C1, An Ultra-High Yielding, Game Changing Gene Expression Platform

December 21, 2017

DYADIC INFORMATION

Safe Harbor Regarding Forward-Looking Statements

Certain statements contained in this presentation are forward-looking statements within the meaning of the federal securitieslaws. These forward-looking statements involve risks,uncertainties and other factors that could cause Dyadic’s actualresults, performance or achievements to be materially differentfrom any future results, performance or achievements expressedor implied by such forward-looking statements. Any forward-looking statements speak only as of the date of this presentationand, except as required by law, Dyadic expressly disclaims anyintent or obligation to update or revise any forward-lookingstatements to reflect actual results, any changes in expectationsor any change in events. Factors that could cause results to differmaterially are discussed in Dyadic’s publicly available filings,including information set forth under the caption “Risk Factors” inour December 31, 2016 Annual Report filed with OTC Markets onMarch 24, 2017. New risks and uncertainties arise from time totime, and it is impossible for us to predict these events or howthey may affect us.

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DYADIC INFORMATION

Table of Contents

Section Page

Title 1

Safe Harbor Regarding Forward-Looking Statements 2

Table of Contents 3

Dyadic Overview 4

C1 Production Host 8

C1 For Biologics 11

Glycoengineering 18

Advantages of using C1 for the Development & Production of Biologics and Vaccines 21

Summary 27

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DYADIC INFORMATION

Dyadic is Developing What the Industry Refers to As a “CHO stopper”

CHO stopper? Biogen looks to alternative cell lines for future of bioproduction

The Chinese hamster ovary (CHO) cell line is not the future for biomanufacturing says Biogen, MIT & Gates Foundation

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BioPharma Reporter Bioprocessing survey report, 11/03/2017

“Nearly half the respondents of our second state of the global biomanufacturing survey believe we are too reliant on Chinese Hamster Ovary (CHO) expression systems.”

to further develop C1 into a safe and efficient gene expression system to help speed up the development, lower production costs and improve the performance of biologic vaccines and drugs at flexible commercial scales.

Dyadic’sGoal

DYADIC INFORMATION

Platform TechnologyC1: Fungal Gene

Expression Platformfor use in the Development and

Production of Biologics

HQ: Jupiter, FL

BD&L: London &Budapest

R&D: Finland& Spain

1979 FOUNDED

Value & Differentiation:Decreased

Development TimeLower

Production CostsImproved

Biologic Performance

>20 Patents

Novel engineered cell line (Myceliopthora thermophila)

20+ YEARS EXPERIENCE IN PHARMA / FUNGAL GENE EXPRESSION PLATFORMS

GRAS FDA Certified

500,000LScale Production

>100 g/l Yield &~80% Purity

Hyper Productive Enzyme Expression

Industrial Licensees:DuPont, BASF, Abengoa, CODEXIS, Shell etc.

Dyadic Overview

Industrially Proven

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DYADIC INFORMATION

Dyadic Leadership Team & Financial Overview

Leadership Team Financials

$75MDeal with DuPont for Dyadic’s Industrial Technology Business

>$110MC1 Related License Deals, Milestones & Equity

$51M Cash & Investment Grade Securities (1)

$0Debt

M. Emalfarb Founder, CEO

$44M Market CapOTC Markets Stock Exchange(OTCQX: DYAI)

$19M Share Buyback Completed 2/2017

$5M Add’l Share Buyback Initiated 8/2017

R. Tchelet, PhDVice President, R&D

M. JonesCommercial Officer 28.7M

Common Shares Outstanding (1)

T. DubinskiVice President, CFO

6(1) As of September 30, 2017

Liquidity

Fully Funded to Execute Business Plan

DYADIC INFORMATION

Dyadic Board – Decades of Big Pharma Experience

Board of Directors Experience

Senior Vice President in Pfizer’s US Pharmaceutical Division.

Dr. Bose worked at Pfizer for 34 years and held leadership roles within bioprocess development and clinical manufacturing and is widely recognized as a Key Thought Leader in the biopharmaceutical industry.

Arindam Bose

Mr. Tarnok spent the majority of his career at Pfizer and is a seasoned finance and operational executive with extensive pharmaceutical industry experience.

