Full Press Release Details
Applied DNA Reports Fiscal First Quarter
2018 Financial Results
Company To Hold Conference Call and Webcast
Thursday, February 8, 2018 at 4:30 PM EST.
STONY BROOK, N.Y. - February
8, 2018 - Applied DNA Sciences, Inc. (NASDAQ: APDN) ("Applied DNA" or the "Company"), announced financial
results for the fiscal 2018 first quarter ended December 31, 2017.
"We made significant progress
in the first quarter on the execution of our growth strategy to expand our base of business in our core markets and broaden the
application of our molecular tagging technology platform in adjacent markets, although our results reflect a slow start to the
fiscal year," stated Dr. James A. Hayward, chairman, president and CEO. "During and subsequent to the end of the fiscal
first quarter, we developed new, long-term revenue opportunities, including the expansion of our cotton business into international
markets with our first sale of a DNA Transfer System to an overseas ginner, and secured a contract award from TheraCann that leverages
our cotton expertise to better track cannabis and its derivatives. Through our synthetic fiber customer GHCL, we have also gained
the attention of the largest integrated producer of polyester fiber and yarn in the world on our CertainT platform and, with the
upcoming filing of our Drug Master File with the FDA, we can now pursue revenue opportunities with pharmaceutical companies
in a much more vigorous manner.
"Looking ahead to the balance
of fiscal 2018, the expansion of our cotton business into a major overseas cotton-producing region reflects the growing importance
brands owners, retailers and manufacturers place on the origin and authenticity of their cotton-based products and the continued
adoption of our proven molecular taggant technology for textiles. This, together with continued adoption of CertainT by the synthetic
fiber market and the imminent entry into the cannabis, pharmaceuticals, and other adjacent market opportunities, give us reason
for continued optimism for this fiscal year. We, therefore, are reaffirming our base revenue guidance for fiscal 2018 of $6.5 million
with a majority of revenue to be generated in our fiscal third and fourth quarters that are our peak cotton quarters," concluded
Fiscal First Quarter Financial Results:
Recent Operational Highlights:
Fiscal First Quarter 2018 Conference Call Information
The Company will hold a conference call and webcast to discuss
its fiscal first quarter-end 2018 results on Thursday, February 8, 2018 at 4:30 PM ET. To participate on 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, due to the large number of expected participants, not all questions may be answered.
Live webcast: https://services.choruscall.com/links/apdn180208.html
Replay (available 1 hour following the conclusion of the
live call through February 9, 2018):
For those investors unable to attend the live call, a copy of
the presentation is expected to be posted by end of business on February 8, 2018 and available under the Events and Presentations'
section of the company's Investor Relations web site: http://adnas.com/adnas_home/investors/.
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 business. Our management believes that these non-GAAP financial measures
provide meaningful supplemental information regarding the performance of our business 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 is a provider of molecular
technologies that enable supply chain security, anti-counterfeiting and anti-theft technology, product genotyping and DNA mass
production for diagnostics and therapeutics.
We make life real and safe by providing
innovative, molecular-based technology solutions and services that can help protect products, brands, entire supply chains, and
intellectual property of companies, governments and consumers from theft, counterfeiting, fraud and diversion. The proprietary
DNA-based CertainT platform can be used to identify, tag, test, and track products, to help assure authenticity,
origin, traceability, sustainability and quality of products.
SigNature DNA describes
the core technology ingredient that is at the heart of a family of uncopyable, security and authentication solutions such as SigNature T
and fiberTyping , targeted towards textiles and apparel, BackTrac and DNAnet , for
anti-theft and loss prevention, and digitalDNA , providing powerful track-and-trace. All provide a forensic chain
of evidence, and can be used to prosecute perpetrators. Applied DNA Sciences is also engaged in the large-scale production of
specific DNA sequences using the polymerase chain reaction.
Visit adnas.com for more
Visit adnas.com for more
Forward-Looking Statements
by Applied DNA in this press release may be "forward-looking" in nature within the meaning of the Private Securities
Litigation 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 our lack of significant revenues, limited financial resources,
limited market acceptance, history of net losses, shifting enforcement priorities of US federal laws relating to cannabis, market
competition and various other factors detailed from time to time in Applied DNA's SEC reports and filings, including our
Annual Report on Form 10-K filed on December 28, 2017 and our subsequent quarterly report on Form 10-Q filed on February 8, 2018,
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 to reflect the occurrence of unanticipated events, unless
otherwise required by law.
