CERTAINTY IN LARGE COMMERCIAL ECOSYSTEMS. Jim Hayward, Ph.D., Sc.D. President and CEO. 30th Annual ROTH Conference 13 March 2018

Transcription

1 30th Annual ROTH Conference 13 March 2018 CERTAINTY IN LARGE COMMERCIAL ECOSYSTEMS Jim Hayward, Ph.D., Sc.D. President and CEO 2018 Applied DNA Sciences, Inc. 1

2 Forward-Looking Statement 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, 2017, 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 lack of significant revenues, limited financial resources, history of losses, lack of market acceptance of our products and services, shifting enforcement priorities of US federal laws relating to cannabis, 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 Biotech Trifecta Great Science Huge Markets Strong IP

4 Applied DNA Sciences in Brief Based in Stony Brook, NY 30,000 sq. ft. facility ISO 9001:2008 Certified/Registered ISO/IEC 17025:2005 Accredited cgmp Ops A NASDAQ listed company: ticker APDN Shares Outstanding 27.4M Float M shares Market Cap, 9 March 2018 $48 M 55 patents issued; 75 patent applications 62+ employees Diverse customer base; proven ability to scale with industry leaders Worlds largest capacity for PCR-based DNA production; proven uncopiable by a U.S. Defense Logistics Agency red team challenge

5 Our Value Proposition Tax savings Reduce legal risk Proactive proof for stakeholders / activists Claims stay with the goods (not paper-trail or package) Recover lost / stolen goods Recover counterfeit market share Brand support Authenticity Sustainable Origin Provenance Purity Circular Economy

6 CertainT Textile Portal

7 Visibility, Decisions, Control 8 gins Internet access 68 datapoints 60 second intervals 97,920 records per day Text/ alerts Closed loop quality: Link bale ID to spray data Link bale ID to lab test data Link bale ID to shipment

8 DNA-Secured Cotton Supply Chains, Going Global Authentication System of Record: Chain of custody Geo-location Authentication records Documents and images Reports, queries, alerts Tag Test Track Raw Materials Manufacturer Distributor Inspector Retailer / Consumer

9 Two New Brands Created Forensically differentiates value in a commodity, volume-based business

10 Bed Bath & Beyond Promoting the Difference to Consumers Learn more: 10

11 High $ Revenue sources: Recurring DNA product Recurring testing services Recurring testing consumables One-time development projects Technology and trademark licensing Goods Value With Applied DNA Value created is Applied DNA Licensing Revenue potential Goods Value Without Applied DNA Low Raw Materials Manufacturer Wholesale/ Distribution 2017 Applied DNA Sciences, Inc. Retail

12 Tracking CertainT in textiles 2018 Applied DNA Sciences, Inc.

13 Innovation Through Blending: Cotton/rPet Blends 2018 Applied DNA Sciences, Inc.

14 As one of the world s foremost manufacturers of sewing thread, embroidery thread and technical textiles, A&E s global presence extends from Asia to Europe to the Americas. Dedication to providing customers with the finest products and services, at the highest quality, delivered anywhere. A&E asserts its century-old commitment to its customers, producing high quality goods by embracing contemporary quality principles and practices. Industrial Sewing Thread Embroidery Thread Consumer Products Technical Textiles

15 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

16 8 global brands Manufacturers Processors 1 year program, from field to finished goods, ends this month Superb results to date Full scale commercial trial begins

17 Secure Chip-locked DNA-Ink Cartridges only matched cartridge/device will operate CertainT enhanced Videojet systems transform inkjet codes into secure supply chain certification tools.

18 Videojet/ Applied DNA 1860 SigNature Printer Lot code containing DNA ink printed with Videojet CIJ printer

19 The Dose Becomes the Barcode FDA regards DNA as GRAS (Generally Recognized as Safe) Drug Master File almost ready to file with FDA This provides a unique new feature for our Tablet Coatings partner (Colorcon) and Capsule partner (ACG) enabling them to differentiate further as a high value supplier Molecular tagging complements FDA regulation for package serialization (parallels Videojet)

20 New Central Central DNA Testing Lab in Ahmedabad

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22 Eliminate Dilution Prevent Use in IEDs Fertilizer traced from Europe to Africa To detect dilution and provide traceability Differentiation for distributor Risk mitigation for bankers New Order, MultiContinent, Just Received

23 CertainT Cannabis Industry Compelling Business Opportunity for Applied DNA Sciences

24 Compelling Set of Industry Needs Cope with potential federal oversight Keep legal product within state borders Enhance the likelihood of subsequent permits Advanced track & trace aids safety and law enforcement Test Test Cultivator Processor Dispensary

25 Positive Indicators Fuel Optimism Expanded state participation 29 Medicinal, 9 Recreational Softening public views > 60% Americans lean toward legalization Broadened medical applications Chronic pain added and others State s helped by tax revenues CO generated over $220M in Taxes 25% CAGR projected by Forbes

26 Successful Early Lab Testing Cannabis Oil Budder Rick Simpson Oil Shatter

27 cgmp Production of PCR DNA Protected by four issued patents cgmp Available early 2018 Pharmaceutic applications: security for drug supply chains for tablets and capsules (individual doses) BioPharmaceutic applications: Diagnostics - lab and point of care Therapeutics, immunotherapy, gene therapy (recombinant expression), DNA/RNA vaccines (transient expression)

28 Thank you. Jim Hayward adnas.com