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Applied DNA Sciences Expands SigNature T Cotton Tagging with Launch of Fully-Automated DNA Transfer Systems in Arkansas, California and Texas gins

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Applied DNA Sciences Expands SigNature T Cotton Tagging with Launch of Fully-Automated DNA Transfer Systems in Arkansas, California and Texas gins

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SigNature T DNA Tags Pima and Upland Cotton Fibers Ensuring Authenticity, Traceability and Sustainability Claims

STONY BROOK, N.Y. October 11, 2016 — Applied DNA Sciences (Applied DNA), Inc. (NASDAQ: APDN), a provider of DNA-based supply chain, anti-counterfeiting, authentication, genotyping and antitheft technologies, today announced it is expanding the use of its proprietary, SigNature® T DNA technology to cotton gins in Arkansas, California and Texas, with the launch of its fully automated DNA Transfer Systems. The new systems are equipped with real-time monitoring, security and data capture, ensuring efficient and consistent DNA tagging of cotton fibers during ginning.

“We worked in collaboration with our cotton team, including the growers, ginners, and our merchant, Louis Dreyfus, to prepare and install our technology for both pima and upland cotton for this month’s harvest,” said Brian Viscount, director of product development at Applied DNA Sciences. “The fully automated systems will be used in tandem with our real-time, SigNify® On-Site DNA verification systems, establishing authenticity and integrity at the beginning of the cotton supply chain.”

The new DNA Transfer Systems are designed to handle higher volumes of SigNature T tagging, including the previously announced increase of 50 million lbs of HomeGrown™ Lonestar and 10 million lbs of HomeGrown Acala upland cottons. Gins trained and certified in SigNature T will apply the technology for the October harvest. For traceability from “source to shelf”, upland cotton can be used to produce home textiles such as towels and rugs.

“We provide certainty to a very complex textile supply chain,” said Dr. James Hayward, president and CEO of Applied DNA. “We offer an end-to-end platform that enables users to stay one step ahead. In just one DNA tagging campaign, entire companies and countries can be certain that their reputations for quality, integrity, and sustainability are preserved, from the source all the way to the shelf.”

Track-and-trace continues through the supply chain, with fiber, yarn and fabric sample genotyping and SigNature T DNA tagging and authentication managed through the digitalDNA® textiles portal. A forensic and data-driven approach for assuring quality and label compliance will continue to reduce reliance on paper documentation, which often is not sufficient to prove origin or to substantiate label claims. In the end, retailers, manufacturers and consumers will now know that the final product comes from the same cotton that left the gin at the beginning of the supply chain.

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, May 12, 2016 and August 11, 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.

Applied DNA Sciences and BLC Leather Technology Centre Ltd to Improve Transparency in the Leather Supply Chain

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STONY BROOK, N.Y. August 9, 2016 — Applied DNA Sciences (Applied DNA), Inc. (NASDAQ: APDN), a provider of DNA-based supply chain, anti-counterfeiting, authentication, genotyping and antitheft technologies, has signed a Memorandum of Understanding (MOU) with BLC Leather Technology Centre (BLC). The intention of the MOU is to utilize SigNature® T DNA (“SigNature T”) for the marking of animal pelts to ensure security of the supply chain. DNA-tagged pelts will be converted into leather by designated manufacturers and ultimately made into finished goods. This transparency is aimed at preventing the introduction of animal pelts from unsustainable and unethical sources, among other benefits.

“Applied DNA is pleased to be working with BLC and by extension the leather industry across the world to help secure the supply chain and insure the highest quality products are delivered to customers,” said Tony Benson, Managing Director, EMEA.

The companies will work together to facilitate interest in the leather community and complete feasibility testing over the next six months. All of the work Applied DNA has completed to date in cotton, wool and synthetic textiles has laid the groundwork for marking animals, pelts and leather.

“We will continue the expansion of our DNA applications in secure supply chains. DNA can be the molecular embodiment of brand, but we can also ensure claims that are essential to the modern consumer, such as organic and sustainable environmental practices, as well as ethical sourcing,” added Dr. James A. Hayward, President and CEO of Applied DNA.

“The ability to have a truly secure supply chain for the leather industry using Applied DNA SigNature DNA would provide full traceability and the opportunity for real environmental sustainability dealing with animal welfare and supply chain risk management, which are key issues currently facing brand owners, and we are delighted to be the pioneers to help make this available to our customers,” said Victoria Addy, Technical Director of BLC.

