<SEC-DOCUMENT>0001571049-15-006584.txt : 20150811
<SEC-HEADER>0001571049-15-006584.hdr.sgml : 20150811
<ACCEPTANCE-DATETIME>20150811172054
ACCESSION NUMBER:		0001571049-15-006584
CONFORMED SUBMISSION TYPE:	424B3
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20150811
DATE AS OF CHANGE:		20150811

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			APPLIED DNA SCIENCES INC
		CENTRAL INDEX KEY:			0000744452
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-MISCELLANEOUS BUSINESS SERVICES [7380]
		IRS NUMBER:				592262718
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		424B3
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-199121
		FILM NUMBER:		151044804

	BUSINESS ADDRESS:	
		STREET 1:		50 HEALTH SCIENCES DRIVE
		CITY:			STONY BROOK
		STATE:			NY
		ZIP:			11790
		BUSINESS PHONE:		631-240-8800

	MAIL ADDRESS:	
		STREET 1:		50 HEALTH SCIENCES DRIVE
		CITY:			STONY BROOK
		STATE:			NY
		ZIP:			11790

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PROHEALTH MEDICAL TECHNOLOGIES INC
		DATE OF NAME CHANGE:	20010504

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DCC ACQUISITION CORP
		DATE OF NAME CHANGE:	19990211

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DATALINK CAPITAL CORP/TX/
		DATE OF NAME CHANGE:	19980306
</SEC-HEADER>
<DOCUMENT>
<TYPE>424B3
<SEQUENCE>1
<FILENAME>t82943_424b3.htm
<DESCRIPTION>PROSPECTUS SUPPLEMENT NO. 7 DATED AUGUST 11, 2015
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<HR NOSHADE SIZE="1" STYLE="color: Black; width: 100%; margin-top: 3pt; margin-bottom: 3pt">
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: right">Filed Pursuant to Rule 424(b)(3)<BR>
File No. 333-199121</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><B>PROSPECTUS SUPPLEMENT NO. 7 DATED AUGUST 11, 2015 TO PROSPECTUS
DATED NOVEMBER 18, 2014, AS SUPPLEMENTED BY PROSPECTUS SUPPLEMENT NO. 1 DATED DECEMBER 17, 2014, PROSPECTUS SUPPLEMENT NO. 2 DATED
FEBRUARY 11, 2015, PROSPECTUS SUPPLEMENT NO. 3 DATED MARCH 10, 2015, PROSPECTUS SUPPLEMENT NO. 4 DATED APRIL 7, 2015, PROSPECTUS
SUPPLEMENT NO. 5 DATED MAY 14, 2015 AND PROSPECTUS SUPPLEMENT NO. 6 DATED JUNE 23, 2015</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><FONT STYLE="text-transform: uppercase"><B>APPLIED
DNA SCIENCES, INC.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><FONT STYLE="text-transform: uppercase"><B>PROSPECTUS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><FONT STYLE="text-transform: uppercase"><B>$9,100,000
OF SHARES OF COMMON STOCK AND<BR>
WARRANTS TO PURCHASE SHARES OF COMMON STOCK</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt">This Prospectus Supplement No.7 updates and supplements
the prospectus of Applied DNA Sciences, Inc. (&ldquo;the &ldquo;Company&rdquo;, &ldquo;we&rdquo;, &ldquo;us&rdquo;, or &ldquo;our&rdquo;)
dated November 18, 2014, as updated and supplemented by Prospectus Supplement No. 1 dated December 17, 2014, Prospectus Supplement
No. 2 dated February 11, 2015, Prospectus Supplement No. 3 dated March 10, 2015, Prospectus Supplement No. 4 dated April 7, 2015,
 Prospectus Supplement No. 5 dated May 14, 2015 and Prospectus Supplement No. 6 dated June 23, 2015 (collectively, the
&ldquo;Prospectus&rdquo;), with the following attached document which we filed with the Securities and Exchange Commission:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%"></TD>
    <TD STYLE="width: 6%"><FONT STYLE="font-size: 10pt">A.</FONT></TD>
    <TD STYLE="width: 88%"><FONT STYLE="font-size: 10pt">Our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2015 filed with the Securities and Exchange Commission on August 10, 2015</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">This Prospectus Supplement No.
7 should be read in conjunction with the Prospectus, which is required to be delivered with this Prospectus Supplement. This Prospectus
Supplement updates, amends and supplements the information included in the Prospectus. If there is any inconsistency between the
information in the Prospectus and this Prospectus Supplement, you should rely on the information in this Prospectus Supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">This Prospectus Supplement is not complete
without, and may not be delivered or utilized except in connection with, the Prospectus, including any amendments or supplements
to it.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">The purchase of the securities offered
through the Prospectus involves a high degree of risk. Before making any investment in our common stock and/or warrants, you should
carefully consider the risk factors section beginning on page 8 of the Prospectus and the &ldquo;Risk Factors&rdquo; section in
our Annual Report on Form 10-K filed with the Securities and Exchange Commission on December 15, 2014, as amended on Form 10-K/A
on March 6, 2015.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">You should rely only on the information
contained in the Prospectus, as supplemented or amended by this Prospectus Supplement No. 7 and any other prospectus supplement
or amendment thereto. We have not authorized anyone to provide you with different information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">Neither the Securities and Exchange Commission
nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of
the Prospectus and this Prospectus Supplement. Any representation to the contrary is a criminal offense.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center">The date of this Prospectus Supplement
No. 7 is August 11, 2015</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 100%">
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: gainsboro 0.75pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 100%; font-size: 10pt; text-align: center"></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 100%; font-size: 10pt; text-align: center"></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 100%; font-size: 10pt; text-align: center"></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><FONT STYLE="text-transform: uppercase"><B>INDEX
TO FILINGS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center; text-indent: 0.5in"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 93%; font-size: 10pt"></TD>
    <TD STYLE="width: 7%; border-bottom: black 1pt solid; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">Annex </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">A. The Company&rsquo;s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2015 filed with the Securities and Exchange Commission on August 10, 2015</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">A</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"></TD>
    <TD STYLE="font-size: 10pt; text-align: center"></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"></TD>
    <TD STYLE="font-size: 10pt; text-align: center"></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif;text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif;text-align: left"></P>

