Full Press Release Details
Applied DNA Sciences Reports Fiscal Third
Quarter 2016 Results
Company to Hold Conference Call and Webcast
Today at 4:30 PM Eastern Time
STONY BROOK, NY. August 11, 2016 - Applied DNA
Sciences, Inc. (NASDAQ: APDN) (Twitter: @APDN) (Applied DNA) (the Company), a provider of DNA-based supply chain, anti-counterfeiting
and anti-theft technology, product genotyping and product authentication solutions, announced results for the fiscal 2016 third
quarter ended June 30, 2016.
"As we become further entrenched in the cotton supply
chain, and demand for our SigNature T solution aligns with the industry's seasonality that is centered on the ginning season
running from September through January, the slope of demand has changed relative to last season. As a result, our third-quarter
results reflect lower-than-expected revenues, " stated Dr. James A. Hayward, Chairman and CEO of Applied DNA. "Our
recent order to mark 10 million pounds of Acala cotton, a market segment in which we had no presence last season, commitments to
mark in 50% more gins this season than the last, and growth in fiberTyping revenues this quarter, are evidence of the cotton industry's
continued adoption of DNA-marking. We anticipate that orders for DNA-marked cotton, and other fibers and textiles will positively
impact our top-line performance."
Continued Dr. Hayward, "The quarter is also reflective
of the progress we have made with our commercial opportunities. I am pleased to report that we are in several pilot projects with
commercial industrial products markets that relate to higher throughput marking, validation and authentication systems that were
developed and scaled under our government/military contracts. With their completion, these pilot projects should convert into commercial-scale
deployments and serve to further diversify our revenue stream."
Concluded Dr. Hayward, "Applied DNA is uniquely positioned
to utilize DNA as the molecular embodiment of brand. Over the past year, we have narrowed our aperture to focus on business verticals
with near-term drivers of revenue and growth and have made significant strides in textiles and defense and we continue to make
inroads in the industrial products market. All of these adopters are concluding that there is a clear and absolute economic benefit
to deploying our DNA mark. As market awareness converts into adoption, given our technology, our infrastructure and our people,
we believe we are very well positioned to succeed."
Third Quarter Financial Highlights:
Nine-Month Financial Highlights:
Fiscal 2016 Third Quarter Conference Call Information
The Company will hold a conference call and webcast to discuss
its fiscal 2016 third-quarter results on Thursday, August 11, 2016 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.
- Participant Toll Free: 1-877-317-6789
- Participant Toll: 1-412-317-6789
- Please ask to be joined to the Applied DNA Sciences earnings
Live webcast: http://services.choruscall.com/links/apdn160811
Replay (available 1 hour following the conclusion of the
Toll Free: 1-877-344-7529
Toll: 1-412-317-0088
For those investors unable to attend the live call, a copy of
the presentation is expected to be posted by end of business on August 12, 2016 and available under the "Investor Information"
tab of the company's web site.
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 14, 2015, and our subsequent
quarterly reports on Form 10-Q filed on February 10, 2016 and May 12, 2016 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,
Sanjay Hurry, LHA 212-838-3777,
media contact: Susan Forman, Dian Griesel Int'l.,
212-825-3210, sforman@dgicomm.com
CONDENSED CONSOLIDATED
| June 30, 2016 | September 30, 2015 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 7,086,773 | $ | 7,312,184 | ||||
| Accounts receivable, net of allowance of $22,387 and $7,140 at June 30, 2016 and September 30, 2015, respectively | 4,792,308 | 3,929,517 | ||||||
| Inventory | 126,870 | |||||||
| Prepaid expenses and other current assets | 136,783 | 293,351 | ||||||