About BLC Leather Technology Centre
BLC is the leading independent leather technology centre, working with hundreds of companies in over 40 countries. BLC are leather experts and deliver a range of leather related services such as testing, fault diagnosis, consulting, auditing, informational support and research. Established for over 90 years BLC has the technical pedigree in leather technology to ensure fast, accurate solutions to technical, management or environmental leather problems.

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 report on Form 10-Q filed on February 10, 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.

Case Study: A DNA-Based Cash-in-Transit Solution

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The Client

Loomis UK, a world leading cash-handling company that moves over £150 billion in cash annually, uses Applied DNA Sciences’ (APDN) SigNature® DNA to protect its cash boxes. Loomis offers products and services that provide complete cash logistics solutions for financial institutions, retailers and other commercial enterprises. Loomis operates with approximately 23,000 employees in 400 branch offices across 20 countries.

The Challenge

In 2006, the downturn in the global economy led to a notable increase in cash-in-transit (CIT) crime. In the U.K. alone, there is an estimated £500 billion being transported each year, or £1.4 billion per day. Money stolen in CIT attacks was a major source of funding for serious organized crime. In 2008, there were 1,000 documented attacks against cash-in-transit couriers in the UK.

Previously, when banks identified dye-degraded currency, it was simply removed from circulation, but without attribution to its original owner. Prosecution was difficult without a definitive way to link the criminal to the crime.

Loomis vehicle

SigNature DNA Markers

SigNature DNA tags allow attribution of the cash, since each transport box has an individualized SigNature DNA sequence which can be readily determined at APDN’s Authentication Labs.

SigNature molecular tags resists wash off, even in aggressive industrial treatment baths. Results are not obscured by false positives. DNA can be used in a court of law as forensic evidence. SigNature DNA technology provides impactful value with real, proven results.

Patented and proprietary, SigNature DNA:

  • Will not alter the quality of the product
  • Will not require major changes to the manufacturing process or logistic chain
  • Is stable and persistent
  • Is instantly detectable with a hand-held device
  • Can be forensically authenticated in the lab
  • Covert mark cannot be removed once applied
  • Allows for 100% authentication of recovered bank notes

The Solution

Embedding SigNature DNA markers into the liquid degradation ink provides the CIT industry with a unique and cost-effective method to trace the origin of cash that is stolen.

SigNature DNA markers are being incorporated into the degradation inks used in Loomis cash boxes. In the event of a crime, DNA is automatically sprayed onto the enclosed currency along with an intense dye, resulting in both the money and offenders being contaminated. The addition of SigNature DNA markers to existing deterrents increases the likelihood of the criminal getting caught and successfully prosecuted. SigNature DNA forensically links an offender with an individual crime scene, meaning offenders cannot deny their involvement.

Applied DNA Sciences has supplied thousands of unique SigNature DNA markers developed for cash-in-transit, and has conducted testing to ensure that the DNA mark persists, even with the most strenuous attempts to wash out the ink. SigNature DNA is still detectable after notes are washed with heavy solvents, and can be forensically authenticated.

The Result

SigNature DNA markers have been successfully authenticated from recovered bank notes and the information is being used to assist in the prosecution of the alleged perpetrators. Bank notes recovered by the UK Police and submitted to APDN for forensic authentication appear to have been washed multiple times by the criminals using harsh chemicals, in an attempt to remove the dye that stained the cash during the robbery. SigNature DNA resisted removal and was still readily detectable using APDN’s proprietary methods. The same DNA markers detected on recovered bank notes have also been detected on personal items belonging to the suspects in the investigation.

The use of SigNature DNA had a direct impact on convicting criminals involved in the theft or handling of stolen cash, helping to significantly reduce the number of CViT robberies, cash loss while improving the safety of individuals working in the cash handling industry.

DNA provides a forensic trail of evidence linking the criminal to the crime, and DNA authentication supports the efforts of various law enforcement groups.

SigNature DNA markers are helping CViT companies and UK police to identify stolen cash and to link the evidence directly to the perpetrators.

DNA = DO NOT ATTEMPT!!

APDN Reports Fiscal Second Quarter 2016 Financial Results

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Company to Hold Conference Call and Webcast Today at 4:30 PM Eastern Time

STONY BROOK, NY. May 12, 2015 — 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 financial results for the fiscal 2016 second quarter ended March 31, 2016.

“Our second quarter results reflect variability in the timing of purchase orders and contract awards. While revenue was lower than we planned, we continued to advance initiatives across our revenue-generating verticals to further entrench our anti-counterfeiting and authentication solutions with customers,” stated Dr. James A. Hayward, chairman and CEO of Applied DNA. “We on-boarded six new cotton manufacturers, began offering DNAnet Home Asset Marking kits through the Automobile Association of America (AAA) website, increased the annual commitment of DNAnet used to protect luxury brands of European automobiles, and, subsequent to the close of the quarter, were awarded up to a $2.5 million follow-on Blanket Purchase Agreement (BPA) from a U.S. government agency.”