Currently serves on the Board of the Global Health Council, and Ionetix, Inc. Prior Board service includes Keryx Biopharmaceuticals, Inc., where he also served as Chairman of the Board.

Michael P. TarnokChairman

Vice-President, Biotherapeutics Pharmaceutical Sciences, External Affairs and Biosimilar Strategy

Last Position

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DYADIC INFORMATION

C1 Production Host

Reinventing biological vaccine and drug development & productionDYADIC®

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DYADIC INFORMATION

CHO C1 White Strain 2.0

C1 – The Science

Unique Morphology

High Purity - 80% of target protein secreted

Wide operating conditions for pH and temperature

Shorter Development & Production Cycle

Translates into better growth conditions• Higher yields of secreted protein• Lower viscosity

Greater retention of target secreted protein through downstream processing

Requires only low cost synthetic media No Viruses which eliminates 2 purification

steps typical in CHO• No Low pH viral inactivation• No Virus nanofiltration

At scales ranging from laboratory shake flasks to 20,000l tanks and above

C1 has received GRAS (Generally Recognized as Safe) designation from FDA and is considered fit for human consumption

Develop g/l/d C1 cell lines in 15 weeks From seed flask to fermenter

• Savings of nearly 10 -14 days vs CHO Fermentation Cycle time 4-7 days

• 1/2 to 1/3rd the time of CHO

Temperature

40ºC37ºC

-32ºC25ºC

CHO

3

45ºC-

25ºC

C1

71 14

5 8CHOC1

pH1 7

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DYADIC INFORMATION

• High Protein Expression: • The C1 cell line achieved productivity up to 80 g/l of the target protein/enzyme

Fermentation Profile of Total Protein Production by HC strain vs. Single Proteins Production by LC strain

C1 Fungal Gene Expression Platform: World Class Expression

C1 Production strain = HC strain

C1 White strain = LC strain

LC strain expressing Indigenous enzyme for licensee partner

LC strain expressing heterologous enzyme by licensee partner

(1)

(2)

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DYADIC INFORMATION

C1 for Biologics

Reinventing biological vaccine and drug development & productionDYADIC®

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DYADIC INFORMATION

We have expressed 100% of the mAbs tested in our 3rd party research collaborations Initial unoptimized level of mAbs usually reach 2-5 g/L in 4-7 days fermentation Highest level of unoptimized expressed mAb is 1.22 g/l/d, (Fc-fusion – 1.35 g/l/d) The mAbs are integrated specifically to a “Hot spot” in the genome After the integration the selective marker is being eliminated The mAbs are secreted to the media and are being properly folded

High Yield & Purity of C1 Expressed mAb’s

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DYADIC INFORMATION

A certain Mab for which the ligand was commercially available was produced in CHO (control Mab) and C1 (C1-produed mAb)

The binding properties of the mAbs to the ligand were compared in a Biacore T200 assay

The control mAb and C1-produced mAb showed virtually indistinguishable binding kinetics.

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• The Binding Kinetics of C1 and CHO produced mAbs appear near identitcal

C1 mAb’s: Virtually Indistinguishable Binding Kinetics to CHO

DYADIC INFORMATION

Agglutination test

Influenza strain Expression Bioactive HA

New Caledonia, A (H1N1) Yes Yes

Texas, A (H1N1) Yes Yes

Puerto Rico A (H1N1) Yes Yes

California, A (H1N1) Yes Yes

Florida B Yes Yes

C1, Ability to Express Biologically active HA’s

The Expression of 5 Recombinant HA’s by C1

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DYADIC INFORMATION

830

453

104108

HA - C1

1 3.33 10 30

HI t

iter

agai

nst

Infl

uenz

a vi

rus 1000

100

10

530 30 0

C1Mock1

C1Mock1 PBS

Negative control

μg HA μg HA

HA-C1 Excellent Immunogenic Properties

The full length rHA from A/New Caledonia/20/99 (H1N1) strain showed excellent immunogenicity properties in mice without adjuvant

Excellent Immunogenicity from C1 Expressed HA

Mice study was conducted by Sanofi-Pasteur

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DYADIC INFORMATION

Additional C1 HA Data from Mice Study Conducted by Sanofi-Pasteur

The full length recombinant HA produced in C1 did not induce any negative clinical signs in mice.

