Cygnus Technologies LLC

Human Health Sector Final Clinical Study Report has been issued for the First-In-Human Phase 1 clinical trial demonstrating safety and antibody response for DYAI-100, a recombinant protein receptor binding domain booster vaccine candidate for protection against COVID-19 infectionEntered into several fully funded vaccine and antibody projects covering more than twelve targets, five of which are funded by two of the top ten pharmaceutical companiesSuccessfully expressed a H1N1 influenza antigen in our collaboration with the Vaccine and Immunotherapy Center (“VIC”) at Massachusetts General HospitalAnnounced strategic partnership to develop affordable rabies prophylactics and vaccines using C1-cell protein production platformPublished a manuscript of preclinical studies on C1 produced monoclonal antibody in non-human primates and hamsters in prestigious peer-reviewed journal Nature CommunicationsAdvanced collaboration with Israel Institute for Biological Research (IIBR) targeting bio-threats and emerging disease solutionsC1 produced adjuvanted recombinant ferritin nanoparticle H5N1 “Bird Flu” human vaccine candidate demonstrated a strong immune response in animal studies Animal Health Sector C1 produced adjuvanted recombinant ferritin nanoparticle H5N1 “Bird Flu” human vaccine candidate demonstrated a strong immune response in animal studies for potential use in poultry, cattle and other animalsExpanded collaboration with Phibro/Abic to develop vaccines and treatments for companion and livestock animal diseases Alternative Proteins Sector Executed a term sheet to utilize our microbial protein production platforms to develop production strains for the production of recombinant serum albuminAdvanced development of 6 product candidates for non-pharmaceutical applications utilizing the Dapibus™ platform technology Corporate Closed a $6.0 million convertible note in a private placement, with a conversion price of $1.79 and no warrantsAppointed Mr. Patrick Lucy as Board Chairman and Mr. Joe Hazelton as Chief Operating OfficerCash and investment grade securities of $12.1 million as of March 31, 2024Financial results and business update conference call scheduled for 5:00 p.m. ET today JUPITER, Fla., May 14, 2024 (GLOBE NEWSWIRE) -- Dyadic International, Inc. (“Dyadic”, “we”, “us”, “our”, or the “Company”) (NASDAQ: DYAI), a biotechnology company focused on the efficient large-scale manufacture of proteins for use in human and animal vaccines and therapeutics, as well as non-pharmaceutical applications including food, nutrition, and wellness, today announced its financial results for the first quarter of 2024 and highlighted recent Company progress. “We continue to execute our business strategy to focus on near-term pharmaceutical and non-pharmaceutical applications for our proprietary and patented C1 and Dapibus™ protein production platforms and pipeline products,” said Mr. Mark Emalfarb, President and CEO of Dyadic. “One of our key highlights was the successful completion of a Phase 1 clinical trial that met its primary endpoint of safety and reactogenicity affirming the safety of proteins produced by Dyadic's C1 platform in humans. We believe this milestone not only establishes the safety of our platform but also provides a solid foundation for C1 technology’s future applications in human and animal vaccines and therapeutics. With the H5N1 ('Bird Flu') virus outbreaks in poultry and U.S. dairy cows, along with one recent human case, we are seeing an increasing interest in our H5N1 'Bird Flu' ferritin nanoparticle human vaccine candidate, developed with ViroVax. Additional animal studies indicate that the vaccine candidate has the potential to generate high neutralizing antibodies for use in cattle. Our Q1 2024 achievements demonstrate our ongoing commitment to enhancing our microbial platforms for diverse applications, and our dedication to improving health for humans and animals, while tackling the challenges of sustainable food production.” Mr. Emalfarb continued, “As we progress into the second quarter, our Company continues to focus on enhancing the Dapibus™ platform, designed specifically for non- pharmaceutical uses in industries such as food, nutrition, health, and other bioproducts. To accomplish this goal, we have honed our business development strategy, focusing on key areas where our technologies can deliver the greatest impact with shorter commercialization timelines. Our strategy includes simultaneously targeting multiple offtakes for a single product in several corresponding business segments and seeking out new opportunities that are in line with our strategy.” Joe Hazelton, Dyadic’s Chief Operating Officer, elaborated, “In addition to operational advancements, we also strengthened our financial position with the issuance of $6.0 million in convertible notes, which will be used to accelerate and exploit our strategic objective of near-term revenue generating products and commercialization opportunities for pharmaceutical and non-pharmaceutical applications. We believe that product opportunities such as recombinant human albumin and alpha-lactalbumin provide Dyadic with multiple monetization opportunities as a licensed product or cell line in pharmaceutical, diagnostic, and food applications. We are confident that our strong position, both financially and scientifically, will enable us to implement our business plans with improved capabilities and resources. We are enthusiastic about our future prospects and remain committed to providing value to our customers and stakeholders.” Recent Company Progress Corporate Events: 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 in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended. The purchasers of the Convertible Notes include 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.On March 28, 2024, the Company announced changes in the leadership roles of the Board and senior management team: the appointment of Mr. Patrick Lucy as Chairman of Board of Directors and promotion of Mr. Joe Hazelton to Chief Operating Officer. Human Health Sector DYAI-100 Phase 1 Clinical Trial DYAI-100, a C1-SARS-CoV-2 recombinant protein RBD vaccine candidate, is the first C1-expressed protein tested in humans. The Phase 1 randomized, double-blind, placebo-controlled trial was designed as a first-in-human trial to assess the clinical safety and antibody response of DYAI-100, produced using the C1 platform and administered as a booster vaccine at two single dose levels in healthy volunteers. Following regulatory clearance from the South African Health Products Regulatory Authority (SAHPRA), the trial was initiated in 1Q 2023, with the last patient visit occurring in 3Q 2023. On November 29, 2023, the Company announced the top-line safety results, indicating that the study has met its primary endpoint that both the low and high dose levels of the vaccine are safe and well tolerated among participants. Additionally, the vaccine has been shown to induce immune responses at both dose levels, suggesting its potential efficacy in generating protective immunity against the target virus. The study has been finalized, and the final Clinical Study Report has been issued, demonstrating that the DYAI-100 vaccine met its primary endpoint of safety and