Second Quarter Financial Highlights:

  • Revenues decreased 62% for the second quarter of fiscal 2016 to $573 thousand, compared with $1.5 million reported in the second quarter of fiscal 2015, and decreased 57% from the $1.3 million reported in the first fiscal quarter ended December 31, 2015.
  • The year-over-year decrease in revenue is primarily attributable to the scheduled lower revenue from two government contract awards and a decrease in revenue from suppliers of the Defense Logistics Agency (DLA) due to the consolidation of our contracts with multiple individual suppliers of the DLA to one contract directly with DLA, as well as a decrease in revenue from another Federal Agency. The sequential decrease in revenues resulted primarily from lower revenue from the two government contract awards, a decrease in revenue in DNA manufacturing for the diagnostic market as well as decrease in revenue for textiles related to DNA transfer units that were installed during the prior fiscal quarter.
  • Total operating expenses for the second quarter of fiscal 2016 were $4.0 million, compared with $3.4 million in the prior year’s quarter, an increase of approximately $623 thousand or 18%. The increase in year-over-year total operating expenses is primarily attributable to an increase in selling, general and administrative expense, research and development expense and depreciation and amortization expenses. Total operating expense for the fiscal second quarter of 2016 decreased $224 thousand as compared to total operating expenses of $4.2 million in the fiscal first quarter of 2016. The sequential decrease is related to a decrease in selling, general and administrative expense of $434 thousand and depreciation and amortization expense of $47 thousand, offset by an increase in research and development expenses of $257 thousand.
  • Net loss for the quarter ended March 31, 2016 was $3.5 million, or $0.14 per share, compared with a net loss of $1.9 million, or $0.11 per share for the quarter ended March 31, 2015 and a net loss of $2.9 million, or $0.13 per share for the quarter ended December 31, 2015.
  • Excluding non-cash expenses, Adjusted EBITDA for the quarter ended March 31, 2016 was negative $2.8 million compared to a negative Adjusted EBITDA of $1.2 million for the same quarter last year and a negative Adjusted EBITDA of $2.2 million in the prior fiscal quarter reflecting lower revenue. See below for information regarding non-GAAP measures.
  • Cash and cash equivalents as of March 31, 2016 totaled $9.8 million as compared to $12.4 million at December 31, 2015. The decrease in cash balances is due primarily to the use of cash to fund operations.
  • Net cash used in operating activities in the fiscal second quarter of 2016 was $2.5 million. This compares with $1.6 million for the corresponding prior-year period.

First Six-Month Financial Highlights:

  • The Company recorded six-month revenues of almost $1.9 million, a decrease of 31% from the same period last fiscal year. The decrease in revenues was from a scheduled decrease in revenue related from the two government contract awards of $478,000, which expire in July and August of 2016, and a decrease in revenue from suppliers of the DLA due to the consolidation of our contracts with several individual suppliers of the DLA to one contract directly with the DLA as well as other decreases in revenue from another military customer for a total decrease of approximately $410,000. These decreases were offset by an increase in revenue in the DNA manufacturing for the diagnostic market of $242 thousand.
  • Operating expenses for the six months ended March 31, 2016 decreased by approximately $189 thousand or 2% for the same period last fiscal year. The decrease is primarily attributable to a decrease in stock-based compensation expense associated with grants to employees during the six month period ended March 31, 2015, offset by an increase in research and development expenses.
  • Net loss for the six months ended March 31, 2016 was $6.4 million or $0.27 per share, compared with a net loss of $9.7 million or $0.59 per share for the six months ended March 31, 2015.
  • Excluding non-cash expenses and interest Adjusted EBITDA for the six months ended March 31, 2016 would have been a negative $5.0 million compared with an Adjusted EBITDA of negative $2.9 million for the same period last year. See below for information regarding non-GAAP measures

Commenting on the Company’s business outlook for the second half of 2016, Dr. Hayward stated, “Although we believe we have substantial near-term opportunities in our pipeline, predicting their timing and size is an ongoing challenge. In cotton, revenue visibility through our partners is limited even as awareness and interest by brands and retailers build in the PimaCott™ and HomeGrown™ cotton brands. We are seeing interest by diverse retailers that would indicate revenue growth relative to last year, but until demand converts into firm purchase orders, we are unable to predict with certainty our growth. What is clear is that we are filling a real need in the marketplace, and I am pleased to report that PimaCott cotton is now available on the shelves of a second major North American retailer, and that apparel customers are just beginning to authenticate their cotton label compliance with our DNA.”“Progress is rarely linear and this is especially true for early-stage growth companies like Applied DNA,” concluded Dr. Hayward. “Demand for our solutions is burgeoning and we are nurturing that demand with our technology and our people to assure our future success.”

