APPLIED DNA SCIENCES INC
For the period ended Jun 30, 2025. Filed Aug 14, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 14, 2025
BNBX$0.16-56.8%Stored close · as of Jul 13, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-15.
0001410578-25-001320
Item 2. - Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-14.
0001410578-25-001814
Item 2. - Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 130 previous paragraphs and 120 current paragraphs.
55 unchanged; 34 reworded; 27 added; 36 removed; 5 previous and 4 current paragraphs rearranged.
Tables are not compared: 55 previous and 55 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (27)
Current report
Applied DNA Sciences is a biotechnology company focused on providing nucleic-acid production solutions for the biopharmaceutical and diagnostics industries. Our technologies enable the rapid and efficient cell-free manufacturing of high-quality DNA and RNA, which are essential components for a new generation of advanced biotherapeutics such as gene therapies, personalized medicine, adoptive cell therapies, and mRNA and DNA-based vaccines, as well as in vitro diagnostic (“IVD”) applications.
Current report
The Company has developed three distinct and complementary technology solutions:
Current report
We believe our technology solutions address significant unmet needs, allowing us and our customers to produce DNA and RNA biotherapeutics and diagnostic solutions with unmatched quality and speed. Our business strategy is to focus our resources on further development, commercialization, and customer adoption of our three commercial technology solutions within product and therapeutic modalities where our unique business solutions have distinct advantages over legacy technologies.
Current report
Specifically, for the biotherapeutic markets we seek to: (i) capitalize on the rapid growth of DNA needed for advanced biotherapeutics generally via LineaDNA to supply synthetic DNA to customers for use in biotherapeutic discovery and manufacturing; and (ii) leverage LineaDNA, LineaRNAP and LineaIVT to specifically capitalize on the near term growing demand for materials used in mRNA-based drug discovery and manufacturing. For the IVD market, we seek to gain additional market adoption for LineaDNA as a component used in the discovery and manufacturing of various diagnostic technologies with a focus on applications requiring chemically modified DNA.
Current report
LineaDNA
Current report
LineaRNAP
Current report
mRNA therapeutics are produced via a process called in vitro transcription (“IVT”) that requires a DNA template and RNAP as starting materials. Typically, the RNAP is derived from the T7 bacteriophage (“WT-T7”). LineaRNAP is a patented next generation WT-T7-based RNAP engineered with a proprietary DNA-binding domain resulting we believe in high mRNA yields, increased mRNA integrity and reduced double-stranded RNA (dsDNA) contamination as compared to conventional WT-T7. LineaRNAP is engineered for use either as a direct replacement for WT-T7 in conventional IVT workflows or with chemically modified LineaDNA templates and a proprietary reaction buffer, the latter marketed as our LineaIVT platform.
Current report
Company data shows that when used in conventional IVT systems (either using synthetic DNA or plasmid DNA templates), LineaRNAP results in higher mRNA yields, lower dsRNA contamination and higher mRNA integrity when compared to WT-T7. The Company seeks to commercialize LineaRNAP as a standalone product sold to third parties for use in mRNA production workflows that use either synthetic or plasmid DNA templates.
Current report
LineaIVT
Current report
LineaIVT is an innovative integrated system for mRNA manufacturing input materials that combines: (i) the Company’s chemically modified LineaDNA IVT templates; (ii) LineaRNAP; and (iii) a proprietary IVT reaction buffer to simplify mRNA workflows and reduce dsRNA.
Current report
The LineaIVT platform leverages our patented LineaRNAP’s DNA binding domain to chemically bind to chemically modified LineaDNA IVT templates, enabling the use of a proprietary IVT reaction buffer. Internal data shows that the LineaIVT system can reduce dsRNA contamination between 10x and 50x as compared to conventional system for the manufacture of mRNA while achieving equivalent or greater target mRNA yields.
Current report
As of February 2026, the FDA has announced harmonization of GMP requirements with ISO 13485 quality standards. We are currently pursuing ISO 13485 certification, which is expected to be completed in FY2026 Q1.
Current report
Our current GMP manufacturing site can produce up to 10 grams of LineaDNA DNA annually, running at single shift capacity. In addition, the Company has additional annual manufacturing capacity for RUO LineaDNA of more than 15 grams per year. We believe our current manufacturing capabilities are sufficient to support near-term customer demand.
Current report
In addition, we believe our GMP manufacturing site can support LineaDNA manufactured under GMP suitable for use as, or incorporation into, a biologic, drug substance and/or drug product, which we currently expect to be available during the second half of calendar year 2026. Drug substances are the pharmaceutically active components of drug products.
Current report
The Company also plans to offer several quality grades of LineaRNAP, each of which will have different permitted uses. Currently, all manufacturing of LineaRNAP is performed by a CDMO (Alphazyme, LLC):
Current report
The Company plans to work with its current enzyme manufacturer CDMO (Alphazyme, LLC) or other third-party manufacturers to continue to reduce manufacturing unit costs. In addition, and based on customer demand, the Company plans to explore full GMP manufacturing of LineaRNAP with its current or other third-party CDMOs during FY2026, with planned availability in 2H CY2026.
Current report
We believe our technology solutions are differentiated in the market and offer compelling commercial advantages over legacy technologies. We seek to leverage our technology solutions to gain market share for our nucleic acid (both DNA and mRNA) production solutions.
Current report
Our business strategy relating to the biotherapeutics market is twofold: (i) to capitalize on the rapid growth of biotherapeutics requiring DNA generally via our LineaDNA platform to supply synthetic DNA to customers for use in biotherapeutic discovery and manufacturing; and (ii) to leverage LineaDNA, LineaRNAP and LineaIVT to specifically capitalize on the near term growing demand for input materials used in mRNA-based drug discovery and manufacturing.
Current report
In addition, we seek to capitalize on the growing demand within the IVD sector for chemically modified and/or linear synthetic DNA as a component used in the development manufacture of diagnostic technologies. We believe demand for this market is evidenced by the Company’s existing multi-year, multi-order contract with a global IVD manufacturer.
Current report
Currently we offer fee-for-service manufacturing under our technology solutions. In the future, we may consider exploring technology out-licensing models for some or all of our technology solutions. In addition, we seek to strike collaborations both upstream and downstream of our technology solutions within the biotherapeutic manufacturing marketplace. Examples of downstream collaborations may include, without limitation, de novo synthesis of long DNA sequences or shorter DNA oligonucleotides. Examples of upstream collaborations may include CDMOs manufacturing biotherapeutic products and/or drug substances, including without limitation mRNA.
