- Receives Second Warrant Exercise Subsequent
to Year-End for Net Proceeds of $1.05 Million –
- Company to Hold Conference Call and Webcast
Today, Thursday, December 17, 2020 at 4:30 PM ET -
Applied DNA Sciences, Inc. (NASDAQ: APDN) (“Applied DNA” or the
"Company"), a leader in Polymerase Chain Reaction (PCR)-based DNA
manufacturing, today announced consolidated financial results for
the full fiscal year and quarter ended September 30, 2020.
“Our activities in fiscal 2020 were principally devoted to the
establishment of our diagnostic and surveillance testing programs
for COVID-19 and to further positioning our proprietary LinearDNA™
manufacturing platform as what we believe to be a cleaner and
higher-performing alternative to traditional vaccine development
technologies in an environment moving at pandemic speeds to bring
efficacious COVID-19 vaccines to market,” said Dr. James A.
Hayward, president and CEO, Applied DNA. “With the shutdown in
global supply chains severely affecting the performance of our
supply chain security business, we redirected resources to our
Biotherapeutics and Diagnostics markets: we initiated our own human
and veterinary linear DNA COVID-19 vaccine development programs
with partner Takis Biotech/EvviVax. While having clear public
health goals, these programs also serve to validate our linear DNA
manufacturing platform and its manufacturing advantages over
plasmid DNA production that underpins current vaccine manufacturing
technology; having acquired virus expertise as a result of our
vaccine development work, we launched our Linea™COVID-19 Assay Kit
(the “COVID-19 test”) and related testing services as part of a
multi-pronged approach to the pandemic to establish new revenue
streams.
“The result of these efforts was the development of a highly
sensitive, highly specific, EUA-authorized diagnostic test that,
when paired with safeCircle™, our pooled surveillance testing
platform, is in the marketplace today as a cost-effective, and
convenient means to help break the chain of virus transmission. We
ended the fiscal year having secured our first customer of size for
our kit, established an initial base of recurring revenue for our
safeCircle platform, and initiated a clinical path for our lead
veterinary vaccine candidate with an end goal of enabling
commercial veterinary sales for domestic felines.”
Continued Dr. Hayward, “Our development efforts in fiscal 2020
have laid the groundwork for multiple inflection points in fiscal
2021. The sales pipelines for our COVID-19 test and safeCircle
offerings are building. In particular, safeCircle is experiencing
resonance in the marketplace that, together with a recently
established ‘return-to-work’ partnership, enables us to target
market niches we believe we can exploit profitably, such as local
governments, private and enterprise clients, schools, and higher
education athletics departments. We anticipate both offerings to
scale up their contributions to our top-line over the coming
quarters.
“Our own human linear DNA COVID-19 vaccine development program
has not progressed as anticipated; however, the preclinical work we
have conducted to date serves as the basis for a veterinary
COVID-19 vaccine candidate that we believe offers a shorter and
less costly regulatory path to commercialization. Domestic cats are
a known virus reservoir and can easily transmit the virus to other
felines. If all trial endpoints are met, we will apply for
conditional licensure from the U.S.D.A., which we project to be in
the latter half of the fiscal year. With about 58 million1 domestic
cats in the U.S. and a likely first-mover advantage, we believe
that a veterinary vaccine could be commercially significant to us
if approved. We would then seek to expand the addressable market
for our veterinary vaccine to include the farmed mink industry
globally that has been ravaged by the virus, resulting in
substantial commercial losses.
“As human COVID-19 vaccines obtain regulatory approval, we
believe they evidence shortcomings in their manufacture and
distribution that we believe are solvable by linear DNA forms of
their vaccines. We believe our LinearDNA platform can produce
PCR-based linear DNA at large scale enzymatically and likely with
an improved safety profile, modify vaccines reliant on plasmids to
address mutations in weeks, not months or years, and offer
stability in distribution that potentially eliminates the need for
expensive cold-chain requirements. This value proposition can
benefit not only COVID-19 vaccines but also every nucleic
acid-based program under development today. Concurrently, we see an
uptick in contract research activity for biotherapeutic
applications that we take to reflect the increasing value being
placed on linear DNA by drug developers. Today, we are proud to
count leading biotechnology and pharmaceutical companies working in
the field of nucleic acid-based medicine as contract research
customers. As manufacturing and distribution increasingly become
key issues in advancing nucleic-acid-based therapeutic development
pipelines, we expect that our LinearDNA platform will become
increasingly relevant to existing and prospective customers.
