March, we continue to believe our existing cash resources will provide cash runway into Q2 2027. We will also continue to evaluate strategic partnerships and capital markets opportunities to further strengthen our balance sheet and support long-term growth. With that, I will now ask the operator to begin our Q&A session. Each caller will be allowed one question and one follow-up question to provide all callers with an opportunity to participate. If time permits, the operator will allow additional questions from those who have already spoken. I will ask the operator to begin our Q&A session, after which Joe Hazelton will provide closing remarks. Operator? Operator: [Operator Instructions] The first question comes from the line of Matt Hewitt with Craig-Hallum Capital Group. Matthew Hewitt: Congratulations on your progress. Maybe first up on the recombinant bovine transferrin that you've sent initial customer orders out now. How should we be thinking about that ramp, not just this year, but I guess, over the next couple of years? Do you anticipate a nice steady growth in that? Or is it going to be fits and starts at least here out of the gate? Joseph Hazelton: Actually, it's a great question, Matt, and thanks for asking. It's -- I anticipate it's going to be steady, but I don't think it will be like hockey stick level growth. What we're seeing is the initial pilot scales are starting to grow, which obviously we're talking small kilogram orders, right? And then as we move into actual commercial production, we see cultivated meat approved by regulatory bodies, that's when you'll see the volume start to significantly increase because obviously, the amounts needed will start to grow. But each individual product needs to be approved, similar to how things work in the biopharmaceutical side. So if you're doing a stake, that stake gets approved for a specific animal cell line. And then obviously, they could do a different animal cell line and another product gets approved. So as these grow, I think it will be sustained growth, but I don't think it will be significant. But I think the bigger market is also that it's not just cultured meat. Bovine transferrin is also used in serum-free cell culture applications and diagnostics as well as other bioprocessing and biomanufacturing workflows. So we'll start to see an increase in our research use in that category as well. So it's not just cultivated meat, but we're also looking at IBT will be launching this product as well. So we'll start to see revenues coming from other places. Matthew Hewitt: Got it. Super helpful. And then maybe a follow-up question for Mark. And I think you may have hinted at this a little bit in your prepared remarks. But during COVID, there was a lot of commentary about how C1 could help accelerate and expand the opportunity for COVID vaccines. And obviously, there's been a lot of headlines over the past couple of weeks regarding the Hantavirus. And I'm just curious if that creates or if that presents a similar type opportunity and whether or not you think that C1 could help with potential vaccines for that virus as well. Mark Emalfarb: Yes, Matt, thanks. It's a good question. I don't think we could help. I know we could help. We've developed the technology that's even better than it was during COVID. During COVID, we were faster, quicker and cheaper than, let's say, Sanofi and Novavax's insect cell technologies by many times. But in the CEPI program, this is what's important because when we look at why we're funding through third parties, CEPI, Gates, et cetera, is we're continuing to advance the technology as good as it was, it's a lot faster and it's a lot better today in terms of the ability to get there faster to produce more with higher quality complex proteins. And to be honest, in the CEPI program, which we're running with Rino Rappuoli with the Fondazione Biotecnopolo di Siena, we've demonstrated now from the plasmid once we get a codon-optimized plasmid with under 3 weeks, we can have stable cell lines run fermentations and purification to the initial stage of purification of high-yield, high-quality proteins that match binding and neutralization for antibodies and of course, obviously, neutralization for the vaccines. And I think it's important in the monoclonal antibody, not just by vaccines, there really, I think, elephant in the room is monoclonal antibodies. And we -- during COVID, there was a 1% deadly disease. If this thing is 35%, 40%, 30%, even 10% deadly and people get infected, you need antibodies. You don't need a vaccine this too late. And so we can get to those antibody proteins much faster in larger volumes, much more affordably without having to remove viruses. So this funding is really critical not only for Dyadic, but quite frankly, for humanity. Joseph Hazelton: And I think the only thing I'd add to that, Matt, is, as Mark pointed out, we are in a different place. We also have first-in-human data. So between COVID and today, we completed a Phase I study