Current report
Selling, general and administrative expenses for the three-month period ended June 30, 2025 increased by $294,764 or 11% to $2,930,627 as compared to $2,635,863 for the three-month period ended June 30, 2024. The increase is primarily attributable to an increase in salaries and wages for the accrual of $450,000 related to the separation agreement with the former CEO. This increase was offset by decreases in professional fees of approximately $47,000, primarily for a reduction in accounting fees, as well as a decrease in investor relation and D&O insurance expenses of approximately $42,000 and 23,000, respectively. Consulting expense also declined by approximately $30,000.
Current report
Other expense, net
Current report
Other expense, net for the three-month periods ended June 30, 2025 and 2024, was $531 and $103, respectively.
Current report
Selling, general and administrative expenses remained consistent at $8,423,602 and $8,440,919 for the nine-month periods ended June, 2025 and 2024, respectively.
Current report
Other expense, net
Current report
Other expense, net for the nine-month periods ended June 30, 2025 and 2024, was $23,778 and $9,060, respectively.
Current report
As detailed in Note A in our condensed consolidated financial statements, as a result of the strategic restructurings that occurred during January and June 2025, the Company completed a workforce reduction that reduced headcount by a total of 39% for a projected 31% total reduction in payroll expenses as compared to the fiscal year ended September 30, 2024. The projected annual payroll savings is expected to be partially offset by approximately three hundred thousand dollars ($300,000) in one-time charges related to the June 30, 2025 workforce reduction.
Removed paragraphs (36)
Previous report
We are a biotechnology company developing and commercializing technologies to produce and detect DNA and RNA. Using PCR to enable the production and detection of DNA and RNA, we currently operate in two primary business markets: (i) the enzymatic manufacture of synthetic DNA for use in the production of nucleic acid-based therapeutics (including biologics and drugs), as well as the development and sale of a proprietary RNAP for use in the production of mRNA therapeutics ; and (ii) the detection of DNA and RNA in molecular diagnostics and genetic testing services. Previously, we operated in a third business market: the manufacture and detection of DNA for industrial supply chains and security services, which, as detailed below, on February 13, 2025, we announced we were exiting.
Previous report
Our current growth strategy is to primarily focus our resources on the further development, commercialization, and customer adoption of our Therapeutic DNA Production Services, including the expansion of our contract development and manufacturing operation (“CDMO”) for the sale of synthetic DNA and associated enzymes for use in the production of nucleic acid-based therapies.
Previous report
We will continue to update our business strategy and monitor the use of our resources regarding our various business segments. Our management engaged in a strategic review of our DNA Tagging and Security Products and Services business segment. As a result of this strategic review, on February 13, 2025, we announced we were exiting our DNA Tagging and Security Products and Services business. As a result of exiting this segment, during January 2025, we completed a workforce reduction of approximately 20% of our total headcount and approximately 13% in annual payroll costs. As a result of these actions, during the three-month period ended March 31, 2025 and through April 2025, we incurred one-time personnel-related charges of approximately $305,000. We continue to strategically exit contracts related to our DNA Tagging and Security Products and Services segment pursuant to applicable terms and conditions and currently plan to continue to service certain of our existing DNA Tagging and Security Products and Services customer contracts. The Company’s management has also been and currently remains engaged in a strategic review of its MDx Testing Services business segment.
Previous report
We expect that based on available opportunities and our beliefs regarding future opportunities, we will continue to modify and refine our business strategy.
Previous report
Therapeutic DNA Production Services
Previous report
Through LRx we are developing and commercializing our LineaDNA and Linea IVT platforms for the sale of synthetic DNA and associated enzymes for use in the production of nucleic acid-based therapeutics.
Previous report
LineaDNA Platform
Previous report
Linea IVT Platform
Previous report
Through our acquisition of Spindle, we launched our Linea IVT platform in July 2023, which combines Spindle’s proprietary high-performance RNAP, now marketed by the Company as Linea RNAP, with our enzymatically produced LineaDNA IVT templates. We believe the Linea IVT platform enables our customers to make better mRNA, faster. Based on data generated by the Company, we believe the integrated Linea IVT platform offers the following advantages over conventional mRNA production to therapy developers and manufacturers:
Previous report
Our business strategy for our Therapeutic DNA Production Services is to capitalize upon the rapid growth of mRNA therapies in the near term via our ability to manufacture LineaDNA IVT templates under GMP at our GMP Site 1, while at the same time laying the basis for additional clinical and commercial applications of LineaDNA with our future planned availability of LineaDNA manufactured under GMP suitable for use as, or incorporation into, a biologic, drug substance and/or drug product at planned GMP Site 2. Planned GMP Site 2 may also be used for additional LineaDNA IVT template manufacturing if customer demand exceeds capacity of GMP Site 1. In addition, we believe GMP Site 1 is capable of manufacturing LineaDNA for use as, or incorporation into, a biologic, drug substance, and/or drug product manufacturing via facility upgrades to its existing footprint.
Previous report
Our current plan is: (i) through our Linea IVT platform and GMP manufacturing capabilities for IVT templates at GMP Site 1 to secure commercial-scale supply contracts with clinical and commercial mRNA and/or self-amplifying mRNA (“sa-RNA”) manufacturers for LineaDNA IVT templates and/or Linea RNAP as critical starting materials; (ii) to utilize our current GLP production capacity for non-IVT template applications to secure supply and/or development contracts with pre-clinical therapy developers that use DNA in their therapy manufacturing, and (iii) upon our development of our planned future LineaDNA production under GMP suitable for use as, or incorporation into, a biologic, drug substance and/or drug product at planned GMP Site 2 and/or our upgrade to GMP Site 1, to convert existing and new LineaDNA customers into large-scale supply contracts to supply LineaDNA for clinical and commercial use as, or incorporation into, a biologic, drug substance and/or drug product in a wide range of nucleic acid therapies. In addition, the Company plans to utilize its current and planned DNA manufacturing capabilities in GMP Site 1 and/or GMP Site 2 to convert new and existing LineaDNA IVT template customers to LineaDNA IVT platform customers to increase the Company’s mRNA-related TAM.
