Okay. Here's why I believe APDN won't need to do another capital raise this year:
1) At the 16:20 mark, Tony Benson (Managing Director covering Europe, Middle East and Africa) stated that their Security and Asset business is currently marking 2,000 automobiles per month. This represents $50,000/month in revenue. AND, they will be adding another 1,200 vehicles in the next few months - which would increase revenues to $75,000/month. (And that's just with the current insurance companies they're working with in Scandinavia. Dr. H said there are many other groups that have seen the success of this program in Scandinavia and have made several inquiries.)
2) In the last three weeks, they've submitted quotations to mark over 2 million components for just ONE LARGE MANUFACTURER that they believe is just the "tip of the iceberg".
3) APDN has developed a molecular tagging capability to mark granulated fertilizer - which has an annual volume of 400 Billion pounds per year. He said that just a minor penetration into this market would generate a significant revenue stream for Applied DNA.
4) Another extremely large global industry is leather. This industry processes 22.9 Billion square feet per year. Tony benson and his team have managed to get the top five global brands to partially fund APDN's research into tagging their supplies. (To even be invited into this exclusive group was an amazing accomplishment in itself.) Again, just a minor penetration into this industry would represent a significant revenue stream for APDN.
5) At the 31:00 minute mark, if you listen closely, Nadine Wong talks about the successes within the cotton industry. Not only has our tagging grown significantly among all cotton producers (Organic, Lone Star, Acala, Delta, and of course, Pima) but one of those cotton producers has led to two new customers within the poultry industry. She then shows a graph of the incredible growth they expect this year within the synthetics industry. It shows growth from about 3 million pounds marked, to around 15 million pounds. And this is not just a pie-in-the-sky forecast. These are from existing projects!
6) At the 1:00 mark, Judy Murrah explains that the DoD contracts have led to numerous inquiries from other departments within the government as well as outside vendors working with the government. She calls it a trifecta event.
In conclusion, Dr. H said that they are now working with bigger and bigger companies that are within the Fortune 100 group. The sales cycle is much shorter because they don't need to do as many pilot programs to prove their products. They no longer have the challenge of early adopters because they have "crossed the chasm" of reliability. He further stated that they DO NOT plan to have another capital raise this year and that they have a substantial accounts receivable. He also said that they have differed revenue that they haven't recognized on the books yet and they have a large pipeline of projects they are working on now.
Based on these points from the shareholders meeting, I'm very comfortable that they will not have another capital raise this year.
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