that demonstrated a C1 protein was safe and effective for use in a human application. We also have nonhuman primate studies completed with some monoclonal antibodies. So when you look at derisking the platform for human therapeutics, I think in a pandemic situation, we're in a much stronger point. So again, obviously, no one hopes for a pandemic situation. But should things start to turn, we're in a much better position for funding opportunities and obviously, those types of things as we move forward. So we're obviously going to continue to focus in that area. Operator: The next question comes from the line of John Vandermosten with Zacks. John Vandermosten: I'd like to dig into the relationship with Intralink. Joe, I recall -- maybe I don't remember correctly, but I thought you were heading to Asia to talk to some prospects that they identified. Can you tell us how that's been going with them? And if you've made any movement with any of the people that they connected you with? Joseph Hazelton: Absolutely, John, and great question. Yes, we've actually expanded our agreement that was in the press release as well to include Europe now. So essentially, they expand our business development footprint very cost efficiently. So they're out there being able to target and at least generate the initial customer development. And obviously, then Mark and I have to come in at some point as we continue to progress those. We've had what I think is significant success, at least initially in Japan with getting customer engagement. We're in the process of identifying product opportunities. We've shipped samples to some of the customers. But I really think they give us the added horsepower that obviously I don't have or the Mark doesn't have available as we're doing 100 other different things, but they give us the capability to keep these customers moving towards revenue agreements that we don't have internally today, but much more cost effectively. So -- and they're well entrenched. They actually were headquartered and based in Japan. So they're well entrenched in Asia Pacific. They do have a very strong team in the EU as well. So now that's kicking off, I anticipate we'll start to see increased sampling activity and hopefully increased product purchases as we move forward. But they really help me from a distribution standpoint, also finding out which distributors are ready for these products, which ones we can target to move products faster and obviously, which ones are focused in the same areas that we are like cell culture media and molecular biology workflow. So it definitely helps us focus our efforts in the right places and supports our activities, our business development activities in those areas. John Vandermosten: Okay. And another line item in the press release was about the IBT arrangement. And I wanted to see what the next steps were. What are the next steps after the support channel receives the inventory? Joseph Hazelton: After the support channel, essentially, I guess, I'll let you know, the product actually shipped this week. So we're shipping our first products, which are DNase-1 and transferrin. We will have other products that they will be putting into the channels as well. We'll be looking at things like recombinant alpha-lactalbumin, human alpha-lactalbumin for cell culture applications, human transferrin as well. So there'll be multiple products, but we started with DNase-1 and bovine transferrin because those are ready to go. But those products have shipped. They now will then start to distribute that throughout their global distribution network. And then their sales teams then in turn, go out to the individual customers, so academic institutions, hospitals, in some cases, research organizations. So right now, we're selling research use products. So those are the types of organizations that their teams will be focused on. So again, it basically takes our products, gives us a sales force and gets them into the market. Operator: [Operator Instructions] The next question will come again from the line of John Vandermosten with Zacks. John Vandermosten: Ping, the next question was for you. Now that we're coming up on midyear, what's your best guess on cash burn? Ping Rawson: John, good question. I think that's the question everybody is interested in. As you see from the press release at the end of March, we have $6.6 million cash, cash equivalent, restricted cash and investment-grade securities. As I mentioned earlier, we expect to have the same level of cash burn as previous years, which we are less than $5.7 million last year. So we expect the same level, if not less than that, which means we will have enough cash runway into next year this time at least. Joseph Hazelton: Operator, are there any further questions? Operator: No. There are no further questions. And well, actually, sorry, there -- we do have a question from Luis Garcia, who is a private investor. Unknown Attendee: Okay. Just a couple of questions here. Are we -- I noticed that