Previous report
If we were to expand our facilities to enable GMP production of LineaDNA for use as, or incorporation, into a biologic, drug substance and/or drug product as planned for GMP Site 2, the additional CAPEX may be up to approximately $10 million which would require additional funding. We anticipate upgrades to GMP Site 1 to enable the manufacture of LineaDNA for use as, or incorporation into, a biologic, drug substance and/or drug product manufacture to cost less than $1 million. Potential upgrades to GMP Site 1 would not alter its current footprint within our existing laboratory space. We anticipate that a GMP Site 2 would require us to acquire additional space.
Previous report
MDx Testing Services
Previous report
Through ADCL, we leverage our expertise in DNA and RNA detection via PCR to provide and develop clinical molecular diagnostics and genetic testing services. ADCL is a NYSDOH clinical laboratory improvement amendments (“CLIA”)-certified laboratory which is currently permitted for virology and genetics (molecular). In providing MDx Testing Services, ADCL employs its own or third-party molecular diagnostic tests.
Previous report
ADCL currently has the ability to offer testing services for pharmacogenomics, COVID-19 and mpox. On March 26, 2025, ADCL submitted a validation package to NYSDOH to expand its testing services to the detection and subtyping of influenza A (H5) virus, also known as H5 bird flu.
Previous report
We have successfully internally validated our pharmacogenomics testing services (the “PGx Testing Services”). Our PGx Testing Services utilizes a 120-target PGx panel test to evaluate the unique genotype of a specific patient to help guide the patient’s healthcare provider in making individual drug therapy decisions. Our PGx Testing Services are designed to interrogate DNA targets on over 33 genes and provide genotyping information relevant to certain cardiac, mental health, oncology, and pain management drug therapies.
Previous report
On June 12, 2024 we received full approval from NYSDOH for our PGx Testing Services. Recently published studies showed that population-scale PGx enabled medication management can significantly reduce overall population healthcare costs, reduce adverse drug events, and increase overall population wellbeing. These benefits can result in significant cost savings to large entities and self-insured employers, the latter accounting for approximately 65% of all U.S. employers in 2022.We plan to leverage our PGx Testing Services to provide PGx testing services to large entities, self-insured employers and other types of healthcare providers. Currently, ADCL is undertaking a strategic review of its commercialization of PGx Testing Services, including, but not limited to creating subpanels for targeted indications.
Previous report
On September 11, 2024, we announced that ADCL launched an expansion of its clinical testing services for the detection of Mpox (formerly monkeypox) to include testing for both Mpox Clade I and Clade II. The launch of the expanded Mpox testing service comes after ADCL’s interaction with relevant regulatory bodies, including the NYSDOH and the FDA. The Company believes that ADCL will be able to support New York and other states’ response to the threat of Mpox. ADCL’s Linea Mpox Virus 1.0 Assay was previously approved as a laboratory-developed test for the detection of Mpox Clade II by NYSDOH in September 2022. In August 2024, ADCL conducted additional validation testing showing the Assay can also detect the genetic sequence of Mpox Clade I, which is the subject of the World Health Organization’s (WHO) August 14, 2024 declaration of a public health emergency of international concern. ADCL will provide the testing service from its CLEP/CLIA molecular diagnostics laboratory in Stony Brook, N.Y. Currently, Mpox instances in the United States are very low and the future path of Mpox is currently unknown. Accordingly, there can be no assurance that we will be able to generate revenue and profits from our approved Mpox testing.
Previous report
On March 26, 2025 we announced that ADCL had submitted a validation package to the NYSDOH to request approval as a laboratory-developed test (LDT) for a PCR-based assay for the detection and subtyping of influenza A (H5) virus, also known as H5 bird flu, highly pathogenic avian influenza, or H5N1 (collectively “H5 bird flu”). ADCL’s Linea™ Avian Influenza H5 Dx assay (“AIH5 Dx”) is a highly sensitive, multi-target diagnostic assay capable of detecting and discriminating between pan-influenza A and H5 bird flu. The timeline for NYSDOH’s review of the Company’s validation package is unknown, as is whether such approval will be granted. No testing for H5 bird flu can be performed by ADCL until full approval is received from NYSDOH. Further, there can be no assurance that we will be able to generate revenue and profits if and when NYSDOH approval of our test for H5 bird flu is granted.
Previous report
Historically, the majority of our revenue attributable to our MDx Testing Services has been derived from our safeCircle® COVID-19 testing solutions, for which testing demand has significantly declined commencing in our fiscal third quarter of 2023, resulting in substantially reduced revenues. We expect future demand for COVID-19 testing to continue to be reduced and we may terminate COVID-19 testing services in the future.
Previous report
Clinical Laboratory Service Revenues
Previous report
For the three-month periods ended March 31, 2025 and 2024, we generated $220,552 and $331,020 in revenues from our clinical laboratory testing services, respectively. The decrease in service revenues of $110,468 or 33% for the three-month period ended March 31, 2025 as compared to the same period in the prior fiscal year is attributable to a decrease from COVID surveillance testing, as two customer contracts stopped testing during the three-month period ended March 31, 2025.
Previous report
Selling, general and administrative expenses for the three-month period ended March 31, 2025 decreased by $16,924 or 1% to $2,983,284 as compared to $3,000,208 for the three-month period ended March 31, 2024. The decrease is attributable to a decrease in deferred offering costs incurred for the ATM transaction that were written off during the prior fiscal year period when the ATM facility was terminated of $217,000, as well as a decrease in stock-based compensation expense of approximately $144,000. These decreases were offset by increases in expenses related to the March 2025 Reverse Split and the special stockholders’ meetings and adjournments of approximately $113,000, and an increase of approximately $140,000 in franchise taxes.
Previous report
Other (expense) income, net
Previous report
Other (expense) income, net for the three-month periods ended March 31, 2025 and 2024, was expense of $3,095 and income of $4,581, respectively.
Previous report
Clinical laboratory service revenues
Previous report
For the six-month periods ended March 31, 2025 and 2024, we generated $546,878 and $667,720 in revenues from our clinical laboratory testing services, respectively. The decrease in clinical laboratory service revenues of $120,842 or 18% for the six-month period ended March 31, 2025 as compared to the same period in the prior fiscal year is attributable to a decrease from COVID testing services, as two customer contracts stopped testing during February, 2025.
