Note 7 - Subsequent Events

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Subsequent Events [Text Block]

Note 7:    Subsequent Events

Management continues to actively monitor the COVID-19 pandemic and its development, and the possible effects on the Company’s financial condition, liquidity, operations, vendors, industry, and workforce. 

For purpose of disclosure in the consolidated financial statements, the Company has evaluated subsequent events through  May 12, 2022, the date the consolidated financial statements were available to be issued. Except as discussed below, management is not aware of any material events that have occurred subsequent to the balance sheet date that would require adjustment to, or disclosure in the accompanying financial statements.

On May 10, 2022, Dyadic International (USA), Inc., a subsidiary of Dyadic International, Inc., entered into a Joint Development Agreement (the "JDA Agreement”) with Leprino Foods Company (“LFC”), effective May 12, 2022. Under the terms and conditions of the JDA Agreement, Dyadic and LFC will develop and manufacture a number of animal free ingredient products using Dyadic’s biotechnologies.

● The research project will be fully funded by LFC up to €3.6 million euros.

● Dyadic to develop its proprietary production cell lines for the manufacture of animal free ingredient product candidates.

● Dyadic will receive certain defined “Success Fees”, upon reaching certain productivity and activity levels and milestones at different stages of the collaboration.

● Dyadic will receive a “Commercialization Fee” of low eight figures upon commercialization, and a royalty payment of low single digits based on commercial sales.