Q3 2025 Dyadic International Inc Earnings Call

Management's prepared remarks, there will be a brief question and answer session.

As a reminder, this conference call is being recorded today November 12 2025.

I would now like to turn the call over to Mr. Cheng, who often die size.

Biotics Chief Financial Officer. Please go ahead.

Thank you good evening and welcome everyone to Dyadic Q3, 2025 conference call.

Joseph Hazelton: Total revenues for the quarter ended 30 September 2025 decreased to $1,165,000 compared to $1,958,000 for the same period a year ago. The decrease was due to decreases in research and development revenue of $183,000 and the license and milestone revenue of $1,425,000 from the Proliant Agreement and the Enzymes Partnership Agreement in 2024. The decrease is offset by an increase in grant revenue of $815,000 from the Gates Foundation and the CEPI grant in 2025. Cost of research and development revenue and cost of grant revenue for the quarter ended 30 September 2025 decreased to $255,000 compared to $396,000 for the same period a year ago. For the quarter ended 30 September 2025, cost of grant revenue from the Gates Foundation and the CEPI grant was $769,000 compared to $0 for the same period a year ago.

I Hope you have had the opportunity to review that express releases announcing financial results for the quarter ended September 32025.

You may access our release and Form 10-Q, and or the investors section of the company's website at <unk> Dot com.

On today's call are president and Chief operating Officer, Joe Hazelton will give a review of our Q3 2025 business and corporate highlights and provide a commentary on the strategic direction of the business.

Our CEO, Mark <unk>, who will provide an update on our bio pharmaceutical 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 maybe considered forward looking statements, which involve risks and uncertainties and other factors that could cause that <unk> actual results performance scientific or otherwise or achievements to be materially different from those.

Joseph Hazelton: Research and development expenses for the quarter increased to $572,000 compared to $460,000 for the same period a year ago. The increase was driven by a rise in the number of active internal research initiatives undertaken to expedite product development. G&A expenses for the quarter increased to $1,481,000 compared to $1,298,000 for the same period a year ago. The increase reflected increases in rebranding and business development expenses of $176,000, legal and accounting expenses of $83,000, partially offset by a decrease in share-based compensation expenses of $79,000. Loss from operations for the quarter increased to $1,925,000 compared to $203,000 for the same period a year ago. Net loss for the third quarter of 2025 increased to $1,976,000 or $0.06 per share compared to $203,000 or $0.01 per share for the same period a year ago.

Expressed or implied by these forward looking statements.

<unk> 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 diabetics report filed with the SEC.

It is now my pleasure to pass the call to our President and CEO, Joe Hazelton, Joe Thanks, Pam and thank you all for joining today the third quarter was another pivotal quarter for <unk> as we continued our transformation from a platform centric R&D organization into a commercially focused biotechnology company with a growing portfolio.

Folio of high value products.

The start of the fourth quarter, we saw our first commercial bulk sale of the dyadic produce protein market at the beginning of a new chapter in our company's evolution, we expect momentum to build with additional product opportunities emerging in 2025 and accelerating in 2026, as we scale our portfolio and expand our global market reach with.

Now rebranded as dyadic apply bio solutions launched a redesigned corporate website to enhanced commercial engagement and strengthened our technology Foundation with the addition of Christopher cast nine gene editing capabilities through our license with Urs genomics. This license allows us to accelerate strain optimization improve productivity and further increase yields of <unk>.

Joseph Hazelton: As we reported earlier, on 1 August 2025, the company closed its public offering of 6,052,000 shares of its common stock at a public offering price of $0.95 per share. The net proceeds to the company from the offering were approximately $4.9 million after deducting legal expenses, underwriting discounts, commissions, and other offering expenses. As of 30 September 2025, cash equivalents, restricted cash and cash equivalents, and the carrying value of the investment grade securities, including accrued interest, were approximately $10.4 million compared to $9.3 million as of 31 December 2024. On 14 October 2025, we received the third and final milestone payments of $500,000 from Proliant upon meeting a certain productivity threshold, which was not included in the cash balance as of 30 September 2025.

Instancy across our proprietary C. One and depth of this platforms directly supporting commercialization and profitability.

Speaker #1: As a reminder, this conference call is being recorded today. November 12th, 2025. I would now like to turn the call over to Ms. Peng Rawson, DYADIC's Chief Financial Officer.

At this stage Diavik is no longer just a story about potential it's a story about execution commercial traction and growing product revenue.

Speaker #1: Please go ahead.

As we move from transformation to execution, our progress in life Sciences, and the life Sciences segment.

Speaker #2: Thank you. Good evening and welcome, everyone, to DYADIC's Q3 2025 conference call. I hope you have had the opportunity to review DYADIC's press releases announcing financial results for the quarter ended September 30, 2025.

<unk> is now operating as a product company, we are manufacturing a supplying lab grade material for multiple recombinant proteins, focusing our efforts on near term product revenue for markets, where the need for animal free high performance materials is rapidly expanding.

The cell culture media market represents one of the most dynamic growth areas in biotechnology supporting biologic manufacturing cell and gene therapy and cultivated meet.

These markets require consistent animal free proteins that enable scalability and regulatory confidence, while balancing cost and our protein production platforms deliver on those needs.

On today's call, our presidents and Chief Operating Officer. Joe Hazleton will give a review of our Q3 2025 business and corporate highlights and provide a commentary on the Strategic direction of the business.

Joseph Hazelton: For the rest of 2025, we expect to see growth in product revenue in our life sciences and food and nutrition markets as we launch products in cell culture media and molecular biology, while maintaining our operating expenses in line with last year. 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, our COO, will provide closing remarks. Operator? Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press *1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue.

The recombinant human albumin program in partnership with <unk> Health in Biologics continues to advance toward commercial launch in early 2026.

Albumin as a cornerstone protein used across diagnostics research and bio manufacturing for stabilizing and transporting bio molecules and transitioning to recombinant production offer significant advantages and purity safety and supply chain reliability.

Our CEO Mark emo Farm will provide an update on our bio pharmaceutical programs and I will follow with the review of our financial results in more detail after which we'll hold a brief question and answer session.

We remain fully in line with <unk> as they prepare for market entry to date Diavik has received a total of $1 $5 million in milestone payments from <unk>, including a third payment of $500000 received in October.

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 actual results, performance, scientific, or otherwise, or achievements to be materially different from those expressed or implied by these forward-looking statements.

We expect to share in the profits as the albumin products enter the market.

This collaboration exemplifies how our platforms enable partners to deliver high value animal free proteins at commercial scale.

In October we achieved an important milestone with the first bulk purchase order for data produced protein a recombinant bovine fiber breast both growth factor or FGF is now being sold into the cultured meat market demonstrating our ability to deliver a commercial grade material at scale and validating the market readiness of our technology.

Static expressly disclaims. Any duty to provide updates to its full booking statements whether because of new information for future events or otherwise, participants are directed to the risk factors set forth in dialectics reports filed with the ICC.

Joseph Hazelton: You may press *2 to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the *2. First question comes from Matt Hewitt with Craig-Hallum Capital Group. Please go ahead. Good afternoon, and thanks for taking the questions. Maybe first up, and I apologize if I missed this, but earlier this week, you announced a new relationship that's going to grant you access to CRISPR commercial licenses. I'm just curious, what does that bring to your portfolio? How is that going to help you drive incremental growth and sign some new contracts? Hey, Matt, Joe, it's a great question. The license that we signed with ERS Genomics earlier this week actually gives us a more powerful genetic toolbox to accelerate product development, improve optimization yields, both with our internal pipeline, but also with our customers.

Looking ahead. In addition to growth factors, our top product priorities are animal free transferring in DNA Swan, which are now in active manufacturing and sampling to prepare for commercial launch.

Transferring this key functional protein in serum free cell culture media responsible for delivering iron to support healthy cell growth and metabolism.

It is now my pleasure to pass the call to our president and CEO Joe Hazleton. Joe, thanks ping. And thank you all for joining today. The third quarter was another pivotal quarter for datasyst.

<unk> is producing producing both bovine and human recombinant transferring to serve distinct market segments, both might transfer into designed for cultivated meat and research markets, where cost efficiency and scalability are key while human transferring is targeted for biopharmaceutical and cell and gene therapy applications, which demand higher specification.

We expect the momentum to build with additional product opportunities emerging in 2025 and accelerating in 2026. As we scale our portfolio and expand our Global Market reach.

And regulatory grade consistency.

Together these two products positioned to compete effectively across complementary ends of the market.

We've now rebranded as data applied bio Solutions launched a redesigned corporate website to enhance commercial engagement and strengthen our technology foundation. With the addition of crispr, cast 9 Gene editing capabilities through our license with the RS genomics.

Our FGF program continues to advance beyond the culture in each segment as we target cell and gene therapy manufacturers and suppliers.

Joseph Hazelton: Having access to the CRISPR technology actually helps our partners. For some of them that are in food and nutrition, CRISPR licensing can be somewhat problematic. Us having access to the technology to use in these development programs gives us a competitive advantage in some of these markets, as well as the ability to expand and accelerate our internal programs. We see this as a great opportunity to enhance the already strong genetic toolbox that we have. That's great. Maybe a follow-up question. Picking one is tough, but I'll just go with this one. The DNase 1 is one opportunity. It sounds like you're making progress there. How should we be thinking about that opportunity ramping 2026 and beyond, and how big could that ultimately become? Thank you. Again, a great question. The market itself for DNase 1 is roughly a $250 million market for recombinant products today.

