Replies to post #20494 on Applied DNA Sciences Inc (APDN)

[mcsharkey]

Yeah Wishful,
A$10Mil was asking about our loss of contracts to textiles and handbag manufacturers a couple of times. AND, he certainly digs through this much better than I ever do. Thought I posted the citation down below a while back. Sure as hell can't find it on our board now. It endorses my opinion that we're just not at the point to provide anything to mfgs. of retail products.

We had multimillion dollar contracts for retail level manufacturing in signature handbags and textiles that weren't being reported any more. The subject ALLOWANCE AND UNCOLLICTIBLE RECEIVABLES down below is how our Stony Brook team cleaned the slate of those once promising accounts when the retail manufacturing sector clients just stopped payments. Evidently because of the cost.

We're just a real high end product. How much more overhead does Gucci want to put on a handbag? Calvin Klein on a pair of jeans?

My point is I feel we are THE PRODUCT of authenticity in high end Integrated Circuits and circuit cards. Red Web and our other spinoffs will get us to the textile and retail sector down the road. Where just not there at prime time. IMHO.

Not glum. Looking forward to Thursday. Everything $10Mill has provided for us indicates a 60% or more increase in revenue this upcoming report. The marking of FCSM Class 5962 Integrated Circuits seems to be taking up the whopping butt load of that gain.

Bringing on the 5961 class or support components is going to be huge. These are the components failing most often, actually.

Pharmaceuticals will be a BIG DEAL if they do come on it will be forced on them by congressional mandate. I'm a real liberal, actually, I endorse the EPA et al. But I sure understand the backlash. Another MANDATE by Govt probably hard for a bunch of you. But that's the reality (IMHO). Yip is pointing out "NOBODY WANTS TO TAKE ON OUR COST". _____em:).

SigNATURE DNA is Rolls Royce line in all of this. I think we're about to kick some whopping @$$ on our Rolls Royce product alone this quarter. Our job is to promote the DLA's findings to pharmaceutical and currency marking.
vr
mcsharkey
From the April 2013's Department of Defense Fiscal Year (FY) 2014 President's Budget Submission

The DNA Marking Feasibility Demonstration project showed such success that the Director decided to mandate use of the technology for all microcircuit items in FSC 5962 beginning in July 2012, and efforts were directed to support the Technical/Quality Process Owner in implementing that direction.

Not trying to piss anybody off. This is in last August's Quarterly Earnings report posted 12 August 2012. Where Stonybrook dropped off the handbag dead beats:

Allowance for Uncollectible Receivables
We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of customers to make required payments. We use a combination of write-off history, aging analysis and any specific known troubled accounts in determining the allowance. If the financial condition of customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances could be required.

Fair Value of Intangible Assets
We have adopted Accounting Standards Codification subtopic 360-10, Property, Plant and Equipment ("ASC 360-10"). The Statement requires that long-lived assets and certain identifiable intangibles held and used by us be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve break-even operating results over an extended period.

We evaluate the recoverability of long-lived assets based upon forecasted undiscounted cash flows. Should impairment in value be indicated, the carrying value of intangible assets will be adjusted, based on estimates of future discounted cash flows resulting from the use and ultimate disposition of the asset. ASC 360-10 also requires assets to be disposed of be reported at the lower of the carrying amount or the fair value less costs to sell