Applied DNA Reports Third Quarter Fiscal 2025 Financial Results

Rhea-AI Summary

Applied DNA Sciences (NASDAQ:APDN) reported its Q3 fiscal 2025 financial results, highlighting its transition to a pure-play provider of synthetic DNA and mRNA manufacturing solutions through its LineaRx subsidiary. The company reported revenues of $304,000, down from $473,000 in Q3 2024, with an operating loss of $3.7 million.

The company is commercializing three key technologies: LineaDNA™ (cell-free DNA production platform), LineaRNAP™ (next-generation T7 RNA polymerase), and LineaIVT™ (integrated system). Notable achievements include a $600,000+ follow-on order for LineaDNA and reduced monthly cash burn by 19% sequentially. The company ended the quarter with $4.7 million in cash.

Positive

• Secured $600,000+ follow-on order for LineaDNA from global IVD manufacturer
• Monthly net cash burn reduced by 19% sequentially and 25% year-over-year
• Successfully expanded customer base with new U.S.-based mRNA contract development manufacturing organization
• Initiated ISO 13485 certification process for enhanced market opportunities

Negative

• Revenue declined to $304,000 from $473,000 in Q3 2024
• Operating loss increased to $3.7 million from $3.3 million year-over-year
• Adjusted EBITDA worsened to negative $3.9 million from negative $3.2 million
• Required two reverse stock splits (1:50 and 1:15) during the quarter

Insights

Biotechnology Financial Analyst

Applied DNA's Q3 shows declining revenue, continued losses, but strategic repositioning and reduced cash burn following significant restructuring.

Applied DNA's Q3 fiscal 2025 results paint a picture of a company in transition. Revenue declined to $304,000 from $473,000 year-over-year, while operating losses widened to $3.7 million from $3.3 million. The company has implemented significant restructuring, including workforce reductions and the closure of two business segments to focus exclusively on its LineaRx subsidiary's synthetic DNA and mRNA manufacturing solutions.

The most promising development is the 19% sequential reduction in monthly cash burn to $934,000, representing a 25% decrease year-over-year. With $4.7 million in cash on hand as of June 30, this gives the company approximately 5 months of runway at current burn rates. However, management expects further reductions in cash burn for the following quarter, which could extend this timeline.

On the business development front, Applied DNA secured a follow-on order for LineaDNA valued at over $600,000 from a global IVD manufacturer and added new customers for its LineaDNA templates. The company has launched new products including the LineaRx IVT Discovery Kit and LineaRNAP as a standalone product, and is pursuing ISO 13485 certification expected in Q1 fiscal 2026.

The strategic pivot to focus exclusively on LineaRx's DNA/mRNA technologies represents a bet on the growing biotherapeutics market, including gene therapies and mRNA applications. This focus on core competencies could streamline operations but also means the company is all-in on the commercial success of its LineaDNA, LineaRNAP, and LineaIVT platforms. The transition from diversified revenue streams to a single business model increases execution risk in the near term.

Notably, the company underwent two reverse stock splits during the period (1:50 in March and 1:15 in June), typically signs of financial distress and attempts to maintain Nasdaq listing requirements. While the company received $723,000 from warrant exercises during the quarter and an additional $292,000 subsequently, sustainable revenue growth from core operations will be critical for long-term viability.

STONY BROOK, NY / ACCESS Newswire / August 14, 2025 / Applied DNA Sciences, Inc. (NASDAQ:APDN) ("Applied DNA" or the "Company"), a biotechnology company focused on providing nucleic acid production solutions for the biopharmaceutical and diagnostics industries, today reported financial results for its third quarter of fiscal 2025 ended June 30, 2025. The Company's Form 10-Q for its fiscal third quarter can be viewed on the SEC Filings page of its Investor Relations website. The Company will not host a conference call to discuss these results. Applied DNA investor relations remains available for questions at investors@adnas.com .

