Q4 2025 Dyadic International Inc Earnings Call

March 25, 2026

Operator: Good evening, and welcome to Dyadic International's Full Year 2025 Conference Call. Currently, all participants are in a listen-only mode. Following management's prepared remarks, there will be a brief question and answer session. As a reminder, this conference call is being recorded today, 25 March 2026. I would now like to turn the call over to Mrs. Ping Rawson, Dyadic International's Chief Financial Officer. Please go ahead.

Speaker #2: As a reminder, this conference call is being recorded today, March 25, 2026. I would now like to turn the call over to Mrs. Ping Rawson, DYADIC's Chief Financial Officer. Please go ahead.

Speaker #2: Thank you, Operator. Good evening, and welcome everyone to DYADIC's Full Year 2025 Conference Call. I hope you have had the opportunity to review DYADIC's press releases announcing financial results for the year ended December 31, 2025.

Ping Rawson: Thank you, operator. Good evening, and welcome everyone to Dyadic's Full Year 2025 Conference Call. I hope you have had the opportunity to review Dyadic's press releases announcing financial results for the year ended December 31, 2025. You may access our release and Form 10-K under the Investors section of the company's website at dyadic.com. On today's call, our President and Chief Operating Officer, Joseph Hazelton, will review our full year 2025 business and corporate highlights and provide a commentary on the strategic direction of the business. Our CEO, Mark Emalfarb, will provide an update on our biopharmaceutical programs, and I will follow with a review of our financial results in more detail. After which, we'll hold a brief Q&A session.

Speaker #2: You may access our release and Form 10-K and the investor section of the company's website at dyadic.com. On today's call, our President and Chief Operating Officer, Joe Hazelton, will review our full year 2025 business and corporate highlights.

Speaker #2: And provide a commentary on the strategic direction of the business. Our CEO, Mark Emalfarb, will provide an update on our biopharmaceutical programs, and I will follow with a review of our financial results in more detail.

Speaker #2: After which, we'll hold a brief Q&A session. 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 Dyadic's actual results, performance, scientific or otherwise, or achievements to be materially different from those expressed or implied by these forward-looking statements.

Ping Rawson: 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, uncertainties, and other factors that could cause Dyadic's actual results, performance, scientific or otherwise, or achievements to be materially different from those expressed or implied by these forward-looking statements. Dyadic 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 Dyadic's report filed with the SEC. It is now my pleasure to pass the call to our President and COO, Joe Hazleton. Joe.

Speaker #2: DYADIC 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 DYADIC's report filed with the SEC.

Speaker #2: It is now my pleasure to pass the call to our President and COO, Joe Hazelton. Joe.

Speaker #3: Thank you, Ping, and thank you, everyone, for joining. Since I stepped into the president's role in June of 2025, our focus has been very clear: to accelerate Dyadic's transition from a development-stage platform company into a commercial, product-driven biotechnology business with multiple paths for revenue.

Joseph Hazelton: Thank you, Ping, and thank you everyone for joining. Since I stepped into the president's role in June 2025, our focus has been very clear: to accelerate Dyadic's transition from a development stage platform company into a commercial, product-driven biotechnology business with multiple paths for revenue. Over the past nine months, we've made significant progress executing against that strategy. We've completed a corporate rebrand to Dyadic Applied BioSolutions, aligned the organization around commercialization, strengthened our technological capabilities through CRISPR licensing, secured manufacturing through our expanded Fermbox partnership, and most importantly, we began moving products into the market. I want to emphasize this point upfront. While our reported revenues today still reflect the company in transition, the underlying business has clearly advanced towards commercialization. In less than one year, we've matured from early-stage product development to commercial product launches, distribution agreements, initial product sales, and multiple revenue-generating partnerships.

Joe Hazelton: Thank you, Ping, and thank you everyone for joining. Since I stepped into the president's role in June 2025, our focus has been very clear: to accelerate Dyadic's transition from a development stage platform company into a commercial, product-driven biotechnology business with multiple paths for revenue. Over the past nine months, we've made significant progress executing against that strategy. We've completed a corporate rebrand to Dyadic Applied BioSolutions, aligned the organization around commercialization, strengthened our technological capabilities through CRISPR licensing, secured manufacturing through our expanded Fermbox partnership, and most importantly, we began moving products into the market. I want to emphasize this point upfront. While our reported revenues today still reflect the company in transition, the underlying business has clearly advanced towards commercialization. In less than one year, we've matured from early-stage product development to commercial product launches, distribution agreements, initial product sales, and multiple revenue-generating partnerships.

Speaker #3: Over the past nine months, we've made significant progress executing against that strategy. We've completed a corporate rebrand to DYADIC Applied Bio Solutions, aligned the organization around commercialization, strengthened our technological capabilities through CRISPR licensing, secured manufacturing through our expanded FurMax partnership, and most importantly, we began moving products into the market.

Speaker #3: And I want to emphasize this point upfront. While our reported revenues today still reflect the company in transition, the underlying business has clearly advanced toward commercialization.

Speaker #3: In less than one year, we've matured from early-stage product development to commercial product launches, distribution agreements, initial product sales, and multiple revenue-generating partnerships. Life Sciences is our most advanced business, with the clearest near-term product revenue and repeat purchasing.

Joseph Hazelton: Life sciences is our most advanced business, with the clearest near-term product revenue and repeat purchasing. We are building a portfolio of recombinant animal-free proteins for use in cell culture media and molecular biology workflows. These are not speculative markets. They are large, established, and growing markets that supports biologic manufacturing, cell and gene therapy, cultivated meat, as well as diagnostics and research. These markets are rapidly shifting away from traditional animal-derived inputs towards state-of-the-art recombinant, high quality, consistent, and scalable alternatives, which aligns directly with our production platforms. I want to highlight recombinant albumin as our leading example of progress in life sciences. Albumin is one of the most widely used proteins in biotechnology, critical for stabilizing biologics, supporting cell growth, and improving formulations across diagnostics, therapeutics, and research. Traditional human and animal-derived albumin introduces variability and supply limitations.

Joe Hazelton: Life sciences is our most advanced business, with the clearest near-term product revenue and repeat purchasing. We are building a portfolio of recombinant animal-free proteins for use in cell culture media and molecular biology workflows. These are not speculative markets. They are large, established, and growing markets that supports biologic manufacturing, cell and gene therapy, cultivated meat, as well as diagnostics and research. These markets are rapidly shifting away from traditional animal-derived inputs towards state-of-the-art recombinant, high quality, consistent, and scalable alternatives, which aligns directly with our production platforms. I want to highlight recombinant albumin as our leading example of progress in life sciences. Albumin is one of the most widely used proteins in biotechnology, critical for stabilizing biologics, supporting cell growth, and improving formulations across diagnostics, therapeutics, and research. Traditional human and animal-derived albumin introduces variability and supply limitations.

Speaker #3: We are building a portfolio of recombinant animal-free proteins for use in cell culture media and molecular biology workflows. These are not speculative markets. They are large, established, and growing markets that support biologic manufacturing, cell and gene therapy, cultivated meat, as well as diagnostics and research.

Speaker #3: These markets are rapidly shifting away from traditional animal-derived inputs towards state-of-the-art, recombinant, high-quality, consistent, and scalable alternatives, which aligns directly with our production platforms.

Speaker #3: I want to highlight recombinant albumin as our leading example of progress in Life Sciences. Albumin is one of the most widely used proteins in biotechnology.

Speaker #3: Critical for stabilizing biologics, supporting cell growth, and improving formulations across diagnostics, therapeutics, and research. Traditional human- and animal-derived albumin introduces variability and supply limitations.

Speaker #3: However, through our partnership with Proliant Health and Biologics, we are now producing recombinant human albumin, which was commercially launched in early 2026. The Proliant product, recombinantly produced using Dyadic’s production platform, delivers consistent, high-quality, and scalable supply while avoiding the risks associated with animal-derived products.

Joseph Hazelton: However, through our partnership with Proliant Health and Biologicals, we are now producing recombinant human albumin, which was commercially launched in early 2026. The Proliant product, recombinantly produced using Dyadic's production platform, delivers consistent, high quality, and scalable supply while avoiding the risks associated with animal-derived products. The Proliant collaboration is a profit-sharing arrangement in which Dyadic participates directly in commercial success as Proliant expands commercial sales through their already established global sales channels. This is our first example of a Dyadic platform-enabled product reaching commercial scale with recurring revenue potential driven by our partner sales growth. Now, turning to our animal-free recombinant transferrin. Transferrin is a critical component of serum-free cell culture media, delivering iron essential for cell growth and viability. It's widely used across biopharmaceutical manufacturing, cell and gene therapy, and cultivated meat.

Joe Hazelton: However, through our partnership with Proliant Health and Biologicals, we are now producing recombinant human albumin, which was commercially launched in early 2026. The Proliant product, recombinantly produced using Dyadic's production platform, delivers consistent, high quality, and scalable supply while avoiding the risks associated with animal-derived products. The Proliant collaboration is a profit-sharing arrangement in which Dyadic participates directly in commercial success as Proliant expands commercial sales through their already established global sales channels. This is our first example of a Dyadic platform-enabled product reaching commercial scale with recurring revenue potential driven by our partner sales growth. Now, turning to our animal-free recombinant transferrin. Transferrin is a critical component of serum-free cell culture media, delivering iron essential for cell growth and viability. It's widely used across biopharmaceutical manufacturing, cell and gene therapy, and cultivated meat.

Speaker #3: The ProLiant collaboration is a profit-sharing arrangement in which DYADIC participates directly in commercial success as ProLiant expands commercial sales through their already established global sales channels.

Speaker #3: This is our first example of a DYADIC platform-enabled product reaching commercial scale, with recurring revenue potential driven by our partner sales growth. Now, turning to our animal-free recombinant transferrin.

Speaker #3: Transferrin is a critical component of serum-free cell culture media, delivering iron essential for cell growth and viability. It is widely used across biopharmaceutical manufacturing, cell and gene therapy, and cultivated meat.

Speaker #3: We're developing both bovine transferrin for cost-sensitive, high-volume markets like cultivated meat, and human transferrin for higher-spec applications such as cell and gene therapy, and biopharmaceutical production.