Codexis sort of doing a lot of things. Do we have anything still hooked up with them where we might get some royalties from products that they produce? Or do they use any C1 and anything of their -- that they produce? Mark Emalfarb: Yes. We don't have anything that's publicly reportable with Codexis from the past. If you remember, we sold that business to DuPont for $75 million. So nothing is going there. But there have been discussions in the past in the recent months of where we might have some benefits for each other. Unknown Attendee: Okay. How about -- have we already received some royalties from Fermbox and things that we've done? Or is that still sort of like in the pipeline? Joseph Hazelton: It's in the pipeline. We expect we will see them in 2026. We obviously, our focus is on growing the products right now, but we do expect to see the initial revenues, at least from the bioindustrial products in 2026. So that is anticipated. Unknown Attendee: Okay. One more. Phibro, they've been doing -- using our products and doing research. Is there any time -- sort of time frame where you think we might be able to start finally getting something going on their end because their stock has also been doing very well. And just see if we can sort of jump in on that bandwagon with them if they were to throw something our way. Joseph Hazelton: It's a great point. And honestly, it's also an example of one of the reasons why we shifted towards non-pharmaceuticals. While the partnership itself has -- what I think it's been tremendous. They've invested a lot of time and effort into bringing a poultry vaccine to market. They still have a little bit of ways to go. My anticipation is they will be in clinical trials this year, which could put an approval in the next 12 to 24 months. It also depends on how quick and how stacked up the regulatory authorities are in the EU and in the U.S., depending on where they're going to launch first. But we will have some milestones associated with some of the regulatory approval process. But I do think that there should be some news flow coming out potentially in 2026, but definitely in 2027 around Phibro. Mark Emalfarb: And just to add some color, I mean that's been very successful from the technology side, our side in terms of the yield and the performance. And so as Joe said, we're going to expect some milestones and potential, hopefully, an expansion maybe potentially their license as well to go into different vaccines that aren't included in what they have now. Joseph Hazelton: But then again, it's -- they're kind of right in the time frame. I mean it takes 5 to 7 years to bring a new product to market in that space. And there we signed the deal, I think, in 2018. And here we are 7 years later, they're getting ready to move into clinical phases. So again, it's right on time, but just slower than we'd like, which is why we're moving towards the non-pharmaceutical products. Operator: The next question comes from the line of Glenn Primack with Luca Investment Group. Glenn Primack: I'm guessing like, boy, you guys have -- don't have a lot of spare time for playing golf or anything. It's quite amazing how much you've accomplished. And I have to imagine, Mark's probably phone is off the hook with Hantavirus. And Joe, everything I've been reading in these trade journals on like shortages of whey and these food companies can't get proteins, your distributors have to be maybe kind of excited to get your solution out there. With that said, Ping, what do you think -- are you guys going to need to add some bodies headcount-wise come '27 as you continue to ramp? Joseph Hazelton: Glenn, it's a great question. I mean, obviously, we're going to do -- anything we do in that nature is going to be judiciously and basically driven by product sales. So as things start to scale, we will need additional support operationally just for product shipments, product manufacturing. That does take a significant amount of time to get products labeled correctly, make sure they get out the door. But not something we're going to do immediately, but it is on the radar as these products start to scale, but it's going to be revenue dependent. As things start to move, we will look at which parts of the company we need to support further and pull that up. But obviously, our main focus right now is on getting more product into the market, so the revenues start to drive, and then we'll look to improve our capability internally. But it's a great question. Mark? Mark Emalfarb: Yes. Well, I mean, I think as Joe pointed out, we just hired IDT to go after the European market because they've done a great job in Japan. And so we now have experience with their sales team, at least in the Japanese and their oversight in the general manager. And we now believe that going after the European market on the cell culture media, DNase-1, RNA enzymes, cultured meat, cell and gene therapy, all the things that we're launching and have launched and are launching like transferrin