<!-- Field: Page; Sequence: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"></P>



<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0">&nbsp;</P>

<!-- Field: Rule-Page --><DIV STYLE="text-align: left; margin-top: 0pt; margin-bottom: 0pt"><DIV STYLE="font-size: 1pt; border-top: Black 4pt solid; border-bottom: Black 2px solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->



<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>UNITED
STATES</B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>SECURITIES
AND EXCHANGE COMMISSION</B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Washington,
D.C. 20549</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>FORM
10-Q</B>&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%; padding-right: 0.8pt; font-size: 11pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 90%; padding-right: 0.8pt; font-size: 11pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; text-align: center; font-size: 11pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&#9746;</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify; font-size: 11pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>QUARTERLY
    REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</B></FONT></TD></TR>

</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>For
the quarterly period ended June 30, 2015</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>OR</B>&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 11pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%; padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 90%; padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&#9744;</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>TRANSITION
    REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</B></FONT></TD></TR>

</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>For
the transition period from&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Commission
File Number: 001-36745</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Applied
DNA Sciences, Inc.</B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(Exact
name of registrant as specified in its charter)&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 11pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 50%; padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Delaware</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>59-2262718</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(State or other
    jurisdiction of</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(I.R.S. Employer</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">incorporation
    or organization)</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Identification
    No.)</FONT></TD></TR>

</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 11pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; padding-right: 0.8pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>50
    Health Sciences Drive</B></FONT></TD>
    <TD STYLE="width: 50%; padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Stony Brook,
    New York</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>11790</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(Address of principal
    executive offices)</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(Zip Code)</FONT></TD></TR>

</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>631-240-
8800</B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(Registrant&rsquo;s
telephone number, including area code)&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9746;&nbsp;&nbsp;&nbsp;Yes&nbsp;&nbsp;&nbsp;&nbsp;&#9744;&nbsp;&nbsp;&nbsp;No</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Indicate
by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (&sect;232.405 of this chapter) during the
preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9746;&nbsp;&nbsp;&nbsp;Yes&nbsp;&nbsp;&nbsp;&nbsp;&#9744;&nbsp;&nbsp;&nbsp;No</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller
reporting company. See the definitions of &ldquo;large accelerated filer&rdquo;, &ldquo;accelerated filer&rdquo;, and &ldquo;smaller
reporting company&rdquo; in Rule 12b-2 of the Exchange Act. (Check one):&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 11pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 50%; padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Large accelerated
    filer &#9744;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Accelerated filer
    &#9746;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Non-accelerated
    filer &#9744;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Smaller reporting
    company &#9744;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(Do not check
    if a smaller reporting company)</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>

</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9744;
&nbsp;&nbsp;&nbsp;Yes&nbsp;&nbsp;&nbsp;&nbsp;&#9746;&nbsp;&nbsp;&nbsp;No</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">At
August 6, 2015, the registrant had 21,487,202 shares of common stock outstanding.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Rule-Page --><DIV STYLE="text-align: left; margin-top: 3pt; margin-bottom: 12pt"><DIV STYLE="font-size: 1pt; border-top: Black 2px solid; border-bottom: Black 4pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<!-- Field: Page; Sequence: 2; Options: NewSection -->
    <DIV STYLE="margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR>
</TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR>
</TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Applied
DNA Sciences, Inc.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Form
10-Q for the Quarter Ended June 30, 2015&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Table
of Contents&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 11pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 92%; padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 5%; padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Page</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><A HREF="#t82897a001_v1"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>PART I - FINANCIAL INFORMATION</B></FONT></A></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><A HREF="#t82897a002_v1"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Item 1 - Financial Statements (unaudited)</FONT></A></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">1</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><A HREF="#t82897a003_v1"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Item 2 - Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations</FONT></A></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">15</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><A HREF="#t82897a004_v1"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Item 3 - Quantitative and Qualitative Disclosures About Market Risk</FONT></A></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">22</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><A HREF="#t82897a005_v1"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Item 4 - Controls and Procedures</FONT></A></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">23</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><A HREF="#t82897a006_v1"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>PART II - OTHER INFORMATION</B></FONT></A></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><A HREF="#t82897a007_v1"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Item 1 &ndash; Legal Proceedings</FONT></A></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">24</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><A HREF="#t82897a008_v1"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Item 1A &ndash; Risk Factors</FONT></A></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">24</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><A HREF="#t82897a009_v1"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Item 2 &ndash; Unregistered Sales of Equity Securities and Use of Proceeds</FONT></A></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">24</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><A HREF="#t82897a010_v1"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Item 3 &ndash; Defaults Under Senior Securities</FONT></A></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">24</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><A HREF="#t82897a011_v1"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Item 4 &ndash; Mine Safety Disclosures</FONT></A></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">24</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><A HREF="#t82897a012_v1"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Item 5 &ndash; Other Information</FONT></A></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">24</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><A HREF="#t82897a013_v1"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Item 6 - Exhibits</FONT></A></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">25</FONT></TD></TR>

