Business Context and Reporting Period
Company: Dyadic International, Inc. (trading as Dyadic Applied BioSolutions)
Filing Type: Form 10-K (Annual Report)
Period Ended: December 31, 2025
Business Overview: Dyadic is a global biotechnology platform company developing and commercializing precision-engineered, animal-free recombinant proteins and enzymes. The company utilizes proprietary microbial expression platforms, Dapibus (for non-pharmaceutical markets like food, nutrition, and life sciences) and C1 (for biopharmaceutical applications). Effective August 1, 2025, the company rebranded to Dyadic Applied BioSolutions to reflect a strategic shift toward commercialization.
Key Financial Metrics
| Metric | 2025 | 2024 |
|---|---|---|
| Total Revenue | $3,090,345 | $3,495,389 |
| Net Loss | $(7,364,628) | $(5,809,159) |
| Loss Per Share (Basic/Diluted) | $(0.23) | $(0.20) |
| Operating Cash Flow | $(5,702,221) | $(3,974,806) |
| Cash, Cash Equivalents & Restricted Cash | $5,853,499 | $6,506,750 |
| Total Assets | $9,945,725 | $9,930,275 |
| Convertible Notes (Principal Outstanding) | $5,090,000 | $5,090,000 |
| Accumulated Deficit | $(93,451,108) | $(86,086,480) |
Note: Revenue is derived primarily from research collaborations, government grants (Gates Foundation, CEPI), and licensing milestones. The company has no products approved for sale as of the reporting date.
Material Changes vs. Prior Period
- Revenue Decline: Total revenue decreased by approximately 11.6% to $3.09 million. This was driven by a significant drop in license and milestone revenue ($265,000 in 2025 vs. $1.89 million in 2024) and a decrease in research and development revenue. These declines were partially offset by the introduction of grant revenue ($1.86 million) from the Gates Foundation and CEPI, which was non-existent in 2024.
- Increased Net Loss: Net loss widened by $1.56 million to $7.36 million. The increase was primarily due to the reduction in licensing revenue and a slight increase in R&D expenses ($2.15 million vs. $2.04 million), partially mitigated by a decrease in General and Administrative (G&A) expenses.
- Capital Raise: In August 2025, the company completed an underwritten public offering of 6,052,000 shares at $0.95 per share, generating net proceeds of approximately $4.9 million.
- Debt Amendments: The company amended its Senior Secured Convertible Promissory Notes in December 2025, extending the maturity date to December 31, 2027, and setting the conversion price at $1.05 per share.
Guidance, Outlook, Risks, and Unusual Items
Outlook and Management Commentary
Management expects to incur losses and negative operating cash flows as it continues to develop its platforms. The company projects that its existing cash, cash equivalents, restricted cash, and investment securities (totaling approximately $8.6 million as of December 31, 2025) will be sufficient to meet liquidity requirements for at least the next 12 months. The company is actively pursuing commercialization of non-pharmaceutical proteins (e.g., recombinant albumin, DNase I, dairy enzymes) to generate recurring revenue.
Key Risks and Contingencies
- Nasdaq Listing Compliance: On December 19, 2025, the company received a deficiency notice from Nasdaq for failing to maintain the minimum bid price of $1.00 per share for 30 consecutive trading days. The company has 180 days (until June 17, 2026) to regain compliance. Failure to do so could result in delisting.
- Liquidity and Capital Needs: The company has a history of net losses and an accumulated deficit of $93.5 million. Future profitability depends on securing additional funding, licensing agreements, or commercial sales. If capital needs are not met, the company may be forced to delay programs or curtail operations.
- Customer Concentration: Revenue is highly concentrated. In 2025, two significant customers accounted for 60.1% of total revenue. Additionally, 90.9% of research services purchased were from two Contract Research Organizations (CROs).
- Regulatory and Commercialization Risk: The company has no approved products. Success depends on regulatory acceptance of its microbial platforms and the ability of partners to commercialize products.
Investor Verification Checklist
- Nasdaq Compliance Status: Verify if the company has regained compliance with the $1.00 minimum bid price requirement by June 17, 2026, to avoid delisting.
- Grant Utilization: Confirm the spend rate and revenue recognition timeline for the Gates Foundation ($3.1M total) and CEPI ($2.4M to Dyadic) grants, as these are critical to near-term cash flow.
- Commercial Milestones: Monitor the commercial launch and sales performance of partner products, specifically AlbuFree DX (Proliant), recombinant DNase I (Fermbox), and non-animal bovine chymosin (Inzymes), to validate the revenue model.
- Debt Covenants: Review the terms of the $5.09 million Convertible Notes, specifically the conversion price ($1.05) and maturity date (Dec 31, 2027), to assess dilution risk and refinancing needs.
- Customer Concentration: Assess the risk associated with the loss of the two customers representing 60% of revenue or the two CROs representing 91% of research spend.