<unk>, our central growth factors and cell culture formulations, driving cell proliferation and differentiation.

This license allows us to accelerate strain, optimization improve productivity and further increase yields and consistency across our proprietary C1 and dapus platforms directly supporting commercialization and profitability.

We're now expanding sampling and validation activities with additional customers and interest continues to build as companies look for reliable animal resources.

At this stage data is no longer just a story about potential. It's a story about execution commercial traction and growing product Revenue

As we move from transformation to execution our progress, in life sciences in the Life Sciences segment.

In molecular biology reagents, our RNA <unk> DNA Swan has completed production validation and entered sampling while we work to secure purchase orders.

<unk> is a critical enzyme used in gene therapy, molecular diagnostics and biopharmaceutical manufacturing to remove unwanted DNA without compromising RNA or protein integrity <unk>.

<unk> ability to supply DNA Swan and a high purity animal freeform directly supports the industry's move towards cleaner and more consistent inputs without increased cost.

Highlights how we are now operating as a product company. We are manufacturing and supplying lab-grade material for multiple recommended proteins. We are focusing our efforts on near-term products and revenue from markets where the need for animal-free, high-performance materials is rapidly expanding. The cell culture media market represents one of the most dynamic growth areas in biotechnology, supporting biologic manufacturing, cell and gene therapy, and cultivated meat.

These products form a high margin recurring revenue foundation, serving critical in fast growing life science applications.

These markets require consistent animal free proteins that enable scalability and Regulatory confidence. While balancing cost and our protein production platforms deliver on those needs.

We're also advancing the development of <unk>, seven RNA polymerase and Rnase inhibitor products to expand <unk> position in the DNA and RNA enzyme market.

Joseph Hazelton: Overall, it's closer to a $1.5 billion market for DNase 1 for all methods of production and platforms. As we look at what we're looking to do, we're targeting distributors, suppliers, and manufacturers for bulk sale opportunities. We're not going to be manufacturing or selling to individual institutions in small orders. The goal is, and our focus right now is on securing OEM agreements, or broader bulk opportunities. We expect to see it scale rather rapidly. Obviously, we're getting lab-grade material up first, and as we start to expand the quality of the material, moving up to ISO and even GMP grade, those are very expensive to manufacture. As we get the initial revenues in, we'll be able to target higher margin segments.

There are competent human alment program and partnership with proliant health and biologics continues to advance toward commercial launch in early 2026.

To further expand our global commercial reach we recently partnered with Interlink, a leading Asia Pacific business development firm to accelerate market penetration in Japan, and South Korea, two of the world's fastest growing and most advanced markets for cell culture media and molecular biology reagents.

Amen. Is a Cornerstone protein. Used across Diagnostics research, and biomanufacturing for stabilizing and transporting biomolecules, and transitioning, to reccom production offer significant advantages in Purity, Safety and Supply Chain, reliability,

A leading U S based organization, we look to leverage local expertise and established commercial networks to effectively reach these important markets without the need for significant internal infrastructure of capital investment.

Internally provides static with on the ground commercial resources and regional experience that allow us to engage manufacturers distributors and potential partners more directly inefficiently.

We remain fully aligned with proliant as they prepare for Market entry to date. Data has received a total of 1.5 million in Milestone payments from proliant including a third payment of $500,000 received in October and we expect to share in the profits as the album and products enter the market.

This collaboration exemplifies how our platforms enable partners to deliver high-value, animal-free proteins at commercial scale.

Joseph Hazelton: It'll be a slow growth at first, but we anticipate it to be steady given the expansion of DNA and RNA products in the market itself. I mean, there's a ton of not just mRNA still, but a ton of opportunity in cell and gene therapy, as well as other markets where we think we have a great opportunity and advantage given our cost structure in that segment. That's excellent. Thank you. Next question, John Vandermosten with ZADIC. Please go ahead. Thank you. I wanted to ask about the other relationship that you announced with Interlink in Asia. What characteristics of the customers do you think there will be for those products there, the DNase 1 and the transferrin? Will those be academic centers or labs, or what do you think those customers will be? John, this is Joe. It's a great question.

Through this partnership we are actively introducing our products such as transfer and DNA Swan and growth factors as well as our platform technologies to new customers in the Asia Asian region, expanding that footprint across key global manufacturing hubs in a cost effective manner.

Building on our momentum in life Sciences Diavik is also advancing its commercialization efforts in the food nutrition segment. Another large fast growing market, where our technology is enabling the transition to animal free sustainable protein production.

Looking ahead, in addition to growth factors, our top product. Priorities are animal free. Transferring and DNA Swan which are now an active manufacturing and sampling to prepare for commercial launch.

The food nutrition market is undergoing a structural transformation is global food producers shift towards sustainable functional and animal free proteins. This.

Transferring is a key, functional protein in serum-free cell culture, media responsible for delivering iron to support healthy cell growth and metabolism.

This transition is driven by consumer preference regulatory trends and supply chain sustainability pressures and it presents them with a major opportunity to apply its step of this platform to supply recombinant proteins and enzymes at scale.

The attic is producing producing, both bovine and human recombinant transferring to serve distinct market segments.

Animal free dairy protein market alone is expected to exceed $20 billion by 2035 led by growing demand for precision fermented proteins and infant formula medical nutrition and wellness applications. These markets require a consistent high purity proteins that replicate the nutritional and functional properties of traditional dairy ingredients.

Joseph Hazelton: The reason we're targeting those markets specifically is that they're experiencing significant growth in the uptake of these products with cell and gene therapy manufacturers, suppliers, and distributors. There are several new companies and several existing companies that are very large. We're targeting those organizations for purchase orders and bulk purchase orders, and then they would, in turn, supply the end users. We're not looking, obviously, to become a wholesale distribution network to every supplier or every academic institution, but we want to hit where they're pulling their product from. I think, John, one of the things you should keep in mind on all these programs is we're dealing with global markets. As Joe points out, Japan and Korea are expanding, and they're not in turmoil like in the US. Our global presence is paying off.

Bovine transferring is designed for cultivated meat and research markets where cost efficiency and scalability are key. While human transferring is targeted for Bio pharmaceutical. And selling gene therapy applications which demand higher specification and Regulatory grade consistency.

Together these 2 products position dietetic to compete effectively across complimentary ends of the market.

Our fgf program continues to advance beyond the cultured meat segment as we target cell and gene therapy manufacturers and suppliers.

Areas, where we believe the depth of this may provide a competitive edge.

Our recombinant Alpha Lactalbumin program advanced meaningfully this quarter, we've entered into a term sheet with a non animal dairy development partner focused on the infant nutrition market and we anticipate additional agreements for our Alpha Lactalbumin program in 2025.

fgfs, are Central growth factors and cell culture, formulations driving cell proliferation and differentiation

We're now expanding sampling and validation activities with additional customers and interest continues to build. As companies look for Reliable animal resources.

The protein has demonstrated strong performance in product testing and formulation trials with sampling for research and nutritional applications expected by late 2025 or early 2026.

Also in the third quarter, our human Lactoferrin program continues to progress with stable with a stable production strained developed and yield optimization underway lactoferrin is valued for its antimicrobial and immune supporting properties and commence premium pricing in both nutritional and wellness markets.

In molecular biology, reagents are rnase free DNA swan has completed production validation and entered sampling. While we work to secure purchase orders, dna1 is a critical enzyme used in gene therapy, molecular Diagnostics and bio pharmaceutical manufacturing to remove unwanted DNA without compromising RNA or protein integrity.

Joseph Hazelton: As you know, we are heavily involved in Europe, and now in Asia, Japan, and of course, in the United States, but India and other countries. We're kind of, in a lot of ways, protected from what's been going on here in the United States to some degree because we really have a global footprint, and we're expanding that global footprint for box as well. That's a great point because, in addition, a lot of the companies are worried with regard to the tariff situation. In Japan and Korea, they are looking to improve their manufacturing capability in the homeland. Obviously, us having the ability to transfer our technology anywhere in the world gives us an advantage. I think, Mark, you're absolutely right. Well, and they need a lower cost of good to offset the tariffs to ship back into the US.

That its ability to supply DNA swan in a high Purity animal free form directly. Supports the industry's move toward cleaner more consistent inputs with increased costs.

We expect sampling for research use in early 2026.

These products form a high-margin, recurring revenue foundation, serving critical and fast-growing life science applications.

Non animal dairy enzymes, we received an additional $250000 milestone payment from enzymes in the third quarter, bringing total license and milestone revenue from this partnership to $1 $275 million to date.

We're also advancing the development of t7 RNA polymerase and RNA, inhibitor products to expand diet. Exposition in the DNA and RNA enzyme Market,

Scale up for the first enzyme remains on track for commercial launch in late 'twenty five or early 2026 with a second enzyme candidate advancing towards commercialization under the existing license importantly, diavik is eligible to receive future royalty payments on commercialized products, creating a recurring revenue opportunity and further validating the commercial value.

