Dyadic Prospectus Supplement No. 1 to Prospectus dated 8/12/2005

Filed Pursuant to

Rule 424(b)(3) and (c)

Registration No. 333-121738

PROSPECTUS SUPPLEMENT NO. 1 DATED JULY 6, 2006

PROSPECTUS DATED AUGUST 12, 2005

DYADIC INTERNATIONAL, INC.

28,369,878 Shares of Common Stock

This Prospectus Supplement No. 1 (the “Prospectus Supplement”) supplements our prospectus dated August 12, 2005 (the “Prospectus”), relating to the public offering and sale of up to 28,369,878 shares of our common stock presently outstanding and issuable upon the exercise of outstanding convertible securities of ours.

This Prospectus Supplement should be read in conjunction with, and may not be delivered or utilized without, the Prospectus. This Prospectus Supplement is qualified by reference to the Prospectus except to the extent that information herein contained supersedes the information contained in the Prospectus. Capitalized terms used in this Prospectus Supplement and not otherwise defined herein have the meanings specified in the Prospectus.

SELLING STOCKHOLDERS

As a result of transactions effected by certain selling stockholders after the date of the Prospectus and prior to the date of this Prospectus Supplement, the table under the section captioned “Selling Stockholders—Identity and Ownership of Selling Stockholders” set forth in the Prospectus is hereby replaced and superseded in its entirety by the following:

Shares Owned

Shares Issuable Under Options, Warrants or Convertible

Maximum Number of Shares to be Sold in the

Ownership After

the Offering⁽²⁾

Name

Before Offering⁽¹⁾

Notes

Offering

Shares

Percent⁽³⁾

Marc Abrams

3,003⁽⁸⁾

1,502⁽⁹⁾

1,502

Elise Abrams-Kraut

15,000⁽⁵⁾

7,500⁽⁴⁾

22,500

Elise Abrams-Kraut

15,015⁽⁸⁾

7,508⁽⁹⁾

22,523

Betty Alperstein

5,556⁽⁵⁾

4,556

Morley Alperstein⁽¹⁹⁾

11,111⁽⁵⁾

6,111

Alpha Capital A.G.

75,075⁽⁸⁾

37,538⁽⁹⁾

37,538

Francis A. Anania

16,667⁽⁵⁾

16,667

Scott Andrews

25,000⁽⁸⁾

12,500⁽⁹⁾

12,500

Anno, L.P.

7,500⁽⁸⁾

3,750⁽⁹⁾

11,250

Apogee Fund, L.P.

150,150⁽⁸⁾

75,075⁽⁹⁾

225,225

Thomas and Barbara Asarch

7,508⁽⁸⁾

3,754⁽⁹⁾

3,754

Asset Managers International Ltd.

75,075⁽⁸⁾

⁽²⁶⁾

Atlantis Software P/S

10,000⁽⁸⁾

5,000⁽⁹⁾

5,000

Avia Eilon Trust dated May 14, 1999

30,000⁽⁸⁾

15,000⁽⁹⁾

45,000

Sally White Ayres

7,500⁽⁵⁾

3,750⁽⁴⁾

11,250

Thomas Bailey

4,054⁽⁵⁾

4,054

George Ball

7,507⁽⁸⁾

3,753⁽⁹⁾

3,753

Bargia Investments LLC

7,500⁽⁵⁾

3,750⁽⁴⁾

11,250

Jana Bartholomew

7,508⁽⁸⁾

3,753⁽⁹⁾

3,753

Bascom Baynes

30,000⁽⁸⁾

15,000⁽⁹⁾

15,000

Allan M. Benton

6,000(5)

