Dyadic International, Inc.

Good evening and welcome to Dyadic International's Q2 2025 conference call. Currently, all participants are in listen-only mode. Following management's prepared remarks, there will be a brief question and answer session. As a reminder, this conference call is being recorded today, August 13, 2025. I would now like to turn the call over to Ms. Ping Rawson, Dyadic's Chief Financial Officer. Please go ahead.

Thank you. Good evening and welcome everyone to Dyadic International's Q2 2025 conference call. I hope you have had the opportunity to review Dyadic's press releases announcing financial results for the quarter ended June 30, 2025. You may access our release and form 10Q under the investor section of the company's website at dyadic.com. On today's call, our President and Chief Operating Officer, Joe Hazelton, will give a review of our second quarter 2025 business and corporate highlights and provide a commentary on the strategic direction of the business. I will follow with the review of our financial results in more detail, and we will be joined by our CEO, Mark Emelfarb, for a brief question and answer session. At this time, I would like to inform you that certain commentary made in this conference call may be considered poor-looking statements, which involve risks and uncertainties and other factors that could cause dietics' actual results, performance, scientific or otherwise, or achievement to be materially different from those expressed or implied by these poor-looking statements. Dietics expressly disclaims any duty to provide updates to its forward-looking statements, whether because of new information, future events, or otherwise. Participants are directed to the risk factors set forth in DIADC's reports filed with the SEC. It is now my pleasure to pass the call to our President and COO, Joe Hazelton. Joe?

