Applied DNA Sciences Inc (APDN)

[Shail]

Their burn rate is pretty high. Right now they are losing about $5 mill per quarter after removing the non-cash loss.

Hence I would guess that in order to sustain their operations, they would need at least 10-15 mill per year, assuming some revenue growth and control over expenses.

Given their precarious financial situation, they would like to secure themselves for at least 2 years instead of looking for funds quarter on quarter.

Getting up listed allows them to do that with a lower number of shares though it will be interesting to see who would be willing to pay the, 4.8 per share. Maybe some big fund will agree, based on the future potential that they see.

Either way it is not as straightforward as it appears. There are the advantages and the risks associated with this RS. My main concern being, do they have the revenues to sustain a $4.8 pps for long. Current revenue growth compared to expense growth has been pathetic