Previous report
Selling, general and administrative expenses for the six-month period ended March 31, 2025 decreased by $468,175 or 8% to $5,616,382 as compared to $6,084,557 for the six-month period ended March 31, 2024. The decrease is attributable to a decrease in stock-based compensation expense of approximately $455,000, which primarily relates to the timing of the annual non-employee board of director grant that vests one-year from the date of grant, which was granted during the second quarter of fiscal 2023. Additional decreases related to a decrease in consulting expense of approximately $158,000. The decrease in consulting expense was from the closure of our APDN Europe subsidiary within our DNA Tagging and Security Products and Services segment, as well as a decrease in consulting expense from our MDx Testing Services segment. These decreases were offset by an increase in expenses of approximately $168,000 related to the March 2025 Reverse Split and the special stockholders’ meeting and adjournments.
Previous report
Research and development expenses remained fairly consistent at $1,864,368 for the six-month period ended March 31, 2025 compared to $1,849,009 for the six-month period ended March 31, 2024, an increase of $15,359 or 1%.
Previous report
Loss on issuance of warrants
Previous report
Other (expense) income , net
Previous report
Other (expense) income, net for the six-month periods ended March 31, 2025 and 2024, was income of $23,247 and $8,957, respectively.
Previous report
Clinical Laboratory Testing Services
Previous report
The Company records revenue for its clinical laboratory testing service contracts, which includes its COVID-19 testing services, upon satisfying its promise to provide services to customers under the terms of its contracts. These performance obligations are satisfied at the point in time that Company services are complete, which is when the testing results are released to the customer. For those customers with a fixed monthly fee, the revenue is recognized over-time as the services are provided.
Previous report
The Company records revenue for its research and development contracts using the over-time revenue recognition model. Revenue is primarily measured using the cost-to-cost method, which the Company believes best depicts the transfer of control to the customer. Under the cost-to-cost method, the extent of progress towards completion is measured based on the ratio of actual costs incurred to the total estimated costs expected upon satisfying the identified performance obligation.
Previous report
Revenues are recorded proportionally as costs are incurred. For contracts where the total costs cannot be estimated, revenues are recognized for the actual costs incurred during a period until the remaining costs to complete a contract can be estimated. The Company has elected not to disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less.
Reworded paragraphs (34)
Previous wording
Our trademarks currently used in the United States include Applied DNA Sciences®, SigNature® T molecular tags, fiberTyping®, SigNify®, Beacon®, CertainT®, LineaDNA®, Linea™ COVID-19 Diagnostic Assay Kit, safeCircle TM COVID-19 testing and TR8® pharmacogenetic testing. We do not intend our use or display of other companies’ trade names or trademarks to imply a relationship with, or endorsement or sponsorship of us by, any other companies. All trademarks, service marks and trade names included in this Quarterly Report on Form 10-Q are the property of the respective owners.
Current wording
Our trademarks currently used in the United States include Applied DNA Sciences®, LineaDNATM, LineaRNAPTM, LineaIVTTM and LineaRx TM. We do not intend our use or display of other companies’ trade names or trademarks to imply a relationship with, or endorsement or sponsorship of us by, any other companies. All trademarks, service marks and trade names included in this Quarterly Report on Form 10-Q are the property of the respective owners.
Previous wording
Our LineaDNA platform is our core enabling technology, and enables the rapid, efficient, and large-scale cell-free manufacture of high-fidelity DNA sequences for use in the manufacturing of a broad range of nucleic acid-based therapeutics. The LineaDNA platform enzymatically produces a linear form of DNA we call “LineaDNA” that is an alternative to plasmid-based DNA manufacturing technologies that have supplied the DNA used in biotherapeutics for the past 40 years.
Current wording
LineaDNA is our core enabling technology for rapid, efficient, and scalable cell-free manufacture of high-fidelity synthetic DNA sequences used in the manufacturing of a broad range of biotherapeutics. The LineaDNA platform enzymatically produces a linear form of synthetic DNA we call “LineaDNA” that is an alternative to plasmid-based DNA manufacturing technologies that have supplied the DNA used in biotherapeutics for the past 40 years. LineaDNA can be quickly produced in batches ranging from milligram to grams under a variety of controlled manufacturing processes including research use only (RUO), good laboratory practices (GLP) and good manufacturing practices (GMP).
Previous wording
As of the first quarter of calendar year 2025, there were 4,418 gene, cell and RNA therapies in development from preclinical through pre-registration stages, almost all of which use DNA in their manufacturing process. (Source: ASGCT Gene, Cell & RNA Therapy Landscape: Q1 2025 Quarterly Report). Due to what we believe are the LineaDNA platform’s numerous advantages over legacy nucleic acid-based therapeutic manufacturing platforms, we believe this large number of therapies under development represents a substantial market opportunity for the LineaDNA platform to supplant legacy manufacturing methods in the manufacture of nucleic acid-based therapies although no assurance can be given that we will be successful in exploiting this market opportunity.
Current wording
As of the first quarter of calendar year 2025, there were 4,418 gene, cell and RNA therapies in development from preclinical through pre-registration stages, almost all of which use DNA in their manufacturing process. (Source: ASGCT Gene, Cell & RNA Therapy Landscape: Q1 2025 Quarterly Report). Due to what we believe are the LineaDNA’s numerous advantages over legacy nucleic DNA manufacturing platforms, we believe this large number of therapies under development represents a substantial market opportunity for LineaDNA to supplant legacy DNA manufacturing as the source of DNA used during manufacturing.
Previous wording
We believe our LineaDNA platform holds several important advantages over existing cell-based plasmid DNA manufacturing platforms. Plasmid-based DNA manufacturing is based on the complex, costly and time-consuming biological process of amplifying DNA in living bacterial cells. Once amplified, the DNA must be separated from the living cells and other process contaminants via multiple rounds of purification, adding further complexity and costs. Unlike plasmid-based DNA manufacturing, the LineaDNA platform does not require living cells and instead amplifies DNA via the enzymatic process of PCR. The LineaDNA platform is simple and can rapidly produce very large quantities of DNA without the need for complex purification steps.
Current wording
We believe LineaDNA holds several important advantages over existing cell-based plasmid DNA manufacturing platforms. Plasmid-based DNA manufacturing is based on the complex, costly and time-consuming biological process of amplifying DNA in living bacterial cells. Once amplified, the DNA must be separated from the living cells and other process contaminants via multiple rounds of purification, adding further complexity and costs. Unlike plasmid-based DNA manufacturing, LineaDNA does not require living cells and instead amplifies DNA via the exponential enzymatic process of PCR. The LineaDNA platform is simple, scalable and can rapidly produce large quantities of DNA with minimal purification steps.