Joseph Hazelton: We're developing both bovine transferrin for cost-sensitive, high-volume markets like cultivated meat, and human transferrin for higher spec applications such as cell and gene therapy and biopharmaceutical production. As a high-value recurring consumable, transferrin demand scales with customer production, directly linking their growth to our revenue. We have further advanced our commercialization capability through an OEM distribution agreement with IBT Bioservices, enabling global sales of our animal-free recombinant products, such as DNase I and transferrin, through IBT's established distribution channels. This accelerates market penetration while supporting both near-term revenue, and positions us for long-term volume growth as products are adopted into customer workflows. DNase I is a widely used high-value enzyme with applications across bioprocessing and molecular biology workflows. DNase I is used to remove residual DNA and is essential in areas such as cell and gene therapy manufacturing, biologics production, RNA workflows, and research and diagnostics.

Joe Hazelton: We're developing both bovine transferrin for cost-sensitive, high-volume markets like cultivated meat, and human transferrin for higher spec applications such as cell and gene therapy and biopharmaceutical production. As a high-value recurring consumable, transferrin demand scales with customer production, directly linking their growth to our revenue. We have further advanced our commercialization capability through an OEM distribution agreement with IBT Bioservices, enabling global sales of our animal-free recombinant products, such as DNase I and transferrin, through IBT's established distribution channels. This accelerates market penetration while supporting both near-term revenue, and positions us for long-term volume growth as products are adopted into customer workflows. DNase I is a widely used high-value enzyme with applications across bioprocessing and molecular biology workflows. DNase I is used to remove residual DNA and is essential in areas such as cell and gene therapy manufacturing, biologics production, RNA workflows, and research and diagnostics.

Speaker #3: It's a high-value, recurring consumable. Transferrin demand scales with customer production, directly linking their growth to our revenue. We've further advanced our commercialization capability through an OEM distribution agreement with IBT Bio Services, enabling global sales of our animal-free recombinant products such as DNA Swann and transferrin through IBT's established distribution channels.

Speaker #3: This accelerates market penetration while supporting both near-term revenue, and positions us for long-term volume growth as products are adopted into customer workflows. DNA Swann is a widely used, high-value enzyme with applications across bioprocessing and molecular biology workflows.

Speaker #3: DNA Swann is used to remove residual DNA and is essential in areas such as cell and gene therapy manufacturing, biologics production, RNA workflows, and research and diagnostics.

Speaker #3: We've completed production validation and, together with FurMax, launched recombinant RNA-free DNA Swann as our first product commercialized under our expanded partnership with FurMax. As adoption grows, we expect progression from sampling to qualification to routine purchasing, driving steady volume growth.

Joseph Hazelton: We've completed production validation and together with Fermbox, launched recombinant RNase-free DNase I as our first product commercialized under our expanded partnership with Fermbox. As adoption grows, we expect progression from sampling to qualification to routine purchasing, driving steady volume growth. We're also advancing growth factors, specifically Fibroblast Growth Factor or FGF, which stimulates cell growth and is a key cost driver in cell culture systems, particularly in cultivated meat and advanced therapeutic applications. In Q4 2025, we achieved our first sales of FGF, an important milestone reflecting technical validation and initial revenue. Growth factors are typically among the higher value inputs in cell culture systems, and as a result, can generate meaningful revenue even at modest volumes. We view this as the start of a broader portfolio targeting both high volume, cost-sensitive markets like cultivated meat and premium applications such as cell and gene therapy.

Joe Hazelton: We've completed production validation and together with Fermbox, launched recombinant RNase-free DNase I as our first product commercialized under our expanded partnership with Fermbox. As adoption grows, we expect progression from sampling to qualification to routine purchasing, driving steady volume growth. We're also advancing growth factors, specifically Fibroblast Growth Factor or FGF, which stimulates cell growth and is a key cost driver in cell culture systems, particularly in cultivated meat and advanced therapeutic applications. In Q4 2025, we achieved our first sales of FGF, an important milestone reflecting technical validation and initial revenue. Growth factors are typically among the higher value inputs in cell culture systems, and as a result, can generate meaningful revenue even at modest volumes. We view this as the start of a broader portfolio targeting both high volume, cost-sensitive markets like cultivated meat and premium applications such as cell and gene therapy.

Speaker #3: We're also advancing growth factors—specifically, fibroblast growth factor, or FGF—which stimulates cell growth and is a key cost driver in cell culture systems, particularly in cultivated meat and advanced therapeutic applications.

Speaker #3: In the fourth quarter of 2025, we achieved our first sales of FGF, an important milestone reflecting technical validation and initial revenue. Growth factors are typically among the higher-value inputs in cell culture systems and, as a result, can generate meaningful revenue even at modest volumes.

Speaker #3: We view this as the start of a broader portfolio targeting both high-volume, cost-sensitive markets like cultivated meat, and premium applications such as cell and gene therapy.

Speaker #3: Our Life Sciences development has evolved into a multi-product portfolio serving large, recurring end markets with multiple revenue channels, including direct product sales, distribution partnerships, and profit-sharing arrangements.

Joseph Hazelton: Our life science development has evolved into a multi-product portfolio serving large recurring end markets with multiple revenue channels, including direct product sales, distribution partnerships, and profit-sharing arrangements. These are markets where product adoption typically progresses from sampling to qualification and into scaled use, and we're now entering the early stages of that curve. As these products move into routine use, we expect to see increasing repeat orders and revenue growth through 2026 and beyond. Turning to food and nutrition, this segment represents a significant opportunity driven by the global shift towards sustainable animal-free proteins and functional ingredients. Our strategy here is to leverage our Dapibus platform for large-scale, cost-effective production of proteins that replicate the nutritional and functional properties of traditional dairy and food ingredients while partnering with companies that have established market access and application expertise.

Joe Hazelton: Our life science development has evolved into a multi-product portfolio serving large recurring end markets with multiple revenue channels, including direct product sales, distribution partnerships, and profit-sharing arrangements. These are markets where product adoption typically progresses from sampling to qualification and into scaled use, and we're now entering the early stages of that curve. As these products move into routine use, we expect to see increasing repeat orders and revenue growth through 2026 and beyond. Turning to food and nutrition, this segment represents a significant opportunity driven by the global shift towards sustainable animal-free proteins and functional ingredients. Our strategy here is to leverage our Dapibus platform for large-scale, cost-effective production of proteins that replicate the nutritional and functional properties of traditional dairy and food ingredients while partnering with companies that have established market access and application expertise.

Speaker #3: These are markets where product adoption typically progresses from sampling to qualification and into scaled use. And we're now entering the early stages of that curve.

Speaker #3: As these products move into routine use, we expect to see increasing repeat orders and revenue growth through 2026 and beyond. Turning to food and nutrition, this segment represents a significant opportunity driven by the global shift towards sustainable animal-free proteins and functional ingredients.

Speaker #3: Our strategy here is to leverage our DAPABIS platform for large-scale, cost-effective production of proteins that replicate the nutritional and functional properties of traditional dairy and food ingredients.

Speaker #3: While partnering with companies that have established market access and application expertise, another important development in 2025 was our agreement with BrigBio to develop and commercialize animal-free recombinant bovine alpha-lactate albumin for global health and nutrition markets.

Joseph Hazelton: Another important development in 2025 was our agreement with BRIG BIO to develop and commercialize animal-free recombinant bovine alpha-lactalbumin for global health and nutrition markets. Alpha-lactalbumin is a key whey protein naturally present in human breast milk, which is essential for early childhood development due to its high nutritional value and amino acid composition. Demand is increasing for scalable, non-animal produced recombinant alpha-lactalbumin to better replicate the benefits of human milk. This program includes funded development, milestone payments, and revenue participation, which aligns with our capital efficient model of near-term funding and long-term royalties in a large growing market, where even modest market penetration can translate into meaningful revenue given the scale of global demand. We're also advancing our human lactoferrin program, where we have established a stable production strain and are now optimizing yields and performance.

Joe Hazelton: Another important development in 2025 was our agreement with BRIG BIO to develop and commercialize animal-free recombinant bovine alpha-lactalbumin for global health and nutrition markets. Alpha-lactalbumin is a key whey protein naturally present in human breast milk, which is essential for early childhood development due to its high nutritional value and amino acid composition. Demand is increasing for scalable, non-animal produced recombinant alpha-lactalbumin to better replicate the benefits of human milk. This program includes funded development, milestone payments, and revenue participation, which aligns with our capital efficient model of near-term funding and long-term royalties in a large growing market, where even modest market penetration can translate into meaningful revenue given the scale of global demand. We're also advancing our human lactoferrin program, where we have established a stable production strain and are now optimizing yields and performance.

Speaker #3: Alpha-lactate albumin is a key whey protein naturally present in human breast milk, which is essential for early childhood development due to its high nutritional value and amino acid composition.

Speaker #3: Demand is increasing for scalable, non-animal-produced recombinant alpha-lactalbumin to better replicate the benefits of human milk. This program includes funded development, milestone payments, and revenue participation.

Speaker #3: This aligns with our capital-efficient model of near-term funding and long-term royalties in a large, growing market, where even modest market penetration can translate into meaningful revenue given the scale of global demand.

Speaker #3: We're also advancing our human lactoferrin program, where we have established a stable production strain and are now optimizing yields and performance. Lactoferrin is a high-value functional protein used in infant nutrition, dietary supplements, and wellness products due to its antimicrobial and immune-supporting properties.

Joseph Hazelton: Lactoferrin is a high-value functional protein used in infant nutrition, dietary supplements, and wellness products due to its antimicrobial and immune-supporting properties. Compared to traditional sources, recombinant animal-free production offers improved consistency and scalability. We see potential for both direct sales and partner-driven revenue as we move towards commercialization. Another product approaching commercialization is recombinant bovine chymosin with our partner, Inzymes, targeting a 2026 launch. Chymosin is a key enzyme in cheese production, enabling the coagulation of milk proteins into curds. To date, we've received upfront access fees and milestone payments with potential royalties during commercialization. This program reflects our capital efficient partnership model of generating upfront fees and milestones while building long-term royalty streams without assuming downstream commercialization risk. More broadly, our food nutrition pipeline continues to expand across non-animal dairy proteins and food enzymes, supported by a growing demand for sustainable and functional ingredients.