Recent Highlights:

  • On February 25, Applied DNA introduced new pharmaceutical-grade and packaging inks suitable for tablet and packaging marking in partnership with Nissha Printing Company and Kishu Giken Kogyo Co., Ltd. This partnership offers solutions for Japanese pharmaceutical manufacturers to comply with a July 2016 regulatory deadline to ensure product integrity and protect patient safety by barcoding packaging.
  • On March 2, the Company launched www.dnasecurity.net. Created in conjunction with Security Marketing Resource (SMR), the website features information and training videos on Applied DNA’s products for security professionals, law enforcement, commercial organizations and community members, and serves as a conduit to sales of the Company’s DNAnet kits.
  • On March 3, Applied DNA announced that the U.S. Patent and Trademark Office granted U.S. Patent No. 9,266,370, entitled, “DNA Marking of Previously Undistinguished Items for Traceability” to the Company on February 23, 2016. The intellectual property protected by this patent is applicable in a broad range of markets, including, pharmaceuticals, consumer products, industrial materials, and electronics.
  • On March 8, the Company announced the on-boarding of six new cotton manufacturers for Pimacott and Homegrown consumer goods. Since that announcement, additional offshore textile manufacturers have been on-boarded. The addition of these new manufacturers is expected to expand the Company’s footprint in the retail marketplace from 10 SKUs to 1,000, and from 500 stores in the U.S. Canada and Mexico to 1,700.
  • On March 21, Applied DNA announced a marketing partnership with AAA to prominently feature the Company’s DNAnet kits to the AAA East Central region’s 2.7 million members via its website.
  • On April 4, the Company introduced a proprietary enhanced DNA authentication technology to specifically quantify cotton species. With this technology, consumer cotton brands can now determine the amounts of inappropriate blends in their cotton and not just the presence of inferior blends. This technology, combined with the outcome of our United States Department of Agriculture collaboration, will benefit those retailers who have pledged to avoid products that take advantage of child labor or unethical labor practices.
  • On May 1, Applied DNA announced the appointment of former Strategic Advisory Board member Bob Miglani to the new position of Chief of Business Development to spearhead the Company’s penetration of FDA-regulated markets, including pharmaceuticals, food, personal care and medical devices. Mr. Miglani was most recently with Pfizer Inc. as Senior Director, External Medical Affairs, where he led Pfizer’s efforts to partner with external medical, scientific and consumer organizations. Mr. Miglani has a proven record of accomplishment of developing innovative partnerships with medical and healthcare organizations in the United States, Europe, India and other parts of the world.
  • On May 10, the Company announced a $2.5 million blanket purchase agreement (BPA) with an undisclosed non-defense Federal agency. This latest win builds on Applied DNA’s current roster of contracts across six defense and non-defense agencies, and represents a ten-fold increase in this agency’s initial work with Applied DNA. The BPA also allows Applied DNA to develop new products and solutions for the contracting agency at an accelerated deployment pace compared with traditional contract-development paths.

Fiscal 2016 Second Quarter Conference Call Information
The Company will hold a conference call and webcast to discuss its fiscal 2016 second-quarter results on Thursday, May 12, 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.

To Participate:
Reserve your conference call seat now at: http://dpregister.com/10084950. Conference call dial-in information will be provided at completion of the registration process.Live webcast: http://services.choruscall.com/links/apdn160512

Replay (available 1 hour following the conclusion of the live call):

• Participant Toll Free: 1-877-344-7529• Participant Toll: 1-412-317-0088
• Participant Passcode: 10084950
• Webcast replay: http://services.choruscall.com/links/apdn160512For those investors unable to attend the live call, a copy of the presentation is expected to be posted by end of business on May 12, 2016 and available under the “Investor Information” tab of the company’s web site.

About Applied DNA Sciences
Applied DNA Sciences makes life real and safe by providing biotechnology-driven solutions to help protect products, brands, entire supply chains, and intellectual property of companies, governments and consumers from theft, counterfeiting, fraud and diversion. Patented botanical DNA solutions can be used to identify, tag, track, and trace products, to help assure authenticity, traceability and quality of products. SigNature DNA 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.

