Dyadic International (NASDAQ: DYAI), operating as Dyadic Applied BioSolutions, reported a net loss of $2,123,884, or $0.06 per share, for the second quarter ended June 30, 2026, compared with a net loss of $1,793,774, or $0.06 per share, for the same period a year earlier, according to a company press release.

Total revenue for the quarter was $961,138, a decrease of $5,492, or 0.6%, from $966,630 in the second quarter of 2025. Grant revenue rose to $837,252 from $503,181, while research and development revenue fell to $123,886 from $213,449. No license or milestone revenue was recorded in the quarter, compared with $250,000 in the prior-year period.

Total cost of revenue increased 60.4% to $984,165, driven largely by higher costs tied to activities under CEPI and Gates Foundation grants. General and administrative expenses rose 17.6% to $1,689,863, reflecting higher rebranding, business development, and legal costs. Research and development expenses fell 47.2% to $332,621, due to a reduction in internal research initiatives. Loss from operations widened to $2,054,204 from $1,729,068.

As of June 30, 2026, cash, cash equivalents, restricted cash, and investment securities totaled $4,794,798, down from $8,587,289 as of December 31, 2025. The company noted in its filing that substantial doubt exists about its ability to continue as a going concern for the 12 months following June 30, 2026.

During and after the quarter, Dyadic reported product shipments of six recombinant protein products, initial pilot sales of recombinant transferrin and growth factors for cultivated-meat applications, and the start of shipments to IBT Bioservices under an OEM distribution agreement. Partner Proliant Health & Biologicals began commercializing Albufree DX recombinant human albumin, and Inzymes confirmed initial commercial sales of non-animal bovine chymosin.