Following its previously announced recent restructuring and workforce reductions ("Corporate Actions"), the Company, through its majority-owned LineaRx, Inc. subsidiary, has transitioned to a pure play provider of synthetic DNA and mRNA manufacturing solutions for advanced biotherapeutics, such as gene therapies, personalized medicine, adoptive cell therapies, messenger RNA (mRNA) therapeutics, and DNA vaccines, as well as diagnostic applications that utilize chemically-modified DNA. The Company is commercializing three distinct and complementary technology solutions for DNA production:

• LineaDNA™: A proprietary, cell-free DNA production platform that uses a large-scale PCR process to rapidly and efficiently produce high-fidelity, synthetic DNA as a market-ready alternative to plasmid DNA (pDNA). LineaDNA is applicable to biotherapeutics development and production, serving as the starting material for mRNA therapeutics and vaccines and as a critical component in numerous in vitro diagnostics (IVDs).

• LineaRNAP™: A next-generation T7 RNA polymerase (RNAP) used to transcribe DNA into mRNA. Designed as a direct replacement for wild-type T7 RNAP currently utilized in conventional IVT mRNA systems that use synthetic or pDNA templates, LineaRNAP incorporates a patented DNA-binding domain that delivers high mRNA yields while reducing double-stranded RNA (dsRNA) contamination, the latter a common byproduct in mRNA production.

• LineaIVT™: An integrated system that combines the LineaDNA and LineaRNAP technologies and their respective benefits. For mRNA manufacturers, we believe LineaIVT offers reduced dsRNA contamination and expedited mRNA drug substance production, among other advantages.

Management Commentary

"Our operational activities center on repositioning Applied DNA as a single business that is aligned with our proven core competencies, which underpin our commercially available, cell-free DNA and mRNA manufacturing solutions offerings. With operations now right-sized, coupled with active marketing under the LineaRx brand that is now synonymous with synthetically produced DNA, we look forward to delivering value to shareholders," stated Judy Murrah, chairperson, president, and CEO of Applied DNA.

Recent Corporate and Operational Updates

Financial

• Monthly net cash burn from operations in the reported quarter declined approximately 19% on a sequential basis and 25% compared to the prior year period due to cost-cutting and optimization initiatives implemented in prior quarters. The Company expects a further reduction in the quarter ending September 30, 2025, reflecting the implementation of Corporate Actions.

Customer Acquisition and Repeat Orders

• Received a multi-gram follow-on order for LineaDNA valued at over $600 thousand from a global manufacturer of IVDs for use in a cancer diagnostic application.

• Added a U.S.-based mRNA contract development manufacturing organization as a customer for LineaDNA IVT templates. This customer is also evaluating LineaRNAP.

• Shipped multiple LineaDNA sequences to a U.S.-based developer of a novel vaccine delivery system.

• Subsequent to quarter-end, sales quotes were provided to a large public biotech and a multinational biotech tools company for LineaDNA to be used in gene editing applications.

Product and Platform Development

• Launched the LineaRx IVT Discovery Kit, which enables potential customers to easily and rapidly evaluate the benefits of LineaDNA and LineaIVT performance against conventional mRNA production methods.

• Launched industry marketing for LineaRNAP as a standalone product based on recent Company data confirming that LineaRNAP can be used in conventional mRNA production workflows to enable higher mRNA yields and integrity with reduced dsRNA as compared with conventional wild-type T7 RNAP. The Company also continues to market LineaRNAP as a component of its integrated LineaIVT solution.

• Initiated ISO 13485 certification, an internationally recognized quality management standard aligned with GMP, to enhance customer trust, expand market opportunities, and elevate LineaRx's competitive position. The Company expects to be ISO 13485-certified in the first quarter of fiscal 2026.

• Participated in multiple mRNA-focused conferences to engage potential customers and showcase its platforms' capabilities as part of LineaRx's ongoing sales and marketing strategy.

Third Quarter Fiscal 2025 Financial Highlights

As part of the Corporate Actions, the Company announced the closure of its MDx Testing Services business segment (Applied DNA Clinical Labs) to focus exclusively on LineaRx. Financial results for the reported and prior periods have been recast to separately report discontinued operations and the results of continuing operations.