“Finally, we await the return of increased demand patterns in
our supply chain security market. The need for brand assurance and
supply chain integrity remains as evidenced by our new supply
agreement for our CertainT® platform with Pillar Technologies as it
relates to the authenticity of personal protective equipment being
consumed by our front-line healthcare workers, and by Nutrition21
who has transitioned its portfolio of IP-protected ingredients to
CertainT. We remain cautiously optimistic on the prospects in this
business in the new fiscal year,” concluded Dr. Hayward.
Fiscal Fourth Quarter 2020 Financial Results:
- Revenues decreased 81% for the fourth quarter of fiscal 2020 to
$314 thousand, compared with $1.7 million reported in the same
period of the prior fiscal year and decreased 27% from $432
thousand for the third quarter of fiscal 2020. The decrease in
revenues year over year was due primarily to a decrease in product
revenues of approximately $1.1 million, which was primarily from
shipments of DNA concentrate to protect the cotton supply chain
during the prior fiscal year. The year over year decrease is also
due to a decrease of $231 thousand in service revenues. The
decrease in revenue quarter over quarter was due to a decrease in
service revenue of $183 thousand, primarily related to the textile
industry.
- Total operating expenses increased to $4.2 million for the
fourth fiscal quarter of 2020, compared with $3.2 million in the
prior fiscal year’s fourth quarter. This increase is primarily
attributable to an approximate $313 thousand increase in payroll.
This increase in payroll is primarily attributable to a reversal of
voluntary salary reductions and increased staffing at Applied DNA
Clinical Laboratories, LLC., as well as an increase in research and
development expense of $353 thousand centered on the Company’s
Linea™COVID-19 assay kit.
- Net loss applicable to common stockholders for the quarter
ended September 30, 2020 was $4.1 million, or $0.82 per share,
compared with a net loss of $1.5 million, or $1.44 per share, for
the quarter ended September 30, 2019
- Excluding non-cash expenses, Adjusted EBITDA was negative $3.8
million and negative $1.6 million for the quarters ended September
30, 2020 and 2019, respectively. See below for information
regarding non-GAAP measures.
- Cash and cash equivalents stood at $7.8 million on September
30, 2020. Subsequent to the fiscal quarter, the Company received
two exercises of warrants associated with its November 15, 2019
underwritten public offering (the “2019 Warrants”). The first
exercise totaled net proceeds of approximately $1.7 million to the
Company that was used to repay all outstanding secured convertible
notes of $1.7 million. In accordance with the 2019 Warrants
exercise agreement entered into in October 2020, the Company issued
approximately 159,000 replacement warrants at an exercise price of
$7.52. The second exercise totaled approximately $1.05 million in
net proceeds to the Company. Also, in accordance with the 2019
Warrant exercise agreement and the second warrant exercise, the
Company issued approximately 100,000 replacement warrants at an
exercise price of $6.57 for 50,000 replacement warrants and $6.46
for 50,000 replacement warrants. Approximately 460,000 2019
Warrants are outstanding as of December 10, 2020.
Full Fiscal Year 2020 Financial Results:
- Revenues for fiscal 2020 totaled $1.9 million, a decrease of
64% from $5.4 million from the prior fiscal year. The decrease in
revenues was due to a decrease in service revenues of $1.9 million,
or 60%, and a decrease in product revenues of $1.5 million, or 71%.
The decrease in service revenue was primarily attributable to a
decrease of $1 million from a cannabis licensing agreement (now
terminated), as well as an additional decrease of $613 thousand for
a government contract award that ended during the second half of
fiscal 2019. The decrease in product revenues relates to a decrease
in textiles of $1.35 million for shipments of DNA concentrate to
protect the cotton supply chain that occurred during the prior
fiscal year. This decrease in textiles revenue is primarily as
result of the global shut down related to the COVID-19 pandemic
adversely impacting the textile industry.
- Operating expenses for the fiscal year ended September 30, 2020
increased slightly by $110 thousand, or 1% as compared to the prior
fiscal year.
- Net loss applicable to common stockholders for the twelve
months ended September 30, 2020 was $13.0 million or $3.32 per
share, compared with a net loss of $8.9 million or $9.69 per share
for the twelve months ended September 30, 2019.
- Excluding non-cash expenses and interest, Adjusted EBITDA for
the fiscal year ended September 30, 2020 was a negative $11.6
million as compared to a negative $7.6 million for the prior fiscal
year. See below for information regarding non-GAAP measures.
