[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1 – Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201%20%E2%80%93%20Condensed%20Consolidated%20Financial%20Statements) The company's financial position strengthened with increased assets and revenue driven by COVID-19 products, despite a net loss Condensed Consolidated Balance Sheets (Unaudited) | Account | March 31, 2021 | September 30, 2020 | | :--- | :--- | :--- | | **Total Current Assets** | $17,419,184 | $9,077,725 | | **Total Assets** | **$20,781,584** | **$11,341,179** | | **Total Current Liabilities** | $2,130,129 | $4,265,878 | | **Total Liabilities** | **$2,161,596** | **$5,631,673** | | **Total Equity** | **$18,619,988** | **$5,709,506** | Condensed Consolidated Statements of Operations (Unaudited) | Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | **Total Revenues** | $2,671,542 | $552,473 | | **Loss from Operations** | ($2,315,991) | ($2,682,208) | | **Gain on extinguishment of notes payable** | $839,945 | - | | **Net Loss** | ($1,517,078) | ($2,950,905) | | **Net Loss Per Share (basic and diluted)** | ($0.21) | ($0.79) | Condensed Consolidated Statements of Cash Flows (Unaudited) | Cash Flow Activity | Six Months Ended March 31, 2021 | Six Months Ended March 31, 2020 | | :--- | :--- | :--- | | **Net cash used in operating activities** | ($7,426,015) | ($5,151,404) | | **Net cash used in investing activities** | ($1,139,586) | ($44,752) | | **Net cash provided by financing activities** | $14,704,855 | $13,300,059 | | **Net increase in cash and cash equivalents** | $6,139,254 | $8,103,903 | | **Cash and cash equivalents at end of period** | $13,925,997 | $8,662,891 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail business expansion due to COVID-19, improved liquidity from financing, and significant debt extinguishment events - The company's business is centered on its **LinearDNA PCR-based manufacturing platform**, with applications in Biotherapeutics, COVID-19 Diagnostics, COVID-19 Surveillance, cancer technology, and Non-Biologic Tagging[20](index=20&type=chunk)[28](index=28&type=chunk)[32](index=32&type=chunk) - The company secured **approximately $13.8 million** in net proceeds from a registered direct public offering and an additional **$2.6 million** from warrant exercises, providing sufficient cash for the next twelve months[40](index=40&type=chunk)[88](index=88&type=chunk) - The company's Paycheck Protection Program (PPP) loan of **approximately $847,000** was fully forgiven, resulting in a **gain on extinguishment of debt of $839,945**[78](index=78&type=chunk)[79](index=79&type=chunk) - The company repaid **$1.67 million** to settle secured convertible notes, resulting in a **loss on extinguishment of debt of $1,774,662** for the six-month period[80](index=80&type=chunk)[87](index=87&type=chunk) Disaggregation of Revenue (Three Months Ended) | Revenue Source | March 31, 2021 | March 31, 2020 | | :--- | :--- | :--- | | Clinical laboratory testing services | $1,554,880 | $0 | | Diagnostic kits | $724,588 | $0 | | Research and development services | $124,760 | $286,598 | | Other Product/Service Revenue | $267,314 | $265,875 | | **Total** | **$2,671,542** | **$552,473** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202%20%E2%80%93%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses significant revenue growth from COVID-19 products, increased operating expenses, and a strengthened liquidity position from recent financing [Recent Developments](index=33&type=section&id=Recent%20Developments) The company's COVID-19 test kit received FDA recognition for variant detection and an expanded Emergency Use Authorization (EUA) - The FDA noted the Linea™ COVID-19 Assay Kit's **"S-gene target dropout"** pattern may aid in early identification of variants like **B.1.1.7**[140](index=140&type=chunk)[142](index=142&type=chunk) - The company received a **re-issued EUA** from the FDA, expanding the kit's use to include **serial screening for asymptomatic individuals**[143](index=143&type=chunk) [Results of Operations](index=35&type=section&id=Comparison%20of%20Results%20of%20Operations) Revenue grew 384% year-over-year driven by new COVID-19 testing services and kits, while operating expenses rose with business expansion Revenue Comparison (Three Months Ended March 31) | Revenue Type | 2021 | 2020 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Product Revenues | $965,110 | $197,801 | +$767,309 | +388% | | Service Revenues | $1,706,432 | $354,672 | +$1,351,760 | +381% | | **Total Revenues** | **$2,671,542** | **$552,473** | **+$2,119,069** | **+384%** | - The increase in Q2 FY21 product revenue was primarily driven by **approximately $785,000** in sales of the Linea COVID-19 Assay Kit[148](index=148&type=chunk) - The increase in Q2 FY21 service revenue was attributable to **$1,554,880** from COVID-19 Surveillance Testing services[149](index=149&type=chunk) - Selling, general and administrative expenses for Q2 FY21 **increased by 56% to $3.6 million**, primarily due to higher stock-based compensation, payroll, and lab supplies[151](index=151&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity improved significantly with $13.9 million in cash, supported by recent financing activities ensuring operational funding - The company had **$13.9 million in cash and cash equivalents** and **$15.3 million in working capital** as of March 31, 2021[173](index=173&type=chunk)[174](index=174&type=chunk) - Financing activities provided **$14.7 million in cash** for the six months ended March 31, 2021, primarily from a registered direct offering (**$13.8M net**) and warrant exercises (**$2.6M net**)[173](index=173&type=chunk)[175](index=175&type=chunk) - The company estimates it has **sufficient cash to fund operations for the next twelve months** from the filing date of this report[175](index=175&type=chunk) - The COVID-19 pandemic led to a **reduction of textile-related revenues** but an **increase in the Biotherapeutic Contract Research and Manufacturing business**[176](index=176&type=chunk)[177](index=177&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not applicable as the company is a smaller reporting company using scaled disclosure requirements - The company is a **smaller reporting company** and has elected scaled disclosure requirements, making this item **not applicable**[180](index=180&type=chunk) [Controls and Procedures](index=42&type=section&id=Item%204%20%E2%80%93%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - Management concluded that as of March 31, 2021, the company's **disclosure controls and procedures were effective**[182](index=182&type=chunk) - **No changes in internal control** over financial reporting occurred during the fiscal quarter that have materially affected, or are reasonably likely to materially affect, internal controls[183](index=183&type=chunk) [PART II - OTHER INFORMATION](index=43&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=43&type=section&id=Item%201%20%E2%80%93%20Legal%20Proceedings) The company reports no legal proceedings - There are **no legal proceedings to report**[185](index=185&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A%20%E2%80%93%20Risk%20Factors) New risks were identified related to the company's COVID-19 test kit, including potential false negatives and increased competition - A new risk factor highlights that the Linea™ COVID-19 Assay Kit may produce **false negatives**, which could lead to **potential termination of the EUA** by the FDA[186](index=186&type=chunk) - The company acknowledges a risk that **competitors may develop** and receive authorization for diagnostics that can also detect the 69-70del mutation, potentially **impacting sales**[187](index=187&type=chunk) [Other Information](index=43&type=section&id=Item%205%20%E2%80%93%20Other%20Information) The company received a re-issued EUA from the FDA, expanding the use of its COVID-19 kit for asymptomatic screening - On May 11, 2021, the FDA provided a **re-issued EUA** for the Linea COVID-19 Assay Kit, expanding its use to include **serial screening of asymptomatic individuals** and updating it to include the **KingFisher™ Flex Purification System**[189](index=189&type=chunk)

LinearDNA Platform Highlights - Applied DNA Sciences' LinearDNA is positioned as a disruptive nucleic acid manufacturing platform, offering a pure, fast, and flexible alternative to plasmid-based DNA production[4, 7, 17] - The LinearDNA manufacturing process enables large, gram-scale DNA production through PCR, eliminating the need for recombination or plasmids[17] - LinearDNA offers advantages over plasmid DNA, including no risk of antibiotic resistance transfer or endotoxin contamination, and faster manufacturing times (hours vs days to weeks)[20] COVID-19 Related Programs - Applied DNA Sciences has COVID-19 programs focused on detection and protection against coronavirus, including Dx, Surveillance, Variant Detection, and Vaccine Design & Production[5] - The company offers COVID-19 pooled surveillance testing services, utilizing self-collected saliva or anterior nasal swabs, with samples pooled in groups of 5[9, 11] - The Linea™ COVID-19 Assay Kit discriminates virus-positive samples for the 69-70del mutation, enabling efficient and cost-effective variant spread monitoring[16] Vaccine Development - Applied DNA Sciences is developing LinearDNA COVID-19 vaccine candidates for both humans and veterinary use, in partnership with Takis Biotech[9, 26] - Preclinical studies of LinearDNA COVID-19 human vaccine candidates yielded strong antibody and T cell responses in mice, with seroconversion in all mice to produce IgG against