Dyadic International Inc. (DYAI) - Q1 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2026. Dyadic International, Inc. (d/b/a Dyadic Applied BioSolutions) is a biotechnology platform company focused on developing scalable, non-animal protein production platforms (Dapibus™ and C1) for life sciences, food, nutrition, and bio-industrial markets. The company rebranded in August 2025 to reflect a strategic shift from research-driven activities to commercialization.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Total Revenue | $1,110,956 | $393,572 |
| Net Loss | $(1,954,683) | $(2,027,579) |
| Loss Per Share (Basic/Diluted) | $(0.05) | $(0.07) |
| Cash, Cash Equivalents & Restricted Cash | $5,155,728 | $5,064,941 |
| Total Assets | $7,809,573 | $9,945,725 |
| Convertible Notes Payable (Net) | $5,033,425 | N/A |
| Stockholders' Equity | $(407,732) | $1,232,410 |
Note: The company reported negative stockholders' equity of $(407,732) as of March 31, 2026, compared to positive equity of $1,232,410 at year-end 2025.
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased by 182.3% ($717,384) year-over-year. This was driven by a $220,490 increase in R&D revenue (Proliant Agreement), a $276,894 increase in grant revenue (CEPI and Gates Foundation), and $200,000 in license/milestone revenue (Inzymes Agreement).
- Cost of Revenue: Increased by 166.0% to $791,840, primarily due to higher costs associated with grant-funded activities and R&D services.
- Operating Expenses: General and Administrative (G&A) expenses rose 10.0% to $1,755,331 due to increased legal, accounting, and rebranding costs, partially offset by a decrease in stock-based compensation. R&D expenses decreased slightly by 3.8%.
- Liquidity: Net cash used in operating activities was $1,963,334. Investing activities provided $1,266,196, largely from proceeds from maturing investment securities.
Guidance, Outlook, and Risks
- Commercial Milestones: The company achieved significant commercialization milestones, including the launch of AlbuFree™ DX with Proliant Health and the commercial sale of non-animal dairy enzymes with Inzymes. New distribution agreements were signed with IBT Bioservices and Fermbox Bio.
- Liquidity Outlook: Management expects existing cash, cash equivalents, restricted cash, and investment securities (totaling approx. $6.6 million) to be sufficient for at least the next 12 months. However, the company anticipates continued losses and negative operating cash flows.
- Financing Activities: On March 6, 2026, the company entered an At-The-Market (ATM) issuance agreement to sell up to $4,238,000 of common stock. No shares had been sold as of the filing date.
- Nasdaq Compliance Risk: The company is currently not in compliance with Nasdaq's Minimum Bid Price Rule (stock price below $1.00 for 30 consecutive days) and Continued Listing Standards (shareholders' equity below $2.5 million). The company is seeking shareholder approval for a reverse stock split and has requested an extension to regain compliance by December 15, 2026. Failure to comply could result in delisting.
- Debt Obligations: The company holds $6.0 million in aggregate principal of 8.0% Senior Secured Convertible Promissory Notes, maturing December 31, 2027. A significant portion of these notes is held by related parties (family trusts of the CEO).
Investor Verification Checklist
- Verify the status of the Nasdaq delisting proceedings and the likelihood of shareholder approval for a reverse stock split.
- Confirm the convertibility terms of the $6.0 million Convertible Notes (conversion price set at $1.05) and the potential dilution impact.
- Monitor the cash burn rate relative to the $6.6 million liquidity runway to assess the need for additional capital raises.
- Review the revenue recognition policies for grant-funded projects (Gates Foundation, CEPI) to ensure sustainability of reported revenue growth.
- Assess the related party transactions regarding the Convertible Notes held by the CEO's family trusts.