Full Press Release Details
Applied DNA Sciences Reports
Fiscal First Quarter 2017 Financial Results
Hold Conference Call and Webcast Today at 4:30 PM Eastern Time
BROOK, N.Y., February 9, 2017 - Applied DNA Sciences, Inc. (NASDAQ: APDN) ("Applied DNA", or "the Company"),
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 2017 first quarter ended December 31, 2016.
"Our fiscal first quarter results reflect variability in the
recognition of our deferred cotton revenue due to the timing of commitments in our textile business that masks an expansion in
our base of business over the prior quarter," stated Dr. James Hayward, president and CEO of Applied DNA. "During the
quarter, we shipped SigNature T to mark a new premium cotton varietal and subsequent to quarter end, on-boarded a seventh U.S.
gin. We expect commitments for marked cotton utilizing taggant shipped during the fourth fiscal quarter of 2016 to allow for the
release of more deferred revenues in the current quarter as well as the remainder of fiscal 2017. We also began to mark synthetic
fiber with Techmer for use in the automotive industry and initiated a pilot project in an adjacent market that addresses the issues
of dilution and diversion in the fertilizer industry's supply chain.
First Quarter Financial Highlights:
"We made steady progress in the quarter to expand our penetration
of business verticals with near-term drivers of growth while building our recurring revenue stream," continued Dr. Hayward.
"In the most visible sign of market adoption of SigNature T DNA to date, through one of our partners, we will provide SigNature
T DNA to a prominent North American retailer over a multi-year period. This agreement represents the maturing of our cotton business,
giving us for the first time revenue certainty on an annual basis beginning with the 2017 ginning season. In our asset marking
vertical, the largest auto insurance company in Scandinavia has begun to actively promote our SmartDNA
marking kit to policy holders of a second auto brand. Growing market adoption by these and other key business verticals, we believe,
sets the stage for greater and more diversified revenue opportunities."
Operational Highlights:
Concluded Dr. Hayward, "As growing
market awareness converts into adoption, the value proposition of SigNature T DNA has attracted individuals to the Company whose
cumulative industry expertise and business acumen can help shape our growth and open new avenues for business development. Dr.
Mehmood Khan, vice-chairman of PepsiCo, and Ray Kelly, former Commissioner of the New York Police Department, will add valuable
insight into our business strategy as we build our base of business across key verticals. Together with the opportunities ahead
of us and the financial resources with which to pursue them, we believe Applied DNA Sciences is well positioned to succeed."
Fiscal 2017 First Quarter Conference Call Information
The Company will hold a conference call and webcast to discuss its
fiscal 2017 first quarter results on Thursday February 9, 2017 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.
Live webcast: http://services.choruscall.com/links/apdn170209.html
Replay (available 1 hour following the conclusion of the live
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) stock-based compensation and (ii) other non-cash expenses.
About Applied DNA Sciences
We make 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.
Our patented DNA-based solutions can be used to identify, tag, track, and trace products, to help assure authenticity, traceability
and quality of products. SigNature DNA describes the platform ingredient that is at the heart of a family of uncopyable,
security and authentication solutions such as SigNature T and fiberTyping , targeted toward textiles
and apparel, 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. We are also engaged in the large-scale
production of specific DNA sequences using the polymerase chain reaction.