SARS-CoV-2 Spike protein by Day 14[26] - The company is pursuing a USDA APHIS conditional license for its veterinary vaccine to prevent SARS-CoV-2 in animals, with Phase I and II trials planned[27] Commercialization and Pipeline - Applied DNA Sciences is pursuing a multi-faceted commercialization strategy for Linear DNA, including CRO, CMO, strategic alliances, and proprietary therapeutics[23] - The company has multiple revenue-generating development customers and is developing a cancer vaccine candidate in partnership with Takis/Evvivax SRL[25] - The development pipeline includes preclinical and clinical programs in veterinary anti-cancer vaccines, LinearDNA COVID-19 human and veterinary vaccine candidates, and anti-CD19b CAR T adoptive cell therapy[26]

Applied DNA Sciences, Inc. (NASDAQ:APDN) Q1 2021 Earnings Conference Call February 11, 2021 4:30 PM ET Company Participants Sanjay Hurry - Investor Relations Beth Jantzen - Chief Financial Officer James Hayward - President and Chief Executive Officer Judy Murrah - Chief Operating Officer Conference Call Participants Yi Chen - H.C. Wainwright Jonathan Aschoff - ROTH Capital Partners Jon Salmanson - Hubble Wealth Management Operator Good afternoon and welcome to the Applied DNA Sciences’ Fiscal First Quarter ...

Financial Data and Key Metrics Changes - Total revenues for Q4 fiscal 2020 declined to $314,000 from $1.7 million in the prior period, primarily due to a decrease in product revenue from the textile industry [8][11] - Product revenues fell to $123,000 for Q4 fiscal 2020, down from $1.3 million in the prior period, while service revenue decreased to $191,000 from $423,000 [8][11] - Net loss widened to $4.1 million in Q4 fiscal 2020 compared to $1.2 million in the same period last year, with adjusted EBITDA at negative $3.8 million [11][12] - Cash and cash equivalents totaled $7.8 million as of September 30, 2020, with an average monthly cash burn rate of $980,000, an increase of 111% year-over-year [11][12] Business Line Data and Key Metrics Changes - The tagging and related supply chain services business experienced a decline in revenue due to the pandemic's impact on global supply chains, particularly in the textile industry [6][7] - Investments were made in COVID-19 testing products and services, which did not significantly contribute to Q4 revenues as contracts were signed late in the quarter [7][8] - Operating expenses increased by 31% to $4.2 million, driven by higher SG&A and R&D expenditures [9][10] Market Data and Key Metrics Changes - The company has established a diversified customer base for its safeCircle platform, including schools, businesses, and hospitals, with over 30 customers currently [46][47] - The Suffolk County government awarded a contract valued at up to $2 million for pooled surveillance testing, which could expand based on demand [16][30] Company Strategy and Development Direction - The company is pivoting towards COVID-19 diagnostics and therapeutics, with a focus on developing its LinearDNA platform for vaccines and diagnostics [19][32] - Plans to commercialize the LinearDNA platform for veterinary use are underway, with trials set to launch in March [21][22] - The safeCircle platform is designed for pooled surveillance testing, which can be adapted for various respiratory viruses beyond COVID-19 [40][41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong commitments from employees, investors, and partners despite the challenges posed by the pandemic [71] - The company anticipates that the revenues from the safeCircle surveillance business will exceed the growth rate expected from its traditional tagging business [47] Other Important Information - The company has maintained ongoing contracts in its tagging business and has obtained several issued patents that strengthen its position in the market [42] - The company is now debt-free, having repaid its secured convertible notes, with the exception of a Paycheck Protection Program loan [12][13] Q&A Session Summary Question: What role does CLEARED4 play in the Suffolk County Government contract? - CLEARED4 provides a flexible platform for tracking information and communication, and the company pays a fee for their service [44][45] Question: How many customers are on the safeCircle platform and will current revenue compensate for lost textile revenue? - The customer base includes over 30 diversified clients, and the revenue from safeCircle is expected to exceed the growth rate of the tagging business [46][47] Question: Is the cat vaccine trial on track and what about the human vaccine? - The cat vaccine trial is expected to proceed as planned, and insights gained may inform the development of the human vaccine [48][49] Question: Can you elaborate on the write-off for development expenses related to the cannabis industry? - The company is shifting its tagging methods to be more relevant to the cannabis supply chain, focusing on tagging during the chemical processing stages [61][62] Question: What were the deficiencies in the CLIA certification and when will they be addressed? - Most concerns were related to data flow in electronic systems, which have been addressed, and documentation is being submitted to the New York State Department of Health [66][67] Question: Any additional insights on gross margin and SG&A expenses for fiscal '21? - SG&A levels are expected to decrease slightly, while gross margins are anticipated to improve with the growth of the surveillance testing business [68][69]