</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 3 -->
    <DIV STYLE="margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR>
</TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR>
</TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><A NAME="t82897a001_v1"></A>Part
I</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><A NAME="t82897a002_v1"></A>Item
1 - Financial Statements.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>APPLIED
DNA SCIENCES, INC.</B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>CONDENSED
CONSOLIDATED BALANCE SHEETS</B>&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 11pt; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 2px solid; text-align: center">June 30,&nbsp; <BR>2015</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 2px solid; text-align: center">September 30,&nbsp; <BR>2014</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">(unaudited)</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="text-align: center">ASSETS</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Current assets:</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="width: 70%; text-align: left">Cash and cash equivalents</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 10%; text-align: right">10,730,144</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 10%; text-align: right">1,393,132</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accounts receivable, net of allowance of $30,228 and $9,634 at June 30, 2015 and September 30, 2014, respectively</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,077,756</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">834,818</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Prepaid expenses and other current assets</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">209,831</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">135,365</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Total current assets</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">13,017,731</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,363,315</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Property, plant and equipment, net of accumulated depreciation of $743,914 at June 30, 2015 and $759,087 at September 30, 2014</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">526,816</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">576,128</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Other assets:</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD>Deposits</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">52,988</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">57,638</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Deferred offering costs</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">181,104</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Intangible assets, net of accumulated amortization and impairment of $325,555 and $256,208 at June 30, 2015 and September 30, 2014, respectively</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">525,902</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">327,872</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Total Assets</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: right">14,123,437</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: right">3,506,057</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="text-align: center">LIABILITIES AND STOCKHOLDERS&rsquo; EQUITY (DEFICIT)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="text-align: left">Current liabilities:</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accounts payable and accrued liabilities, including related party accrued interest of $6,597 at September 30, 2014</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">1,418,615</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">1,494,759</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="text-align: left">Promissory notes payable, including $1,000,000 with a related party at September 30, 2014</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,800,000</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Deferred revenue</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">204,863</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">583,362</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="text-align: left">Total current liabilities</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,623,478</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,878,121</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Warrant liability</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">&mdash;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">1,096,412</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Total liabilities</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">1,623,478</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">4,974,533</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="text-align: left">Commitments and contingencies (Note I)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="text-align: left">Stockholders&rsquo; Equity (Deficit)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- shares issued and outstanding as of June 30, 2015 and September 30, 2014</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD>Series A Preferred stock, par value $0.001 per share, 10,000,000 shares authorized; -0- issued and outstanding as of June 30, 2015 and September 30, 2014</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Series B Preferred stock, par value $0.001 per share, 10,000,000 shares authorized; -0- issued and outstanding as of June 30, 2015 and September 30, 2014</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD>Common stock, par value $0.001 per share; 500,000,000 and 1,350,000,000 shares authorized at June 30, 2015 and September 30, 2014, respectively; 21,482,202 and 13,935,954 shares issued and outstanding as of June 30, 2015 and September 30, 2014, respectively</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">21,483</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">13,937</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Additional paid in capital</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">223,623,850</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">198,277,859</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Accumulated deficit</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">(211,145,374</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">(199,760,272</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Total stockholders&rsquo; equity (deficit)</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">12,499,959</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">(1,468,476</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Total Liabilities and Stockholders&rsquo; Equity (Deficit)</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: right">14,123,437</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: right">3,506,057</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>

</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">See
the accompanying notes to the unaudited condensed consolidated financial statements</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<!-- Field: Page; Sequence: 4; Options: NewSection; Value: 1 -->
    <DIV STYLE="margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->1<!-- Field: /Sequence --></TD></TR>
</TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR>
</TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>APPLIED
    DNA SCIENCES, INC.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>CONDENSED
    CONSOLIDATED STATEMENTS OF OPERATIONS</B></FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;(Unaudited)</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Three Months Ended June
    30,</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Nine Months Ended June 30,</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 2px solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2015</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 2px solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2014</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 2px solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2015</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 2px solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2014</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="width: 40%">Revenues</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 10%; text-align: right">2,267,671</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 10%; text-align: right">841,197</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 10%; text-align: right">5,028,234</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 10%; text-align: right">2,075,698</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="text-align: left">Operating expenses:</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Selling, general and administrative</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,508,455</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,948,452</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">11,078,405</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,093,631</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="text-align: left">Research and development</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">310,093</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">266,331</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">961,745</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,085,416</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Depreciation and amortization</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">121,339</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">113,424</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">354,144</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">325,448</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Total operating expenses</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">3,939,887</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">3,328,207</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">12,394,294</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">11,504,495</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">LOSS FROM OPERATIONS</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(1,672,216</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(2,487,010</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(7,366,060</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(9,428,797</TD>
    <TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Other income (expense):</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="text-align: left">Interest income (expense), net</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,052</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">111</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(26,807</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">784</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Other (expense) income, net</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(3,718</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">52,299</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(16,853</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">130,186</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="text-align: left">Loss on conversion of promissory notes</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(980,842</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Gain (loss) on change in fair value of warrant liability</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">&mdash;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">515,543</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">(2,994,540</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">(1,663,316</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net loss before provision for income taxes</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(1,670,882</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(1,919,057</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(11,385,102</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(10,961,143</TD>
    <TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Provision for income taxes</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">&mdash;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">&mdash;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">&mdash;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">&mdash;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">NET LOSS</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: right">(1,670,882</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: right">(1,919,057</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: right">(11,385,102</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: right">(10,961,143</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Net loss per share-basic and diluted</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: right">(0.08</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: right">(0.14</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: right">(0.63</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: right">(0.82</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Weighted average shares outstanding-</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: right">21,444,335</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: right">13,569,262</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: right">18,075,506</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: right">13,400,540</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>