3,000⁽⁴⁾

3,000

Allen Berger

7,508⁽⁸⁾

3,753⁽⁹⁾

11,261

BSF US Special Opportunities Trust PLC⁽²¹⁾

225,225⁽⁸⁾

112,613⁽⁹⁾

112,613

BH Capital Investments LP

30,000⁽⁸⁾

15,000⁽⁹⁾

15,000

Richard G. Binetti

26,111⁽⁵⁾

7,500⁽⁴⁾

33,611

Richard G. Binetti

25,000⁽¹¹⁾

25,000

Bioform LLC

300,000⁽⁵⁾

⁽²⁷⁾

274,800

Bio-Technical Resources Division of Arkion Life Services LLC⁽¹⁸⁾

300,300⁽⁵⁾

300,300

Jeffrey Bogatin

50,000⁽⁸⁾

25,000⁽⁹⁾

25,000

Alexander V. Bondar⁽⁶⁾

3,716⁽⁵⁾

3,716

Daniel Brams

5,556⁽⁵⁾

5,556

Brean Murray & Co., Inc.⁽⁷⁾

16,102⁽⁷⁾

371,595⁽⁷⁾

139,967

Bristol Investment Fund Ltd.

150,150⁽⁸⁾

75,075⁽⁹⁾

75,075

Richard A. Bruno

22,222⁽⁵⁾

50,000⁽¹¹⁾

67,222

Robert D. and Jennifer B. Burke

44,444⁽⁵⁾

41,444

Richard Burlingame⁽⁶⁾

2,477⁽⁵⁾

2,477

Lawrence Burstein

15,015⁽⁸⁾

7,508⁽⁹⁾

15,023

Albert E. Bush, Trustee

7,507⁽⁸⁾

3,753⁽⁹⁾

3,753

Bernard C. Byrd, Jr., Trustee

30,000⁽⁸⁾

15,000⁽⁹⁾

15,000

Anthony Robert Campbell

26,111⁽⁵⁾

7,500⁽⁴⁾

33,611

CAMOFI Master LDC

30,030⁽⁸⁾

15,015⁽⁹⁾

15,015

Capital Growth Investments Trust

60,060⁽⁸⁾

30,030⁽⁹⁾

30,030

Martin Cass

7,500⁽⁵⁾

3,750⁽⁴⁾

11,250

Ratnesh Chandra⁽⁶⁾

25,000⁽³²⁾

25,000

Ratnesh Chandra⁽⁶⁾

3,716⁽⁵⁾

3,716

Arnold and Renee Cinmar

9,009⁽⁸⁾

4,504⁽⁹⁾

9,013

Cluny Road Rentals, L.P.

150,000⁽⁵⁾

75,000⁽⁴⁾

225,000

Cobraco Manufacturing, Inc.

12,111⁽⁵⁾

12,111

Richard B. Comiter

5,556⁽⁵⁾

12,500⁽¹¹⁾

18,056

Richard B. Comiter and Marilyn Comiter, Tenants by the Entireties

7,500⁽⁵⁾

3,750⁽⁴⁾

11,250

Commonfund Hedged Equity

32,000⁽⁸⁾

16,000⁽⁹⁾

48,000

The Cordillera Fund, L.P.

100,000⁽⁸⁾

⁽²⁸⁾

Cranshire Capital, L.P.

60,060⁽⁸⁾

30,030⁽⁹⁾

30,030

Crescent International Ltd.

100,000⁽⁸⁾

50,000⁽⁹⁾

50,000

Crestview Capital Master, LLC⁽¹⁷⁾

600,600⁽⁸⁾

300,300⁽⁹⁾

300,300

Crestview Capital Master, LLC⁽¹⁷⁾

187,688^(9)(28)

187,688

Mark N. Davis

22,522⁽⁸⁾

11,261⁽⁹⁾

28,783

Erick S. Klefos⁽³⁴⁾

10,000⁽⁸⁾

5,000⁽⁹⁾

7,000

Steven J. Denholtz

15,000⁽⁵⁾

7,500⁽⁴⁾

22,500

Stewart F. Denholtz

7,500⁽⁵⁾

3,750⁽⁴⁾

11,250

Conrad DeSantis and Patricia DeSantis, JTWROS

30,000⁽⁵⁾

15,000⁽⁴⁾

45,000

Robert Dressler

11,111⁽⁵⁾

11,111

Dreyfoos 2004 Charitable Remainder Unitrust

3,000⁽⁵⁾

1,500⁽⁴⁾

4,500

End of the Rainbow LLLP

11,111⁽⁵⁾

11,111

Steven R. Elliott

7,507⁽⁸⁾

3,753⁽⁹⁾

11,260

Mark A. Emalfarb^(6)(14)