No weight loss. No negative clinical signs during the experiment (visual observations taken each day).

The full length of HA/New Caledonia produced in C1 showed excellent immunogenic properties in mice.

C1 can potentially produce levels of 1 g/L of HAs and other antigens in 4 - 7 days fermentation therefore:

In seasonal Influenza Vaccine—total doses distributed = 146M/year Each 0.5 mL dose is formulated to contain: 15 µg of HA for each strain. Thus, 3 X 1000L scale fermentation runs will be able to supply the annual global

HA/strain needs against Influenza of 2,175 g.

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DYADIC INFORMATION

ZAPI Project

ZAPI, is a research and development program sponsored by the EU with the goal ofdeveloping a platform suitable for the rapid development and production of vaccines andprotocols to fast-track registration of developed products to combat epidemic Zoonoticdiseases that have the potential to effect the human population.

GOAL

Three of the initial antigens, each one for a different virus, wasexpressed by C1 and secreted to the medium

To date one of the C1 expressed antigens was tested in a very smallmice test within the ZAPI project. Preliminary results indicated thatthe C1 produced antigen generated an immune response in micethat protected the mice, and did not have negative effects on thehealth of the mice

We have initiated a C1 development program to express Virus likeparticles (VLP) for antigen expressions

Nano-particleExpression molecule

BRUNE KD et al., Bioconjug Chem. 2017

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DYADIC INFORMATION

Glycoengineering

Reinventing biological vaccine and drug development & productionDYADIC®

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DYADIC INFORMATION

Glycoengineering of C1 strain will provide the formation of various glycan structures to evaluate immunogenicity

C1 typical Glycan structure

C1 Glycoengineering

Unlike most fungi and yeasts, C1 does not have ‘high’mannose (branched 30-50 mannose species), but ratherhas ‘oligo’ mannose and hybrid-type structure.

The native C1 glycan pattern is relatively complex withhigh mannose type (Man3-Man9) and hybrid type(Man3HexNac-Man8HexNac) glycan forms

So far, O-glycosylation was not identified in therapeuticproteins expressed in C1 but minor level is still possible

C1 future Glycostructures

Glycoengineering work is being applied to C1strain to create a strain that produce proteinswith defined human glycoforms

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DYADIC INFORMATION

C1 Glycoengineering In Progress

Dyadic’s C1’s glycan structure is moremammalian like than typical yeast

o The native C1 glycan pattern isrelatively complex with highmannose type (Man3-Man9)

o O-glycosylation was not identified intherapeutic proteins expressed in C1

o Less engineering steps needed for C1

The first steps of Glycoengineering C1cells has begun and were successful

No negative effects on cell viability havebeen observed with any of themodifications done

Dyadic C1 Glycan Structure

Typical Yeast Glycan Structure

Man9

Targeted Mammalian Glycoforms

G0 G0F G2 G2F

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DYADIC INFORMATION

Advantages of Using C1 for the Development & Production of Biologics and Vaccines

Reinventing biological vaccine and drug development & productionDYADIC®

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DYADIC INFORMATION

Better:• High Productivity Protein Expression: ~80 g/l• High Purity Protein Secretion (~80%)• Low viscosity• Greater Retention of target secreted protein through downstream

processing• C1 current developed strain can be used as production platform for

non-glycosylated proteins such as Fabs, bi-specifics and new drugs• C1 secreted therapeutic proteins do not require deletion of the O-

glycosylation machinery• Glycoengineering work is being applied to the host production C1 strain to

allow for production of proteins with human defined glycoforms such as mAbs, Fc-fusions and recombinant vaccines

Easier:• Advanced Genetic Tool Box• Site specific integration vs. random integration• Wide operating conditions for pH and temperature• Simple C1 production process allows for production of biologics at various

scales and at different sites

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C1 Advantages for Developing & Producing Biologics

DYADIC INFORMATION

C1 Advantages for Developing & Producing Biologics

Faster:• Develop high yield g/l/d C1 cell lines in 15 weeks

• Fed batch technology – no need for perfusion

• No Viruses eliminates the need for two additional purification steps

• 4-7 days Fermentation time (1/2 to 1/3rd less time than CHO)

