UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-32513

DYADIC INTERNATIONAL, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware		45-0486747
State or Other Jurisdiction of Incorporation or Organization		I.R.S. Employer Identification No.

1044 North U.S. Highway One, Suite 201 Jupiter, Florida		33477
Address of Principal Executive Offices		Zip Code

(561) 743-8333

Registrant’s Telephone Number, Including Area Code

N/A

Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.001 per share		DYAI		The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐

Non-accelerated filer ☒	Smaller reporting company ☒

	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

The number of shares outstanding of the registrant’s Common Stock as of August 12, 2025 was 36,187,798.

TABLE OF CONTENTS

		Page
PART I FINANCIAL INFORMATION		3
Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	30
Item 4.	Controls and Procedures	30

PART II OTHER INFORMATION
Item 1.	Legal Proceedings	31
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 3.	Defaults Upon Senior Securities	31
Item 4.	Mine Safety Disclosures	31
Item 5.	Other Information	31
Item 6.	Exhibits	32
Signatures		33

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This quarterly report on Form 10-Q (“Quarterly Report”) contains forward-looking statements within the meaning of the federal securities laws, particularly under Item 2 “Management’s Discussion and Analysis.” All statements other than statements of historical fact are forward-looking. Examples of forward-looking statements include, but are not limited to, statements regarding industry prospects, future business, future results of operations or financial condition, future liquidity and capital resources, our ability to implement our agreements with third parties, management strategies, and our competitive position. Forward-looking statements generally can be identified by use of the words “expect,” “should,” “intend,” “anticipate,” “will,” “project,” “may,” “might,” “potential,” or “continue” and other similar terms or variations of them or similar terminology. Dyadic International, Inc., and its subsidiaries caution readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information. Such statements reflect the current views of our management with respect to our operations, results of operations and future financial performance.

Forward-looking statements involve many risks, uncertainties, or other factors beyond Dyadic’s control. These factors include, but are not limited to (i) our history of net losses; (ii) market and regulatory acceptance of our microbial protein production platforms and other technologies; (iii) failure to commercialize our microbial protein production platforms or our other technologies; (iv) competition, including from alternative technologies; (v) the results of nonclinical studies and clinical trials; (vi) our capital needs; (vii) changes in global economic and financial conditions; (viii) our reliance on information technology; (ix) our dependence on third parties; (x) government regulations and environmental, social and governance issues; (x) intellectual property risks; (xi) our ability to comply with the listing standards of the Nasdaq Stock Market LLC; and (xii) other factors discussed in Dyadic’s publicly available filings, including information set forth under the caption “Risk Factors” in this Quarterly Report and in our annual report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 26, 2025 (the “Annual Report”). We caution you that the foregoing list of important factors is not exclusive. Any forward-looking statements are based on our beliefs, assumptions, and expectations of future performance, considering the information currently available to us. Before investing in our common stock, investors should carefully read the information set forth under the caption “Risk Factors” and elsewhere in this Quarterly Report, in our Annual Report and in our other SEC filings, which could have a material effect on our business, results of operations and financial condition. The forward-looking statements contained in this Quarterly Report are made only as of the date hereof, and except as required by law, we undertake no obligation to publicly update any forward-looking statements for any reason after the date of this Quarterly Report to conform these statements to actual results or to changes in our expectations.

PART I

Item 1.

Financial Statements

DYADIC INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	June 30, 2025			December 31, 2024
	(Unaudited)			(Audited)
Assets
Current assets:
Cash and cash equivalents	$	2,140,899		$	6,506,750
Short-term investment securities		2,842,419			2,756,577
Restricted cash and cash equivalents, current		1,588,384			—
Interest receivable		34,736			24,248
Accounts receivable		715,317			237,027
Prepaid expenses and other current assets		84,984			303,066
Total current assets		7,406,739			9,827,668

Non-current assets:
Long-term investment securities		409,670			—
Restricted cash and cash equivalents, noncurrent		245,147			—
Operating lease right-of-use asset, net		65,961			92,211
Other assets		10,529			10,396
Total assets	$	8,138,046		$	9,930,275