5,822,125⁽¹²⁾

1,276,434⁽¹³⁾

7,098,559

Charles & Anna Essman Irrevocable Trust dated 12/22/95

15,015⁽⁸⁾

7,508⁽⁹⁾

14,523

Excalibur Limited Partnership

180,000⁽⁸⁾

90,000⁽⁹⁾

90,000

Linda Fallucca

500⁽³³⁾

500

Martin Farber

15,000⁽⁵⁾

7,500⁽⁴⁾

22,500

Edward Feigeles

16,666⁽¹⁰⁾

Edward Feigeles and Kathryn Green

11,111⁽⁵⁾

11,111

FEQ GAS, LLC

30,030⁽⁸⁾

15,015⁽⁹⁾

45,045

F & C Holdings LLC

300,300⁽²³⁾

300,300

William and Bettina Foody

7,508⁽⁸⁾

3,753⁽⁹⁾

11,261

Forest Hill Select Offshore, Ltd.

5,750⁽⁸⁾

2,875⁽⁹⁾

2,875

Forest Hill Select Fund, Ltd.

244,250⁽⁸⁾

122,125⁽⁹⁾

122,125

Forich Group Limited

30,030⁽⁸⁾

15,015⁽⁹⁾

25,045

Four JR Investments, Ltd.

100,000⁽¹¹⁾

100,000

Four JR Investments, Ltd.

120,000⁽⁵⁾

60,000(4)

170,000

Francisco Trust U/A/D June 28, 1996⁽¹⁶⁾

4,769,578^(5)(15)(30)

4,769,578

Edwin Freedman

30,000⁽⁸⁾

15,000⁽⁹⁾

35,000

Corie Fromkin

5,556⁽⁵⁾

5,556

Samuel Fromkin

100,000⁽¹¹⁾

100,000

Samuel and Ivee Fromkin

11,111⁽⁵⁾

11,111

Eugene A. Fusz

75,000^(4)(27)

75,000

Rufus Gardner⁽⁶⁾

945⁽⁵⁾

945

Robert A. Garvy Revocable Trust U/A/D June 21, 1994

22,222⁽⁵⁾

22,222

Andrew Golding

7,505⁽⁸⁾

3,753⁽⁹⁾

3,753

Good Steward Trading Company SPC

10,100⁽⁸⁾

5,050⁽⁹⁾

15,150

Pamler E. Gozzo

9,999⁽⁵⁾

5,000⁽⁴⁾

14,999

Robert and Jennifer Grandi

15,015⁽⁸⁾

7,508⁽⁹⁾

7,508

Robert D. Grandi and Jennifer A. Grandi, JTWROS

7,500⁽⁵⁾

3,750⁽⁴⁾

3,750

Grandi Living Trust U/A DTD 03/11/2005

12,515⁽²⁹⁾

Michael B. Gray

7,500⁽⁸⁾

3,750⁽⁹⁾

3,750

Bill and Johnnie Haak

7,500⁽⁸⁾

3,750⁽⁹⁾

3,750

Neil Herbst

4,500⁽⁵⁾

2,250⁽⁴⁾

6,750

Seth J. Herbst

15,000⁽¹⁰⁾

Seth J. Herbst

12,500⁽¹¹⁾

12,500

Highgate House Funds, Ltd.

150,150⁽⁸⁾

⁽²⁸⁾

David J. Hooper

75,000⁽⁵⁾

Romuald Ikauniks

11,111⁽⁵⁾

11,111

Incline Capital, L.P.

