Dyadic International Q2 2026 Earnings Report

Dyadic International EPS Results

• Actual EPS: -$0.06
• Consensus EPS: -$0.04
• Beat/Miss: Missed by -$0.03
• One Year Ago EPS: N/A

Dyadic International Revenue Results

• Actual Revenue: $0.96 million
• Expected Revenue: $1.03 million
• Beat/Miss: Missed by -$63.86 thousand
• YoY Revenue Growth: N/A

Dyadic International Announcement Details

• Quarter: Q2 2026
• Date: 8/12/2026
• Time: After Market Closes
• Conference Call Date: Wednesday, August 12, 2026
• Conference Call Time: 5:00PM ET

Dyadic International (NASDAQ:DYAI), Inc. is a biotechnology company that develops microbial-based technologies for producing proteins and other biological materials. Its platforms are designed to enable the cost-effective development and manufacture of vaccines, therapeutic proteins, enzymes, and other biologic products.

The company’s technology portfolio includes the C1 protein-production platform, which uses a proprietary fungal microorganism to produce recombinant proteins, and additional microbial expression systems intended to support applications in biopharmaceuticals, animal health, food and nutrition, and industrial biotechnology. Dyadic also develops its own product candidates and works with commercial, academic, and government partners to apply its platforms to vaccines, antibodies, enzymes, and other proteins.

Founded in 1979 and headquartered in Jupiter, Florida, Dyadic has pursued partnerships and technology applications serving markets in North America, Europe, and other international regions. The company is led by founder Mark Emalfarb, who has served as its chief executive officer and has been associated with the development and commercialization of Dyadic’s microbial protein-expression technologies.

Dyadic International Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Dyadic reported expanding commercialization, including product shipments through IBT Bioservices, initial direct sales, and partner products generating commercial sales. Management expects revenue growth to build across life sciences, food and nutrition, and bioindustrial markets, although the near-term ramp is expected to be lumpy.
• Positive Sentiment: An initial pilot-scale run for animal-free recombinant human transferrin increased productivity by approximately 80%, which management estimates could reduce manufacturing costs by about 40% and improve scalability and commercial economics.
• Positive Sentiment: Externally funded biopharmaceutical programs continue to validate the C1 platform, including monoclonal antibody work and vaccine-antigen production completed in approximately 15 days from plasmid to purified protein. These programs could support future licensing, milestone, royalty, and strategic partnership opportunities.
• Negative Sentiment: Dyadic ended Q2 with approximately $4.8 million in cash, and management disclosed substantial doubt about its ability to continue as a going concern without additional capital. The company is evaluating equity, non-dilutive, licensing, partnership, and other financing alternatives.
• Negative Sentiment: Second-quarter revenue was essentially flat year over year at approximately $961,000, while the net loss widened to approximately $2.1 million from $1.8 million. Cost of revenue and general and administrative expenses increased, despite lower internal R&D spending.

Presentation

[Operator]

As a reminder, this conference call is being recorded today, August 12, 2026. I would now like to turn the call over to Ms. Ping Rawson, Dyadic's Chief Financial Officer. Please go ahead.

[Ping Rawson, CFO at Dyadic]

Thank you. Good evening, and welcome everyone to Dyadic's second quarter 2026 conference call. I hope you have had the opportunity to review Dyadic's press releases announcing financial results for the quarter ended June 30, 2026. You may access our release at Form 10-Q under the Investors section of the company's website at dyadic.com.

[Ping Rawson, CFO at Dyadic]

On today's call, our President and Chief Operating Officer, Joe Hazelton, will review our Q2 2026 business and corporate highlights and provide commentary on the strategic direction of the business.

[Ping Rawson, CFO at Dyadic]

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 will hold a brief question and answer session.

[Ping Rawson, CFO at Dyadic]

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, CFO at Dyadic]

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 reports filed with the SEC. It is now my pleasure to pass the call to our President and COO, Joe Hazelton. Joe?

[Joe Hazelton, President and COO at Dyadic]

Thanks, Ping, and thank you everyone for joining us today. Last quarter, we talked about Dyadic moving from a platform development story toward a commercially driven business. In Q2, that transition became more tangible. We are shipping products, supporting customer evaluations, generating initial sales, and expanding distribution.