Select Recent Operational Highlights:
COVID-19
Linea™COVID-19 SARS-CoV-2 Diagnostic Assay Kit (“assay kit”)
- On November 25, 2020, Applied DNA was granted an amendment to
its Emergency Use Authorization by the U.S. FDA that expanded the
installed base of RT-PCR platforms that can process the assay kit
to include the Applied Biosystems™ 7500 Fast Dx Real-Time PCR
System, a system found in the majority of clinical laboratories
nationally.
- On November 12, 2020, the Company received a blanket purchase
order from Stony Brook University Hospital (SBUH) for assay kits
and consumables to power SBUH’s newly-launched surveillance testing
program that aims to cover testing of 9,000 individuals per week
with 1,800 pooled (5 individuals per pool) tests per week. The
Company anticipates recurring purchase orders from SBUH to support
SBUH’s ongoing surveillance testing needs.
- On September 29, 2020, the Company and SBUH signed a one-year
Master Service Agreement (MSA) to supply the Company’s COVID-19
assay on an as-needed basis to SBUH. The Company also designed and
implemented an automated, high-throughput COVID-19 testing workflow
in the SBUH clinical lab that is now being used to enable SBUH’s
surveillance testing program. Concurrently, the Company received an
initial purchase order under the MSA.
Applied DNA Clinical Labs, LLC (ADCL)
- On December 11, 2020, the Company stated that it is
experiencing growing demand for its safeCircle pooled COVID-19
surveillance testing program that is being primarily driven by New
York State schools moving to comply with the State’s Winter
COVID-19 Plan. Applied DNA has secured new agreements with schools
and colleges that represent a potential weekly testing population
of >5,000 individuals, from which a varying percentage are
tested each week. Several contracts are contingent on the schools’
ability to secure funding.
- On December 1, 2020, Applied DNA announced that it is providing
its pooled surveillance testing program, safeCircle™ , to the Stony
Brook University Seawolves men’s and women’s basketball teams –
student-athletes and coaching staff - for the balance of the
calendar year.
- On November 25, 2020, the Company announced the results of New
York State Department of Health’s (DoH) initial inspection report
of ADCL that highlighted deficiencies at the clinical lab that were
present at the time of the inspection that require remediation
prior to the submission of a re-inspection request. The Company
expects to complete remediation actions during the first calendar
quarter of 2021. The Company’s safeCircle platform and its ability
to conduct pooled surveillance testing is not impacted by the DoH’s
report.
- On November 10, 2020, Applied DNA announced that its assay was
selected by SBUH for use in SBUH’s newly launched COVID-19
surveillance testing program that is modeled after the Company’s
safeCircle™ platform, a pooled surveillance testing program. At
peak operations, SBUH will test its 9,000-member faculty and staff
of SBUH and Renaissance School of Medicine every week that would
equate to 1,800 (5 individuals per pooled test) of the Company’s
tests per week.
- On October 30, 2020, the Company announced that it was boosting
its surveillance testing capacity through the expanded use of
robotic automation. The Company’s expansion plans support the
reception to ADCL’s surveillance testing-as-a-service offering
enhanced by ongoing sales and marketing outreach efforts.
- On October 12, 2020, announced that it secured COVID-19
surveillance testing contracts that are estimated to generate more
than $1.0 million in total annualized revenue beginning October 1,
2020.
Vaccine Candidates
- On November 30, 2020, Applied DNA and its development partner,
EvviVax, announced the receipt of regulatory approval from the New
York State Department of Agriculture and Markets and the U.S.
Department of Agriculture (USDA) to initiate a veterinary clinical
trial of its lead LinearDNA™ COVID-19 vaccine candidate in domestic
companion felines. The goal of the trial is to evaluate the vaccine
candidate as a strategy for the prevention of SARS-CoV-2, the virus
that causes COVID-19, in feline companions of humans that would
mitigate the animals as a potential reservoir for infections in
humans. Domestic felines are a known COVID-19 reservoir and can
transmit the virus to other felines. The trial allows for
immunologic data to be gathered across the clinical trial cohort
that may also support the initiation of a near-concurrent challenge
trial, which is under development. Achievement of both trials’
primary endpoints we believe would enable the Company and EvviVax
to apply for a USDA APHIS conditional license (9 CFR 102.6) for a
LinearDNA COVID-19 vaccine candidate for domestic felines. The
Company believes that an efficacious vaccine for domestic felines
would be similarly efficacious to mink, another known COVID-19
reservoir. SARS-CoV-2 has severely impacted the farmed mink
industry and mink-linked virus mutations now present in humans in
at least 7 countries. Applied DNA believes that should its
veterinary COVID-19 vaccine candidate gain conditional licensure
for the vaccine candidate, it could have significant utility in
mitigating the spread of the virus in commercial animal populations
and from animal populations to humans.