In February 2025, the Company announced the wind down of its DNA Tagging and Security Products and Services business segment and continues to terminate business activities in this segment in accordance with customer agreements. Financial results for this segment are included in the results of continuing operations for the reported and prior periods.

Please refer to segment information detailed in the 'Note H - Segment Information' section of the Form 10-Q for the period reported for more information.

On March 13, 2025, the Company filed a Certificate of Amendment of its Certificate of Incorporation with the Secretary of State of the State of Delaware that effected a one-for-fifty (1:50) reverse stock split of its common stock, par value $0.001 per share, effective March 14, 2025. On May 29, 2025, the Company filed a Certificate of Amendment of its Certificate of Incorporation with the Secretary of State of the State of Delaware that effected a one-for-fifteen (1:15) reverse stock split of its common stock, par value $0.001 per share, effective June 2, 2025. All warrant, option, share, and per share information in this press release gives retroactive effect to these reverse stock splits.

Summary Financial Results

• Total revenues: $304 thousand compared to $473 thousand in the third quarter of fiscal 2024.

• Operating loss: $3.7 million, compared to an operating loss of $3.3 million in the prior period.

• Adjusted EBITDA: Negative $3.9 million, compared to negative $3.2 million in the prior period.

• Monthly net cash burn: Monthly net cash burn from operations in the reported period was $934 thousand, compared to $1.15 million in the second quarter of fiscal 2025 and $1.25 million in the prior fiscal year period.

• Cash and cash equivalents as of June 30, 2025: $4.7 million, which includes $723 thousand of proceeds from the exercise of Series A warrants received during the reported period. Additional proceeds totaling $292 thousand were received subsequent to the reported period from the exercise of Series A warrants.

Information about Non-GAAP Financial Measures

As used herein, "GAAP" refers to accounting principles generally accepted in the United States of America. To supplement our condensed consolidated financial statements prepared and presented in accordance with GAAP, this earnings release includes Adjusted EBITDA and monthly net cash burn from operations, which are non-GAAP financial measures as defined in Rule 101 of Regulation G promulgated by the Securities and Exchange Commission. Generally, a non-GAAP financial measure is a numerical measure of a company's historical or future performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information presented in accordance with GAAP. We use this non-GAAP financial measure for internal financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons of the performance and results of operations of our core businesses. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding the performance of our businesses by excluding non-cash expenses that may not be indicative of our recurring operating results. We believe these non-GAAP financial measures are useful to investors as they allow for greater transparency with respect to key metrics used by management in its financial and operational decision making.

"EBITDA" - is defined as earnings (loss) before interest expense, income tax expense and depreciation and amortization expense.

"Adjusted EBITDA" - is defined as EBITDA adjusted to exclude (i) stock-based compensation and (ii) other non-cash expenses and non-cash gains/income.

"Monthly net cash burn" - is defined as total monthly cash outflow, including all operating costs, reduced by cash inflow from revenue.

About Applied DNA Sciences

Applied DNA Sciences is a biotechnology company focused on providing nucleic acid production solutions for the biopharmaceutical and diagnostics industries. Through its majority-owned subsidiary, LineaRx, Inc., the Company is commercializing its LineaDNA™, LineaRNAP™, and LineaIVT™ platforms to enable the manufacture of next-generation nucleic acid-based therapies.

Visit adnas.com for more information. Follow us on X and LinkedIn . Join our mailing list .

Forward-Looking Statements

The statements made by Applied DNA in this press release may be "forward-looking" in nature within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements describe Applied DNA's future plans, projections, strategies, and expectations, and are based on assumptions and involve a number of risks and uncertainties, many of which are beyond the control of Applied DNA. These forward-looking statements are based largely on the Company's expectations and projections about future events and future trends affecting our business and are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements, including statements regarding its goal to position the Company for long-term growth and value creation and the potential to achieve that goal, including the future success of its LineaDNA, LineaRNAP and LineaIVT technologies. Actual results could differ materially from those projected due to its history of net losses, limited financial resources, unknown future ability to remain compliant with all Nasdaq listing standards, unknown future demand for its biotherapeutics products and services, the unknown amount of revenues and profits that will result from its technologies, the fact that there has never been therapeutic clinical trial material and/or a commercial drug product produced utilizing its technologies, whether its restructuring will position the Company for future growth potential, as well as various other factors detailed from time to time in Applied DNA's SEC reports and filings, including its Annual Report on Form 10-K filed on December 17, 2024, Forms 10-Q filed on February 13, 2025, May 15, 2025, and August 14, 2025, and other reports it files with the SEC, which are available at www.sec.gov . Applied DNA undertakes no obligation to update publicly any forward-looking statements to reflect new information, events, or circumstances after the date hereof or to reflect the occurrence of unanticipated events, unless otherwise required by law.