Previous wording
Preclinical studies conducted by the Company have shown that LineaDNA is substitutable for plasmid DNA in numerous nucleic acid-based therapies, including:
Current wording
Preclinical studies conducted by the Company have shown that LineaDNA is substitutable for plasmid DNA in numerous biotherapeutic applications, including:
Previous wording
The number of mRNA therapies under development is growing at a rapid rate, thanks in part to the success of the mRNA COVID-19 vaccines. mRNA therapeutics are produced via a process called in vitro transcription (“IVT”) that requires DNA as a starting material. As of the first quarter of calendar 2025, there were over 450 mRNA therapies under development, with the majority of these therapies (65%) in the preclinical stage (Source: ASGCT Gene, Cell & RNA Therapy Landscape: Q1 2025 Quarterly Report). The Company believes that the mRNA market is in a nascent stage that represents a large growth opportunity for the Company via the production and supply of DNA critical starting materials and RNAP to produce mRNA therapies. In August 2022, the Company launched DNA IVT templates manufactured via its LineaDNA platform that have resulted in evaluations of the Company’s IVT templates by numerous therapeutic developers and CDMOs in the United States and the Asia-Pacific. The Company is currently producing research use only IVT templates for CDMOs located in the United States and Japan. However, there can be no assurance that the Company will enter into related long-term contracts. In response to this perceived demand, the continued growth of the mRNA therapeutic market, and the unique abilities of the LineaDNA platform, the Company acquired Spindle Biotech, Inc. (“Spindle”) in July 2023 to potentially increase its mRNA-related total addressable market (“TAM”) to include the manufacture and sale of RNAP for use in conjunction with our LineaDNA IVT templates.
Current wording
The number of mRNA therapies under development is growing at a rapid rate, triggered in part by the success of the mRNA COVID-19 vaccines and the recent clinical success of personalized cancer therapeutics. As of the third quarter of calendar 2024, there were over 450 mRNA therapies under development, with the majority of these therapies (65%) in the preclinical stage (Source: ASGCT Gene, Cell & RNA Therapy Landscape: Q1 2025 Quarterly Report). The Company believes that the mRNA market is in a nascent stage that represents a large growth opportunity for the Company via the production and supply of our next-generation LineaRNAP to produce mRNA therapies from DNA templates.
Previous wording
According to the Company’s internal modeling, the ability to sell both Linea DNA IVT templates and Linea RNAP under the Linea IVT platform potentially increases the Company’s mRNA-related TAM by approximately 3x as compared to selling LineaDNA IVT templates alone, while also providing a more competitive offering to the mRNA manufacturing market. Currently, Linea RNAP is produced for the Company under an ISO 13485 quality system by Alphazyme, LLC (“Alphazyme”) a third-party CDMO located in the United States, which the Company believes is sufficient for early-stage clinical use of the enzyme. In conjunction with Alphazyme, the Company completed in calendar year 2024 manufacturing process and scale-up development work on its Linea RNAP to increase production scale of the enzyme and reduce costs.
Current wording
LineaRNAP is produced for the Company under an ISO 13485 quality system by Alphazyme, LLC (“Alphazyme”), a third-party Contract Development and Manufacturing Organization (“CDMO”) located in the United States, which the Company believes is sufficient for early-stage clinical use of the enzyme. In conjunction with Alphazyme, the Company completed manufacturing process development work on its LineaRNAP to increase the production scale of the enzyme and reduce unit costs. The Company believes current manufacturing capacity for LineaRNAP provided by Alphazyme is sufficient to meet near term needs.
Previous wording
We believe the key advantages of the Linea DNA platform include:
Current wording
We believe the key advantages of the LineaIVT platform include:
Previous wording
The Company plans to offer several quality grades of Linea DNA, each of which will have different permitted uses.
Current wording
The Company offers or plans to offer several quality grades of LineaDNA, each of which will have different permitted uses.
Previous wording
We are currently manufacturing LineaDNA pursuant to Good Laboratory Practices (“GLP”) and have recently completed the buildout of a fit for purpose manufacturing facility within our current Stony Brook, NY laboratory space capable of producing LineaDNA IVT templates under Good Manufacturing Practices (“GMP”) suitable for use as a critical starting material for clinical and commercial mRNA therapeutics (“GMP Site 1”). GMP site 1 achieved operation status as of January 31, 2025. We also plan to offer additional capacity for LineaDNA IVT templates as well as capacity for LineaDNA materials manufactured under GMP suitable for use as, or incorporation into, a biologic, drug substance and/or drug product, with availability expected during the first half of calendar year 2026, dependent upon the availability of future funding and customer demand (“GMP Site 2”). GMP is a quality standard used globally and by the FDA to ensure pharmaceutical quality. Drug substances are the pharmaceutically active components of drug products.
Current wording
We currently manufacture LineaDNA pursuant to GLP and in January 2025 completed the buildout of a fit for purpose manufacturing facility within our current Stony Brook, NY facility capable of producing LineaDNA IVT templates under GMP suitable for use as a critical starting material for clinical and commercial mRNA therapeutics and vaccines.
Previous wording
For the three-month periods ended March 31, 2025 and 2024, we generated $548,638 and $393,125 in revenues from product sales, respectively. Product revenues increased by $155,513 or 40% for the three-month period ended March 31, 2025 as compared to the three-month period ended March 31, 2024. The increase in product revenues was primarily related to an increase of approximately $161,000 due to the timing of orders from our large-scale DNA manufacturing business within our Therapeutic DNA Production Services segment.
Current wording
For the three-month periods ended June 30, 2025 and 2024, we generated $195,262 and $246,644 in revenues from product sales, respectively. Product revenues decreased by $51,382 or 21% for the three-month period ended June 30, 2025 as compared to the three-month period ended June 30, 2024. The decrease in product revenues was primarily related to a decrease of approximately $58,000 due to the timing of orders from our large-scale DNA manufacturing business within our Therapeutic DNA Production Services segment.
Previous wording
For the three-month periods ended March 31, 2025 and 2024, we generated $214,184 and $205,486 in revenues from sales of services, respectively. The increase in service revenues of $8,698 or 4% for the three-month period ended March 31, 2025, as compared to the same period in the prior fiscal year is attributable to an increase of $26,000 within our DNA Tagging and Security Products and Services segment due to an increase in our textile isotopic testing services. This increase was offset by a decrease of approximately $17,000 within our Therapeutic DNA Production Services segment due to decreased research and development projects.