Thanks, Ping, and thanks, everyone, for joining us today. Since I first joined the company in 2022, we've moved from being a platform-focused organization with deep science but limited commercial traction to one with a clear, execution-driven strategy. Over the past three years, we've reshaped our leadership team, rebranded our platforms, and realigned our priorities towards high-growth, non-therapeutic markets where we can generate sustainable revenue more predictably and at scale. With our precision-engineered fungal expression platforms, C1 and Dapabis, we can produce high-yield, animal-free recombinant proteins at large scale and lower costs across life sciences, food and nutrition, and bioindustrial applications. This is no longer just a platform story. It's a product story. We are now at the commercial inflection point, and Dyatic is built to compete and win in these markets. The second quarter of 2025 underscored the company's commitment to the new strategy. We've completed our leadership and operational transformation from a technology-focused R&D company to a market-facing, revenue-driven biotechnology business. On August 1st, we introduced our new name, Dyadic Applied BioSolutions, that reflects our sharpened mission of delivering applied biotechnology solutions to meet the growing global demand for non-animal-derived, high-value proteins and enzymes. Our proprietary platforms provide the foundation for our business. C1 was originally developed for large-scale industrial enzyme production, and over the years, we've re-engineered it into a highly versatile, CGMP-compatible protein production platform. To date, it's demonstrated its ability to produce pharmaceutically relevant, high-value proteins at exceptional yields and low cost. It is fully scalable, delivering the quality and consistency needed for applications in cell culture media, molecular diagnostics, and other life science markets. Dapabis has been purpose-built for the food, nutrition, and industrial sectors. It has been optimized to produce functional proteins like alpha-lactoalbumin, human lactoferrin, and non-animal dairy enzymes, as well as bio-industrial enzyme solutions. This optimization allows us to meet the specific performance and regulatory needs of these markets while maintaining competitive economics. Both platforms share advantages over traditional production systems, They enable faster development timelines, higher production yields, lower manufacturing costs, and completely animal-free processes. Together, they give us the ability to tailor protein production to multiple verticals efficiently, reliably, and at commercial scale, helping us address the growing global demand for sustainable, precision-engineered proteins that power progress. We recently strengthened our balance sheet by completing a $5.3 million equity raise on August 1st. This provides the resources to fund late-stage product development, scale-up, and multiple upcoming product launches. With this stronger financial foundation in place, we're now turning our attention to executing our strategic priorities across our core business segments of life sciences, food nutrition, and bioindustrial. Our strategy focuses on high-demand, non-therapeutic markets where our platforms enable rapid, cost-effective, and scalable protein production, supporting products that generate recurring revenue and long-term value. In life sciences, we're advancing several high-value programs to deliver scalable, animal-free solutions for cell culture media and molecular biology applications. These solutions support critical industries such as the biopharmaceutical manufacturing, cell and gene therapy, regenerative medicine, and cultivated meat production, where highly consistent animal-free components are essential to ensure safety, regulatory compliance, and reproducible performance. We're focused on commercializing albumin, transferrin, and fibroblast growth factors, or FGFs, three of the most important functional proteins in cell culture media. Albumin helps stabilize and transport nutrients, transferrin delivers ions for healthy cell growth, and growth factors trigger cell expansion. Producing these proteins at scale with consistent quality is essential but can be costly. Our protein production platforms address this by enabling high-yield, low-cost animal-free production, helping customers lower costs and reduce reliance on animal-derived components. In partnership with ProLiant Health and Biologicals, we remain on track to launch Recombinant Human Albumin in 2025. We've already received $1 million in milestone payments and anticipate an additional $500,000 milestone in the third quarter related to productivity improvements. along with future royalties from commercial sales. Our animal-free recombinant transferant has demonstrated performance equivalent to leading reference standards in cell proliferation testing, with sampling to potential partners and validation underway for diagnostic and research use. Likewise, our recombinant FGFs have shown comparable performance to market references in supporting animal muscle cell growth, and we're actively sampling these products into cell culture, diagnostics, and research markets. Beyond cell culture media, we're also targeting the global DNA and RNA molecular biology reagent market. This market is expected to see sustained growth as demand increases for cell and gene therapy, molecular diagnostics, and next-generation sequencing. High-purity, animal-free enzymes are essential to these applications, and supply chain reliability is critical for customers. Our lead product in this area is RNA-free DNase I. a key reagent used in biopharmaceutical manufacturing, gene therapy production, and molecular diagnostic workflows to remove DNA contamination without degrading RNA. We have successfully scaled up production at our European CDMO partner with validation completed and research-grade manufacturing underway. Sampling is in progress and we're in active discussions with potential commercial partners. In food and nutrition, we're targeting a rapidly expanding global market for sustainable, functional, and animal-free proteins, a high-growth category as consumer preferences, regulatory shifts, and supply chain pressures push companies towards next-generation ingredients. This includes specialized nutrition markets such as infant formula, medical nutrition, and wellness products, where the demand for functional recombinant proteins with high purity and consistent quality is especially strong. A recombinant alpha-lactalbumin is a prime example. It's a key whey protein in human and bovine milk that provides both nutritional and functional benefits, including essential amino acids and the ability to improve texture, solubility, and stability in formulations. Producing alpha-lactalbumin without animals allows manufacturers to avoid dairy supply constraints, reduce their environmental footprint, and reach consumers seeking sustainable or allergen-free alternatives. We've developed several production strains for alpha-lactalbumin for both the food and research markets and are actively sampling with potential partners in the food and nutrition segment, and we're assessing manufacturing options for research use with initial revenues expected in 2026. Human lactoferrin is another high-value protein in our portfolio. Known for its antimicrobial, anti-inflammatory, and immune-supportive properties, it is used in premium nutrition products, dietary supplements, and functional foods. We're currently exploring potential partnership opportunities in the precision fermentation segment for food and nutrition while we evaluate the potential for research use. Additionally, non-animal dairy enzymes are vital to improving processing efficiency yield and product quality in dairy manufacturing. Producing these enzymes recombinantly with our platforms allows for better cost control, enhanced functionality, and a fully animal-free supply chain. a growing requirement for both plant-based and hybrid dairy products. In our partnership with Enzymes, we've received a $250,000 milestone in the second quarter for productivity gains in this enzyme program, with the first product launch targeted for late 2025 and additional enzyme candidates progressing under the existing license. In the bioindustrial segment, we're helping companies address some of the largest and most persistent challenges in industrial biotechnology, such as reducing feedstock costs improving process yields, and replacing petrochemical or animal-based inputs with sustainable bio-based alternatives. Our Anthrezyme product, developed in partnership with Firmbox Bio, is a great example of how our technology delivers value in the bioindustrial segment. Anthrezyme is an enzyme cocktail that converts pre-chated agricultural residues into fermentable sugars more efficiently, enabling lower-cost biofuel production and other downstream uses. We've achieved high yields at lower cost, making large-scale deployment more commercially viable. Following Fernbox's delivery on its initial purchase order, we're actively sampling with additional prospective customers. We're engaged with companies in the biomass processing, biofuels, and other industrial markets, both to expand the adoption of N3Zyme and to advance our pulp and paper enzyme programs. We're developing tailored end-on-end cocktails for pulp and paper applications to improve fiber processing efficiency, reduce chemical usage, and lower energy requirements as well for the biogas industry to increase methane yields from organic waste. We're actively engaged in sampling companies in these segments and anticipate seeing revenues from our bio-industrial efforts in 2026. While our core focus is now on high-value, non-therapeutic proteins with shorter paths to revenue, We continue to advance a select set of legacy vaccine and therapeutic R&D programs through fully funded partner-led collaborations. These initiatives, supported by world-class organizations such as the Gates Foundation, CEPI, and Foundation Biotechnopolo de Siena, extend the reach of our C1 platform into areas like monoclonal antibodies, virus-like particles, and other complex biologics. As part of our $3 million grant from the Gates Foundation, we're developing low-cost monoclonal antibodies for malaria and RSV, two diseases that continue to place a heavy burden on global health. We achieved key milestones in this program, triggering a $1.5 million installment in the second quarter. Through CEPI and Foundation Biotechnopola de Siena, we're participating in a project valued at up to $2.4 million aimed at advancing recombinant protein vaccine development. Similarly, the European Vaccines Hub, a 170 million euro EU-backed initiative, is evaluating our C1 technology for its potential to accelerate and lower the cost of vaccine and antibody production. We're also working with UVaxBio under a CEPI award to develop a MERS vaccine candidate and to further assess C1's ability to enable rapid, cost-effective manufacturing. In each of these programs, our role is clear. bring the speed, scale, and cost efficiency of our protein production platforms to partners, tackling some of the most pressing health challenges worldwide, while we remain laser-focused on delivering commercial products in the high-value life sciences, food, and bioindustrial markets. As we move forward, Dyadic remains deeply committed to delivering sustainable value to our shareholders and partners with a growing pipeline, a strong network of collaborators, and platforms built for efficiency and scalability. we're well positioned to lead in the global production of non-animal-derived proteins and enzymes across our core business verticals, meeting the demands of today and shaping the solutions of tomorrow. With that, I'll now turn the call over to our Chief Financial Officer, Ping Rawson, who will walk us through our second quarter financial results.