and albumin with Proliant, we need more people, and we're doing it judiciously. Joe said, in this case, it's IDT, but we've hired them as our sales force, so we don't have to go hire people. And they have the contacts that we don't have. So this will be a faster way to get to the market. Glenn Primack: Got it. And the margins are still really, really, really, really good. I hope you guys get some rest this weekend just a little bit, and I hope to see you at the Biotech show in San Diego in June. Joseph Hazelton: You certainly will. We'll be there, Glenn. Operator: The next question comes from the line of Tony Bowers with Intro-act. Tony Bowers: Joe, nice progress. I wonder if you could just reflect on the nutritional market, what the potential is for cultured meat demand for your ingredients versus the non-animal dairy. I think cultured meat seems -- it's been struggling to take off the non-animal dairy side. I think there's got to be a huge conceptual demand. And with agricultural inputs going up, that can only help. Joseph Hazelton: And Tony, it's a great question. And obviously, you always have great insight into the market, and you're exactly right. The demand, as I would say, is more acute in cultured meat because they realize in order to compete in the market, they have to drastically reduce their production costs. Similarly, it's a similar problem in the non-animal dairy space, but it's a little different in that you're competing with milk-derived products. So it's about scale. You have to be able to produce these at large scales and lower cost to compete with milk. So they both need to lower cost just in a little bit 2 different ways. So I think that's also why we have an advantage. I think cultured meat, like I said, the demand is more acute because they are in pilot phase and they are seeking regulatory approvals. So if they get the regulatory approval, they have to be able to bring the cost of the final product down if they're going to be able to compete beyond high-end uses in restaurants. So I think that will have to remain to be seen. On the non-animal dairy side, that is going to continue to pick up, but it is all about scale. Obviously, I think you saw what happened with perfect Day. There's a little -- there's a scarcity of protein in that -- or non-animal protein in that segment, and I do believe we can help to fill that gap. But it is about being able to scale the production strains up to the levels necessary to compete in the market. And that's what we're focused on right now. But you're 100% right, there's a lot of demand there in both segments, but I do think the nearer-term opportunity for us, at least in terms of direct revenues is just going to be cultured meat for a little while as we start to ramp and scale in non-animal dairy. But overall, non-animal dairy will cultured meat as a market for the foreseeable future. I mean that's just the way it is. Tony Bowers: Which geographies do you think will have the least regulatory problem on the meat side? Joseph Hazelton: Honestly, I think the U.S. will probably have the least regulatory one, at least from our standpoint, we obviously -- we have a GRAS-certified organism. We got that in 2009. So we're using self-affirmed GRAS pathway for these products. Inzymes, they filed their self-affirmed grass this year, and they're already commercializing their bovine chymosin. And we'll use the same process for alpha-lactalbumin. So I think the U.S. market, again, at least now is a little more regulatory friendly than the EU. But I definitely -- that obviously could change tomorrow. But I think with the demand for protein and the demand for more specialized and cleaner nutrition, I don't see significant regulatory changes in the short term. Mark? Mark Emalfarb: Yes. And I think that if you recall, BASF has their own GRAS approvals in the EU and U.S. on the [indiscernible] technology platform. But it's interesting because with the situation in the Gulf with Fermbox and the Inzymes that turns biomass into sugars, renewable fuels and chemicals are potentially back in vogue and people paying attention because we can't rely on oil. And so I think that our positioning and with our technology depth of this is ideally suited to turn biomass into sugar, and we've already reentered that space with Fermbox, and they and us are trying to expand that as the situation in the Gulf continues to fester. Operator: There are no further questions at this time. And I will now turn the call back over to Dyadic's President and COO, Joe Hazelton, for closing remarks. Joseph Hazelton: Thank you. As we close, I want to emphasize what we believe is most important. Dyadic today is no longer simply developing technology platforms. We are increasingly commercializing products, supporting customers, expanding partnerships and building recurring revenue opportunities across multiple markets. We're seeing growing interest in our technologies, increasing commercial activity across our partner network and encouraging