Applied DNA Sciences(APDN) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenues for the three months ended December 31, 2024, increased to $1,196,617, representing a 34.3$891,164 in the same period of 2023[12] - Product revenues rose to $495,847, up 61.2$307,317 year-over-year, while service revenues increased to $374,444, a 51.5$247,147[12] - Gross profit for the quarter was $684,107, significantly higher than$231,097 in the prior year, indicating improved operational efficiency[12] - The net loss attributable to common stockholders for the quarter was $(17,546,635), compared to$(1,182,857) in the same quarter of 2023, reflecting increased expenses and warrant modifications[12] - The Company incurred a net loss of $2,668,713 and generated negative operating cash flow of$3,326,074 for the three-month period ended December 31, 2024[21] - The company reported a consolidated loss before provision for income taxes of $2,668,713 for the three-month period ended December 31, 2024, compared to a loss of$1,130,281 in 2023, indicating a significant increase in losses[87] Cash and Liquidity - Cash and cash equivalents at the end of the period were $10,044,365, up from$4,109,045 at the end of December 2023, showing improved liquidity[14] - Cash and cash equivalents increased to $9,294,365 as of December 31, 2024, up from$6,431,095 as of September 30, 2024[36] - Cash and cash equivalents as of December 31, 2024, were $9,294,365, with working capital of$8,889,342[146] Assets and Liabilities - Total assets increased to $15,970,701 as of December 31, 2024, compared to$12,789,040 at September 30, 2024, indicating growth in the company's asset base[11] - Total liabilities decreased to $3,421,056 from$3,820,955, reflecting a reduction in financial obligations[11] - Accounts payable and accrued liabilities totaled $1,610,972 as of December 31, 2024, down from$1,793,427 on September 30, 2024, indicating a decrease of about 10.1%[59] Capital and Financing - The company reported a significant increase in additional paid-in capital, rising to $339,918,754 from$318,805,058, indicating successful capital raising efforts[13] - The Company closed a registered direct offering on October 31, 2024, raising approximately $5.7 million in net proceeds after deducting fees and expenses[61] - The Company entered into a purchase agreement on October 30, 2024, to issue and sell 19,247,498 shares of Common Stock, along with various warrants, raising approximately$6.5 million in gross proceeds before expenses[170][171] Operational Changes - The Company completed a workforce reduction of approximately 20% of its total headcount and approximately 13% in annual payroll costs due to the strategic review of its DNA Tagging and Security Products and Services segment[15] - The Company plans to exit its DNA Tagging and Security Products and Services business segment, which will incur one-time personnel-related charges of approximately $300,000[15] - The company is restructuring its business model with an emphasis on Therapeutic DNA Production Services, aiming to enhance operational efficiency and market positioning[95] Segment Performance - The Company has three reportable segments: Therapeutic DNA Production Services, MDx Testing Services, and DNA Tagging and Security Products and Services[44] - Revenues from one customer within the MDx Testing Services segment accounted for 19$79,195 or 8% to $1,015,010 for the three-month period ended December 31, 2024, compared to$935,815 in the same period of 2023[141] - As of Q4 2024, there are 4,238 gene, cell, and RNA therapies in development, almost all utilizing DNA in their manufacturing process, representing a substantial market opportunity for the LineaDNA platform[111] Miscellaneous - The total rent expense for the three-month periods ended December 31, 2024, and 2023 was $188,558 and$180,916, respectively[79] - There were no changes in internal control over financial reporting that materially affected the company's financial reporting during the fiscal quarter ended December 31, 2024[166] - The company has no ongoing legal proceedings that could materially impact its financial condition[168]