Investor Relations contact: Sanjay M. Hurry, 917-733-5573, sanjay.hurry@adnas.com

Web: www.adnas.com

X: APDN

- Financial Tables Follow -

APPLIED DNA SCIENCES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

		June 30,				September 30,
		2025				2024
ASSETS		(unaudited)
Current assets:
Cash and cash equivalents		$	4,727,677			$	5,852,363
Accounts receivable, net of allowance for credit losses of $80,423 and $75,000 at June 30, 2025 and September 30, 2024, respectively			199,047				328,252
Inventories			338,723				432,725
Prepaid expenses and other current assets			338,447				756,185
Current assets of discontinued operations			25,008				678,146
Total current assets			5,628,902				8,047,671
Property and equipment, net			511,203				458,895
Noncurrent assets of discontinued operations			11,264				94,337
Other assets:
Restricted cash			750,000				750,000
Intangible assets			2,698,975				2,698,975
Operating right of use asset			334,402				739,162
Total assets		$	9,934,746			$	12,789,040
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities		$	1,564,707			$	1,737,366
Operating lease liability, current			334,403				545,912
Deferred revenue			12,285				58,785
Current liabilities of discontinued operations			124,565				56,061
Total current liabilities			2,035,960				2,398,124
Long term accrued liabilities			31,467				31,467
Deferred revenue, long term			194,000				194,000
Operating lease liability, long term			-				193,249
Deferred tax liability, net			684,115				684,115
Warrants classified as a liability			1,160				320,000
Total liabilities			2,946,702				3,820,955
Commitments and contingencies (Note G)
Applied DNA Sciences, Inc. stockholders' equity:
Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- shares issued and outstanding as of June 30, 2025 and September 30, 2024			-				-
Series A Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- issued and outstanding as of June 30, 2025 and September 30, 2024			-				-
Series B Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- issued and outstanding as of June 30, 2025 and September 30, 2024			-				-
Common stock, par value $0.001 per share; 200,000,000 shares authorized as of June 30, 2025, and September 30, 2024; 901,500 and 13,755 shares issued and outstanding as of June 30, 2025, and September 30, 2024, respectively			902				14
Additional paid in capital			381,150,267				318,815,358
Accumulated deficit			(373,888,601	)			(309,672,755	)
Applied DNA Sciences, Inc. stockholders' equity			7,262,568				9,142,617
Noncontrolling interest			(274,524	)			(174,532	)
Total equity			6,988,044				8,968,085
Total liabilities and equity		$	9,934,746			$	12,789,040