• Cell Reproduction rate (2x greater than CHO)

• Initial protein production rate is (~1.5x greater than CHO) and expected to increase further

Lower Production Cost:• Defined, low-cost media based

on glucose

• No Viruses eliminates associated costs

Comparative Manufacturing Cost: C1 vs CHOHumira mAb

CHO - 10,000L tank (3)

Cost

in M

illio

n U

SD

21

*

C1 - 2,000L tank(1)

C1 - 10,000L tank (2)

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DYADIC INFORMATION

C1 Advantages for Vaccine Development & Production

Productivity – C1 is a highly productive strain that can produce rVaccines at very low cost.

• Example: C1 can potentially produce levels of 1 g/L of HAs against seasonable Influenza virus(es) in 4 - 7 days fermentation therefore:

In seasonal Influenza Vaccine—total doses distributed = 146M/year Each 0.5 mL dose is formulated to contain: 15 µg of HA for each strain. Thus, 3 X 1000L scale fermentation runs will be able to supply the annual

global HA/strain needs against Influenza of 2,175 g.

Flexibility– The relative simplicity of the production process of C1 enables the production of rVaccines at various scales and at different sites.

Safety – Mice tests demonstrated that recombinant proteins such as HA produced in C1 did not induce any negative clinical signs in mice.

No weight loss. No negative clinical signs during the experiment (visual observations taken each day).

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DYADIC INFORMATION

Immunogenicity – Antigens produced by C1 demonstrated excellent immunogenicity properties:

• Sanofi Project: The full length rHA from A/New Caledonia/20/99 (H1N1) strain showed excellent immunogenicity properties in mice without adjuvant

• ZAPI Project: C1 produced antigen generated an immune response in mice that protected the mice and did not have negative effects on the health of the mice

Adjuvant effect – Reducing rVaccines risk. Samples prepared by C1 possess Adjuvant properties. Thus, antigen produced by C1 may not require the addition of artificial Adjuvants

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C1 Advantages for Vaccine Development & Production

DYADIC INFORMATION

Proteolytic Activity

High Low

Proteolytic Activity

High Low

0 g/L 20 g/L

Basic Therapeutic Protein Productivity

0 g/L 20 g/L

Basic Therapeutic Protein Productivity

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• Current Production Strain

• Target C1 Production Strain

• Continuing to Optimize Yield, Stability, Glycan Structure & Purity Changing the

cellular regulatory circuit

Libraries of Efficient & Strong

Promoters

Libraries of TF and signal peptides and / or carrier proteins

Libraries of protease deletion

strains

Glycoengineering to form mammalian-like

glycan structures

As Good As C1 Currently Is, We’re Making C1 Better Every Day!

Protein Purity

DYADIC INFORMATION

C1 Benefits: Lower Production Costs, Both CAPEX and OPEX

2,000 liter2 x12,000 liter

C1 can lower CAPEX:• Produce at smaller

scale while dramatically increasing protein yields

C1 can lower OPEX• Smaller facility

footprint and related costs

• Low cost media

Single Use BioreactorStainless Steel Multiuse

CHO C1Annual Protein Demand in g 800,000 800,000 800,000

Tank size in Liters 12,000 2,000 2,000 Productivity g/l 3 10 15 % Yield 65% 75% 75%Batches per year 20 40 40 Tank Output in g 468,000 600,000 900,000 Tanks Needed 2.0 2.0 1.0 % Capacity Utilized 85% 67% 89%

DYADIC INFORMATION

Dyadic is looking for partners in the biopharmaceutical space to exploit the potential of C1. Contact mjones@dyadic.com

Ongoing Internal & Third Party Research Programs:

Optimizing Yield, Stability, Glycan Structure, Other Properties & Purity

Higherprotein yields

Lower CapEx/OpEx

Higher purity & greater protein

recovered

Low Cost Media / No

Viral Inactivation

No negative clinical signs

in mice studies

Shorter development & production

cycles

Summary

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R&D Collaborations Licensing Arrangements

Other Commercial Opportunities

C1 Advantages

THANK YOU!

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