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 report on Form 10-Q filed on February 10, 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.

APPLIED DNA SCIENCES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS

March 31, 2015 (unaudited)September 30, 2014
ASSETS
Current assets:
Cash and cash equivalents$984,050$1,393,132
Accounts receivable, net of allowance of $11,257 and $9,634 at March 31, 2015 and September 30, 2014, respectively1,160,304834,818
Prepaid expenses and other current assets155,593135,365
Total current assets2,299,9472,363,315
   
Property, plant and equipment, net of accumulated depreciation of $645,855 at March 31, 2015 and $759,087 at September 30, 2014587,600576,128
   
Other assets:  
Deposits61,98857,638
Deferred offering costs287,831181,104
Intangible assets, net of accumulated amortization and impairment of $302,610 and $256,208 at March 31, 2015 and September 30, 2014, respectively389,470327,872
   
Total Assets$3,626,836$3,506,057
   
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)  
   
Current liabilities:  
Accounts payable and accrued liabilities, including related party accrued interest of $– and $6,597 at March 31, 2015 and September 30, 2014, respectively$1,443,665$1,494,759
Promissory notes payable, including $1,000,000 with a related party at September 30,20141,800,000
Deferred revenue227,810583,362
Total current liabilities1,671,4753,878,121
   
Warrant liability1,096,412
   
Total liabilities1,671,4754,974,533
   
Commitments and contingencies (Note I)  
   
Stockholders’ Equity (Deficit)  
Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- shares issued and outstanding as of March 31, 2015 and September 30, 2014
Series A Preferred stock, par value $0.001 per share, 10,000,000 shares authorized; -0- issued and outstanding as of March 31, 2015 and September 30, 2014
Series B Preferred stock, par value $0.001 per share, 10,000,000 shares authorized; -0- issued and outstanding as of March 31, 2015 and September 30, 2014
Common stock, par value $0.001 per share; 500,000,000 and 1,350,000,000 shares authorized; 17,369,202 and 13,935,954 shares issued and outstanding as of March 31, 2015 and September 30, 2014, respectively17,37013,937
Additional paid in capital211,412,483198,277,859
Accumulated deficit(209,474,492)(199,760,272)
Total stockholders’ equity (deficit)1,955,361(1,468,476)
 
Total Liabilities and Stockholders’ Equity (Deficit)$3,626,836$3,506,057

APPLIED DNA SCIENCES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

 Three Months Ended March 31, 2015Three Months Ended March 31,
2014
Six Months Ended March 31, 2015Six Months Ended March 31,
2014
     
Revenues $1,518,761 $637,146 $2,760,563 $1,234,500
     
Operating expenses:    
Selling, general and administrative2,901,2073,297,7397,569,9507,143,317

Research and development

373,380359,782651,652   819,086
Depreciation and amortization123,079106,810232,805212,025
     
Total operating expenses3,397,6663,764,3318,454,4078,174,428
     
LOSS FROM OPERATIONS(1,878,905)(3,127,185)(5,693,844)(6,939,928)
     
Other income (expense):    
Interest income (expense), net                  16239     (31,859)673
Other (expense) income, net(6,693)(79,389)(13,135)76,028
Loss on conversion of promissory notes

(980,842)

Gain (loss) on change in fair value of warrant liability

 

 455,899(2,994,540)(2,178,859)
     
Net loss before provision for income taxes(1,885,582)(2,750,436)(9,714,220)(9,042,086)
     
Provision for income taxes 
     
NET LOSS$(1,885,582)$(2,750,436)$(9,714,220)$(9,042,086)
     
Net loss per share-basic and diluted$(0.11)$ (0.20)$(0.59)$(0.68)
     
Weighted average shares outstanding – Basic and diluted17,362,573 13,470,806 16,404,29913,316,179

APPLIED DNA SCIENCES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

 Three Months Ended March 31,
2015
Three Months Ended March 31,
2014
Six Months Ended March 31,
2015
Six Months Ended March 31,
2014
     
Net Loss $(1,885,582) $(2,750,436) $(9,714,220) $(9,042,086)
     
Operating expenses:    
Interest (income) expense, net(16)(239)31,859(673)
Depreciation and amortization123,079106,810232,805212,025
(Gain) loss on change in fair value of warrant liability(455,899)2,994,5402,178,859
Stock based compensation expense539,996547,7842,538,5191,650,831
Loss on conversion of promissory notes980,842
Bad debt expense1,1442,77916,144
     
Total non-cash items 663,059199,6006,781,3444,057,186
     
Consolidated Adjusted EBITDA (loss)$(1,222,523)$(2,550,836)$(2,932,876)$(4,984,900)

APDN Completes Initial Collaboration with SAS Industries

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Blending SigNature® DNA into Silicone Rubber

STONY BROOK, NY. December 2, 2015. Applied DNA Sciences has completed a six-month development project funded by existing defense contracts to demonstrate the feasibility of incorporating its SigNature® DNA technology into various conductive and non-conductive silicone elastomers. SigNature DNA was successfully proven suitable for use in both liquid silicone rubber (LSR) injection molding and in the manufacture of highly-conductive, metalized silicone composites.

