Applied DNA Sciences, Inc. (NASDAQ: APDN) (“Applied DNA” or the “Company”), a leader in Polymerase Chain Reaction (PCR)-based DNA manufacturing for product authenticity, traceability solutions, and nucleic acid-based biotherapeutic development, recently declared consolidated financial results for the full financial year and quarter finished September 30, 2k19.
2k19 Full Fiscal Year Financial Highlights:
- Revenues for fiscal 2k19 totalled $5.40M, an incline of 38.00 percent from $3.90M from the previous financial year. The incline in revenues was due to an incline in service revenues of $1.20M, or 57.00 percent, and an incline in product revenues of $308.00k, or 17.00 percent. The incline in revenue was primarily attributable to an incline of $1.00M from our now terminated cannabis licensing agreement, as well as an $889.00k incline in textiles relating to shipments of DNA concentrate to protect the cotton supply chain. These inclines in revenue were offset by a decline in consumer asset marking sales.
- Effective October 1, 2k18, the Company was required to adopt Accounting Standards Update (ASU; the “Update”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), utilizing the modified retrospective method. Had the Company not adopted the Update, the Company would have recognized additional revenue of approximately $915.00k throughout fiscal 2k19. This amount was primarily comprised of the recognition of $766.00k throughout the 12.0-month duration finished September 30, 2k19, under a $1.150M cotton order shipped in June 2k18, with extended payment terms. The total cumulative impact of the Update that was recorded to opening retained earnings in fiscal 2k19 was approximately $493.00k. See Cumulative Effect Adjustment and the Impact on Current Duration Financial Statements of Adopting Topic 606 attached.
- Operating costs for the financial year finished September 30, 2k19 declined by $707.00k or 5.0 percent as compared to the previous financial year. The decline is primarily attributable to approximately an $890.00k decline in payroll, due to a realignment of the sales force and reductions in overall headcount. This decline in payroll was offset by an incline in legal fees.
- Net loss for the twelve months finished September 30, 2k19 was $8.60M or $9.690 for each share, compared with a net loss of $11.70M or $15.860 for each share for the 12.0-months finished September 30, 2k18, an improvement of 26.00 percent.
- Excluding non-cash costs and interest, Adjusted EBITDA for the financial year finished September 30, 2k19 was a negative $7.60M as compared to a negative $9.80M for the previous financial year, an improvement of 22.00 percent. See below for information regarding non-GAAP measures.
Fiscal 4th-Quarter 2k19 Fiscal Results:
- Revenues inclined 40.00 percent for the 4th-quarter of fiscal 2k19 to $1.70M, compared with $1.20M reported in a similar duration of the previous financial year and declined 19.00 percent from $2.10M for the 3rd-quarter of fiscal 2k19. The incline in revenues year over year was due primarily to an incline in product revenues from shipments of DNA concentrate to protect the cotton supply chain. The decline in revenue quarter over quarter was due to the recognition of $1.00M in revenue from a licensing agreement in the cannabis industry throughout the 3rd-fiscal quarter of fiscal 2k19.
- Total operating costs declined to $3.20M for the 4th-financial quarter of 2k19, compared with $4.40M in the previous financial year’s 4th-quarter. This decline is primarily attributable to an approximate $231.00k decline in payroll, due to a realignment of the sales force and reductions in overall headcount as well as a decline of $954.00k in stock-based compensation cost.
- Net loss for the quarter finished September 30, 2k19 was $1.20M, or $1.440 for each share, compared with a net loss of $3.50M, or $4.620 for each share, for the quarter finished September 30, 2k18, an improvement of 69.00 percent, and a net loss of $1.50M, or $1.600 for each share, for the quarter finished June 30, 2k19.
- Excluding non-cash costs, Adjusted EBITDA was negative $1.60M and a negative $2.20M for the quarters finished September 30, 2k19 and 2k18, respectively. See below for information regarding non-GAAP measures.