Applied DNA Sciences Inc (APDN)

[APDN 4 LIFE]

Quarterly report summary.

Company Overview



No other technology has ability to mark as many substraints
No other technology is uncopyable.
Cost of materials are very low.
Build out of marking detector and reader product families growing
Next breakthrough for company is real time, in field forensic reading.
Accumulated authentication demand now begins to flow back to company. $$$


Customer Growth



Multiple customers with revenues from 3 billion to 30 billion annually (HUGE COMPANIES)
Almost never lose a customer
100% annual renewal in contracts such as military
100 customers by end of fiscal year 14
Uptake globally, sales in much of globe
Closed loop application with definitive ROI for customer

100 customers x $35k annual renewal fee = $3.5 mil a year minimum renewal revenue

100 customers x 120 authentications per customer(yearly) = 12000 authentications

$500 per authentication x 12000 items = $6 mil in authentication

Total projected revenue = $9.5mil


Company Financials



1.2 million in revenue so far this year
460k recorded as deferred revenue recognized over next 12 months
Last year we did not recur any derrerred revenues
Comparison for operating expensees increase by $800k
Increase attributable to more hiring from 13 to 52 employees
Increased R&D expenses
Incurrd -$9 mil in cash flow, Non cashh adjustments of $4 mil, Warants of $2.2 mil Non cash expense has no impact of liquidity
Accelerated filer, Includes auditor report over internal control
55% of revenues stem from electronic companies to military


Revenue breakdown

electronics 46%
textiles 11%
cash value 9%

50% of business in US 30% in Europe others in Asia

Good News

Bottenfall reports 85% reduction in product theft
Reduction in burglaries of up to 90%
Cash in transit
30 military, 8 original manufacturers, NASA's JPL announces training for Signature DNA
DFARS recent counterfeiting rule is strictest in history
Suppliers must flow down counterfeiting systems
US House Arms Services Comitee meets on analysis to expand FSC class to other high risk areas
Applied DNA is the only DNA company marking parts for the Federal Agencies