Joe Hazelton: Lactoferrin is a high-value functional protein used in infant nutrition, dietary supplements, and wellness products due to its antimicrobial and immune-supporting properties. Compared to traditional sources, recombinant animal-free production offers improved consistency and scalability. We see potential for both direct sales and partner-driven revenue as we move towards commercialization. Another product approaching commercialization is recombinant bovine chymosin with our partner, Inzymes, targeting a 2026 launch. Chymosin is a key enzyme in cheese production, enabling the coagulation of milk proteins into curds. To date, we've received upfront access fees and milestone payments with potential royalties during commercialization. This program reflects our capital efficient partnership model of generating upfront fees and milestones while building long-term royalty streams without assuming downstream commercialization risk. More broadly, our food nutrition pipeline continues to expand across non-animal dairy proteins and food enzymes, supported by a growing demand for sustainable and functional ingredients.

Speaker #3: Compared to traditional sources, recombinant animal-free production offers improved consistency and scalability. We see potential for both direct sales and partner-driven revenue as we move towards commercialization.

Speaker #3: Another product approaching commercialization is recombinant bovine chymosin, with our partner enzymes targeting a 2026 launch. Chymosin is a key enzyme in cheese production, enabling the coagulation of milk proteins into curds.

Speaker #3: To date, we've received upfront access fees and milestone payments, with potential royalties during commercialization. This program reflects our capital-efficient partnership model of generating upfront fees and milestones while building long-term royalty streams, without assuming downstream commercial-related commercialization risk.

Speaker #3: More broadly, our food and nutrition pipeline continues to expand across non-animal dairy proteins and food enzymes, supported by a growing demand for sustainable and functional ingredients.

Speaker #3: As these programs advance toward commercialization, we expect increasing milestone achievements and product launches, with more meaningful contributions from recurring revenues beginning in 2026. In the bioindustrial segment, our focus is on scaling our technology into large-volume applications through strategic partnerships, with an emphasis on capital efficiency and manufacturing leverage.

Joseph Hazelton: As these programs advance toward commercialization, we expect increasing milestone achievements and product launches with more meaningful contribution from recurring revenues beginning in 2026. In the Bioindustrial segment, our focus is on scaling our technology into large volume applications through strategic partnerships with an emphasis on capital efficiency and manufacturing leverage. A key component of this strategy is our expanded collaboration with Fermbox Bio, which provides access to commercial scale manufacturing and additional product development opportunities in multiple markets. This enables faster commercialization without investing significant capital in our own large scale infrastructure, an important advantage in cost and volume driven markets. One example is EN3ZYME, an enzyme cocktail produced using our Dapibus platform that converts agricultural residues into fermentable sugars for biofuels and other industrial applications.

Joe Hazelton: As these programs advance toward commercialization, we expect increasing milestone achievements and product launches with more meaningful contribution from recurring revenues beginning in 2026. In the Bioindustrial segment, our focus is on scaling our technology into large volume applications through strategic partnerships with an emphasis on capital efficiency and manufacturing leverage. A key component of this strategy is our expanded collaboration with Fermbox Bio, which provides access to commercial scale manufacturing and additional product development opportunities in multiple markets. This enables faster commercialization without investing significant capital in our own large scale infrastructure, an important advantage in cost and volume driven markets. One example is EN3ZYME, an enzyme cocktail produced using our Dapibus platform that converts agricultural residues into fermentable sugars for biofuels and other industrial applications.

Speaker #3: A key component of this strategy is our expanded collaboration with FurMax Bio, which provides access to commercial-scale manufacturing and additional product development opportunities in multiple markets.

Speaker #3: This enables faster commercialization without investing significant capital in our own large-scale infrastructure—an important advantage in cost- and volume-driven markets. One example is N3zyme, an enzyme cocktail produced using our DAPABIS platform that converts agricultural residues into fermentable sugars for biofuels and other industrial applications.

Speaker #3: FurMax has fulfilled its first large-scale order and is expanding sampling and commercial activity, including in the Asia-Pacific region, demonstrating both performance and scalability in industrial settings.

Joseph Hazelton: Fermbox has fulfilled its first large scale order and is expanding sampling and commercial activity, including in the Asia Pacific region, demonstrating both performance and scalability in industrial settings. From a business model perspective, our collaboration with Fermbox is structured around participation in product economics, typically through profit sharing arrangements. This provides exposure to high volume markets with scalable revenue potential while limiting our capital exposure. More broadly, our Dapibus platform is being applied across industrial segments, including biomass conversion, pulp and paper processing, sustainable materials, and bio-based manufacturing, such as microcrystalline cellulose and advanced nano materials. These markets are increasingly focused on efficiency and sustainability, where enzyme performance and cost profile are key drivers of adoption. We're also leveraging the platform's advantages of speed, yield, and cost efficiency within biopharmaceutical applications through partner funded programs, enabling continued development without impacting near-term commercial execution.

Joe Hazelton: Fermbox has fulfilled its first large scale order and is expanding sampling and commercial activity, including in the Asia Pacific region, demonstrating both performance and scalability in industrial settings. From a business model perspective, our collaboration with Fermbox is structured around participation in product economics, typically through profit sharing arrangements. This provides exposure to high volume markets with scalable revenue potential while limiting our capital exposure. More broadly, our Dapibus platform is being applied across industrial segments, including biomass conversion, pulp and paper processing, sustainable materials, and bio-based manufacturing, such as microcrystalline cellulose and advanced nano materials. These markets are increasingly focused on efficiency and sustainability, where enzyme performance and cost profile are key drivers of adoption. We're also leveraging the platform's advantages of speed, yield, and cost efficiency within biopharmaceutical applications through partner funded programs, enabling continued development without impacting near-term commercial execution.

Speaker #3: From a business model perspective, our collaboration with FurMax is structured around participation and product economics, typically through profit-sharing arrangements. This provides exposure to high-volume markets with scalable revenue potential while limiting our capital exposure.

Speaker #3: More broadly, our DAPABIS platform is being applied across industrial segments, including biomass conversion, pulp and paper processing, sustainable materials, and biobased manufacturing such as microcrystalline cellulose and advanced nanomaterials.

Speaker #3: These markets are increasingly focused on efficiency and sustainability, where enzyme performance and cost profile are key drivers of adoption. We're also leveraging the platform's advantages of speed, yield, and cost efficiency within the biopharmaceutical applications through partner-funded programs, enabling continued development without impacting near-term commercial execution.

Speaker #3: With that, I'll now turn the call over to Mark Emalfarb, Dyadic CEO, to provide an update on these collaborations. Mark?

Joseph Hazelton: With that, I'll now turn the call over to Mark Emalfarb, Dyadic's CEO, to provide an update on these collaborations. Mark?

Joe Hazelton: With that, I'll now turn the call over to Mark Emalfarb, Dyadic's CEO, to provide an update on these collaborations. Mark?

Speaker #2: Thank you, Joe, and good evening, everyone. We continue to advance our partner-funded biopharmaceutical collaborations, applying a C1 platform into vaccines and antibody development through a non-dilutive, capital-efficient model.

Mark Emalfarb: Thank you, Joe, and good evening, everyone. We continue to advance our partner-funded biopharmaceutical collaborations, applying the C1 platform into vaccines and antibody development through a non-dilutive capital-efficient model. Across multiple programs, including infectious disease vaccines and monoclonal antibodies, we're seeing consistent expression, proper protein folding, and functional activity, supporting performance comparable to mammalian and insect cell production systems. To highlight a few efforts, our Gates Foundation collaboration continues to progress. With approximately $2.4 million received to date under a $3.1 million grant, early data shows C1-derived monoclonal antibodies targeting RSV and malaria are comparable to CHO-produced material supporting further development. In our CEPI collaboration with the Fondazione Biotecnopolo di Siena, we're advancing recombinant vaccines, including scale-up towards GMP manufacturing with an H5 avian influenza antigen currently in preclinical evaluation.

Speaker #2: Across multiple programs, including infectious disease vaccines and monoclonal antibodies, we're seeing consistent expression, proper protein folding, and functional activity, supporting performance comparable to mammalian and insect cell production systems.

Speaker #2: To highlight a few efforts, our Gates Foundation collaboration continues to progress. With approximately $2.4 million received to date, under a $3.0 million grant, early data shows C1-derived monoclonal antibodies targeting RSV and malaria are comparable to CHO-produced material, supporting further development.

Speaker #2: In our CEPI collaboration with the Fondazione Biotechnology Siena, we're advancing recombinant vaccines, including scale-up towards GMP manufacturing, with an H5 avian influenza antigen currently in preclinical evaluation.

Speaker #2: We're also working with leading domestic and international organizations, including the NIAID, NIH, the Scripps Research Institute, Oxford University, UVECT Bio, Adapvac, and the European Vaccine Hub.

Mark Emalfarb: We're also working with leading domestic and international organizations, including the NIAID, NIH, the Scripps Research Institute, University of Oxford, uVax Bio, AdaptVac, and the European Vaccine Hub, supporting a growing number of vaccine and antibody programs. These collaborations continue to generate an expanding body of data that not only validates the performance of our C1 platform across diverse targets, but also reinforces its scalability and broad applicability as we move toward product development and commercial execution. Within these efforts, we are advancing respiratory vaccine antigen programs, including ongoing RSV work with uVax Bio. Separately, we have initiated a new collaboration with the Scripps Research Institute focused on pre-fusion antigens and multivalent vaccine candidates targeting RSV, human metapneumovirus, HMPV, and parainfluenza virus type three, PIV3. Early preclinical studies indicate that C1-produced RSV pre-fusion antigens perform comparably to mammalian-produced antigens while demonstrating potentially improved neutralizing antibody responses relative to insect cell production-based systems.

Speaker #2: Supporting a growing number of vaccine and antibody programs, these collaborations continue to generate an expanding body of data that not only validates the performance of our C1 platform across diverse targets, but also reinforces its scalability and broad applicability as we move toward product development and commercial execution.