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	738,794		$	482,320
Accrued expenses		929,850			970,462
Deferred research and development obligations		1,833,531			833,813
Operating lease liability, current portion		57,577			54,249
Accrued interest		80,000			80,000
Accrued interest- related party		21,800			27,173
Total current liabilities		3,661,552			2,448,017

Non-current liabilities:
Convertible notes, net of issuance costs		3,930,170			3,911,471
Convertible notes, net of issuance costs - related party		1,070,971			1,065,876
Operating lease liability, net of current portion		5,054			34,621
Total liabilities		8,667,747			7,459,985

Commitments and contingencies (Note 5)		-			-

Stockholders’ equity:
Preferred stock, $.0001 par value:
Authorized shares - 5,000,000; none issued and outstanding		—			—
Preferred stock, $.0001 par value: Authorized shares - 5,000,000; none issued and outstanding		—			—
Common stock, $.001 par value:
Authorized shares - 100,000,000; issued shares - 42,389,300 and 42,089,301, outstanding shares - 30,135,798 and 29,835,799 as of June 30, 2025, and December 31, 2024, respectively		42,390			42,090
Common stock, $.001 par value: Authorized shares - 100,000,000; issued shares - 42,389,300 and 42,089,301, outstanding shares - 30,135,798 and 29,835,799 as of June 30, 2025, and December 31, 2024, respectively		42,390			42,090
Additional paid-in capital		108,265,657			107,444,595
Treasury stock, shares held at cost - 12,253,502		(18,929,915	)		(18,929,915	)
Accumulated deficit		(89,907,833	)		(86,086,480	)
Total stockholders’ equity		(529,701	)		2,470,290
Total liabilities and stockholders’ equity	$	8,138,046		$	9,930,275

The accompanying notes are an integral part of these unaudited consolidated financial statements.

DYADIC INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	2025			2024			2025			2024
	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
Revenues:
Research and development revenue	$	213,449		$	385,896		$	396,549		$	720,513
Grant revenue		503,181			—			713,653			—
License and milestone revenue		250,000			—			250,000			—
Total revenue		966,630			385,896			1,360,202			720,513

Costs and expenses:
Costs of research and development revenue		148,457			301,956			274,937			445,911
Costs of grant revenue		465,134			—			636,312			—
Research and development		629,379			515,629			1,124,358			1,038,352
General and administrative		1,436,630			1,607,756			3,032,968			3,396,350
Foreign currency exchange loss		16,098			3,146			23,170			8,049
Total costs and expenses		2,695,698			2,428,487			5,091,745			4,888,662

Loss from operations		(1,729,068	)		(2,042,591	)		(3,731,543	)		(4,168,149	)

Other income (expense):
Interest income		49,127			138,471			137,585			225,914
Gain on sale of Alphazyme		—			—			—			60,977
Interest expense		(89,456	)		(88,634	)		(178,699	)		(110,273	)
Interest expense - related party		(24,377	)		(52,469	)		(48,696	)		(63,288	)
Interest expense		(24,377	)		(52,469	)		(48,696	)		(63,288	)
Total other income (expense), net		(64,706	)		(2,632	)		(89,810	)		113,330

Net loss	$	(1,793,774	)	$	(2,045,223	)	$	(3,821,353	)	$	(4,054,819	)

Basic and diluted net loss per common share	$	(0.06	)	$	(0.07	)	$	(0.13	)	$	(0.14	)

Basic and diluted weighted-average common shares outstanding		30,102,324			29,291,259			30,071,285			29,085,696

The accompanying notes are an integral part of these unaudited consolidated financial statements.

