Full Press Release Details
Applied DNA Sciences Reports
Fiscal Fourth Quarter and Year End Results
Company To Hold Conference Call and Webcast
Tuesday, December 6, 2016 at 4:30 PM EST.
STONY BROOK, N.Y. - December 6,
2016 - 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 full fiscal year and quarter ended September 30, 2016.
Commenting on Applied DNA's performance
for the fiscal year, Dr. James A. Hayward, president and chief executive officer, stated, "Fiscal 2016 stands out for the
growing maturation of three key verticals - textiles, government/defense and pharmaceuticals - reflecting our efforts
to build demand combined with favorable industry developments. Our financial results for the year, however, do not yet reflect
these efforts. Revenues were negatively impacted by excess 2015 customer inventory cotton taggant that curtailed orders in fiscal
2016 despite an expected multiple in total usage of marked cotton tagged in the 2015 and 2016 ginning seasons, and by the completion
of two non-recurring government contracts. Our pharmaceutical efforts significantly increased at the end of Q3, too soon to see
results in fiscal 2016."
Fiscal Fourth Quarter Results:
Fiscal 2016 Financial Results:
Dr. Hayward added "In textiles, major
brands and retailers are responding to the value proposition of our technology to secure and purify the global cotton supply chain,
and demand for DNA-tagged cotton is now coming from a broader set of supply chain participants. We believe recent reports of mislabeled
Egyptian cotton goods will further catalyze demand given that similar mislabeling occurs in goods manufactured from premium US
Pima cotton. In our government/military vertical, the completion of the RIF and SBIR development contracts has yielded a marking
platform that can mark at high volumes at the point of manufacture of multiple commodities. This platform gives us entr e
into commercial OEMs for the marking of commodities applicable to defense, industrial and consumer markets. Our go-to-market strategy
includes channel partners, such as Action-Pak a contract packaging services provider with a broad base of military, industrial
and commercial suppliers, to further our penetration of these markets and educate OEMs on our validation and authentication solutions
to meet their supply chain security needs."
Operational Highlights:
Concluded Dr. Hayward, "As we look
ahead to fiscal 2017, growing market adoption by participants in our textile, government/defense and pharmaceutical verticals are
expected to give us a foundation for revenue growth with opportunities in diagnostics and asset-marking, among
others, contributing incremental revenue. We remain focused on tight control of operating expenses and have the financial resources
to pursue our growth initiatives."
Fiscal Fourth Quarter 2016 Conference Call Information
The Company will hold a conference call and webcast to discuss its
fiscal fourth quarter and year-end 2016 results on Tuesday, December 6, 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.
Live webcast: https://services.choruscall.com/links/apdn161206.html
Replay (available 1 hour following
the conclusion of the live call):
For those investors unable
to attend the live call, a copy of the presentation is expected to be posted by end of business on December 6, 2016 and available
under the 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) 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
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. Common stock listed on NASDAQ under the symbol APDN, and 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 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
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.
CONSOLIDATED BALANCE SHEETS
| September 30, | ||||||||
| 2016 | 2015 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 4,479,274 | $ | 7,312,184 | ||||
| Accounts receivable, net of allowance of $32,965 and $7,140 at September 30, 2016 and 2015, respectively | 6,374,895 | 3,929,517 | ||||||
| Inventories | 297,759 | - | ||||||
| Prepaid expenses and other current assets | 200,006 | 293,351 | ||||||
| Total current assets | 11,351,934 | 11,535,052 | ||||||
| Property, plant and equipment-net of accumulated depreciation of $1,263,200 and $852,867 at September 30, 2016 and 2015, respectively | 792,499 | 572,107 | ||||||
| Other assets: | ||||||||
| Long term accounts receivables | 1,535,000 | 1,500,000 | ||||||
| Deposits | 61,126 | 62,988 | ||||||
| Deferred offering costs | 13,986 | - | ||||||
| Goodwill | 285,386 | 285,386 | ||||||
| Intangible assets, net of accumulated amortization of $423,649 and $238,368, as of September 30, 2016 and 2015, respectively | 1,525,900 | 1,598,779 | ||||||
| Total Assets | $ | 15,565,831 | $ | 15,554,312 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 2,247,341 | $ | 2,385,006 | ||||
| Deferred revenue | 1,837,588 | 282,050 | ||||||
| Total current liabilities | 4,084,929 | 2,667,056 | ||||||
| Long term accounts payable | 215,500 | 320,400 | ||||||
| Long term deferred revenue | 900,000 | - | ||||||
| Total liabilities | 5,200,429 | 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 September 30, 2016 and 2015 | - | - | ||||||
| Series A Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- issued and outstanding as of September 30, 2016 and 2015 | - | - | ||||||
| Series B Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- issued and outstanding as of September 30, 2016 and 2015 | - | - | ||||||
| Common stock, par value $0.001 per share; 500,000,000 shares authorized; 24,078,756 and 21,504,578 shares issued and outstanding as of September 30, 2016 and 2015, respectively | 24,079 | 21,505 | ||||||
| Additional paid in capital | 234,158,711 | 224,186,760 | ||||||
| Accumulated deficit | (223,817,388 | ) | (211,641,409 | ) | ||||
| Total stockholders' equity | 10,365,402 | 12,566,856 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 15,565,831 | $ | 15,554,312 |
APPLIED DNA SCIENCES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended September 30, | Twelve Months Ended September 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Revenues: | ||||||||||||||||
| Product revenues | $ | 1,381,168 | $ | 3,018,690 | $ | 2,538,202 | $ | 5,435,776 | ||||||||
| Service revenues | 254,927 | 961,575 | 1,648,225 | 3,572,723 | ||||||||||||
| Total revenues | 1,636,095 | 3,980,265 | 4,186,427 | 9,008,499 | ||||||||||||
| Cost of revenues | 441,971 | 255,254 | 746,582 | 384,269 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 2,623,151 | 3,086,448 | 11,239,397 | 13,410,256 | ||||||||||||
| Research and development | 832,227 | 989,981 | 3,693,810 | 2,577,307 | ||||||||||||
| Depreciation and amortization | 148,528 | 136,496 | 706,496 | 490,641 | ||||||||||||
| Total operating expenses | 3,603,906 | 4,212,925 | 15,639,703 | 16,478,204 | ||||||||||||
| LOSS FROM OPERATIONS | (2,409,782 | ) | (487,914 | ) | (12,199,858 | ) | (7,853,974 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest income (expense), net | 1,437 | 3,340 | 11,004 | (23,468 | ) | |||||||||||
| Other (expense) income, net | (6,731 | ) | (11,460 | ) | 12,875 | (28,313 | ) | |||||||||
| 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 | (2,415,076 | ) | (496,034 | ) | (12,175,979 | ) | (11,881,137 | ) | ||||||||
| Provision for income taxes | - | - | - | - | ||||||||||||
| NET LOSS | $ | (2,415,076 | ) | $ | (496,034 | ) | $ | (12,175,979 | ) | $ | (11,881,137 | ) | ||||
| Net loss per share-basic and diluted | $ | (0.10 | ) | $ | (0.02 | ) | $ | (0.51 | ) | $ | (0.63 | ) | ||||
| Weighted average shares outstanding- Basic and diluted | 24,078,657 | 21,483,946 | 23,693,096 | 18,938,283 |
APPLIED DNA SCIENCES, INC.