PART I [Business](index=6&type=section&id=ITEM%201.%20BUSINESS) Applied DNA Sciences leverages its PCR-based LinearDNA platform for biotherapeutic manufacturing, supply chain security, and COVID-19 diagnostics, focusing on biopharma and COVID-19 revenue growth [Overview and Business Segments](index=6&type=section&id=Overview%20and%20Business%20Segments) The LinearDNA platform drives biotherapeutics, COVID-19 diagnostics, surveillance, iCTC technology, and non-biologic tagging for supply chain security - The company's proprietary PCR-based LinearDNA platform is central to its operations, enabling large-scale DNA production for biotherapeutics, diagnostics, and supply chain security[18](index=18&type=chunk) - In response to the pandemic, the company developed and received FDA Emergency Use Authorization (EUA) for its Linea™ COVID-19 Assay Kit in May 2020 and launched the safeCircle™ pooled surveillance testing service[18](index=18&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk) - The company is also developing an invasive circulating tumor cell (iCTC) technology for cancer diagnostics and continues its Non-Biologic Tagging business for anti-counterfeiting[18](index=18&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) [Strategy](index=9&type=section&id=Strategy) Strategy targets growth in COVID-19 diagnostics and biopharma services via the DNA platform, complemented by strategic acquisitions and alliances - The company expects future revenue growth to be driven by sales of its Linea™ COVID-19 Assay Kit, COVID-19 Surveillance Testing, and DNA manufacturing for the biotech and diagnostic markets[41](index=41&type=chunk) - A key part of the strategy is to pursue strategic acquisitions and collaborations to strengthen core technologies and enter new markets[42](index=42&type=chunk) [Markets and Competition](index=10&type=section&id=Markets%20and%20Competition) The company competes in DNA diagnostics, biotherapeutics, and anti-counterfeit tagging, facing established players in each market - The company competes in the DNA Diagnostics market, which is projected to reach **$23.8 billion by 2022**[44](index=44&type=chunk) - The company has a multi-year supply agreement with FUJIFILM Wako Pure Chemical Corp. for bulk DNA used in in vitro medical diagnostics[45](index=45&type=chunk) - Key competitors in the nucleic-acid based therapeutic and DNA manufacturing markets include Aldevron, LLC, Integrated DNA Technologies, Inc., and Novartis AG[82](index=82&type=chunk) - Competitors in the anti-counterfeiting market include Authentix, Inc., De La Rue Plc., and Oritain Global Limited[84](index=84&type=chunk) [Research and Development](index=16&type=section&id=Research%20and%20Development) R&D targets linear DNA biotherapeutics, COVID-19 diagnostics, and DNA tagging, with expenses rising in fiscal 2020 R&D Expense | Fiscal Year | R&D Expense (Approx.) | | :--- | :--- | | 2020 | $3.3 million | | 2019 | $3.0 million | - R&D efforts include developing linear DNA-based COVID-19 and cancer vaccine candidates in collaboration with Takis/Evvivax[71](index=71&type=chunk) [Customer Concentration](index=18&type=section&id=Customer%20Concentration) Significant customer concentration, with a few customers driving substantial revenue and accounts receivable, presents a material business risk Customer Concentration | Metric | Fiscal Year 2020 | Fiscal Year 2019 | | :--- | :--- | :--- | | **Revenue Concentration** | **46% from 4 customers** | **68% from 3 customers** | | **Accounts Receivable Concentration** | **74% from 4 customers** | **77% from 1 customer** | [Government Regulation](index=20&type=section&id=Government%20Regulation) Products, particularly diagnostics and biopharma, face extensive government regulation, including temporary FDA EUA for COVID-19 tests and potential LDT oversight - The Linea™ COVID-19 Assay Kit operates under an FDA Emergency Use Authorization (EUA), which is effective only for the duration of the public health emergency and can be revoked[92](index=92&type=chunk)[115](index=115&type=chunk) - Surveillance testing is not regulated by the FDA, and CLIA certification is not required to conduct it, according to current CMS guidance[93](index=93&type=chunk) - The company's iCTC capture assay is currently considered a Laboratory Developed Test (LDT), a category over which the FDA is exercising enforcement discretion, and future regulation could impose significant costs and delays[111](index=111&type=chunk)[220](index=220&type=chunk) [Risk Factors](index=29&type=section&id=ITEM%201A.