reactogenicity. In April 2024, Dyadic and its development partner ViroVax reported pre-clinical animal testing on a ferritin nanoparticle H5N1 bird flu recombinant protein human vaccine candidate that demonstrated a strong immune response in rabbits. The potential vaccine combines Dyadic’s C1 single step ferritin nanoparticle H5N1 antigen production with a novel adjuvant from ViroVax. Additional animal studies are being carried out that preliminarily show that this H5N1 bird flu vaccine has the potential to be used in humans.Successfully expressed H1N1 influenza antigen in the fully funded research collaboration with the Vaccine and Immunotherapy Center (“VIC”) at Massachusetts General Hospital to express vaccine antigens for influenza A and other infectious diseases, as part of a US $5.88 million award from the Department of Defense (“DoD”).On March 25, 2024, the Company entered a funded research collaboration with a top ten pharmaceutical company to develop a vaccine antigen and a monoclonal antibody produced from the C1 technology.In March 2024, a manuscript of preclinical studies on C1-produced monoclonal antibody in non-human primates and hamsters was published in the prestigious peer-reviewed journal Nature Communications. A non-human primate challenge study completed dosing of a C1-produced COVID-19 monoclonal antibody (mAb) that had previously demonstrated broad neutralization and protection against Omicron (BA.1 and BA.2) and the other earlier variants of concern in hamsters. Preliminary results obtained from the challenge study with the SARS-CoV-2 Delta virus on non-human primates demonstrated potential high protection. This was the first time a C1-produced monoclonal antibody was used in a non-human primate study validating the safety and efficacy of a C1 produced antibody for infectious diseases.On February 28, 2024, the Company’s Dutch subsidiary, Dyadic Nederland BV, entered into a strategic partnership agreement and collaboration with Rabian BV (“Rabian”), a Dutch innovative SME founded by experienced entrepreneurs and vaccine scientists. Awarded by Eurostars for the AVATAR project, a part of the European Partnership on Innovative SMEs (small and medium-sized enterprises), and co-funded by the European Union through Horizon Europe. Rabian will use the total funding of approximately Є1.7 million leveraging its expertise in virology to develop a rabies vaccine using Dyadic’s C1 protein production platform to tackle the challenges posed by rabies, particularly in lower- and middle-income countries. Dyadic is expected to receive an equity stake in Rabian, fully funded research and development costs, and specified product milestones and royalties upon commercialization.On February 21, 2024, the Company announced it has advanced its collaboration with the IIBR and its commercial arm Life Science Research Israel (LSRI), to target emerging disease solutions. This partnership aims to leverage Dyadic’s expertise in microbial platforms for flexible scale protein bioproduction and the IIBR’s antibodies and antigens discovery capabilities to develop and manufacture innovative solutions for addressing emerging diseases and potential bio-threats. Through this collaboration, both parties are working towards the development of effective treatments and vaccines to combat global health challenges with the intention of future commercialization (to date, the framework is non-binding and subject to the execution of a binding agreement to be negotiated by the parties) through collaborative out-licensing initiatives.On February 13, 2024, the Company announced a strategic partnership with Cygnus Technologies®, part of Maravai LifeSciences®, who have developed the C1 Host Cell Protein ELISA Kit for the quality release of products produced using Dyadic’s protein expression platforms. The C1 Host Cell Protein ELISA Kit is now available for purchase on Cygnus Technologies website under Fungal HCP ELISA kits tab.On February 6, 2024, the Company announced it signed a fully funded evaluation agreement including a commercial option with an undisclosed leading global biopharmaceutical company to design and produce recombinant proteins using Dyadic’s C1 microbial protein production platform. Animal Health Sector On March 15, 2024, the Company expanded its collaboration with Phibro Animal Health/Abic Biological Laboratories Ltd to develop vaccines and treatments for companion and livestock animal diseases.C1 produced adjuvanted recombinant ferritin nanoparticle H5N1 “Bird Flu” human vaccine candidate demonstrated a strong immune response in animal studies for potential use in poultry, cattle and other animals. The H5N1 C1 produced bird flu ferritin nanoparticle vaccine elicits high neutralizing antibodies against all three virus isolates (including Texas) of the H5 virus in livestock. Alternative Proteins Sector Dyadic is advancing a pipeline of differentiated product candidates that leverage its microbial protein production platforms, including Dapibus™ which have demonstrated the ability and efficiency to enable the rapid development and large-scale manufacture of proteins at low cost in a wide range of non-pharmaceutical applications and commercial use. Cell Culture Media Products In March 2024, the Company executed a term sheet with a large global albumin manufacturer and distributor to develop and license Dyadic’s recombinant serum albumin. The Company’s animal-free recombinant serum albumin projects were initiated in late 2022 using Dyadic pharmaceutical cell lines for use in potential therapeutic, product development, research, and/or diagnostic human and animal pharmaceutical applications. The Company has completed the initial analysis of its recombinant albumin products and has Certificates of Analysis for recombinant human and bovine albumin that demonstrate comparability to reference standards used in the testing.In March 2024, the Company entered into a co-promotion agreement with Biftek Co. for the promotion of growth media supplement for cell culture.The Company is undergoing a project to produce recombinant transferrin for use in cell culture media for the alternative protein industry.The Company is currently sampling recombinant bovine albumin for application testing as growth media for the cultured meat industry. Non-animal Dairy Products As previously announced, in September 2023, the Company entered into a development and exclusive license agreement to commercialize certain non-animal dairy enzymes used in the production of food products using Dapibus™ and received an upfront payment of $0.6 million in October 2023. The Company believes it has achieved the specified target yield level required for a milestone payment upon verification by its partner, and the development of a second enzyme is progressing as planned.The Company has developed a highly productive strain and is actively sampling recombinant alpha-lactalbumin, a whey protein, and is currently negotiating several development and commercialization agreements.The Company is undergoing a beta-lactoglobulin animal-free recombinant whey protein project, expected to begin sampling in the late third quarter.The Company is undergoing a recombinant lactoferrin project, expected to begin sampling the product in the late second or early third quarter. Bio