Full Press Release Details
Applied DNA Reports Fiscal First Quarter
2019 Financial Results
Company To Hold Conference Call and Webcast
Thursday, February 7, 2019 at 4:30 PM EST.
- February 7, 2019 - Applied DNA Sciences, Inc. (NASDAQ: APDN) ("Applied DNA" or the "Company"), announced
financial results for the fiscal 2019 first quarter ended December 31, 2018.
"Our performance for the quarter reflects
a consistent year-over-year foundation to our cotton business and continued execution under our multi-year contracts with the U.S.
Department of Defense, as well as further progress made on our joint development agreements with partners in cannabis and pharmaceuticals,"
said Dr. James A. Hayward, president and chief executive officer of Applied DNA. "During the quarter we saw the first CertainT -certifiable
synthetics home textiles products committed by retailers, a bellwether milestone for other manufacturers of CertainT synthetics
in our pipeline. We also moved to refine our go-to-market and partnering strategy to drive tighter focus on select verticals and
"In our LineaRx subsidiary, we continued
the development of linear DNA for nucleic acid-based therapies that have already shown promising early results in the field of
adoptive T-cell therapy and nucleic-acid-based vaccine, and continued sponsored R&D on behalf of contract research customers.
LineaRx customers are increasing in number and diversity and we are starting to see greater than typical dollar-value opportunities
enter the pipeline," continued Dr. Hayward. "In addition to its therapeutics work, subsequent to the close of the quarter,
the Company received a purchase order in excess of $500,000 for linear DNA in diagnostics to be delivered over the next 12-18 months.
We continue to make strong technical progress on our proprietary non-viral, plasmid-free CAR-T platform, with early promising results
in the high-throughput transfection of human T-cells with linear DNA."
"Subsequent to the close of the quarter,
we announced two non-binding MOUs to enter the Asian supply chain market in Taiwan: with Sun Chemical Supply Co. Ltd ("Sun
Chemical") that offers us geographic and domain knowledge in selling and supporting textile manufacturers in China and other
Asian countries; and with Tex-Ray Industrial Co., Ltd ("Tex-Ray"), a world-leading innovator and supply chain integrator
in performance fibers and fabrics that gives us entr e to supply chains spanning three continents and serving global brands.
To help shape the go-to-market strategy and business development efforts and to accelerate our sales cycle, we appointed Stephen
Birkhold to our Strategic Advisory Board, who brings a long and stellar history in brand management to hone our strategy in this
Concluded Dr. Hayward, "In our cannabis
and pharmaceutical businesses, we are progressing towards commercialization by putting in place the necessary operational and marketing
infrastructure to enable our partners TheraCann and Colorcon to fully engage our respective, joint customer bases. In particular,
our TheraCann partnership is positioning us at the forefront of a burgeoning industry, which we believe needs a safe and secure
way to manage the legal cannabis supply chain. Our taggant technology is an integral component of TheraCann's ETCH Biotrace
seed-to-sale solution, and we believe we are well positioned to international markets."
Fiscal First Quarter
2019 Financial Results:
Select Recent Operational
Fiscal First Quarter 2019 Conference Call Information
The Company will hold a conference call and webcast to discuss
its fiscal first quarter-end 2019 results on Thursday, February 7, 2019 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/apdn190207.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, 2019 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.
Join our mailing list.
Common stock listed on NASDAQ under the symbol APDN, and warrants
are listed under the symbol APDNW.
Forward-Looking Statements
The statements made 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 its history of net losses, limited financial resources, limited market acceptance 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 18, 2018 and our subsequent quarterly report on Form 10-Q filed on February 7, 2019, and other reports we file 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 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, 2018 | September 30, 2018 | |||||||
| ASSETS | (unaudited) | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 3,137,844 | $ | 1,659,564 | ||||
| Accounts receivable, net | 614,764 | 1,485,938 | ||||||
| Inventories | 225,289 | 221,369 | ||||||
| Prepaid expenses and other current assets | 622,157 | 635,174 | ||||||
| Total current assets | 4,600,054 | 4,002,045 | ||||||
| Property and equipment, net | 369,130 | 419,774 | ||||||
| Other assets: | ||||||||
| Deposits | 62,362 | 62,325 | ||||||
| Goodwill | 285,386 | 285,386 | ||||||
| Intangible assets, net | 831,845 | 864,203 | ||||||
| Total Assets | $ | 6,148,777 | $ | 5,633,733 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 1,357,712 | $ | 965,167 | ||||
| Deferred revenue | 1,375,496 | 1,856,693 | ||||||
| Total current liabilities | 2,733,208 | 2,821,860 | ||||||
| Long-term accrued liabilities | 508,426 | 470,739 | ||||||
| Secured convertible notes payable | 2,141,122 | 1,586,631 | ||||||
| Total liabilities | 5,382,756 | 4,879,230 | ||||||
| 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, 2018 and September 30, 2018 | - | - | ||||||
| Series A Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- issued and outstanding as of December 31, 2018 and September 30, 2018 | - | - | ||||||
| Series B Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- issued and outstanding as of December 31, 2018 and September 30, 2018 | - | - | ||||||
| Common stock, par value $0.001 per share; 500,000,000 shares authorized; 35,612,057 and 30,112,057 shares issued and outstanding as of December 31, 2018 and September 30, 2018, respectively | 35,612 | 30,112 | ||||||
| Additional paid in capital | 251,837,589 | 249,090,474 | ||||||
| Accumulated deficit | (251,107,180 | ) | (248,366,083 | ) | ||||
| Total stockholders' equity | 766,021 | 754,503 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 6,148,777 | $ | 5,633,733 |
APPLIED DNA SCIENCES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended December 31, | Three Months Ended September 30, | |||||||||||
| 2018 | 2017 | 2018 | ||||||||||
| Revenues: | ||||||||||||
| Product revenues | $ | 321,875 | $ | 350,133 | $ | 597,394 | ||||||
| Service revenues | 562,447 | 297,544 | 597,971 | |||||||||
| Total revenues | 884,322 | 647,677 | 1,195,365 | |||||||||
| Cost of revenues | 153,485 | 331,440 | 250,659 | |||||||||
| Operating expenses: | ||||||||||||
| Selling, general and administrative | 3,082,380 | 2,593,154 | 3,568,961 | |||||||||
| Research and development | 709,564 | 740,067 | 716,693 | |||||||||
| Depreciation and amortization | 135,052 | 157,648 | 124,452 | |||||||||
| Total operating expenses | 3,926,996 | 3,490,869 | 4,410,106 | |||||||||
| LOSS FROM OPERATIONS | (3,196,159 | ) | (3,174,632 | ) | (3,465,400 | ) | ||||||
| Other income (expense): | ||||||||||||
| Interest (expense) income, net | (31,611 | ) | - | - | ||||||||
| Other (expense) income, net | (6,550 | ) | (9,080 | ) | (9,882 | ) | ||||||
| Loss before provision for income taxes | (3,234,320 | ) | (3,183,712 | ) | (3,475,282 | ) | ||||||
| Provision for income taxes | - | - | - | |||||||||
| NET LOSS | $ | (3,234,320 | ) | $ | (3,183,712 | ) | $ | 3,475,282 | ||||
| Net loss per share-basic and diluted | $ | (0.11 | ) | $ | (0.12 | ) | $ | (0.12 | ) | |||
| Weighted average shares outstanding- Basic and diluted | 30,470,753 | 27,674,340 | 30,112,057 |
APPLIED DNA SCIENCES, INC.
CALCULATION AND RECONCILIATION OF ADJUSTED