nasdaq: apdn€¦ · 24/5/2017 · b riley 24 may 2017 nasdaq: apdn . the statements made by...
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B RILEY 24 May 2017
NASDAQ: APDN
The statements made by Applied DNA Sciences, Inc. (the “Company”, or “us”) herein regarding the Company and its business may be forward-looking in nature and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements describe the Company’s future plans, projections, strategies and expectations, including statements regarding future results of operations and financial position, business strategy, prospective products, timing and likelihood of success, and objectives of management for future operations, and are based on certain assumptions and involve a number of risks and uncertainties, many of which are beyond the control of the Company, including, but not limited to, the risks detailed in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2016, and other reports filed by the Company with the Securities and Exchange Commission. Forward-looking statements include all statements which are not historical facts, and can generally be identified by terms such as anticipates, believes, could, estimates, intends, may, plans, projects, should, will, would, or the negative of those terms and similar expressions. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and may be beyond the Company’s control, you should not rely on these statements as predictions of future events. Actual results could differ materially from those projected due to our short operating history, history of losses, lack of market acceptance of our products and services, market competition, changes in the local and national economies, and various other factors. All forward-looking statements contained herein speak only as of the date hereof, and the Company undertakes no obligation to update any forward-looking statements, whether to reflect new information, events or circumstances after the date hereof or otherwise.
Forward-Looking Statement
Applied DNA Sciences (APDN): Quick Facts
• Emerging growth company utilizing molecular-based technology
solutions to mitigate risk and uncertainty in global supply chains
• Synthetic biology/IT platform that is already tested by execution and
enormous scale; now we must clone the experience.
• 57 employees; 44 patents; 90 patent applications, globally
• Current government contractor: DoD and non-DOD agencies
• Over 104,000 unique DNA codes deployed globally
• >160 million pounds of cotton marked with DNA
• USDA multi-year collaboration agreement on DNA barcoding of cotton
• 115 forensic cases successfully attributed to SigNature DNA evidence
• Multiple lines of revenue
Life has changed.
And the global supply chain that feeds life is now filled
with complexity, uncertainty and risk.
And change is opportunity.
Beyond single commercial clients, our DNA/IT platform secures the supply chain of
complex commercial ecosystems
Evolution of SigNature®DNA to CertainT™ Toolbox to Platform Servicing Large Commercial Ecosystems
Plant-derived molecular tags
Massive Variety
Formulation and Stability Under Stress
DNA Recovery Systems
Validation Law Enforcement &
DOD
In-Field & Data Management
Data Encryption Molecular Certificates
DNA Beacons
DNA Massive Scale
Large Commercial Ecosystems
Toolbox
Platform
Supply Chain “Product Genealogy”
bearing oil
GEN
OTY
PE
TAG
Cotton fiber Polyester
Viscose
same industry
polyethylene/polypropylene mb Fertilizer Silicone
ink/varnish
aloe / herbs cotton
pharma/personal care ingredients
Similar process
same process similar chemistry
same method
Transferability of our science and methods accelerates development & sales cycles to keep us ahead of competition.
Our competitive advantage lies in process industries where bulk materials transform to discrete goods in the value chain.
Same commodity
similar process
similar chemistry
Similar process
Same Commodity or process
Our Value Propositions from Molecular Certificates that can not be falsified
Recover counterfeit
market share Tax savings
Sustainability Organic Fair Trade Ethical Sourcing Circular Economy
Claims stay with the goods (not paper-trail or the package)
Origin Provenance Purity Authenticity
Recover lost / stolen goods
Reduce legal risk
Supply Chain Protection
Three DNA-based Business Models
Bulk DNA for Diagnostics and Therapeutics
Crime Prevention and Security
Cash and valuables
safely transported.
DNA makes it
possible.
The use of DNA-marked
degradation dye in the UK has
resulted in a 75% reduction in
cash transport attacks.
115 Convictions
>500 Sentence Years
Recovered Steering
Wheel from Chop Shop
Sting in Stockholm
Location of DNA
highlighted by fluorophore
Arrests of e commerce gang in Asia
ongoing
Press Conference by Lithuanian Police
after DNA trail broke supply chain
packaging gang
Supply Chain Protection
Three DNA-based Business Models
Bulk DNA for Diagnostics and Therapeutics
Crime Prevention and Security
The joy of sleeping
in cool cotton comfort.
DNA makes it possible.
Restoring integrity to the
worldwide cotton textile supply
chain. Ensuring quality, comfort
and compliance.
160 million pounds of cotton marked.
DNA marking at cotton
gins
8 gins on line; data transfer each
minute; DNA charge adequate to
tag 50 million lbs
Automated dilution for DNA
concentrate.
DNA added at 1 part per trillion
(ppt) of cotton.
DNA is activated on demand and
applied by aerosol during the
dehydration step.
The Essence of CertainT™
A CertainT-certified supply chain elevates your brand and products by establishing the transparency and truth that consumers desire. Above all else, CertainT of product source, authenticity, safety and provenance drives the purchase decision-making process.
Raw Material Supplier
Manufacturer Distributor Inspector Retailer / Consumer
Authentication System of Record: Chain of custody | Geo-location | Authentication records | Documents and images |Reports, queries, alerts
Check the data… Be certified for tag, type and process
Tag and test at source
Authentication Every Step of the Way
Supply Chain CertainT™ Other sources
Design and Produce
Molecular Certificate
After SigNature T DNA Marking Pima compliance about 100%
The data
speak for
themselves...
Before SigNature T DNA Marking Pima compliance less than 30%
Use of SigNature T DNA eliminates fiber
substitution and yields a 100% compliant cotton
supply chain
CertainT™ for recycled PET
Why protect leather?
Verify claims:
Sustainably produced No deforestation Controlled effluent discharge Responsible use of chemicals Animal welfare Ethically sourced No slave labour
Traceability:
Protect upstream sustainability credits beyond the split leather trading process
Focusing on the
mission.
Delivering the best
outcome.
DNA makes it
possible.
Helping the Defense Logistics Agency secure its electronic microcircuit supply chain. Over 700 thousand components marked.
Supply Chain Protection
Three DNA-based Business Models
Bulk DNA for Diagnostics and Therapeutics
Crime Prevention and Security
Patented (US, Can, China, Israel, EUR-pending) continuous flow system, scaling PCR from micro-liters to liters
Unique Bulk DNA Production
• Vaccines, diagnostics, reagents, bio-
agriculture, and gene therapies for
existing and emerging markets.
• Clinical trial to commercial supply
Benefits of PCR at the Industrial Scale • Product Flexibility. Short to long amplicons • No cellular contamination • Nucleic Acid Chemical Modification • Scalable Production • Reduced Lead Time • Cost-effective
Enabling PCR-based DNA Chemistry at an Industrial Scale
Our Strategic Advisory Board
Bob Catell Gunther Faber Dr. Mehmood Khan
Ray Kelly
Comparative Consolidated Statement of Operations
Comparative Consolidated Adjusted EBITDA
Comparative Consolidated
Balance Sheets