Dyadic International, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the three months ended September 30, 2026, was $449,101, a decrease of 61.4% ($715,516) compared to $1,164,617 in the same period of 2025.
• Revenue decrease was driven by a $538,199 drop in grant revenue and a $187,728 drop in research and development revenue, partially offset by a $10,411 increase in license fee revenue.
• Cost of revenue was $375,115, a decrease of 63.4% ($648,888) compared to $1,024,003 in the prior-year period.
• Research and development expenses were $429,945, a decrease of 24.8% ($141,927) compared to $571,872 in 2025.
• General and administrative expenses were $1,450,750, a decrease of 2.1% ($30,606) compared to $1,481,356 in 2025.
• Loss from operations was $1,812,365, a decrease of 5.9% ($113,004) compared to $1,925,369 in the prior-year period.
• Other income, net, was $455,324, compared to other expenses, net, of $50,643 in the prior-year period, primarily due to a $545,527 non-cash gain from the change in fair value of the warrant liability.
• Net loss for the quarter was $1,357,041, or $(0.04) per share, compared to a net loss of $1,976,012, or $(0.06) per share, in the prior-year period.
• Cash, cash equivalents, restricted cash, and investment-grade securities totaled $6,046,083 as of September 30, 2026, down from $8,587,289 as of December 31, 2025.
• Total liabilities increased to $10,511,370 as of September 30, 2026, from $8,713,315 as of December 31, 2025, driven by a new $813,424 warrant liability and increases in accounts payable and accrued expenses.
• Stockholders' equity turned negative to $(2,577,696) as of September 30, 2026, compared to positive equity of $1,232,410 as of December 31, 2025.

Risks and Challenges:

• Management has concluded there is substantial doubt about the company's ability to continue as a going concern for the 12 months following November 12, 2026.
• Early commercial sales remain modest, and customer evaluation timelines are longer than anticipated.
• Risks include market and regulatory acceptance of microbial protein platforms, failure to commercialize technologies, competition from alternative technologies, and reliance on third parties.
• The company faces risks related to capital needs, potential dilution from capital raises, and compliance with Nasdaq listing standards.

Business Segments and Product Lines:

• Recorded first direct commercial product sales of recombinant transferrin and DNase I, establishing a direct-product revenue channel.
• Integrated Biotherapeutics (IBT Bioservices) launched an initial portfolio of six Dyadic-produced research-use-only recombinant protein products.
• Proliant Health & Biologicals continued commercial promotion of AlbuFree™ DX and outlined plans for AlbuFree™ TX and AlbuFree™ CGT.
• Inzymes reported the first commercial sale of a second chymosin product (camel chymosin) in October 2026; Dyadic expects to recognize a $225,000 milestone payment in the fourth quarter of 2026.
• Advanced collaboration activities with BRIG BIO and Strive Nutrition to develop bovine alpha-lactalbumin for next-generation nutrition products.
• Initiated development of recombinant bovine lactoferrin to complement human lactoferrin and alpha-lactalbumin programs.
• Demonstrated C1 platform capabilities by producing two ebolavirus antigens in approximately 15 days and a monoclonal antibody in approximately seven weeks.
• Under a Gates Foundation-funded program, achieved production yields of 12.1 g/L for RSV monoclonal antibody RSM01 and 13.2 g/L for malaria monoclonal antibody MAM01.

Other Key Points:

• The company is evaluating financing alternatives and other opportunities to strengthen its balance sheet and accelerate commercialization.
• Dyadic is placing greater emphasis on larger strategic partnerships, licensing, supply arrangements, and potential transactions involving its platforms.
• The Gates Medical Research Institute initiated preclinical animal studies in October 2026 to compare C1-produced antibodies with GMP CHO-produced counterparts, with results anticipated in Q1 2027.
• Dyadic participated in the €170 million European Vaccines Hub initiative (total initiative funding, not funding awarded to Dyadic).
• The company hosts an earnings call on November 12, 2026, at 5:00 p.m. ET.