early signs of market adoption as products move from development into commercial channels. While we still have important execution work ahead, we believe the progress achieved over the past year has significantly strengthened the business and positioned us for continued operational and commercial advancement. Our focus is now straightforward, continuing scaling product sales, expand strategic partnerships and distribution channels, support customer adoption and maintain the disciplined operating approach that has allowed us to extend our runway while continuing to build the business responsibly. We remain confident about the opportunities ahead and appreciate the continued support of our shareholders, partners and employees as we continue executing our strategy. Thank you, and we look forward to updating you on our continued progress. Operator: Thank you. This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation. Before you buy stock in Dyadic International, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Dyadic International wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Dyadic (DYAI) Q1 2026 Earnings Call Transcript was originally published by The Motley Fool

By John Vandermosten, CFA NASDAQ: DYAI READ THE FULL DYAI RESEARCH REPORT Dyadic Applied BioSolutions, Inc. (NASDAQ: DYAI) announced 1Q:26 results on May 13th, 2026, and held a conference call providing additional detail after that day’s market close. Dyadic updated investors on the status of their active relationships, indicating initial purchase orders for recombinant bovine transferrin, launch of AlbuFree DX, and the launch of recombinant DNase I, among other initiatives. Dyadic continues its research work executing the Gates Foundation and Coalition for Epidemic Preparedness Innovations (CEPI) infectious disease programs. 1Q:26 Operational & Financial Results On May 13th, 2026, Dyadic released 1Q:26 operational and financial results in a press release and a Form 10-Q filing with the SEC. Further detail was provided in a conference call held with investors. Below are financial results for the three months ending March 31st, 2026, compared to the same prior year period: Revenues were $1.1 million, up 182% from $0.4 million. The change reflected a $220,000 contribution from the Proliant Agreement, along with $277,000 rise in grant income in part related to amounts from the Gates Foundation. These amounts were augmented by another $200,000 from Inzymes’ contract milestone; Cost of revenue totaled $792,000, rising 166% from $298,000 on higher research and grant revenue cost; Research and development expense was down 4% to $476,000 from $495,000 due to a decrease in the number of active internal research initiatives in support of product development; General and administrative expenses were $1.8 million vs. $1.6 million, rising 10%. Higher legal and accounting expenses, incentives, and rebranding and business development expenses contributed. These amounts were partially offset by a decrease in share-based compensation and insurance expenses; Foreign currency exchange gains were $10,000 vs. a loss of $7,000 due to fluctuations in the Euro-Dollar exchange rate; Total other expenses were $52,000 vs. $25,000 due to reduced interest income; Net loss amounted to $2.0 million, nearly unchanged. On a per share basis, net loss was $0.05 and $0.07. As of March 31st, 2026, cash, equivalents, and short-term securities totaled $6.5 million compared to $8.6 million at the end of 2025. This includes restricted cash of about $900,000 that is earmarked for work associated with the Gates Foundation Grant. Cash burn during 1Q:26 was $2.0 million compared with $1.9 million for 1Q:25. No cash from financing was recorded in the quarter. On March 6th, Dyadic entered into an At-The-Market (ATM) sales agreement with Craig-Hallum. Dyadic believes that it has sufficient cash to support operations until 2Q:27. Partnerships and Collaborations The first quarter 2026 financial and operational update reinforced Dyadic’s progress over the past 18 months as it transitions from a research-focused organization to a commercially driven business. During the quarter, the company highlighted continued advancement across the commercialization continuum, including strategic partner recruitment, customer identification, OEM distribution expansion, product launches, initial purchase orders, milestone achievements and product shipments through commercial channels. Recent developments included Dyadic’s OEM distribution agreement with IBT Bioservices, commercialization activities with Proliant and Fermbox Bio, milestone revenue recognition under the Inzymes agreement, and ongoing funded collaborations with organizations such as the Gates Foundation and CEPI. For IBT in particular, Dyadic inventory was delivered into the support channel and later shipped to customers in the days before the first quarter conference call. Management also emphasized that several recombinant protein products are now moving through