Dyadic International Inc Liquidation Value

DYADIC INTERNATIONAL INC (DYAI) presents a materially negative liquidation posture as of March 31, 2026. The TAG_CONTEXT list is empty, meaning this filer emitted no XBRL-tagged balance sheet values in the structured data feed available for this analysis. All quantitative figures referenced below are drawn from the narrative filing body.

From the MD&A and notes, total cash, cash equivalents, restricted cash, and investment securities including accrued interest were approximately $6.6 million at March 31, 2026, down from $8.6 million at December 31, 2025. Unrestricted cash and cash equivalents plus restricted cash were approximately $5.2 million; investment securities carried at approximately $1.5 million. Restricted cash of $908,459 is tied to the Gates Foundation grant and is subject to return obligations upon project termination, materially limiting its free-liquidity value under a wind-down scenario.

On the liability side, the principal debt obligation is $5.09 million face value in 8% Senior Secured Convertible Promissory Notes ($2.09M related-party, $3.0M third-party), maturing December 31, 2027 and secured by a first-priority lien on substantially all assets of the company and its subsidiary Dyadic International (USA), Inc. In liquidation, noteholders would claim against essentially all assets before equity. Deferred research and development obligations of approximately $1.06 million (Gates Foundation unexpended grant funds) represent a contingent return liability. The company also carries operating lease right-of-use assets and corresponding liabilities, which are disclosed as the primary long-term asset category but are not separately tagged in XBRL.

Applying standard liquidation haircuts: cash and unrestricted equivalents (~$4.3M at 100%), AR from CEPI grant ($695K at 90-95%), held-to-maturity investment securities (~$1.5M at approximately par given investment-grade short-duration holdings), offset against $5.09M in convertible notes at face plus accrued interest ($101.8K), deferred R&D obligations ($1.06M), and other accrued liabilities produces a recovery to equity that is effectively zero or negative before lease obligations and operating payables. The MFFAIS-reported latest liquidation values confirm this: CLV of approximately $900K, LLV and OLV of approximately $1.99M, both well below the convertible note face value alone.

Additional structural risks relevant to liquidation: (1) The company is non-compliant with Nasdaq minimum bid price ($1.00) and continued listing standards (shareholders' equity minimum of $2.5M), with compliance deadlines of June 17 and September 23, 2026 respectively. Delisting would further impair any equity recovery. (2) Net operating cash burn was approximately $2.0M in Q1 2026, consistent with a run rate that depletes the $6.6M liquidity position within approximately 12 months absent additional capital. (3) All revenue remains grant- and collaboration-sourced; no product sales revenue had been recognized as of March 31, 2026. (4) The company has not separately XBRL-tagged its balance sheet in this filing's TAG_CONTEXT, which prevents line-item quantification of PP&E, intangibles, operating lease ROU assets, total current liabilities, and accrued expenses in the structured data. Filing discusses all of these in MD&A and notes but they are absent from the XBRL tag set provided.