50,000⁽⁸⁾

25,000⁽⁹⁾

25,000

Intellectual Property

Investment Partners, LLC

75,000⁽⁸⁾

37,500⁽⁹⁾

37,500

David B. Jay Trustee Trust⁽²⁵⁾

30,000⁽⁵⁾

15,000⁽⁴⁾

45,000

David B. Jay Trustee Trust⁽²⁵⁾

30,000⁽⁸⁾

15,000⁽⁹⁾

45,000

J&S Denholtz Family Limited Partnership

7,500⁽⁵⁾

3,750⁽⁴⁾

11,250

Matthew Johnson

15,015⁽⁸⁾

7,508⁽⁹⁾

7,508

Nathan Johnson

7,508⁽⁸⁾

3,753⁽⁹⁾

3,753

Charles Johnston

11,111⁽⁵⁾

16,667⁽¹⁰⁾

Douglas Kaplan

11,111⁽⁵⁾

Douglas Kaplan, Trustee f/b/o Barbara Kaplan

26,111⁽⁵⁾

7,500⁽⁴⁾

7,500

Douglas Kaplan, Trustee f/b/o Leslie Kaplan

26,111⁽⁵⁾

7,500⁽⁴⁾

7,500

Emily Kaplan

11,111⁽⁵⁾

Eileen Katz

7,443⁽⁸⁾

3,722⁽⁹⁾

3,722

Michael D. Kennedy

4,500⁽⁵⁾

2,250⁽⁴⁾

6,750

Michael Kent

2,000⁽⁸⁾

1,000⁽⁹⁾

3,000

Kingsbridge Capital

45,045⁽⁸⁾

22,523⁽⁹⁾

22,523

Knott Partners L.P.

253,000⁽⁸⁾

126,500⁽⁹⁾

379,500

Eugene M. Kornhaber

15,000⁽⁸⁾

7,500⁽⁹⁾

7,500

Brian Kuhn

45,000⁽⁸⁾

22,500⁽⁹⁾

25,500

Alan Lebow and Patricia Lebow, Tenancy by Entireties

7,500⁽⁵⁾

3,750⁽⁴⁾

5,250

Mark Leszczynski

15,015⁽⁸⁾

7,508⁽⁹⁾

22,523

Robert S. Levin Trust u/a/d October 22, 1971

13,056⁽⁵⁾

3,750⁽⁴⁾

16,806

Barbara S. Lewin

3,000⁽⁵⁾

1,500⁽⁴⁾

1,500

Barbara S. Lewin

3,003⁽⁸⁾

1,502⁽⁹⁾

1,502

Alyssa B. List

1,502⁽⁸⁾

751⁽⁹⁾

2,253

Alyssa B. List

1,500⁽⁵⁾

750⁽⁴⁾

2,250

Jaimie Luciani

3,778⁽⁵⁾

3,778

Jodi Luciani

3,667⁽⁵⁾

3,667

Marni Luciani

3,667⁽⁵⁾

3,667

Richard Luciani

7,508⁽⁸⁾

3,753⁽⁹⁾

11,261

Richard and Ruth Luciani

11,111⁽⁵⁾

11,111

Ruth Luciani

37,500⁽¹¹⁾

37,500

M&M Capital, LLC

15,015⁽⁸⁾

7,508⁽⁹⁾

7,508

Meyer Magid

7,500⁽⁵⁾

3,750⁽⁴⁾

11,250

Meyer Magid

7,508⁽⁸⁾

3,753⁽⁹⁾

11,261

Andrew J. Malik

11,111⁽⁵⁾

16,667⁽¹⁰⁾

11,111

David E. Mann

10,000⁽⁸⁾

5,000⁽⁹⁾

15,000

Matterhorn Offshore Fund Ltd.

205,000⁽⁸⁾

102,500⁽⁹⁾

307,500

Kevin and Henriette May

22,222⁽⁵⁾

22,222

Marnee Fromkin Mccaren

5,556⁽⁵⁾

5,556

Stacy Smith McNamara

7,508⁽⁸⁾

3,753⁽⁹⁾

3,753

Rune & Elisa Medhus

25,000⁽⁸⁾

12,500⁽⁹⁾

12,500

Edmund H. Melhado

25,000⁽⁸⁾

12,500⁽⁹⁾

12,500

Mercantile Capital Partners I, L.P.

