Applied DNA Sciences Inc (APDN)

[Shail]

Hi Mike,

I still don't understand why the DLA's decision to mark products themselves is being seen as bad news.

Yes we will lose out on the set-up revenue of 35k per supplier but on the other hand, this has taken the wind out of all the objections that the industry might have had to being forced to DNA mark their components. Now the DLA can merrily expand this requirement to all the FSGs and mark all incoming components. This way they also save on some set-up fees that they would have otherwise have to pay to all the suppliers.

APDN gets to provide markers to a. Ugh larger volume of components thereby increasing their universe of marked components. I think this is their ultimate game plan which relies more on the authentication business.

Hence though in the short term, it might be a loss of revenue, it suits their long term game plan. Correct me if I am wrong.