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By John Vandermosten, CFA

NASDAQ:DYAI

READ THE FULL DYAI RESEARCH REPORT

Dyadic Applied BioSolutions, Inc. (NASDAQ:DYAI) announced third quarter 2025 results on November 12^th, 2025, and held a conference call to discuss them after that day’s market close. The remarkable takeaway from the press release is that Dyadic has a diversified set of revenue opportunities that may all contribute to the topline in the next few months. Customers have submitted purchase orders for C1 and Dapibus produced proteins including cell culture media and molecular biology reagents, recombinant growth factors and fibroblast growth factors. First deliveries of cellulosic enzymes have been made to Fermbox customers and Proliant’s commercial launch of recombinant serum albumin will begin in the next few months. Initial purchase orders for DNase 1 (RNase free) and recombinant transferrin are expected before year end.

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. It will focus on putting DNase 1 and human transferrin in front of partners throughout the value chain including gene therapy manufacturers, suppliers and distributors. The second is a deal with ERS Genomics which offers licensing of a broad range of CRISPR/Cas9 gene editing technologies which can help Dyadic develop desired strains for customers more quickly and improve optimization yields.

Dyadic has also advanced its research-focused efforts. The Gates Foundation collaboration has achieved key milestones and Dyadic has received $2.4 million of a $3.0 million grant. Data shows that C1-produced monoclonal antibodies (mAbs) perform comparably to mAbs produced from traditional Chinese Hamster Ovary (CHO) cell lines. The CEPI/Fondazione Biotecnopolo di Siena provides up to $2.4 million for Dyadic to support antigen design, cell line development and cGMP scale-up for vaccines and antibodies. Other biopharmaceutical program work with the European Vaccines Hub, Uvax Bio and the AdaptVac Consortium may also contribute several million dollars to Dyadic’s research efforts in vaccines.

During the third quarter, Inzymes paid Dyadic a $250,000 milestone for productivity achievements for a second enzyme. Next steps for this project are scale-up and commercialization efforts and an anticipated late 2025 or early 2026 launch. Additional enzymes are in development. After the end of the reporting period and in October, Dyadic received its third and final milestone of $500,000 from Proliant for reaching a productivity milestone for animal-free serum albumin manufacturing. The remaining hurdle is the completion of manufacturing to begin to ship product to customers. Sales are expected to be recognized in 2026. Also in 2026, sampling for research and nutritional markets is expected for alpha-lactalbumin. Dyadic has an arrangement with a non-animal dairy development company to develop a product in the infant nutrition segment.

Third Quarter 2025 Operational & Financial Results

On November 12^th, 2025, Dyadic published 3Q:25 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 September 30^th, 2025, compared to the same prior year period:

• Revenues were $1.2 million, down 41% from $2.0 million. The decrease is attributed to a reduction in the number of active collaborations, and license and milestone revenue. In the prior year, milestones from both Proliant and Inzymes were recognized and this year was only partially replaced by grant revenue from the Gates Foundation and the Coalition for Epidemic Preparedness Innovations (CEPI);
• Cost of revenue totaled $1.0 million, rising from $0.4 million due to the higher cost of grant revenue;
• Research and development expense was up 24% to $572,000 from $460,000 due to an increase in the number of active internal research initiatives in support of product development;
• General and administrative expenses were $1.5 million vs. $1.3 million, rising 14%. Rebranding and business development expenses, legal and accounting expenses, and other expenses contributed to the rise, and were partially offset by a decrease in share-based compensation expense;
• Net loss amounted to ($2.0) million versus ($0.2) million. On a per share basis, net loss was ($0.06) compared with ($0.01).

As of September 30^th, 2025, cash, equivalents and short-term securities totaled $10.3 million compared to $9.3 million at the end of 2024. Cash burn during the first nine months of 2025 was ($3.9) million compared with ($3.3) million for the same period in 2024. Cash from financing for the first nine months was $5.0 million mostly from an equity raise in the third quarter. Dyadic believes that it has sufficient cash to support operations for the next 12 months.

Near Term C1 Product Pipeline

Source: Dyadic July 2025 Presentation

Intralink Group Relationship

Dyadic has engaged Intralink Group to expand its commercial presence in Japan and South Korea. They will introduce Dyadic’s DNase I (RNase free) and human transferrin to prospects in these two Asian countries. A campaign will identify, prioritize and engage partners, distributors and contract development and manufacturing organizations (CDMOs). Initial areas of interest include biologics, cell and gene therapy and animal free products.

Intralink is a specialist business development consultancy that helps companies in the medical technology, diagnostics, life sciences tools & services and digital health domains to expand internationally. They assist companies outside of Asia identify partners for distribution, licensing and sales inside the region. The firm also provides market intelligence and local regulatory insight.

CRISPR/Cas9 License Agreement with ERS Genomics

Dyadic announced a CRISPR/Cas9[1]^,[2] license agreement with ERS Genomics. It will grant Dyadic access to ERS’ CRISPR/Cas9 patent portfolio. ERS Genomics provides licenses to the CRISPR/Cas9 patent portfolio including numerous uses such as research tools, reagents/kits, cell lines, drug discovery, gene therapies, companion diagnostics among others. With this tool, Dyadic can accelerate strain engineering and pathway optimization to enhance productivity, product quality and innovation across its proprietary bioproduction platforms. The company expects that CRISPR/Cas9 will help accelerate and optimize strain development with its two expression platforms. This will support Dyadic’s internal pipeline development and the production strains that it develops for partners.

CRISPR is a family of DNA sequences found in the genomes of prokaryotic organisms. It evolved as a means for bacteria to protect themselves from invading viruses and bacteriophages by inserting pieces of the invading viral DNA into the host genome as a way to remember them. This allowed the adaptive immune system to respond accordingly to a subsequent infection. If the same virus invades again, bacteria transcribe these stored sequences into short RNAs, which guide specialized CRISPR-associated (Cas) proteins to seek out and destroy the matching viral DNA, providing adaptive immunity.

In the laboratory, CRISPR enables scientists to selectively modify the DNA of living organisms with high precision. This has the potential to fix errors in the human genome and treat human disease. The technology can also be used to modify expression systems to refine glycosylation, control transgene expression and optimize protein yields. Dyadic expects that the technology will help accelerate product development.

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