Full Press Release Details
Second Quarter Fiscal 2022 Financial Results
Record $6.1 Million, up 130% Year-over-Year and 48% Sequentially -
- Cash at $6.5 Million Inclusive of Net Proceeds
from Registered Direct Offering and Strong Cash Collections -
- Receives Request for Shipment of Traceable
Tagged Cotton Catalyzed by Uyghur Forced Labor Prevention Act Subsequent to Reported Quarter -
- Company to Hold Conference Call and Webcast
Today, Thursday, May 12, 2022, at 4:30 PM ET -
STONY BROOK, N.Y. - May 12, 2022
- Applied DNA Sciences, Inc. (NASDAQ: APDN) (the "Company"), a leader in cell-free, enzymatic DNA production,
today announced consolidated financial results for the second quarter of fiscal 2022, ended March 31, 2022.
"We delivered strong momentum
in revenue growth with a second consecutive quarter of record revenues that reduced cash burn while advancing our strategic priority
to develop and further position our LinearDNA platform as a novel approach for the production of the increasing number of nucleic
acid-based therapeutic applications under development by the biotherapeutics industry," stated Dr. James A. Hayward, president
and CEO of Applied DNA. "Our clinical lab subsidiary, ADCL (Applied DNA Clinical Labs), continues to power our topline performance
in the first half of fiscal 2022 with revenues that exceed total revenues for the entirety of fiscal 2021. During the quarter, COVID-19
testing demand remained durable due to our largely academic and corporate client base that continues to test to protect their stakeholders
and mitigate disruptions to their operations."
"Similarly, we are starting
to realize the value from investments made last year to optimize and advance our LinearDNA platform to commercialization. We are generating
compelling data, most recently concluding in vitro studies that demonstrated that LinearDNA encapsulated by LNP expresses well
and giving us greater confidence that a LinearDNA-LNP platform is the best delivery means for LinearDNA as a direct therapeutic agent.
We concurrently progressed the use of the platform as a rapid IVT templating and production system for RNA-based therapeutics that is,
we feel, the most proximal path to incremental biotherapeutic revenues. The second half of the fiscal year should also feature data on
the applicability of our LinearDNA platform to the manufacture of advanced therapies, including mRNA, adoptive cell therapies, and DNA-based
vaccines. In many instances a key gating factor to rapid and broader adoption
of novel and potentially clinically invaluable therapies is the bottleneck of plasmid DNA."
Continued Dr. Hayward, "Looking
ahead to the second half of the fiscal year, our ability to continue to mitigate cash burn and further commercialize the LinearDNA platform
will be informed by the durability of ADCL-generated revenues, as well as the conversion of supply chain security opportunities into
CertainT platform orders. We expect COVID-19 testing demand to attenuate over the summer months, given our concentration of academic
clients but foresee a path to demand resumption in the fall with the start of the new academic year. We have continued to diversify our
client base, most notable of which was the addition of an investment management organization after the close of the reported quarter.
In addition, we will begin validation of a new testing platform in ADCL that empowers several forms of high-value genetic testing, including
pharmacogenetics, for which we believe consumer demand is growing."
"Furthermore, after the close of the
reported quarter, our cotton merchant partner received a request to ship the first quantities for traceable tagged cotton that is
directly attributable to the recent passage of the Uyghur Forced Labor Prevention Act (the "Act"), a new Federal law.
Our team has presented to many members of Congress, Federal agencies, and Committees regarding the utility of our platform in
enforcing the Act. Though not expected to be material to revenue in the current fiscal year, the shipment anticipates a global
brand's multi-year commitment to our CertainT platform through a scaled deployment across its many supply chains. We believe
that the passage of the Act is a trigger point for the wider adoption of our CertainT platform that holds the potential for
molecular taggant sales for textile fiber applications to become a second material revenue stream along with ADCL revenue. With less
than 45 days before the Act goes into force, interest in CertainT by brands and their supply chains has never been
Concluded Dr. Hayward, "We
believe the business model of Applied DNA is unique in the biotechnology sector. Our expertise in polymerase chain reaction (PCR) empowers
the Company to commercialize DNA technologies across targeted industries to give us multiple sources of revenue growth and cash flow
to help support the development of the LinearDNA platform to produce biotherapeutic DNA."
Recent Operational Highlights:
Second Quarter Fiscal 2022 Financial Highlights:
Second Quarter Fiscal 2022 Conference Call Information
The Company will hold a conference call and webcast
to discuss its second quarter fiscal 2022 financial results today, Thursday, May 12, 2022, 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.
Live and Replay of webcast: https://services.choruscall.com/mediaframe/webcast.html?webcastid=oxAfF9iN
Telephonic replay (available 1 hour following the conclusion of
the live call through February 17, 2022):
will also be posted to the Company Events' sub-page of the Company's Investor Relations website and
embedded into the live webcast.
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
DNA is commercializing LinearDNA , its proprietary, large-scale polymerase chain reaction ("PCR")-based manufacturing
platform that allows for the large-scale cell-free production of specific DNA sequences.
LinearDNA platform has utility in the nucleic acid-based in vitro diagnostics and preclinical nucleic acid-based drug
development and manufacturing market. The platform is used to manufacture DNA for customers as components of in vitro diagnostic
tests and for preclinical nucleic acid-based drug development in the fields of adoptive cell therapies (CAR T and TCR T therapies), DNA
vaccines (anti-viral and cancer), RNA therapies, clustered regularly interspaced short palindromic repeats (CRISPR) based therapies,
LinearDNA platform also has non-biologic applications, such as supply chain security, anti-counterfeiting and anti-theft technology.
Key end-markets include textiles, pharmaceuticals and nutraceuticals, and cannabis, among others.
its deep expertise in nucleic acid-based technologies, the Company has also established safeCircle , a high-turnkey solution for
population-scale COVID-19 testing. safeCircle is designed to look for infection within defined populations or communities utilizing high
throughput testing methodologies that increase testing efficiencies and provide for rapid turn-around-times.
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.'
DNA is a member of the Russell Microcap Index.
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, the substantial doubt about its