</TABLE>



<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">See
                                         the accompanying notes to the unaudited condensed consolidated financial statements</FONT></P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<!-- Field: Page; Sequence: 5; Value: 1 -->
    <DIV STYLE="margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></TD></TR>
</TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR>
</TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>APPLIED
DNA SCIENCES, INC</B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS</B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>(Unaudited)</B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-size: 10pt; text-align: center">Nine Months Ended &nbsp; <BR>June 30,</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 2px solid; font-size: 10pt; text-align: center">2015</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 2px solid; font-size: 10pt; text-align: center">2014</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Cash flows from operating activities:</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 70%; font-size: 10pt; text-align: left">Net loss</TD>
    <TD STYLE="width: 3%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD>
    <TD STYLE="width: 10%; font-size: 10pt; text-align: right">(11,385,102</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">)</TD>
    <TD STYLE="width: 3%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD>
    <TD STYLE="width: 10%; font-size: 10pt; text-align: right">(10,961,143</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Adjustments to reconcile net loss to net cash used in operating activities:</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Depreciation and amortization</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: right">354,144</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: right">325,448</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Stock based compensation expense</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: right">3,531,205</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: right">1,717,837</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Change in fair value of warrant liability</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: right">2,994,540</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: right">1,663,316</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Loss on conversion of promissory notes</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: right">980,842</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Common stock issued for consulting services</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: right">64,426</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: right">337,500</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Bad debt expense</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: right">21,750</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: right">16,878</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-style: italic; text-align: left">Change in operating assets and liabilities:</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Accounts receivable</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: right">(1,275,189</TD>
    <TD STYLE="font-size: 10pt; text-align: left">)</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: right">137,486</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Prepaid expenses and other current assets and deposits</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: right">(59,315</TD>
    <TD STYLE="font-size: 10pt; text-align: left">)</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: right">(924</TD>
    <TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Accounts payable and accrued liabilities</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: right">(75,515</TD>
    <TD STYLE="font-size: 10pt; text-align: left">)</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: right">292,462</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Deferred revenue</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; font-size: 10pt; text-align: right">(378,499</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; font-size: 10pt; text-align: right">200,121</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Net cash used in operating activities</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; font-size: 10pt; text-align: right">(5,226,713</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; font-size: 10pt; text-align: right">(6,271,019</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Cash flows used in investing activities:</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Purchase of property plant and equipment</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: right">(221,659</TD>
    <TD STYLE="font-size: 10pt; text-align: left">)</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: right">(209,522</TD>
    <TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Purchase of intangible assets</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; font-size: 10pt; text-align: right">(238,082</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; font-size: 10pt; text-align: right">&mdash;</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Net cash used in investing activities</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; font-size: 10pt; text-align: right">(459,741</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; font-size: 10pt; text-align: right">(209,522</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Cash flows from financing activities:</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Net proceeds from sale of common stock and warrants</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: right">19,114,418</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: right">2,145,956</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Purchase and cancelation of previously issued warrants</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; font-size: 10pt; text-align: right">(4,090,952</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; font-size: 10pt; text-align: right">&mdash;</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Net cash provided by financing activities</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; font-size: 10pt; text-align: right">15,023,466</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; font-size: 10pt; text-align: right">2,145,956</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Net increase (decrease) in cash and cash equivalents</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: right">9,337,012</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: right">(4,334,585</TD>
    <TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Cash and cash equivalents at beginning of period</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; font-size: 10pt; text-align: right">1,393,132</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; font-size: 10pt; text-align: right">6,360,301</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Cash and cash equivalents at end of period</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: right">10,730,144</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: right">2,025,716</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Supplemental Disclosures of Cash Flow Information:</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Cash paid during period for interest</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: right">&mdash;</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: right">&mdash;</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Cash paid during period for taxes</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: right">&mdash;</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: right">&mdash;</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Non-cash investing and financing activities:</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Common stock issued for cashless exercise of options and warrants</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: right">&mdash;</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: right">19,570</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Reclassification of deferred offering costs to additional paid in capital</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: right">181,104</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: right">&mdash;</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Reclassification of warrants from liability to equity upon exercise</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: right">&mdash;</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: right">2,455,042</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Offering costs incurred, and included in accounts payable and accrued liabilities</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: right">68,489</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: right">&mdash;</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Property, plant and equipment acquired, and included in accounts payable</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: right">13,825</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: right">&mdash;</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Intangible assets acquired, and included in accounts payable</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: right">29,296</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 11pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 11pt; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 11pt; text-align: right">&mdash;</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-size: 11pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Common stock issued upon conversion of promissory notes payable</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 10pt; text-align: right">1,843,750</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 11pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 11pt; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4px double; font-size: 11pt; text-align: right">&mdash;</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-size: 11pt; text-align: left">&nbsp;</TD></TR>

