Full Press Release Details
Applied DNA Announces Second Quarter Fiscal Year
BROOK, N.Y. - May 10, 2024 - Applied DNA Sciences, Inc.
(NASDAQ: APDN) ("Applied DNA" or the "Company"), a leader in PCR-based DNA technologies,
today announced consolidated financial results for its second fiscal quarter ended March 31, 2024. The Company's Form 10-Q
can be viewed at https://investors.adnas.com/sec-filings/. The Company will not host a financial
webcast or call for this most recent quarterly reporting period. The Company will host an investor update call on June 12, 2024.
Summary Second Quarter Fiscal 2024 Financial
to the second fiscal quarter ended March 31, 2024, on April 25, 2024, the Company
filed a Certificate of Amendment of its Certificate of Incorporation with the Secretary of State of the State of Delaware that effected
a one-for-twenty (1:20) reverse stock split of its common stock, par value $.001 per share, effective April 25, 2024. All warrant,
option, share, and per share information in this press release gives retroactive effect to a one-for-twenty reverse stock split that was
affected on April 25, 2024.
On May 10, 2024, the Company announced that it received a notification
letter from the Listing Qualifications Department of the Nasdaq Stock Market, informing the Company that it has regained compliance with
the minimum bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2).
Information about Non-GAAP Financial Measures
As used herein, "GAAP" refers to accounting principles
generally accepted in the United States of America. To supplement our condensed consolidated financial statements prepared and presented
in accordance with GAAP, this earnings release includes Adjusted EBITDA, which is a non-GAAP financial measure as defined in Rule 101
of Regulation G promulgated by the Securities and Exchange Commission. Generally, a non-GAAP financial measure is a numerical measure
of a company's historical or future performance, financial position, or cash flows that either excludes or includes amounts that
are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. The presentation
of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial
information presented in accordance with GAAP. We use this non-GAAP financial measure for internal financial and operational decision-making
purposes and as a means to evaluate period-to-period comparisons of the performance and results of operations of our core businesses.
Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding the performance of
our businesses by excluding non-cash expenses that may not be indicative of our recurring operating results. We believe this non-GAAP
financial measure is useful to investors as they allow for greater transparency with respect to key metrics used by management in its
financial and operational decision making.
"EBITDA"- is defined as earnings (loss) before interest
expense, income tax expense and depreciation and amortization expense.
"Adjusted EBITDA"- is defined as EBITDA adjusted to exclude
(i) stock-based compensation and (ii) other non-cash expenses.
About Applied DNA Sciences
Applied DNA Sciences is a biotechnology company
developing technologies to produce and detect deoxyribonucleic acid ("DNA"). Using the polymerase chain reaction ("PCR")
to enable both the production and detection of DNA, we operate in three primary business markets: (i) the enzymatic manufacture of
synthetic DNA for use in the production of nucleic acid-based therapeutics and, through our recent acquisition of Spindle Biotech, Inc.
("Spindle"), the development and sale of a proprietary RNA polymerase ("RNAP") for use in the production of mRNA
therapeutics; (ii) the detection of DNA and RNA in molecular diagnostics and genetic testing services; and (iii) the manufacture
and detection of DNA for industrial supply chain security services.
The Company's common stock is listed on NASDAQ under the ticker
symbol APDN,' and its publicly traded warrants are listed on OTC under the ticker symbol APPDW.'
Forward-Looking Statements
statements made by Applied DNA in this press release may be "forward-looking" in nature within the meaning of Section 27A
of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act
of 1995. Forward-looking statements describe Applied DNA's future plans, projections, strategies, and expectations, and are based
on assumptions and involve a number of risks and uncertainties, many of which are beyond the control of Applied DNA. Actual results could
differ materially from those projected due to its history of net losses, limited financial resources, unknown future demand for its biotherapeutics
products and services, our unknown ability to procure additional financing to build incremental
GMP manufacturing facility, the unknown amount of revenues and profits that will result from our Linea IVT and or Linea DNA platforms,
limited market acceptance for its supply chain security products and services, the declining demand for Applied DNA's COVID-19
testing services, the fact that there has never been a commercial drug product utilizing PCR-produced DNA technology and/or the Linea
IVT platform approved for therapeutic use, and various other factors detailed from time to time in Applied DNA's SEC reports and
filings, including its Annual Report on Form 10-K, as amended, filed on December 7, 2023 and Quarterly Report on Form 10-Q
filed on February 8, 2024 and May 10, 2024, and other reports it files with the SEC, which are available at www.sec.gov.
Applied DNA undertakes no obligation to update publicly any forward-looking statements to reflect new information, events, or circumstances
after the date hereof or to reflect the occurrence of unanticipated events, unless otherwise required by law.
