2020 I Found This On The Yahoo Board.....
Please clarify the employee options section....
Thanks,,,,,,,,,,
APDN - The Good and The Bad
By mpom330.Oct 24, 2012 7:39 PM.Permalink
DNA security and tracing of criminal activity is an intriguing business. The question is, does an OTC company have what it takes to make it big in this field?
Applied DNA Sciences, Inc. (OTC:APDN, APDN message board) is a company specializing in security solutions delivered through plant DNA markers. The good news is that the company has several products that are available and being marketed. The company won several contracts, including a project using its markers to identify microchips for the Defense Logistics Agency (DLA).
The mid-August announcement of the DLA contract seems to have thrown investors in a frenzy and sent the price through the roof as it soared from $0.05 to nearly $0.15 per share, tripling in value.
The financial figures in the company's latest 10-Q report, however, are worrying. A quarterly revenue of half a million is obliterated by operating expenses of $1.9 million. The bottom line is a net loss of $1.42 million and an accumulated deficit of a startling $167 million.
There is more information further down that may raise some red flags. As of the date of the report, June 30 there were 127,208,825 shares issued to employees in the form of unexercised stock options. Traders may want to know that the average exercise price of those is $0.06, almost four times less that the current stock price of $0.205. A possible exercising of those options worth hundreds of millions of shares and a prompt dump at the current price will leave many wishing they never took up stock trading.
OTC companies are known for being higher-risk investments compared to higher-tier markets. Investors are advised to be very cautious when entering into a position in any such companies and doing their due diligence, regardless of price movement and news releases.
