Applied DNA Sciences(APDN) - 2025 Q3 - Quarterly Report

Financial Performance - Total revenues for the three months ended June 30, 2025, were $304,393, a decrease of 35.5% compared to $472,789 for the same period in 2024[12] - Product revenues decreased to $195,262 for the three months ended June 30, 2025, down 20.9% from $246,644 in the prior year[12] - Gross profit for the nine months ended June 30, 2025, was $1,006,887, representing a 30.2% increase from $772,829 in the same period of 2024[12] - The company reported a consolidated net loss of $(3,984,109,000) for the three-month period ended June 30, 2025, compared to a net income of $1,849,501,000 in the same period of 2024[104] - For the nine-month period ended June 30, 2025, total revenues were $1,937,506,000, compared to $2,618,313,000 for the same period in 2024, reflecting a decrease of approximately 26%[103] Operating Expenses and Losses - Operating expenses for the three months ended June 30, 2025, totaled $3,699,190, an increase of 4.2% from $3,548,894 in the prior year[12] - The company reported a loss from operations of $(3,694,060) for the three months ended June 30, 2025, compared to a loss of $(3,306,293) in the same period of 2024[12] - For the nine-month period ended June 30, 2025, the company reported a net loss of $9,988,942, compared to a net loss of $3,774,563 for the same period in 2024[16] - The company incurred a net loss from continuing operations of $9,585,822 for the nine months ended June 30, 2025, compared to $3,502,166 in the prior year[16] Cash and Assets - Cash and cash equivalents decreased to $4,727,677 as of June 30, 2025, down 19.2% from $5,852,363 as of September 30, 2024[11] - Total assets decreased to $9,934,746 as of June 30, 2025, a decline of 22.2% from $12,789,040 as of September 30, 2024[11] - Total liabilities decreased to $2,946,702 as of June 30, 2025, down 22.8% from $3,820,955 as of September 30, 2024[11] Workforce and Restructuring - The company implemented a workforce reduction of approximately 27% of its headcount, resulting in a projected 31% reduction in annual payroll expenses compared to the fiscal year ended September 30, 2024[19] - The company expects to incur approximately $300,000 in one-time charges related to the workforce reduction and ceasing operations at ADCL[111] - The company completed a workforce reduction of 39% in headcount, projecting a 31% total reduction in payroll expenses compared to the fiscal year ended September 30, 2024[177] Revenue Streams and Business Segments - The company is strategically exiting its DNA Tagging and Security Products and Services segment, which may impact future revenue streams[51] - The company has exited its MDx Testing Services business effective June 27, 2025, and accounted for its operations as discontinued[19] - The company is focused on the development and commercialization of its three technology solutions: LineaDNA, LineaRNAP, and LineaIVT, aimed at addressing unmet needs in the biopharmaceutical and diagnostics industries[122] Stock and Financing Activities - The company completed a one-for-fifty reverse stock split on March 14, 2025, followed by a one-for-fifteen reverse stock split on June 2, 2025[20] - The Company completed a registered direct offering on October 31, 2024, raising approximately $5.7 million in net proceeds after fees[70] - The Company executed a reverse stock split of one-for-fifty shares on March 14, 2025, and a subsequent one-for-fifteen split on June 2, 2025[65][67] Compliance and Legal Matters - The Company received a Notification Letter from Nasdaq on November 12, 2024, indicating non-compliance with the minimum bid price requirement of $1.00 per share, which was later resolved by regaining compliance by April 7, 2025[83][84] - The Company was notified on May 30, 2025, that it no longer satisfied the Bid Price Rule, leading to a request for a hearing to avoid delisting[86][87] - The Company had no pending litigation at the time of the report, indicating a stable legal standing[100] Management Changes - Dr. James A. Hayward retired as CEO on June 18, 2025, with a separation agreement providing for a total gross payment of $450,000 over eight months[96][97] - Judith Murrah was elected as the new CEO effective June 18, 2025, and agreed to a 15% temporary reduction in her annual base salary to $340,000[98] Miscellaneous - The effect of inflation on revenue and operating results was not significant[191] - The company filed a conformed version of its Certificate of Incorporation, effective June 2, 2025[207] - Certifications of the Chief Executive Officer and Chief Financial Officer were filed pursuant to the Sarbanes-Oxley Act of 2002[207]