%20RISK%20FACTORS) Significant risks include going concern doubts, potential EUA revocation, COVID-19 test obsolescence, customer concentration, intense competition, and regulatory hurdles - The company's financial condition, including a history of net losses, raises **substantial doubt about its ability to continue as a going concern**[132](index=132&type=chunk)[149](index=149&type=chunk) - The Linea™ COVID-19 Assay Kit is sold under an FDA EUA that could be revoked or terminated, and the COVID-19 Surveillance Testing could become obsolete, particularly with the rollout of vaccines[135](index=135&type=chunk)[136](index=136&type=chunk)[167](index=167&type=chunk) - The company's opportunities in pharmaceuticals and biologics require substantial additional funding and face significant development and regulatory risks[134](index=134&type=chunk)[158](index=158&type=chunk) - The company faces intense competition in all its markets, including supply chain security, diagnostics, and biotherapeutics, from larger companies with greater resources[137](index=137&type=chunk)[138](index=138&type=chunk)[182](index=182&type=chunk) [Unresolved Staff Comments](index=50&type=section&id=ITEM%201B.%20UNRESOLVED%20STAFF%20COMMENTS) The company reports no unresolved staff comments from the SEC - None[252](index=252&type=chunk) [Properties](index=50&type=section&id=ITEM%202.%20PROPERTIES) Headquarters and primary labs are in a leased 30,000 sq ft facility in Stony Brook, NY, with a satellite testing facility in Ahmedabad, India - The company's headquarters is a **30,000 sq. ft. leased facility** in Stony Brook, NY, with the lease renewed until January 2022[253](index=253&type=chunk) - A satellite testing facility is maintained in Ahmedabad, India, with a lease renewed until September 2021[253](index=253&type=chunk) [Legal Proceedings](index=51&type=section&id=ITEM%203.%20LEGAL%20PROCEEDINGS) The company is not currently involved in any material legal proceedings that would adversely affect its business or financial condition - The company is not currently involved in any material legal proceedings[254](index=254&type=chunk) [Mine Safety Disclosures](index=51&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This item is not applicable to the company - Not applicable[255](index=255&type=chunk) PART II [Market for Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=52&type=section&id=ITEM%205.%20MARKET%20FOR%20COMMON%20EQUITY,%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) The company's common stock trades on Nasdaq under "APDN", with no history or anticipation of cash dividend payments - The company's common stock trades on **The Nasdaq Capital Market** under the symbol "APDN"[257](index=257&type=chunk) - No cash dividends have ever been paid, and none are anticipated in the foreseeable future[259](index=259&type=chunk) [Selected Financial Data](index=52&type=section&id=ITEM%206.%20SELECTED%20FINANCIAL%20DATA) As a Smaller Reporting Company, this information is not applicable due to scaled disclosure requirements - Not applicable as the company is a Smaller Reporting Company[260](index=260&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=52&type=section&id=ITEM%207.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) FY2020 revenue fell 64% to $1.9 million, net loss increased 51% to $13.0 million, raising going concern doubts despite $19.4 million in financing [Results of Operations](index=55&type=section&id=Results%20of%20Operations) FY2020 total revenues fell 64.2% to $1.9 million, product and service revenues declined, R&D rose 12%, resulting in a $13.0 million net loss Financial Performance Summary | Financial Metric | FY 2020 | FY 2019 | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenues** | **$1,931,497** | **$5,389,089** | **(64.2%)** | | Product Revenues | $615,430 | $2,136,055 | (71.2%) | | Service Revenues | $1,316,067 | $3,253,034 | (59.6%) | | **Cost of Revenues** | **$720,900** | **$877,613** | **(17.9%)** | | **Operating Expenses** | **$13,745,596** | **$13,635,747** | **0.8%** | | R&D Expenses | $3,321,763 | $2,967,278 | 12.0% | | SG&A Expenses | $10,138,103 | $10,278,045 | (1.4%) | | **Net Loss** | **($13,028,904)** | **($8,632,446)** | **51.0%** | - The decrease in product revenue was primarily driven by a **$1.35 million decline** in textiles-related shipments of DNA concentrate, attributed to the global shutdown from the COVID-19 