</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">See
the accompanying notes to the unaudited condensed consolidated financial statements</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 6; Value: 1 -->
    <DIV STYLE="margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></TD></TR>
</TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR>
</TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>APPLIED
DNA SCIENCES, INC.&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>June
30, 2015</B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>(unaudited)</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>NOTE
A &mdash; SUMMARY OF ACCOUNTING POLICIES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><U>General</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
accompanying condensed consolidated financial statements as of June 30, 2015 and for the three and nine month periods ended June
30, 2015 and 2014 are unaudited. These unaudited condensed consolidated financial statements have been prepared in accordance
with accounting principles generally accepted in the United States (&ldquo;GAAP&rdquo;) for interim financial information and
are presented in accordance with the requirements of Rule S-X of the Securities and Exchange Commission (the &ldquo;SEC&rdquo;)
and with the instructions to Form 10-Q.  Accordingly, they do not include all the information and footnotes required by generally
accepted accounting principles for complete financial statements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">In
the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation
have been included. Operating results for the three and nine month periods ended June 30, 2015 are not necessarily indicative
of the results that may be expected for the fiscal year ending September 30, 2015. The unaudited condensed consolidated financial
statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended September
30, 2014 and footnotes thereto included in the Annual Report on Form 10-K, as amended, of Applied DNA Sciences, Inc. (the &ldquo;Company&rdquo;)
filed with the SEC.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
condensed consolidated balance sheet as of September 30, 2014 contained herein has been derived from the audited consolidated
financial statements as of September 30, 2014, but does not include all disclosures required by GAAP.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">All
warrant, option, share, and per share information in the condensed consolidated financial statements gives retroactive effect
to the one-for-60 reverse stock split of the Company&rsquo;s common stock, par value $.001 per share, that was effected on October
29, 2014. See Note G.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><U>Business
and Basis of Presentation</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">On
September 16, 2002, the Company was incorporated under the laws of the State of Nevada. Effective December 17, 2008, the Company
reincorporated from the State of Nevada to the State of Delaware. The Company is principally devoted to developing DNA embedded
biotechnology security solutions in the United States and Europe. To date, the Company has had a limited operating history, and
as a result, its operations have produced limited recurring revenues from its services and products; it has incurred expenses
and has sustained losses. Consequently, its operations are subject to all the risks inherent in the establishment of a biotechnology
company. For the period from inception through June 30, 2015, the Company has accumulated losses of $211,145,374.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, APDN
(B.V.I.) Inc. and Applied DNA Sciences Europe Limited, which currently have no operations or activity. Significant inter-company
transactions and balances have been eliminated in consolidation.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><U>Revenue
Recognition</U>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
Company recognizes revenue in accordance with Accounting Standards Codification (&ldquo;ASC&rdquo;) 605, Revenue Recognition (&ldquo;ASC
605&rdquo;). ASC 605 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of
an arrangement exists; (2) delivery has occurred and/or service has been performed; (3) the selling price is fixed and determinable;
and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management&rsquo;s judgments
regarding the fixed nature of the selling prices of the products delivered or services provided and the collectability of those
amounts. Provisions for allowances and other adjustments are provided for in the same period the related sales are recorded. The
Company defers any revenue for which the product has not been delivered, service has not been provided, or is subject to refund
until such time that the Company and the customer jointly determine that the product has been delivered, the service has been
provided, or no refund will be required. At June 30, 2015 and September 30, 2014, the Company recorded deferred revenue of $204,863
and $583,362, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 7; Value: 1 -->
    <DIV STYLE="margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></TD></TR>
</TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR>
</TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>APPLIED
DNA SCIENCES, INC.</B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>June
30, 2015</B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>(unaudited)&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>NOTE
A &mdash; SUMMARY OF ACCOUNTING POLICIES (continued)</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><U>Revenue
Recognition</U>, continued</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Revenue
arrangements with multiple components are divided into separate units of accounting if certain criteria are met, including whether
the delivered component has stand-alone value to the customer. Consideration received is allocated among the separate units of
accounting based on their respective selling prices. The selling price for each unit is based on vendor-specific objective evidence,
or VSOE, if available, third party evidence if VSOE is not available, or estimated selling price if neither VSOE nor third party
is available. The applicable revenue recognition criteria are then applied to each of the units.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Revenue
for government contract awards, which supports the Company&rsquo;s development efforts on specific projects, is recognized as
milestones are achieved as per the contract. The Company recognized revenue of approximately $657,708 and $1,919,031 from these
contract awards during the three and nine month periods ended June 30, 2015 and $0 and $50,000 for the three and nine month periods
ended June 30, 2014, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><U>Net
Loss Per Share</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
Company presents loss per share utilizing a dual presentation of basic and diluted loss per share. Basic loss per share includes
no dilution and has been calculated based upon the weighted average number of common shares outstanding during the period. Dilutive
common stock equivalents consist of shares issuable upon the exercise of the Company&rsquo;s stock options and warrants.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">For
the three and nine month periods ended June 30, 2015 and 2014, common stock equivalent shares are excluded from the computation
of the diluted loss per share as their effect would be anti-dilutive.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 8; Value: 1 -->
    <DIV STYLE="margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></TD></TR>
</TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR>
</TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>APPLIED
DNA SCIENCES, INC.</B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>June
30, 2015</B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>(unaudited)&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>NOTE
A &mdash; SUMMARY OF ACCOUNTING POLICIES (continued)</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><U>Net
Loss Per Share</U>, continued</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Securities
that could potentially dilute basic net income per share in the future that were not included in the computation of diluted net
loss per share because including those securities would have been anti-dilutive for the three and nine month periods ended
June 30, 2015 and 2014 are as follows:&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>2015</B></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>2014</B></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="width: 50%">Warrants</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">6,062,487</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">240,439</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Employee options</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">3,456,989</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: right">2,073,043</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(247,255,255)">
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: right">9,519,476</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: right">2,313,482</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>