600,600⁽⁸⁾

300,300⁽⁹⁾

900,900

MFN LLC

75,075⁽⁸⁾

37,538⁽⁹⁾

37,538

Marie K. Mildren

7,507⁽⁸⁾

3,753⁽⁹⁾

7,260

Joel Leslie Millman

7,508⁽⁸⁾

3,753⁽⁹⁾

11,261

Mintz Levin Investments, LLC

33,333⁽⁵⁾

Charles Moche

10,000⁽⁸⁾

5,000⁽⁹⁾

15,000

Nautica Holdings, Inc.

150,150⁽⁸⁾

75,075⁽⁹⁾

75,075

Rush Neill Family Investment Partnership

111,111⁽⁵⁾

111,111

Nite Capital LP

45,045⁽⁸⁾

22,523⁽⁹⁾

22,523

Dean S. Oakey

30,000⁽⁸⁾

15,000⁽⁹⁾

30,000

Dermot O'Brien

6,000⁽⁵⁾

3,000⁽⁴⁾

9,000

Odin Partners LP

30,030⁽⁸⁾

15,015⁽⁹⁾

45,045

T. Scott O'Keefe

7,507⁽⁸⁾

3,753⁽⁹⁾

3,753

Robert Pedlow

15,000⁽⁸⁾

7,500⁽⁹⁾

7,500

Peking Singer Biotech Partners

140,000⁽⁵⁾

140,000

The Pinnacle Fund, L.P.

111,111⁽⁵⁾

The Pinnacle Fund, L.P.

1,000,000⁽⁸⁾

500,000⁽⁹⁾

1,500,000

W. Randolph Piper, III

and Sara Creed Piper

7,507⁽⁸⁾

3,753⁽⁹⁾

11,260

Carl Pipes

7,508⁽⁸⁾

3,753⁽⁹⁾

3,753

Carter D. Pope

30,000⁽⁸⁾

15,000⁽⁹⁾

35,000

Gerald W. Pope Revocable Trust

7,507⁽⁸⁾

3,753⁽⁹⁾

3,753

Louis E. Price, Trustee of Louis E. Price Living Trust dated May 22, 1990

7,500⁽⁵⁾

3,750⁽⁴⁾

11,250

Ptarmigan & Eden Asset Management, Ltd.

15,015⁽⁸⁾

7,508⁽⁹⁾

7,508

Suresh Rajamanickam, M.D. & Nisha Bhardwaj, M.D., JTWROS

9,000⁽⁵⁾

4,500⁽⁴⁾

13,500

Chuck Ramsay, Jr.⁽²²⁾

15,015⁽⁸⁾

7,508⁽⁹⁾

7,508

Jan Rask

15,015⁽⁸⁾

7,508⁽⁹⁾

11,015

Harold S. Reed & Kate M. Reed, JTWROS

30,000⁽⁵⁾

15,000⁽⁴⁾

45,000

Renaissance US Growth Investment Trust PLC

225,225⁽⁸⁾

112,613⁽⁹⁾

112,613

Erick Richardson

15,015⁽⁸⁾

7,508⁽⁹⁾

7,508

Ridgewood Limited

15,015⁽⁸⁾

7,508⁽⁹⁾

7,508

Gene Salkind, M.D.

30,000⁽⁸⁾

15,000⁽⁹⁾

45,000

Sanders 1998 Children's Trust

15,015⁽⁸⁾

7,508⁽⁹⁾

7,508

Don A. Sanders

22,523⁽⁸⁾

11,261⁽⁹⁾

11,261

Katherine U. Sanders

15,015⁽⁸⁾

7,508⁽⁹⁾

22,523

Sanders Morris Harris Inc.⁽⁷⁾

16,102⁽⁷⁾

371,595⁽⁷⁾

123,865

Sanders Opportunity Fund LP

17,925⁽⁸⁾

8,961⁽⁹⁾

8,961

Sanders Opportunity Fund (INST) LP

57,150⁽⁸⁾

28,575⁽⁹⁾

28,575

Richard and Cheri Sarner

22,222⁽⁵⁾

22,222

Scott M. & Peggy Schecter

15,015⁽⁸⁾

7,508⁽⁹⁾

22,523

Robert I. Schwimmer

105,056⁽⁵⁾

45,056

Schwimmer Family Education Trust U/T/A dtd December 29, 2005

60,000^(5)(24)

Blake Selig

7,507⁽⁸⁾

3,753⁽⁹⁾

3,753

David L. Shadid

15,015⁽⁸⁾

7,508⁽⁹⁾

7,508

Mel A. Shaftel

30,000⁽⁸⁾

15,000⁽⁹⁾

45,000

Shoshone Partners, L.P.

