Applied DNA Sciences Inc (APDN)

[Shail]

A4- I think what we need to know here is the quantum of expense related to the warrants. I remember that the last time around this was a high figure.

Hence if the pps goes up, the warrants related expense goes up substantially and the revenues do not ramp up at the same pace. I am posting an extract of the last report by Karol Gray in which she mentions about this aspect.

Our net loss for the quarter ended December 31, 2013 was $6.3 million in comparison to the $8.7 million reported for last year’s first quarter, a 28% reduction. It is important to note that approximately $2.6 million of this loss compares to $6.3 million from the prior year is considered to be “non –cash” accounting entries related to the value of certain warrants and has no impact on our liquidity. Due to certain provisions in the warrant agreements issued related to our past financings, we are required to adjust the value of the warrants to reflect the current market value. The $2.6 million reported in the consolidated statement of operations represents the change in market value during first quarter in fiscal year 2014. The statement of operations will continue to be impacted by the fluctuation in the fair market value of our warrants until they are fully exercised.