Dyadic(US:DYAI)2025-05-14 20:31PART I FINANCIAL INFORMATION Financial Statements Dyadic's Q1 2025 saw increased revenue from new grants, a slightly higher net loss, decreased assets, yet sufficient liquidity Consolidated Balance Sheet Highlights (Unaudited) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $5,064,941 | $6,506,750 | | Total current assets | $7,805,212 | $9,827,668 | | Total assets | $7,894,878 | $9,930,275 | | Total current liabilities | $1,962,160 | $2,448,017 | | Total liabilities | $6,971,267 | $7,459,985 | | Total stockholders' equity | $923,611 | $2,470,290 | Consolidated Statements of Operations Highlights (Unaudited) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total revenue | $393,572 | $334,617 | | Total costs and expenses | $2,396,047 | $2,460,175 | | Loss from operations | ($2,002,475) | ($2,125,558) | | Net loss | ($2,027,579) | ($2,009,596) | | Basic and diluted net loss per common share | ($0.07) | ($0.07) | Consolidated Statements of Cash Flows Highlights (Unaudited) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($1,949,731) | ($1,112,979) | | Net cash provided by (used in) investing activities | $482,104 | ($654,907) | | Net cash provided by financing activities | $24,249 | $5,824,326 | | Net (decrease) increase in cash and cash equivalents | ($1,441,809) | $4,054,786 | Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses advancing C1 and Dapibus™ platforms, recent grants, and commercialization efforts, noting a slight Q1 2025 net loss increase but sufficient liquidity Overview Dyadic focuses on its C1 and Dapibus™ protein platforms, targeting both biopharmaceutical and non-pharmaceutical markets, with a successful C1 Phase 1 human study - A key validation milestone was the successful completion of a Phase 1 first-in-human study in 2024 for a vaccine antigen produced using the C1 platform, demonstrating its safety146 - The company has a dual strategy: leveraging the Dapibus™ platform for near-term revenue in non-pharmaceutical markets and advancing the C1 platform for long-term value in biopharmaceuticals147 Recent Developments Recent developments include a $4.5 million CEPI grant, anticipated Q3 2025 commercial launch of Human Serum Albumin, and a $3 million Gates Foundation project for low-cost monoclonal antibodies - Received a $4.5 million CEPI grant (Dyadic's share up to $2.4 million) to accelerate recombinant protein vaccine development using the C1 platform149 - Expects commercial launch of Human Serum Albumin with partner Proliant in Q3 2025 for research, diagnostics, and cell culture media applications150 - Partner Fermbox Bio launched EN3ZYME, an enzyme cocktail produced using the Dapibus™ platform, and received its first large purchase order in Q1 2025150 - Initiated a $3 million project with the Gates Foundation to develop low-cost monoclonal antibodies for malaria and RSV155 Results of Operations Q1 2025 total revenue increased due to new grant revenue, operating loss slightly improved, but net loss marginally increased due to higher interest expenses and a non-recurring gain Revenue and Cost of Revenue Comparison (Q1 2025 vs Q1 2024) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Research and development revenue | $183,100 | $334,617 | | Grant revenue | $210,472 | $— | | Costs of research and development revenue | $126,480 | $143,955 | | Cost of grant revenue | $171,178 | $— | - Research and development expenses decreased to $495,000 in Q1 2025 from $523,000 in Q1 2024 due to a reduction in the number of internal research projects176 - General and administrative expenses decreased by 10.8% to $1.60 million in Q1 2025 from $1.79 million in Q1 2024, reflecting lower business development, incentive, and legal costs177 - Other expenses were $25,000 in Q1 2025, compared to other income of $116,000 in Q1 2024. The change was mainly due to an $81,000 increase in interest expense and a $61,000 gain on the sale of Alphazyme in 2024 that did not recur179 Liquidity and Capital Resources As of March 31, 2025, Dyadic held $7.4 million in cash and investments, deemed sufficient for the next 12 months, supported by $5.8 million from 2024 convertible notes - In March 2024, the company raised $5.8 million in net proceeds from a $6.0 million issuance of 8.0% Senior Secured Convertible Promissory Notes due 2027182 - The company had total cash, cash equivalents, and investment securities of $7.4 million as of March 31, 2025188 - Management expects existing cash and investments to be sufficient to fund operations for at least the next 12 months from the report's issuance date188 - Net cash used in operating activities for Q1 2025 was $2.0 million, primarily due to the net loss for the period189 Quantitative and Qualitative Disclosures about Market Risk As a smaller reporting company, Dyadic is exempt from providing quantitative and qualitative disclosures about market risk - As a smaller reporting company, Dyadic is not required to provide quantitative and qualitative disclosures about market risk193 Controls and Procedures Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during Q1 - Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025194195 - No material changes to the internal control over financial reporting occurred during the first quarter of 2025196 PART II OTHER INFORMATION Legal Proceedings The company is not currently involved in any material litigation that would adversely affect its financial condition or operations - The company reports no current material litigation199 Risk Factors No changes to the company's risk factors were reported since the 2024 fiscal year Annual Report filing - No changes to risk factors were reported since the 2024 Annual Report200 Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered sales of equity securities during the reporting period - None201 Other Information No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the quarter ended March 31, 2025 - No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement in Q1 2025204 Exhibits This section lists the exhibits filed with the quarterly report, including corporate documents, note amendments, and officer certifications