Replies to post #34814 on Applied DNA Sciences Inc (APDN)

[AG_stock]

A1,
I agree that APDN should change how they charge the fee per customer. I think originally, like 5-7 years ago it was expected that there will be significant traffic of parts sent to the lab for authentication and charging $500 per DNA test should generate solid stream of revenue, so starting with just ~40K annual license fee for marking perhaps seemed reasonable at the time.

However it didn't happen, this was absurd idea from begin with, who in his right mind would spend $500 and wait 2-3weeks to authenticate bottle of wine? and you can replace "bottle of wine" with any consumer product you like.

It was obvious even 2 years ago that this business model doesn't work but like everything else with this company the executive team is too slow to react or adapt. Now they are stuck with this fee model when the company has to have several hundreds active customers to just break even.

Since the company spends next to nothing on capital expenditures (just 400K per year) most of their 12M burned per year goes to salaries, bonuses, travel etc. APDN should start heavy cost cutting program, this is the ONLY way to recover the stock price in the short term. In the long term I have no clue what will happen to be honest...

[Pasta]

Their numbers people will have to come up with a successful equation of how much to charge. It will need to be a balance between practicality and profitability.