Stony Brook-based Applied DNA Sciences Inc., a maker of genetic anti-counterfeiting devices, has reported a $10.5-million annual loss.
The company's annual report, filed with the Securities and Exchange Commission, said its independent auditors "have expressed substantial doubt about our ability to continue as a going concern, which may hinder our ability to obtain future financing."
With 18 employees, the company, however, said it has $2.7 million in cash on hand and has enough resources to fund its operations through May 2012, when it may have to seek additional funding, Applied DNA said in its annual report.
The company had $988,848 in sales, offset with operations expenses of $9 million and interest expenses of $2.4 million. Company revenue last year was $519,844.
Applied DNA's $10.5-million loss, for the fiscal year ended Sept. 30, compared to a loss of $7.9 million last year.
The company chief executive, James Hayward, was optimistic despite the loss.
"While this is our best year yet, we are just beginning to see the fruits of our labor. The company is at a critical juncture in its development, its reputation and relationships expanding continuously," Hayward said in a prepared statement.
"We are grateful for the continued support of our customers, strategic partners, employees and investors this year. We have made significant progress toward our goals and we believe our vision and strategy will take us there."
Applied DNA, a penny stock that trades over the counter, in July made a private sale of $5 million of its own shares in an institutional round of financing. It has 376.8 million shares outstanding, up from 300.3 million shares at the close of the 2010 fiscal year.
Above, James A. Hayward, chief executive of Applied DNA Sciences Inc. in Stony Brook.