DYADIC INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

	Shares		Amount		Shares			Amount			Capital			Deficit			Total
	Six Months Ended June 30, 2025
	Common Stock				Treasury Stock						Additional Paid-In			Accumulated
	Shares		Amount		Shares			Amount			Capital			Deficit			Total
January 1, 2025		42,089,301	$	42,090		(12,253,502	)	$	(18,929,915	)	$	107,444,595		$	(86,086,480	)	$	2,470,290
Stock-based compensation expense		—		—		—			—			225,030			—			225,030
Issuance of common stock upon vesting of restricted stock units		250,964		251		—			—			231,370			—			231,621
Issuance of common stock upon exercise of stock options		27,483		27		—			—			24,222			—			24,249
Net loss		—		—		—			—			—			(2,027,579	)		(2,027,579	)
March 31, 2025		42,367,748	$	42,368		(12,253,502	)	$	(18,929,915	)	$	107,925,217		$	(88,114,059	)	$	923,611
Stock-based compensation expense		—		—		—			—			340,462			—			340,462
Issuance of common stock upon vesting of restricted stock units		21,552		22		—			—			(22	)		—			—
Net loss		—		—		—			—			—			(1,793,774	)		(1,793,774	)
June 30, 2025		42,389,300	$	42,390		(12,253,502	)	$	(18,929,915	)	$	108,265,657		$	(89,907,833	)	$	(529,701	)

	Six Months Ended June 30, 2024
	Common Stock				Treasury Stock						Additional Paid-In			Accumulated
	Shares		Amount		Shares			Amount			Capital			Deficit			Total
January 1, 2024		41,064,563	$	41,065		(12,253,502	)	$	(18,929,915	)	$	105,044,756		$	(80,277,321	)	$	5,878,585
Stock-based compensation expense		—		—		—			—			306,478			—			306,478
Issuance of common stock upon vesting of restricted stock units		375,753		376		—			—			339,959			—			340,335
Net loss		—		—		—			—			—			(2,009,596	)		(2,009,596	)
March 31, 2024		41,440,316	$	41,441		(12,253,502	)	$	(18,929,915	)	$	105,691,193		$	(82,286,917	)	$	4,515,802
Balance		41,440,316	$	41,441		(12,253,502	)	$	(18,929,915	)	$	105,691,193		$	(82,286,917	)	$	4,515,802
Stock-based compensation expense		—		—		—			—			297,603			—			297,603
Issuance of common stock upon vesting of restricted stock units		61,793		62		—			—			(62	)		—			—
Issuance of common stock upon exercise of stock options		5,569		6		—			—			(6	)		—			—
Issuance of common stock upon settlement of convertible debt		223,463		223		—			—			399,777			—			400,000
Net loss		—		—		—			—			—			(2,045,223	)		(2,045,223	)
June 30, 2024		41,731,141	$	41,732		(12,253,502	)	$	(18,929,915	)	$	106,388,505		$	(84,332,140	)	$	3,168,182
Balance		41,731,141	$	41,732		(12,253,502	)	$	(18,929,915	)	$	106,388,505		$	(84,332,140	)	$	3,168,182

The accompanying notes are an integral part of these unaudited consolidated financial statements.

DYADIC INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	2025			2024
	Six Months Ended June 30,
	2025			2024
Cash flows from operating activities
Net loss	$	(3,821,353	)	$	(4,054,819	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense		565,492			604,081
Amortization of held-to-maturity securities, net		(15,996	)		(27,699	)
Amortization of debt issuance costs		23,794			26,717
Gain from the sale of investment in Alphazyme		—			(60,977	)
Foreign currency exchange loss (gain), net		23,170			8,049
Changes in operating assets and liabilities:
Interest receivable		(10,488	)		(18,077	)
Accounts receivable		(471,860	)		210,725
Prepaid expenses and other current assets		218,050			201,073
Operating lease assets and liabilities		11			870
Accounts payable		224,080			(224,307	)
Accrued expenses		191,009			152,800
Accrued interest		—			80,000
Accrued interest - related party		(5,373	)		32,000
Deferred research and development obligation		999,718			(7,790	)
Net cash used in operating activities		(2,079,746	)		(3,077,354	)

Cash flows from investing activities
Purchases of held-to-maturity investment securities		(4,560,278	)		(4,734,528	)
Proceeds from maturities of investment securities		4,080,762			1,546,000
Proceeds from the sale of investment in Alphazyme		—			60,977
Net cash used in investing activities		(479,516	)		(3,127,551	)

