At the Stony Brook technology firm Applied DNA Sciences Inc., an increase in sales was more than outpaced by expenses resulting in a steep quarterly loss, the company reported Wednesday.
Applied DNA said it had a loss of $2.4 million on sales of $516,000 for the quarter ended Dec. 31, compared to a loss of $1.3 million on sales of $317,817 for the same quarter the previous year.
The company told the Securities and Exchange Commission that it has on hand enough funding, from a private placement last year, to last until May. But, it said, it has thus far not arranged for a source of continued funding after May; and its auditors on Dec. 18 "expressed substantial doubt about our ability to continue as a going concern."
Applied DNA, in its SEC report, said it amended its certificate of incorporation on Jan. 27 to increase the number of authorized shares of common stock from 800 million to 1.35 billion shares. The company's shares traded Wednesday for about 7 cents, midway in the past year's range of 4 cents to 10 cents a share.
Selling, general and administrative expenses increased to $2.1 million from $1.3 million for the three months period ended Dec. 31, the company said, adding that the increase of $823,219, or 61.9 percent, is primarily attributable to the cost of stock based compensation.
Applied DNA said it leases its office from "an entity controlled by a significant former shareholder renewable annually," and total lease rental expenses for the three month periods ended Dec. 31 increased to $45,767, up from $35,962 for the prior-year quarter.
The company disclosed that, on Jan. 7, it issued another 56.6 million shares in settlement of a debt of more than $2 million.
Applied DNA also told the SEC that since its inception in 2002 it has lost $164 million while generating "minimum sales revenue."