To further expand our global commercial reach. We recently partnered with Interlink a leading asia-pacific Business Development firm to accelerate Market penetration in Japan and South Korea, 2 of the world's fastest growing, and most advanced markets, for cell culture, media and molecular biology, reagents

Joseph Hazelton: It's opening up doors that heretofore might have been closed. Would the tariffs apply to your product? I mean, since it's a technology transfer rather than a product itself crossing the border, would that be something that you'd have to worry about? Or would the customer have to worry about in Japan, Asia, and other places outside the US? Yeah. I think the tariffs would be on the products coming back in, not on the technology going out. Right. Right. Okay. Thank you for taking my question. Next question, Robert Hoffman with Princeton Opportunity Management Group. Please. Yeah. Thanks. I just want to dig in a little deeper on the CRISPR ERS agreement. Is that something you have to pay anything upfront? I'm assuming it might be modest.

<unk> of our technology and partnership model.

As we expand our presence in food nutrition, we're also applying our technology to industrial biotechnology.

Being a lean us-based organization, we look to leverage local expertise and established commercial networks to effectively reach these important markets without the need for significant. Internal infrastructure or capital investment.

Were diabetics enzyme expertise is addressing global demand for more sustainable efficient and bio based manufacturing solutions.

Interlink provides static with on the ground commercial resources, and Regional experience that allow us to engage manufacturers Distributors and potential Partners more directly and efficiently.

<unk> bio industrial segment continues to demonstrate the scalability flexibility and cross sector relevance of our enzyme technology.

Using our depth of this platform, we are delivering enzyme solutions that replace petrochemical or animal derived inputs and improve process efficiency across industrial and emerging bio based markets.

Through this partnership. We are actively introducing our products such as transferring DNA Swan and growth factors as well as our platform Technologies. To new customers in the Asia Asian region, expanding that footprint, across key, Global manufacturing, hubs in a cost-effective manner.

Our collaboration with firm box bio on an enzyme cocktail that converts agricultural residues into for mental sugars continues to advance and deliver results firm box as a true strategic partner for dyadic with robust manufacturing capabilities across multiple quality grades, which allows us to serve a broader range of industrial and bio based customers.

Building on our momentum and like science is D is also advancing. Its commercialization efforts in the food nutrition segment. Another large fast growing Market where our technology is enabling the transition to animal-free sustainable protein production.

Joseph Hazelton: How does it work going forward if they discover a system within their genomics? Are they going to get a royalty on the sales of that? Can you just kind of—I know you can't do specific numbers, but if you can kind of walk us through how a license agreement like that is structured, I appreciate it. Well, first of all, to your point, I think Joe did a great job in negotiating to deal with the ERS Genomics. You have to remember, we're not cutting and clipping out things going into human bodies. We're improving fungal cell lines to make them more efficient, to make them cleaner, to knock out things that might be problematic, improve qualities.

The food and nutrition Market is undergoing a structural transformation AS Global food, producers shift towards sustainable, functional, and animal-free proteins.

Initial commercial deliveries have been completed and sample is expanding with additional customers and biomass processing biofuels and pulp and paper markets. Under this partnership Diavik participates in a 50 50 profit share on sales, creating a scalable and recurring revenue model as the adoption and portfolio grow and we expect to begin seeing revenues in the first half.

This transition is driven by consumer preference regulatory, Trends and supply chain sustainability, pressures. And it presents data with a major opportunity to apply its staff of this platform to supply, recent proteins and enzymes at scale.

A 2026.

Our cellulosic enzyme technology is also being evaluated in regenerative medicine and tissue engineering through collaborations with pharmaceutical and medical device companies.

The animal-free dairy protein Market alone is expected to exceed 20 billion dollars by 2035. Led by growing demand for precision fermented proteins. In infant formula Medical Nutrition and wellness applications.

These efforts demonstrate how the attic enzymes can contribute to the development of biomaterials for the rapidly growing market of tissue repair and regeneration further underscore the versatility and commercial reach of our technology beyond traditional industrial applications.

These markets require consistent High Purity proteins that replicate the nutritional and functional properties of traditional Dairy ingredients areas where we believe that dapis may provide a Competitive Edge.

Joseph Hazelton: I can't get into the finances to your point because it's confidential, but I can assure you it's nothing like you hear about CRISPR being used in the pharmaceutical and the medical industry. This is really more about engineering cells and making them home at a higher level, faster, quicker, and cheaper than they already are. As somebody brought up, I think Matt brought the point up earlier, we're expanding the opportunities. Our customers don't have to use CRISPR. We have different technologies. We have a site-specific integration, which can allow you to do things repeatedly from a genotype, from a regulatory perspective. In the life sciences and food and nutrition, we can do random. In a lot of ways, random will give you the same result as CRISPR, but CRISPR is a little faster and a little more directed.

In parallel with our commercial initiatives, we continue to advance a select group of partner funded biopharmaceutical collaborations that extend the reach of our technology into vaccines in antibody production.

Our recombinant Alpha lacta aluminum program. Advanced meaningfully this quarter. We've entered a new term sheet with a non-animal dairy development partner focused on the Infant nutrition market, and we anticipate additional agreements for our Alpha lactate aluminum program in 2025,

Providing valuable validation and non dilutive funding, while we stay focused on near term product revenue.

I'll now turn the call over to our CEO Mark <unk> to provide an update on our progress of these partner funded collaborations mark. Thanks.

The protein has demonstrated strong performance in product testing and formulation trials, with sampling for research and nutritional applications expected by late 2025 or early 2026.

Thanks, Joe.

Biopharma and clinical programs are accelerating and delivering meaningful advancements.

Also in the third quarter, our human lack of fair and program continues to progress with stable with a stable production, strain developed and yield optimization underway.

Maxine and therapeutic protein development for both animal and human health.

Two collaborations supported by the Gates Foundation, the coalition for epidemic preparedness innovations happy.

Lactofer is valued for its antimicrobial, and immune supporting properties and commands, premium pricing in both nutritional and wellness markets. We expect sampling for research, use in early 2026,

Our strategic partnership with Dr Arena ramping early and found a Gianni biotech Kampala Sienna.

Joseph Hazelton: If you screen more mutants, you might get to the same point. It gives us an advantage of time and specific ways to manipulate and modify these cells. I think I wouldn't worry about the backend because the backend, you more than make up for it. If you get higher productivity, you can afford to pay a little bit of a payment to ERS Genomics. It's a great deal for them as well because it's opening the door to a whole new area that heretofore they couldn't get into. Got it. Yep. That sounds great. Thank you. Next question, John Vandermosten with ZADIC. Please go ahead. Great. Thank you. My follow-up question is on the infant nutrition product. Is that something new that's being launched? Is the customer trying to differentiate it from an animal-based product or something?

As part of the $170 million Euro EU vaccine hub.

250,000 Milestone payment from enzymes. In the third quarter, bringing total license and Milestone revenue from this partnership to 1.275 million to date.

We're continuing to validate the power of our <unk> protein production platform to non dilutive funding.

These efforts are generating strong gainer at.

Scale-up for the first enzyme remains on track for commercial launch in late 2025 or early 2026, with a second enzyme candidate advancing toward commercialization under the existing license.

Demonstrates <unk> ability to rapidly and efficiently and affordably manufacture high quality biologics, including vaccines monoclonal antibodies and other complex proteins with exceptional productivity and scalability.

Importantly data is eligible to receive future royalty payments on commercialized products. Creating a recurring Revenue opportunity and further validating the commercial value of our technology and partnership model.

Our Gates Foundation program focused on developing low cost monoclonal antibodies for malaria and RSV have achieved key milestones in both productivity and an initial biological characterization when compared with the same antibody produced using traditional 1 million channel production.

As we expand our presence in food nutrition or also applying our technology to Industrial biotechnology where diets enzyme expertise is addressing Global demand for more sustainable efficient and bio-based Manufacturing Solutions.

Joseph Hazelton: I want to see if you can help me understand how that product will be marketed to the end customer. I think in infant nutrition and medical nutrition, what they're looking to do is basically mimic human breast milk. That's really one of the key focuses. The other is, obviously, they want to mimic bovine milk as well. I think you'll see the bovine products be accepted, or recombinant non-animal bovine products will probably be accepted first because that's a shorter, I guess, a shorter leap for most consumers and most larger companies to take because they're currently using an infant formula today. They're using bovine-sourced materials. When it gets to things like infant nutrition, ultimately, the goal would be to mimic human breast milk. That would be the ultimate goal.

To date, we've received $2 2 million up.

$300 million grant.

Under a sappy Sunday <unk> biotech <unk> collaboration.

That addicts bioindustrial segment continues to demonstrate the scalability, flexibility and cross- sector relevance of our enzyme technology, using our depth of this platform. We're delivering enzyme solutions that replace petrochemical or animal, derived inputs, and improve process, efficiency across industrial, and Emerging biobased Markets.

Eric is eligible for up to an additional $2 4 million funding to support antigen design cell line development and cgmp manufacturing scale up.

Our collaboration with firms bio on an enzyme cocktail that converts agricultural residues into fermentable sugars continues to advance and deliver results.

This project has already begun to generate encouraging data, including the successful development of another tier one produced <unk> influenza antigen <unk>.