Industrial Products The Company has developed three enzymes, with plans for two additional enzymes, that have the potential for use in multiple industries, such as dairy, nutrition, biogas, biofuels and biorefining. Several initial targets are under evaluation with interested parties. Financial Highlights Cash Position: As of March 31, 2024, cash, cash equivalents, and the carrying value of investment-grade securities, including accrued interest, were approximately $12.1 million compared to $7.3 million as of December 31, 2023. Revenue: Research and development revenue and license revenue for the three months ended March 31, 2024, decreased to approximately $335,000 compared to $934,000 for the same period a year ago. The decrease in research and development revenue was due to the winding down of several large research collaborations conducted in 2023. For the three months ended March 31, 2024, the Company’s revenue was generated from ten collaborations compared to seven collaborations in the same period a year ago. Cost of Revenue: Cost of research and development revenue for the three months ended March 31, 2024, decreased to approximately $144,000 compared to $727,000 for the same period a year ago. The decrease in cost of research and development revenue was due to the same reasons as for revenue described above. R&D Expenses: Research and development expenses for the three months ended March 31, 2024, decreased by 35.5% to approximately $523,000 compared to $811,000 for the same period a year ago. The decrease reflected the winding down of activities related to the Company’s Phase 1 clinical trial of DYAI-100 COVID-19 vaccine candidate and a decrease in the amount of ongoing internal research projects. G&A Expenses: General and administrative expenses for the three months ended March 31, 2024, increased by 20.9% to approximately $1,789,000 compared to $1,480,000 for the same period a year ago. The increase reflected increases in business development and investor relations expenses of approximately $138,000, audit fees of $99,000, management incentives of $59,000, and other increases of $59,000, offset by decreases in insurance expenses of $29,000 and legal expenses of $17,000. Loss from Operations: Loss from operations for the three months ended March 31, 2024, slightly increased to $2,126,000, compared to $2,050,000 for the same period a year ago. Net Loss: Net loss for the three months ended March 31, 2024, was $2,010,000 or $(0.07) per share compared to $956,000 or $(0.03) per share for the same period a year ago. The increase in net loss was derived from the sale of the Company’s equity interest in Alphazyme LLC for $989,000 in 2023. Conference Call Information:Date: Tuesday, May 14, 2024Time: 5:00 p.m. Eastern TimeDial-in numbers: Toll Free 877-407-0784 International +1-201-689-8560Conference ID: 13743568Webcast link: https://viavid.webcasts.com/starthere.jsp?ei=1650831&tp_key=0f89478e24 An archive of the webcast will be available within 24 hours after completion of the live event and will be accessible on the Investor Relations section of the Company’s website at www.dyadic.com. To access the replay of the webcast, please follow the webcast link above. About Dyadic International, Inc. Dyadic International, Inc. is a biotechnology company focused on the efficient large-scale manufacture of proteins for use in human and animal vaccines and therapeutics, as well as non-pharmaceutical applications including food, nutrition, and wellness. Dyadic’s gene expression and protein production platforms are based on the highly productive and scalable fungus Thermothelomyces heterothallica (formerly Myceliophthora thermophila). Our lead technology, C1-cell protein production platform, is based on an industrially proven microorganism (named C1), which is currently used to speed development, lower production costs, and improve performance of biologic vaccines and drugs at flexible commercial scales for the human and animal health markets. Dyadic has also developed the Dapibus™ filamentous fungal based microbial protein production platform to enable the rapid development and large-scale manufacture of low-cost proteins, metabolites, and other biologic products for use in non-pharmaceutical applications, such as food, nutrition, and wellness. With a passion to enable our partners and collaborators to develop effective preventative and therapeutic treatments in both developed and emerging countries, Dyadic is building an active pipeline by advancing its proprietary microbial platform technologies, including our lead asset DYAI-100 COVID-19 vaccine candidate, as well as other biologic vaccines, antibodies, and other biological products. To learn more about Dyadic and our commitment to helping bring vaccines and other biologic products to market faster, in greater volumes and at lower cost, please visit http://www.dyadic.com. Safe Harbor Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, including those regarding Dyadic International’s expectations, intentions, strategies, and beliefs pertaining to future events or future financial performance, such as the success of our clinical trial and interest in our protein production platforms, our research projects and third-party collaborations, as well as the availability of necessary funding. 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. Forward-looking statements involve many risks, uncertainties or other factors beyond Dyadic’s control. These factors include, but are not limited to, the following: (i) our history of net losses; (ii) market and regulatory acceptance of our microbial protein production platforms and other technologies; (iii) competition, including from alternative technologies; (iv) the results of nonclinical studies and clinical trials; (v) our capital needs; (vi) changes in global economic and financial conditions; (vii) our reliance on information technology; (viii) our dependence on third parties; (ix) government regulations and environmental, social and governance issues; and (x) intellectual property risks. For a more complete description of the risks that could cause our actual results to differ from our current expectations, please see the section entitled “Risk Factors” in Dyadic’s annual reports on Form 10-K and quarterly reports on Form 10-Q filed with the SEC, as such factors may be updated from time to time in Dyadic’s periodic filings with the SEC, which are accessible on the SEC’s website and at www.dyadic.com. All forward-looking statements speak only as of the date made, and except as required by applicable law, Dyadic assumes no obligation to publicly update any such forward-looking statements for any reason after the date of this press release to conform these statements to actual results or to changes in our expectations. Contact:Dyadic International, Inc.Ping W. Rawson, Chief Financial OfficerPhone: 561-743-8333 Email: ir@dyadic.com DYADIC INTERNATIONAL, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended March 31, 2024 2023 Revenues: Research and development revenue$334,617 $933,934 License revenue — 44,118 Total revenue 334,617 978,052 Costs and expenses: Costs of research and development revenue 143,955 726,918 Research and development 522,723 810,566 General and administrative 1,788,594 1,480,040 Foreign