Dyadic International Inc. (DYAI) - Q2 2026 10-Q Summary
Business Context and Reporting Period
This Quarterly Report on Form 10-Q covers the period ended June 30, 2026. Dyadic International, Inc. (d/b/a Dyadic Applied BioSolutions) is a biotechnology platform company focused on non-animal protein production for life sciences, food, and industrial markets. The company operates as a single segment and is headquartered in Jupiter, Florida, with operations in the Netherlands. Effective August 1, 2025, the company rebranded to emphasize its commercial focus on the Dapibus™ and C1 platforms.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|
| Total Revenue | $961,138 | $2,072,094 | $1,360,202 |
| Net Loss | $(2,123,884) | $(4,078,567) | $(3,821,353) |
| Loss Per Share (Basic/Diluted) | $(0.06) | $(0.11) | $(0.13) |
| Cash & Cash Equivalents | $1,425,364 | $1,425,364 | $2,140,899 |
| Restricted Cash | $1,555,649 | $1,555,649 | $1,833,531 |
| Total Current Assets | $6,406,764 | $6,406,764 | $9,896,653 |
| Total Liabilities | $8,923,775 | $8,923,775 | $8,713,315 |
| Stockholders' Deficit | $(2,387,244) | $(2,387,244) | $(529,701) |
| Convertible Notes (Principal) | $5,090,000 | $5,090,000 | $5,090,000 |
Note: Revenue is primarily derived from grants (Gates Foundation, CEPI) and research collaborations. The company has not yet recognized revenue from direct product sales.
Material Changes vs. Prior Period
- Revenue Growth: YTD revenue increased 52.3% to $2.07 million, driven by a $611,000 increase in grant revenue (CEPI and Gates Foundation) and higher research collaboration revenue. Q2 revenue was flat compared to Q2 2025.
- Cost Increases: Cost of revenue increased 94.9% YTD to $1.78 million, largely due to higher costs associated with grant-funded projects. General and Administrative (G&A) expenses rose 13.6% YTD due to rebranding, business development, and legal costs.
- Operating Loss: Net loss increased 6.7% YTD to $4.08 million. The increase in loss was driven by higher costs of revenue and G&A expenses, partially offset by revenue growth and a 28.1% reduction in internal R&D expenses.
- Liquidity: Total cash, cash equivalents, and restricted cash decreased from $5.85 million at year-end 2025 to $2.98 million at June 30, 2026. Net cash used in operating activities was $3.78 million for the six months ended June 30, 2026.
Outlook, Risks, and Management Commentary
- Going Concern Warning: Management has concluded there is substantial doubt about the company's ability to continue as a going concern for 12 months following the report date due to recurring losses and negative cash flows. Continuation depends on obtaining debt or equity financing.
- Capital Strategy: The company is pursuing additional capital through public/private equity offerings, an At-The-Market (ATM) program (up to $4.24 million authorized, no sales yet), and grant applications. It also anticipates commercial pilot sales in the second half of 2026.
- Debt Obligations: The company holds $6.0 million in 8% Senior Secured Convertible Notes (maturity extended to Dec 31, 2027). Approximately $5.09 million principal remains outstanding. Interest is payable quarterly.
- Commercial Progress: The company reported initial pilot sales of recombinant transferrin and growth factors for cultivated-meat applications and shipments to distribution partners (IBT Bioservices). Proliant Health has begun commercializing Albufree™ DX.
- Risk Factors: Risks include failure to secure additional financing, potential delisting from Nasdaq if minimum bid price requirements are not met, and reliance on third-party collaborators and grants.
Investor Verification Checklist
- Going Concern Status: Verify the company's progress in securing the necessary financing to mitigate the substantial doubt regarding its ability to continue operations.
- Revenue Recognition: Confirm the timing and magnitude of anticipated commercial pilot sales in H2 2026, as current revenue is heavily reliant on grants.
- Debt Covenants: Review compliance with covenants related to the $6.0 million Convertible Notes, particularly regarding restrictions on additional indebtedness and dividends.
- Nasdaq Compliance: Monitor the stock price to ensure compliance with the $1.00 minimum bid price rule to avoid delisting risks.
- Grant Utilization: Track the utilization of the Gates Foundation ($3.1M) and CEPI grants, as these funds are restricted and critical to current operations.