DYADIC INTERNATIONAL INC Commitments Disclosure

Note 4: Commitments and Contingencies

 

Leases

 

Jupiter Florida Headquarters

 

The Company leases approximately 1,719 square feet of office space for its headquarters located at 1044 N US 1, Jupiter, Florida. The lease commenced on September 1, 2023 and expires on August 31, 2026, with an option to extend for two successive one-year terms. The annual base rent is approximately $59,000, excluding common area maintenance expenses.

 

The Netherlands Office

 

The Company maintains a small satellite office in Wageningen, The Netherlands, where it occupies flexible office space with an annual rental rate of approximately $5,000. The lease expires on January 31, 2027, and thereafter, the Company will reassess its office space needs to align with the future operations of the Company.

 

As of December 31, 2025, the future minimum annual lease payments under the Company’s operating leases total $36,000 for 2026. There are no future minimum annual lease payments after 2026.

 

Purchase Obligations

 

Purchase obligations are primarily related to our contracts with the Company’s contract research organizations to provide certain research services. The contracts set forth the Company’s minimum purchase requirements that are subject to adjustments based on certain performance conditions.

 

As of December 31, 2025, the commitments related to agreements to purchase certain services in the ordinary course of business are below. All current contracts expire in or before 2027.

 

 Schedule of Purchase Obligation

2026		$	2,007,459
2027			369,580
2028			—
Total		$	2,377,039

 

 

Legal Proceedings

 

From time to time, the Company is subject to legal proceedings, asserted claims and investigations in the ordinary course of business, including commercial claims, employment and other matters, which management considers immaterial, individually and in the aggregate. The Company is not currently involved in any litigation that it believes could have a materially adverse effect in our financial condition or results of operations. The Company makes a provision for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The requirement for these provisions is reviewed at least quarterly and adjusted to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. Litigation is inherently unpredictable and costly. Protracted litigation and/or an unfavorable resolution of one or more of proceedings, claims or investigations against the Company could have a material adverse effect on the Company’s consolidated financial position, cash flows or results of operations.