LineaRx
- On November 2, 2020, the Company announced orders for its
linear DNA to be evaluated in an RNA vaccine and Adeno-Associated
Virus (AAV) production from two new contract research customers,
respectively. The Company also announced a follow-on order from a
repeat customer for a preclinical CAR T therapy. All orders are
expected to ship during the quarter ending December 30, 2020.
- On August 17, 2020, Applied DNA filed for a nonprovisional
patent application with the United States Patent and Trademark
Office (USPTO) entitled “Methods and Systems of PCR-Based
Recombinant Adeno-Associated Virus Manufacture” (the “Patent”). The
Patent claims priority to a previously filed provisional patent
application filed with the USPTO in August of 2019.
Supply Chain Security
- On December 7, 2020, the Company announced that Nutrition21 has
transitioned to the Company’s CertainT platform to secure its
IP-protected portfolio of dietary supplement ingredients.
Concurrently, the Company received two follow-on orders for a
second year of commercial production, the majority of which is
expected to be shipped in the quarter ending December 31,
2020.
- On September 21, 2020, Applied DNA entered into a supply
agreement for its CertainT™ platform with Pillar Technologies
(Pillar), a subsidiary of ITW (Illinois Tool Works). The Company
will supply SigNature® molecular tags and SigNify® in-field
authentication devices to Pillar for use on materials and products
treated with Pillar’s patented plasma deposition technology. The
supply agreement supports Pillar’s strategy to combat the growing
issue of counterfeit PPE entering the healthcare supply chain as
the COVID-19 pandemic increases demand and has grown to include
other materials and products manufactured by Pillar’s
customers.
- On August 12, 2020, the Company received a Notice of Allowance
for its U.S. Patent Application No. 14/572,552 (US 2016/0168781 A1)
entitled “Method and Device for Marking Fibrous Materials.” The
allowed claims cover methods of DNA-tagging cotton fibers while
they travel through the forced air systems found at cotton gins,
and later authenticating the DNA-tagged cotton fibers to prove
their provenance and/or authenticity all the way to finished goods.
The allowed patent application extends the Company’s patent
protection for its proprietary DNA Transfer System, a key component
of its CertainT® platform for cotton
Corporate
- On October 8, 2020, Applied DNA announced the repayment of
secured convertible notes in an aggregate amount of approximately
$1.7 million, representing the outstanding amount of the Notes plus
interest through the scheduled maturity of the Notes. The repayment
was funded by the exercise of warrants issued as part of the
Company’s November 15, 2019 underwritten public offering for total
proceeds to Applied DNA of approximately $1.7 million.
Footnote: 1
https://www.avma.org/resources-tools/reports-statistics/us-pet-ownership-statistics
Fiscal Fourth Quarter 2020 Conference Call
Information
The Company will hold a conference call and webcast to discuss
its fiscal fourth quarter-end 2020 results on Thursday, December
17, 2020 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.
To Participate:
- Participant Toll Free:1-844-887-9402
- Participant Toll: 1-412-317-6798
- Please ask to be joined to the Applied DNA Sciences call
Live webcast:
https://services.choruscall.com/links/apdn201210.html
Replay (available 1 hour following the conclusion of the live
call through December 24, 2019):
- Participant Toll Free: 1-877-344-7529
- Participant Toll: 1-412-317-0088
- Participant Passcode: 10149831
Webcast replay:
https://services.choruscall.com/links/apdn201210.html
For those investors unable to attend the live call, a copy of
management’s PowerPoint presentation will be available for review
under the ‘IR Calendar’ portion of the Company’s Investor Relations
web site: https://adnas.com/molecular-based-security/investors/
About the LineaTM COVID-19 Assay Kit
The Linea™ COVID-19 Assay Kit is authorized by FDA EUA for the
qualitative detection of nucleic acid from SARS-CoV-2 in
respiratory specimens, including anterior nasal swabs,
self-collected at a healthcare location or collected by a
healthcare worker, and nasopharyngeal and oropharyngeal swabs,
mid-turbinate nasal swabs, nasopharyngeal washes/aspirates or nasal
aspirates, and bronchoalveolar lavage (BAL) specimens collected by
a healthcare worker from individuals who are suspected of COVID-19
by their healthcare provider. The scope of the Linea™ COVID-19
Assay Kit EUA, as amended, is expressly limited to use consistent
with the Instructions for Use by authorized laboratories, certified
under the Clinical Laboratory Improvement Amendments of 1988 (CLIA)
to perform high complexity tests. The EUA will be effective until
the declaration that circumstances exist justifying the
authorization of the emergency use of in vitro diagnostics for
detection and/or diagnosis of COVID-19 is terminated or until the
EUA’s prior termination or revocation. The diagnostic kit has not
been FDA cleared or approved, and the EUA’s limited authorization
is only for the detection of nucleic acid from SARS-CoV-2, not for
any other viruses or pathogens.