Current wording
For the three-month periods ended June 30, 2025 and 2024, we generated $109,131 and $226,145 in revenues from sales of services, respectively. The decrease in service revenues of $117,014 or 52% for the three-month period ended June 30, 2025, as compared to the same period in the prior fiscal year is attributable to a decrease within our DNA Tagging and Security Products and Services segment related to a decline in our textile isotopic testing services, due to the wind down of our tagging business.
Previous wording
Gross profit for the three-month period ended March 31, 2025, increased by $75,196 or 25% from $295,651 for the three-month period ended March 31, 2024 to $370,847. The gross profit percentage was 38% and 32% for the three-month periods ended March 31, 2025 and 2024, respectively. The improvement in gross profit percentage was primarily the result of product mix, as during the three-month period ended March 31, 2025, the majority of our product revenue was for the shipment of large-scale DNA production, which is at a higher gross margin compared to the product sales during the same period in the prior fiscal year. To a lesser extent, the improvement in gross profit percentage was due to higher product revenues during the three-month period ended March 31, 2025 as compared to the same period in the prior fiscal year. The higher volume of product revenues in the current period was able to better absorb the fixed costs that are included in cost of product revenues.
Current wording
Gross profit for the three-month period ended June 30, 2025, decreased by $237,471 or 98% from $242,601 for the three-month period ended June 30, 2024 to $5,130. The gross profit percentage was 2% and 51% for the three-month periods ended June 30, 2025 and 2024, respectively. The decline in gross profit percentage was primarily the result of lower product and service revenue during the current period, as compared to the same period in the prior fiscal year. The higher volume of both product and service revenues in the prior period was able to better absorb the fixed costs that are included in cost of product revenues.
Previous wording
Research and development expenses decreased to $849,358 for the three-month period ended March 31, 2025 from $913,194 for the three-month period ended March 31, 2024, a decrease of $63,836 or 7%. This decrease was attributable to decreased payroll charges of $51,000 as well as decreased consulting charges of $35,190 relating to a development project during the prior three-month period within the Therapeutic DNA Production Services segment, as well as a net decrease in service contracts of approximately $16,000. These decreases were offset by an increase in laboratory supplies of approximately $71,000 for the development of an enzyme within our Therapeutic DNA Production Services segment.
Current wording
Research and development expenses decreased to $768,563 for the three-month period ended June 30, 2025 from $913,031 for the three-month period ended June 30, 2024, a decrease of $144,468 or 16%. This decrease was attributable to decreased payroll charges of approximately $134,000, as well as a decrease in laboratory supplies of $135,000 for the development of an enzyme during the prior year period. These decreases were offset by an increase in consulting expense of $82,000 related to a development project during the three-month period ended June 30, 2025.
Previous wording
Interest income for the three-month period ended March 31, 2025 increased $44,988 or 293% to $60,340 as compared to $15,352 in the three-month period ended March 31, 2024 due to interest earned on our money market accounts.
Current wording
Interest income for the three-month period ended June 30, 2025 increased $10,549 or 36% to $40,237 as compared to $29,688 in the three-month period ended June 30, 2024 due to interest earned on our money market accounts.
Previous wording
Unrealized gain on change in fair value of warrants classified as a liability for the three-month periods ended March 31, 2025 and 2024 was $68,430 and $1,765,000, respectively, which relates to the change in fair value of the warrants that are classified as a liability. The primary driver of the change is the decrease in our stock price.
Current wording
Unrealized gain on change in fair value of warrants classified as a liability for the three-month periods ended June 30, 2025 and 2024 was $6,410 and $5,160,000, respectively, which relates to the change in fair value of the warrants that are classified as a liability. The primary driver of the change is the decrease in our stock price.
Previous wording
Loss from operations decreased 155,956, or 4% to $3,461,795 for the three-month period ended March 31, 2025 compared to $3,617,751 for the three-month period ended March 31, 2024 due to the factors noted above.
Current wording
Loss from operations increased $387,767, or 12% to $3,694,060 for the three-month period ended June 30, 2025 compared to $3,306,293 for the three-month period ended June 30, 2024 due to the factors noted above.
Previous wording
Comparison of Results of Operations for the Six-Month Periods Ended March 31, 2025 and 2024
Current wording
Comparison of Results of Operations for the Nine-Month Periods Ended June 30, 2025 and 2024
Previous wording
For the six-month periods ended March 31, 2025 and 2024, we generated $1,044,485 and $700,442 in revenues from product sales, respectively. Product revenue increased by $344,043 or 49% for the six-month period ended March 31, 2025 as compared to the same period in the prior fiscal year. The increase in product revenues was primarily within our Therapeutic DNA Production Services segment for an increase in shipments for our large-scale DNA manufacturing business of approximately $249,000, as well as a net increase of approximately $95,000 within our DNA Tagging and Security Products and Services segment primarily attributable to an increase of approximately $233,000 year over year in cotton DNA tagging revenue, offset by a decrease of approximately $87,000 in sales to a nutraceutical customer.
Current wording
For the nine-month periods ended June 30, 2025 and 2024, we generated $1,239,747 and $947,086 in revenues from product sales, respectively. Product revenue increased by $292,661 or 31% for the nine-month period ended June 30, 2025 as compared to the same period in the prior fiscal year. The increase in product revenues was primarily within our Therapeutic DNA Production Services segment for an increase in shipments for our large-scale DNA manufacturing business of approximately $191,000, as well as a net increase of approximately $100,000 within our DNA Tagging and Security Products and Services segment primarily attributable to an increase of approximately $230,000 year over year in cotton DNA tagging revenue, offset by a decrease of approximately $87,000 in sales to a nutraceutical customer.
Previous wording
For the six-month periods ended March 31, 2025 and 2024 we generated $588,628 and $452,633 in revenues from sales of services, respectively. The increase in service revenues of $135,995 or 30% for the six-month period ended March 31, 2025, as compared to the same period in the prior fiscal year is attributable to increases of approximately $193,000 for isotopic testing services for textiles within our DNA Tagging and Security Products and Services segment, offset primarily by a decrease of approximately $35,000 related to research and development projects within our Therapeutic DNA Production Services segment.