Firm box is a strategic partner for a diat with robust manufacturing capabilities across multiple quality grades which allows us to serve a broader range of industrial and biobased customers.

Yes.

Initial results showed that the dynamics H five amgen reaction as expected with human monoclonal antibodies.

Initial commercial deliveries have been completed and Sample is expanding with additional customers and biomass processing, biofuels and Pulp and Paper markets.

In collaboration with Fas when comparing to provide <unk> antigen sample preclinical evaluation with the potential to advance into a funded phase one trial.

Joseph Hazelton: Having human alpha-lactalbumin, I think you'll see it in medical nutrition, sports nutrition products prior to seeing it in infant nutrition. That is exactly what they're trying to do. There's only, again, so much actually naturally derived human breast milk that can be produced in a given year, as well as bovine milk as well. Those are self-limiting, or I won't say unsustainable, but they're very difficult to scale to significant levels in certain cases when you're talking about the purity and consistency you need for something like infant nutrition. The recombinant proteins themselves give them greater assurance of the product quality and better control of the manufacturing process than you get with animal or even human-derived proteins. The goal is there. The roadmap is there. Obviously, getting past some of the regulatory hurdles and then consumer issues as well, that'll take some time.

Under this partnership data participates in a 5050 profit share on sales. Creating a scalable and recurring Revenue model as the adoption and portfolio growth. And we expect to begin seeing revenues in the first half of 2026,

Other semi supported programs, including the <unk> <unk> vaccine and the Adaptec consortium for broad spectrum silo virus and vaccines are expected to further reinforce <unk> ability to deliver rapid scalable and cost effective production solutions.

Our cellulosic enzyme technology is also being evaluated in regenerative medicine and tissue engineering through collaborations with pharmaceutical and medical device companies.

Our collaboration with the process development unit.

These efforts demonstrate how data enzymes can contribute to the development of biomaterials for the rapidly growing Market of tissue repair and regeneration further underscoring, the versatility and Commercial reach of our technology Beyond traditional industrial applications.

<unk> continues to generate encouraging data and not only supports vaccine development and also enhances the productivity and consistency of our CRM platform.

In parallel, with our commercial initiatives, we continue to advance a select group of partner funded, bio pharmaceutical collaborations, that extend the reach of our technology into vaccines and antibody production.

The insights and process improvements gain from this and other funded programs strengthening <unk> broader capabilities and these can be applied across both.

Providing valuable validation and non-dilutive funding while we stay focused on near-term product or evidence.

Biopharmaceutical and have diverse non horizontal platforms.

I'll now turn the call over to our CEO Mark emo for to provide an update on our progress of these partner. Funded collaborations mark,

Thanks Joe.

Joseph Hazelton: We do see this as a great opportunity. Just to add a little color to that, just like Proliant, we've got partners that we're talking to and working with that have decades of experience in this industry. It's not like we're tackling this on our own. We're aligning our interests with people that actually have the knowledge and the expertise to drive this forward to commercialization. If you think about omega-3, which is kind of a similar thing, that's used in infant formula, for example, these are multi-billion-dollar product opportunities. DSM paid MarTech over $1 billion several years back. It wasn't too long ago that we had this infant formula shortage. That was a big deal.

This cross platform innovation drive future value creation and supports the potential for additional licensing and monetization opportunities in animal and human health.

Our biofarma medical programs are accelerating and delivering, meaningful advancements in vaccine and therapeutic protein development for both animal and human health.

While our internal resource we remain focused on generating near term revenues.

Non therapeutic proteins is externally funded biopharmaceutical programs provide valuable non dilutive funding and global validation of our technology.

To collaboration support by The Gates Foundation. The Coalition for epidemic, preparedness and Innovation sepy, and our strategic partnership with Dr. Reno EPI and the foundation biotechnology Sienna FBS as part of the 170 million euro EU vaccine hub.

With that I'll now turn the call over to our Chief financial Chief Financial Officer, <unk> will walk you through our third quarter 2025 financial results. Thank.

For continuing to validate the power of our C1 protein production platform through non-dilutive funding.

Thank you Mark I will now go over our key financial results for the quarter ended September 32025, and more detail.

Joseph Hazelton: This is a huge opportunity, and we're addressing it not on our own, but in partnership with what we think are some of the smartest people that have the industry experience for decades. Okay. Great. Thank you for the additional info. Once again, if you would like to ask a question, please press star one on your telephone keypad. Next question comes from Tony Bowers with InterACT. Please go ahead. Hi, Mark. Hi, Joe. I know the grant business is pretty much of a break-even proposition initially, but it's great credibility, great visibility, and validation. What do you think the positive end game could be from the Gates Foundation and CEPI? Well, the positive end game could be saving hundreds of thousands, if not millions, of lives and getting rewarded for it financially.

You can find additional information in our earnings press release, and Form 10-Q, which we filed earlier today.

These efforts are generating strong data to demonstrate C1, ability to rapidly, efficiently, and affordably manufacture, high-quality biologics, including vaccines, monoclonal, antibodies, and other complex proteins with exceptional, productivity and scalability.

Total revenue for the quarter ended September 32025 decreased two $1.165 million compared to one $958000, but appear same period a year ago.

The decrease was due to decreases in research and development revenue of $183000 in license and milestone revenue of $1.425 million from the prior line of agreements and enzyme agreements in 'twenty one for the.

Our Gates Foundation program focused on developing low-cost, monoclonal antibodies for malaria and RSV have achieved key milestones in both productivity and an initial biological characterization when compared with the same antibiotic produced using traditional 1 million CH production methods.

To date, we've received 2.7 million of 3 million. Grant

The decrease is offset by an increase in grant revenue of $816000 from the Gates Foundation and the <unk> in 2025.

Also on the research and development revenue and cost of revenue for the quarter ended September 32025 decreased Q2 hundred $55000 compared to $396000 for the same period a year ago.

under our sepy foundation. Biotechnology Sienna collaboration data is eligible for up to an additional 2.4 million funding to support antigen design, cell line development and cgmp Manufacturing scale up.

Joseph Hazelton: I mean, these people have the wherewithal, the Gates Foundation, to move this to the clinic. It isn't just about that. This opens up the door for monoclonal antibody production and development of a faster, quicker, more efficient way of lowering the cost of goods. If this administration wants to do anything, they want efficient, low-cost biologics because you've got Lilly, you've got Pfizer, you've got Novo. Trump calling them into the office, and they're all caving in. Guess what? It's a drop in the bucket compared to what we can do with this platform to drive the cost of biologics down. There's huge opportunity at the end, but it's also providing technology and advancements for Dapibus. Well, in addition, Tony, it also gives us some potential avenues for cell culture media.

This project has already begun to generate encouraging data, including the successful development of another C1 produced 85. Influenza antigen by FPS

For the quarter ended September 32025 cost of grant revenue from the Gates Foundation and Seth you Glenn.

Initial results, show that the datix, H5 antigen reacts as expected with human model colonal antibodies.

$769000 compared to zero for the same period a year ago.

Research and development expenses for the quarter increased to $572000 compared to $460000 for the same period a year ago. The increase was driven by a rise in the number of active internal research initiatives undertaken to expedite product development.

In collaboration with FBS, we're preparing to provide H5 antigen samples, for preclinical evaluation with the potential to advance into a funded Phase 1 trial.

Yes.

G&A expenses for the quarter increased to two $1.481 million compared to $1 million $298000.

Programs, including the uvac biomes vaccine and the adapt that Consortium for broad spectrum. Fito virus has been vaccines are expected to further, reinforce C1 ability to deliver rapid scalable and cost-effective Production Solutions.

Joseph Hazelton: On one side of the fence, while we have the capability to produce mAbs, we're producing things like transferrin and growth factors. When you look at those markets themselves, the growing interest and demand for therapeutic proteins means that there's going to be growing interest and demand for cell culture media of all types. As we're looking to launch transferrin very quickly here into the cell culture media market, not just for cultured meat, obviously, we're looking to launch into the CHO market, the HEK market, where you need these high-quality, high-purity proteins at a reasonable cost in order to be able to produce some of these more high-value targets like monoclonal antibodies. It really, to me, not only validates our platform for biopharmaceutical use, it's giving us potential opportunities for us to get our other products in there as well.

A year ago.

The increase reflected increases in rebranding and business development expenses of $176000 legal and accounting expenses of $83000, partially offset by a decrease in share based compensation expenses of $79000.

Our collaboration with the process development unit at the niaid NIH continues to generate encouraging data that not only supports vaccine development, but also enhances the productivity and consistency of our C1 platform.

Loss from operations for the quarter increased to $1 $925000 compared to $203000 for the same period a year ago.

The insights and process improvements gained from this and other funded programs strengthen C1 broader capabilities. And these can be applied across both our far bio pharmaceutical and dab. Abyss non-pharmaceutical platforms.

Net loss for the third quarter of 2025 increase in Q1, $976000 or six cents per share compared to $203000 or <unk> <unk> per share for the same period a year ago.

This cross-platform, Innovation drives future value creation, and supports of potential, for additional licensing, and monetization opportunities, and animal, and human health.

