Applied DNA Sciences Reports Fourth Consecutive Quarter of Record Revenues

December 14, 2015 5:55 PM

STONY BROOK, NY -- (Marketwired) -- 12/14/15 -- 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 full fiscal year and quarter ended September 30, 2015.

Dr. James A. Hayward, President and Chief Executive Officer, stated, "We are proud to report our fourth consecutive quarter of record revenues and, for the first time in the company's history, positive adjusted quarterly EBITDA. Our performance reflects the continued deployment of our botanical DNA-based solutions to secure global supply chains, coupled with the continued disciplined management of operating expenses. In particular, fourth quarter revenues reflect the provision of SigNature® DNA adequate to mark an increment of 70 million pounds of Pima and Upland cotton, a quantity indicative of a commercial-scale deployment, as well as revenues from two non-recurring government contracts. We believe that our penetration of the textile industry is very much in its infancy."

Fourth Quarter Financial Highlights:

Recent Highlights:

Dr. Hayward continued, "Fiscal 2015 signaled Applied DNA Sciences' transition from a development-stage company to a commercial operating company and, by every measure -- operationally, financially, strategically -- the year was a tremendous success. Additional relationships within our government vertical, the supply of bulk DNA and new partnerships in the textile industry served as catalysts for substantial revenue growth over the prior year. Reflective of our improved financial performance, we uplisted to the NASDAQ Stock Market to raise our visibility to the investment community and accessed the capital markets to further fuel our growth. Our efforts have culminated in an increase in revenue to three-fold the prior year, and the recent acquisition of Vandalia assets that not only provides us entrée to new markets for our solutions, but also gives us additional capability to scale our solutions to meet the requirements of current and future markets."

Financial Highlights for Fiscal 2015:

Dr. Hayward concluded, "Fiscal 2016 presents an opportunity for continued strong growth as the maturation of existing pilot projects become new drivers of revenue and as we further expand our penetration of our existing industry verticals. Our success in validating cotton supply chains, which are dispersed over large geographies and notoriously complex, sets the precedent for our deployment in other verticals from plastics to pharmaceutics. Our cotton initiative helped the company mature from providing a DNA product to evolving procedures and systems that complete the supply-chain ecosystem. We also expect to begin deployment of our On-Site DNA Authentication program for cotton, which should serve to mitigate the impact of cotton's seasonality on our business. Subsequent to the close of the year, we undertook a capital raise that further strengthened our balance sheet, giving us the flexibility to pursue a broader range of growth opportunities. Given these and other initiatives, we expect further revenue growth in FY 2016. With an unmatched portfolio of DNAintellectual property and the ability to produce DNA at scale, growing adoption of our solutions by markets with substantial dollar-value opportunities and the financial resources with which to pursue them, we believe Applied DNA Sciences is excellently positioned to succeed."

Fiscal Fourth Quarter 2015 Conference Call Information

The Company will hold a conference call and webcast to discuss its fiscal fourth quarter and year-end 2015 results on Tuesday, December 15, 2015 at 8:30 AM 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.

To Participate:

Reserve your conference call seat now at: Conference call dial-in information will be provided upon completion of the registration process.

Live webcast:

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 15, 2015 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 is 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. 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 Sciences 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 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.