Commercial grade LSR products manufactured during this initial project stage include o-rings, gaskets and specialty sealant parts. An APDN technical team led by Dr. Mike Hogan (APDN Vice President of Life Sciences) worked with SAS Industries staff to incorporate SigNature DNA into a proprietary SAS process for the manufacture of military grade, conductive metalized silicone composites used for EMI/RFI (electromagnetic interference/ radio-frequency interference) shielding. Long Island-based SAS Industries is a supplier of waveguide gaskets to the US Defense sector and has been producing gaskets and related products for multiple industries since 1973.

Subsequent project stages aim for a full commercial launch of select DNA-embedded silicone rubber products, joint presentations and exhibits at defense and commercial conferences.

Dr. Mike Hogan commented, “Embedding DNA into military grade composite materials and then authenticating the final product has generated novel challenges in terms of material science. However, working closely with industry experts, in this case SAS, has ensured fairly-rapid success. On the commercial side, LSR injection-molded parts and other composite materials are also commonly used in the automotive, medical device and toy industries. Thus, the breadth of commercial opportunity opened via technical success with our SAS partners is diverse, not only in military and aerospace applications, but more broadly, into the DNA marking and authentication of such silicone composite materials used in many commercial items.”

SAS Industries President Steve Steckis stated, “SAS is proud to support another Long Island company focused on providing cutting-edge technologies that can help protect the warfighter and regular consumers alike. We are extremely excited to participate in APDN’s DNA marking technology. Our core goal is and always has been customer satisfaction, and we strongly believe authentication and traceability solutions, such as SigNature DNA, will provide a benefit for the industries that we serve.”

About SAS Industries
SAS Industries, founded in 1973 and based in Manorville, NY, specializes in the manufacture of EMI Shielding Gaskets, Fluid Sealing Products, Static and Reciprocating Seals, Waveguide Gaskets, Connector Gaskets, Conductive Gaskets, Non-Conductive Gaskets, Washer Style Gaskets, O-Rings, and Co-Elastomer Gaskets that provide both a Conductive and Non-Conductive Environmental seal. SAS capabilities include Die Cutting, Compression Molding, Transfer Molding, Injection Molding, Liquid Injection Molding, Extruded, and Water Jet Cut Gaskets, along with a wide variety of stocked sheet and roll goods. This allows us to both convert materials from our vast network of suppliers that we have distributorships/converting agreements with to provide you with the best selection of products from some of the most prominent material manufacturers along with our own line of EMI/RFI Shielding materials.

About APDN
Applied DNA Sciences makes life real and safe by providing biotechnology-driven solutions to help protect products, brands, entire supply chains, and intellectual property of companies, governments and consumers from theft, counterfeiting, fraud and diversion. Patented botanical DNA solutions can be used to identify, tag, track, and trace products, to help assure authenticity, traceability and quality of products. SigNature DNA 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.

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 15, 2014, as amended on March 6, 2015, and our subsequent quarterly reports on Form 10-Q filed on February 9, 2015, May 11, 2015 and August 10, 2015, 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.

APDN Announces Closing of $8.75 Million Registered Direct Offering

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Stony Brook, NY. November 25, 2015 – Applied DNA Sciences, Inc. (NASDAQ: APDN) (Twitter: @APDN), a provider of DNA-based supply chain, authentication and product identification solutions, anti-counterfeiting and anti-theft technology, and product genotyping solutions announced the closing of its registered direct offering pursuant to securities purchase agreements with certain institutional investors of 2,500,000 shares of common stock at a price of $3.49 per share and its concurrent private placement of warrants to purchase 1,250,000 shares of common stock at a price of $.01 per warrant. The warrants have a per share exercise price of $4.30, are exercisable beginning six months from the date hereof and will expire five years from the date on which they become exercisable.

The aggregate gross proceeds to the Company from the registered direct offering and concurrent private placement were $8.75 million before deducting the placement agent’s fee and other estimated offering expenses.

