Financial Performance - Total current assets decreased from 35,639,238asofDecember31,2019,to32,819,441 as of March 31, 2020, a decline of approximately 8.1%[13] - Research and development revenue for the three months ended March 31, 2020, was 315,372,downfrom402,527 for the same period in 2019, representing a decrease of about 21.6%[15] - Total costs and expenses decreased from 2,843,847inQ12019to2,697,894 in Q1 2020, a reduction of approximately 5.1%[15] - The net loss for the three months ended March 31, 2020, was 2,214,139,comparedtoanetlossof2,175,258 for the same period in 2019, indicating a slight increase in loss of about 1.8%[15] - Cash and cash equivalents at the end of the period were 4,696,831,adecreasefrom4,823,544 at the beginning of the period, reflecting a decline of approximately 2.6%[21] - The company reported a basic and diluted net loss per common share of 0.08forboththethreemonthsendedMarch31,2020,andMarch31,2019[15]−Totalstockholders′equitydecreasedfrom35,864,471 as of December 31, 2019, to 34,252,271asofMarch31,2020,adeclineofapproximately4.5315,000, a decrease of approximately 36.5% compared to 496,000forthesameperiodin2019[40]−TheCompanyhadthreecustomersoutsideoftheUnitedStatesthataccountedforapproximately58.0183,000 of total revenue for the three months ended March 31, 2020[41] - As of March 31, 2020, accounts receivable totaled 518,601,adecreasefrom558,530 as of December 31, 2019[50] - The Company had cash and cash equivalents sufficient to fund operations for at least the next twelve months, but may seek additional funding if necessary[33] - The Company recognized revenue based on a cost-based input method, reflecting actual costs incurred relative to budgeted costs[57] - The allowance for doubtful accounts was zero as of March 31, 2020, indicating that substantially all accounts receivable were current[49] - Research and development costs for the three months ended March 31, 2020, totaled 755,453,comparedto1,081,843 for the same period in 2019, reflecting a decrease of approximately 30%[66] - General and administrative expenses rose by 15.8% to approximately 1,653,000comparedto1,428,000 for the same period last year, driven by increases in insurance and outside service costs[185] - Interest income decreased by 37.1% to approximately 168,000comparedto267,000 for the same period in 2019, attributed to lower interest rates on investment grade securities[186] - Net cash used in operating activities for the three months ended March 31, 2020, was approximately 2.0million,primarilyduetothenetlossandchangesinoperatingassetsandliabilities[191]ResearchandDevelopment−ThecompanyaimstoenhanceitsproprietaryC1technologyforthebiopharmaceuticalindustry,focusingonthedevelopmentofbiologicvaccinesanddrugs[27]−Dyadichasretainedco−exclusiverightstotheC1technologyforhumanandanimalpharmaceuticalapplicationsfollowingthesaleofitsindustrialtechnologybusinesstoDuPont[26]−Thecompanyistargetingthedevelopmentofinnovativevaccines,drugs,biosimilars,andbiobettersusingitsC1technology[27]−TheCompanyhasnopharmaceuticalproductsapprovedforsaleandgeneratesrevenuesolelyfromresearchcollaborationsandgovernmentgrants[55]−TheCompanyhasestablishedadeferredrevenuefromlicensingagreementsforupfrontfeesreceivedpriortotechnologytransfer[63]−TheCompanyhasnotdisclosedthevalueofunsatisfiedperformanceobligationsforcontractswithanoriginalexpectedlengthofoneyearorless[64]−DyadicenteredintoastrategicresearchcollaborationwithBDI,committingEUR€1millionforthedevelopmentofC1basedproductcandidates[94]−BDIisobligatedtospendaminimumofEUR€936,000overtwoyearsontheresearchprojectundertheRSA[94]−ThecompanyextendeditsresearchcontractwithVTTforatotalofEUR€2.52millionoverthreeyearstodeveloptheC1fungalexpressionsystem[113]−AnadditionalEUR€690,000wasaddedtotheVTTcontracttoreinforceglycoengineeringwork,withfurtherexpansionofEUR€700,000announcedonMarch23,2020[113]−DyadichasenteredintoafundedcollaborationwithatopfouranimalhealthcompanyforafeasibilitystudyonproducingtwoproteinsusingtheC1platform,withthreeofthetopfouranimalhealthcompaniescurrentlyfundingresearchprograms[140]−AnewfeasibilitystudyhasbeeninitiatedwiththeUniversityofOslofocusedoninfluenzavaccinedevelopment[142]−ThecollaborationwiththeIsraelInstituteforBiologicalResearchhasexpandedtoexplorethepotentialofC1forexpressinggenesequencesintorVaccinecandidatesandmonoclonalantibodiestocombatCOVID−19[143]−Dyadic′sC1platformisbeingutilizedforvaccinecandidatesdevelopedbyUfovaxandscientistsfromtheEUZAPIinitiative[144]COVID−19Impact−TheCompanyisactivelypursuingCOVID−19relatedvaccineandantibodyopportunities,collaboratingwithvariousresearchinstitutions[32]−TheCompanyiscompetingwithmoreexperiencedcompaniesforgrantsorfundingrelatedtoitsCOVID−19initiatives,withnoassuranceofsuccess[32]−TheongoingCOVID−19pandemichassignificantlyimpactedbusinessoperations,potentiallyaffectingresearchprojectsandfinancialconditions[206]−TheCompanyiscurrentlyexploringseveralCOVID−19relatedvaccineandantibodyopportunities[209]−ThereisnoassurancethattheC1technologywillsuccessfullyproduceavaccineorantibodythatentersclinicaltrials[209]−TheCompanyhasnotsecuredanygrantsorfundingfromitsproposalsrelatedtoCOVID−19[209]−Thereisuncertaintyregardingtheabilitytoobtaingovernmentalsafetyandregulatoryapprovalsforanyproductsdeveloped[209]StockandEquity−AsofMarch31,2020,thecompanyhad4,663,390stockoptionsoutstanding,withaweightedaverageexercisepriceof2.44 and an aggregate intrinsic value of 13,017,190[116]−Totalnon−cashstockoptioncompensationexpenseforthethreemonthsendedMarch31,2020,was426,939, compared to 309,563forthesameperiodin2019,reflectinganincreaseofapproximately37.91.78 per share during the three months ended March 31, 2020[127] - The company recognized share-based compensation expenses of 380,251ingeneralandadministrativeexpensesand46,688 in research and development expenses for the three months ended March 31, 2020[126] - The company has retained co-exclusive rights to the C1 technology for human and animal pharmaceutical applications after the DuPont Transaction, which was valued at 75million[136]−Dyadicwillreceivea209.6 million, with a 100% valuation allowance established due to operating losses[75] - The Company reported cash and cash equivalents of 4,696,831asofMarch31,2020,withtotalinvestmentsamountingto33,673,423[86] - The company does not consider any of its investments to be other-than-temporarily impaired as of March 31, 2020[90] - As of March 31, 2020, the company held 12,253,502 shares of common stock in treasury, at a cost of approximately 18.9million[129]−TheexpectedstockpricevolatilityforoptionsgrantedduringthethreemonthsendedMarch31,2020,rangedfrom39.940.5 million in 2020 pursuant to the CARES Act[74]