Financial Data and Key Metrics Changes - Total revenues for Q3 2025 decreased to $1,165,000 from $1,958,000 in the same period a year ago, primarily due to declines in research and development revenue and license and milestone revenue [23][24] - Research and development expenses increased to $572,000 from $460,000 year-over-year, driven by a rise in active internal research initiatives [24] - Net loss for Q3 2025 increased to $1,976,000 or $0.06 per share compared to a loss of $203,000 or $0.01 per share in the same period last year [25] Business Line Data and Key Metrics Changes - The Life Sciences segment is now operating as a product company, manufacturing and supplying lab-grade materials for multiple recombinant proteins [5][6] - The recombinant human albumin program is advancing towards a commercial launch in early 2026, with significant milestone payments received from ProLiant [6][7] - The first bulk purchase order for a Dyadic produced protein was achieved in October, validating the market readiness of the technology [8] Market Data and Key Metrics Changes - The cell culture media market is identified as a dynamic growth area, requiring consistent animal-free proteins for scalability and regulatory confidence [6] - The market for DNase one is approximately $250 million for recombinant products, with a broader market of $1.5 billion for all production methods [32] - The animal-free dairy protein market is expected to exceed $20 billion by 2035, driven by demand for sustainable protein production [13] Company Strategy and Development Direction - The company is transitioning from a platform-centric R&D organization to a commercially focused biotechnology company with a growing portfolio of high-value products [4][5] - Dyadic has rebranded as Dyadic Applied Biosolutions and is enhancing its technology foundation with CRISPR Cas9 gene editing capabilities [4][5] - The strategy includes expanding customer engagement in key global markets, particularly in Asia, Europe, and North America [76] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's transformation and execution, highlighting the first commercial bulk sale as a pivotal moment [4][5] - The focus remains on accelerating product sales across life sciences and molecular biology reagent portfolios, with early commercial traction already underway [76] - The company anticipates growth in product revenue in life sciences and food and nutrition markets while maintaining operating expenses in line with the previous year [26] Other Important Information - The company received a total of $1,500,000 in milestone payments from ProLiant, with expectations to share in profits as albumin products enter the market [7] - Dyadic's collaboration with Intralink aims to accelerate market penetration in Japan and South Korea, leveraging local expertise for effective market reach [11][12] Q&A Session Summary Question: What does the new relationship with ERS Genomics bring to the portfolio? - The CRISPR license enhances the genetic toolbox, accelerating product development and improving optimization yields, providing a competitive advantage in various markets [29][30] Question: How should the DNase one opportunity be viewed for growth in 2026 and beyond? - The DNase one market is substantial, and the focus is on securing OEM agreements for bulk sales, with expectations for steady growth as higher margin segments are targeted [32][34] Question: What characteristics of customers are expected in the Asian markets for DNase one and transferrin? - The target customers include cell and gene therapy manufacturers and suppliers, focusing on bulk purchase orders rather than individual institutions [36][37] Question: Can you elaborate on the CRISPR ERS agreement structure? - The agreement involves improving fungal cell lines for efficiency and quality, with confidentiality around financial specifics, but it is not comparable to CRISPR applications in pharmaceuticals [45][46] Question: How is the infant nutrition product being marketed? - The goal is to mimic human breast milk and bovine milk, with a focus on regulatory hurdles and consumer acceptance, presenting a significant opportunity in the market [51][53]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 increased to approximately $394,000 compared to $335,000 for the same period last year, driven by an increase in grants revenue of approximately $210,000 from the Gates Foundation and CEPI [15] - Research and development expenses for Q1 2025 decreased to $495,000 from $523,000 year-over-year, reflecting a decrease in ongoing internal research projects [16] - General and administrative expenses decreased by 10.8% to $1,596,000 compared to $1,789,000 for the same period last year [17] - Net loss for Q1 2025 was $2,028,000 or $0.07 per share, compared to $2,010,000 or $0.07 per share for the same period last year [18] Business Line Data and Key Metrics Changes - The focus is on commercializing high-value recombinant enzymes and proteins, particularly in life sciences, nutrition, and industrial applications [4][5] - The top commercialization priority lies in the cell culture media space, valued at over $6.1 billion globally, growing at a 13% compound annual growth rate [6] - Significant progress is being made in the development of recombinant human serum albumin, with expectations for launch in Q3 2025 [7] Market Data and Key Metrics Changes - The animal-free dairy products market was valued at approximately $26.5 billion in 2023, with increasing partner interest in non-animal dairy proteins [9] - The nucleic acid tools market is projected to exceed $4 billion globally by 2028, with ongoing development of recombinant DNase-one and RNase-free enzymes [8] Company Strategy and Development Direction - The core growth strategy is centered on high-value life sciences, bioactives, ingredients, and industrial markets, aiming for sustainable growth in non-pharmaceutical sectors [5] - The company is focusing on product development rather than platform development, prioritizing commercialization-ready products [35][36] - Strategic partnerships are maintained in vaccine therapeutic developments, with