Fourth Quarter and Fiscal Year

Applied DNA Announces

Fourth Quarter and Fiscal Year

2022 Financial Results

Delivers 17% Revenue Growth Q/Q and 101% Y/Y -

Cash and Cash Equivalents at $15.2 Million -

Company to Hold Conference Call and Webcast Today, Wednesday, December 14, 2022, at 4:30 PM ET -

BROOK, N.Y. - December 14, 2022 - Applied DNA Sciences, Inc. (NASDAQ: APDN) ("Applied DNA"

or the "Company"), a leader in PCR-based DNA technologies, today announced consolidated financial results for the fourth

quarter and fiscal year ended September 30, 2022.

"Applied DNA delivered

four consecutive quarters of year-over-year revenue increases and a second consecutive record revenue year in fiscal 2022 while simultaneously

executing on our long-term strategy and vision to build a diversified PCR-based DNA technologies company in biotechnology, clinical diagnostics,

and supply chain traceability," stated Dr. James A. Hayward, president and CEO. "Over the past 12 months, our LineaRx

subsidiary generated volumes of preclinical data to strengthen the case for the biotherapeutic industry's adoption of enzymatically-produced

linear DNA (linearDNA ) for the manufacture of genetic medicines, expanded the menu of molecular diagnostic tests at our Applied

DNA Clinical Labs ("ADCL") subsidiary, and moved to capitalize on U.S. federal enforcement of the Uyghur Forced Labor Prevention

Act (the "UFLP Act") as a driver of broader CertainT platform adoption by the textiles industry.

committed to our biotherapeutics opportunity as the chief driver of long-term shareholder value while working to evolve our ADCL and

supply chain traceability segments towards positive cash flow to support the value-creating potential of our LinearDNA

platform," continued Dr. Hayward. "Operationally, we undertook a detailed assessment to reduce costs associated

with our largest COVID-19 testing contract, our chief driver of revenue. In fiscal 2023, we will continue to manage our costs

associated with this contract, while at the same time, working to close sales opportunities for our to-be launched pharmacogenetic

testing services. In our supply chain traceability segment, we

worked to educate key policy makers, customers, and enforcement agencies on CertainT, our textile traceability platform, ahead of

the implementation of the UFLP Act. As enforcement of the UFLP Act is expected to become ubiquitous at U.S. ports, we believe that

CertainT is well positioned to help customers meet its compliance requirements."

Concluded Dr. Hayward, "Our

strategic priorities in fiscal 2023 are twofold: first, we are focused on capturing new sales opportunities and effecting gross margin

improvements in our ADCL and supply chain traceability segments empowered by the commercialization of our pharmacogenomics ("PGx")

testing platform and the broader implementation of the UFLP Act, respectively; second, we are focused on making the necessary investments

in our LinearDNA platform to support the growth of this business segment from a small-scale CRO to a larger-scale CDMO capable of capturing

promising opportunities in genetic medicines, including the use of linearDNA IVT templates to produce mRNA therapeutics. Historically,

the gating factor to broader linearDNA adoption has been our lack of cGMP production capacity which we are moving to remedy over the

course of the fiscal year and expect to culminate in the establishment of an initial cGMP production capacity by the end of calendar

Fourth Quarter 2022 Financial Highlights

Total revenues increased 17%

to $3.6 million, which included $2.9 million in clinical laboratory service revenues (COVID-19 testing revenue). This compares with total

revenues of $3.0 million in the prior fiscal year period, which included $1.6 million of COVID-19 testing revenue.

The year-over-year increase was

offset by a decrease in product revenues of $713 thousand due to a decrease in sales of DNA concentrate within a textile supply chain,

as well a decline in sales of our molecular diagnostics (MDx) test kits and supplies and a decrease in service revenue of $70 thousand.

Gross profit was $417 thousand,

or 12%, compared to $992 thousand, or 33%, in the prior fiscal year period. The decline in gross margin was primarily the result of a

higher portion of clinical laboratory service revenues coming from managed services testing contracts that carry higher costs compared

to ADCL's surveillance testing contracts. To a lesser extent, the decline was due to product sales mix as product revenues in the prior

fiscal year period included sales of diagnostic test kit and supplies and DNA concentrate for supply chains serving the textiles industry

that are at a higher gross margin.

Total operating expenses were

$4.8 million compared to $5.5 million in the prior fiscal year period, reflecting the absence of a $822 thousand impairment charge related

to goodwill and the remaining net book value of intangible assets incurred in the prior fiscal year period and to a lesser extent, decreases

in research and development expenses of $313 thousand. The decrease in operating expenses was offset by an increase of $420 thousand

in selling, general and administrative expenses attributable to an increase in insurance expense of approximately $209 thousand and an

increase in bad debt expense of approximately $237 thousand for the reserve of a customer balance that was deemed to be uncollectible.

Operating loss was $4.4 million

compared to an operating loss of $4.5 million in the prior fiscal year period.

Excluding non-cash expenses,

Adjusted EBITDA was negative $3.4 million compared to negative $3.3 million in the prior fiscal year period. See below for information

regarding non-GAAP measures.

Cash and cash equivalents of

$15.2 million at September 30, 2022, include proceeds from a public offering conducted in the quarter of common stock and two series

of warrants for gross proceeds of $12.0 million, and the exercise of warrants in connection with this offering for additional net proceeds

Fiscal 2022 Financial Highlights

Total revenues increased 101%

to $18.2 million, which included $15.5 million in clinical laboratory service revenues (COVID-19 test revenue). This compares with total

revenues of $9.0 million in the prior fiscal year period, which included $4.8 million of COVID-19 test revenue.

The year-over-year increase was

offset by a decrease in product revenues of $1.4 million reflecting decreased sales of our MDx test kits and supplies to an ADCL COVID-19

customer and, to a lesser extent, a decrease in the sale of DNA concentrate for textiles supply chains recorded in the prior fiscal year

period and a decrease in service revenues of $179 thousand reflecting research and developments projects completed in the prior fiscal

Total operating expenses increased

7% to $19.0 million from $17.8 million in the prior fiscal year period. The increase is attributable to an increase in selling, general

and administrative expenses of $2.3 million, offsetting a decrease in research and development expenses of $238 thousand and the absence

of a $822 thousand impairment charge related to goodwill and the remaining net book value of intangible assets incurred in the prior

Operating loss was $14.0 million

compared to $13.3 million in the prior fiscal year period.

Excluding non-cash expenses,

Adjusted EBITDA was negative $9.9 million compared to negative $10.1 million in the prior fiscal year period. See below for information

regarding non-GAAP measures.

Warrants balance at September 30,

2022 stood at 7.3 million. Approximately 2.2 million of these warrants have exercise prices ranging from $2.80 to $2.84 per warrant share,

which, if exercised, could result in exercise proceeds to the Company of approximately $6.3 million; 5.1 million of these warrants have

an exercise price of $4.00 per warrant share, which, if exercised, could result in total exercise proceeds of approximately $20.3 million.

Of the 5.1 million warrants, 2.1 million expire in September 2023, which, if exercised, would total proceeds of $8.4 million.

Fourth Quarter and Full Year Fiscal 2022 Conference Call Information

The Company will hold a conference call and webcast to discuss its

fourth quarter and fiscal year 2022 financial results on Wednesday, December 14, 2022, 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, not all questions may be answered.

replay of webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=6mYI8Tbp

Telephonic replay (available 1 hour following the conclusion of

the live call through December 15, 2022):

slides will also be posted to the "News & Events" section of the Applied DNA website at https://investors.adnas.com/

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