Speaker #2: Within these efforts, we are advancing respiratory vaccine antigen programs, including ongoing RSV work with UVECT Bio. Separately, we have initiated a new collaboration with the Scripps Research Institute focused on prefusion antigens and multivalent vaccine candidates.

Mark Emalfarb: Within these efforts, we are advancing respiratory vaccine antigen programs, including ongoing RSV work with uVax Bio. Separately, we have initiated a new collaboration with the Scripps Research Institute focused on pre-fusion antigens and multivalent vaccine candidates targeting RSV, human metapneumovirus, HMPV, and parainfluenza virus type three, PIV3. Early preclinical studies indicate that C1-produced RSV pre-fusion antigens perform comparably to mammalian-produced antigens while demonstrating potentially improved neutralizing antibody responses relative to insect cell production-based systems.

Speaker #2: Targeting RSV, human metapneumovirus (HMPV), and parainfluenza virus type 3 (PIV3). Early preclinical studies indicate that C1-produced RSV prefusion antigens perform comparably to mammalian-produced antigens, while demonstrating potentially improved neutralizing antibody responses relative to insect cell production-based systems.

Speaker #2: These respiratory indications represent a large global vaccine opportunity, where scalable manufacturing remains a key constraint. Our C1 platform is designed to address this through high-yield expression and efficient production of complex prefusion antigens.

Mark Emalfarb: These respiratory indications represent a large global vaccine opportunity, where scalable manufacturing remains a key constraint. Our C1 platform is designed to address this through high yield expression and efficient production of complex pre-fusion antigens, potentially enhancing efficacy while also improving cost efficiency and shortening overall development timelines. Overall, these collaborations continue to validate our C1 technology while building value through potential licensing, milestone payments, and royalties, which is incremental to our near-term product-driven revenue model. With that, now I'll turn our call over to Chief Financial Officer Ping Rawson, who will walk through our full year 2025 financial results.

Speaker #2: Potentially enhancing efficacy while also improving cost efficiency and shortening overall development timelines. Overall, these collaborations continue to validate our C1 technology, while building value through potential licensing, milestone payments, and royalties, which is incremental to our near-term product-driven revenue model.

Speaker #2: With that, now I'll turn our call over to Chief Financial Officer Ping Rawson, who will walk through our full-year 2025 financial results.

Speaker #3: Thank you, Mark. I will now go over our key financial results for the year ended December 31, 2025, in more detail. You can find additional information in our earnings press release on Form 10-K, which we filed earlier today.

Ping Rawson: Thank you, Mark. I will now go over our key financial results for the year ended December 31, 2025 in more detail. You can find additional information in our earnings press release and Form 10-K, which we filed earlier today. For the year ended December 31, 2025, total revenue was $3.09 million compared to $3.5 million in 2024. The decrease was primarily driven by lower R&D collaboration activity and a reduced license on milestone revenue, partially offset by $1.86 million increase in grant revenue from the Gates Foundation and SAPI. Cost of R&D revenue declined to $0.6 million compared to $1.2 million in 2024. Gates and SAPI grant-related costs totaled $1.72 million in 2025 compared to $0 million in 2024.

Speaker #3: For the year ended December 31, 2025, total revenue was $3.09 million, compared to $3.5 million in 2024. The decrease was primarily driven by lower R&D collaboration and milestone revenue, partially offset by a $1.86 million increase in grant revenue from the Gates Foundation and CEPI.

Speaker #3: Cost of R&D revenue declined to $0.6 million compared to $1.2 million in 2024. Gates and the CEPI grant-related costs totaled $1.72 million in 2025 compared to $0 in 2024.

Speaker #3: Internal R&D expenses increased modestly to $2.16 million in 2025 from $2.04 million in 2024, as we continued to invest in advancing our internal pipeline towards commercialization.

Ping Rawson: Internal R&D expenses increased modestly to $2.16 million in 2025 from $2.04 million in 2024, as we continued to invest in advancing our internal product pipeline towards commercialization. G&A expenses decreased to $5.76 million in 2025 from $6.13 million in 2024, driven by lower compensation and insurance costs. As a result, loss from operations was $7.19 million in 2025, compared to $5.9 million in the prior year. Net loss was $7.36 million or $0.23 per share, compared to a net loss of $5.81 million or $0.20 per share in 2024.

Speaker #3: DNA expenses decreased to $5.76 million in 2025 from $6.13 million in 2024, driven by lower compensation and insurance costs. As a result, loss from operations was $7.19 million in 2025, compared to $5.9 million in the prior year.

Speaker #3: A net loss was $7.36 million, or $0.23 per share, compared to a net loss of $5.81 million, or $0.20 per share, in 2024.

Speaker #3: We ended the year of 2025 with approximately $8.6 million in cash, cash equivalents, restricted cash, and investment-grade securities. Our net cash used in operating activities was approximately $5.7 million in 2025.

Ping Rawson: We ended the year of 2025 with approximately $8.6 million in cash equivalents, restricted cash, and investment-grade securities. Our net cash used in operating activities was approximately $5.7 million in 2025. Looking ahead to 2026, we expect disciplined cash usage while prioritizing high-impact R&D programs and grant-funded activities. We also anticipate growth in product revenues across our life sciences and food and nutrition markets, driven by new product launches in cell culture media, while maintaining operating expenses generally in line with 2025 levels. Based on our current operating plan, we believe our existing cash resources provide runway into 2027. However, we will continue to evaluate additional capital resources, including strategic partnerships and capital market activities, to further strengthen our balance sheet and support long-term growth. Next, I'd like to briefly address the rationale for establishing an ATM facility.

Speaker #3: Looking ahead to 2026, we expect disciplined cash usage while prioritizing high-impact R&D programs and grant-funded activities. We also anticipate growth in product revenues across our life sciences and food and nutrition markets.

Speaker #3: Driven by new product launches in cell culture media, while maintaining operating expenses generally in line with 2025 levels. Based on our current operating plan, we believe our existing cash resources provide runway into 2027.

Speaker #3: However, we will continue to evaluate additional capital resources, including strategic partnerships and capital market activities, to further strengthen our balance sheet and support long-term growth.

Speaker #3: Next, I'd like to briefly address the rationale for establishing an ATM facility. This is primarily about flexibility. The ATM gives us the ability to access capital opportunistically, depending on market conditions, pricing, and trading volume, rather than being forced into a larger, more diluted transaction.

Ping Rawson: This is primarily about flexibility. The ATM gives us ability to access capital optimistically, depending on market conditions, pricing, and trading volume, rather than being forced into a larger, more dilutive transaction. It is also a more efficient financial tool used by the majority of microcap biotech companies with lower costs, no roadshow, and less market disruption. Importantly, putting an ATM in place now allows us to be proactive and prepared if favorable market windows open. That said, this does not mean we will use it. The ATM simply provides optionality, and we will only access it if and when it makes sense. Overall, it is a common and flexible tool that complements other financing and partnership opportunities, and we intend to use it prudently with a focus on shareholder value. With that, I will now ask the operator to begin our Q&A session.

Speaker #3: It is also a more efficient financial tool used by the majority of micro-cap biotech companies, with lower costs, no roadshow, and less market disruption.

Speaker #3: Importantly, putting an ATM in place now allows us to be proactive and prepared if favorable market windows open. That said, this does not mean we will use it.

Speaker #3: The ATM simply provides optionality, and we will only access it if and when it makes sense. Overall, it is a common and flexible tool that complements other financing and partnership opportunities, and we intend to use it presently with a focus on shareholder value.

Speaker #3: 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.

Ping Rawson: 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.

Ping Rawson: 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.

Speaker #3: If time permits, the operator will allow additional questions from those who have already spoken. I will ask the operator to begin our Q&A session.

Ping Rawson: I will ask the operator to begin our Q&A session, after which Joe Hazelton will provide the closing remarks. Operator?

Speaker #3: After which, Joseph Hazelton will provide closing remarks. Operator?

Speaker #4: 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.

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 may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we pull for questions. Thank you. Our first question comes to the line of Matt Hewitt with Craig-Hallum. Please proceed.

Speaker #4: A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue.

Speaker #4: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we pull for questions.

Speaker #4: Thank you. Our first question comes from the line of Matt Hewitt with Craig Hallum. Please proceed.

Operator: Thank you. Our first question comes to the line of Matt Hewitt with Craig-Hallum. Please proceed.

Speaker #5: Good afternoon. Thanks for taking the questions. Obviously, a very successful start to the year given the number of new partnerships and collaborations that you've announced.

Matt Hewitt: Good afternoon, and thanks for taking the questions. Obviously a very successful start to the year, given the number of new partnerships and collaborations that you've announced. I'm just curious, as we think about some of these product launches, how should we be thinking about the timing and kind of how the ramp of product revenues will progress over the course of this year and, quite frankly, more importantly, as we get into 2027 and 2028?

Speaker #5: I'm just curious, as we think about some of these product launches, how should we be thinking about the timing and kind of how that ramp of product revenues will progress over the course of this year, and, quite frankly, more importantly, as we get into 2027 and 2028?

Speaker #6: Hey, Matt. It's Joe. That's a great question. And it's kind of a balance, right? It's a balance of how much inventory we try to produce versus what the current needs are in the market.

Joseph Hazelton: Hey, Matt, it's Joe. It's a great question, and it's kind of a balance, right? It's a balance of how much inventory do we try to produce versus what the current needs are in the market. Obviously, having a distribution agreement set up through IBT and we're pursuing others, we're trying to balance the needs we have currently with the market expectations that we anticipate, you know, later this year. We do, you know, I guess look at it as a slow ramp because the products do need to be into the market and qualified for use in the workflows that they're being ordered for.

Joe Hazelton: Hey, Matt, it's Joe. It's a great question, and it's kind of a balance, right? It's a balance of how much inventory do we try to produce versus what the current needs are in the market. Obviously, having a distribution agreement set up through IBT and we're pursuing others, we're trying to balance the needs we have currently with the market expectations that we anticipate, you know, later this year. We do, you know, I guess look at it as a slow ramp because the products do need to be into the market and qualified for use in the workflows that they're being ordered for.

Speaker #6: Obviously, having distribution agreements set up through IBT, and we're pursuing others, we're trying to balance the needs we have currently with the market expectations that we anticipate later this year.