Cash flows from financing activities
Proceeds from exercise of stock		24,249			—
Proceeds from issuance of convertible notes, net of issuance costs		—			3,882,884
Proceeds from issuance of convertible notes, net of issuance costs - related party		—			1,941,442
Net cash provided by financing activities		24,249			5,824,326
Effect of exchange rate changes on cash		2,693			(1,051	)
Net decrease in cash, cash equivalents, and restricted cash and cash equivalents		(2,532,320	)		(381,630	)
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period		6,506,750			6,515,028
Cash, cash equivalents, and restricted cash and cash equivalents at end of period	$	3,974,430		$	6,133,398

Reconciliation of cash, cash equivalents, and restricted cash and cash equivalents to the consolidated balance sheets
Cash and cash equivalents	$	2,140,899		$	6,133,398
Restricted cash and cash equivalents, current		1,588,384			—
Restricted cash and cash equivalents, noncurrent		245,147			—
Total cash, cash equivalents, and restricted cash and cash equivalents	$	3,974,430		$	6,133,398

Supplemental cash flow information
Vesting of restricted stock units	$	269,100		$	439,085
Conversion of convertible notes	$	—		$	400,000
Cash paid for interest	$	208,973		$	34,844

The accompanying notes are an integral part of these unaudited consolidated financial statements.

Notes to Consolidated Financial Statements

Note 1: Organization and Summary of Significant Accounting Policies

Description of Business

Dyadic International, Inc. (“Dyadic”, “we”, “us”, “our”, or the “Company”) is a global biotechnology platform company headquartered in Jupiter, Florida, with operations in the U.S. and the Netherlands. We aim to develop and commercialize scalable, non-animal protein production platforms to meet growing global demand across the life sciences, food and nutrition, and bio-industrial markets.

Our proprietary platforms—Dapibus™ and C1—are designed for rapid, cost-effective, and flexible production of high-value proteins, enabling partners to reduce development timelines and manufacturing costs. While Dyadic’s primary focus is on non-therapeutic applications, both platforms retain the capability to produce biologics, such as vaccines and therapeutic proteins, for external partners.

DBA Name Change Update

Effective on August 1, 2025, we are doing business as Dyadic Applied BioSolutions (as previously announced on July 2, 2025). This rebranding initiative marks a strategic transition from a research-driven organization to a commercially focused enterprise. The new name and visual identity better reflect the emphasis on delivering applied biotechnology solutions through our patented and proprietary C1 and Dapibus™ gene expression platforms.

This underscores our focus on commercializing high-value, non-therapeutic proteins in the life sciences, food, nutrition and industrial bioprocessing sectors. These proteins avoid the regulatory complexity and high costs associated with therapeutic biologics, enabling faster time to revenue, broader market reach, and long-term supply agreements. Our recent significant milestones across both food and nutrition as well as fully funded legacy collaborations, such as with the Gates Foundation, underscore our strategic shift to revenue-focused bioprocessing protein platforms from therapeutic and vaccine development.

Liquidity and Capital Resources

In accordance with FASB Accounting Standards Codification (“ASC”) 205-40, Presentation of Financial Statements – Going Concern (“Topic 205-40”), management is required to evaluate whether there are conditions and events, considered in the aggregate that raise substantial doubt about the Company’s ability to continue as a going concern for at least 12 months from the issuance date of the Company’s condensed interim financial statements. This evaluation does not take into consideration the potential mitigating effect of management’s plans that have not been fully implemented or are not within control of the Company as of the date the financial statements are issued. When substantial doubt exists under this methodology, management evaluates whether the mitigating effect of its plans sufficiently alleviates substantial doubt about the Company’s ability to continue as a going concern. The mitigating effect of management’s plans, however, is only considered if both (1) it is probable that the plans will be effectively implemented within one year after the date that the financial statements are issued, and (2) it is probable that the plans, when implemented, will mitigate the relevant conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued.

The Company expects to incur losses and have negative net cash flows from operating activities as it continues developing its C1 and Dapibus ^TM microbial protein production platforms and related products, and as it expands its pipelines and engages in further research and development activities for internal products as well as for its third-party collaborators and licensees. The success of the Company depends on its ability to develop its technologies and products to the point of regulatory approval, commercialization, and subsequent revenue generation or through the sublicensing of the Company’s technologies and products, and its ability to raise capital to finance these developmental efforts.