The Company intends to use the net proceeds from the registered direct offering and concurrent private placement for general corporate purposes, including working capital, capital expenditures, business development and research and development and acquisitions of new technologies or businesses.Maxim Group LLC acted as the sole placement agent for the registered direct offering and concurrent private placement.

The shares of common stock described above were offered by Applied DNA Sciences pursuant to a “shelf” registration statement on Form S-3 (File No. 333-202432) filed with the Securities and Exchange Commission (the “SEC”), which was declared effective on March 10, 2015. A prospectus supplement relating to the shares of common stock was filed by the Company with the SEC. Copies of the prospectus supplement, together with the accompanying base prospectus, can be obtained at the SEC’s website at www.sec.gov or from Maxim Group LLC, 405 Lexington Avenue, 2nd Floor, New York, NY 10174, (212) 895-3745.The warrants and shares of common stock issuable upon exercise of the warrants have not been registered with the SEC and were offered in reliance on an exemption from the registration requirements of the Securities Act of 1933, as amended.

This press release does not constitute an offer to sell, or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Additional information can be found in the Company’s filings with the SEC available at www.sec.gov and on the Company’s website at www.adnas.com.

About Applied DNA Sciences
Applied DNA Sciences makes life real and safe by providing biotechnology-driven solutions to help protect products, brands, entire supply chains, and intellectual property of companies, governments and consumers from theft, counterfeiting, fraud and diversion. Patented botanical DNA solutions can be used to identify, tag, track, and trace products, to help assure authenticity, traceability and quality of products. SigNature DNA 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.

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 15, 2014, as amended on March 6, 2015 and our subsequent quarterly reports on Form 10-Q filed on February 9, 2015, May 11, 2015 and August 10, 2015, 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.

APDN Announces $8.75 Million Registered Direct Offering

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STONY BROOK, NY. November 23, 2015 – Applied DNA Sciences, Inc. (APDN) (APDNW) (Twitter: @APDN), a provider of DNA-based anti-counterfeiting technology, supply chain and product authentication solutions, announced that it has entered into securities purchase agreements with certain institutional investors providing for the purchase and sale of 2,500,000 shares of common stock at a price of $3.49 per share in a registered direct public offering. In a concurrent private placement, Applied DNA Sciences has agreed to sell warrants to purchase 1,250,000 shares of its common stock at a price of $0.01 per warrant, with an exercise price of $4.30 per share. The warrants will be exercisable beginning six months following the closing date of the private placement and will expire five years from the date on which they become exercisable.

The aggregate gross proceeds to the Company from the registered direct offering and private placement are estimated to be approximately $8.75 million before deducting the placement agent’s fee and other estimated offering expenses. The registered direct offering and concurrent private placement are expected to close on or about November 27, 2015, subject to customary closing conditions.

The Company intends to use the aggregate net proceeds from the registered direct offering and the concurrent private placement for general corporate purposes, including working capital, capital expenditures, business development and research and development and acquisitions of new technologies or businesses.

Maxim Group LLC is acting as the sole placement agent for the registered direct offering and the concurrent private placement.

The shares of common stock described above are being offered by Applied DNA Sciences pursuant to a “shelf” registration statement on Form S-3 (File No. 333-202432) filed with the Securities and Exchange Commission (the “SEC”), which was declared effective on March 10, 2015. A prospectus supplement relating to the shares of common stock will be filed by the Company with the SEC. When available, copies of the prospectus supplement, together with the accompanying base prospectus, can be obtained at the SEC’s website at www.sec.gov or from Maxim Group LLC, 405 Lexington Avenue, 2nd Floor, New York, NY 10174, (212) 895-3745The warrants and shares of the Company’s common stock issuable upon exercise of the warrants have not been registered with the SEC and are being offered in reliance on an exemption from the registration requirement of the Securities Act of 1933.This press release shall not constitute an offer to sell, or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Additional information can be found in the Company’s filings with the SEC available at www.sec.gov and on the Company’s website at www.adnas.com. 

About Applied DNA Sciences
Applied DNA Sciences makes life real and safe by providing biotechnology-driven solutions to help protect products, brands, entire supply chains, and intellectual property of companies, governments and consumers from theft, counterfeiting, fraud and diversion. Patented botanical DNA solutions can be used to identify, tag, track, and trace products, to help assure authenticity, traceability and quality of products. SigNature DNA 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.

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 15, 2014, as amended on March 6, 2015 and our subsequent quarterly reports on Form 10-Q filed on February 9, 2015, May 11, 2015 and August 10, 2015, 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.

