NASDAQ: APDN. B RILEY 24 May 2017

Transcription

1 NASDAQ: APDN B RILEY 24 May 2017

2 Forward-Looking Statement 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 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.

3 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

4 Life has changed. And change is opportunity. And the global supply chain that feeds life is now filled with complexity, uncertainty and risk. Beyond single commercial clients, our DNA/IT platform secures the supply chain of complex commercial ecosystems

5 Evolution of SigNature DNA to CertainT Toolbox to Platform Servicing Large Commercial Ecosystems Toolbox Plant-derived molecular tags Massive Variety Formulation and Stability Under Stress DNA Recovery Systems Validation Law Enforcement & DOD Large Commercial Ecosystems In-Field & Data Management DNA Massive Scale Data Encryption Molecular Certificates DNA Beacons Platform

6 GENOTYPE TAG Supply Chain Product Genealogy ink/varnish similar chemistry bearing oil polyethylene/polypropylene mb same process Silicone similar chemistry Fertilizer similar process Viscose Cotton fiber same industry Similar process Polyester Same commodity Similar process pharma/personal care ingredients cotton same method Same Commodity or process aloe / herbs 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.

7 Our Value Propositions from Molecular Certificates that can not be falsified Tax savings Recover counterfeit market share Claims stay with the goods (not paper-trail or the package) Recover lost / stolen goods Reduce legal risk Ethical Sourcing Sustainability Organic Fair Trade Circular Economy Authenticity Origin Provenance Purity

8 Three DNA-based Business Models Crime Prevention and Security Supply Chain Protection Bulk DNA for Diagnostics and Therapeutics

9 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

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11 Recovered Steering Wheel from Chop Shop Sting in Stockholm Location of DNA highlighted by fluorophore Press Conference by Lithuanian Police after DNA trail broke supply chain packaging gang Arrests of e commerce gang in Asia ongoing

12 Three DNA-based Business Models Crime Prevention and Security Supply Chain Protection Bulk DNA for Diagnostics and Therapeutics

13 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.

14 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.

15 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.

16 Supply Chain CertainT esign and Produce olecular Certificate Other sources Authentication System of Record: Chain of custody Geo-location Authentication records Documents and images Reports, queries, alerts Authentication Every Step of the Way Tag and test at source Be certified for tag, type and process Check the data Raw Material Supplier Manufacturer Distributor Inspector Retailer / Consumer

17 The data speak for themselves... Use of SigNature T DNA eliminates fiber substitution and yields a 100% compliant cotton supply chain Before SigNature T DNA Marking Pima compliance less than 30% After SigNature T DNA Marking Pima compliance about 100%

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20 CertainT for recycled PET

21 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

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23 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.

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26 Three DNA-based Business Models Crime Prevention and Security Supply Chain Protection Bulk DNA for Diagnostics and Therapeutics

27 Unique Bulk DNA Production Patented (US, Can, China, Israel, EUR-pending) continuous flow system, scaling PCR from micro-liters to liters Vaccines, diagnostics, reagents, bioagriculture, 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

28 Our Strategic Advisory Board Bob Catell Gunther Faber Dr. Mehmood Khan Ray Kelly

29 James Hayward, Ph.D., Sc.D Thank you.

30 Comparative Consolidated Statement of Operations

31 Comparative Consolidated Adjusted EBITDA

32 Comparative Consolidated Balance Sheets