Speaker #6: So we do, I guess, look at it as a slow ramp, because the products do need to be into the market and qualified for use in the workflows that they're being ordered for.

Speaker #6: So while some of it’s like a research type of use, that’s usually a quicker pickup and a quicker conversion than something in the cell and gene therapy.

Joseph Hazelton: While some, you know, if it's like a research type of a use, that's usually a quicker pickup and a quicker conversion than something in the cell and gene therapy. It kind of depends on use case as well. Right now, I would anticipate it's kind of a slower start, but as these companies get used to the products and as they get into the market and get established in the workflows, you can see that significantly start to pick up. Obviously, our goal is to sign more distribution agreements so we can have larger product volume opportunities rather than just with, you know, individual companies.

Joe Hazelton: While some, you know, if it's like a research type of a use, that's usually a quicker pickup and a quicker conversion than something in the cell and gene therapy. It kind of depends on use case as well. Right now, I would anticipate it's kind of a slower start, but as these companies get used to the products and as they get into the market and get established in the workflows, you can see that significantly start to pick up. Obviously, our goal is to sign more distribution agreements so we can have larger product volume opportunities rather than just with, you know, individual companies.

Speaker #6: So it kind of depends on use cases as well. But right now, I would anticipate it's kind of a slower start, but as these companies get used to the products and as they get into the market and get established in the workflows, you can see that significantly start to pick up.

Speaker #6: And obviously, our goal is to sign more distribution agreements so we can have larger product volume opportunities, rather than just with individual companies.

Speaker #5: Got it. And on the license front, obviously—and you just noted this—that you're looking to sign more collaborations. Do you anticipate that those collaborations, those new agreements, would incorporate some type of an upfront license to get the correct distribution and having the agreement in place, rather than necessarily getting upfront cash?

Matt Hewitt: Got it. On the license front, obviously, and you just noted this, that you're looking to sign more collaborations. Do you anticipate that those collaborations, those new agreements would incorporate some type of an upfront license fee? Or is it more important to get the correct distribution and having the agreement in place than necessarily getting upfront cash?

Speaker #6: And that's another great question, because I hate to give you this answer—because I always hate when I get it—but it depends. It depends on the product.

Joseph Hazelton: That's another great question because I hate to give you this answer because I always hate when I get it, but it depends. It depends on the product. It also depends on the market. In certain cases, like, you know, with alpha-lactalbumin, when we have existing strains that we have characterized, at least to a certain extent, we do expect and drive for some upfront revenues. There are other markets that are a little more exploratory in the food and nutrition space or in the bio-industrial. Maybe we don't have a strain that already developed. In those cases, it may be dependent on, you know, how far along we are in the progress of the product. Typically, we try to push for larger upfront access fees when the products are further along in their development phase.

Joe Hazelton: That's another great question because I hate to give you this answer because I always hate when I get it, but it depends. It depends on the product. It also depends on the market. In certain cases, like, you know, with alpha-lactalbumin, when we have existing strains that we have characterized, at least to a certain extent, we do expect and drive for some upfront revenues. There are other markets that are a little more exploratory in the food and nutrition space or in the bio-industrial. Maybe we don't have a strain that already developed. In those cases, it may be dependent on, you know, how far along we are in the progress of the product. Typically, we try to push for larger upfront access fees when the products are further along in their development phase.

Speaker #6: So it also depends on the market. In certain cases, like with alpha-lactamin, when we have existing strains that we have characterized at least to a certain extent, we do expect and drive for some upfront revenues.

Speaker #6: There are other markets that are a little more exploratory in the food and nutrition space, or in the bioindustrial. Maybe we don't have a strain that's already developed in those cases.

Speaker #6: It may be dependent on how far along we are in the progress of the product, but typically, we try to push for larger upfront access fees when the products are further along in their development phase.

Speaker #6: Those that are a little bit earlier in their development phase are a little more difficult, because the customer has to fund additional work and development, which makes them a little reticent to provide larger upfront fees.

Joseph Hazelton: Those that are a little bit earlier in their development phase, a little more difficult because the customer has to fund additional work and additional development, which makes them a little reticent to provide larger upfront fees. We're trying to accelerate some of that through our own internal R&D development, like transferrin. We are, you know, moving that through rather rapidly in terms of doing cell proliferation assays and other clinical validation, technical validation of the product that we feel will enable us to maintain or even drive some of those higher revenues. It's every product is a little bit different. Every market is a little bit different. The further along we can take them, I mean, it's the same thing in biopharmaceuticals, right? If you can get to phase 1, the product's worth more than preclinical. Phase 2, it's worth even more.

Joe Hazelton: Those that are a little bit earlier in their development phase, a little more difficult because the customer has to fund additional work and additional development, which makes them a little reticent to provide larger upfront fees. We're trying to accelerate some of that through our own internal R&D development, like transferrin. We are, you know, moving that through rather rapidly in terms of doing cell proliferation assays and other clinical validation, technical validation of the product that we feel will enable us to maintain or even drive some of those higher revenues. It's every product is a little bit different. Every market is a little bit different.

Speaker #6: We're trying to accelerate some of that through our own internal R&D development, like transferring. We are moving that through rather rapidly in terms of doing cell proliferation assays and other clinical validation and technical validation of the product that we feel will enable us higher revenues.

Speaker #6: But every product is a little bit different. Every market is a little bit different. The further along we can take them—I mean, it's the same thing in biopharmaceuticals, right?

Joe Hazelton: The further along we can take them, I mean, it's the same thing in biopharmaceuticals, right? If you can get to phase 1, the product's worth more than preclinical. Phase 2, it's worth even more. It's similar in this. It's just you can achieve those milestones a little quicker. We can get them to clinical or to technical validation a lot faster in the research and diagnostic space than we can in, let's just say, the GMP space.

Speaker #6: And if you can get the Phase One, the product's worth more than preclinical. Phase Two, it's worth even more. It's similar in this—it's just you can achieve those milestones a little quicker.

Joseph Hazelton: It's similar in this. It's just you can achieve those milestones a little quicker. We can get them to clinical or to technical validation a lot faster in the research and diagnostic space than we can in, let's just say, the GMP space.

Speaker #6: We can get them to clinical or to technical validation a lot faster in the research and diagnostic space than we can in, let's just say, the GMP space.

Speaker #5: Got it. All right. Thank you.

Matt Hewitt: Got it. All right. Thank you.

Speaker #6: Thank ank you.

Joseph Hazelton: Thank you.

Joe Hazelton: Thank you.

Speaker #4: Thank you. Our next question comes from the line of John VanderMoesten with Zax. Please proceed.

Operator: Thank you. Our next question comes from the line of John Vandermosten with Zacks. Please proceed.

Speaker #7: Great, thank you. So, you guys have announced several new expansions of existing agreements and new arrangements. Since the last quarter’s report, how are you making changes internally, I guess, to manage that with the internal sales and marketing function?

John Vandermosten: Great. Thank you. You guys have announced several new expansions of existing agreements and new arrangements since the last quarter's report. How are you making changes internally, I guess, to manage that, you know, with internal sales and marketing function?

Speaker #6: John, first of all, another great question, and thanks for being on tonight. The key thing for us is that the expansion of partnerships actually increases our own capabilities in some cases, like FarmBox.

Joseph Hazelton: John, first of all, another great question, and thanks for being on tonight. The key thing for us is that the expansion of partnerships actually increases our own capabilities in some cases, like Fermbox. Fermbox has a dedicated business development team. They obviously have dedicated manufacturing. IBT, same thing. They have a designated sales team that supports their products across their distribution channels in the markets. We do every time we do a deal try to evaluate what other capabilities do these partners bring into the mix. Like I said, Fermbox expands our own capabilities. Then obviously something like IBT gives us additional, you know, kind of boots on the ground, which is important for us as well because obviously we don't have that. You have deals like with Proliant.

Joe Hazelton: John, first of all, another great question, and thanks for being on tonight. The key thing for us is that the expansion of partnerships actually increases our own capabilities in some cases, like Fermbox. Fermbox has a dedicated business development team. They obviously have dedicated manufacturing. IBT, same thing. They have a designated sales team that supports their products across their distribution channels in the markets. We do every time we do a deal try to evaluate what other capabilities do these partners bring into the mix. Like I said, Fermbox expands our own capabilities. Then obviously something like IBT gives us additional, you know, kind of boots on the ground, which is important for us as well because obviously we don't have that. You have deals like with Proliant.

Speaker #6: FarmBox has a dedicated business development team. They obviously have dedicated manufacturing. IBT—same thing. They have a designated sales team that supports their products across their distribution channels in the markets.

Speaker #6: So we do, every time we do a deal, we do try to evaluate what other capabilities these partners bring into the mix, and, like I said, FarmBox expands our own capabilities.

Speaker #6: And then, obviously, something like IBT gives us additional kind of boots on the ground, which is important for us as well because, obviously, we don't have that.

Speaker #6: And then you have deals like with ProLiant, and I don't know if you've seen some of what they've been putting out, but they've done a very good job of putting a good data package around their recombinant albumin product, which is Albumin-Free DX.

Joseph Hazelton: Proliant, and I don't know if you've seen some of what they've been putting out, but they've done a very good job of putting a good data package around their recombinant albumin product, which is AlbuFree DX. As you can see, they have not only just a large media presence, but they also have a large infrastructure presence in terms of a global distribution and customer network that has now been engaged. All of our partners, we try to evaluate based on what else they can bring to the table, and how quickly they can help us commercialize and accelerate these products.

Joe Hazelton: Proliant, and I don't know if you've seen some of what they've been putting out, but they've done a very good job of putting a good data package around their recombinant albumin product, which is AlbuFree DX. As you can see, they have not only just a large media presence, but they also have a large infrastructure presence in terms of a global distribution and customer network that has now been engaged. All of our partners, we try to evaluate based on what else they can bring to the table, and how quickly they can help us commercialize and accelerate these products.

Speaker #6: And as you can see, they have not only just a large media presence, but they also have a large infrastructure presence in terms of a global distribution and customer network that is now a bit engaged.

Speaker #6: So all of our partners, we try to evaluate based on what else they can bring to the table, and how quickly they can help us commercialize and accelerate these products.