On March 8, 2024, the Company issued an aggregate principal amount of $6.0 million of its 8.0% Senior Secured Convertible Promissory Notes due March 8, 2027 (the “Convertible Notes”) in a private placement. The purchasers of the Convertible Notes included immediate family members and family trusts related to Mark Emalfarb, our President and Chief Executive Officer and a member of our Board of Directors, including The Francisco Trust, an existing holder of more than 5% of the Company’s outstanding common stock, (collectively, the “Purchasers”). The net proceeds from the sale of the Convertible Notes, after deducting offering expenses, were $5,824,326. The Company intends to use the net proceeds from the offering of the Convertible Notes for working capital and general corporate purposes.

The Convertible Notes are senior, secured obligations of Dyadic and its affiliates, and interest is payable quarterly in cash on the principal amount equal to 8% per annum. The Convertible Notes will mature on March 8, 2027 (the “Maturity Date”), unless earlier converted, repurchased, or redeemed in accordance with the terms of the Convertible Notes. The Convertible Notes can be converted into shares of Dyadic’s common stock, par value $0.001 per share (the “Common Stock”), at the option of the holders of the Convertible Notes (the “Noteholders”) at any time prior to the Maturity Date.

On October 4, 2024, the Company entered into an amendment (the “Amendment”) to the Convertible Notes. Pursuant to the Amendment, (i) the conversion price upon which the Convertible Notes will be convertible into shares of the Company’s common stock is $1.40 per share of common stock, and (ii) the Redemption Date (as defined in the Amendment) will fall on any of the 26, 29 and 32-month anniversaries of the original issue date of the Convertible Notes.

During the year ended December 31, 2024, $910,000 of the Convertible Notes were converted into 556,623 shares of Common Stock. For more information regarding the Convertible Notes, including the covenants related thereto, see Note 4 to the Consolidated Financial Statements.

On May 1, 2025, the Company entered into a second amendment (the “Second Amendment”) to the Convertible Notes. Pursuant to the Second Amendment, the Redemption Date (as defined in the Second Amendment) will now fall on December 1, 2026.

The Convertible Notes contain customary covenants, and the Securities Purchase Agreement relating to the Convertible Notes also contains certain affirmative and negative covenants (including, without limitation, restrictions on our ability to incur indebtedness, permit liens, make dividends or certain debt payments or consummate certain affiliate transactions). The Company was in compliance with its covenants with respect to the Convertible Notes as of June 30, 2025.

On November 16, 2024, Dyadic entered into an agreement with the Gates Foundation (the “Gates Foundation”, formerly known as the Bill & Melinda Gates Foundation) relating to a grant in the amount of $3,092,136 awarded from the Gates Foundation for the cell line development of monoclonal antibodies targeting respiratory syncytial virus and malaria utilizing the Company’s C1 platform to provide globally accessible treatment options for underserved populations (the “Gates Foundation Grant”). Funds received in advance that have not been spent are recorded as restricted cash and cash equivalents in the Company’s consolidated balance sheets.

On March 20, 2025, the Company received a funding award from Coalition for Epidemic Preparedness (“CEPI”) to advance Dyadic’s C1 platform through a $4.5 million grant through Fondazione Biotecnopolo di Siena (“FBS”) to accelerate recombinant protein vaccine development and manufacturing. The funding will support antigen design, cell line development, optimization, characterization, and scale-up to cGMP manufacturing. If successful, the next phase will focus on selecting a CEPI-priority pathogen antigen. Dyadic, as a subcontractor, will receive up to $2.4 million of the total grant funding.

On July 30, 2025, the Company entered into an underwriting agreement with Craig-Hallum Capital Group LLC, in its capacity as underwriter, relating to the issuance and sale (the “Offering”) of 6,052,000 shares of the Company’s Common Stock. The public offering price in the Offering was $0.95 per share of Common Stock. The closing of the Offering occurred on August 1, 2025. The net proceeds to the Company from the Offering were approximately $5.3 million, after deducting underwriting discounts and commissions and estimated offering expenses payable by the Company. The Company intends to use the net proceeds of the Offering for working capital and general corporate purposes, such as product development, sales and marketing.