</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><U>Stock
Based Compensation</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
Company accounts for stock-based compensation for employees and directors in accordance with ASC 718, Compensation (&ldquo;ASC
718&rdquo;). ASC 718 requires all share-based payments to employees, including grants of employee stock options, to be recognized
in the statement of operations based on their fair values. Under the provisions of ASC 718, stock-based compensation costs are
measured at the grant date, based on the fair value of the award, and are recognized as expense over the employee&rsquo;s requisite
service period (generally the vesting period of the equity grant). The fair value of the Company&rsquo;s common stock options
are estimated using the Black Scholes option-pricing model with the following assumptions: expected volatility, dividend rate,
risk free interest rate and the expected life. The Company expenses stock-based compensation by using the straight-line method.
In accordance with ASC 718, excess tax benefits realized from the exercise of stock-based awards are classified in cash flows
from financing activities. The future realization of the reserved deferred tax assets related to these tax benefits associated
with the exercise of stock options will result in a credit to additional paid in capital if the related tax deduction reduces
taxes payable. The Company has elected the &ldquo;with and without approach&rdquo; regarding ordering of windfall tax benefits
to determine whether the windfall tax benefit did reduce taxes payable in the current year. Under this approach, the windfall
tax benefit would be recognized in additional paid-in-capital only if an incremental tax benefit is realized after considering
all other benefits presently available.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
Company accounts for stock based compensation awards issued to non-employees for services, as prescribed by ASC 718-10, at either
the fair value of the services rendered or the instruments issued in exchange for such services, whichever is more readily determinable,
using the measurement date guidelines enumerated in&nbsp;ASC 505-50.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><U>Concentrations</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Financial
instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash,
cash equivalents and trade receivables. The Company places its cash and temporary cash investments with high credit quality institutions.
At times, such investments may be in excess of the FDIC insurance limit.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
Company&rsquo;s revenues earned from sale of products and services for the three and nine month periods ended June 30, 2015 included
an aggregate of 87% and 73%, respectively, from two customers of the Company&rsquo;s total revenues. These two customers accounted
for approximately 89% of the Company&rsquo;s total accounts receivable at June 30, 2015.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
Company&rsquo;s revenues earned from sale of products and services for the three month period ended June 30, 2014 included an
aggregate of 10% from one customer of the Company&rsquo;s total revenues. During the nine month period ended June 30, 2014 no
customers represented 10% or greater of the Company&rsquo;s total revenues.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 9; Value: 1 -->
    <DIV STYLE="margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->6<!-- Field: /Sequence --></TD></TR>
</TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR>
</TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>APPLIED
DNA SCIENCES, INC.</B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>June
30, 2015</B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>(unaudited)</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>NOTE
A &mdash; SUMMARY OF ACCOUNTING POLICIES (continued)</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><U>Recent
Accounting Pronouncements</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">In
August 2014, the Financial Accounting Standards Board (&ldquo;FASB&rdquo;) issued ASU 2014-15, &ldquo;Disclosure of Uncertainties
about an Entity&rsquo;s Ability to Continue as a Going Concern&rdquo; (&ldquo;ASU 2014-15&rdquo;). ASU 2014-15 provides guidance
on management&rsquo;s responsibility in evaluating whether there is substantial doubt about a company&rsquo;s ability to continue
as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate
whether there are conditions or events that raise substantial doubt about a company&rsquo;s ability to continue as a going concern
within one year from the date the financial statements are issued. The amendments in ASU 2014-15 are effective for annual reporting
periods ending after December 15, 2016, and for annual and interim periods thereafter. Early adoption is permitted. The Company
will adopt the methodologies prescribed by ASU 2014-15 by the date required, and does not anticipate that the adoption of ASU
2014-15 will have a material effect on its condensed consolidated financial position or results of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">In
June 2014, the FASB issued Accounting Standards Update 2014-12, &ldquo;Accounting for share-based payments when the terms of an
award provide that a performance target could be achieved after the requisite service period,&rdquo; (&ldquo;ASU 2014-12&rdquo;)
which requires performance-based awards with a performance target that affects vesting and that could be achieved after an employee
completes the requisite service period to be accounted for as a performance condition. If performance targets are clearly defined
and it is probable that the performance condition will be achieved, stock-based expense should be recognized over the remaining
requisite service period. This guidance will be effective for fiscal years (and interim reporting periods within those years)
beginning after December 15, 2015. Early adoption is permitted. The Company is in the process of evaluating the provisions of
the ASU and assessing the potential effect on the Company&rsquo;s condensed consolidated financial position or results of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">In
May 2014, the FASB issued Accounting Standards Update 2014-09, &ldquo;Revenue from Contracts with Customers,&rdquo; (&ldquo;ASU
2014-09&rdquo;) which provides updated, comprehensive revenue recognition guidance for contracts with customers, including a new
principles-based five step framework that eliminates much of the industry-specific guidance in current accounting literature.
Under ASU 2014-09, revenue recognition is based on a core principle that companies recognize revenue in an amount consistent with
the consideration it expects to be entitled to in exchange for the transfer of goods or services. The standards update also requires
enhanced disclosures regarding the nature, amount, timing and uncertainty of recognized revenue. This guidance will be effective
for fiscal years (and interim reporting periods within those years) beginning after December 15, 2017. The Company is in the process
of evaluating the provisions of the ASU and assessing the potential effect on the Company&rsquo;s condensed consolidated financial
position or results of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 10; Value: 1 -->
    <DIV STYLE="margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->7<!-- Field: /Sequence --></TD></TR>
</TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR>
</TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>APPLIED DNA SCIENCES,
INC.</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>June 30, 2015</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>(unaudited)</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0"><FONT STYLE="font-size: 10pt"><B>NOTE B &ndash; LIQUIDITY AND MANAGEMENT&rsquo;S
PLAN</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">The Company has recurring
net losses, which have resulted in an accumulated deficit of $211,145,374 as of June 30, 2015. The Company incurred a net loss
of $11,385,102 and generated negative operating cash flow of $5,226,713 for the nine month period ended June 30, 2015.&nbsp;&nbsp;However,
the Company also has attained positive working capital of $11,394,253 as of June 30, 2015. At June 30, 2015 the Company had cash
and cash equivalents of $10,730,144. The Company&rsquo;s current capital resources include cash and cash equivalents, accounts
receivable and prepaid expenses. Historically, the Company has financed its operations principally from the sale of equity securities.
As discussed in Note G, on April 1, 2015, the Company closed its underwritten public offering of common stock and warrants for
gross proceeds of approximately $12.0 million, before deducting underwriting discounts and offering expenses.<B> </B>Subsequently
on April 30, 2015,<SUP> </SUP>the Company closed on the over-allotment option of the underwritten public offering for additional
gross proceeds of $263,950. In addition, on November 20, 2014 the Company closed its underwritten public offering of common stock
and warrants for gross proceeds of $9.3 million before deducting underwriting discounts and offering expenses. The Company utilized
approximately $4,091,000 of the gross proceeds to repurchase the remaining Series B Warrants from Crede, as discussed in Note
E.&nbsp;&nbsp;The Company raised $2,156,264 in a private placement of common stock and warrants and $1,800,000 in promissory notes
during the fiscal year ended September 30, 2014, including $1,000,000 from a related party. See Notes D and G.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">The Company expects
to finance operations primarily through cash flows provided by operating activities provided that it will achieve a sufficient
level of future revenues. The Company estimates that its cash and cash equivalents are sufficient to fund operations for the next
twelve months.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">The Company will require
additional funds to complete the continued development of its products, product manufacturing, and to fund expected additional
losses from operations, until revenues are sufficient to cover the Company&rsquo;s operating expenses.&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>NOTE C &ndash; ACCOUNTS
PAYABLE AND ACCRUED LIABILITIES</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">Accounts payable and
accrued liabilities at June 30, 2015 and September 30, 2014 are as follows:</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="width: 80%; border-collapse: collapse; font-size: 11pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 1.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 1.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid"><P STYLE="font: 10pt/normal Times New Roman; margin: 0 1.8pt 0 0; text-align: center"><FONT STYLE="font-size: 10pt">June
        30,</FONT></P>
        <P STYLE="font: 10pt/normal Times New Roman; margin: 0 1.8pt 0 0; text-align: center"><FONT STYLE="font-size: 10pt">2015</FONT></P>
        <P STYLE="font: 10pt/normal Times New Roman; margin: 0 1.8pt 0 0; text-align: center"><FONT STYLE="font-size: 10pt">(unaudited)</FONT></P></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid"><P STYLE="font: 10pt/normal Times New Roman; margin: 0 1.8pt 0 0; text-align: center"><FONT STYLE="font-size: 10pt">September
        30,<BR>2014</FONT></P></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: Azure">
    <TD STYLE="width: 48%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Accounts payable</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 2%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">$</FONT></TD>
    <TD STYLE="width: 13%; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">770,395</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">$</FONT></TD>
    <TD STYLE="width: 12%; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">1,059,623</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Accrued consulting fees</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">110,500</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">102,500</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: Azure">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Accrued salaries payable</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">428,098</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">245,761</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Accrued interest payable</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">-</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">11,875</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: Azure">
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Other
    accrued expenses</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">109,622</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">75,000</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Total</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">$</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; text-align: right; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman">1,418,615</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">$</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">1,494,759</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>

