Replies to post #30641 on Applied DNA Sciences Inc (APDN)

[mcsharkey]

NAAH Brother, you're fine as our nattering nabob of negativity (thank you Spiro Agnew, Vice President, ca. 68-72). Here's what I got earlier, and it seems to indicate another round of financing. In this post, I went with it having some caveats where real progress has to be made.

These are concerning.

from the "LIQUIDITY AND CAPITAL RESOURCES section of the 10K with this <Link to Full Page>
Management believes that it will be able to raise additional funds and the Company is currently in discussions with investment bankers and potential investors regarding possible financing. However, the Company has no formal commitments for any future funding, and may not be able to obtain additional financing on terms acceptable to it, if at all, in the future.

The ability of the Company to continue as a going concern is dependent on its ability to successfully accomplish the plan described in the preceding paragraphs. The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result from the outcome of this uncertainty.

We expect capital expenditures to be less than $750,000 in fiscal 2014. Our primary investments will be in laboratory equipment to support prototyping, manufacturing, our authentication services and outside services for our detector and reader development.

[Pasta]

I'm with you Shail. It's all part of the risk of investing in a penny stock company. Most penny stock companies don't have 50+ employees. That high payroll is also very risky. Keep an eye on it. If you see them laying people off you'll know the well is getting dry.