collaborations with CEPI and the Gates Foundation [4][12] Management's Comments on Operating Environment and Future Outlook - Management emphasizes the importance of transitioning from a development stage to a product-driven revenue-generating enterprise [62] - The company is well-positioned to meet global demand for scalable and affordable animal-free precision engineered proteins and enzymes [63] - There is a commitment to strengthening the balance sheet to support near-term revenue growth and strategic objectives [18] Other Important Information - The company has cash and investment-grade securities of $7.4 million as of March 31, 2025, down from $9.4 million as of December 31, 2024 [18] - The company is participating in various funded programs, including a $4.5 million grant from CEPI and a $3 million program funded by the Gates Foundation [11][12] Q&A Session Summary Question: Can you explain the royalty arrangement with Fermbox? - The profit split is significant for both companies, and revenue sharing will begin immediately as sales start rolling in [22][23] Question: What is the progress on the albumin arrangement? - No advanced orders have been placed yet; sampling is expected to begin in Q2 2025 [24] Question: Will there be opportunities for Fermbox to bid on other contracts? - There are ongoing evaluations for additional contracts in both government and private sectors [27] Question: When will the company start spending less on research and more on revenue-generating areas? - The company is currently reprioritizing resources towards non-pharmaceutical sectors for revenue generation [34][36] Question: What product in the non-dairy applications portfolio has the best margins? - Lactoferrin has the highest margin potential, while alpha-lactalbumin has the largest market potential [40][41] Question: Is there any quantifiable tariff problem for the company? - Currently, there are no significant tariff issues, and there may be potential opportunities with onshoring [50] Question: Will the albumin and dairy enzymes be produced in the U.S.? - Yes, both products are being produced domestically, which mitigates tariff concerns [54][55]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 increased to approximately $394,000 compared to $335,000 for the same period last year, driven by an increase in grants revenue of approximately $210,000 from the Gates Foundation and CEPI [18][19] - Research and development expenses for Q1 2025 decreased to $495,000 from $523,000 year-over-year, reflecting a decrease in ongoing internal research projects [19][20] - General and administrative expenses decreased by 10.8% to $1,596,000 compared to $1,789,000 for the same period last year [20] - Net loss for Q1 2025 was $2,028,000 or $0.07 per share, compared to $2,010,000 or $0.07 per share for the same period last year [20] Business Line Data and Key Metrics Changes - The company is focusing on commercializing high-value recombinant enzymes and proteins, particularly in life sciences, nutrition, and industrial applications [4][5] - The top commercialization priority lies in the cell culture media space, a market valued at over $6.1 billion globally, growing at a robust 13% compound annual growth rate [6][8] - Significant progress has been made in developing recombinant proteins and enzymes, including recombinant human serum albumin and fibroblast growth factors [7][9] Market Data and Key Metrics Changes - The animal-free dairy products market was valued at approximately $26.5 billion in 2023, with increasing partner interest in non-animal dairy proteins [10][11] - The nucleic acid tools market is projected to exceed $4 billion globally by 2028, with ongoing development of recombinant DNase-one and RNase-free enzymes [10][12] Company Strategy and Development Direction - The core growth strategy is centered on high-value life sciences, bioactives, ingredients, and industrial markets, aiming for sustainable growth in non-pharmaceutical sectors [4][5] - The company is committed to delivering sustainable value to shareholders and partners, with a growing pipeline and strong network of collaborators [5][17] - The company is also participating in various initiatives for pandemic preparedness, including collaborations with CEPI and the Gates Foundation [14][15] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of focusing on product commercialization rather than long-term platform development, aiming to generate revenue through ready-to-market products [38][61] - The company is optimistic about its position in the market, with commercial launches on the horizon and a robust pipeline backed by non-dilutive funding [63] Other Important Information - The company has cash and investment-grade securities of $7.4 million as of March 31, 2025, down from $9.4 million as of December 31, 2024 [20] - The company is exploring opportunities in onshoring and expanding manufacturing capabilities in the U.S. [51][56] Q&A Session Summary Question: Can you explain the royalty arrangement with Fermbox? - The profit split from the joint venture collaboration with Fermbox is significant, and revenue sharing will begin immediately as sales start rolling in [24][25] Question: What is the progress on the albumin arrangement? - No advanced orders have been placed yet, but sampling is expected to begin in Q2 2025, with orders anticipated in Q3 [26] Question: Will there be more government contracts for Fermbox? - There are opportunities for Fermbox to bid on additional contracts, both government and private sector [30] Question: When will the company shift focus from research spending to revenue-generating areas? - The company is currently reprioritizing resources towards non-pharmaceutical sectors for revenue generation [37] Question: Which non-dairy product has the best margins? - Lactoferrin has the highest margin potential, while alpha-lactalbumin has the largest market potential in terms of volume and margins [43] Question: What caused the drop in paid collaborators? - The decrease is due to the company's pivot towards licensing deals and product partnerships rather than resource-intensive collaborations [51]