93,000⁽⁸⁾

46,500⁽⁹⁾

139,500

Norman F. Siegel

30,000⁽⁵⁾

15,000⁽⁴⁾

45,000

Ita Friedman and Philip Sieradski

1,502⁽⁸⁾

751⁽⁹⁾

2,253

Richard Singer

22,523⁽⁸⁾

11,261⁽⁹⁾

33,784

Robert Albert Smeaton

10,000⁽⁸⁾

5,000⁽⁹⁾

15,000

Robert Albert Smeaton

50,000⁽¹¹⁾

50,000

Robert Albert Smeaton

15,000⁽⁵⁾

7,500⁽⁴⁾

22,500

Denis and Barbara Smith

11,111⁽⁵⁾

11,111

William A. Solemene

100,000⁽⁸⁾

50,000⁽⁹⁾

130,000

Kent Sproat⁽⁶⁾

50,000⁽²¹⁾

50,000

Kent Sproat⁽⁶⁾

3,716⁽⁵⁾

3,716

Stonestreet Limited Partnership

135,135⁽⁸⁾

67,568⁽⁹⁾

67,568

Sunrise Equity Partners, L.P.

150,150⁽⁸⁾

75,075⁽⁹⁾

75,075

Larry T. Tabloff and Karen A. Tabloff, Tenants-in-Common

2,100⁽⁵⁾

1,050⁽⁴⁾

2,550

Henri I. Talerman

60,060⁽⁸⁾

30,030⁽⁹⁾

90,090

Richard Taney

9,000⁽⁸⁾

4,500⁽⁹⁾

4,500

Mary C. Tanner

30,030⁽⁸⁾

15,015⁽⁹⁾

15,015

Thornaby Limited

30,030⁽⁸⁾

15,015⁽⁹⁾

15,015

Tiberius Investment & Capital

150,150⁽⁸⁾

M. Paul Tompkins

15,000⁽⁸⁾

7,500⁽⁹⁾

7,500

Univest Management Inc., E.P.S.P.

11,111⁽⁵⁾

11,111

James E. Vanek

15,000⁽⁵⁾

7,500⁽⁴⁾

22,500

Joseph Vassallo and Patricia Vassallo, JTWROS

15,000⁽⁵⁾

7,500⁽⁴⁾

22,500

Vincent Vazquez

15,015⁽⁸⁾

7,508⁽⁹⁾

7,508

Vision Capital Advisors

22,523⁽⁸⁾

11,261^(9)(26)

11,261

Vision Opportunity Master Fund

50,000^(10)(26)(28)

50,000

Robert A. Vitale, Jr.

20,000⁽¹¹⁾

20,000

Robert A. Vitale, Jr.

10,056⁽⁵⁾

2,250⁽⁴⁾

12,306

Vitel Ventures

225,000⁽⁵⁾

112,500⁽⁴⁾

VLC Properties, LP

22,522⁽⁸⁾

11,261⁽⁹⁾

33,783

Steven J. Warner⁽³¹⁾

75,000^(4)(27)

75,000

Joseph H. Wein

3,000⁽⁵⁾

1,500⁽⁴⁾

4,500

Edwin L. Weprinsky⁽²⁰⁾

5,556⁽⁵⁾

5,556

Westpark Capital, L.P.

200,000⁽⁸⁾

100,000⁽⁹⁾

224,500

Whalehaven Capital Fund Limited

60,060⁽⁸⁾

30,030⁽⁹⁾

30,030

Robert Wilensky

7,507⁽⁸⁾

3,754⁽⁹⁾

3,754

Winton Capital Holdings Ltd.

