Full Press Release Details
Applied DNA Sciences Reports
Fiscal First Quarter 2016 Financial Results
Company To Hold Conference Call and Webcast
Today at 4:30 PM Eastern Time
BROOK, N.Y., February 10, 2016.Applied DNA Sciences, Inc. (NASDAQ: APDN) ("Applied DNA") (Twitter: @APDN), a provider
of DNA-based supply chain, anti-counterfeiting and anti-theft technology, product genotyping and product authentication solutions,
announced financial results for the fiscal 2016 first quarter ended December 31, 2015.
"Our fiscal first quarter performance
reflects continued penetration of near-term business verticals beyond textiles, our most mature vertical," stated Dr. James
A. Hayward, President and Chief Executive Officer of Applied DNA Sciences. "We are pleased to report revenue growth on a
year-over-year basis, which was driven by orders from our Diagnostics and Asset Marking verticals and two government contract awards.
As expected, seasonality of the cotton ginning season caused revenue to dip from the fiscal 2015 fourth quarter".
Dr. Hayward continued, "Our DNA-based
solutions are applicable to multiple verticals; our momentum was sustained this quarter toward commercial deployment as part of
our ongoing strategy to diversify our revenue base as our DNA-based security solutions for supply chains continued to gain traction.
The textiles market affords us substantial opportunity and we are expanding our penetration of this market with additional brands
and retailers that should translate to greater diversity of textile revenue than we achieved last year."
First Quarter Financial Highlights:
Dr. Hayward concluded, "Applied DNA
remains well positioned to benefit from the large and growing demand for supply chain security and anti-counterfeiting solutions
in fiscal 2016. Our pipeline of pilot projects is expected to continue to deepen the validation of our technology and drive much
stronger fundamentals, as evidenced by our success in purifying cotton supply chains. We remain committed to growing the business
in a disciplined, structured way that applies our financial resources to maximize returns. As we move to replicate recent successes
across verticals with near-term drivers of growth, the growing awareness and interest we are receiving from the marketplace serves
to further validate our value proposition and strategy."
Fiscal 2016 First Quarter Conference Call Information
The Company will hold a conference call and webcast to discuss its
fiscal 2016 first quarter results on Wednesday, February10, 2016 at 4:30 PM EST.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.
Reserve your conference call seat now at: http://dpregister.com/10079875.
Conference call dial-in information will be provided upon completion of the registration process.
Live webcast: http://services.choruscall.com/links/apdn160202
Replay (available 1 hour following the conclusion of the live
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 10, 2016 and available under the "Investor Information"
tab of the company's web site.
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 prepared and 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 it allows
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) change in fair value of warrant liability, (ii) the loss on conversion of promissory notes, (iii) stock-based compensation
and (iv) other non-cash expenses.
About Applied DNA Sciences
life real and safe by providing botanical-DNA based security and authentication 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. SigNature DNA describes the platform ingredient that is at the heart of all of our security and authentication
solutions. SigNature DNA is at the core of a family of uncopyable products such as DNAnet , our anti-theft product, SigNature
T, targeted toward textiles, and digitalDNA , providing powerful track and trace. All provide a forensic chain of evidence
and can be used to prosecute perpetrators. We are also engaged in the large-scale production of specific DNA sequences using the
polymerase chain reaction.
Applied DNA's common stock is listed on NASDAQ under the symbol
APDN, and its warrants are listed under the symbol APDNW.