currency exchange loss 4,903 11,022 Total costs and expenses 2,460,175 3,028,546 Loss from operations (2,125,558) (2,050,494) Other income (expense): Interest income 87,443 104,731 Gain on sale of Alphazyme 60,977 989,319 Interest expense (21,639) — Interest expense-related party (10,819) — Total other income (expense), net 115,962 1,094,050 Net loss$(2,009,596) $(956,444) Basic and diluted net loss per common share$(0.07) $(0.03) Basic and diluted weighted-average common shares outstanding 28,828,282 28,761,469 See Notes to Consolidated Financial Statements in Item 1 of Dyadic’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 14, 2024. DYADIC INTERNATIONAL, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS March 31, 2024 December 31, 2023 (Unaudited) (Audited)Assets Current assets: Cash and cash equivalents$10,569,814 $6,515,028 Short-term investment securities 1,468,002 748,290 Interest receivable 15,227 10,083 Accounts receivable 246,138 466,159 Prepaid expenses and other current assets 242,131 327,775 Total current assets 12,541,312 8,067,335 Non-current assets: Operating lease right-of-use asset, net 129,519 141,439 Other assets 10,435 10,462 Total assets$12,681,266 $8,219,236 Liabilities and stockholders’ equity Current liabilities: Accounts payable$661,243 $656,445 Accrued expenses 987,973 1,057,164 Deferred research and development obligations 534,018 490,113 Operating lease liability, current portion 49,551 48,059 Accrued interest 19,556 — Accrued interest -related party 9,778 — Total current liabilities 2,262,119 2,251,781 Non-current liabilities: Convertible notes, net of issuance costs 3,884,967 — Convertible notes, net of issuance costs -related party 1,942,484 — Operating lease liability, net of current portion 75,894 88,870 Total liabilities 8,165,464 2,340,651 Commitments and contingencies (Note 5) Stockholders’ equity: 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 - 41,440,316 and 41,064,563, outstanding shares - 29,186,814 and 28,811,061 as of March 31, 2024, and December 31, 2023, respectively 41,441 41,065 Additional paid-in capital 105,691,193 105,044,756 Treasury stock, shares held at cost - 12,253,502 (18,929,915) (18,929,915)Accumulated deficit (82,286,917) (80,277,321)Total stockholders’ equity 4,515,802 5,878,585 Total liabilities and stockholders’ equity$12,681,266 $8,219,236 See Notes to Consolidated Financial Statements in Item 1 of Dyadic’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 14, 2024.

Closeda$6.0millionconvertiblenoteinaprivateplacement,withaconversionpriceof$1.79andnowarrants Reported positive topline data from First-In-Human Phase 1 trial demonstrated clinical safety and antibody response for DYAI-100 a recombinantprotein receptor binding domain (RBD) booster vaccine candidate for protection against COVID-19 infection Entered into several fully funded vaccine and antibody projects covering more than twelve targets since announcingtopline clinical safety datafrom First-In-Human Phase 1 trial Executed a term sheet to utilize our microbial protein production platforms to develop production strains for the production of recombinant serumalbumin initially for diagnostic and cell culture applications AnnouncedstrategicpartnershiptodevelopaffordablerabiesprophylacticsandvaccinesusingC1-cellproteinproductionplatform AdvancedcollaborationwithIsraelInstituteforBiologicalResearch(IIBR)targetingbio-threatsandemergingdiseasesolutions Announced a partnership with Cygnus Technologies to develop and supply a C1 Host Cell Protein ELISA Assay Kit to support batch release testingfor C1-based products ReportedmultiplenewresearchandlicenseagreementswithMassachusettsGeneralHospital,bYoRNA(formRNA),andothers ExpandedcollaborationwithPhibro/Abictodevelopvaccinesandtreatmentsforcompanionandlivestockanimaldiseases Published manuscript of preclinical studies on C1 produced monoclonal antibody in non-human primate and hamsters in prestigious peer-reviewedjournal Nature Communications Cashandinvestmentgradesecuritiesof$13.3m,includingthe$6.0millionconvertiblenotefinancing Changesinboardandmanagementleadershiproleshavebeenreportedinaseparatepressreleasethismorning Financialresultsandbusinessupdateconferencecallscheduledfor5:00pmETtoday JUPITER, Fla., March 28, 2024 (GLOBE NEWSWIRE) -- Dyadic International, Inc. Inc. (“Dyadic”, “we”, “us”, “our”, or the “Company”) (NASDAQ: DYAI), a biotechnology company focused on the efficient large-scale manufacture of proteins for use in human and animal vaccines and therapeutics and for use in non-pharmaceutical applications including food, nutrition, and wellness, today announced its financial results for the year end 2023 and highlighted recent Company progress. “In 2023, Dyadic achieved significant milestones in unlocking the potential of its microbial platforms. One of the highlights was the successful completion of a Phase 1 clinical trial, with positive topline data affirming the safety of Dyadic’s C1 platform in humans,” said Mark Emalfarb, Dyadic’s President and Chief Executive Officer. “We believe this milestone not only establishes the safety of our platform but also lays a solid foundation for C1 technology’s future applications in human and animal vaccines and therapeutics. Additionally, our progress made across pharmaceutical and non-pharmaceutical market segments, including human health, animal health, and alternative proteins, underscores Dyadic’s commitment to innovation and its ability to address diverse areas of need within the biotechnology and food industries. We are grateful for the collaborative efforts of our partners and the dedication of our management team and staff providing invaluable contributions to Dyadic’s success. Dyadic’s achievements in 2023 reflect our commitment to advancing our microbial platforms for various applications and its dedication to improving human and animal health while also addressing the challenges of sustainable food production.” Mr. Emalfarb continued, “As we move forward into 2024, our company remains committed to advancing the Dapibus™ platform, specifically tailored for non- pharmaceutical applications in sectors including food, nutrition, health, and wellness. To achieve this objective, we have refined our business development strategies, concentrating on core areas where our technologies can make the most significant impact in the shortest amount of time. This approach involves targeting multiple core verticals simultaneously and exploring new opportunities that align with our overall strategy.” “In addition to operational advancements, we also strengthened our financial position with the issuance of $6.0 million in convertible notes which will be used to accelerate and exploit our strategic objective of near-term revenue generating products and opportunities for pharmaceutical and non-pharmaceutical applications. We believe that we are well-positioned, both financially and scientifically, to execute our strategic plan with enhanced capabilities and resources. We are excited about the prospects ahead and remain dedicated to delivering value to our customers and stakeholders,” Mr. Emalfarb concluded. Dyadic is committed to empowering its partners and collaborators in the development of effective antigens, antibodies and other therapeutic proteins for the prevention, diagnosis, and