global sales channels and reaching end customers, providing additional validation of the scalability and commercial applicability of the company’s C1 and Dapibus platforms. As the year progresses, we are looking to the timing, consistency, and magnitude of collections, revenues and cash flow generation. While the trajectory toward commercialization appears to be strengthening, the pace and scale of future revenue recognition remain uncertain, and we expect additional clarity to emerge over the coming quarters. Beyond the revenue opportunities, Dyadic also penned agreements with longer term impacts. The first is with Intralink Group for expanding commercial efforts in Japan and Korea. They have made progress with customer engagement in Japan, have shipped samples, and are in the process of identifying product opportunities. This relationship has now expanded to include Europe, where sampling activity is taking place. Milestones Dyadic & Proliant commercial launch of recombinant human albumin – February 2026 Inzymes’ dairy enzyme (chymosin) milestone completion & planned future commercialization – March 2026 Dyadic & Fermbox launch recombinant DNase I (RNase free) – March 2026 Commercial partnership with IBT Bioservices announced – March 2026 Participation at Sidoti Virtual Investor Conference – May 20th, 2026 SUBSCRIBE TO ZACKS SMALL CAP RESEARCH to receive our articles and reports emailed directly to you each morning. Please visit our website for additional information on Zacks SCR. 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This article first appeared on GuruFocus. Release Date: May 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Dyadic International Inc (NASDAQ:DYAI) reported a significant revenue increase of 182% year-over-year, reaching approximately $1.1 million for Q1 2026. The company has successfully launched multiple products, including Albufree DX and recombinant non-animal bovine kinosin, demonstrating the commercial viability of its technology. Dyadic's strategic partnerships, such as with IBT BioServices and Firmbox Bio, are expanding its market reach and distribution capabilities. The company is leveraging its proprietary C1 and Dapivus microbial production platforms to produce animal-free proteins and enzymes, targeting large and growing global markets. Dyadic's biopharmaceutical programs, supported by collaborations with organizations like the Gates Foundation and CEPI, are generating non-dilutive funding and potential future licensing opportunities. Despite revenue growth, Dyadic International Inc (NASDAQ:DYAI) reported a net loss of approximately $1.95 million for the quarter. The company is still in the early stages of transitioning from a platform technology company to a commercially-focused biotechnology company, which may pose operational challenges. There is uncertainty regarding the ramp-up of recombinant bovine transferrin sales, as it depends on regulatory approvals and market adoption. Dyadic's reliance on strategic partnerships and collaborations means its growth is partially dependent on external partners' success and timelines. The company faces competition in the non-animal dairy and cultured meat markets, which require significant cost reductions and scalability to compete effectively. Warning! GuruFocus has detected 6 Warning Signs with DYAI. Is DYAI fairly valued? Test your thesis with our free DCF calculator. Q: How should we be thinking about the ramp for recombinant bovine transferrin orders over the next couple of years? A: Joe Hazelton, President and COO, explained that the growth is expected to be steady but not exponential. Initial pilot scales are growing, and as products like cultivated meat receive regulatory approval, volumes will increase. Bovine transferrin is also used in serum-free cell culture applications and diagnostics, which will contribute to growth. Q: Does the recent attention on the Hantavirus present a similar opportunity for C1 technology as COVID did? A: Mark Edenfarb, CEO, confirmed that C1 technology can help with potential vaccines for Hantavirus. The technology has improved since COVID, offering faster and more efficient production of high-quality complex proteins, which is crucial for rapid response to emerging infectious diseases. Q: Can you provide an update on the relationship with Interlink and any progress in Asia? A: Joe Hazelton stated that the agreement with Interlink has expanded to include Europe, enhancing Dyadic's business development footprint. Initial success in Japan has led to customer engagement and product sampling, with expectations for increased sampling activity and product purchases. Q: What are the next steps after the IBT arrangement for product distribution? A: Joe Hazelton mentioned that products like DNase-1 and transferrin have been shipped and will be distributed through IBT's global network. Their sales teams will target academic institutions, hospitals, and research organizations, effectively expanding Dyadic's market reach. Q: What