Full Press Release Details
Applied DNA Reports Fiscal Third Quarter
2018 Financial Results
Company to Hold Conference Call and Webcast
Monday, August 13, 2018 at 4:30 PM EST-
STONY BROOK, N.Y. - August
13, 2018 - Applied DNA Sciences, Inc. (NASDAQ: APDN) ("Applied DNA" or the "Company"), announced financial
results for the fiscal 2018 third quarter ended June 30, 2018.
Commenting on Applied DNA's results
for the fiscal third quarter, Dr. James A. Hayward, president and CEO, stated, "Results for the quarter did not fulfill our
expectations for recognized revenue due to the shipping of an initial cotton DNA order under extended payment terms. Nonetheless,
our performance stands out for the progress we have made in driving commercial adoption of our DNA taggant platform through large
commercial-scale feasibility activities:
In addition to these
activities under existing development contracts, we signed new agreements with large marquee companies, UL and Everledger,
that we expect will broaden our access to new markets and increase our value proposition to customers. Concurrently, business
in our biopharma research and manufacturing offerings has been gaining promising momentum."
Continued, Dr. Hayward, "As global
supply chains move to address growing business imperatives centered on supply chain traceability, transparency and trust, we are
expanding our opportunities for revenue by seeding markets with partners that recognize the value proposition of our taggant technology.
With momentum growing globally for the legalization of cannabis and supply chain participants seeking regulatory compliance, our
launch of the industry's first seed-to-sale cannabis tagging system with TheraCann is timely. Our partner Everledger, endorses
our view that the linkage of digital blockchain-enabled transactions with a forensic physical goods identifier increases the value
of the platform to global ecosystems. That identifier is our DNA taggant.
"We also reached new milestones
in biotherapeutic contract research and contract manufacturing of linear DNA, with multiple firms throughout Europe and the US.
We believe that our ability to deliver large-scale PCR-based DNA production for DNA/RNA vaccines, gene therapies, adoptive cell
therapies and diagnostics, may eliminate the risks associated with current plasmid- and virus-based genetic methods. With these
milestones, we demonstrate the potential to replace plasmid production methods and viral vectors, potentially opening large, high-value
markets that will bring the benefits of our technology to patients.
Concluded Hayward, "Applied DNA
sits at the nexus between global supply chains and market forces dictating the need for increased transparency and responsible
procurement. With our taggant technology platform proven at scale, a foundation of recurring revenues, new commercial agreements
that open previously untapped markets, we are well positioned to leverage tailwinds in the marketplace to deliver sustainable growth
to our shareholders."
Fiscal Third Quarter Financial Results:
Nine-Month Financial Highlights:
Recent Operational Highlights:
Fiscal Third Quarter 2018 Conference Call Information
The Company will hold a conference call and webcast to discuss
its fiscal third quarter-end 2018 results on Monday, August 13, 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.
Replay (available 1 hour following the conclusion of the
live call through August 14, 2018):
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,
personalized medicine and therapeutics.
Applied DNA makes 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 uncopiable, security and authentication solutions, targeted a wide range of industries, including
but not limited to, pharmaceuticals and nutraceuticals, textiles and defense materials and DNAnet , for anti-theft and loss
prevention, and digitalDNA , providing powerful track-and-trace. Our products provide a forensic chain of evidence in
large commercial ecosystems.
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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 our lack of significant revenues, limited financial resources, limited market acceptance, history of net losses,
market competition, risk of not obtaining regulatory approval 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 reports
on Form 10-Q filed on February 8, 2018, May 3, 2018 and August 13, 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
- Financial Tables Follow -
APPLIED DNA SCIENCES, INC.
CONSOLIDATED BALANCE SHEETS
| June 30, 2018 | September 30, 2017 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 2,514,816 | $ | 2,959,781 | ||||
| Accounts receivable, net | 1,414,948 | 2,587,969 | ||||||
| Inventories | 295,278 | 326,468 | ||||||
| Prepaid expenses and other current assets | 602,800 | 366,954 | ||||||
| Total current assets | 4,827,842 | 6,241,172 | ||||||
| Property and equipment, net | 535,805 | 523,688 | ||||||
| Other assets: | ||||||||
| Deposits | 62,380 | 61,626 | ||||||
| Goodwill | 285,386 | 285,386 | ||||||
| Intangible assets, net | 896,562 | 1,042,076 | ||||||
| Total Assets | $ | 6,607,975 | $ | 8,153,948 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 818,642 | $ | 944,133 | ||||
| Deferred revenue | 2,298,152 | 351,735 | ||||||
| Total current liabilities | 3,116,794 | 1,295,868 | ||||||
| Long-term accrued liabilities | 433,051 | - | ||||||
| Total liabilities | 3,549,845 | 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 June 30, 2018 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 June 30, 2018 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 June 30, 2018 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 June 30, 2018 and September 30, 2017, respectively | 30,112 | 27,377 | ||||||
| Additional paid in capital | 247,918,818 | 243,503,858 | ||||||
| Accumulated deficit | (244,890,800 | ) | (236,673,155 | ) | ||||
| Total stockholders' equity | 3,058,130 | 6,858,080 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 6,607,975 | $ | 8,153,948 |
APPLIED DNA SCIENCES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Revenues: | ||||||||||||||||
| Product revenues | $ | 393,758 | $ | 1,493,449 | $ | 1,230,232 | $ | 2,887,054 | ||||||||
| Service revenues | 622,597 | 303,933 | 1,477,746 | 718,709 | ||||||||||||
| Total revenues | 1,016,355 | 1,797,382 | 2,707,978 | 3,605,763 | ||||||||||||
| Cost of revenues | 252,562 | 232,348 | 956,155 | 804,552 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 2,882,158 | 3,402,817 | 7,471,917 | 10,534,105 | ||||||||||||
| Research and development | 625,006 | 603,095 | 2,034,886 | 1,757,616 | ||||||||||||
| Depreciation and amortization | 122,999 | 161,441 | 425,927 | 486,786 | ||||||||||||
| Total operating expenses | 3,630,163 | 4,167,353 | 9,932,730 | 12,778,507 | ||||||||||||
| LOSS FROM OPERATIONS | (2,866,370 | ) | (2,602,319 | ) | (8,180,907 | ) | (9,977,296 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest income, net | - | 228 | - | 2,763 | ||||||||||||
| Other (expense) income , net | (21,353 | ) | (8,758 | ) | (36,738 | ) | (26,556 | ) | ||||||||
| Loss before provision for income taxes | (2,887,723 | ) | (2,610,849 | ) | (8,217,645 | ) | (10,001,089 | ) | ||||||||
| Provision for income taxes | - | - | - | - | ||||||||||||
| NET LOSS | $ | (2,887,723 | ) | $ | (2,610,849 | ) | $ | (8,217,645 | ) | $ | (10,001,089 | ) | ||||
| Net loss per share-basic and diluted | $ | (0.10 | ) | $ | (0.10 | ) | $ | (0.28 | ) | $ | (0.38 | ) | ||||
| Weighted average shares outstanding- | ||||||||||||||||
| Basic and diluted | 30,112,057 | 26,374,023 | 29,290,555 | 26,049,866 |
APPLIED DNA SCIENCES, INC.
CALCULATION AND RECONCILIATION OF ADJUSTED