Joseph Hazelton: All three of the products that you're planning to manufacture under your own name, DNase 1, transferrin, and growth factor, they're all essentially—they've been de-risked in terms of production validation. The CDMO market, there's plenty of choices. That's not a bottleneck for you commercializing these? No, not today, Tony. It's a great question. Right now, there's plenty of capacity with CDMOs. Obviously, from our standpoint, it's the cost of producing some of these grades that we have to be considerate of. Today, we are not finding that type of an issue. The other thing we're trying to do is identify opportunities in market, right?

As we reported earlier on August the first of 2025, the company closed a public offering of 6.052 million shares of common stock at a public offering price of 95 per share.

While our internal resources remain focused on generating near-term. Revenues to high-value, non therapeutic proteins. These externally, funded biofarma programs provide valuable non-delivery funding in global valuation of our technology.

With that, I'll turn the call over to our Chief Financial Officer. Ping Rosen, we'll walk you through our third quarter 2025 Financial results.

Thank you, Mark.

Net proceeds to the company from the offering were approximately $4 9 million after deducting legal expenses, and they're writing discounts and commissions and other operating expenses.

I will not go over our key financial results for the quarter ended. September 30th, 2025, in more details. You can find additional information in our earnings press release and form 10q. Which we filed earlier today,

As of September 32025.

Cash cash equivalents.

Terrific cash or cash equivalents, and a carrying value of investment grade securities, including accrued interest were approximately $10 4 million comparing.

To the revenue for the quarter. Ended September 30th, 2525 decreased to 1,165,000 compared to 1,958,000 for the period, same period a year ago.

Joseph Hazelton: Whether it's Japan or Korea, or whether it's in the EU, we're adopting or trying to bring CDMOs in all different parts of the world, obviously, to reduce our tariff implications and to improve the economics of being able to distribute these products in bulk. We haven't seen that to be an issue as of yet. Last question, if I may. Can you comment on the burn and how much ability you have to do what you need to? Yes. Tony, this is Ping. We don't normally give the cash guidance, as you know, but as close to the end of the year, as you can see at the third quarter, I think we are still expecting the last quarter to have recognized the half million cash. In October, we received it from Proliant. That will be reflected in the Q4 financials.

Comparing to $9 3 million as of December 31, 2024.

October 14, 2025, we received a third and final milestone payments of $5 million from her lines upon meeting certain productivity thresholds, which was not included in the cash balance as of September 32025.

For the rest of 2025, we expect to see growth in product revenue in our life Sciences, and food and nutrition markets as we launch products and cell culture media, our molecular biology, while maintaining our operating expenses in line with last year.

The decrease was due to decreases in research and development revenue of 183,000 and the license and Milestone revenue of 1,425,000, from the per line agreement. And the enzyme agreement in 2024, the decrease is offset by an increase in Grant revenue of 815,000 from The Gates Foundation and the SE Grant in 2025.

House of research and development revenue and cost of rent revenue for the quarter ended, September 30th, 2025 decreased to 22550 dollars compared to 396,000 for the same period a year ago.

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 in.

For the quarter ended September, 30 2025 cost of Grant revenue from the gate foundation and seti brands.

Joseph Hazelton: Also from a business perspective, I think we are still expecting certain product revenue, even though the amounts may be not as close at this point. It's really hard to give you the actual cash burn at this point. Like I said in the script, we do expect the operating expenses will be in line with last year. Hope that helps. Thank you. Thank you. Next question, Robert Hoffman with Princeton Opportunity Management Group. Yeah. Just to actually pick up on that question. Moving forward, in terms of just headcount and expenses, obviously, you're outsourcing a lot of things, especially the marketing and development, although maybe not the development. What do you see? What do you see out two or three years?

Was 769,000 compared to zero for the same period a year ago.

If time permits the operator will allow additional questions from those who have already spoken.

Research and development expenses for the quarter.

We'll now ask the operator to begin our Q&A session.

After rich Joe Hazelton, our CFO will provide.

The closing remarks.

Operator.

Thank you we will now be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue you.

Increased to 572,000 compared to 460,000 for the same period a year ago. The increase was driven by a rise in the number of active internal, research initiative undertaken to expedite product development.

You may prefer to still be looking for from the Q4 call.

DNA expenses for the quarter, increased to 1,481,000 compared to 1,298,000 for the same period a year ago.

Please go ahead.

May be necessary Buckingham fourth conference call Q.

Our next question comes from Matt Hewitt with Craig Hallum Capital. Please go ahead.

Good afternoon, and thanks for taking the questions, maybe first off and I apologize if I missed this but earlier this week you announced a new relationship with.

The increase reflected increases in rebranding and the Business Development expenses of 176,000 legal and accounting expenses of 83,000 partially offset by a decrease in share-based compensation expenses of 79,000.

Joseph Hazelton: Are you going to have to expand dramatically, or is it something that operating leverage is such that you have to increase your cost structure by 50% while revenue goes up multiples of that? Can you give us just some sense of how the business model scales? Actually, it scales rather easily considering the model that we're focusing on is the distributors, wholesalers, and suppliers. From an infrastructure standpoint, that's not going to require significant amounts of build. Even as we scale, it's really about your manufacturing capacity and getting product to those customers. That we can do, obviously, through our current outsourced model. We don't anticipate significant infrastructure changes in the next two to three years. Now, obviously, as we continue to move forward, and if it makes sense to grow in certain areas, we want to take a look at that.

That's going to grants you access to CRISPR.

Commercial licenses I'm, just curious what does that bring.

Loss from operations for the quarter increased to 1,925,000 compared to 2003000 for the same period a year ago.

To your portfolio, how is that going to help you drive incremental growth and some signed some new contracts.

Hey, Matt It's Joe it's a great question and the license.

Net loss for the third quarter of 2025 increased to 1,976,000 or 6 cents per share compared to 203,000 on 1 cent per share for the same period a year ago.

That we signed with IRS genomics earlier this week actually gives us a a more powerful genetic toolbox to accelerate product development improve optimization yields both with our internal pipeline, but also with our customers having access to the CRISPR technology actually helps our partners for some of them that are in like food and nutrition.

As we reported earlier on, August the 1st 2025, the company closed, its public offering of 6,052,000 shares of its common stock at a public offering price of 95 cents per share.

<unk> licensing can be somewhat problematic, so us having access to the technology to use and these development programs gives us a competitive advantage in some of these markets as well as the ability to expand and accelerate our internal programs. So we see this as a great opportunity to enhance the already strong genetic toolbox that we have.

The net proceeds to the company from the offering were approximately 4.9 million dollars. After deducting legal expenses and the writing discounts and the commissions and other offering expenses.

as of September 30th 2025,

Joseph Hazelton: Right now, the quickest path to acceleration is more product that we're able to actually produce and get onto the market. That's really the main focus for right now. Great. You don't see G&A expense blowing up as your revenue expands. Obviously, it's going to grow, but it's not going to keep pace with your revenue. No. Agreed. Great. Thank you. There are no further questions. I will now turn the call over to Dyadic's President and COO, Joe Hazelton. Thank you, everyone. Putting today's call in perspective, we're very encouraged by the progress we're making. While, of course, we want to see larger gains come faster, the indicators for growth are clear. Our pipeline is advancing, customer engagement is increasing, and the foundation for sustained commercial expansion is firmly in place. Q3 2025 marked a defining step in Dyadic's commercial evolution.

That's great and then maybe a follow up question.

Picking one is tough, but I'll just go with this one that the DNA is one opportunity.

Including include interests or approximately 10.4 million compared to 9.3 million as of December, 31st of 2024.

Sounds like Youre, making progress there how should we be thinking thinking about that opportunity ramping 26, and beyond and how big could that ultimately become thank you.

Again.

Great question. So the market itself for DNA Swan is roughly a $250 million.

On October 14, 2025, we received the third and final milestone payment of half a million dollars from her lions upon meeting a certain productivity threshold, which was not included in the cash balance as of September 30, 2025.

Market for recombinant products today overall, it's closer to one $5 billion market for DNA sworn for all methods of production and platforms. So as we look at what we're looking to do we're targeting distributors suppliers and manufacturers for bulk sale opportunities. So we're not going to be manufacturing or selling to like individual institutions.

For the rest of 2025, we expect to see growth in product revenue in our life sciences and food and nutrition markets, as we launch products in cell culture, media, and molecular biology, while maintaining our operating expenses in line with last year.

And small orders, but the goal is and our focus right now is on securing OEM agreements or broader bulk opportunities. So we expect to see it scale rather rapidly obviously, we're getting lab grade material up first and as we start to expand the quality of the materials are moving up to like ISO and even GMP.

Joseph Hazelton: With our first bulk order, additional purchase orders underway, multiple product launches approaching, we are now executing as a product-driven biotechnology company. With the integration of the CRISPR technology, commercial expansion through Interlink, and strong balance sheet of $10.4 million in cash investments, Dyadic Applied Biosolutions is well-positioned to deliver sustainable revenue, growth, and long-term value creation. In parallel, our legacy biopharmaceutical programs and collaborations continue to advance, providing validation for our technology and the potential for longer-term revenue streams as those programs mature. At the same time, our near-term focus remains on executing the commercial strategy already taking shape across our core markets. Our near-term priorities are clear. First, to accelerate product sales across our life sciences and molecular biology reagent portfolio, where early commercial traction is already underway.

With that, I will not ask the operator to begin our Q&A session. Each caller will be allowed 1 question and 1 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.