[Joe Hazelton, President and COO at Dyadic]

We are also improving manufacturing economics and using that commercial activity to create broader opportunities for partnerships and licensing. At the same time, we are expanding and accelerating both our internal product pipeline and third-party product development opportunities.

[Joe Hazelton, President and COO at Dyadic]

That distinction is important. In our markets, commercialization is rarely a single event. It typically progresses from technical validation to sampling, customer qualification, initial purchasing, and if the product performs and the economics work, to repeat and potentially larger volume orders. During Q2 and after quarter end, we saw a growing number of Dyadic products move further along that continuum.

[Joe Hazelton, President and COO at Dyadic]

A good example of improving manufacturing economics to accelerate the potential for commercial launch is our animal-free recombinant human transferrin program. During the quarter, our initial pilot scale run increased productivity by approximately 80%. Based on our current preliminary biomanufacturing assumptions, that improvement is expected to reduce costs by approximately 40%.

[Joe Hazelton, President and COO at Dyadic]

We have now sampled the product into research and cell culture applications, in addition to the recombinant bovine transferrin progress into cultivated meat that we have discussed previously. That matters for several reasons. Lower manufacturing cost improves our commercial flexibility while supporting attractive product economics and maintaining a strong quality profile.

[Joe Hazelton, President and COO at Dyadic]

Higher productivity improves the scalability and supply profile customers evaluate before qualifying a critical media component. Importantly, these improvements provide another data point in which we can demonstrate to prospective partners evaluating whether our protein production platforms can manufacture proteins in greater quantities, more efficiently and economically.

[Joe Hazelton, President and COO at Dyadic]

This is the commercial model we are building. We improve the strain and process, use those improvements to support product sales and customer qualification, and then use the resulting performance data to strengthen the case for larger strategic collaborations, licensing arrangements, or technology access opportunities.

[Joe Hazelton, President and COO at Dyadic]

The value of an 80% productivity improvement is not limited to transferrin itself. It also helps validate the broader platforms. We are seeing similar progress across our life science portfolio. During Q2, we began product shipments to IBT Bioservices under our OEM distribution agreement and completed additional shipments after quarter end for research, diagnostic, and cell culture applications.

[Joe Hazelton, President and COO at Dyadic]

We also generated initial pilot sales of recombinant transferrin and growth factors for cultivated meat applications. These sales remain early, but they potentially put Dyadic produced proteins into customer workflows where performance, consistency, supply, and economics can be evaluated under real operating conditions.

[Joe Hazelton, President and COO at Dyadic]

Our distribution strategy is intentionally capital efficient. Rather than build a large direct commercial organization for every market, we are combining selective direct sales with distributors and OEM partners that already have customer relationships, application expertise, and global reach.

[Joe Hazelton, President and COO at Dyadic]

That gives us multiple ways to reach the market while keeping our fixed commercial infrastructure relatively lean and selectively launching our own products. Proliant has begun commercialization of Albufreeâ„¢ DX recombinant human albumin for life science and diagnostic applications and has announced plans to broaden the portfolio with Albufreeâ„¢ TX for cell culture and Albufreeâ„¢ CGT for cell and gene therapy applications.

[Joe Hazelton, President and COO at Dyadic]

Successful commercialization under our arrangement could provide Dyadic with potential future royalty participation while an established partner leads market development and customer adoption.

[Joe Hazelton, President and COO at Dyadic]

We are also seeing commercial validation in food and nutrition through Enzymes. Their non-animal bovine chymosin, produced using Dyadic technology, is now generating commercial sales.

[Joe Hazelton, President and COO at Dyadic]

This represents a partner taking a product developed with our platform through development and into the market, where it is being sold commercially. A second product is also in development, creating the potential for an additional milestone and future royalty economics.

[Joe Hazelton, President and COO at Dyadic]

With Fermbox Bio, commercialization has expanded around recombinant DNase I and recombinant human and bovine transferrin. Taken together, these relationships demonstrate the different stages of the commercial cycle, from product development and distribution to initial purchasing and actual commercial sales.

[Joe Hazelton, President and COO at Dyadic]

They create multiple potential revenue pathways for Dyadic through direct sales, partner sales, milestones, royalties, development funding, and licensing. We also initiated scale-up activities with BRIG BIO for recombinant bovine alpha-lactalbumin under a fully funded development agreement. Additional product testing is underway to evaluate comparability to animal-produced proteins.