treatments worldwide. Through an enhanced global outreach strategy, Dyadic is actively advancing its proprietary microbial platform technology to develop products such as recombinant human and bovine albumin, alongside biologic vaccines, antibodies, and other biopharmaceutical solutions. By building a robust pipeline of opportunities, Dyadic believes it can significantly impact global health, fostering a brighter and healthier future through innovation and strategic collaboration. Recent Company Progress Corporate Events 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 in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended. The purchasers of the Convertible Notes include 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. The Company announced changes in the leadership roles of the Board and senior management team. Details of these changes are included in a separate press release issued this morning, March 28, 2024. DYAI-100 Phase 1 Clinical Trial DYAI-100, a C1-SARS-CoV-2 recombinant protein RBD vaccine candidate, is the first C1-expressed protein tested in humans. The Phase 1 randomized, double-blind, placebo-controlled trial was designed as a first-in-human trial to assess the clinical safety and antibody response of DYAI-100, produced using the C1 platform and administered as a booster vaccine at two single dose levels in healthy volunteers. Following the regulatory clearance from the South African Health Products Regulatory Authority (SAHPRA), the trial was initiated in 1Q 2023 with the last patient visit occurring in 3Q 2023. On November 29, 2023, the Company announced the top-line safety results, indicating that the study has met its primary endpoint that both the low and high dose levels of the vaccine are safe and well tolerated among participants. Additionally, the vaccine has been shown to induce immune responses at both dose levels, suggesting its potential efficacy in generating protective immunity against the target virus. Biopharmaceutical Programs On March 25, 2024, the Company entered into a funded research collaboration with a top ten pharmaceutical company to develop a vaccine antigen and a monoclonal antibody produced from the C1 technology. On March 15, 2024, the Company expanded its collaboration with Phibro Animal Health/Abic Biological Laboratories Ltd to develop vaccines and treatments for companion and livestock animal diseases. In March 2024, a manuscript of preclinical studies on C1 produced monoclonal antibody in non-human primates and hamsters was published in prestigious peer-reviewed journal Nature Communications. A non-human primate challenge study completed dosing of a C1 produced COVID-19 monoclonal antibody (mAb) that had previously demonstrated broad neutralization and protection against Omicron (BA.1 and BA.2) and the other earlier variants of concern in hamsters. Preliminary results obtained from the challenge study with the SARS-CoV-2 Delta virus on non-human primates demonstrated potential high protection. This was the first time a C1-produced monoclonal antibody was used in a non-human primate study validating the safety and efficacy of a C1 produced antibody for infectious diseases. At the NIIMBL conference in February 2024, the Company showcased our project data and research results generated from the NIIMBL Grant received by the Company under the previously announced White House’s American Rescue Plan. On February 28, 2024, the Company’s Dutch subsidiary, Dyadic Nederland BV, entered into a strategic partnership agreement and collaboration with Rabian BV (“Rabian”), a Dutch innovative SME founded by experienced entrepreneurs and vaccine scientists. Awarded by Eurostars for the AVATAR project, a part of the European Partnership on Innovative SMEs, and co-funded by the European Union through Horizon Europe. Rabian will use the total funding of approximately Є1.7 million leveraging its expertise in virology to develop a rabies vaccine using Dyadic’s C1 protein production platform to tackle the challenges posed by rabies, particularly in lower- and middle-income countries. Dyadic is expected to receive an equity stake in Rabian, fully funded research and development costs, and specified product milestones and royalties upon commercialization. On February 21, 2024, the Company announced it has advanced its collaboration with the Israel Institute for Biological Research (IIBR) and its commercial arm Life Science Research Israel (LSRI), to target emerging disease solutions. This partnership aims to leverage Dyadic’s expertise in microbial platforms for flexible scale protein bioproduction and the IIBR’s antibodies and antigens discovery capabilities to develop and manufacture innovative solutions for addressing emerging diseases and potential bio-threats. Through this collaboration, both parties are working towards the development of effective treatments and vaccines to combat global health challenges with the intention of future commercialization (to date, the framework is non-binding and subject to the execution of a binding agreement to be negotiated by the parties) through collaborative out-licensing initiatives. On February 13, 2024, the Company announced a strategic partnership with Cygnus Technologies®, part of Maravai LifeSciences® (Nasdaq: MRVI), which has developed the C1 Host Cell Protein ELISA Kit for the quality release of products produced using Dyadic’s protein expression platforms. On February 6, 2024, the Company announced it has signed a fully funded evaluation agreement including a commercial option with an undisclosed leading global biopharmaceutical company to design and produce recombinant proteins using Dyadic’s C1 microbial protein production platform. On October 25, 2023, the Company announced that it has entered into a new research collaboration with the Vaccine and Immunotherapy Center (“VIC”) at Massachusetts General Hospital to express vaccine antigens for influenza A and other infectious diseases, as part of a US $5.88 million award from the Department of Defense (“DoD”). On September 26, 2023, the Company entered into a development and commercialization agreement with bYoRNA combining bYoRNA’s novel eukaryotic “bio” RNA platform with Dyadic’s industrially proven C1 protein production platform to provide the pharmaceutical industry with a potentially more cost- efficient platform for manufacturing large quantities of lower cost mRNA, enabling access to mRNA vaccines and drugs to a broader global population. Non-pharmaceutical Programs Dyadic is advancing a pipeline of differentiated product candidates that leverage its microbial protein production platforms, including Dapibus™ which have demonstrated the ability and efficiency to enable the rapid development and large-scale manufacture of proteins at low cost in a wide range of non-pharmaceutical applications and commercial use. CellCulture Media Products Recombinant Serum Albumin: In March 2024, the Company executed a term sheet with a large global albumin manufacturer and distributor to develop and license Dyadic’s recombinant serum albumin initially for diagnostic and research-grade purposes. The Company’s animal-free recombinant serum albumin projects were initiated in late 2022 using Dyadic pharmaceutical cell lines for use in potential therapeutic, product