Applied DNA Sciences Reports Decline in Q2 Fiscal Year 2024 Financial Results

Applied DNA Sciences, Inc., recognized for its PCR-based DNA technologies, disclosed its financial outcomes for the second fiscal quarter ending March 31, 2024. The firm reported a significant reduction in revenue and an increased operational loss compared to the previous year.

Total revenues reached approximately $930 thousand, a sharp decrease from $4.4 million in the second quarter of fiscal 2023. This decline primarily stems from the drop in COVID-19 testing services by $3.6 million, resulting from the end of a contract with the City University of New York in June 2023. However, the company saw a modest increase in product revenue, up $96 thousand.

Gross profit for the quarter was $296 thousand, down from $1.8 million in the same period the previous year. The decrease in gross profit percentage from 41% to 32% was mainly due to reduced margins in the Molecular Diagnostics testing services segment.

Operating expenses saw a decline, totalling $3.9 million in comparison to $4.5 million last year, largely due to reduced payroll and stock-based compensation expenses. Despite the cost-cutting measures, loss from operations widened to $3.6 million, up from $2.7 million.

The company’s cash reserves also experienced a decrease, standing at $3.1 million by the end of March 2024, down from $7.2 million at the end of September 2023. Moreover, Applied DNA faced operational challenges leading to a negative Adjusted EBITDA of $3.3 million, compared to the previous year's $2.1 million.

Additionally, Applied DNA undertook a one-for-twenty reverse stock split effective April 25, 2024, and successfully regained compliance with Nasdaq's minimum bid price requirement.