Dr. Hayward continued, "Given the late date in this quarter, we expect revenues for Q1, which closes on December 31, 2014, to be over $1 million for the first time ever. In addition, steps are being taken to reduce operating costs by up to ten percent during our fiscal year 2015."
Recent Highlights:
The Company elected Joseph Ceccoli, Founder, President and CEO of Biocogent, LLC, as a member of its Board of Directors.
On December 4, 2014, the Company announced that it has signed an agreement for use of its SigNature® DNA anti-counterfeiting with a fourth Federal Agency. The initial agreement is valued at upwards of $250,000.
In October 2014, we completed a 1:60 reverse stock split, and then in November 2014 we began trading on NASDAQ under the ticker symbols APDN and APDNW, and closed on gross proceeds of $9.1 million in an underwritten public offering, of which $4.1 million was used to repurchase the remaining Series B warrants from an earlier financing.
Our SigNature DNA mark is being used to protect two European automotive manufacturers against the theft of automotive parts imported into at least one E.U. country. If found, vehicles and their component parts are traceable back to its owner and location, from anywhere on the globe.
On August 28, 2014, the Company was awarded a two-year development contract by the Office of the Secretary of Defense on behalf of the Defense Logistics Agency ("DLA") in the amount of $2.97 million. The Rapid Innovation Fund project will develop a single authentication platform -- our SigNature DNA and complementary technologies -- to identify authentic products and deter counterfeits from infiltrating six Department of Defense Federal Supply Groups ("FSGs"). This authentication platform is designed to demonstrate the technical and commercial capability to DNA mark and authenticate with multiple new industry partners. If successful, we believe that implementation at commercial scale will to lead to commercial revenue opportunities.
On July 14, 2014, the Company was awarded a Phase II SBIR contract by the U.S. Missile Defense Agency to perform research and development for avoidance of counterfeit parts by expanding the scope and scale of its existing SigNature DNA® technology platform established in its Phase I SBIR contract for Federal Supply Class 5962 electronic components, and by developing an optical reader. The contract provides for monthly payments to us totaling approximately $975,000 over a two-year period.
The DLA and U.S. Missile Defense Agency contracts are expected to provide approximately $4 million of revenue over the next two years to the Company. We believe that commercial relations established via the contracts are anticipated to provide revenue well beyond the terms of the current contracts.
APDN and a provider of polyolefins signed a term sheet for mutual development and cooperation regarding the supply of markers and related additives for polyolefin products. The contract provides for initial payments to APDN, comprised of development and exclusivity fees. The payment of further installments is dependent on achieving specific performance goals over a defined period of less than one year.
We filed a number of new patents this year, continuing to build upon our already strong intellectual property portfolio. We plan on continuing to build our patent and trademark portfolio and on vigorously defending our IP position and prosecute others attempting to infringe on our IP.
Dr. Hayward concluded, "I am confident we will remain on a growth trajectory. Our SigNature DNA platform holds the promise of securing many different industries; and there are many opportunities to cross-sell and up-sell existing customers. "
AI