development, research, and/or diagnostic human and animal pharmaceutical applications. Animal-free recombinant serum albumin projects were initiated for use in potential non-pharmaceutical applications such as a component of cell culture media in nutrition, health, and food. The Company has completed the initial analysis of its recombinant albumin products and has Certificates of Analysis for recombinant human and bovine albumin that demonstrate comparability to reference standards used in the testing. In March 2024, the Company entered into a co-promotion agreement with Biftek Co. for the promotion of growth media supplement for cell culture. The Company is undergoing a project to produce recombinant transferrin for use in cell culture media for the alternative protein industry, and initial expression in our microbial platform was successful. The Company is currently sampling recombinant bovine albumin for application testing as growth media for the cultured meat industry. Non-animalDairyProducts In September 2023, the Company entered into a development and exclusive license agreement to commercialize certain non-animal dairy enzymes used in the production of food products using Dapibus™ and received an upfront payment of $0.6 million in October 2023. The Company believes it has achieved the specified target yield level required for a milestone payment. The Company has developed a highly productive strain and is actively sampling recombinant alpha-lactalbumin, a whey protein, with interested collaborators. The Company has initiated a beta-lactoglobulin animal-free recombinant whey protein project in early 2024. The Company is undergoing a recombinant lactoferrin project, expected to begin sampling the product in the late second or early third quarter of 2024. The Company has expressed 4 casein proteins and is in active discussions with potential interested collaborators. BioIndustrial Products The Company has developed a number of enzymes that have the potential for use in multiple industries, such as nutrition, biofuels and biorefining. FinancialHighlights CashPosition: As of December 31, 2023, cash, cash equivalents, and the carrying value of investment-grade securities, including accrued interest, were approximately $7.3 million compared to $12.7 million on December 31, 2022. For the year ended December 31, 2023, the Company received a total of approximately $1.3 million in connection with the sale of Alphazyme LLC. On March 8, 2024, the Company raised $6.0 million in a private placement of convertible notes from existing shareholders. Revenue: Total revenue for the year ended December 31, 2023, decreased to approximately $2,899,000 compared to $2,930,000 for the year ended December 31, 2022. The decrease in revenue was due to higher individual contract amounts on certain research funding during 2022. CostofRevenue: Cost of research and development revenue for the year ended December 31, 2023, decreased to approximately $1,976,000 compared to $2,123,000 for the year ended December 31, 2022. The decrease in cost of revenue was due to higher individual contract amounts on certain research funding during 2022. R&DExpenses: Research and development expenses for the year ended December 31, 2023, decreased to approximately $3,297,000 compared to $4,501,000 for the year ended December 31, 2022. The decrease primarily reflected the winding down of activities related to the Company’s Phase 1 clinical trial of DYAI-100 COVID-19 vaccine candidate. G&AExpenses: General and administrative expenses for the year ended December 31, 2023, decreased to approximately $5,817,000 compared to $6,422,000 for the year ended December 31, 2022. The decrease principally reflected a decrease in management incentives of $466,000, business development and investor relations costs of $219,000, and legal expenses of $39,000, partially offset by increases in insurance premiums of $96,000, and other increases of $24,000. InterestIncome: Interest income for the year ended December 31, 2023, increased to approximately $417,000 compared to $180,000 for the year ended December 31, 2022. The increase was primarily due to an increase in interest rates and yield on the Company’s investment-grade securities, which are classified as held-to-maturity. OtherIncome: For the year ended December 31, 2023, the Company had a gain of approximately $1,018,000 from the sale of the Company’s equity interest in Alphazyme, LLC. For the year ended December 31, 2022, the Company received a settlement payment of $250,000 from the termination of a proposed license and collaboration. NetLoss: Net loss for the year ended December 31, 2023, was approximately $6.8 million, or $(0.24) per share, compared to a net loss of $9.7 million, or $(0.34) per share, for the year ended December 31, 2022. ConferenceCallInformation Date: Thursday, March 28, 2024 Time: 5:00 p.m. Eastern Time Dial-in numbers: Toll Free: 877-407-0784 International: 201-689-8560 Conference ID: 13743567 Webcast Link: An archive of the webcast will be available within 24 hours after completion of the live event and will be accessible on the Investor Relations section of the Company’s website at . To access the replay of the webcast, please follow the webcast link above. AboutDyadic International, Inc. Dyadic International, Inc. is a biotechnology company focused on the efficient large-scale manufacture of proteins for use in human and animal vaccines and therapeutics and for use in non-pharmaceutical applications including food, nutrition, and wellness. Dyadic’s gene expression and protein production platforms are based on the highly productive and scalable fungus Thermothelomyces heterothallica (formerlyMyceliophthora thermophila). Our lead technology, C1-cell protein production platform, is based on an industrially proven microorganism (named C1), which is currently used to speed development, lower production costs, and improve performance of biologic vaccines and drugs at flexible commercial scales for the human and animal health markets. Dyadic has also developed the Dapibus™ filamentous fungal based microbial protein production platform to enable the rapid development and large-scale manufacture of low-cost proteins, metabolites, and other biologic products for use in non-pharmaceutical applications, such as food, nutrition, and wellness. With a passion to enable our partners and collaborators to develop effective preventative and therapeutic treatments in both developed and emerging countries, Dyadic is building an active pipeline by advancing its proprietary microbial platform technologies, including our lead asset DYAI-100 COVID-19 vaccine candidate, as well as other biologic vaccines, antibodies, and other biological products. To learn more about Dyadic, please visit . SafeHarborRegardingForward-LookingStatements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, including those regarding Dyadic International’s expectations, intentions, strategies, and beliefs pertaining to future events or future financial performance, such as the success of our clinical trial and interest in our protein production platforms, our research projects and third-party collaborations, as well as the availability of necessary funding. 