Full Press Release Details
Applied DNA Announces Third Quarter Fiscal Year
Conference Call/Webcast Scheduled for Today at 4:30 PM ET -
BROOK, N.Y. - August 8, 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 third fiscal
quarter ended June 30, 2024. The Company's Form 10-Q can be viewed at https://investors.adnas.com/sec-filings/.
Third Quarter Operational Highlights and Corporate
LineaRx (Therapeutic DNA Production Services)
GMP roadmap execution:
Linea IVT template commercialization:
Linea IVT platform commercialization:
Linea DNA commercialization for IVT diagnostics:
Based on internal company assumptions and modeling using a 1/100 DNA-to-RNA amplification ratio and an mRNA vaccine dose of 30 g.
Manufacture of the final mRNA drug substance will be conducted by therapy developers or their CDMO.
Applied DNA Clinical Labs (MDx Testing
TR8 PGx testing service commercialization:
DNA Tagging and Security Products and Services
Broader CertainT platform commercialization:
Management Commentary
A. Hayward, Ph.D., president and CEO of Applied DNA, stated, "FQ3 was characterized by strong execution across all three business
segments. With a talented team and a strengthened balance sheet, we believe we are approaching key inflection points in each of our three
business segments to drive total revenue growth year-over-year starting in the first half of fiscal 2025."
Summary Third Quarter Fiscal 2024 Financial
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.
1 Based on company internal modeling using currently forecasted
capacity and projected unit price.
Third Quarter Fiscal 2024 Conference Call
The Company will hold a conference call and webcast
to discuss its third quarter of fiscal year 2024 financial results on Thursday, August 8, 2024, at 4:30 PM ET. To participate in
the conference call, please follow the instructions below. While every attempt will be made to answer investors' questions on the
Q&A portion of the call, not all questions may be answered.
To Participate, please ask to be joined to the
Applied DNA Sciences' call:
and replay of webcast: https://qa6.choruscall.com/contexweb/ViewQA/loginSortQA.htm
Telephonic replay (available 1 hour following
the conclusion of the live call through February 15, 2024):
accompanying slide presentation that will be embedded in the webcast can be accessed under News & Events' tab and
Company Events' section of the Applied DNA investor relations website at https://investors.adnas.com/
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.
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, the unknown amount of revenues and profits that will result from our Linea IVT and or Linea DNA platforms, 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, the unknown amount of revenues and profits that will result from its TR8 PGx testing service, the limited market
acceptance for its supply chain security products and services, as well as 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, May 10, 2024 and August 8, 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
| June 30, | September 30, | |||||||
| 2024 | 2023 | |||||||
| ASSETS | (unaudited) | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 10,442,131 | $ | 7,151,800 | ||||
| Accounts receivable, net of allowance for credit losses of $75,000 at June 30, 2024, and September 30, 2023, respectively | 513,871 | 255,502 | ||||||
| Inventories | 469,871 | 330,027 | ||||||
| Prepaid expenses and other current assets | 416,427 | 389,241 | ||||||
| Total current assets | 11,842,300 | 8,126,570 | ||||||
| Property and equipment, net | 530,735 | 838,270 | ||||||
| Other assets: | ||||||||
| Restricted cash | 750,000 | 750,000 | ||||||
| Intangible assets | 2,698,975 | 2,698,975 | ||||||
| Operating right of use asset | 868,081 | 1,237,762 | ||||||
| Total assets | $ | 16,690,091 | $ | 13,651,577 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 2,440,688 | $ | 2,270,388 | ||||
| Operating lease liability, current | 533,679 | 498,598 | ||||||
| Deferred revenue | 51,285 | 76,435 | ||||||
| Total current liabilities | 3,025,652 | 2,845,421 | ||||||
| Long term accrued liabilities | 31,467 | 31,467 | ||||||
