Dyadic International, Inc. Q2 FY2025 earnings call

• Dyadic has shifted from a technology-focused R&D company to a market-facing revenue-driven biotechnology business, rebranded to Dyadic Applied BioSolutions. - Platforms C1 and Dapibus enable high-yield animal-free recombinant protein production. C1 is cGMP-compatible for life sciences, Dapibus for food nutrition and bioindustrial. - In life sciences, advancing albumin, transferrin, FGFs; partnering with Proliant for recombinant human albumin with $1M milestone received and $500k expected in Q3. Animal-free transferrin and FGFs in sampling. RNase-Free DNase1 in scaling up with sampling and discussions with partners. - In food nutrition, targeting sustainable proteins; recombinant alpha-lactalbumin and human lactoferrin in sampling, Inzymes partnership with $250k milestone in Q2, product launch targeted for late 2025. - In bioindustrial, EN3ZYME with Fermbox converts agricultural residues to fermentable sugars, sampling with customers, evaluating U.S. opportunities. - Legacy vaccine and therapeutic R&D programs with Gates Foundation, CEPI, etc., achieving milestones.

Total revenue for the quarter ended June 30, 2025 was $967,000, an increase from $386,000 in the same period last year. This was driven by milestone revenue from Inzymes and grant revenue from the Gates Foundation and CEPI program. Cost of research and development and grant revenue increased to approximately $614,000 compared to $302,000 last year. Research and development expenses rose to $629,000 from $516,000. G&A expenses decreased to $1,437,000 from $1,608,000. Loss on operations was $1,729,000 vs $2,043,000 last year, and net loss was $1,794,000 or $0.06 per share vs $2,045,000 or $0.07 per share last year. Cash, cash equivalents, etc. were approximately $7.3 million as of June 30, 2025, down from $9.3 million in Dec 2024. The company raised $5.3 million from an equity offering on August 1, 2025.

• Anticipate $500k revenue from Proliant in 2025, plus income from DNase1 and others. - Aim to maintain operating expenses at or below last year's level. - Use proceeds from equity raise for working capital, product development, sales, etc. - Goal to be cash flow positive by end of 2026 and profitable in 2027 and beyond.

Forward-looking statements involve risks and uncertainties; actual results may differ from forward-looking statements. Participants are directed to risk factors in Dyadic's SEC filings.

Q: On cash burn rates, what's the updated cash burn expected?

A: Anticipate additional revenue from products and milestones, operating expenses to remain at same or lower level than last year, but no specific cash burn guidance provided yet.

Q: On proteins like transferrin and DNase1, timeline and milestones?

A: DNase1 is more commercially ready, completed scale-up, manufacturing research-grade product, negotiating agreements. Transferrin in validation, further evaluating, potential scale-up for research market, likely late 2025/2026.

Q: On Fermbox deal, market, customers, U.S. opportunities?

A: Bioindustrial enzymes market is large, majority in Asia Pacific, interest in U.S. growing, evaluating manufacturing options in U.S. for other applications like pulp and paper.

Q: On capital raise systems and 3-year plan?

A: Systems in place for handling orders, MIS appropriate for current bulk sales; 3-year plan starting in fall, evaluating products and partnerships.

Q: On conflict with DuPont?

A: No conflict, noncompete ended 3-4 years ago, using Dapibus for industrial products, no issue with DuPont claiming revenue.

Q: On fully diluted share count?

A: Issued 6,052,000 shares in public offering, fully diluted share count over 36 million.

Q: On addressable market and profitability?

A: Cell culture media market has high growth, dairy market is large ($50B), goal is cash flow positive by end 2026 and profitable in 2027+