Great those are very expensive to manufacturers so as we get the.

After which Joe Hazleton our Co will provide closing remarks.

Initial revenues in we'll be able to target higher margin segments, so it'll be a.

Operator.

Slow growth at first we anticipate it to be steady given the expansion of DNA and RNA products in the market itself.

Sort of.

Not just in mrna is still by the ton of opportunity in cell and gene therapy as well as other markets, where we think we have a great opportunity and advantage given our cost structure in that segment.

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 to remove yourself from the queue for parties for confusing. Speak your equipment, it may be necessary to pick up your hands not before pressing the star key.

That's excellent thank you.

Yes.

Next question John <unk>. Please go ahead.

First question comes from Matt huitt with Craig Hallam cap with. Please go ahead.

Thank you.

So I wanted to ask about the other relationship that you announced with interbank and in Asia.

Joseph Hazelton: Second, to expand customer engagement in key global markets, including Asia, Europe, and North America, through targeted partnerships and business development initiatives. Third, to advance commercialization in our food, nutrition, and bioindustrial segments, where our technology is enabling new sustainable solutions and creating meaningful opportunities for recurring revenue growth. Dyadic is now executing as a commercial organization built on validated platforms, established partnerships, and a clear path toward recurring revenue and profitability. Thank you for your continued support, and we look forward to updating you on our progress. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect your lines at this time.

What characteristics of the customers do you think there will be for the.

For those products there the DNA is one and the transfer and will those be academic centers or labs or what do you think what do you think those customers will be.

Good afternoon, and thanks for taking the questions. Maybe first up, and I apologize if I missed this, but earlier this week, you, you announced a new relationship, um, with, uh, that's going to Grant, you access to crispr, um, commercial licenses. I'm just curious. What does that bring? Um, to your your portfolio? How is that going to help? You drive, uh, incremental growth and, and some signs, some new contracts.

John This is Joe.

Great questions. So the reason, we're targeting those markets specifically.

Is that they are experiencing a significant growth in the uptake of these products with cell and gene therapy manufacturer suppliers and distributors. There are several new companies in several existing companies that are very large we're targeting those organizations for purchase orders and bulk purchase orders and then they would in turn supply the end users.

As Joe, it's it's a great question and the the license uh, that we signed, with the Irish genomics earlier, this week actually gives us a more powerful genetic toolbox to accelerate product development, improve optimization yields both with our internal pipeline. But also with our customers having access to to the crispr technology actually helps our partners uh, for some of them that are in like food and

We're not looking to obviously to become a.

A wholesale distribution network to every supplier every.

Academic institution, but we want to hit where they're pulling their product from.

And I think John one other thing to just keep in mind on all of these programs is.

Nutrition. You know, Christopher licensing can be somewhat problematic so us having access to the technology to use in these development programs gives us a competitive advantage in some of these markets, as well as the ability to expand and accelerate our internal programs. So we see this as a great opportunity to enhance the the already strong genetic toolbox that we have

We're dealing with global markets and as Joe pointed out in Japan, and Korea are expanding and they're not in turmoil like in the U S. Our global presence.

Is paying off.

As you know we're heavily involved in Europe, and now in Asia, and Japan of course in the United States, but India and other countries. So.

That's great. And then maybe a follow-up question. Um and picking 1 is tough but I'll I'll just go with this 1. That the DNA is 1 opportunity. Um, it sounds like you're making progress there. How should we be thinking, thinking about that opportunity, ramping, 26 and Beyond? And and how big could that ultimately become? Thank you.

We're kind of like a lot of ways.

Protected from what's been going on here in the United States to some degree and because we really haven't had a global footprint and we're expanding our global footprint.

Our box as well.

It's a great point because in addition, a lot of the companies are worried with regarding the tariff situations. So in Japan and Korea. They are looking to improve their manufacturing capability.

In the homeland. So that obviously also have the ability to transfer our technology anywhere in the world gives us an advantage. So I think mark you're absolutely right.

They need a lower cost of goods to offset the tariffs agreed to ship back into the U S. So it's opening of doors that hereto for might've been close.

With the tariffs applied to to your product I mean, since it's the technology transfer rather than the product itself crossing the border would that would that be something that you'd have to worry about or would the customer have to worry about in Japan, and Asia and others.

Again, a great question. So, so the market itself uh for DNA is 1 is roughly a 250 million dollar uh market for recumbent products today. Overall it's closer to a 1 and a half billion dollar market for dnase, 1 for all methods of production and platforms. So as we look at, you know what we're looking to do, we're targeting distributor suppliers and manufacturers for bulk sale opportunities. So we're not going to be manufacturing or selling to like individual institutions, you know, in small orders, the, the goal is and our Focus right now is on securing, OEM agreements or broader bulk opportunities. So we expect to see it scale, rather rapidly. Obviously, we're getting lab grade material up first, and as we start to expand the quality of the material. So moving up to like I

Places outside of the U S.

Yes, I think if tariffs went beyond the products coming back and not in the technology going out.

Right right.

Okay. Thank you for taking my question.

Next question, Robert Hoffman with Princeton opportunity management. Please proceed.

Yes. Thanks.

So, and even GMP grade. Uh, those are very expensive to manufacture. So as we we get the, the initial revenues in, we'll be able to Target higher margin segments. So it'll be a a slow growth at first, but we anticipated To Be steady, giving the expansion of the DNA and RNA products in the market itself. I mean, there's a ton of, um, uh, not just an mRNA still by the ton of opportunity selling gene therapy as well as other markets, where we, we think we have a great opportunity to advance our cost structure in that segment.

Just wanted to dig in a little deeper on that Christopher.

That's excellent. Thank you.

Yes.

Next question.

Agreement.

Is that something you have to pay it.

Anything upfront I'm, assuming it might be modest and then how does it how does it work going forward it to you.

I think it's a.

If you discover.

Our system within their genomics.

<unk>.

Are they going to get there.

Hum.

Royalty on the sales of that can you just kind of.

So I wanted to to ask about the, uh, the the other relationship that that you announced with Interlink in um in Asia what uh what characteristics of the customers? Do you think they will be for the um for those products they're the DNA is 1 and the transfer in will those be uh academic centers or Labs or or what do you think? What do you think those customers will be?

I know you can't give specific numbers, but if you can kind of walk us through how.

License agreement like that is structured I appreciate it.

Well first of all to your point I think Joe did a great job of negotiating the deal with the IRS and Alex you got to remember, we're not cutting and clipping out things going into human bodies were improving <unk>.

<unk> cell lines to make them more efficient to make them cleaner to knock out things that might be problematic improve qualities and so I cant given their finances to your point because its confidential.

I can assure you it's nothing like you hear about the CRISPR being used in the pharmaceutical and medical industry.

John this is Joe it's a a great question. So the the reason we're targeting those markets specifically is is that they're experiencing a significant growth in the uptake of these products with selling gene therapy manufacturers suppliers. And Distributors, there's several new companies and several existing companies that that are very large. We're targeting those, uh, organizations for purchase orders in bulk, purchase orders. Uh, and then they would in turn Supply. The end users we're not looking to obviously to, to become a, you know, a a wholesale distribution Network to to every supplier or every, uh, academic institution, but we want to hit where they're pulling their their product from

This is really more about engineering cells, and making them put them at a higher level faster quicker and cheaper than they already are so if somebody brought up any <unk> client out earlier, we're expanding the opportunities our customers don't have to use CRISPR. We have different technologies, we have a site specific integration, which can allow you to do things.

Okay, and I think John 1 of the things you should keep in mind on all these programs is. You know, we're, we're dealing with global markets and it's Joe points out, you know, Japan and Korea are expanding and they're not in turmoil. Like, in the US, our Global presence

He's paying off.

Repeatedly and from a genotype from a regulatory perspective, and the life Sciences and food nutrition, we can do random and the lateral as random will give you. The same result, as Christopher by customers on a faster and a little more directed previous screen more musings you might get to the same point.

You know, as you know, our heavily involved in Europe and now in Asia and Japan of course in the United States, but India and other countries. So, you know, we're we're, we're kind of like, in a lot of ways.

So it gives us an advantage of time and in specific ways to manipulate and modified T cells.

So I think I wouldn't worry about the backend backend and more than make up for it to get higher productivity.

You can afford to pay a little bit of a payment.

<unk>, that's a great deal of finance as well as opening the door to a whole new area that heretofore they couldnt get into.

Protected from, what's been going on here in the United States, is something great and because you know, we really have have Global footprint. And we're expanding the global footprint Farm box as well. And that's a, that's a great point. Because in addition, a lot of the companies are, are worried with regard to the Tariff situation. So, in Japan and Korea, they are looking to improve their manufacturing capability, you know, in in the Homeland. So the obviously us have the ability to transfer our technology anywhere in the world gives us an advantage so I think Mark you're absolutely right. Well and and they need a lower cost of good to offset the tariffs to ship back in the US. So it's opening up doors that are to 4 might have been closed.

Got it okay that sounds great. Thank you.

Next question, John Zander Volkman with Jefferies. Please go ahead.

Great. Thank you and my follow up question is on the infant nutrition product is that something new that is being launched.

