Applied DNA Sciences Inc (APDN)

[Foose]

That's always been a problem with this ticker. This one is a supply agreement where they've hashed out all the pricing details with Stony Brook so that they can just ship kits to them on demand. How many kits is completely up to the hospital. So APDN doesn't know how much revenue these orders will generate until it gets them. I'm guessing they didn't put a dollar amount on the purchase order because it was small.

I don't think the hospital wastes its time with APDN if it doesn't need the kits. And if you look at the FDA site, APDN's test is better than the one from Enzo Labs that the hospital is currently using.

Google says that Stony Brook University has 17,000 students. Throw in a few thousand for faculty and staff and you get to 20,000. Throw in a couple more thousand at the hospital and you're around 24,000. Go conservative and assume that APDN only gets 20% of that business once a week.

That's a $6.2 million dollar business in 12 months. From a company that's done $1.6 million in total revenue in the first 3 quarters of the year.

And that's not including all the other parts of the business or even from the testing business where they'll make more $, but have to wait for certification. Could that revenue get to $7+ million?

Guess we'll find out.