APPLIED DNA SCIENCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

		Three months Ended June 30,								Nine months Ended June 30,
		2025				2024				2025				2024
Revenues
Product revenues		$	195,262			$	246,644			$	1,239,747			$	947,086
Service revenues			109,131				226,145				697,759				678,777
Total revenues			304,393				472,789				1,937,506				1,625,863
Cost of product revenues			299,263				230,188				930,619				853,034
Gross profit			5,130				242,601				1,006,887				772,829
Operating expenses:
Selling, general and administrative			2,930,627				2,635,863				8,423,602				8,440,919
Research and development			768,563				913,031				2,632,931				2,762,040
Total operating expenses			3,699,190				3,548,894				11,056,533				11,202,959
LOSS FROM OPERATIONS			(3,694,060	)			(3,306,293	)			(10,049,646	)			(10,430,130	)
Interest income			40,267				29,688				168,762				33,989
Transaction costs allocated to warrant liabilities			-				-				-				(633,198	)
Unrealized gain on change in fair value of warrants classified as a liability			6,410				5,160,000				318,840				9,564,000
Unrealized loss on change in fair value of warrants classified as a liability - warrant modification			-				-				-				(394,000	)
Loss on issuance of warrants			-				-				-				(1,633,767	)
Other expense, net			(531	)			(103	)			(23,778	)			(9,060	)
(Loss) income before provision for income taxes			(3,647,914	)			1,883,292				(9,585,822	)			(3,502,166	)
Provision for income taxes			-				-				-				-
Net (loss) income from continuing operations		$	(3,647,914	)		$	1,883,292			$	(9,585,822	)		$	(3,502,166	)
Net loss from discontinued operations, net of tax			(336,195	)			(33,791	)			(403,120	)			(272,397	)
NET (LOSS) INCOME		$	(3,984,109	)		$	1,849,501			$	(9,988,942	)		$	(3,774,563	)
Less: Net loss attributable to noncontrolling interest			38,746				30,295				99,992				78,785
NET (LOSS) INCOME attributable to Applied DNA Sciences, Inc.		$	(3,945,363	)		$	1,879,796			$	(9,888,950	)		$	(3,695,778	)
Deemed dividend related to warrant modifications			(15,500,244	)			-				(54,326,896	)			(233,087	)
NET (LOSS) INCOME attributable to common stockholders		$	(19,445,607	)		$	1,879,796			$	(64,215,846	)		$	(3,928,865	)
Net (loss) income per share attributable to common stockholders-basic and diluted from continuing operations		$	(33.41	)		$	1,191.52			$	(255.14	)		$	(4,862.32	)
Net loss per share attributable to common stockholders-basic and diluted from discontinued operations			(0.59	)			(21.04	)			(1.61	)			(362.23	)
Net (loss) income per share attributable to common stockholders-basic and diluted		$	(34.00	)		$	1,170.48			$	(256.75	)		$	(5,224.55	)
Weighted average shares outstanding- basic and diluted			572,018				1,606				250,107				752

APPLIED DNA SCIENCES, INC.
CALCULATION AND RECONCILIATION OF ADJUSTED EBITDA
(unaudited)

		Three-Month Period Ended June 30,
		2025				2024
Net loss		$	(3,984,109	)		$	1,849,501
Interest income			(40,267	)			(29,688	)
Depreciation and amortization			78,346				134,163
Stock-based compensation expense			24,889				30,336
Unrealized (loss) on change in fair value of warrants classified as a liability			(6,410	)			(5,160,000	)
Total non-cash items			56,558				(5,025,189	)
Consolidated Adjusted EBITDA (loss)		$	(3,927,551	)		$	(3,175,688	)

SOURCE: Applied DNA Sciences, Inc.

View the original press release on ACCESS Newswire

FAQ

What were Applied DNA's (APDN) key financial results for Q3 2025?

Applied DNA reported revenue of $304,000, an operating loss of $3.7 million, and ended the quarter with $4.7 million in cash. Monthly net cash burn improved to $934,000 from $1.15 million in Q2 2025.

What major strategic changes did Applied DNA implement in Q3 2025?

Applied DNA transitioned to a pure-play provider of synthetic DNA and mRNA manufacturing solutions through LineaRx, discontinued its MDx Testing Services business, and began winding down its DNA Tagging and Security Products segment.

What are Applied DNA's three main technology solutions?

Applied DNA offers three key technologies: LineaDNA™ (cell-free DNA production platform), LineaRNAP™ (next-generation T7 RNA polymerase), and LineaIVT™ (integrated system combining both technologies).

What significant orders did Applied DNA receive in Q3 2025?

Applied DNA received a multi-gram follow-on order for LineaDNA valued over $600,000 from a global IVD manufacturer for cancer diagnostics, and added a U.S.-based mRNA contract development manufacturing organization as a customer.

How many reverse stock splits did APDN implement in Q3 2025?

Applied DNA implemented two reverse stock splits: a 1:50 split effective March 14, 2025, and a 1:15 split effective June 2, 2025.