Would the Tariff Supply to, uh, to your product? I mean, since it's the technology transfer rather than a product itself crossing the border would that would that be something that you'd have to worry about or would the customer have to worry about in Japan and Asia, and other,

Places outside the US.

Is the customer trying to differentiate it from.

Animal based product or something that I wanted to see if you could help me understand how that that product will be marketed.

Yeah, I think the tariffs would be on the products coming back in. It's not in the technology going out. Yep. So, right. Right.

Okay, thank you for taking my question.

To the end customer.

I think in infant nutrition and medical nutrition, what they're looking to do is basically mimic human breast milk. That's really the one of the key focuses the other is obviously they want to mimic bovine milk as well I think youll see the bovine products be accepted or recombinant non.

Next question, Robert Hoffman with Princeton opportunity management, please?

No. Thanks. Uh, just wanted to dig in a little deeper on the Christopher. Um,

Ers.

Animal bovine products will probably be accepted first because that's a shorter.

A shorter lead for most consumers and most larger companies to take because they are currently using an infant formula today, they're using bovine source materials. So when it gets to things like infant nutrition ultimately.

Um agreement. So is that something you have to pay anything up front? Um, assuming it might be modest. And then how does it? How does it work going forward? If you uh, it's a it's a uh,

The goal would be to mimic human breast milk that would be the ultimate goal.

Having human Alpha lactalbumin.

I think youll see it in like medical nutrition sports nutrition products prior to seeing it in infant nutrition, but that.

To discover, um, a system within their genomics. And you have, are they going to get that a, um, a royalty on the sales of that? Can you just kind of? I, I know you can't do specific numbers but if you can kind of walk us through how, how an a license agreement like that is structured, I appreciate

That is exactly what they are trying to do there is only against again so much.

Well, first of all to your point, I think Joe did a great job and he negotiating to deal with the RS. You know, it's, you got to remember, we're not

Actually naturally drive human breast milk that can be produced in a given year.

As well as bovine milk as well those are self limiting or I wont say unsustainable, but theyre very difficult to scale to significant levels in certain cases, when youre talking about the purity and consistency a need for something like interim nutrition. So the recombinant proteins themselves give them greater ashore.

Cutting and clipping out. Things going in a human bodies, we're improving fungal cell lines to make them more efficient, to make them cleaner to, to knock out things. That might be problematic improve qualities and so I can't get into finances to your point because it's confidential but I can assure you it's nothing like you hear about the crispr being used in the in the pharmaceutical and the medical industry.

<unk> of the product quality and better control over the manufacturing process than you get with animal or even tumor derived proteins. So the goal is there. The roadmap is there obviously getting past some of the regulatory hurdles and then consumer issues as well that will take some time, but we do see this as a great opportunity.

And just to add little color to that just like reliant we've got partners that we're talking to and working with.

Decades of experience in this industry.

It's not like we're tackling this on our own we're aligning our interests with people that actually have the knowledge and expertise.

To drive this forward to commercialization and to think about Omega three which is a kind of a similar thing is used in infant Formula for example is a multibillion dollar product opportunities.

This is really more about engineering cells and making them home at a higher level faster quicker and cheaper than they already are. So and as somebody brought up I think Matt brought point up earlier we're expanding the opportunities. Our customers don't have to use Casper. We have different Technologies. We have a site specific integration which can allow you to do things repeatedly and from a genotype from a regulatory perspective, in the Life Sciences and the food and nutrition. We can do random and a lot of ways random. We'll give you the same result as Christopher but Christopher's a little faster and a little more directed, but if your screen more mutants, you might get to the same point,

so it gives us an advantage of time and and specific ways to manipulate and modify these cells.

And DSM paid martech over $1 billion.

Several years back.

It wasn't too long ago that we had as infant formula shortage.

So that was a big deal.

This is a huge opportunity and we're addressing it not on our own but in partnership with what we think are some of the smartest people that have the industry experiencing for decades.

Going to make up for it. If you could higher productivity, you know, you can afford to pay a little bit of a, of a payment to, to the ERS genomics. That's a great deal for them as well because it's opening the door to a whole new area that here to where they couldn't get into.

Got it. Yep, that sounds great. Thank you.

Okay, great. Thank you for the additional info.

Next question, John Vanderbilt.

Once again, we would like to ask a question. Please press <unk>.

One on your telephone Keypad next question comes from Tony <unk> with <unk>. Please go ahead.

Hi, Mark Hi, Joe I know the business is pretty much of a breakeven proposition initially but.

Great, thank you. Um, my, my follow-up question is on the Infant nutrition product, is that something new that's being launched, is, is the customer trying to differentiate it from an animal based product or something? I want to see if you can help me understand how that that product will be marketed, um, to the End customer.

It's great credibility, great visibility and validation what do you think.

The positive end game could be from the Gates Foundation.

On Saturday.

Well, it's a positive end game could be saving hundreds of thousands if not millions of lives.

And getting rewarded for it financially.

No I mean, these key plant the wherewithal of the Gates Foundation to move this to the clinic and it isn't just about that this opens up the door for monoclonal antibody production and development faster quicker more efficiently.

The cost of goods.

This administration wants to do anything they want an efficient low cost biologics because you've got Lilly Pfizer you got Nova.

I think in infant nutrition and Medical Nutrition. Uh, what they're looking to do is basically mimic uh, human breast milk. The that's really the 1 of the key focuses. The other is obviously they want to to to mimic bovine milk as well. I think you'll see the bovine uh products be accepted or recombinant. Non-animal bovine products will probably be accepted first because that's a, a shorter. Uh, I guess a shorter leap for most consumers and and and most larger, you know, companies to take because they're currently using an infant formula today. They're using bovine Source materials so when it gets to to things like infant nutrition, ultimately, you know, the, the goal would be to mimic, you know, human breast milk, that that would be the ultimate goal.

Volume in the office and they're all came in I guess, what is it driving a bucket comparative what we can do with it.

This platform to drive the cost of biologics now set a huge opportunity and but it's also providing technology advancements for <unk>.

In addition to Tony but it also gives us some potential avenues for cell culture media. So one side of a sense of why we have the capability to produce maps, we're producing things like transfer and in growth factors and when you look at those markets themselves are the growing interest and demand for therapeutic proteins means that theres going to be.

Growing interest and demand for cell culture media of all types. So as we.

We're looking to launch transfer and go very quickly here into the cell culture media market not just for cultured meat, obviously, but we're looking to launch into that show market. The heck market, where you need these high quality high purity proteins.

But you know having human Alpha lacto abdomen. I I think you'll see it in like Medical Nutrition Sports Nutrition products prior to you know, seeing it in infant nutrition but it that is exactly what they're trying to do. There's only, you know, again so much uh like actually naturally Drive human breast milk. That that can be produced in a given year, uh, as well as you know, bovine milk as well. Those are, you know, self-limiting or or or I don't say unsustainable, but they're very difficult to scale. Uh, to significant levels in certain cases, when you're talking about the, the Purity and consistency, you need for something like infant nutrition. So the the recombinant proteins themselves. Give them greater Assurance of the product quality and better control of their manufacturing process. Then you get with animal or even human Drive protein. So, the, the goal is there, the road map is there, obviously, you know, getting past some of the regulatory hurdles and then consumer, uh, issues as well. That'll take some time, but but we do see this as a

A great opportunity.

At a reasonable cost in order to be able to produce some of these more high value targets like monoclonal antibodies. So it really to me is not only validates our platform for biopharmaceutical use it's giving us potential opportunities for us to get our other products in there as well.

And, you know, just to add a little bit of color to that, you know, just like for lion, you know, we've got partners that were talking to and working with and have Decades of experience in the in this industry.

So it's not like we're tackling this on our own. We're aligning our interests with people that actually have the knowledge and the expertise.

All three of the <unk>.

<unk> that youre planning to manufacturer under your own name DNA transfer and growth factor.

To drive this forward to commercialization, if you think about omega-3, which is, you know, kind of a similar thing, it is used in infant formula. For example, these are multi-billion dollar product opportunities.

They are all essentially they've been derisked in terms of production validation.

And DSM, paid martech over a billion dollars.

And the CMO market.

There is plenty of choices.

That's not a bottleneck for you.

We are several years back and it wasn't too long ago that we had this infant formula shortage. So, you know that was a big deal.

Commercializing this.

No not today, Tony I mean, it's a great question right now there's plenty of capacity with <unk>, obviously from our standpoint, it's the cost of producing some of these grades that we have to be considered of.

So this is a huge opportunity and we're addressing it not on our own. But in partnership with what we think, are some of the smartest people that have the industry experience for decades.

Okay, great. Thank you for the additional info.

Today, we are not finding.

That type of an issue.

The other thing we're trying to do is identify opportunities in market rates or whether it's Japan or Korea or whether it's in the EU.

Once again, if you would like to ask a question, please press star 1 on your telephone keypad. Next question comes from Tony Bowers with intro act pleased, that was

<unk>, we're trying to bring <unk> in all different parts of the world, obviously to reduce our tariff implications and to improve the economics of being able to distribute these products in bulk. So we haven't seen that to be an issue as of yet.

One last question if I may can you comment on the burn in.

Hi Mark. Hi Joe. Um, I know the the grant business is pretty much of a a break even proposition initially but uh, it's great credibility, great visibility and validation. What do you think? Uh, the positive end game could be from The Gates Foundation and, and the sep

How much ability you have to do what you need to.