Forward Looking Statements
The statements made by APDN 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 APDN'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 APDN. Actual results could differ materially from
those projected due to our short operating history, limited financial resources, limited market acceptance, market competition
and various other factors detailed from time to time in APDN's SEC reports and filings, including our Annual Report on Form
10-K filed on December 14, 2015, which are available at www.sec.gov. APDN 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:Debbie
Bailey, 631-240-8817, debbie.bailey@adnas.com
Sanjay M. Hurry, 212-838-3777, LHA, shurry@lhai.com
Media contact: Susan
Forman, Dian Griesel Int'l., 212-825-3210,sforman@dgicomm.com
Financial Tables Follow
APPLIED DNA SCIENCES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
| December 31, 2015 | September 30, 2015 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 12,382,907 | $ | 7,312,184 | ||||
| Accounts receivable, net of allowance of $7,140 at December 31, 2015 and September 30, 2015 | 3,923,997 | 3,929,517 | ||||||
| Prepaid expenses and other current assets | 187,355 | 293,351 | ||||||
| Total current assets | 16,494,259 | 11,535,052 | ||||||
| Property, plant and equipment, net of accumulated depreciation of $955,765 at December 31, 2015 and $852,867 at September 30, 2015 | 561,912 | 572,107 | ||||||
| Other assets: | ||||||||
| Long term accounts receivables | 1,500,000 | 1,500,000 | ||||||
| Deposits | 58,488 | 62,988 | ||||||
| Goodwill | 285,386 | 285,386 | ||||||
| Intangible assets, net of accumulated amortization of $284,816 and $238,368 at December 31, 2015 and September 30, 2015, respectively | 1,584,473 | 1,598,779 | ||||||
| Total Assets | $ | 20,484,518 | $ | 15,554,312 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 2,110,995 | $ | 2,385,006 | ||||
| Deferred revenue | 57,526 | 282,050 | ||||||
| Total current liabilities | 2,168,521 | 2,667,056 | ||||||
| Long term accounts payable | 320,400 | 320,400 | ||||||
| Total liabilities | 2,488,921 | 2,987,456 | ||||||
| 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, 2015 and September 30, 2015 | - | - | ||||||
| Series A Preferred stock, par value $0.001 per share, 10,000,000 shares authorized; -0- issued and outstanding as of December 31, 2015 and September 30, 2015 | - | - | ||||||
| Series B Preferred stock, par value $0.001 per share, 10,000,000 shares authorized; -0- issued and outstanding as of December 31, 2015 and September 30, 2015 | - | - | ||||||
| Common stock, par value $0.001 per share; 500,000,000 shares authorized at December 31, 2015 and September 30, 2015; 24,072,092 and 21,504,578 shares issued and outstanding as of December 31, 2015 and September 30, 2015, respectively | 24,073 | 21,505 | ||||||
| Additional paid in capital | 232,539,203 | 224,186,760 | ||||||
| Accumulated deficit | (214,567,679 | ) | (211,641,409 | ) | ||||
| Total stockholders' equity | 17,995,597 | 12,566,856 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 20,484,518 | $ | 15,554,312 |
APPLIED DNA SCIENCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended December 31, | ||||||||
| 2015 | 2014 | |||||||
| Revenues | $ | 1,324,114 | $ | 1,241,802 | ||||
| Operating expenses: | ||||||||
| Selling, general and administrative | 3,554,362 | 4,671,490 | ||||||
| Research and development | 471,934 | 278,288 | ||||||
| Depreciation and amortization | 218,346 | 109,726 | ||||||
| Total operating expenses | 4,244,642 | 5,059,504 | ||||||
| LOSS FROM OPERATIONS | (2,920,528 | ) | (3,817,702 | ) | ||||
| Other income (expense): | ||||||||
| Interest income (expense), net | 2,845 | (31,875 | ) | |||||
| Other (expense) income, net | (8,587 | ) | (3,685 | ) | ||||
| Loss on conversion of promissory notes | - | (980,842 | ) | |||||
| Loss on change in fair value of warrant liability | - | (2,994,540 | ) | |||||
| Net loss before provision for income taxes | (2,926,270 | ) | (7,828,644 | ) | ||||
| Provision for income taxes | - | - | ||||||
| NET LOSS | $ | (2,926,270 | ) | $ | (7,828,644 | ) | ||
| Net loss per share-basic and diluted | $ | (0.13 | ) | $ | (0.51 | ) | ||
| Weighted average shares outstanding- | ||||||||
| Basic and diluted | 22,542,176 | 15,456,566 |
APPLIED DNA SCIENCES, INC.
CALCULATION AND RECONCILIATION OF ADJUSTED EBITDA
| Three Month Period Ended | ||||||||||||
| December 31, | ||||||||||||
| 2015 | 2014 | % Variance | ||||||||||
| Net Loss | $ | (2,926,270 | ) | $ | (7,828,644 | ) | ||||||
| Interest expense (income), net | (2,845 | ) | 31,875 | |||||||||
| Depreciation and amortization | 218,346 | 109,726 | ||||||||||
| (Gain) loss on change in fair value of warrant liability | - | 2,994,540 | ||||||||||
| Stock based compensation expense | 455,110 | 1,998,524 | ||||||||||
| Loss on conversion of promissory notes | - | 980,842 | ||||||||||
| Bad debt expense | 10,000 | 2,779 | ||||||||||
| Total non-cash items | 680,611 | 6,118,286 | ||||||||||
| Consolidated Adjusted EBITDA (loss) | $ | (2,245,659 | ) | $ | (1,710,358 | ) | 31 | % |
| Three Month Period Ended | ||||||||||||
| September 30, | ||||||||||||
| 2015 | ||||||||||||
| Net Loss | $ | (496,034 | ) | |||||||||
| Interest expense (income), net | (3,340 | ) | ||||||||||
| Depreciation and amortization | 136,496 | |||||||||||
| (Gain) loss on change in fair value of warrant liability | - | |||||||||||
| Stock based compensation expense | 562,933 | |||||||||||
| Loss on conversion of promissory notes | - | |||||||||||
| Bad debt expense | 13,246 | |||||||||||
| Total non-cash items | 709,335 | |||||||||||
| Consolidated Adjusted EBITDA (loss) | $ | 213,301 |