The Company expects its existing cash, cash equivalents, restricted cash and cash equivalents and its short term investment securities, totaling approximately $6.9 million as of June 30, 2025, together with the capital raised from the Offering of approximately $5.3 million, will be sufficient to meet its operational, business, and other liquidity requirements for at least the next twelve (12) months from the date of issuance of the financial statements contained in this Quarterly Report. However, the Company has based this estimate on assumptions that may prove to be wrong, and its operating plan may change as a result of many factors currently unknown to it. In the event our financing needs are not able to be met by our existing cash, cash equivalents and investments, we would seek to raise additional capital through strategic financial opportunities that could include, but are not limited to, future public or private equity offerings, collaboration agreements, convertible notes or other debt instruments, and/or other means. Any amount raised may be used for the further development and commercialization of product candidates, and for other working capital purposes. There is no guarantee that any of these strategic or financing opportunities will be executed or realized on favorable terms, if at all, and some could be dilutive to existing shareholders.

Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements, including the accounts of the Company and its wholly owned subsidiaries, have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) as found in the Accounting Standards Codification (“ASC”), Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and footnote disclosures normally included in consolidated financial statements have been condensed or omitted pursuant to such rules and regulations. All significant intra-entity transactions and balances have been eliminated in consolidation. The information included in this Quarterly Report should be read in conjunction with the audited consolidated financial statements and footnotes as of and for the year ended December 31, 2024, included in our Annual Report.

In the opinion of management, the accompanying unaudited interim consolidated financial statements reflect all adjustments, which are of a normal recurring nature, considered necessary for a fair presentation of all periods presented. The results of the Company’s operations for any interim period are not necessarily indicative of the results of operations for any other interim period or for a full fiscal year.

Segment Information

Operating segments are defined as components of an entity about which separate discrete information is available for evaluation by the chief operating decision maker, or CODM, in deciding how to allocate resources and in assessing performance. The CODM is the Company’s senior management team that includes the Chief Executive Officer, President & Chief Operating Officer, and Chief Financial Officer. The Company views its operations as and manages its business in one operating segment, which is the business of developing and commercializing recombinant protein products using the Company’s proprietary microbial platforms, including C1 and Dapibus™. Segment information is further described in Note 8 to the consolidated financial statements included in this Quarterly Report on Form 10-Q.

Use of Estimates

The preparation of these consolidated financial statements in accordance with GAAP requires management to make estimates and judgments that affect the reported amount of assets and liabilities and related disclosure of contingent assets and liabilities at the date of our consolidated financial statements and the reported amounts of revenues and expenses during the applicable period. Estimates inherent in the preparation of these consolidated financial statements include, but are not limited to, estimates related to revenue recognition, accrued expenses, stock-based compensation expense, and income taxes. The Company bases its estimates on historical experience and other market specific or other relevant assumptions it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates as there are changes in circumstances, facts, and experience. Actual results may differ from these estimates under different assumptions or conditions. Such differences could be material to the consolidated financial statements.

Concentrations and Credit Risk

The Company’s financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash and cash equivalents, investment securities, and accounts receivable. At times, the Company has cash, cash equivalents, and investment securities at financial institutions exceeding the Federal Depository Insurance Company (“FDIC”) and the Securities Investor Protection Corporation (“SIPC”) insured limit on domestic currency and the Netherlands’ FDIC counterpart for foreign currency. The Company currently deals with four reputable financial institutions and has not experienced any losses in those accounts.

For the three months ended June 30, 2025 and 2024, the Company’s revenue was generated from eight and ten customers, respectively. For the six months ended June 30, 2025 and 2024, the Company’s revenue was generated from ten and thirteen customers, respectively. Significant customers are those that account for greater than 10% of the Company’s revenues. For the three months ended June 30, 2025 and 2024, three and four significant customers accounted for $794,615 or 58.4% and $284,594 or 73.7% of revenue, respectively. For the six months ended June 30, 2025 and 2024, four and five significant customers accounted for $1,101,653 or

SEC Form 10-Q filed by Dyadic International Inc.