Financial Tables Follow

                         APPLIED DNA SCIENCES, INC.                         
                        CONSOLIDATED BALANCE SHEETS                         
                                               September 30,  September 30, 
                                                    2015           2014     
                                               -------------  ------------- 
Current assets:                                                             
Cash and cash equivalents                      $   7,312,184  $   1,393,132 
Accounts receivable, net of allowance of                                    
 $7,140 and $9,634 at September 30, 2015 and                                
 2014, respectively                                3,929,517        834,818 
Prepaid expenses and other current assets            293,351        135,365 
                                               -------------  ------------- 
Total current assets                              11,535,052      2,363,315 
Property, plant and equipment, net of                                       
 accumulated depreciation of $852,867 and                                   
 $759,087 at September 30, 2015 and 2014,                                   
 respectively                                        572,107        576,128 
Other assets:                                                               
Long term accounts receivable                      1,500,000              - 
Deposits                                              62,988         57,638 
Deferred offering costs                                    -        181,104 
Goodwill                                             285,386              - 
Intangible assets, net of accumulated                                       
 amortization of $238,638 and $141,478 at                                   
 September 30, 2015 and September 30, 2014,                                 
 respectively                                      1,598,779        327,872 
                                               -------------  ------------- 
Total Assets                                   $  15,554,312  $   3,506,057 
                                               =============  ============= 
Current liabilities:                                                        
Accounts payable and accrued liabilities,                                   
 including related party accrued interest of                                
 $6,597 at September 30, 2014                  $   2,385,006  $   1,494,759 
Promissory notes payable, including $1,000,000                              
 with a related party at September 30, 2014                -      1,800,000 
Deferred revenue                                     282,050        583,362 
                                               -------------  ------------- 
Total current liabilities                          2,667,056      3,878,121 
Long term accounts payable                           320,400              - 
Warrant liability                                          -      1,096,412 
                                               -------------  ------------- 
Total liabilities                                  2,987,456      4,974,533 
                                               -------------  ------------- 
Commitments and contingencies                                               
Stockholders' Equity (Deficit)                                              
Preferred stock, par value $0.001 per share;                                
 10,000,000 shares authorized; -0- shares                                   
 issued and outstanding as of September 30,                                 
 2015 and 2014                                             -              - 
Series A Preferred stock, par value $0.001 per                              
 share, 10,000,000 shares authorized; -0-                                   
 issued and outstanding as of September 30,                                 
 2015 and 2014                                             -              - 
Series B Preferred stock, par value $0.001 per                              
 share, 10,000,000 shares authorized; -0-                                   
 issued and outstanding as of September 30,                                 
 2015 and 2014                                             -              - 
Common stock, par value $0.001 per share;                                   
 500,000,000 and 1,350,000,000 shares                                       
 authorized; 21,504,578 and 13,935,954 shares                               
 issued and outstanding as of September 30,                                 
 2015 and 2014, respectively                          21,505         13,937 
Additional paid in capital                       224,186,760    198,277,859 
Accumulated deficit                             (211,641,409)  (199,760,272)
                                               -------------  ------------- 
Total stockholders' equity (deficit)              12,566,856     (1,468,476)
                                               -------------  ------------- 
Total Liabilities and Stockholders' Equity                                  
 (Deficit)                                     $  15,554,312  $   3,506,057 
                                               =============  ============= 
                         APPLIED DNA SCIENCES, INC.                         
                   CONSOLIDATED STATEMENTS OF OPERATIONS                    
                          Three Months Ended         Twelve Months Ended    
                             September 30,              September 30,       
                           2015         2014         2015          2014     
                       -----------  -----------  ------------  ------------ 
                       (unaudited)  (unaudited)                             
Revenues               $ 3,980,265  $   645,526  $  9,008,499  $  2,721,224 
Operating expenses:                                                         
Selling, general and                                                        
 administrative          3,658,046    3,157,349    14,736,451    13,249,753 
Research and                                                                
 development               673,637      215,333     1,635,381     1,300,750 
Depreciation and                                                            
 amortization              136,496      116,813       490,641       442,262 
                       -----------  -----------  ------------  ------------ 
Total operating                                                             
 expenses                4,468,179    3,489,495    16,862,473    14,992,765 
                       -----------  -----------  ------------  ------------ 
LOSS FROM OPERATIONS      (487,914)  (2,843,969)   (7,853,974)  (12,271,541)
Other income                                                                
Interest income                                                             
 (expense), net              3,340      (11,812)      (23,468)      (11,029)
Other (expense)                                                             
 income, net               (11,460)      (5,047)      (28,313)      123,914 
Loss on conversion of                                                       
 promissory notes                -            -      (980,842)            - 
Gain (loss) on change                                                       
 in fair value of                                                           
 warrant liability               -      755,311    (2,994,540)     (908,005)
                       -----------  -----------  ------------  ------------ 
Loss before provision                                                       
 for income taxes         (496,034)  (2,105,517)  (11,881,137)  (13,066,661)
Provision for income                                                        
 taxes                           -            -             -             - 
                       -----------  -----------  ------------  ------------ 
NET LOSS               $  (496,034) $(2,105,517) $(11,881,137) $(13,066,661)
                       ===========  ===========  ============  ============ 
Net loss per share-                                                         
 basic and diluted     $     (0.02) $     (0.15) $      (0.63) $      (0.97)
                       ===========  ===========  ============  ============ 
Weighted average                                                            
 shares outstanding-                                                        
 basic and diluted      21,483,946   13,856,703    18,938,283    13,515,518 
                       ===========  ===========  ============  ============ 
                         APPLIED DNA SCIENCES, INC.                         
                          Three Months Ended         Twelve Months Ended    
                             September 30,              September 30,       
                           2015         2014         2015          2014     
                       -----------  -----------  ------------  ------------ 
Net Loss               $  (496,034) $(2,105,517) $(11,881,137) $(13,066,661)
Operating expenses:                                                         
Interest (income)                                                           
 expense, net               (3,340)      11,812        23,468        11,029 
Depreciation and                                                            
 amortization              136,496      116,813       490,641       442,262 
(Gain) loss on change                                                       
 in fair value of                                                           
 warrant liability               -     (755,311)    2,994,540       908,005 
Stock based                                                                 
 compensation expense      562,933      315,505     4,158,564     2,370,842 
Loss on conversion of                                                       
 promissory notes                -            -       980,842             - 
Bad debt expense            13,246        2,877        34,996        19,755 
                       -----------  -----------  ------------  ------------ 
Total non-cash items       709,335     (308,304)    8,683,051     3,751,893 
                       -----------  -----------  ------------  ------------ 
Consolidated Adjusted                                                       
 EBITDA (loss)             213,301   (2,413,821)   (3,198,086)   (9,314,768)
                       ===========  ===========  ============  ============ 
   Investor Contact:Debbie Bailey631-240-8817Email contactSanjay M. Hurry212-838-3777LHAEmail contactMedia Contact:Susan FormanDian Griesel Int'l.212-825-3210Email contactWeb: www.adnas.comTwitter: @APDN

Source: Applied DNA Sciences


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