Dyadic International Gets Nasdaq Deficiency Notices on Bid Price and Market Value
Dyadic International received two Nasdaq notices on September 25, 2026, saying its stock traded below $1 for 30 straight business days and its market value of listed securities fell below $35 million.
What happened
Dyadic International, Inc., a Delaware company based in Jupiter, Florida, disclosed in a Form 8-K filed September 25, 2026 that it received two separate deficiency notices from the Nasdaq Listing Qualifications staff that same day.
The first notice says that for the prior 30 consecutive business days, Dyadic's securities did not maintain a minimum bid price of at least $1 per share, the level required by Nasdaq Listing Rule 5550(a)(2). The second notice says that over the same 30-business-day stretch, the company's minimum Market Value of Listed Securities (MVLS) fell below the $35 million required by Nasdaq Listing Rule 5550(b)(2).
According to the filing, neither notice has any immediate effect on the listing of Dyadic's common stock on the Nasdaq Capital Market, where it trades under the symbol DYAI. Dyadic's shares closed at $0.42 on the day of the filing, down 4.55% from the previous close of $0.44, according to the price data.
The company says it intends to monitor its bid price and MVLS and plans to evaluate options to regain compliance. The filing does not say which specific remedy Dyadic will pursue.
The deadlines and what happens next
For both deficiencies, Nasdaq rules give Dyadic 180 calendar days, or until March 24, 2027, to regain compliance.
To cure the bid price deficiency, the company's stock must close at $1.00 or more for a minimum of 10 consecutive business days before that date. To cure the MVLS deficiency, its MVLS must close at $35 million or more for a minimum of 10 consecutive business days before the same date. The filing notes that Nasdaq staff has discretion to extend these periods under Rule 5810(c)(3)(H).
If Dyadic has not regained compliance by March 24, 2027, the filing says it may be eligible for a second 180-day period, but only if it then meets the applicable market value of publicly held shares requirement and all other initial-listing standards for the Nasdaq Capital Market except the bid price requirement, and if it gives Nasdaq written notice that it intends to cure the deficiency, by effecting a reverse stock split if necessary.
If the staff concludes the company will not be able to cure the deficiency, or if Dyadic is not eligible for the second period and has not regained compliance by the deadline, Nasdaq will provide written notice that the common stock is subject to delisting. Dyadic could then appeal that determination to a hearings panel, though the filing states there can be no assurance such an appeal would succeed.
What this means
A Form 8-K is the report a US public company must file with the Securities and Exchange Commission when a significant event occurs between its regular quarterly and annual reports. Item 3.01, which Dyadic checked here, is the specific item reserved for a notice of delisting or a failure to satisfy a continued listing rule. Filing it satisfies the company's obligation to tell investors promptly.
The two Nasdaq rules at issue measure different things. The bid price test, Rule 5550(a)(2), looks only at the price of a single share and requires it to stay at $1 or above. The MVLS test, Rule 5550(b)(2), looks at the total market value of the company's listed shares, which is roughly the share price multiplied by the number of shares outstanding, and requires at least $35 million. A company can fail one without the other, and Dyadic failed both at once, which the filing attributes to a 30-business-day run of sub-$1 prices.
The minimum bid price requirement exists because exchanges want to avoid listings whose shares trade in fractions of a dollar, where spreads are wide and trading is thin. A common way for a company to fix a bid price deficiency is a reverse stock split, which combines several existing shares into one and raises the per-share price proportionally. The filing mentions a reverse stock split only as a possible step in a second compliance period, not as a decision Dyadic has made.
Nothing in the filing states why Dyadic's share price or market value declined, and this article does not speculate about the cause. The notices are compliance warnings, not delisting actions; the shares continue to trade on the Nasdaq Capital Market while the clock runs. The company describes itself in the filing as engaged in microbial protein production platforms and related research and collaborations. Whether it regains compliance, and how, depends on future prices the filing does not predict.
Sources
- 8-K filed 2026-09-25
- Daily price history
Information summarized by AI from the sources listed above. May contain errors — informational only, not investment advice.