Dyadic International, Inc. Q4 FY2025 earnings call

• Since June 2025, focus on transitioning to commercial, product-driven biotechnology business. Completed corporate rebrand to Dyadic Applied Biosolutions. Secured manufacturing through Fermox partnership. Began moving products into market.
• Life sciences: Building portfolio of recombinant animal-free proteins. Recombinant albumin launched, transferrin and DNase I in development, FGF achieved first sales.
• Food and Nutrition: Leveraging DAPIBUS platform for animal-free proteins. Agreements with RigBio and Incyte, advancing alpha-lactalbumin, lactoferrin, and chymosin programs.
• Bioindustrial: Scaling technology via partnerships with Fermox, N3xi enzyme cocktail progressing with Fermox's activities.

Life sciences: Reported revenues reflect transition, but underlying business advanced. Recombinant albumin commercially launched in early 2026 via partnership with ProLiant Health and Biologics. Animal-free recombinant transferrin in development, with OEM distribution agreement with IVT BioServices. DNase I launched under expanded partnership with Fermox. FGF achieved first sales in 2025. Food and Nutrition: Opportunity driven by shift to sustainable animal-free proteins. Agreement with RigBio for animal-free recombinant bovine alpha-lactalbumin. Human lactoferrin program advancing. Recombinant bovine chymosin with Incyte targeting 2026 launch. Bioindustrial: Focus on scaling technology via partnerships. Expanded collaboration with Fermox for commercial-scale manufacturing. N3xi enzyme cocktail from DAPIBUS platform converting agricultural residues into fermentable sugars for biofuels, with Fermox fulfilling first large-scale order and expanding activity.

• Expect disciplined cash usage, prioritize high-impact R&D programs and grant-funded activities. Anticipate growth in product revenues across life sciences and food and nutrition markets from new product launches. Existing cash resources provide runway into 2027, but will evaluate additional capital resources. Put an ATM facility in place for flexibility and optionality.

Q: How should we think about the timing and ramp of product revenues over the course of 2026 and beyond?

A: It's a balance of inventory production and market needs. Slow ramp as products need to be qualified for use. Research use may have quicker pickup than cell and gene therapy. Goal is to sign more distribution agreements for larger product volume opportunities.

Q: Do collaborations incorporate upfront license fees?

A: Depends on product and market. For further along products, expect upfront revenues. Earlier development products may be dependent on product progress. Try to push for larger upfront fees when products are further developed.

Q: How are changes managed internally with expanded partnerships and what control does Dyadic have over pricing?

A: Evaluate partners based on additional capabilities they bring. In partner programs, pricing is partner-led in some cases. In distribution agreements, margins built in ahead of time. Flexibility in markets, with more control over products we control.

Q: When might Dyadic hit breakeven?

A: It's difficult to answer definitively. Goal is to be revenue-positive as quickly as possible. Products give ability to do so, but need more commercialization. Longer term, but no definitive answer.

Q: Thoughts on sustained higher energy environment and biopharmaceutical programs?

A: Energy is a factor, but regulatory scrutiny and consistency are bigger pushes in food space. In biopharmaceutical, programs are not just for pandemic, but for large needs like RSV, malaria, etc., with multibillion-dollar opportunities.

Q: Utilization rate of manufacturing in the US?

A: Shift is occurring, with onshoring, safety components, tariffs, etc. Seen an uptick, but question is if cost metrics can be met in US to compete with other countries.