pandemic[283](index=283&type=chunk) - The increase in R&D expense was mainly due to costs associated with the development and validation of the Linea™ COVID-19 Assay Kit and COVID-19 Surveillance Testing[287](index=287&type=chunk) [Liquidity and Capital Resources](index=58&type=section&id=Liquidity%20and%20Capital%20Resources) As of Sep 30, 2020, cash was $7.8 million and working capital $4.8 million; recurring losses raise going concern doubts, despite $19.4 million in financing - The company has recurring net losses and an accumulated deficit of **$269.8 million** as of September 30, 2020, raising **substantial doubt about its ability to continue as a going concern**[297](index=297&type=chunk)[385](index=385&type=chunk) Liquidity Metrics | Metric | As of Sep 30, 2020 | | :--- | :--- | | Cash and cash equivalents | **$7,786,743** | | Working capital | **$4,811,847** | | Cash used in operations (FY2020) | **($11,143,059)** | | Cash from financing (FY2020) | **$19,434,512** | - In November 2019, the company closed an underwritten public offering, raising approximately **$10.8 million in net proceeds**[301](index=301&type=chunk)[302](index=302&type=chunk) - Subsequent to year-end, in October 2020, the company received **$1.67 million** from a warrant exercise and repaid **$1.67 million** in secured convertible notes[321](index=321&type=chunk)[327](index=327&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=65&type=section&id=ITEM%207A.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) As a Smaller Reporting Company, this information is not applicable due to scaled disclosure requirements - Not applicable as the company is a Smaller Reporting Company[331](index=331&type=chunk) [Financial Statements and Supplementary Data](index=65&type=section&id=ITEM%208.%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) This section refers to the consolidated financial statements and the independent auditor's report, included from page F-1 to F-30 - The company's audited consolidated financial statements for the fiscal years ended September 30, 2020 and 2019 are included in the report[331](index=331&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=65&type=section&id=ITEM%209.%20CHANGES%20IN%20AND%20DISAGREEMENTS%20WITH%20ACCOUNTANTS%20ON%20ACCOUNTING%20AND%20FINANCIAL%20DISCLOSURE) This item is not applicable to the company - Not applicable[331](index=331&type=chunk) [Controls and Procedures](index=66&type=section&id=ITEM%209A.%20CONTROLS%20AND%20PROCEDURES) As of September 30, 2020, management concluded that disclosure controls and procedures and internal control over financial reporting were effective - Management concluded that the company's disclosure controls and procedures were effective as of September 30, 2020[334](index=334&type=chunk) - Management's assessment concluded that internal control over financial reporting was effective as of September 30, 2020[336](index=336&type=chunk) [Other Information](index=66&type=section&id=ITEM%209B.%20OTHER%20INFORMATION) The company reports no other information for this item - None[337](index=337&type=chunk) PART III [Directors, Executive Officers, Corporate Governance, Compensation, Security Ownership, and Accountant Fees](index=67&type=section&id=ITEMS%2010-14) Information for Items 10-14, including directors, executive compensation, and accountant fees, is incorporated by reference from the 2021 proxy statement - Information for Items 10, 11, 12, 13, and 14 is incorporated by reference from the company's definitive proxy statement to be filed within 120 days of the fiscal year-end[339](index=339&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=67&type=section&id=ITEM%2015.%20EXHIBITS%20AND%20FINANCIAL%20STATEMENT%20SCHEDULES) This section lists documents filed as part of Form 10-K, including consolidated financial statements and exhibits, with schedules omitted as not applicable - The consolidated financial statements for the years ended September 30, 2020 and 2019, along with the independent auditor's report, are filed with this report[340](index=340&type=chunk) - An index of all exhibits filed with the report is provided[341](index=341&type=chunk)

Applied DNA Sciences, Inc. (NASDAQ:APDN) Q3 2020 Earnings Conference Call August 6, 2020 4:30 PM ET Company Participants Sanjay Hurry - Executive Director of Investor Relations & Corporate Communications Beth Jantzen - Chief Financial Officer James Hayward - Chairman, President & Chief Executive Officer Conference Call Participants Yi Chen - H.C. Wainwright Anthony Vendetti - Maxim Operator Good day, and welcome to the Applied DNA Sciences Fiscal Third Quarter 2020 Financial Results Conference Call. All par ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.001 par value APDN The Nasdaq Capital Market FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 0 ...