Investor contact: Sanjay
M. Hurry, 212-838-3777, LHA Investor Relations, shurry@lhai.com
Media contact: Susan
Forman, Dian Griesel Int'l., 212-825-3210, sforman@dgicomm.com
Financial Tables Follow
APPLIED DNA SCIENCES, INC.
CONSOLIDATED BALANCE SHEETS
| December 31, 2017 | September 30, |2017 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 4,764,553 | $ | 2,959,781 | ||||
| Accounts receivable, net of allowance of $10,000 at December 31, 2017 and September 30, 2017, respectively | 2,155,737 | 2,587,969 | ||||||
| Inventories | 314,088 | 326,468 | ||||||
| Prepaid expenses and other current assets | 540,048 | 366,954 | ||||||
| Total current assets | 7,774,426 | 6,241,172 | ||||||
| Property and equipment, net | 500,452 | 523,688 | ||||||
| Other assets: | ||||||||
| Deposits | 62,453 | 61,626 | ||||||
| Goodwill | 285,386 | 285,386 | ||||||
| Intangible assets, net | 986,260 | 1,042,076 | ||||||
| Total Assets | $ | 9,608,977 | $ | 8,153,948 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 1,127,536 | $ | 944,133 | ||||
| Deferred revenue | 342,960 | 351,735 | ||||||
| Total current liabilities | 1,470,496 | 1,295,868 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' Equity | ||||||||
| Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- shares issued and outstanding as of December 31, 2017 and September 30, 2017 | - | - | ||||||
| Series A Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- issued and outstanding as of December 31, 2017 and September 30, 2017 | - | - | ||||||
| Series B Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- issued and outstanding as of December 31, 2017 and September 30, 2017 | - | - | ||||||
| Common stock, par value $0.001 per share; 500,000,000 shares authorized; 30,112,057 and 27,377,057 shares issued and outstanding as of December 31, 2017 and September 30, 2017, respectively | 30,112 | 27,377 | ||||||
| Additional paid in capital | 247,965,236 | 243,503,858 | ||||||
| Accumulated deficit | (239,856,867 | ) | (236,673,155 | ) | ||||
| Total stockholders' equity | 8,138,481 | 6,858,080 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 9,608,977 | $ | 8,153,948 |
APPLIED DNA SCIENCES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended December 31, | ||||||||
| 2017 | 2016 | |||||||
| Revenues: | ||||||||
| Product revenues | $ | 350,133 | $ | 704,417 | ||||
| Service revenues | 297,544 | 198,591 | ||||||
| Total revenues | 647,677 | 903,008 | ||||||
| Cost of revenues | 331,440 | 274,832 | ||||||
| Operating expenses: | ||||||||
| Selling, general and administrative | 2,593,154 | 3,900,917 | ||||||
| Research and development | 740,067 | 518,628 | ||||||
| Depreciation and amortization | 157,648 | 161,977 | ||||||
| Total operating expenses | 3,490,869 | 4,581,522 | ||||||
| LOSS FROM OPERATIONS | (3,174,632 | ) | (3,953,346 | ) | ||||
| Other income (expense): | ||||||||
| Interest income, net | - | 1,331 | ||||||
| Other (expense) income, net | (9,080 | ) | (9,369 | ) | ||||
| Loss before provision for income taxes | (3,183,712 | ) | (3,961,384 | ) | ||||
| Provision for income taxes | - | - | ||||||
| NET LOSS | $ | (3,183,712 | ) | $ | (3,961,384 | ) | ||
| Net loss per share-basic and diluted | $ | (0.12 | ) | $ | (0.16 | ) | ||
| Weighted average shares outstanding- Basic and diluted | 27,674,340 | 25,427,407 |
APPLIED DNA SCIENCES, INC.
CALCULATION AND RECONCILIATION OF ADJUSTED
| Three Months Ended December 31, | ||||||||
| 2017 | 2016 | |||||||
| Net Loss | $ | (3,183,712 | ) | $ | (3,961,384 | ) | ||
| Interest income, net | - | (1,331 | ) | |||||
| Depreciation and amortization | 157,648 | 161,977 | ||||||
| Stock based compensation expense | 231,113 | 1,458,020 | ||||||
| Bad debt expense | - | 5,646 | ||||||
| Total non-cash items | 388,761 | 1,624,312 | ||||||
| Consolidated Adjusted EBITDA (loss) | $ | (2,794,951 | ) | $ | (2,337,072 | ) |