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. Forward-looking statements involve many risks, uncertainties or other factors beyond Dyadic’s control. These factors include, but are not limited to, the following: (i) our history of net losses; (ii) market and regulatory acceptance of our microbial protein production platforms and other technologies; (iii) competition, including from alternative technologies; (iv) the results of nonclinical studies and clinical trials; (v) our capital needs; (vi) changes in global economic and financial conditions; (vii) our reliance on information technology; (viii) our dependence on third parties; (ix) government regulations and environmental, social and governance issues; and (x) intellectual property risks. For a more complete description of the risks that could cause our actual results to differ from our current expectations, please see the section entitled “Risk Factors” in Dyadic’s annual reports on Form 10-K and quarterly reports on Form 10-Q filed with the SEC, as such factors may be updated from time to time in Dyadic’s periodic filings with the SEC, which are accessible on the SEC’s website and at . All forward-looking statements speak only as of the date made, and except as required by applicable law, Dyadic assumes no obligation to publicly update any such forward-looking statements for any reason after the date of this press release to conform these statements to actual results or to changes in our expectations. Contact: Dyadic International, Inc. Ping Rawson, Chief Financial Officer 561-743-8333 ir@dyadic.com DYADIC INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS Years Ended December 31, 2023 2022 Revenues: Research and development revenue $ 2,545,865 $ 2,683,244 License revenue 352,941 247,059 Total revenue 2,898,806 2,930,303 Costs and expenses: Costs of research and development revenue 1,975,849 2,123,193 Research and development 3,297,266 4,501,365 General and administrative 5,817,013 6,421,505 Foreign currency exchange loss 38,417 49,918 Total costs and expenses 11,128,545 13,095,981 Loss from operations (8,229,739 ) (10,165,678 ) Other income: Interest income 416,686 180,420 Gain on sale of Alphazyme 1,017,592 — Other income — 250,000 Total other income 1,434,278 430,420 Net loss $ (6,795,461 ) $ (9,735,258 ) Basic and diluted net loss per common share $ (0.24 ) $ (0.34 ) Basic and diluted weighted-average common shares outstanding 28,798,833 28,364,482 See Notes to Consolidated Financial Statements in Dyadic’s Annual Report on Form 10-K filed with Securities and Exchange Commission on March 28, 2024. DYADIC INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS Assets December 31, Current assets: 2023 2022 Cash and cash equivalents $ 6,515,028 $ 5,794,272 Short-term investment securities 748,290 6,847,270 Interest receivable 10,083 58,285 Accounts receivable 466,159 330,001 Prepaid expenses and other current assets 327,775 392,236 Total current assets 8,067,335 13,422,064 Non-current assets: Operating lease right-of-use asset, net 141,439 — Investment in Alphazyme — 284,709 Other assets 10,462 6,045 Total assets $ 8,219,236 $ 13,712,818 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 656,445 $ 1,276,313 Accrued expenses 1,057,164 955,081 Deferred research and development obligations 490,113 40,743 Deferred license revenue, current portion — 176,471 Operating lease liability, current portion 48,059 — Total current liabilities 2,251,781 2,448,608 Deferred license revenue, net of current portion — 176,471 Operating lease liability, net of current portion 88,870 — Total liabilities 2,340,651 2,625,079 Commitments and contingencies (Note 5) Stockholders’ equity: 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 – 41,064,563 and 40,816,602, outstanding shares – 28,811,061 and 28,563,100 as of December 31, 2023 and 2022, respectively 41,065 40,817 Additional paid-in capital 105,044,756 103,458,697 Treasury stock, shares held at cost – 12,253,502 (18,929,915 ) (18,929,915 ) Accumulated deficit (80,277,321 ) (73,481,860 ) Total stockholders’ equity 5,878,585 11,087,739 Total liabilities and stockholders’ equity $ 8,219,236 $ 13,712,818 See Notes to Consolidated Financial Statements in Dyadic’s Annual Report on Form 10-K filed with Securities and Exchange Commission on March 28, 2024.

Could you give us an overview of your work? ​ I am the chief innovation officer at Maravai Life Sciences, the parent company to several life science brands, including TriLink BioTechnologies, Alphazyme, and Cygnus Technologies. I direct the research and development focus for the company and lead where we should be going in the future. Altogether, we specialize in nucleic acid products and services, including enzyme development and biologics safety testing. Our work is focused on building holistic partnerships with therapeutic developers, helping them overcome manufacturing challenges to streamline and scale research through clinical trials to commercialization. We mostly support nucleic acid therapeutic developers focused on DNA or RNA but are now expanding into cell and gene therapy applications. The COVID-19 pandemic was a massive inflection point for our work because of the immeasurable impact of the mRNA vaccines. How can we utilize mRNA outside of COVID-19? How should we be extending our reach in different areas? What other RNA molecules should we be prioritizing and incorporating into the therapeutics of the future? These are the types of questions we’re trying to answer through our work – It's an incredibly exciting and rewarding job to do. When did you realize you were interested in science - as a young child/teen/older? ​ As a young child, I was very interested in the medical and science fields which made my educational path from secondary school to graduate school very simple. From the beginning, I was completely fascinated by how science was applied within a medical setting. How could theoretical learning be employed to improve people's lives? What started in my childhood as a pure fascination continued on into my career, where I've been so lucky to be able to push science forward and hopefully make an impact on patient lives. googletag.cmd.push(function () { googletag.display('text-ad1'); }); Could you describe your personal journey bringing us to where you are now? ​ Springing from my passion for science and medicine at a very early age, I decided to study genetics at the University of Glasgow. After finishing my Bachelor's degree, I jumped at the opportunity to complete my PhD in molecular genetics, where I worked with animal models to act as surrogates for a human disease model. Though it was an incredible experience, I felt a pull toward more translational medicine so I could connect with actual patients. Chasing that instinct, I enrolled in a post-doctorate program at the University of California – San Diego, applying my work on animal disease models to human beings. Moving across the world was an overwhelming, but incredibly rewarding experience. What began with a three-year student visa has turned into a 20-year tenure in San Diego. As I neared the end of my postdoc program, I felt I still wasn’t close enough to the clinical applications of my work. When I finished my post-doc program, I began a position as an entry-level bench scientist working on clinical trials for DNA-based systems and medicines