| Deferred revenue, long term | 194,000 | 194,000 | ||||||
| Operating lease liability, long term | 334,402 | 739,162 | ||||||
| Deferred tax liability, net | 684,115 | 684,115 | ||||||
| Warrants classified as a liability | 186,000 | 4,285,000 | ||||||
| Total liabilities | 4,455,636 | 8,779,165 | ||||||
| Commitments and contingencies (Note G) | ||||||||
| Applied DNA Sciences, Inc. stockholders' equity: | ||||||||
| Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- shares issued and outstanding as of June 30, 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 June 30, 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 June 30, 2024, and September 30, 2023, respectively | - | - | ||||||
| Common stock, par value $0.001 per share; 200,000,000 shares authorized as of June 30, 2024, and September 30, 2023, 10,299,385 and 682,926 shares issued and outstanding as of June 30, 2024, and September 30, 2023, respectively | 10,301 | 683 | ||||||
| Additional paid in capital | 318,757,698 | 307,397,623 | ||||||
| Accumulated deficit | (306,376,012 | ) | (302,447,147 | ) | ||||
| Applied DNA Sciences, Inc. stockholders' equity | 12,391,987 | 4,951,159 | ||||||
| Noncontrolling interest | (157,532 | ) | (78,747 | ) | ||||
| Total equity | 12,234,455 | 4,872,412 | ||||||
| Total liabilities and equity | $ | 16,690,091 | $ | 13,651,577 |
APPLIED DNA SCIENCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended June 30, | ||||||||
| 2024 | 2023 | |||||||
| Revenues | ||||||||
| Product revenues | $ | 246,644 | $ | 316,950 | ||||
| Service revenues | 226,145 | 425,694 | ||||||
| Clinical laboratory service revenues | 324,730 | 2,174,697 | ||||||
| Total revenues | 797,519 | 2,917,341 | ||||||
| Cost of product revenues | 230,188 | 368,902 | ||||||
| Cost of clinical laboratory service revenues | 322,099 | 1,279,121 | ||||||
| Total cost of revenues | 552,287 | 1,648,023 | ||||||
| Gross profit | 245,232 | 1,269,318 | ||||||
| Operating expenses: | ||||||||
| Selling, general and administrative | 2,678,894 | 3,292,304 | ||||||
| Research and development | 913,031 | 836,123 | ||||||
| Total operating expenses | 3,591,925 | 4,128,427 | ||||||
| LOSS FROM OPERATIONS | (3,346,693 | ) | (2,859,109 | ) | ||||
| Interest income | 36,295 | 26,783 | ||||||
| Transaction costs allocated to warrant liabilities | - | - | ||||||
| Unrealized gain (loss) on change in fair value of warrants classified as a liability | 5,160,000 | (278,400 | ) | |||||
| Unrealized loss on change in fair value of warrants classified as a liability - warrant modification | - | - | ||||||
| Loss on issuance of warrants | - | - | ||||||
| Other (expense) income, net | (101 | ) | (3,469 | ) | ||||
| Income (loss) before provision for income taxes | 1,849,501 | (3,114,195 | ) | |||||
| Provision for income taxes | - | - | ||||||
| NET INCOME (LOSS) | $ | 1,849,501 | $ | (3,114,195 | ) | |||
| Less: Net loss attributable to noncontrolling interest | 30,295 | 14,429 | ||||||
| NET INCOME (LOSS) attributable to Applied DNA Sciences, Inc. | $ | 1,879,796 | $ | (3,099,766 | ) | |||
| Deemed dividend related to warrant modifications | - | - | ||||||
| NET INCOME (LOSS) attributable to common stockholders | $ | 1,879,796 | $ | (3,099,766 | ) | |||
| Net income (loss) per share attributable to common stockholders-basic and diluted | $ | 0.47 | $ | (4.80 | ) | |||
| Weighted average shares outstanding- basic and diluted | 4,014,261 | 645,426 |
APPLIED DNA SCIENCES, INC.
CALCULATION AND RECONCILIATION OF ADJUSTED
| Three Month Period Ended June 30, | ||||||||
| 2024 | 2023 | |||||||
| Net income (loss) | $ | 1,849,501 | $ | (3,114,195 | ) | |||
| Interest income | (36,295 | ) | (26,783 | ) | ||||
| Depreciation and amortization | 134,163 | 349,146 | ||||||
| Provision for bad debt | - | 34,169 | ||||||
| Stock-based compensation expense | 30,336 | 340,042 | ||||||
| Unrealized (gain) loss on change in fair value of warrants classified as a liability | (5,160,000 | ) | 278,400 | |||||
| Total non-cash items | (5,031,796 | ) | 974,974 | |||||
| Consolidated Adjusted EBITDA (loss) | $ | (3,182,295 | ) | $ | (2,139,221 | ) |