APDN Identifies Suspects in Short Attack

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Persons of Interest Reported to State and Federal Authorities

STONY BROOK, NY. November 19 2015. Applied DNA Sciences announced that working with former law enforcement officials, it has identified two persons of interest believed to be involved in the short attack on the company that was perpetrated October 29, 2015. The identities of the suspects have been reported to federal authorities and will be reported to states Attorneys General.

APDN believes that the misstatements in the short attack were a deliberate effort to manipulate the stock price coincident with a quadrupling of the short positions.

Furthermore, the forensic IT investigation revealed that one of the suspects has a background in finance and has been previously fined and ordered to cease and desist operation of an unlicensed investment advisory firm. Given the suspects’ backgrounds, the research dedicated to the short attack, and the false and misleading statements and innuendos stated in the short attack, APDN’s management believes the short attack is an example of a coordinated, organized stock manipulation to achieve personal gain by the attackers.

About APDN
Applied DNA Sciences makes life real and safe by providing biotechnology-driven solutions to help protect products, brands, entire supply chains, and intellectual property of companies, governments and consumers from theft, counterfeiting, fraud and diversion. Patented botanical DNA solutions can be used to identify, tag, track, and trace products, to help assure authenticity, traceability and quality of products. SigNature DNA 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.

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 15, 2014, as amended on March 6, 2015, and our subsequent quarterly reports on Form 10-Q filed on February 9, 2015, May 11, 2015 and August 10, 2015, 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.

APDN Awarded Contract Extension By the U.S. Defense Logistics Agency (DLA) For DNA-marking with SigNature® DNA

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STONY BROOK, NY, November 4, 2015. Applied DNA Sciences, Inc. announced that the U.S. Defense Logistics Agency (DLA) has awarded the company a one-year extension of its current contract through November 12, 2016. Under the terms of the current contract, Applied DNA provides DLA with SigNature® DNA marks, related equipment, services and training at DLA’s Electronic Product Test Center in Columbus, OH, with a focus on microcircuits to support existing systems. Dr. James Hayward, President and CEO of Applied DNA Sciences, stated, “The U.S. government defense sector represents a substantial opportunity for Applied DNA Sciences and our customers, who now number five different federal agencies and are important early adopters of our technology. Our DNA-based technology offers DLA the means through which to provide supply-chain assurance and security.”

Applied DNA continues to implement additional federal contracts:

  • Phase II Small Business Innovation Research (SBIR) contract from the U.S. Missile Defense Agency awarded July 2014 to develop more efficient methods of high volume SigNature DNA application, accommodate as many as 100 original component manufacturers and develop an optical reader for in-field, rapid detection of the SigNature DNA ink marked on a component.
  • Rapid Innovation Fund (RIF) contract from the Office of the Secretary of Defense awarded August 2014 to develop a single authentication platform – Applied DNA’s “SigNature DNA” and complementary technologies – to identify authentic products and deter the infiltration of counterfeits in six Department of Defense (DOD) Federal Supply Groups (FSGs). These FSGs encompass 66 classes of commodities, including electronic and vehicular equipment components, bearings, engine accessories, pipes, tubing, hoses, and fittings, hardware and abrasives. Under this contract, Applied DNA Sciences will also perform services such as development, test and evaluation, field trials, and transition to government operations.
  • Both are non-recurring contracts. However they represent opportunities for future revenue
  • Two non-defense federal agencies maintain relationships with Applied DNA. The scope of services that the company provides, and financial terms, are confidential.
  • The company is exploring additional government relationships and potential future contracts.

Janice Meraglia, Vice President of Government and Military Programs at Applied DNA Sciences commented, “The three DOD contracts are impressive on their own, and in combination underscore the inherent flexibility of our platform and its unique functionality at a scale that government agencies need. The current DLA contract has a focus on maintenance and repair components already manufactured to support existing systems in theater; the SBIR is more targeted to newly manufactured parts and the RIF calls out for a single authentication platform across a broad range of commodities. Together, they illustrate the breadth and depth of applications of our technology to our defense and federal customers.”

About Applied DNA Sciences
Applied DNA Sciences makes life real and safe by providing biotechnology-driven solutions to help protect products, brands, entire supply chains, and intellectual property of companies, governments and consumers from theft, counterfeiting, fraud and diversion. Patented botanical DNA solutions can be used to identify, tag, track, and trace products, to help assure authenticity, traceability and quality of products. SigNature DNA 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.

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 15, 2014, as amended on March 6, 2015, and our subsequent quarterly reports on Form 10-Q filed on February 9, 2015, May 11, 2015 and August 10, 2015, 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.