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

Business Transition and Strategy Applied DNA transitioned to a pure-play synthetic DNA and mRNA solutions provider, focusing on LineaDNA™, LineaRNAP™, and LineaIVT™ - The company has transitioned to a pure-play provider of synthetic DNA and mRNA manufacturing solutions for advanced biotherapeutics and diagnostics[3] - Commercialization efforts focus on LineaDNA™ (cell-free DNA production), LineaRNAP™ (next-gen T7 RNA polymerase), and LineaIVT™ (an integrated system combining both)[3] Management Commentary Management confirms operations align with core cell-free DNA and mRNA manufacturing, focusing on shareholder value - Management confirms the company is repositioned as a single business focused on its core competencies in cell-free DNA and mRNA manufacturing solutions[4] - The company is actively marketing its offerings under the LineaRx brand to deliver value to shareholders[4] Recent Corporate and Operational Updates The company achieved significant operational progress, including reduced cash burn and key commercial milestones - Monthly net cash burn from operations declined approximately 19% sequentially and 25% year-over-year due to cost-cutting initiatives[5] - Received a multi-gram follow-on order for LineaDNA valued at over $600 thousand from a global manufacturer of IVDs for a cancer diagnostic application[8] - Acquired a U.S.-based mRNA contract development manufacturing organization (CDMO) as a new customer for LineaDNA IVT templates[8] - Launched the LineaRx IVT Discovery Kit to facilitate customer evaluation and initiated industry marketing for LineaRNAP as a standalone product[8] - Initiated ISO 13485 certification, an international quality management standard, with expected completion in the first quarter of fiscal 2026[13] Third Quarter Fiscal 2025 Financial Highlights Q3 FY2025 highlights include $304 thousand revenue, $3.7 million operating loss, and $4.7 million cash Q3 FY2025 Key Financial Metrics (vs. Q3 FY2024) | Metric | Q3 FY2025 ($) | Q3 FY2024 ($) | | :--- | :--- | :--- | | Total Revenues | $304 thousand | $473 thousand | | Operating Loss | $3.7 million | $3.3 million | | Adjusted EBITDA | ($3.9 million) | ($3.2 million) | Cash Position and Burn Rate | Metric | Amount ($) | | :--- | :--- | | Cash and Cash Equivalents (as of June 30, 2025) | $4.7 million | | Monthly Net Cash Burn (Q3 FY2025) | $934 thousand | - The company executed two reverse stock splits: a 1-for-50 effective March 14, 2025, and a 1-for-15 effective June 2, 2025[11] - Financial results have been recast to report the closed MDx Testing Services business as discontinued operations, with the DNA Tagging segment wind-down included in continuing operations[9][10] Financial Statements This section presents unaudited condensed consolidated financial statements and Adjusted EBITDA reconciliation Condensed Consolidated Balance Sheets As of June 30, 2025, total assets were $9.9 million, cash $4.7 million, and liabilities $2.9 million Balance Sheet Summary (as of June 30, 2025) | Account | June 30, 2025 ($) | September 30, 2024 ($) | | :--- | :--- | :--- | | Cash and cash equivalents | $4,727,677 | $5,852,363 | | Total current assets | $5,628,902 | $8,047,671 | | Total assets | $9,934,746 | $12,789,040 | | Total current liabilities | $2,035,960 | $2,398,124 | | Total liabilities | $2,946,702 | $3,820,955 | | Total equity | $6,988,044 | $8,968,085 | Condensed Consolidated Statements of Operations Q3 FY2025 revenues were $304,393, operating loss $3.7 million, and net loss $19.4 million Statement of Operations (Three Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Total Revenues | $304,393 | $472,789 | | Gross Profit | $5,130 | $242,601 | | Loss from Operations | ($3,694,060) | ($3,306,293) | | Net (Loss) Income from Continuing Operations | ($3,647,914) | $1,883,292 | | Net (Loss) Income Attributable to Common Stockholders | ($19,445,607) | $1,879,796 | | Net (Loss) Income Per Share | ($34.00) | $1,170.48 | Reconciliation of Non-GAAP Measures (Adjusted EBITDA) Consolidated Adjusted EBITDA loss for Q3 FY2025 was $3.9 million, compared to $3.2 million prior year Adjusted EBITDA Reconciliation (Three Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Net (Loss) Income | ($3,984,109) | $1,849,501 | | Consolidated Adjusted EBITDA (Loss) | ($3,927,551) | ($3,175,688) |