Speaker #7: My next question is on pricing. How much control does DYADIC have over pricing with all of the various arrangements that you've signed? And I guess I'm thinking of that in two ways.

John Vandermosten: My next question is on pricing. How much control does Dyadic have over pricing with all of the various arrangements that you've signed? I guess I'm thinking of that in two ways. One is that, you know, maybe these are just market prices and it's, you know, take it or leave it. Secondly, you know, perhaps how involved can you be in being competitive since, you know, you have lower cost structure than some of the other products out there?

Speaker #7: One, one is that maybe these are just market prices, and it's take it or leave it. And then, secondly, perhaps how involved can you be in being competitive since you have a lower cost structure than some of the other products out there?

Speaker #6: Another great question. In our partner programs, obviously, we have some visibility into that process, but it is partner-led. But in things like the distribution agreements, we obviously have built our margins in ahead of time.

Joseph Hazelton: Another great question. In our partner programs, obviously, you know, we have some visibility, you know, into that process, but it is partner-led. In things like the distribution agreements, we obviously have built our margins in ahead of time. You know, regardless of what, you know, the product ends up being in the market for, we've already, you know, obviously made our money on that or made our revenue. Again, depending on the segment you're looking at or the partner you're looking at times we have more control, like through a distribution agreement or through, like, the growth factors that we were selling into. It also depends on the market.

Joe Hazelton: Another great question. In our partner programs, obviously, you know, we have some visibility, you know, into that process, but it is partner-led. In things like the distribution agreements, we obviously have built our margins in ahead of time. You know, regardless of what, you know, the product ends up being in the market for, we've already, you know, obviously made our money on that or made our revenue. Again, depending on the segment you're looking at or the partner you're looking at times we have more control, like through a distribution agreement or through, like, the growth factors that we were selling into. It also depends on the market.

Speaker #6: So regardless of what the product ends up being in the market for, we've already obviously made our money on that or made our revenues.

Speaker #6: So again, depending on the segment we're looking at or the partner you're looking at, at times we have more control—like through a distribution agreement or through the growth factors that we were selling into.

Speaker #6: But it also depends on the market. So when negotiating with cultured meat companies, they're obviously much more price-sensitive than someone looking at using our transferring for cell culture media applications in cell and gene therapy.

Joseph Hazelton: When, you know, negotiating with cultured meat companies, they're obviously much more price sensitive than someone looking at using our transferrin for, you know, cell culture media applications and cell and gene therapy. We have flexibility in terms of the markets that we're going into. We have greater flexibility with products that we control. Obviously in certain cases, like with albumin, it's not as price sensitive of a market right now. It will be increasingly so as every market, you know, ends up being. You know, for the most part, they do tend to be market driven, but the ones that we are able to control further are the ones that we have the greatest opportunity to improve our margins on. I don't know, Mark, if you need-

Joe Hazelton: When, you know, negotiating with cultured meat companies, they're obviously much more price sensitive than someone looking at using our transferrin for, you know, cell culture media applications and cell and gene therapy. We have flexibility in terms of the markets that we're going into. We have greater flexibility with products that we control. Obviously in certain cases, like with albumin, it's not as price sensitive of a market right now. It will be increasingly so as every market, you know, ends up being. You know, for the most part, they do tend to be market driven, but the ones that we are able to control further are the ones that we have the greatest opportunity to improve our margins on.

Speaker #6: So, we have flexibility in terms of the markets that we're going into. We have greater flexibility with products that we control. But obviously, in certain cases—like with albumin—it's not as price-sensitive of a market right now.

Speaker #6: It will be increasingly so, as every market ends up being. But for the most part, they do tend to be market-driven. But the ones that we are able to control further are the ones that we have the greatest opportunity to improve our margins on.

Speaker #6: Own market unit.

Joe Hazelton: I don't know, Mark, if you need-

Speaker #7: Yeah. Well, John, I think also that there's a big drive in all these industries and these applications for animal-free proteins. And as you can see from Proliant and the data, as Joe talked about, they're comparing the natural albumin to the albumin-free product that they're putting out.

Mark Emalfarb: Yeah. Well, John, I think also that there's a big drive in all these industries and these applications for animal-free proteins. As you can see from Proliant and the data, as Joe talked about, that they're comparing the natural albumin to the AlbuFree product that they're putting out, and the data is quite compelling. You know, the regulatory agencies and these industries like pharmaceuticals, even food and nutrition, there's a drive towards removing animal components both in the media and as the final product. We're seeing a big push in that direction. In some of the strains, as Joe talked about, we have very high productivity and a lot of margin to play with. We're not going to give up margin if we don't have to.

Speaker #7: And the data is quite compelling. So, the regulatory agencies and these industries—like pharmaceuticals, even food and nutrition—there's a drive towards removing animal components, both in the media and as the final product.

Speaker #7: So what we're seeing is a big push in that direction. And in some of the strains, as Joe talked about, we have very hyper-productivity and a lot of margin to play with.

Speaker #7: But we're not going to give up margin if we don't have to. And in the stonewash industry way back, we made something for a dollar and sold it for eight.

Mark Emalfarb: You know, in the stonewash industry way back, you know, we made something for $1, sold it for $8. You know, obviously it became more competitive. As it did, we had the margins to reduce the price but still be competitive for the long term. I think those are the things that you need to think about. The general market in general, animal-free proteins is exploding on a worldwide basis.

Speaker #7: Obviously, it became more competitive. And as it did, we had the margins to reduce the price, but still be competitive for the long term.

Speaker #7: So, I think those are the things that you need to think about. And the general market, in general, of animal-free proteins is exploding on a worldwide basis.

Speaker #5: Okay. Thank you, John. Thank you, Mark.

John Vandermosten: Okay. Thank you, Joe. Thank you, Mark.

Speaker #4: Thank you. Our next question comes from the line of Louis Titterton, a private investor. Please proceed.

Operator: Thank you. Our next question comes from the line of Louis Pitterton, a private investor. Please proceed.

Speaker #8: Hi, guys. How are you?

Louis Pitterton: Hi, guys. How are you?

Lewis Titterton: Hi, guys. How are you?

Speaker #6: Good. How are you?

Joseph Hazelton: Good. How are you?

Joe Hazelton: Good. How are you?

Speaker #8: Good, good. This is probably an impossible question to answer. But in your planning, in your financial planning, when do you think you might hit break-even?

Louis Pitterton: Good, good. This is probably an impossible question to answer. In your planning, your financial planning, when do you think you might hit breakeven?

Lewis Titterton: Good, good. This is probably an impossible question to answer. In your planning, your financial planning, when do you think you might hit breakeven?

Speaker #6: That is always the million-dollar question, and you're right. It's not something I can answer. The short answer is, obviously, we want to do it as quickly as possible.

Joseph Hazelton: That is always the million-dollar question. You're right, it's not something I can answer. The short answer is obviously we want to do it as quickly as possible, but we also have to be realistic and feasible in our approach. We don't want to make bad decisions that seem like maybe it can help us in the short term, but ultimately, you know, may not be in the best interest of the organization. I'll give you an example of something like transferrin. Transferrin, we know is an extremely valuable product, right? While it, you know, if we did something rather drastic sooner, you know, we could bring in, you know, probably a nice chunk of money. It is not what's best for the company in the long term.

Joe Hazelton: That is always the million-dollar question. You're right, it's not something I can answer. The short answer is obviously we want to do it as quickly as possible, but we also have to be realistic and feasible in our approach. We don't want to make bad decisions that seem like maybe it can help us in the short term, but ultimately, you know, may not be in the best interest of the organization. I'll give you an example of something like transferrin. Transferrin, we know is an extremely valuable product, right? While it, you know, if we did something rather drastic sooner, you know, we could bring in, you know, probably a nice chunk of money. It is not what's best for the company in the long term.

Speaker #6: But we also have to be realistic and feasible in our approach. We don't want to make bad decisions that seem like maybe they can help us in the short term, but ultimately may not be in the best interest of the organization.

Speaker #6: And I'll give an example of something like transferring. Transferring, we know, is an extremely valuable product, right? And while, if we did something rather drastic sooner, we could bring in probably a nice chunk of money, it is not what's best for the company in the long term.

Speaker #6: The longer we can control these products, the better off we're going to be. But the goal, obviously, is to be as revenue-positive as quickly as possible.

Joseph Hazelton: The longer we can control these products, the better off we're going to be. The goal, obviously, is to be, you know, as revenue positive as quickly as possible. I think our products that we have give us the ability to do that. We just need more of them. We need to get them commercialized and into the system. You know, as you look out into the future, I can't give you a definitive answer.

Joe Hazelton: The longer we can control these products, the better off we're going to be. The goal, obviously, is to be, you know, as revenue positive as quickly as possible. I think our products that we have give us the ability to do that. We just need more of them. We need to get them commercialized and into the system. You know, as you look out into the future, I can't give you a definitive answer.

Speaker #6: And I think our products that we have give us the ability to do that. We just need more of them. We need to get them commercialized and into the system.

Speaker #6: But as you look out into the future, I don't think it's going to be an extremely long time, but I can't give you a definitive answer.

Speaker #8: No problem. Thank you very much. I appreciate it.

Louis Pitterton: No problem. Thank you very much. I appreciate it.

Lewis Titterton: No problem. Thank you very much. I appreciate it.

Speaker #6: Absolutely.

Joseph Hazelton: Thank you.

Joe Hazelton: Thank you.

Operator: Thank you. Our next question comes from the line of Tony Bowers with Intro-act. Please proceed.

Speaker #4: Thank you. Our next question comes from the line of Tony Bowers with IntroAct. Please proceed.

Tony Bowers: Hi, Joe. It's probably difficult to know at this point what a sustained higher energy environment might mean. I can see it could make cultured food much more attractive versus farm-raised. Do you feel any buzz about that when you were at recent conferences? The second question for Mark, on the biopharmaceutical program, it's great that you've got so many people engaged now. If they get comfortable with the benchmarks, is the result that they just put this on the shelf and wait for a pandemic to hit? Or do you see opportunities to actually start making at least some seasonal vaccines?

Speaker #5: Hi, Joe. It's probably difficult to know at this point what a sustained higher energy environment might mean. I can see it could make cultured food much more attractive versus farm-raised.