is the expected cash burn for the remainder of the year? A: Ping Rawson, CFO, indicated that the cash burn is expected to remain at or below last year's level of $5.7 million, ensuring a cash runway into mid-2027. Q: Are there any ongoing royalty agreements with Codexis or Firmbox? A: Mark Edenfarb clarified that there are no current public agreements with Codexis, but discussions have occurred. Joe Hazelton added that royalties from Firmbox are anticipated in 2026 as bioindustrial products grow. Q: What is the potential for cultured meat demand versus non-animal dairy in the nutritional market? A: Joe Hazelton noted that cultured meat has an acute demand due to the need to reduce production costs for market competition. Non-animal dairy also requires scale to compete with milk-derived products, but cultured meat presents a more immediate revenue opportunity. Q: Which geography is expected to have the least regulatory hurdles for cultured meat? A: Joe Hazelton believes the U.S. currently has a more regulatory-friendly environment for cultured meat, using a GRAS-certified organism pathway, although this could change. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is pivoting the company from a platform technology provider to a commercially focused biotechnology firm generating recurring revenue through direct sales, OEM distribution, and profit-sharing. The commercial strategy centers on leveraging C1 and Dapibus microbial platforms to produce animal-free proteins for markets where manufacturing economics and supply chain reliability are critical. Performance attribution for the quarter was driven by a 182% revenue increase, largely due to milestone payments from Inzymes and ongoing grant funding from the Gates Foundation and CEPI. The company is prioritizing the Life Sciences and Food and Nutrition segments, specifically targeting consumables like recombinant transferrin that generate recurring demand once qualified into customer workflows. Strategic positioning involves a 'return to roots' by leveraging decades of industrial enzyme expertise to address modern needs for scalable, animal-free production alternatives. Management emphasizes a capital-efficient growth model, utilizing partners like Fermbox Bio and IBT Bioservices to expand manufacturing and distribution without heavy internal infrastructure investment. Cash runway is expected to extend into Q2 2027, with management aiming to keep 2026 operating expenses generally in line with 2025 levels. Product sampling for recombinant bovine alpha-lactalbumin, a key whey protein for infant and medical nutrition, is currently expected to begin in mid-2026. The company anticipates steady, rather than 'hockey stick', growth in the cultivated meat segment as individual products move through regulatory approval and pilot scales transition to commercial volumes. Management expects to see initial revenues from bioindustrial products via the Fermbox Bio partnership during the 2026 calendar year. Future biopharmaceutical opportunities are being positioned as non-dilutive funding sources and long-term strategic value drivers rather than internally funded clinical programs. The transition to a product-driven business is still in early stages, and management acknowledges that investors are seeking sustained revenue growth to validate the shift. Regulatory dependencies remain a factor, particularly in the cultivated meat and animal vaccine sectors, where approval timelines can span 12 to 24 months. G&A expenses increased 10% year-over-year, primarily due to higher legal and accounting costs and rebranding activities associated with the commercial pivot. The company is utilizing a self-affirmed GRAS (Generally Recognized as Safe) pathway for its products to navigate U.S. regulatory requirements more efficiently than in the EU. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects steady growth rather than immediate exponential spikes, as adoption depends on regulatory approvals for specific animal cell lines. Beyond cultivated meat, the product is being targeted for serum-free cell culture and diagnostic applications to diversify revenue streams. Management confirmed the platform can produce stable cell lines and purified proteins in under three weeks from a codon-optimized plasmid. The platform is positioned as a faster, higher-yield alternative to traditional insect cell technologies for both vaccines and monoclonal antibodies. Dyadic expanded its agreement with Intralink to include Europe, following successful initial customer engagement and sampling in Japan. This approach allows the company to expand its sales footprint cost-effectively without significantly increasing internal headcount. Clinical trials for a poultry vaccine are anticipated to begin this year, with potential regulatory approval and milestones expected in the 2026-2027 timeframe. Management noted that the 7-year development cycle in this space reinforces their strategic shift toward faster-to-market non-pharmaceutical products.