The Company is offering surveillance testing in compliance with
current CDC, FDA, and CMS guidances. The use of saliva and pooled
sampling for surveillance testing, which has been internally
validated by the Company in compliance with current surveillance
testing guidances, is not included in the Company’s EUA
authorization for the Linea™ COVID-19 Assay Kit.
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)
stock-based compensation and (ii) other non-cash expenses.
About Applied DNA Sciences
Applied DNA is a provider of molecular technologies that enable
supply chain security, anti-counterfeiting and anti-theft
technology, product genotyping, and pre-clinical nucleic acid-based
therapeutic drug candidates.
Visit adnas.com for more information. Follow us on Twitter and
LinkedIn. Join our mailing list.
The Company’s common stock is listed on NASDAQ under ticker
symbol ‘APDN’, and its publicly traded warrants are listed on OTC
under ticker symbol ‘APPDW’.
Applied DNA is a member of the Russell Microcap® Index.
Forward-Looking Statements
The statements made by Applied DNA in this press release may be
“forward-looking” in nature within the meaning of Section 27A of
the Securities Act of 1933, Section 21E of the Securities Exchange
Act of 1934 and the Private Securities Litigation Reform Act of
1995. Forward-looking statements describe Applied DNA’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 Applied DNA. Actual results
could differ materially from those projected due to, its history of
net losses, limited financial resources, limited market acceptance,
the uncertainties inherent in research and development, future
clinical data and analysis, including whether any of Applied DNA’s
or its partner’s diagnostic or therapeutic candidates will advance
further in the preclinical research or clinical trial process,
including receiving clearance from the U.S. Food and Drug
Administration (U.S. FDA), the U.S. Department of Agriculture
(USDA) or equivalent foreign regulatory agencies to conduct
clinical trials and whether and when, if at all, they will receive
final approval from the U.S. FDA, the USDA or equivalent foreign
regulatory agencies, the unknown outcome of any applications or
requests to U.S. FDA, USDA, equivalent foreign regulatory agencies
and/or the New York State Department of Health, the unknown limited
duration of any Emergency Use Authorization (EUA) approval from
U.S. FDA, changes in guidances promulgated by the CDC, FDA and/or
CMS relating to COVID-19 surveillance testing, disruptions in the
supply of raw materials and supplies , and various other factors
detailed from time to time in Applied DNA’s SEC reports and
filings, including our Annual Report on Form 10-K filed on December
17, 2020, and other reports we file with the SEC, which are
available at www.sec.gov. Applied DNA undertakes no obligation to
update publicly any forward-looking statements to reflect new
information, events, or circumstances after the date hereof or to
reflect the occurrence of unanticipated events, unless otherwise
required by law.
Financial Tables Follow
APPLIED DNA SCIENCES,
INC.