Current wording
For the nine-month periods ended June 30, 2025 and 2024 we generated $697,759 and $678,777 in revenues from sales of services, respectively. The increase in service revenues of $18,982 or 3% for the nine-month period ended June 30, 2025, as compared to the same period in the prior fiscal year is attributable to increases of approximately $83,000 for isotopic testing services for textiles within our DNA Tagging and Security Products and Services segment, offset primarily by a decrease of approximately $43,000 related to research and development projects within our Therapeutic DNA Production Services segment.
Previous wording
Gross profit for the six-month period ended March 31, 2025, increased by $528,206 or 100% from $526,748 for the six-month period ended March 31, 2024 to $1,054,954. The gross profit percentage was 48% and 29% for the six-month periods ended March 31, 2025 and 2024, respectively. The increase in gross profit percentage was primarily the result of higher product revenues during the six-month period ended March 31, 2025 as compared to the same period in the prior fiscal year. The higher volume of product revenues in the current period was able to better absorb the fixed costs that are included in cost of product revenues. To a lesser extent, the improved gross profit percentage was due to product mix, as during the six-months ended March 31, 2025, the majority of our product revenue was for the shipment of DNA for cotton tagging within our DNA Tagging and Security Products and Services segment, which is at a higher gross margin compared to the product sales during the same period in the prior fiscal year.
Current wording
Gross profit for the nine-month period ended June 30, 2025, increased by $234,058 or 30% from $772,829 for the nine-month period ended June 30, 2024 to $1,006,887. The gross profit percentage was 52% and 48% for the nine-month periods ended June 30, 2025 and 2024, respectively. The increase in gross profit percentage was primarily the result of higher product revenues during the nine-month period ended June 30, 2025 as compared to the same period in the prior fiscal year. The higher volume of product revenues in the current period was able to better absorb the fixed costs that are included in cost of product revenues. To a lesser extent, the improved gross profit percentage was due to product mix, as during the nine-months ended June 30, 2025, the majority of our product revenue was for the shipment of DNA for cotton tagging within our DNA Tagging and Security Products and Services segment, which is at a higher gross margin compared to the product sales during the same period in the prior fiscal year.
Previous wording
Interest income for the six-month period ended March 31, 2025 increased $83,104 or 171% to $131,780 as compared to $48,676 in the six-month period ended March 31, 2024 due to interest earned on our money market accounts, which had higher cash balances during the current period.
Current wording
Interest income for the nine-month period ended June 30, 2025 increased $134,773 or 397% to $168,762 as compared to $33,989 in the nine-month period ended June 30, 2024 due to interest earned on our money market accounts, which had higher cash balances during the current period, coupled with higher interest rates.
Previous wording
Transaction cost allocated to warrant liabilities for the six-month period ended March 31, 2024 was $633,198. These transaction costs represent the closing costs from the February 2024 financing transaction. These costs were expensed as it would have resulted in negative additional paid in capital.
Current wording
Transaction cost allocated to warrant liabilities for the nine-month period ended June 30, 2024 was $633,198. These transaction costs represent the closing costs from the February 2024 financing transaction. These costs were expensed as it would have resulted in negative additional paid in capital.
Previous wording
Unrealized gain on change in fair value of Common Warrants for the six -month period ended March 31, 2025 and 2024 was $312,430 and $4,404,000, respectively, and relates to the change in fair value of the warrants that are classified as a liability. The primary driver of the change is the decrease in our stock price.
Current wording
Unrealized gain on change in fair value of the warrants classified as a liability for the nine-month periods ended June 30, 2025 and 2024 was $318,840 and $9,564,000, respectively, and relates to the change in fair value of the warrants that are classified as a liability. The primary driver of the change is the decrease in our stock price.
Previous wording
Unrealized loss on change in fair value of warrants classified as a liability-warrant modification of $394,000 for the three-month period ended March 31, 2024 represents the change in fair value for the modifications made to certain warrants as a result of the February 2024 financing transaction.
Current wording
Unrealized loss on change in fair value of warrants classified as a liability-warrant modification of $394,000 for the nine-month period ended June 30, 2024 represents the change in fair value for the modifications made to certain warrants as a result of the February 2024 financing transaction.
Previous wording
The loss on issuance of warrants of $1,633,767 for the three-month period ended March 31, 2024 relates to the February 2024 financing transaction and is the result of the fair value of the warrants being greater than the cash received from the financing.
Current wording
The loss on issuance of warrants of $1,633,767 for the nine-month period ended June 30, 2024 relates to the February 2024 financing transaction and is the result of the fair value of the warrants being greater than the cash received from the financing.
Previous wording
Loss from operations decreased 981,022, or 13% to $6,425,796 for the six-month period ended March 31, 2025 compared to $7,406,818 for the six-month period ended March 31, 2024 due to the factors noted above.
Current wording
Loss from operations decreased $380,484, or 4% from $10,430,130 for the nine-month period ended June 30, 2024 compared to $10,049,646 for the nine-month period ended June 30, 2025 due to the factors noted above.
Previous wording
Our liquidity needs consist of our working capital requirements and research and development expenditure funding. As of March 31, 2025, we had working capital of $6,536,108. For the six-month period ended March 31, 2025, we used cash in operating activities of $6,511,109 consisting primarily of our loss of $6,004,833 net with non-cash adjustments of $177,255 in depreciation and amortization charges, $312,430 in unrealized gain on change in fair value of warrants classified as a liability, $5,212 in write-off of property and equipment, and $55,484 in stock-based compensation expense. Additionally, we had a net increase in operating assets of $85,999 and a net decrease in operating liabilities of $351,221. At March 31, 2025, we had cash and cash equivalents of $6,823,260.
Current wording
Our liquidity needs consist of our working capital requirements and research and development expenditure funding. As of June 30, 2025, we had working capital of $3,692,499, which excludes current assets and current liabilities of discontinued operations. For the nine-month period ended June 30, 2025, we used cash in operating activities of $9,141,688 consisting primarily of our loss of $9,585,822 net with non-cash adjustments of $255,601 in depreciation and amortization charges, $318,840 in unrealized gain on change in fair value
Previous wording
We have recurring net losses. We incurred a net loss of $6,004,833 and generated negative operating cash flow of $6,511,109 for the six-month period ended March 31, 2025. These factors raise substantial doubt about our ability to continue as a going concern for one year from the issuance of these financial statements. The ability of the Company to continue as a going concern is dependent on our ability to further implement our business plan, raise capital, and generate revenues. The financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern.