Relations contact: Sanjay M. Hurry, 917-733-5573, sanjay.hurry@adnas.com
- Financial Tables Follow -
APPLIED DNA SCIENCES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
| March 31, | September 30, | |||||||
| 2024 | 2023 | |||||||
| ASSETS | (unaudited) | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 3,149,640 | $ | 7,151,800 | ||||
| Accounts receivable, net of allowance for credit losses of $75,000 at March 31, 2024, and September 30,2023, respectively | 408,853 | 255,502 | ||||||
| Inventories | 335,943 | 330,027 | ||||||
| Prepaid expenses and other current assets | 470,284 | 389,241 | ||||||
| Total current assets | 4,364,720 | 8,126,570 | ||||||
| Property and equipment, net | 367,821 | 838,270 | ||||||
| Other assets: | ||||||||
| Restricted cash | 750,000 | 750,000 | ||||||
| Intangible assets | 2,698,975 | 2,698,975 | ||||||
| Operating right of use asset | 994,111 | 1,237,762 | ||||||
| Total assets | $ | 9,175,627 | $ | 13,651,577 | ||||
| LIABILITIES AND (DEFICIT) EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 2,050,035 | $ | 2,270,388 | ||||
| Operating lease liability, current | 521,719 | 498,598 | ||||||
| Deferred revenue | 51,285 | 76,435 | ||||||
| Total current liabilities | 2,623,039 | 2,845,421 | ||||||
| Long term accrued liabilities | 31,467 | 31,467 | ||||||
| Deferred revenue, long term | 194,000 | 194,000 | ||||||
| Operating lease liability, long term | 472,391 | 739,162 | ||||||
| Deferred tax liability, net | 684,115 | 684,115 | ||||||
| Warrants classified as a liability | 5,346,000 | 4,285,000 | ||||||
| Total liabilities | 9,351,012 | 8,779,165 | ||||||
| Commitments and contingencies (Note G) | ||||||||
| Applied DNA Sciences, Inc. stockholders' (deficit) equity: | ||||||||
| Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- shares issued and outstanding as of March 31, 2024 and September 30, 2023, respectively | - | - | ||||||
| Series A Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- issued and outstanding as of March 31, 2024 and September 30, 2023, respectively | - | - | ||||||
| Series B Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- issued and outstanding as of March 31, 2024 and September 30, 2023, respectively | - | - | ||||||
| Common stock, par value $0.001 per share; 200,000,000 shares authorized as of March 31, 2024, and September 30, 2023, 863,068 and 682,926 shares issued and outstanding as of March 31, 2024 and September 30, 2023, respectively | 864 | 683 | ||||||
| Additional paid in capital | 308,206,796 | 307,397,623 | ||||||
| Accumulated deficit | (308,255,808 | ) | (302,447,147 | ) | ||||
| Applied DNA Sciences, Inc. stockholders' (deficit) equity | (48,148 | ) | 4,951,159 | |||||
| Noncontrolling interest | (127,237 | ) | (78,747 | ) | ||||
| Total (deficit) equity | (175,385 | ) | 4,872,412 | |||||
| Total liabilities and (deficit) equity | $ | 9,175,627 | $ | 13,651,577 |
APPLIED DNA SCIENCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended March 31, | ||||||||
| 2024 | 2023 | |||||||
| Revenues | ||||||||
| Product revenues | $ | 393,125 | $ | 297,454 | ||||
| Service revenues | 205,486 | 169,058 | ||||||
| Clinical laboratory service revenues | 331,020 | 3,941,102 | ||||||
| Total revenues | 929,631 | 4,407,614 | ||||||
| Cost of product revenues | 340,301 | 369,563 | ||||||
| Cost of clinical laboratory service revenues | 293,679 | 2,230,616 | ||||||
| Total cost of revenues | 633,980 | 2,600,179 | ||||||
| Gross profit | 295,651 | 1,807,435 | ||||||
| Operating expenses: | ||||||||
| Selling, general and administrative | 3,000,208 | 3,522,715 | ||||||
| Research and development | 913,194 | 988,744 | ||||||
| Total operating expenses | 3,913,402 | 4,511,459 | ||||||
| LOSS FROM OPERATIONS | (3,617,751 | ) | (2,704,024 | ) | ||||
| Interest income | 15,352 | 3,639 | ||||||
| Transaction costs allocated to warrant liabilities | (633,198 | ) | - | |||||
| Unrealized gain on change in fair value of warrants classified as a liability | 1,765,000 | 3,250,900 | ||||||
| Unrealized (loss) on change in fair value of warrants classified as a liability - warrant modification | (394,000 | ) | - | |||||
| Loss on issuance of warrants | (1,633,767 | ) | - | |||||
| Other income (expense), net | 4,581 | 661 | ||||||
| (Loss) income before provision for income taxes | (4,493,783 | ) | 551,176 | |||||
| Provision for income taxes | - | - | ||||||
| NET (LOSS) INCOME | $ | (4,493,783 | ) | $ | 551,176 | |||
| Less: Net loss attributable to noncontrolling interest | 23,309 | 37,167 | ||||||
| NET (LOSS) INCOME attributable to Applied DNA Sciences, Inc. | $ | (4,470,474 | ) | $ | 588,343 | |||
| Deemed dividend related to warrant modifications | (155,330 | ) | - | |||||
| NET (LOSS) INCOME attributable to common stockholders | $ | (4,625,804 | ) | $ | 588,343 | |||
| Net (loss) income per share attributable to common stockholders-basic and diluted | $ | (5.31 | ) | $ | 0.91 | |||
| Weighted average shares outstanding- basic and diluted | 871,319 | 645,426 |
APPLIED DNA SCIENCES, INC.
CALCULATION AND RECONCILIATION OF ADJUSTED
| Three Month Period Ended March 31, | ||||||||
| 2024 | 2023 | |||||||
| Net (loss) income | $ | (4,493,783 | ) | $ | 551,176 | |||
| Interest income | (15,352 | ) | (3,639 | ) | ||||
| Depreciation and amortization | 186,326 | 344,504 | ||||||
| Provision for bad debt | - | - | ||||||
| Stock based compensation expense | 171,004 | 258,604 | ||||||
| Unrealized gain on change in fair value of warrants classified as a liability | (1,765,000 | ) | (3,250,900 | ) | ||||
| Unrealized (loss) on change in fair value of warrants classified as a liability - warrant modification | 394,000 | - | ||||||
| Transaction costs allocated to warrant liabilities | 633,198 | - | ||||||
| Loss on issuance of warrants | 1,633,767 | - | ||||||
| Total non-cash items | 1,237,943 | (2,651,431 | ) | |||||
| Consolidated Adjusted EBITDA (loss) | $ | (3,255,840 | ) | $ | (2,100,255 | ) |