</TABLE>
<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0"><FONT STYLE="font-size: 10pt"><B>NOTE D &ndash; PROMISSORY NOTES PAYABLE</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">On September 11, 2014,
the Company issued and sold promissory notes (the &ldquo;Notes&rdquo;) in the aggregate principal amount of $1,800,000 and bearing
interest at a rate of 12.5% per annum to Dr. James A. Hayward, the Company&rsquo;s President, Chairman and Chief Executive Officer,
in the amount of $1,000,000, and to another individual, in the amount of $800,000, both of whom are &ldquo;accredited investors&rdquo;
as defined in regulations promulgated under the Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;).</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">The Notes had a ten
month maturity. Interest was payable in cash or in shares of common stock at the option of the holders of the Notes. Interest
to be paid in shares was to be paid in shares of common stock equal to (i) the amount of interest payable, divided by (ii) the
average of the closing prices for the five consecutive trading days immediately preceding the applicable interest date. The Notes
were permitted to be prepaid in whole or in part, at any time, subject to certain prepayment penalties. Upon an event of default,
the Notes and all accrued interest thereon were to automatically convert into common stock at the closing price of the common
stock on the date of issuance of the Notes. In the event of a consolidation or merger with another corporation in which the Company
does not survive, the Notes were to be paid in full. On November 11, 2014, Dr. Hayward and the other individual agreed to exchange
for cancellation their respective Notes (including principal and accrued interest thereon) for 315,171 shares of common
stock and warrants to purchase 315,171 shares of common stock, in the case of Dr. Hayward, and 252,137 shares of common stock
and warrants to purchase 252,137 shares of common stock, in the case of the other individual, at $3.25 ($3.24 for one share of
common stock and $0.01 for one warrant) (&ldquo;combined price&rdquo;) , the aggregate public offering per share price of common
stock and warrants issued in the Company&rsquo;s underwritten public offering, which closed on November 20, 2014.&nbsp;&nbsp;The
conversion of the Notes resulted in a loss on conversion of approximately $981,000, which was recorded on the condensed consolidated
statement of operations for the nine month period ended June 30, 2015.&nbsp;&nbsp;The loss was calculated as the difference between
the carrying amount of the promissory note and accrued interest on the conversion date compared to the fair value of the common
stock and warrant issued as settlement of the Notes.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">Interest expense for
these Notes was $31,875 for the nine month period ended June 30, 2015.&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 11; Options: NewSection; Value: 8 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->8<!-- Field: /Sequence --></TD></TR>
</TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR>
</TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>APPLIED
DNA SCIENCES, INC.</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>June 30, 2015</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>(unaudited)</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0"><FONT STYLE="font-size: 10pt"><B>NOTE E &ndash; WARRANT LIABILITY</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">On December 16, 2013,
Crede CG III, Ltd (&ldquo;Crede&rdquo;) effected the cashless exercise of 178,253 Series A Warrants and 116,667 Series B Warrants.
At December 16, 2013 (date of exercise), the Company determined the fair value of the Warrants to be $2,455,042 using the Binomial
Lattice model with the following assumptions: fair value of the Company&rsquo;s common stock $10.80 per share; dividend yield
0%; expected term: 4.55 years; risk free interest rate: 1.55%; expected volatility of: 118.89%; and an exercise price of $14.59.
The change in fair value of the warrant liability on the day of exercise amounted to a loss of $1,288,752 and was included in
the other income (expense). Upon exercise, the fair value of the Series A Warrants and 116,667 of the Series B Warrants were reclassified
to equity.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">The Series A and Series
B Warrants were classified as liabilities on the issuance date due to certain provisions contained in the warrant agreements,
which may cause an adjustment to the conversion rate or the number of warrants outstanding.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">The change in fair
value of the warrant liability resulted in a gain of $515,543 and a loss of $1,663,316 for the three and nine month periods ended
June 30, 2014, respectively.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">On October 28, 2014,
the Company entered into a warrant repurchase option agreement with Crede, pursuant to which it had the option to purchase between
50% and 100% of Crede&rsquo;s Series B Warrant (then exercisable for 387,621 shares of common stock) at a purchase price
of $10.55 per share underlying such Series B Warrant (up to an aggregate purchase price of $4,091,000 for all of the Series B
Warrant). On November 21, 2014, the Company exercised its option and repurchased 100% of Crede&rsquo;s Series B Warrant for an
aggregate purchase price of approximately $4,091,000.&nbsp;&nbsp;The change in fair value of the warrant liability on the day
of repurchase amounted to a loss of $2,994,540 and was included in other income (expense) for the nine month period ended June
30, 2015.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0"><FONT STYLE="font-size: 10pt"><B>NOTE F &ndash; RELATED PARTY TRANSACTIONS</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">As discussed in Note
D, on September 11, 2014, the Company issued and sold a promissory note in the aggregate principal amount of $1,000,000 and bearing