CONSOLIDATED BALANCE
SHEETS
SEPTEMBER 30, 2020 AND
2019
September 30,
2020
2019
ASSETS
Current assets:
Cash and cash equivalents
$
7,786,743
$
558,988
Accounts receivable, net of allowance of
$11,968 and $4,500 at September 30, 2020 and 2019, respectively
194,319
839,951
Inventories
497,367
142,629
Prepaid expenses and other current
assets
599,296
604,740
Total current assets
9,077,725
2,146,308
Property and equipment, net
1,277,655
226,221
Other assets:
-
-
Deferred offering costs
-
109,698
Deposits
95,083
62,351
Goodwill
285,386
285,386
Intangible assets, net
605,330
734,771
Total Assets
$
11,341,179
$
3,564,735
LIABILITIES AND EQUITY
(DEFICIT)
Current liabilities:
Accounts payable and accrued
liabilities
$
1,926,427
$
1,616,997
Promissory notes payable-current
portion
329,299
-
Secured convertible notes payable , net of
debt issuance costs
1,499,116
-
Deferred revenue
511,036
628,993
Total current liabilities
4,265,878
2,245,990
Long term accrued liabilities
848,307
621,970
Promissory notes payable-long term
portion
517,488
-
Secured convertible notes payable, net of
debt issuance costs
-
1,442,497
Secured convertible notes payable,
recorded at fair value
-
102,777
Total liabilities
5,631,673
4,413,234
Commitments and contingencies (Note K)
Applied DNA Sciences, Inc. 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, 2020 and 2019, respectively
-
-
Series A Preferred stock, par value $0.001
per share; 10,000,000 shares authorized; -0- issued and outstanding
as of September 30, 2020 and 2019, respectively
-
-
Series B Preferred stock, par value $0.001
per share; 10,000,000 shares authorized; -0- issued and outstanding
as of September 30, 2020 and 2019, respectively
-
-
Common stock, par value $0.001 per share;
200,000,000 and 500,000,000 shares authorized as of September 30,
2020 and 2019, respectively; 5,142,779 and 1,207,993 shares issued
and outstanding as of September 30, 2020 and 2019, respectively
5,144
1,208
Additional paid in capital
275,548,737
255,962,922
Accumulated deficit
(269,835,650
)
(256,805,589
)
Applied DNA Sciences, Inc. stockholders’
equity (deficit):
5,718,231
(841,459
)
Noncontrolling interest
(8,725
)
(7,040
)
Total equity (deficit)
5,709,506
(848,499
)
Total liabilities and equity (deficit)
$
11,341,179
$
3,564,735
APPLIED DNA SCIENCES,
INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
YEARS ENDED SEPTEMBER 30, 2020
AND 2019
2020
2019
Revenues:
Product
$
615,430
$
2,136,055
Service
1,316,067
3,253,034
Total revenues
1,931,497
5,389,089
Cost of revenues
720,900
877,613
Operating expenses:
Selling, general and administrative
10,138,103
10,278,045
Research and development
3,321,763
2,967,278
Depreciation and amortization
285,730
390,424
Total operating expenses
13,745,596
13,635,747
LOSS FROM OPERATIONS
(12,534,999
)
(9,124,271
)
Other (expense) income:
Interest expense (including related party
interest of $46,586 for the year ended September 30, 2019)
(115,830
)
(162,432
)
Other expense, net
(378,075
)
(43,299
)
Loss on extinguishment of debt
-
(1,260,399
)
Unrealized gain on change in fair value of
secured convertible notes payable
-
1,972,955
Loss before provision for income taxes
(13,028,904
)
(8,617,446
)
Provision for income taxes
-
15,000
NET LOSS
(13,028,904
)
(8,632,446
)
Less: Net loss (income) attributable to
noncontrolling interest
1,685
9,323
NET LOSS attributable to Applied DNA
Sciences, Inc.
(13,027,219
)
(8,623,123
)
Deemed dividend related to warrant
modifications
2,842
(309,607
)
NET LOSS applicable to common
stockholders
$
(13,030,061
)
$
(8,932,730
)
Net loss per share applicable to common
stockholders-basic and diluted
$
(3.32
)
$
(9.69
)
Weighted average shares outstanding-basic
and diluted
3,919,072
921,809
APPLIED DNA SCIENCES,
INC.
CALCULATION AND RECONCILIATION
OF ADJUSTED EBITDA
(unaudited)
Three Month Period Ended
September 30,
Twelve Month Period Ended
September 30,
2020
2019
2020
2019
Net Loss
$
(4,125,146
)
$
(1,233,460
)
$
(13,028,904
)
$
(8,632,446
)
Interest expense (income), net
29,019
55,226
115,830
162,432
Depreciation and amortization
82,261
70,385
285,730
390,424
Loss on extinguishment of debt
-
1,260,399
-
1,260,399
Change in fair value of convertible notes
payable
-
(1,972,955
)
-
(1,972,955
)
Stock based compensation expense
(income)
203,503
217,468
1,001,080
1,129,110
Income tax expense
-
15,000
-
15,000
Bad debt expense
23,400
16,281
45,280
7,648
Total non-cash items
338,183
(338,196
)
1,447,920
992,058
Consolidated Adjusted EBITDA (loss)
$
(3,786,963
)
$
(1,571,656
)
$
(11,580,984
)
$
(7,640,388
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201217006001/en/
Investor contact: Sanjay M. Hurry, Applied DNA Sciences,
917-733-5573, sanjay.hurry@adnas.com Web: www.adnas.com
Twitter: @APDN
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