Speaker #5: But did you feel any buzz about that when you were at recent conferences? And then the second question for Mark—on the biopharmaceutical programs, it's great that you've got so many people engaged now.

Speaker #5: If they get comfortable with the benchmarks, is the result that they just put this on the shelf and wait for a pandemic to hit?

Speaker #5: Or do you see opportunities to actually start making at least some seasonal vaccines?

Mark Emalfarb: I'm gonna let Joe go first, and then I'll address your question.

Speaker #6: I'm going to let Joe go first, and then I'll address your question.

Joseph Hazelton: Sure, sure. It's actually interesting you say that. There's actually a lot of different factors that are pushing this drive in the food space, and not just energy, but obviously there's a larger push on the regulatory and the consistency aspect. I think that's probably the larger push, Tony, in that space, is there's been greater variability in, let's just say, naturally produced products than there has been previously. I don't know whether that's due to just, you know, differences in the process or if it's that they're trying to make too much too quickly.

Joe Hazelton: Sure, sure. It's actually interesting you say that. There's actually a lot of different factors that are pushing this drive in the food space, and not just energy, but obviously there's a larger push on the regulatory and the consistency aspect. I think that's probably the larger push, Tony, in that space, is there's been greater variability in, let's just say, naturally produced products than there has been previously. I don't know whether that's due to just, you know, differences in the process or if it's that they're trying to make too much too quickly.

Speaker #8: Sure. Sure.

Speaker #6: So it's actually interesting you say that, but there are actually a lot of different factors that are pushing this drive in the food space, not just energy.

Speaker #6: But obviously, there's a larger push on the regulatory and the consistency aspect. I think that's probably the larger push, Tony, in that space—there's been greater variability in, let's just say, naturally produced products than there has been previously.

Speaker #6: And I don't know whether that's due to just differences in the process, or if it's that they're trying to make too much too quickly.

Speaker #6: But the biggest topic that was at this conference was really the regulatory scrutiny around plant- and animal-derived products, because the FDA, as well as other regulatory organizations, are looking into how you're extracting these resources from both animals and plants, and the materials that go into it.

Joseph Hazelton: The biggest, I guess, topic that was at this conference was really the regulatory scrutiny around plant and animal-derived products 'cause the FDA as well as other regulatory organizations are looking into how you're extracting these resources from both animals and plants and the materials that go into it. There's obviously an energy component to that, but there's also a regulatory component in terms of safety. I think that's probably the bigger one that I see moving the food and nutrition category, as well as the ability to have specialized nutrition. You know, so like you're seeing in the biopharmaceutical space, they talk about individualized medicine.

Joe Hazelton: The biggest, I guess, topic that was at this conference was really the regulatory scrutiny around plant and animal-derived products 'cause the FDA as well as other regulatory organizations are looking into how you're extracting these resources from both animals and plants and the materials that go into it. There's obviously an energy component to that, but there's also a regulatory component in terms of safety. I think that's probably the bigger one that I see moving the food and nutrition category, as well as the ability to have specialized nutrition. You know, so like you're seeing in the biopharmaceutical space, they talk about individualized medicine.

Speaker #6: So, there's obviously an energy component to that, but there's also a regulatory component in terms of safety. And I think that's probably the bigger one that I see moving the food nutrition category, as well as the ability to have specialized nutrition.

Speaker #6: So, like you're seeing in the biopharmaceutical space, they talk about individualized medicine. That's now starting to be talked about in these alternative protein conferences as, 'Can we make things, obviously, specifically geared towards elderly patients with diabetes or children with certain genetic ailments?'

Joseph Hazelton: That's now starting to be talked about in these, you know, alternative protein, you know, conferences as, you know, can we make things obviously specifically geared towards, you know, elderly patients with diabetes or, you know, children with certain, you know, genetic ailments. It's very interesting. I think we're still, you know, miles away from seeing those on the market. We definitely do see a shift towards these more efficiently scalable non-animal proteins for these uses.

Joe Hazelton: That's now starting to be talked about in these, you know, alternative protein, you know, conferences as, you know, can we make things obviously specifically geared towards, you know, elderly patients with diabetes or, you know, children with certain, you know, genetic ailments. It's very interesting. I think we're still, you know, miles away from seeing those on the market. We definitely do see a shift towards these more efficiently scalable non-animal proteins for these uses.

Speaker #6: It's very interesting. I think we're still miles away from seeing those on the market. But we definitely do see a shift towards these more efficiently scalable non-animal proteins for these uses.

Speaker #5: Yeah, good. Yeah. Yeah, go ahead, Mark. Yeah.

Tony Bowers: Yeah, good. Yeah, that's right. Yeah, go ahead, Mark.

Speaker #6: Well, I think you could think about it. Alpha-lactalbumin and lactoferrin are made in such small amounts from milk. So even if you wanted to make it, it's not affordable.

Mark Emalfarb: Well, I think if you think about it, alpha-lactalbumin and lactoferrin are made in such small amounts from milk. Even if you wanted to make it's not affordable, it's not accessible. Somehow it's gotta be made in an alternative manner if you wanna have infant formula with these nutritional benefits or in adult health drinks that we all take, right? Those are great opportunities, whether the margins, if we can produce these at the right levels at the right cost, you know, the gates are just wide open for applications. Now, it's gonna take time from a regulatory perspective for some of those things, like an infant formula, you know, to get put on the market. As Joe pointed out, just like with Proliant, so many partners we have, they've been in these industries for decades.

Speaker #6: It's not accessible, and so somehow it's got to be made in an alternative manner. If you want to have infant formula with these nutritional benefits, or in adult health drinks, as we all age, right?

Speaker #6: So those are great opportunities where the margins, if we can produce these at the right levels at the right cost, the gates are just wide open for applications.

Speaker #6: Now, it's going to take time from a regulatory perspective for some of those things, like an infant formula, to get put on the market.

Speaker #6: But as Joe pointed out, just like with ProLiant, some of these partners we have—they've been in these industries for decades. They have the application knowledge, experience, and market access.

Mark Emalfarb: They have the application knowledge, the experience, the market access. If we hit these things at the right yield and the right cost with Dapibus, you know, we're right in the game. That hopefully addresses some of those issues. On the biopharmaceutical side, it's not about just pandemic preparedness. People are now waking up and recognizing that, for example, the work we did with uVax on the RSV and the pre-fusion, they have a better structure of the complexity of the antigen design. Same thing with Scripps with the other RSV, the HMPV and the PIV3, the potential trivalent. You know, these things are huge needs out there in the world. If we can just get the funding to move those forward, not just with Scripps and these institutes.

Speaker #6: So if we hit these things at the right yield and the right cost with DAPAVIS, we're right in the game. So that hopefully addresses some of those issues on the biopharmaceutical side.

Speaker #6: It's not about just pandemic preparedness. People are now waking up and recognizing that, for example, the work we did with UVACs on the RSV and the prefusion—they have a better structure of the complexity of the antigen design.

Speaker #6: Same thing with Scripps, with their RSV, the HMPV, and the PIV3—the potential trivalent. These things are huge needs out there in the world.

Speaker #6: And if we can just get the funding to move those forward, not just with Scripps and these institutes, it's just there are people out there that we're talking to that potentially can fund some of these things.

Mark Emalfarb: You know, there are people out there that we're talking to that potentially can fund some of these things. These are multi-billion-dollar opportunities. It's not just about pandemics. The pandemic gave us the opportunity to get into humans to show safety, efficacy, and tolerability, you know, in the vaccine space or in the non-animal primate space. All these things, whether it's Gates, CEPI, they're opening the gates and the doorways to future products. It could be your shingles, it could be HPV. There's all kinds of opportunities out there to drive these things forward, and those are all being funded independently. The same technologies and those benefits not only apply to pharma, but we're able to use some of that for Dapibus to make even a better production strain for higher productivity and vice versa on both sides of the equation.

Speaker #6: These are multibillion-dollar opportunities. So it's not just about pandemics. The pandemics gave us the opportunity to get into humans, to show safety, efficacy, and tolerability.

Speaker #6: The vaccine space, or in the non-animal primate space. So all these things, whether it's Gates or CEPI, they're opening the gates and the doorways to future products.

Speaker #6: It could be a shingles, it could be HPV. There are all kinds of opportunities out there to drive these things forward, and those are all being funded independently.

Speaker #6: And the same technologies and those benefits not only apply to pharma, but we're able to use some of that for DAPAVIS to make even a better production strain for higher productivity, and vice versa on both sides of the equation.

Speaker #5: That's great. A question for Ping on the recognition of grants—Is it straight-line recognition, or does it become a little bit more profitable at the end?

Tony Bowers: That's great. Question for Ping on the recognition of grant. Is it straight-line recognition or does it become a little bit more profitable at the end?

Speaker #3: It's not a straight line, Tony. It's basically based on the gap that we are recognizing the revenue as a percentage of the cost incurred for the entire project.

Ping Rawson: It's not a straight line, Tony. It's basically based on the gap that we are recognizing the revenue as a percentage of the costs incurred for the entire project.

Speaker #3: So basically, it's really a percentage of completion if you're into how it's calculated.

Tony Bowers: Yeah.

Ping Rawson: Basically, it's really a percentage of completion is your input to how it's calculated.

Tony Bowers: Yeah.

Ping Rawson: Basically, it's really a percentage of completion is your input to how it's calculated.

Speaker #5: Got it. Thank you.

Tony Bowers: Got it. Thank you.

Speaker #4: Thank you. Our next question comes from the line of John Andermossen with Zacks. Please proceed.

Operator: Thank you. Our next question comes from the line of John Vandermosten with Zacks. Please proceed.

Speaker #7: Thank you for taking another one. So, Joe, bigger picture, what's the utilization rate right now for biomanufacturing in the United States? And I know it was tight a few years back.

John Vandermosten: Thank you for taking another one. Joe, bigger picture, what's the utilization rate right now for biomanufacturing in the United States? You know, I know it was tight a few years back, and then with tariffs and onshoring, and probably some new builds as well. Has it changed materially?

Speaker #7: And then, when you factor in tariffs and onshoring, and probably some new builds as well, has it changed materially?