at Inovio Pharmaceuticals. I joined when the company only had 15 employees, so I was able to wear a lot of different hats and be extremely involved in clinical development, the regulatory process, clinical application, manufacturing, and the CMC. I definitely wouldn't have had the opportunity to do so if I had gone into a bigger corporate structure. In my 15 years at Inovio, I rose from entry-level scientist to Senior Vice President of Research, saw two products go through phase three clinical trials, and was able to see how our development work at the lab bench directly impacted patients. Reflecting, one of the most rewarding elements of my career was visiting clinical trial sites to speak with doctors and nurses, and then explain our technology to the patients. I give patients so much credit for enrolling in clinical trials – they show such passion, interest, and enthusiasm for therapeutic advancements that likely won’t make a direct difference to their lives but will for patients in the future. After my 15-year tenure, I joined Maravai to lead the research and development team. I saw this move as an exciting challenge to continue leading innovation and research but doing so for a different technology set – RNA rather than DNA. What challenges did you face along the way and what is the most valuable lesson you have learned? What were some key lessons you learned from your experience supporting the global response to the COVID-19 pandemic? ​ I can’t emphasize enough the importance of doing work outside of your comfort zone. In my early days as a bench scientist, I was asked to support clinical development. Despite my lack of experience, rolling up my sleeves and learning on the spot helped expand my capabilities and allowed me to be the leader I am today. When you get an opportunity to learn something that isn't necessarily in your area of knowledge, jump at it! One of the most pivotal learning moments of my career was my dual role in the global response to the COVID-19 pandemic. When the first cases were reported, I and a tour de force of scientists with completely different backgrounds worked together around the clock to create a safe, effective vaccine. In addition to that work, I was later requested to be a spokesperson responsible for communicating the COVID-19 vaccine progress and its science to the masses. My background is in infectious disease, not ​ mass communications – this was completely out of my comfort zone. I spoke at the World Health Organization COVID-19 response meetings to relay clinical development updates and answer any questions. This experience proved how important it is for scientists to clearly communicate 1. what R&D teams are doing, 2. What mechanisms are involved, and 3. why we're doing it in specific ways. The majority of the population understandably doesn’t have 20 years of experience in life sciences. Making sure the advancements within our industry are available and easily interpreted by the wider population is the first step to the global understanding of the importance of science and therapeutic research and development. What is your current work ethos/style? ​ Throughout my career, my work ethos has been rooted in communication. The continuous articulation and emphasis of the vision and value of a company’s work helps those from multifactorial backgrounds collectively push toward the same goal. At TriLink and Maravai, the R&D scientists are clearly aware of the internal product development and advances in the wider field. A crucial aspect of my role is distilling those updates to the majority of the team with less visibility, making sure we understand and leverage this excitement for mRNA advancements beyond COVID-19 vaccines. If your team can believe in the company’s work, they’ll be excited to come to work every day to push these new, exciting medicines forward. What ignites your passion in your current role? ​ Right now, the future use of mRNA ignites my passion. A silver lining of the pandemic was the general public saw the power and potential of mRNA through the success of the COVID-19 vaccination. Now, we are able to expand into other capabilities. The standard of care for cancer treatment has been chemotherapy for a long time. There have been some recent immunotherapy advancements, but many patients will tell you it’s a painful treatment to experience. We are already seeing some impressive results from clinical trials for personalized mRNA cancer vaccines. The data we are seeing could entirely shift the paradigm of future cancer treatment. I’m incredibly excited about the CRISPR approvals at the end of last year in the U.S. and Europe. Before then, there were no treatment options for thousands of monogenic diseases – only symptom management. This approval will open up the doors for the treatment of other devastating diseases such as Huntington's disease, cystic fibrosis, and more. What most excites you about the future of this field? What roadblocks do you foresee? ​ In the next 15 years, medicine will evolve into a more personalized approach. With that said, there are challenges to face in the field of mRNA. For instance, the mRNA COVID-19 vaccine is delivered successfully in the body with a lipid nanoparticle (LNP), but that molecule targets only the liver. There are many diseases for which we want to target the heart, brain, skin, etc. Many companies are working to develop the delivery molecules for those specific areas. Another roadblock is the instability of mRNA as a molecule. During the COVID-19 pandemic, there was a rush to get freezers in all doctor’s offices because the vaccines needed to be kept at a specific temperature. In medical centers and large metropolitan areas, we can have big -80 freezers. However, in a rural clinic or developing nations, accessibility becomes an issue. We need to increase mRNA’s stability, so it can be accessible beyond urban areas and developed countries. Could you share some advice for young women starting to develop an interest in science or wanting to pursue a career like yours? ​ In 2024, women are almost 60% of life science graduates but only 20% of CEOs in life science companies. This lack of women rising to leadership positions is frustrating. As a mother of a young daughter, it's incredible that to this day, it's common that I'm the only woman in the room at a scientific meeting, and certainly the only female executive. I could bend your ear about how many times I've been the only woman in a room, and they’ve mistaken me as somebody who's there to take notes. I try to take it all with a sense of humor – getting angry won’t benefit me – and I make it my goal to prove my worth in that room. I do believe that over time we will see increased diversity within those settings. If you are a young woman in STEM, continue to fill your network with mentors, both men and women, who have been in your shoes and can be sounding boards for your ideas. If I could give advice to women, I would encourage them to pursue a career in STEM if it interests them. I'm quite actively involved in STEM for girls mentoring programs, and I’m humbled to work to ensure that those young women view STEM as a valid career path and that when they enter into the field, they have the support to learn and progress forward to the positions they want.