DYADIC INTERNATIONAL INC Q1 FY2025 earnings call

• Mark Emalfarb emphasized Dyadic's focus on commercializing high-value recombinant enzymes and proteins using proprietary platforms for life science, nutrition, and industrial applications. - Joe Hazelton discussed progress in segments like cell culture media (expecting recombinant human serum albumin launch in Q3 2025, third milestone payment in Q2), recombinant transferrin and FGFs development, advancements in DNA/RNA manipulation tools, progress in nutrition with animal-free dairy products, scale-up of industrial enzymes (EN3ZYME with Fermbox), and collaborations in biopharmaceutical/veterinary applications using C1 platform.

Total revenue for the quarter ended March 31, 2025 increased to approximately $394,000 compared to $335,000 for the same period in 2024, driven by increased grant revenue from the Gates Foundation and CEPI in 2025. Cost of research and development revenue decreased to approximately $126,000 from $144,000 in the prior year. Research and development expenses decreased to $495,000 from $523,000. G&A expenses decreased by 10.8% to $1,596,000. Loss from operations decreased to $2,002,000. Net loss was $2,028,000. Cash and investment grade securities were $7.4 million as of March 31, 2025, down from $9.4 million at the end of 2024.

• Expect launch of recombinant human serum albumin in Q3 2025 and a third milestone payment related to productivity improvements in Q2. - Anticipate sampling of recombinant FGFs in Q2 2025, continued development of nucleic acid tools. - Ongoing scale-up of recombinant dairy enzyme with commercial launch expected by year-end. - Fermbox has a large follow-on purchase order with production underway.

Commentary made in the call may be forward-looking statements involving risks and uncertainties that could cause actual results to differ from forward-looking statements. Participants are directed to risk factors in Dyadic's SEC filings.

Q: How does the royalty arrangement work with Fermbox and recognition of benefit from their contract?

A: Joe Hazelton stated revenue sharing is immediate, with profit split between Dyadic and Fermbox as sales roll in.

Q: Progress on albumin arrangement and advanced orders?

A: Joe Hazelton said no advanced orders currently, sampling expected in Q2, orders to be taken in Q3.

Q: Collaborators dropping from 9 to 4, reason?

A: Mark Emalfarb and Joe Hazelton mentioned it's due to the pivot to licensing deals and product partnerships, focusing on bringing products to market quickly.

Q: Tariffs impact?

A: Mark Emalfarb and Joe Hazelton said no significant problem seen, potential opportunity with onshoring, and albumin/dairy enzyme produced in US