Joseph Hazelton: You mean as far as capacity, i.e., in the US versus ex-US?

Joe Hazelton: You mean as far as capacity, i.e., in the US versus ex-US?

Speaker #6: As far as capacity, in the US versus ex-US?

Speaker #7: Correct. Yeah.

John Vandermosten: Correct. Yeah.

Speaker #6: I think you're right. I haven't seen a drastic shift, but it is shifting—not just the onshoring, but obviously the safety components. And obviously, tariffs and the political environment are driving some of that.

Joseph Hazelton: I think you're right. I haven't seen a drastic shift, but it is shifting. Not just the onshoring, but obviously, you know, the safety components and obviously tariffs and the political environment is driving some of that. Obviously not having to ship very expensive products worldwide is also attractive. You know, if you can make them here at home, you know. I mean, Proliant obviously is a great example, right? If they can manufacture here in the US, where they do their upstream, rather than somewhere else, you obviously lower your risk in terms of, you know, bringing that product, you know, into the country. I definitely have seen an uptick. There's definitely a lot of new things going in.

Joe Hazelton: I think you're right. I haven't seen a drastic shift, but it is shifting. Not just the onshoring, but obviously, you know, the safety components and obviously tariffs and the political environment is driving some of that. Obviously not having to ship very expensive products worldwide is also attractive. You know, if you can make them here at home, you know. I mean, Proliant obviously is a great example, right? If they can manufacture here in the US, where they do their upstream, rather than somewhere else, you obviously lower your risk in terms of, you know, bringing that product, you know, into the country. I definitely have seen an uptick. There's definitely a lot of new things going in.

Speaker #6: But obviously, not having to ship very expensive products worldwide is also attractive. And if you can make them here at home—I mean, ProLiant obviously is a great example, right?

Speaker #6: If they can manufacture here in the US, where they do their upstream, rather than somewhere else, you obviously lower your risk in terms of bringing that product into the country.

Speaker #6: So, I definitely have seen an uptick. There's definitely a lot of new things going in. We actually talked with a CDMO that isn't even complete yet, that has a three-year wait.

Joseph Hazelton: We actually talked with a CDMO that isn't even complete yet that has a three-year wait in terms of manufacturing capacity. I think the need is there. The question for me is gonna be, can we ever hit the true cost metrics to produce, you know, some of these GMP products here in the US at the price points that these other, you know, countries that we'll need? Like if you're producing it in the US, could you actually meet some of the cost metrics in Europe that you're going to need to hit? That I don't know. I don't know if it's gonna change whether or not. You know, the whole reason that there's not a lot here today is just the cost.

Joe Hazelton: We actually talked with a CDMO that isn't even complete yet that has a three-year wait in terms of manufacturing capacity. I think the need is there. The question for me is gonna be, can we ever hit the true cost metrics to produce, you know, some of these GMP products here in the US at the price points that these other, you know, countries that we'll need? Like if you're producing it in the US, could you actually meet some of the cost metrics in Europe that you're going to need to hit? That I don't know. I don't know if it's gonna change whether or not. You know, the whole reason that there's not a lot here today is just the cost.

Speaker #6: In terms of manufacturing capacity, I think the need is there. The question for me is going to be: can we ever hit the true cost metrics to produce some of these GMP products here in the US at the price points that these other countries will need?

Speaker #6: Like, if you're producing it in the US, could you actually meet some of the cost metrics in Europe that you're going to need to hit?

Speaker #6: And that, I don't know. I don't know if it's going to change, whether or not the whole reason that there's not a lot here today is just the cost.

Speaker #6: And I don't know if that's going to really change just because we have more capacity. Hopefully, it'll drive the cost down, but we don't know.

Joseph Hazelton: You know, I don't know if that's going to really change just because we have more capacity. Hopefully it'll drive, you know, the cost down, but I just don't know. I don't know, Mark, do you have any thoughts on that?

Joe Hazelton: You know, I don't know if that's going to really change just because we have more capacity. Hopefully it'll drive, you know, the cost down, but I just don't know. I don't know, Mark, do you have any thoughts on that?

Speaker #6: I don't know if you have any thoughts on that.

Mark Emalfarb: Well, I think the efficiencies of a cell line that can pump out more product and yields can help drive the, let's say, difference between the cost 'cause it's not labor intensive. With AI and all these process optimizations, it could get to the point where really in the US you could produce things at very near the same cost you can overseas, 'cause you're taking labor out. To be honest with you, I think that we're heading in the right direction, not only from a government regulatory pursuing onshoring, you know, as a supply chain. You know, one of the things that we deal with all the time, for example, with BARDA, you know, recently, and then there's a couple of conferences coming up, is the supply chain disruption. Then you can see again with oil, right?

Speaker #8: Well, I think the efficiencies of the cell line that can pump out more product and yields can help drive the, let's say, difference between the cost.

Speaker #8: Because it's not labor-intensive. And with AI and all these process optimizations, it could get to the point where, really, in the US, you could produce things at very near the same cost you can overseas.

Speaker #8: Because you're taking labor out. So, to be honest with you, I think that we're heading in the right direction—not only from a government regulatory perspective, pursuing onshoring and the supply chain.

Speaker #8: One of the things that we deal with all the time, for example with BARDA recently—and there's a couple of conferences coming up—is the supply chain disruption.

Speaker #8: It was just, it's not—you can see it again with oil, constantly occurring, and it's rearing its head. It's in the fertilizer. It's in the oil.

Mark Emalfarb: You know, now it's constantly occurring and it's rearing its head. It's in the fertilizer, it's in the oil, it was in the pandemic. People are realizing now that we have to have onshore capacity. Again, we're global, so to be honest with you, we can pop our strain in India, it could be in China, it could be in Europe, it can be in South Africa, it can be in Bangladesh, it can be in America. With AI and automation, that difference is gonna just close the gap. We won't have as far, let's say, the gap that we've had in the last 20, 30 years with India and China. We're gonna close that gap through innovation. That's why people are looking at faster-growing cell lines that can produce more for less with cheaper media.

Speaker #8: It was in the pandemic. So people are realizing now that we have to have onshore capacity, but again, we're global. So, to be honest with you, we can pop our strain in India.

Speaker #8: It could be in China. It could be in Europe. It could be in South Africa. It could be in Bangladesh. It could be in America.

Speaker #8: But with AI and automation, that difference is going to just close the gap. So we won't have as far, let's say, the gap that we've had in the last 20 or 30 years.

Speaker #8: With India and China, we're going to close that gap through innovation. And that's why people are looking at faster-growing cell lines that can produce more for less, with cheaper media.

Speaker #7: Okay. Thank you.

Ping Rawson: Okay. Thank you.

John Vandermosten: Okay. Thank you.

Speaker #4: Thank you. There are no further questions at this time. I'd like to pass the call over to DYADIC's President and CEO, Joe Hazelton.

Operator: Thank you. There are no further questions at this time. I'd like to pass the call over to Dyadic's President and CEO, Joe Hazelton.

Speaker #9: Thank you. As we close, I want to take a step back and put our progress into context. Over the past year, we've made a definitive transition from a development-focused organization to one that is now executing on commercialization.

Joseph Hazelton: Thank you. As we close, I wanna take a step back and put our progress into context. Over the past year, we've made a definitive transition from a development-focused organization to one that is now executing on commercialization. We've restructured the business, secured manufacturing, expanded our partner network, and most importantly, began launching products and generating early revenue across multiple channels. While our reported financials today still reflect that transition phase, the underlying business has changed meaningfully. We now have commercial products in the market, manufacturing and distribution in place, and a growing number of opportunities moving from sampling into qualification and toward repeat purchasing. Looking ahead, our focus is execution. We're focused on scaling product sales in life sciences, advancing partner-led programs in food and nutrition, expanding our bioindustrial footprint through Fermbox, and continuing to leverage our platforms to create additional revenue opportunities.

Joe Hazelton: Thank you. As we close, I wanna take a step back and put our progress into context. Over the past year, we've made a definitive transition from a development-focused organization to one that is now executing on commercialization. We've restructured the business, secured manufacturing, expanded our partner network, and most importantly, began launching products and generating early revenue across multiple channels. While our reported financials today still reflect that transition phase, the underlying business has changed meaningfully. We now have commercial products in the market, manufacturing and distribution in place, and a growing number of opportunities moving from sampling into qualification and toward repeat purchasing. Looking ahead, our focus is execution. We're focused on scaling product sales in life sciences, advancing partner-led programs in food and nutrition, expanding our bioindustrial footprint through Fermbox, and continuing to leverage our platforms to create additional revenue opportunities.

Speaker #9: We've restructured the business, secured manufacturing, expanded our partner network, and, most importantly, begun launching products and generating early revenue across multiple channels. While our reported financials today still reflect that transition phase, the underlying business has changed meaningfully.

Speaker #9: We now have commercial products in the market, manufacturing and distribution in place, and a growing number of opportunities moving from sampling into qualification and toward repeat purchasing.

Speaker #9: Looking ahead, our focus is execution. We're focused on scaling product sales and life sciences, advancing partner-led programs in food and nutrition, expanding our bioindustrial footprint through FarmBox, and continuing to leverage our platforms to create additional revenue opportunities.

Speaker #9: As these efforts progress, we expect to see increasing conversion into product sales, repeat orders, and a broader base of recurring revenue through 2026 and beyond.

Joseph Hazelton: As these efforts progress, we expect to see an increasing conversion into product sales, repeat orders, and a broader base of recurring revenue through 2026 and beyond. We believe the foundation is now in place, and our priority is to build on that foundation to deliver sustained revenue growth and long-term value creation. Thank you for your continued support, and we look forward to updating you on our progress.

Joe Hazelton: As these efforts progress, we expect to see an increasing conversion into product sales, repeat orders, and a broader base of recurring revenue through 2026 and beyond. We believe the foundation is now in place, and our priority is to build on that foundation to deliver sustained revenue growth and long-term value creation. Thank you for your continued support, and we look forward to updating you on our progress.

Speaker #9: We believe the foundation is now in place, and our priority is to build on that foundation to deliver sustained revenue growth and long-term value creation.

Speaker #9: Thank you for your continued support, and we look forward to updating you on our progress.

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

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