200,000⁽⁸⁾

100,000⁽⁹⁾

100,000

William N. and Kimberly C. Woodworth

10,000⁽⁸⁾

5,000⁽⁹)

7,500

Ken Wormser

30,000⁽⁵⁾

15,000⁽⁴⁾

45,000

Donald D. Wren

150,000⁽⁵⁾

75,000⁽⁴⁾

173,100

Donald D. Wren

75,075⁽⁸⁾

37,538⁽⁹⁾

112,613

Winston D. Wren

30,000⁽⁵⁾

15,000⁽⁴⁾

45,000

Winston D. Wren

45,045⁽⁸⁾

22,523⁽⁹⁾

67,568

Telly Zachariades

7,500⁽⁵⁾

3,750⁽⁴⁾

11,250

Telly Zachariades

7,508⁽⁸⁾

3,754⁽⁹⁾

11,262

Louis Zehil

3,003⁽⁸⁾

1,502⁽⁹⁾

1,502

21,352,102

7,017,776

22,642,294

_______________________

* Represents less than 1%.

(1)	Ownership for all selling stockholders is based upon information provided by the selling stockholders or known to us.

(2)	Assumes the sale of all shares of common stock registered pursuant to this prospectus, although the selling stockholders are under no obligation known to us to sell any shares of common stock under this prospectus.

(3)

Based upon 24,486,492 shares of common stock outstanding on June 30, 2006. The shares issuable under convertible securities to purchase our common stock that are currently exercisable and exercisable within 60 days of that date, are treated as outstanding for purposes of computing the percentage ownership of the named selling stockholder holding these convertible securities, but are not treated as outstanding for purposes of computing the percentage ownership of any other selling stockholder.

(4)	Represents shares purchasable under Investor Warrants expiring in October 2009 and exercisable at $5.50 per share of common stock. These Investor Warrants were issued to former Dyadic-Florida shareholders who were investors in the private placement offering by Dyadic-Florida completed in July 2004.

(5)	Represents shares of common stock issued to former Dyadic-Florida shareholders as a result of the merger consummated on October 29, 2004.

(6)	Executive officer or employee of the Company.

(7)

Placement agent for our private placement offering completed in November 2004. 16,102 shares of common stock were issued by Dyadic-Florida as an initial engagement fee. Upon completion of the offering, we issued to the placement agent Investor Warrants to purchase 123,865 shares of common stock expiring in October 2009 and exercisable at $5.50 per share, and another class of warrants to purchase 247,730 shares of common stock expiring in October 2009 and exercisable at $3.33 per share. The placement agent may transfer these warrants or shares to its employees, officers or directors prior to their sale under this prospectus, subject to compliance with applicable securities laws.

(8)	Represents shares of our common stock issued in our private placement offering completed in November 2004.

(9)	Represents shares purchasable under Investor Warrants expiring in October 2009 and exercisable at $5.50 per share of common stock. These Investor Warrants were issued to investors in our private placement offering completed in November 2004.

(10)	Represents shares purchasable under options expiring May 24, 2006 and exercisable at $4.50 per share. All of these options were exercised in full prior to expiring. These options were not issued under the Dyadic International, Inc. Amended and Restated 2001 Equity Incentive Plan.

(11)	Represents shares purchasable under Bridge Loan Warrants expiring in May 2013 and exercisable at $3.33 per share.

(12)

Represents 5,202,959 shares of common stock issued to the Mark A. Emalfarb Trust for its Dyadic-Florida shares as a result of the merger and 367,868 shares of common stock issued to the Mark A. Emalfarb Trust in exchange for cancellation of $1,225,000 of debt owed to the trust. Also represents 251,298 shares covered by this prospectus issued to the Mark A. Emalfarb Trust upon the conversion of a convertible note in the amount of $836,824 at $3.33.

(13)	Represents 1,092,500 shares purchasable under Bridge Loan Warrants exercisable at $3.33 per share and 183,934 shares purchasable under Investor Warrants exercisable at $5.50 per share.

(14)	All securities are held of record by the Mark A. Emalfarb Trust U/A/D October 1, 1987, of which Mr. Emalfarb serves as the sole trustee.

(15)	Includes 222,537 shares of common stock covered by this prospectus issued to the named selling stockholder upon the conversion of a convertible note in the amount of $741,047, at $3.33 per share.