[Joe Hazelton, President and COO at Dyadic]

This is another example of how we're advancing products toward broader commercial applications while working with partners to support development and scale-up. Importantly, the strain being developed for this program is not limited to a single end market.

[Joe Hazelton, President and COO at Dyadic]

We're also using it to produce research-grade material for reagent and cell culture applications. That cross-category strategy gives us additional commercial options earlier in the development cycle.

[Joe Hazelton, President and COO at Dyadic]

A protein ultimately intended for a larger nutrition market may also be introduced into research, reagent, or cell culture channels, where volumes, qualification requirements, and commercialization timelines differ.

[Joe Hazelton, President and COO at Dyadic]

This can provide earlier market validation and early revenue opportunities while the broader food and nutrition program advances. It also allows us to leverage the same development work across multiple markets.

[Joe Hazelton, President and COO at Dyadic]

When we create a high-performing strain, optimize the process, and develop the analytical package, we look for opportunities to deploy those capabilities through direct sales, distribution, funded development, licensing, or broader collaborations. After quarter end, we also expanded our precision fermented dairy protein portfolio through an additional development and commercialization agreement.

[Joe Hazelton, President and COO at Dyadic]

We're following the same playbook in bioindustrial, where we're building a portfolio around scalable enzyme production. In July, we announced a new proprietary industrial cellulase product specifically engineered for advanced fiber modification applications.

[Joe Hazelton, President and COO at Dyadic]

The program builds on the commercialization of EN3ZYME and is designed for applications that can include pulp biorefining, microcrystalline cellulose, and nanocellulose production with the potential to improve fiber strength and retention, reduce processing energy requirements, and increase usable fiber output and overall process efficiency.

[Joe Hazelton, President and COO at Dyadic]

In addition to the commercial launch of Inzymes' non-animal bovine chymosin and Fermbox Bio's EN3ZYME, this new cellulase program further demonstrates the potential of Dapibus as a repeatable product development and manufacturing platform across multiple enzyme classes and end markets.

[Joe Hazelton, President and COO at Dyadic]

Rather than relying on different production organisms for different products, Dapibus is built around the common microbial production strains and shared development infrastructure, which can help streamline strain development, process optimization, scale-up, and manufacturing as additional products move through the pipeline.

[Joe Hazelton, President and COO at Dyadic]

As our programs advance through optimization, pilot scale production, and customer evaluation, we expect to evaluate multiple commercialization paths, including direct product sales, strategic collaborations, contract manufacturing, and technology licensing.

[Joe Hazelton, President and COO at Dyadic]

When you look across life sciences, food and nutrition, and bioindustrial, the model is becoming increasingly consistent. We now have products moving through qualification and distribution, products generating initial sales, and partner-developed products already being sold commercially.

[Joe Hazelton, President and COO at Dyadic]

At the same time, we're improving manufacturing productivity and costs and expanding the number of applications and markets our proteins and enzymes potentially can address. We use that commercial and technical validation to strengthen both the economics of individual products and the strategic value of the underlying platforms.

[Joe Hazelton, President and COO at Dyadic]

That's why we view the commercial traction and strategic business development as complementary. We believe that the combination improves our ability to build recurring product revenue while also increasing the potential value of licensing and broader strategic collaborations.

[Joe Hazelton, President and COO at Dyadic]

Importantly, the benefits are not limited to one platform or market. We're increasingly able to leverage learnings and technology advances across C1 and Dapibus, including our proprietary combinatorial libraries and the rapid plasmid-to-protein development capabilities advanced through the fully funded biopharmaceutical program. That work has demonstrated the ability in certain programs to move from plasmid to purified protein in approximately 15 days.

[Joe Hazelton, President and COO at Dyadic]

We believe applying these capabilities across our shared technology foundation can help improve development speed, expression yields, manufacturing economics, and time to commercialization across life sciences, food and nutrition, bioindustrial, and biopharmaceutical opportunities.

[Joe Hazelton, President and COO at Dyadic]

With that, I will now turn the call over to Mark to discuss our biopharmaceutical programs, including how the data and capabilities being generated there can further strengthen C1 and potentially create additional strategic value across Dyadic.

[Mark Emalfarb, CEO at Dyadic]

Thank you, Joe. Joe described how commercial products are helping validate our platforms across life sciences, food and nutrition, and bioindustrial markets. Our biopharmaceutical programs are doing something similar at the more regulated end of the protein spectrum.