Current wording
We have recurring net losses. We incurred a net loss from continuing operations of $9,585,822 and generated negative operating cash flow of $9,141,688 for the nine-month period ended June 30, 2025. These factors raise substantial doubt about our ability to continue as a going concern for one year from the issuance of these financial statements. The ability of the Company to continue as a going concern is dependent on our ability to further implement our business plan, raise capital, and generate revenues. The financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern.
Previous wording
As discussed in Note E to our condensed consolidated financial statements, on October 31, 2024, we closed on a registered direct offering and received net proceeds, after deducting placement agent fees and other offering expenses payable by us, of approximately $5.7 million.
Current wording
As discussed in Note E to our condensed consolidated financial statements, on October 31, 2024, we closed on a registered direct offering and received net proceeds, after deducting placement agent fees and other offering expenses payable by us, of approximately $5.7 million. We also received proceeds from the exercise of warrants of $2,220,459 during the nine months ended June 30, 2025 and $292,305 in proceeds from warrant exercises subsequent to June 30, 2025.
Previous wording
The Company measures revenue at the amounts that reflect the consideration to which it is expected to be entitled in exchange for transferring control of goods and services to customers. The Company recognizes revenue either at the point in time or over the period of time that performance obligations to customers are satisfied. The Company’s contracts with customers may include multiple performance obligations (e.g. taggants, maintenance, authentication services, research and development services, etc.). For such arrangements, the Company allocates revenues to each performance obligation based on their relative standalone selling price.
Current wording
The Company measures revenue at the amounts that reflect the consideration to which it is expected to be entitled in exchange for transferring control of goods and services to customers. The Company recognizes revenue either at the point in time or over the period of time that performance obligations to customers are satisfied. The Company’s contracts with customers may include multiple performance obligations (e.g. DNA products, maintenance, authentication services, research and development services, etc.). For such arrangements, the Company allocates revenues to each performance obligation based on their relative standalone selling price.
Previous wording
Due to the short-term nature of the Company’s contracts with customers, it has elected to apply the practical expedients under Topic 606 to: (1) expense as incurred, incremental costs of obtaining a contract and (2) not adjust the consideration for the effects of a significant financing component for contracts with an original expected duration of one year or less.
Current wording
Due to the short-term nature of the Company’s current contracts with customers, it has elected to apply the practical expedients under Topic 606 to: (1) expense as incurred, incremental costs of obtaining a contract and (2) not adjust the consideration for the effects of a significant financing component for contracts with an original expected duration of one year or less.
Previous wording
The Company’s PCR-produced linear DNA product revenues are accounted for/recognized in accordance with contracts with customers. The Company recognizes revenue upon satisfying its promises to transfer goods or services to customers under the terms of its contracts. These performance obligations are satisfied at the point in time the Company transfers control of the goods to the customer, which in nearly all cases is when title to and risk of loss of the goods transfer to the customer. The timing of transfer of title and risk of loss is dictated by customary or explicitly stated contract terms. The Company invoices customers upon shipment, and its collection terms range, on average, from 30 to 60 days.
Current wording
The Company’s DNA product revenues are accounted for/recognized in accordance with contracts with customers. The Company recognizes revenue upon satisfying its promises to transfer goods or services to customers under the terms of its contracts. These performance obligations are satisfied at the point in time the Company transfers control of the goods to the customer, which in nearly all cases is when title to and risk of loss of the goods transfer to the customer. The timing of transfer of title and risk of loss is dictated by customary or explicitly stated contract terms. The Company invoices customers upon shipment, and its collection terms range, on average, from 30 to 60 days.
Previous wording
The Company recognizes revenue for authentication services upon satisfying its promises to provide services to customers under the terms of its contracts. These performance obligations are satisfied at the point in time the Company services are complete, which in nearly all cases is when the authentication report is released to the customer.
Current wording
The Company recognizes revenue from authentication services upon satisfying its promises to provide services to customers under the terms of its contracts. These performance obligations are satisfied at the point in time the Company services are complete, which in nearly all cases is when the authentication report is released to the customer.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
We believe the key advantages of LineaDNA include:
Current report — wording carried from elsewhere
Research and development expenses decreased to $2,632,931 for the nine-month period ended June 30, 2025 from $2,762,040 for the nine-month period ended June 30, 2024, a decrease of $129,109 or 5%. This decrease was attributable to decreased payroll charges of $236,000 offset by an increase in laboratory supplies of approximately $298,000 for the development of an enzyme within our Therapeutic DNA Production Services segment.
Current report — wording carried from elsewhere
of warrants classified as a liability, $5,212 in write-off of property and equipment, and $80,373 in stock-based compensation expense. Additionally, we had a net increase in operating assets of $545,522 and a net decrease in operating liabilities of $129,157. At June 30, 2025, we had cash and cash equivalents of $4,727,677.
Current report — wording carried from elsewhere
The Company’s revenue from its research and development contracts are accounted for/recognized when the performance obligations per the contract are satisfied. These performance obligations are satisfied at the point in time, either when the Company’s services are complete, or when the Company transfers control of the goods to the customer, which in nearly all cases is when title to and risk of loss of the goods transfer to the customer, or when a report is released to a customer. The timing of transfer of title and risk of loss is dictated by customary or explicitly stated contract terms. The Company invoices customers upon shipment, or completion of the services and its collection terms range, on average, from 30 to 60 days.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
Transaction cost allocated to warrant liabilities for the three-month period ended March 31, 2024 were $633,198. These transaction costs represent the closing costs from the February 2024 financing transaction. These costs were expensed as it would have resulted in negative additional paid in capital.
Previous report — wording carried elsewhere
Transaction costs allocated to warrant liabilities
Previous report — wording carried elsewhere
Unrealized loss on change in fair value of warrants classified as a liability-warrant modification
Previous report — wording carried elsewhere
Unrealized loss on change in fair value of warrants classified as a liability-warrant modification of $394,000 for the six-month period ended March 31, 2024 represents the change in fair value for the modifications made to certain warrants as a result of the February 2024 financing transaction.
Previous report — wording carried elsewhere
The loss on issuance of warrants of $1,633,767 for the six-month period ended March 31, 2024 relates to the February 2024 financing transaction and is the result of the fair value of the warrants being greater than the cash received from the financing.