| Total current assets | 12,142,734 | 11,535,052 | ||||||
| Property, plant and equipment, net of accumulated depreciation of $1,161,120 at June 30, 2016 and $852,867 at September 30, 2015 | 805,761 | 572,107 | ||||||
| Other assets: | ||||||||
| Long term accounts receivables | 360,000 | 1,500,000 | ||||||
| Deposits | 61,126 | 62,988 | ||||||
| Goodwill | 285,386 | 285,386 | ||||||
| Intangible assets, net of accumulated amortization and impairment of $491,933 and $238,368 at June 30, 2016 and September 30, 2015, respectively | 1,563,766 | 1,598,779 | ||||||
| Total Assets | $ | 15,218,773 | $ | 15,554,312 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 2,184,169 | $ | 2,385,006 | ||||
| Deferred revenue | 848,782 | 282,050 | ||||||
| Total current liabilities | 3,032,951 | 2,667,056 | ||||||
| Long term accounts payable | - | 320,400 | ||||||
| Total liabilities | 3,032,951 | 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 June 30, 2016 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 June 30, 2016 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 June 30, 2016 and September 30, 2015 | - | - | ||||||
| Common stock, par value $0.001 per share; 500,000,000 shares authorized; 24,078,636 and 21,504,578 shares issued and outstanding as of June 30, 2016 and September 30, 2015, respectively | 24,079 | 21,505 | ||||||
| Additional paid in capital | 233,564,055 | 224,186,760 | ||||||
| Accumulated deficit | (221,402,312 | ) | (211,641,409 | ) | ||||
| Total stockholders' equity | 12,185,822 | 12,566,856 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 15,218,773 | $ | 15,554,312 |
APPLIED DNA SCIENCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
| Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Revenues | $ | 652,896 | $ | 2,267,671 | $ | 2,550,332 | $ | 5,028,234 | ||||||||
| Cost of revenues | 121,260 | 129,015 | 304,611 | 129,015 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 2,707,420 | 3,222,692 | 8,616,246 | 10,323,809 | ||||||||||||
| Research and development | 1,077,916 | 466,841 | 2,861,583 | 1,587,326 | ||||||||||||
| Depreciation and amortization | 168,641 | 121,339 | 557,968 | 354,144 | ||||||||||||
| Total operating expenses | 3,953,977 | 3,810,872 | 12,035,797 | 12,265,279 | ||||||||||||
| LOSS FROM OPERATIONS | (3,422,341 | ) | (1,672,216 | ) | (9,790,076 | ) | (7,366,060 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest income (expense), net | 2,660 | 5,052 | 9,567 | (26,807 | ) | |||||||||||
| Other (expense) income, net | 52,670 | (3,718 | ) | 19,606 | (16,853 | ) | ||||||||||
| 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 | (3,367,011 | ) | (1,670,882 | ) | (9,760,903 | ) | (11,385,102 | ) | ||||||||
| Provision for income taxes | - | - | - | - | ||||||||||||
| NET LOSS | $ | (3,367,011 | ) | $ | (1,670,882 | ) | $ | (9,760,903 | ) | $ | (11,385,102 | ) | ||||
| Net loss per share-basic and diluted | $ | (0.14 | ) | $ | (0.08 | ) | $ | (0.41 | ) | $ | (0.63 | ) | ||||
| Weighted average shares outstanding- | ||||||||||||||||
| Basic and diluted | 24,075,225 | 21,444,335 | 23,563,164 | 18,075,506 |
APPLIED DNA SCIENCES, INC.
CALCULATION AND RECONCILIATION OF ADJUSTED
| Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Net Loss | $ | (3,367,011 | ) | $ | (1,670,882 | ) | $ | (9,760,903 | ) | $ | (11,385,102 | ) | ||||
| Interest (income) expense, net | (2,660 | ) | (5,052 | ) | (9,567 | ) | 26,807 | |||||||||
| Depreciation and amortization | 168,641 | 121,339 | 557,968 | 354,144 | ||||||||||||
| Loss on change in fair value of warrant liability | - | - | - | 2,994,540 | ||||||||||||
| Stock based compensation expense | 525,186 | 1,057,097 | 1,522,304 | 3,595,631 | ||||||||||||
| Loss on conversion of promissory notes | - | - | - | 980,842 | ||||||||||||
| Bad debt expense | 83,934 | 18,971 | 106,247 | 21,750 | ||||||||||||
| Total non-cash items | 775,101 | 1,192,355 | 2,176,952 | 7,973,714 | ||||||||||||
| Consolidated Adjusted EBITDA (loss) | (2,591,910 | ) | (478,527 | ) | (7,583,951 | ) | (3,411,388 | ) |