[Mark Emalfarb, CEO at Dyadic]

The programs are generating data related to the production of monoclonal antibodies, vaccine antigens, and other therapeutic proteins that we believe can strengthen the broader value proposition of C1 as a manufacturing platform. Our strategy in biopharma remains partner-funded and capital efficient.

[Mark Emalfarb, CEO at Dyadic]

We are not trying to build a fully integrated pharmaceutical company or independently fund large clinical programs. Instead, we are working with organizations such as the Gates Foundation, CEPI, Fondazione Biotecnopolo di Siena or FBS, the European Vaccines Hub, Scripps Research, NIAID support collaborations, the Israel Institute for Biological Research, and several others that can help evaluate C1 against demanding technical benchmarks.

[Mark Emalfarb, CEO at Dyadic]

Our Gates Foundation-supported collaboration is funded under an approximately $3 million grant program focused on developing potentially lower-cost monoclonal antibodies targeting respiratory syncytial virus and malaria. C1-produced antibodies have demonstrated high productivity and functional characteristics comparable to established mammalian cell reference materials.

[Mark Emalfarb, CEO at Dyadic]

Funding is in place to continue this work, and we are working toward providing C1-produced material to support initiation of preclinical studies with one or both antibodies. Each step toward more advanced evaluation provides additional evidence around C1's ability to manufacture complex biologics with the productivity, quality, and functionality in comparison to legacy platforms that biopharmaceutical developers evaluate when considering the adoption of an innovative production platform such as C1.

[Mark Emalfarb, CEO at Dyadic]

We are also continuing our CEPI-supported collaboration through FBS, under which Dyadic is eligible to receive up to approximately EUR 2.4 million to support recombinant vaccine development and scale-up activities. A key capability demonstrated through this work is speed.

[Mark Emalfarb, CEO at Dyadic]

C1 has shown the ability to progress from plasmid-to-protein antigen in approximately 15 days. We subsequently applied this rapid workflow to two Scripps-designed Bundibugyo ebolavirus antigens, providing a real-world demonstration of the C1 platform's ability, approximately 15-day plasmid-to-purified protein capability. Both antigens have been delivered to Scripps Research and FBS and are now undergoing further characterization with the potential to support future preclinical evaluation.

[Mark Emalfarb, CEO at Dyadic]

What is particularly important about that result is what the workflow demonstrates. Rapid strain development, efficient secretion of the target protein, streamlined process execution, and delivery of purified material on a highly compressed timeline. Speed can be especially important in pandemic preparedness, but these same capabilities can also create value more broadly where development timelines, manufacturing simplicity, scalability, and cost of goods influence product development and commercialization decisions.

[Mark Emalfarb, CEO at Dyadic]

This is where our biopharma work connects back to the broader business Joe discussed. Working on technically demanding antibodies and vaccine antigens expands our know-how in strain engineering, expression, secretion, purification, and scale-up. Every protein is different, but the capabilities and technical learnings generated through these programs can and are potentially informing development work across our broader portfolio.

[Mark Emalfarb, CEO at Dyadic]

Beyond Gates and CEPI, we are advancing the NIAID-supported preclinical evaluation of C1-produced malaria antigens, continuing monoclonal antibody development with the Israel Institute for Biological Research, and pursuing additional potential antibody programs through the European Vaccines Hub and FBS ecosystem, as well as the opportunities with prospective first-time C1 collaborators. Collectively, these programs are broadening the external data set around C1 across many different protein classes and applications.

[Mark Emalfarb, CEO at Dyadic]

We believe a growing body of evidence continues to support additional funded development programs and create opportunities for potential platform licensing, technology access, milestone royalties, manufacturing relationships, and broader strategic collaborations.

[Mark Emalfarb, CEO at Dyadic]

Taken together with the commercial progress Joe described, we believe Dyadic is building a more balanced business nearer-term product revenue opportunities across our commercial segments, supported by externally funded biopharmaceutical programs that can generate technical validation and potentially create longer-term licensing and strategic value. With that, I will turn the call back to Ping for the financial review.

