STONY BROOK, NY (PRWEB) February 11, 2014
Applied DNA Sciences, Inc. (OTCQB: APDN), (Twitter: @APDN), a provider of DNA-based anti-counterfeiting technology and product authentication solutions and services, announced results of its first quarter of fiscal 2014.
Financial Highlights for the First Fiscal Quarter 2014:
•Revenue for the first fiscal quarter of 2014 was $597,354 compared with $317,670 for the fiscal quarter of 2013. The increase in revenues of $279,684 or 88% was primarily due to increases in sales to suppliers of the United States Defense Logistics Agency (“DLA”) and in the textile industry
•This represents the highest first quarter in the Company’s history. Our revenues have increased for each of the last four fiscal years.
•Operating expenses for the first quarter were $4,410,097 compared with $2,689,828 for the year-ago first quarter. The increase is primarily attributable to higher salary expense due to an increase in employee headcount from 29 as of December 31, 2012 to 49 as of December 31, 2013. The increase in the number of employees was in production, sales, information technology and finance, to meet the anticipated future demand for sales.
•Research and development expenses increased to $459,304 for the fiscal quarter ended December 31, 2013 from $147,666 for the fiscal quarter ended December 31, 2012. The increase of $311,638 or 211% is attributable to the increased laboratory space with our new corporate headquarters as well as an increase in research and development to support the expansion of our business and markets. In particular, we have multiple work streams in progress toward a launch of new products for field detection of SigNature® DNA and the reading of optical marks which use the SigNature® DNA ingredient.
•Loss from operations for the first fiscal quarter was $3,812,743 compared with $2,372,158 in the first fiscal quarter of 2013.
•Loss from change in fair value of warrant liability during the three months ended December 31, 2013 and 2012 was $2,634,758 and $6,332,599, respectively. These non-cash losses represent the change in fair value for the respective reporting period for our warrants that are classified as liabilities.
•Net loss for the first fiscal quarter of 2014 decreased to $6,291,650 or $0.01 per share from a net loss of $8,704,757 or $0.01 per share in first fiscal quarter of 2013 primarily attributable to the factors described above.
Operational Highlights Include:
•Renewal of three contracts and initiation of four new contracts with DLA suppliers, compared to three contracts executed during the quarter ended December 31, 2012.
•To date, twenty eight (28) customers in the Military Electronics Anti-counterfeiting Program, including seven Original Component Manufacturers (OCMs) and two electronics distributors have signed and/or renewed agreements.
•Signing of an exclusivity and marking agreement with a wool consolidator and manufacturer.
•Rollout of SigNature® T, a new security platform specifically for textiles and apparel. The new DNA-based platform has been made possible by a proprietary breakthrough technology, recently developed by the Company to identify textile raw materials as well as finished products.
•Initiated collaboration with Supima®, a non-profit trade association of the American Pima cotton growers, to mark, identify, and protect 100% U.S. grown American Pima, one of the most desirable luxury cotton fibers in the world, from counterfeiting and blending. Begun in November, SigNature® T has been used to mark millions of kilograms of cotton at a major cotton grower.
•Announced the success of a large-scale international trial of our SigNature® T anti-counterfeiting platform to assure identity and originality of textiles and apparel. The trial, in collaboration with one of the world’s foremost textile organizations, displayed the capacity of the APDN platform for use in protecting massive cotton crops from counterfeiting and dilution.
•Announced the launch of a new turnkey program for electronics, military, commercial, and aerospace contractors called the Counterfeit Prevention Authentication Program or “CPA” Program. The program empowers end-users to verify the originality or provenance of parts which have been marked by their suppliers with APDN’s SigNature® DNA.
•Announced the availability of an additional version of its SigNature® DNA mark for electronic components, for use exclusively by authorized distributors. A unique mark, specifically identifying that authorized distributor, is to be applied to incoming components, or legacy inventory before shipment per customer request. From that point forward, the marked components will be absolutely identifiable as sourced from the authorized channel.
Business Development Update:
•Expansion of our Cash in Transit business to include Poland.
•Distributors are offering our DNANet® products in Sweden, Germany, Austria, Greece, Italy, Australia, and New Zealand.
•Received Notice of Allowance for one patent offering increased protection in the textiles market vertical; currently there are 22 issued patents and 31 patents pending.
•Discovery Channel segment on DNA Fog filmed with our partner, Brinks.
Dr. James Hayward, President, CEO and Chairman of APDN stated:
“Our sales pipeline and the strength of our customer base continue to grow. Our investments in R&D have provided an enviable patent estate. With a strong infrastructure in place and an experienced team of employees and management, we are delivering against stronger demands. Our military and electronics programs broaden each quarter, and the demand for textile marking has called for shipments of quantities of DNA that we believe are unprecedented in the history of biotechnology. We believe the penetration of SigNature® DNA markers in these vertical markets will positively affect future revenues as the demand for DNA authentication continues to rise. We have carefully timed our expansion to match growth. We remain steadily focused on sales.”
About Applied DNA Sciences
APDN is a provider of botanical-DNA based security and authentication solutions that can help protect products, brands and intellectual property of companies, governments and consumers from theft, counterfeiting, fraud and diversion. SigNature® DNA, SigNature T™ DNA, fiberTyping®, DNANet® and digitalDNA®, our principal anti-counterfeiting and product authentication solutions that essentially cannot be copied, provide a forensic chain of evidence and can be used to prosecute perpetrators.
The statements made by APDN may be forward-looking in nature. 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 20, 2013 and our subsequent quarterly reports on Form 10-Q. 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.
Media contact Mitchell Miller, 631-240-8818
Investor contact Debbie Bailey, 631-240-8817
Twitter @APDN, @APDNInvestor.