(16)	The Francisco Trust has as its beneficiaries the spouse and descendants of Mark A. Emalfarb, and as its trustee an unrelated third party, Robert S. Levin, Esq.

(17)

Crestview Capital Partners, LLC (“CCP”) is the sole managing member of Crestview Capital Master, LLC (“CCM”) and may be deemed to have sole voting and investment power with respect to the securities beneficially owned by CCM. CCP disclaims beneficial ownership of these securities. The managing members of CCP are Stewart Flink, Robert Hoyt and Daniel Warsh, each of whom may be deemed to have voting and dispositive power over securities beneficially owned by CCM, and each of whom also disclaims beneficial ownership of these securities. Mr. Flink is an affiliate of a broker-dealer and it has been confirmed to us that the securities were acquired to be resold in the ordinary course of business and that there are no arrangements with any other persons, whether directly or indirectly, to dispose of the securities.

(18)

Represents shares held of record by Mark J. Gunderson, Esq., as escrow agent under the Development Agreement dated as of July 20, 2004 between the named selling stockholder and Dyadic-Florida. The shares will be released from escrow and transferred to the named selling stockholder as payment for R&D services being rendered by the named selling stockholder to us. As of March 31 2006, 35,399 shares have been released from escrow and transferred to the named selling stockholder.

(19)	Represents shares of common stock held of record in an Individual Retirement Account by Mesirow Financial Inc., as custodian.

(20)	Represents shares of common stock held of record in an Individual Retirement Account by Neuberger Berman Trust Company.

(21)	Represents shares of common stock held of record by The Frost National Bank, as custodian.

(22)	Represents shares of common stock held of record in an Individual Retirement Account by Pershing LLC.

(23)	Represents shares of common stock issued on May 25, 2005. See “Real Estate Purchase” below.

(24)	Represents shares of common stock transferred by Robert I. Schwimmer to the Schwimmer Family Education Trust U/T/A dtd December 29, 2005 for the benefit of his children, of which he and Cynthia D. Schwimmer are the trustees, in a transaction not effected pursuant to this prospectus.

(25)	Represents shares of common stock transferred from David and Barbara Jay in transactions not effected pursuant to this prospectus.

(26)	Represents shares of common stock underlying Warrants that were transferred from Asset Managers Investments Ltd. and Tiberius Investment & Capital in transactions not effected pursuant to this prospectus.

(27)	Represents shares of common stock underlying Warrants that were transferred from Bioform LLC to its members by virtue of a pro rata distribution.

(28)	Represents shares of common stock underlying 50,000, 75,075 and 62,613 Warrants that were transferred by The Cordillera Fund, Highgate House Funds, Ltd. and Vision Opportunity Master Fund, respectively, in transactions not effected pursuant to this prospectus.

(29)	The named selling stockholder acquired the shares from Robert Grandi and Jennifer Grandi, both of whom are the trustees and beneficiaries of the named selling stockholder, in a transaction not effected pursuant to this prospectus.

(30)	Includes 125,000 shares acquired by the named selling stockholder from another named selling stockholder in a transaction not effected pursuant to this prospectus.

(31)	The named selling stockholder is a director of the Company.

(32)	Represents shares purchased on November 3, 2004 upon exercise of options to purchase shares from the Francisco Trust.

(33)	Represents shares of common stock transferred by Robert I. Schwimmer after January 28, 2005 in a transaction not effected pursuant to this prospectus.

(34)	Represents securities held of record in an Individual Retirement Account by Delaware Charter.

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SEE “RISK FACTORS” SET FORTH IN THE PROSPECTUS TO READ ABOUT IMPORTANT FACTORS YOU SHOULD CONSIDER BEFORE BUYING SHARES OF OUR COMMON STOCK.

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These securities have not been approved or disapproved by the Securities and Exchange Commission or any state securities commission nor has the Securities and Exchange Commission or any state securities commission passed upon the accuracy or adequacy of the Prospectus or this Prospectus Supplement. Any representation to the contrary is a criminal offense.

The date of this Prospectus Supplement is July 6, 2006.