[Ping Rawson, CFO at Dyadic]

Thank you, Mark. I will now go over our key financial results for the second quarter of 2026 in more detail. You can find additional information in our earnings press release and Form 10-Q, which we filed earlier today. Total revenue for the three months ended June 30, 2026, was approximately $961,000, essentially flat compared to approximately $967,000 for the second quarter of 2025.

[Ping Rawson, CFO at Dyadic]

Revenue for the quarter included approximately $124,000 of research and development revenue and $837,000 of grant revenue, primarily associated with our ongoing externally funded programs.

[Ping Rawson, CFO at Dyadic]

For the first six months of 2026, total revenue increased approximately 52% to $2.1 million, compared to approximately $1.4 million for the same period in 2025. Total cost of revenue for the quarter was approximately $984,000, an increase of 60% compared to approximately $614,000 for the second quarter of 2025.

[Ping Rawson, CFO at Dyadic]

The increase was primarily related to higher activity levels associated with our grant-funded programs. Internal research and development expenses decreased 47% year over year to approximately $333,000, compared to approximately $629,000 in the second quarter of 2025.

[Ping Rawson, CFO at Dyadic]

The decrease reflects our continuous focus on advancing programs through externally funded collaborations and maintaining disciplined internal R&D spending. For the six months, internal research and development expenses were approximately $809,000, down 28% from approximately $1.1 million a year ago.

[Ping Rawson, CFO at Dyadic]

G&A expenses increased by $263,000, or 18% year over year, to approximately $1.7 million, compared to approximately $1.4 million in the second quarter of 2025. The increase was primarily driven by higher rebranding and business development expenses of $323,000 and higher legal and accounting expenses of $116,000, partially offset by lower share-based compensation expenses of $196,000 and a lower incentive compensation of $32,000.

[Ping Rawson, CFO at Dyadic]

For the six months, G&A expenses were approximately $3.4 million, an increase of 14% year-over-year. Loss from operations for the quarter was approximately $2.1 million, compared to approximately $1.7 million in the prior year period. Net loss for the quarter was approximately $2.1 million or $0.06 per share, compared to approximately $1.8 million or $0.06 per share for the second quarter of 2025.

[Ping Rawson, CFO at Dyadic]

For the six months ended June 30, 2026, net loss was approximately $4.1 million or $0.11 per share, compared to approximately $3.8 million or $0.13 per share for the first six months of 2025. Turning to our balance sheet and liquidity, we ended the second quarter with approximately $4.8 million in cash equivalents, restricted cash and investment-grade securities, including accrued interest.

[Ping Rawson, CFO at Dyadic]

As disclosed in our Form 10-Q, based on our current liquidity position and the accounting requirements for evaluating liquidity over the 12 months following the issuance of our financial statements, we concluded that there is substantial doubt about our ability to continue as a going concern under the applicable accounting standard, ASC 205-40.

[Ping Rawson, CFO at Dyadic]

I want to briefly put that disclosure into context and be clear about what that means and what it does not mean. Going concern is a required accounting assessment based on whether our current resources, together with financing and other actions that are considered probable, are sufficient to fund our obligations over the required assessment period. This is a required accounting determination regarding the 12-month look-forward period from the financial statement issuance date.

[Ping Rawson, CFO at Dyadic]

It does not mean that the company is ceasing operations, and it does not reflect any default under our convertible notes or any other obligations of the company. We were in compliance with all our covenants under our convertible notes, and those notes do not mature until December 31, 2027.

[Ping Rawson, CFO at Dyadic]

Rather, the conclusion reflects our need to obtain additional capital as we continue executing our commercialization and development strategy. We are actively evaluating a range of financing alternatives and other opportunities to strengthen our balance sheet. Importantly, those opportunities are not limited to traditional equity financing.

[Ping Rawson, CFO at Dyadic]

We are also pursuing potential non-dilutive and strategic source of capital, including new and extended licensing arrangements, upfront and milestone payments, royalties, funded development programs, product and technology partnerships, and other strategic transactions that could provide the capital while also accelerating commercialization and the broader adoption of our technologies.

[Ping Rawson, CFO at Dyadic]

At the same time, we remain focused on disciplined cash management, expanding commercial revenues, and maximizing the use of third-party funding and strategic collaborations to support development activities. Our objective is to increasingly fund product development through a combination of commercial revenues, partner-funded programs, and other non-dilutive sources, thereby reducing the amount of capital Dyadic must deploy internally as the business expands.