Go to adnas.com for more information, events and to learn
more about how Applied DNA Sciences makes life real and safe. Our common stock is listed on NASDAQ under the symbol APDN,
and our publicly traded warrants are listed on NASDAQ 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 6, 2016, which is 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 BALANCESHEETS
| December 31, | September 30, | |||||||
| 2016 | 2016 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 6,701,586 | $ | 4,479,274 | ||||
| Accounts receivable, net of allowance of $23,411 and $32,965 at December 31, 2016 and September 30, 2016, respectively | 6,156,173 | 6,374,895 | ||||||
| Inventories | 323,324 | 297,759 | ||||||
| Prepaid expenses and other current assets | 133,230 | 200,006 | ||||||
| Total current assets | 13,314,313 | 11,351,934 | ||||||
| Property, plant and equipment-net of accumulated depreciation of $1,363,789 and $1,263,200 at December 31, 2016 and September 30, 2016, respectively | 723,790 | 792,499 | ||||||
| Other assets: | ||||||||
| Long term accounts receivables | 920,000 | 1,535,000 | ||||||
| Deposits | 61,626 | 61,126 | ||||||
| Deferred offering costs | - | 13,986 | ||||||
| Goodwill | 285,386 | 285,386 | ||||||
| Intangible assets, net of accumulated amortization of $485,037 and $423,649, as of December 31, 2016 and September 30, 2016, respectively | 1,464,512 | 1,525,900 | ||||||
| Total Assets | $ | 16,769,627 | $ | 15,565,831 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 2,201,021 | $ | 2,247,341 | ||||
| Deferred revenue | 1,791,707 | 1,837,588 | ||||||
| Total current liabilities | 3,992,728 | 4,084,929 | ||||||
| Long term accounts payable | 127,000 | 215,500 | ||||||
| Long term deferred revenue | 468,000 | 900,000 | ||||||
| Total liabilities | 4,587,728 | 5,200,429 | ||||||
| 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, 2016 and September 30, 2016 | - | - | ||||||
| Series A Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- issued and outstanding as of as of December 31, 2016 and September 30, 2016 | - | - | ||||||
| Series B Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- issued and outstanding as of December 31, 2016 and September 30, 2016 | - | - | ||||||
| Common stock, par value $0.001 per share; 500,000,000 shares authorized; 26,351,483 and 24,078,756 shares issued and outstanding as of December 31, 2016 and September 30, 2016, respectively | 26,351 | 24,079 | ||||||
| Additional paid in capital | 239,934,320 | 234,158,711 | ||||||
| Accumulated deficit | (227,778,772 | ) | (223,817,388 | ) | ||||
| Total stockholders' equity | 12,181,899 | 10,365,402 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 16,769,627 | $ | 15,565,831 |
APPLIED DNA SCIENCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended December 31, | ||||||||
| 2016 | 2015 | |||||||
| Revenues: | ||||||||
| Product revenues | $ | 704,417 | $ | 693,214 | ||||
| Service revenues | 198,591 | 630,900 | ||||||
| Total revenues | 903,008 | 1,324,114 | ||||||
| Cost of revenues | 274,832 | 184,268 | ||||||
| Operating expenses: | ||||||||
| Selling, general and administrative | 3,900,917 | 3,169,063 | ||||||
| Research and development | 518,628 | 672,965 | ||||||
| Depreciation and amortization | 161,977 | 218,346 | ||||||
| Total operating expenses | 4,581,522 | 4,060,374 | ||||||
| LOSS FROM OPERATIONS | (3,953,346 | ) | (2,920,528 | ) | ||||
| Other income (expense): | ||||||||
| Interest income (expense), net | 1,331 | 2,845 | ||||||
| Other income (expense), net | (9,369 | ) | (8,587 | ) | ||||
| Loss before provision for income taxes | (3,961,384 | ) | (2,926,270 | ) | ||||
| Provision for income taxes | - | - | ||||||
| NET LOSS | $ | (3,961,384 | ) | $ | (2,926,270 | ) | ||
| Net loss per share-basic and diluted | $ | (0.16 | ) | $ | (0.13 | ) | ||
| Weighted average shares outstanding- Basic and diluted | 25,427,407 | 22,542,176 |
APPLIED DNA SCIENCES, INC.
CALCULATION AND RECONCILIATION OF ADJUSTED
| Three Months Ended December 31, | ||||||||
| 2016 | 2015 | |||||||
| Net Loss | $ | (3,961,384 | ) | $ | (2,926,270 | ) | ||
| Interest (income) expense, net | (1,331 | ) | (2,845 | ) | ||||
| Depreciation and amortization | 161,977 | 218,346 | ||||||
| Stock based compensation expense | 1,458,020 | 455,111 | ||||||
| Bad debt expense | 5,646 | 10,000 | ||||||
| Total non-cash items | 1,624,312 | 680,612 | ||||||
| Consolidated Adjusted EBITDA (loss) | (2,337,072 | ) | (2,245,658 | ) |