Yes, Tony This is Tim we don't normally do surpassed items as you know, but it's closer to the end of the year as you can see the third quarter I think we are still expecting.

Well the positive end game can be saving hundreds of thousands, if not millions of lives and and getting rewarded for it financially.

The last quarter or two have to recognize the <unk>.

So I mean these people have the wherewithal, the gauge Foundation to to move this to the clinic and it isn't just about that this opens up the door for Monopoly antibody production and development of a faster quicker more efficient way. Lowering the cost of goods.

Cash sweep in October we received the first copper lines. So that will be reflected in the Q4 financials and then also from business perspective, I think we are still expecting certain product revenue.

Even though the amount may be not.

No.

At disclosed at this point, so it's really hard to give you the actual cash burn at this point, though we do like I said in the script, we do expect that operating expenses will be in line with last year.

And if this Administration wants to do anything, they want efficient low cost biologics because you got Lily, you got fizer, you got Novo, you know, Trump calling him in the office and they're all caving in, but guess what? It's a drop in the bucket. Compared to what we can do with this, this platform to drive the cost of biologics down,

So, there's huge opportunity in the end, but it's also providing technology and advancements for depth of us.

Thank you.

Thank you.

Next question, Robert Hoffman with folks in Alberta.

Hello.

Yes actually pick up on that question and are moving forward in terms of like just head count and expenses.

And obviously.

Obviously, you are outsourcing a lot of things.

Especially in the marketing and development.

Although maybe not the development but.

What do you see.

What do you see.

Two or three years are you going to have Tim.

Spanned dramatically or is it something that.

It also gives us some potential avenues for for cell culture media. So, you know, 1 side of the fence, while we have the capability to produce Maps, we're producing things like transferring and growth factors and when you look at, you know, that those markets themselves. So the growing interest in in demand for therapeutic proteins means that there's going to be growing interest in demand for cell culture, media of all types. So you know, as we're looking to launch, you know, transfer. And you know very quickly here into the cell culture. Media Markt not just for for cultured meat obviously. But we're looking to launch into the, the show Market the heck Market where you need these high quality, High Purity proteins.

Operating leverage is such that you have to.

<unk> increased your cost structure by 50% while revenue goes up.

Multiples with that can you give us just some sense of how the business model scales.

At a reasonable cost, in order to be able to produce some of these more high-value targets, like monoclonal antibodies. So it really, to me, not only validates our platform for biopharmaceutical use, but it's also giving us potential opportunities to get our other products in there as well.

Actually we did skills rather easily considered in the model that we're focusing on is the distributors wholesalers and suppliers. So from an infrastructure standpoint, that's not going to require significant amounts of bill. So even as we scale, it's really about your manufacturing capacity and getting product to those customers. So that we.

All 3 of the uh the products that you're planning to to manufacture under your own name, DNA is transferring and growth factor, uh, they're all essentially they've been deep risks in terms of production validation.

Can do obviously through our current outsourced model. So we don't anticipate significant infrastructure changes in the next two to three years and obviously as we continue to move forward and if it makes sense to grow in certain areas. We wanted to take a look at that but right now the quickest path to acceleration is more product that we're able to actually produce.

and the cdmo market, there's plenty of choices but that's not a bottleneck for you, uh, commercializing these

And get onto the market. So that's really the main focus right now.

Okay. So you don't see G&A expense blowing up.

As your revenue expanse, obviously, it's going to grow but it's not going to.

Keep pace with with your revenue.

Hello.

Great. Thank you.

There are no further questions I will now turn the call over to Diane.

No, not today, Tony but it's, it's a great question. Right now, there's plenty of capacity with cdmos obviously, you know, from our standpoint. It's it's the cost of producing it. Some of these grades that we have to be considered of. But, you know, today, we are not finding, uh, you know, that type of issue. The, the other thing we're trying to do is identify opportunities in market, right? So so whether it's Japan or Korea or whether it's in the EU, or we're adopting, or trying to bring cdmos in all different parts of the world, obviously to, you know, it reduce our, our tariff implications and to improve the economics of being able to distribute these products in bulk. So, you know, we we we haven't seen that to be an issue, you know, as of yet.

President <unk>.

Hello, gentlemen.

What is the last question, if I may? Can you comment on the burn and how much ability you have to do what you need to?

Yeah, Tony. This is paying um, we don't normally use the cash guidance. I've seen the

Thank you everyone, putting today's call in perspective, we're very encouraged by the progress we're making while of course, we want to see larger gains come faster the indicators for growth are clear our pipeline is advancing.

<unk> customer engagement is increasing and the foundation for sustained commercial expansion is firmly in place Q.

Q3, 2025 market defining step in diabetics commercial evolution with our first bulk order additional purchase orders underway multiple product launches approaching and we're now executing as a product driven biotechnology company with the integration of the CRISPR technology commercial expansion through interlink and strong balance sheet of $10 4 million in cash and.

Those to the the end of year, as you can see, you know, at the third quarter. Um, I think we are still expecting. Um, you know, the last quarter to have the recognized, the half million. Um, cash, we in October, we received the third per per lines, so that will be reflecting the Q4 financials. And also from business perspective, I think

Investments static pie bio solutions is well positioned to deliver sustainable revenue growth and long term value creation.

We are still expecting certain product Revenue, uh, even though the amount may be not, uh, you know, uh at this close at this point. So it's really hard to give you the actual cash for at this point but we do like I said in scripts we do expect the the operating expenses will be in line with last year.

That thank you.

Thank you.

In parallel our legacy biopharmaceutical programs.

Next question, Robert Hoffman with Section Opportunity Management. Please go ahead.

And collaborations continue to advance providing validation for our technology and the potential for longer term revenue streams as those programs mature at the same time, our near term focus remains on executing the commercial strategy already taking shape across our core markets. Our near term priorities are clear first to accelerate product.

Just pick actually pick up on that question, you know, moving forward uh in terms of like just headcount and expenses um and obviously you're you're Outsourcing a lot of things.

Wells across our life Sciences, and molecular biology reagent portfolio, where early commercial traction is already underway.

To expand customer engagement in key global markets, including Asia, Europe, and North America through targeted partnerships and business development initiatives and third to advanced commercialization and our food nutrition and bio industrial segments, where our technology is enabling new sustainable solutions and creating meaningful opportunities for recurring revenue growth.

Especially in the marketing and development. Um, although maybe not the development, but what what do you see? What do you see out, 2 or 3 years? Are you going to have to expand dramatically or is it, is it something that, uh, operating leverages such that, you know, you have to, you know, increase your your cost structure by 50%. While Revenue goes up, you know, multiples of that. Can you give us just some sense of of how the business model scales?

Diavik is now executing as a commercial organization built on validated platforms established partnerships and a clear path toward recurring revenue and profitability. Thank you for your continued support and we look forward to updating you on our progress.

Okay.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines at this time.

Yeah, actually, if your skills rather, easily, considering the model that that we're focusing on is the Distributors wholesalers and suppliers. So from an infrastructure standpoint, that that's not going to require significant amounts of build, so, even as we scale, it's really about your manufacturing capacity and getting product to those customers. So that we can do, obviously through our our current outsourced model. So we we don't anticipate, you know, significant infrastructure changes, you know, in the next 2, to 3 years now obviously, you know, as we continue to move forward and if it makes sense to to grow in certain areas, we want to take a look at that, but right now, the quickest path to acceleration is more product that we're able to actually, you know, produce and get onto the market. So that's really the the main focus for right now.

AG.

Great. Thank you.

No further questions. I will now turn the call over to Dyadic President and CEO Joseph Hazelton.

Thank you, everyone, for participating in today's call. We are very encouraged by the progress we are making. While, of course, we want to see larger gains come faster, the indicators for growth are clear. Our pipeline is advancing, customer engagement is increasing, and the foundation for sustained commercial expansion is firmly in place.

Q3 2025 marked a defining step in Dyadic's commercial evolution, with our first bulk order and additional purchase orders underway. Multiple product launches are approaching, and we're now executing as a product-driven biotechnology company.

With the integration of CRISPR technology, the commercial expansion through Interlink, and a strong balance sheet of $10.4 million in cash, we are well-positioned to add competitive bio-solutions as well. This positions us to deliver sustainable revenue and long-term value creation.

In parallel or Legacy bio pharmaceutical programs.

And collaborations continue to advance, providing validation.

For our technology and the potential for longer-term revenue streams. As those programs mature at the same time, our near-term Focus remains on executing the commercial strategy already taking shape across our core markets. Our near-term priorities are clear. First to accelerate product sales, across our life sciences, and molecular biology, reach and portfolio where early commercial tracks are already underway.

Second to expand customer engagement in key Global markets, including Asia, Europe and North America through targeted Partnerships and Business Development initiatives and third to advance commercialization in our food nutrition and bioindustrial segments. Where our technology is enabling new Sustainable Solutions and creating meaningful opportunities for recurring Revenue growth.

Dionic is now executing as a commercial organization built on validated platforms established Partnerships and a clear path toward recurring revenue and profitability. Thank you for your continued support and we look forward to updating you on our progress.

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect your lines at the time.