[Ping Rawson, CFO at Dyadic]

As Joe and Mark discussed, we are beginning to see increasing commercial activity across our life sciences, food and nutrition, and bioindustrial programs, alongside the continued external funding and validation of our biopharmaceutical programs.

[Ping Rawson, CFO at Dyadic]

While these activities remain at a relatively early stage, we believe they are creating a growing number of opportunities to generate recurring product revenues, licensing income, royalties, milestones, and other partnership revenues.

[Ping Rawson, CFO at Dyadic]

Our broader objective is not simply to increase revenue, but to build a business model in which a growing portion of product development and commercialization can be supported by customers, licensees, strategic partners, and external funding sources.

[Ping Rawson, CFO at Dyadic]

If successful, we believe this approach can help extend our financial resources, reduce our reliance on diluted capital, and allow us to continue advancing a broader portfolio of commercial and strategic opportunities while carefully managing operating expenses and capital requirements.

[Ping Rawson, CFO at Dyadic]

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

[Operator]

Thank you. Ladies and gentlemen, if you would like to ask a question, please press star one on your telephone keypad and 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. Participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. The first question comes from the line of Matt Hewitt with Craig-Hallum Capital Group. Please proceed.

[Matt Hewitt, Analyst at Craig-Hallum Capital Group]

Good afternoon. Thanks for taking the questions. Maybe first up, I think both in your queue as well as in your prepared remarks, you noted fairly significant ordering activity post-closing the Q2 books. I am just curious, should we anticipate that we are going to see product revenues here in the third quarter? If so, what does that ramp kind of look like, or do you anticipate it will be lumpy here over the first few quarters?

[Joe Hazelton, President and COO at Dyadic]

It is a great question. Yes, lumpy would probably be the best way to describe it. What we did in the second quarter, we were starting to fill the channels. We obviously ship products to our first global distributor, IBT Bioservices. We also had direct product sales, initial pilot sales going into cultivated meat and a couple into the research segment as well.

[Joe Hazelton, President and COO at Dyadic]

But it is too early until we have some recurring orders to really figure out what that ramp is going to look like. Obviously, we are having discussions every day. We are always trying to push the ramp as quickly as possible, but I think right now it is a little too early.

[Joe Hazelton, President and COO at Dyadic]

But the good news is we also have our partners in the market like Proliant Health & Biologicals, who is not only launched Albufreeâ„¢ DX, but now they are looking to launch two additional products into the market. We have Enzymes and Fermbox as well. Our hope is obviously between our product sales as well as our partners that we will continue to build that ramp as quickly as possible.

[Matt Hewitt, Analyst at Craig-Hallum Capital Group]

Got it. Then maybe my follow-up. You have a lot of irons in the fire. Several different products that you are working on, different partnerships that you have inked and others that are coming. How are you prioritizing all of those? Is it just basically moving down the list and knocking them all off at the same time? Thank you.

[Joe Hazelton, President and COO at Dyadic]

That one is a lot easier. Revenue. It is all prioritized based on the amount of revenue that we can generate in the shortest amount of time. When we are looking at whether it is a potential direct sale, whether it is a licensing opportunity, it is based on the size of the potential opportunity, and we are going to continue to execute that way.

[Operator]

The next question comes from the line of John Vandermosten with Zacks. Please proceed.

[John Vandermosten, Analyst at Zacks]

Great. Thank you, and good evening, Joe, Ping, and Mark. It seems like you mentioned a lot of product shipments in the press release, and I am hoping you can share with me what the intermediate steps are between shipment and then Dyadic top line.

[Joe Hazelton, President and COO at Dyadic]

It first depends on what the shipment is. We had some shipments to direct customers, which is obviously a direct sale. We also had shipments to distributors. That is, again, shipped to the distributor, gets into the channel, sell process, and then you also have people like Proliant.

[Joe Hazelton, President and COO at Dyadic]

When Proliant sells, obviously we get money, but that is on the back end as well. The main thing is we need to get product into the channels. We are able to get six different product opportunities into commercial distribution with IBT in addition to some of our direct sales. Now we need to ramp that up. We are also exploring, obviously, other distribution opportunities.

[Joe Hazelton, President and COO at Dyadic]

I think to me, that is the important point is in order for us to grow, we need to get that product into the market, and we also have our customers that are doing the same thing. Enzymes already has commercial sales. Our hope, obviously, is that as those start to ramp as well, we will start to see those come in.

[John Vandermosten, Analyst at Zacks]

Okay. I wanted to get a sense of. I know you guys are not providing guidance, but you did mention in the Q about the Enzymes milestone that is expected. What other cash flows, I guess, could we expect in the second half to get a sense of kind of where cash might stand at the end of the year? Is there any help you could give me on that?

[Mark Emalfarb, CEO at Dyadic]

Yeah, I think, on both the industrial biotech side through biochemicals, there are some new things going on where we are engaging with some people that are very interested in using the Dapibus platform, not only to develop Enzymes but for bio-based chemicals. We have some work that we have actually done in there that we will be talking about maybe in Q3.

[Mark Emalfarb, CEO at Dyadic]

Also on the pharmaceutical side, the data is coming in very well. As we talked about the Gates Foundation and the mAbs, both RSV and malaria are advancing. The data that we are seeing from the human glycosylation, the yields, the quality as we head into these animal pre-clinical studies, potentially will actually continue to drive interest there along with CEPI.

[Mark Emalfarb, CEO at Dyadic]

That 15-day plasmid-to-protein is applicable not only in pharma but also, as Joe pointed out, it is going to help accelerate the development and commercialization of some of our food and nutrition, life science, and industrial applications.

[Mark Emalfarb, CEO at Dyadic]

Then we are in discussions with a couple major suppliers and pharmaceutical companies where we are hoping to land one of those big chunks of cash to bring us non-dilutive capital that could last us from several months to several years, depending on what it comes out.

[Mark Emalfarb, CEO at Dyadic]

If you keep in mind, John, we did bring in $30 million of non-dilutive capital on the industrial side on non-exclusive licenses in the past. So between what Joe has got going on on that side and some of the new opportunities there, and on the pharmaceutical side, one of those checks could really make a huge difference. As Joe said, those are things we are focused on, getting that done.

[John Vandermosten, Analyst at Zacks]

Okay. All right. Thanks, Mark.

[Operator]

Thank you. As a reminder, if you would like to ask a question, please press star one on your telephone keypad. We will pause another couple moments. There are no further questions at this time, and this will conclude the question and answer session. I will now turn the call over to Dyadic's President and COO, Joe Hazelton.

[Joe Hazelton, President and COO at Dyadic]

Thank you. As we close, I want to bring together what Mark and I discussed today. We believe Q2 represents another important step in Dyadic's evolution from primarily developing technology platforms to building a commercially driven business around those platforms. Across life sciences, food nutrition, and bioindustrial markets, products are progressing through qualification and distribution into initial and commercial sales.

[Joe Hazelton, President and COO at Dyadic]

At the same time, we continue to improve our C1 and Dapibus platforms, manufacturing productivity and economics, while applying relevant technology advances and learnings across both platforms. This shared technology foundation is helping us expand applications, accelerate product development, and work with strategic partners to broaden our commercial reach.

[Joe Hazelton, President and COO at Dyadic]

On the biopharmaceutical side, externally funded programs are generating important data around complex proteins, including monoclonal antibodies and vaccine antigens that we believe can strengthen C1's value proposition and support future licensing and strategic opportunities.

[Joe Hazelton, President and COO at Dyadic]

What connects these activities is our ability to turn technical performance into commercial opportunity. Better productivity and economics can drive product adoption, while customer traction and external validation can strengthen the opportunity for broader strategic relationships.

[Joe Hazelton, President and COO at Dyadic]

We still have significant execution ahead of us, but we believe Dyadic has more ways to create value today than it did a year ago. We have commercial products expanding distribution, improving manufacturing economics, partner funded programs, and a growing body of external validation.

[Joe Hazelton, President and COO at Dyadic]

Our focus for the remainder of 2026 is to continue converting that progress into product sales, recurring revenue, and larger strategic and licensing opportunities while scaling the business efficiently. We appreciate the continued support of our shareholders, partners, and employees. We look forward to updating you on our progress and thank you for joining the call today.

[Operator]

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

Participants

Executives

• Ping Rawson, CFO
• Mark Emalfarb, CEO

Analysts

• Joe Hazelton, President and COO at Dyadic
• Matt Hewitt, Analyst at Craig-Hallum Capital Group
• John Vandermosten, Analyst at Zacks