interest at a rate of 12.5% per annum to Dr. James A. Hayward, the Company&rsquo;s President, Chairman and Chief Executive Officer.
On November 11, 2014, Dr. Hayward agreed to exchange for cancellation of his Note (including principal and accrued interest thereon)
for 315,171 shares of common stock and warrants to purchase 315,171 shares of common stock, at a combined price of $3.25, the
aggregate public offering price of common stock and warrants issued in the Company&rsquo;s underwritten public offering which
closed on November 20, 2014.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">As discussed in Note
G, the Company&rsquo;s Chief Executive Officer and an affiliated company of a member of the Company&rsquo;s board of directors
participated in the Company&rsquo;s November 20, 2014 underwritten public offering.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 12; Value: 8 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->9<!-- Field: /Sequence --></TD></TR>
</TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR>
</TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 12pt/12pt Times New Roman; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>APPLIED DNA SCIENCES,
INC.</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>June 30, 2015</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>(unaudited)</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0"><FONT STYLE="font-size: 10pt"><B>NOTE G - CAPITAL STOCK</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">On October 24, 2014,
the Company filed a Third Certificate of Amendment of its Certificate of Incorporation with the Secretary of State of the State
of Delaware that effected a one-for-60 (1:60) reverse stock split of its common stock, par value $.001 per share, and a decrease
in its authorized common stock, from 1,350,000,000 to 500,000,000 shares, effective October 29, 2014. All warrant, option, share,
and per share information in the condensed consolidated financial statements gives retroactive effect to the one-for-60 reverse
stock split that was effected on October 29, 2014. <I>&nbsp;</I> In addition, the Company is authorized to issue 10,000,000 shares
of preferred stock with a $0.001 par value per share. As of June 30, 2015 and September 30, 2014, there were 21,482,202 and 13,935,954
shares of common stock issued and outstanding, respectively.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">On November 20, 2014,
the Company closed its underwritten public offering of 2,800,000 shares of common stock and warrants to purchase up to an aggregate
of 2,800,000 shares of common stock for gross proceeds of $9.1 million before deducting underwriting discounts and offering expenses.
The Company utilized $4,091,000 of the gross proceeds to repurchase the remaining Series B Warrants from Crede, as discussed in
Note E. The combined price for each share of common stock and warrant was $3.25. The warrants may be exercised for a period of
five years and have an exercise price of $3.50 per share. In connection with the offering, the Company granted to the underwriters
a 45-day option to purchase up to 420,000 additional shares of common stock at $3.24 per share and/or up to 420,000 additional
warrants at $0.01 per share to cover over-allotments, if any. The Company&rsquo;s Chief Executive Officer and an affiliated company
of a member of the Company&rsquo;s board of directors participated in this underwritten public offering. The Company&rsquo;s common
stock and warrants are listed on the Nasdaq Capital Market under the symbols &ldquo;APDN&rdquo; and &ldquo;APDNW&rdquo;, respectively.
On December 19, 2014, the Company closed on the underwriters&rsquo; exercise of its over-allotment option of 416,850 warrants
for gross proceeds of $4,169 and on December 30, 2014, the Company closed on the underwriters&rsquo; additional exercise of its
over-allotment option of 52,000 shares of common stock for gross proceeds of $168,400.&nbsp;&nbsp;The total number of common stock
and warrants issued under this offering, including the exercise of the over-allotment option was 2,852,000 and 3,216,850, respectively.&nbsp;&nbsp;The
gross proceeds to the Company was $9.3 million and net proceeds after deducting underwriting discounts, offering expenses and
the repurchase of the remaining Series B Warrants from Crede was approximately $3.69 million.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">In connection with
the closing of this underwritten public offering, on November 20, 2014, the Company granted 128,800 warrants to purchase common
stock to its underwriters as partial compensation. These warrants have an exercise price of $3.73 (115% of the public offering
price) and expire on November 14, 2019.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">During the three and
nine month periods ended June 30, 2015, the Company granted 15,000 and 22,500 shares of common stock to a consultant for a total
expense of approximately $47,750 and $64,426, respectively.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt/normal Calibri; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman">On April 1, 2015,
the Company closed its underwritten public offering of 4,011,000 shares of common stock and warrants to purchase up to an aggregate
of 1,604,400 shares of common stock, at $3.00 ($2.99 for one share of common stock and $0.01 for one warrant) (&ldquo;combined
offering price&rdquo;), including 191,000 shares and 76,400 warrants sold pursuant to the partial exercise of the underwriters&rsquo;
over-allotment option. The warrants have a per share exercise price of $3.50, are exercisable immediately, and expire on November
20, 2019. The gross proceeds to the Company from this offering, including the partial exercise of the over-allotment option but
before deducting the underwriting discount and offering expenses, is $12.0 million</FONT><FONT STYLE="font-size: 10pt">.<FONT STYLE="font-family: Times New Roman">
In connection with the offering, the Company granted to the underwriters a 45-day option to purchase up to 573,000 additional
shares of common stock and up to 229,200 additional warrants to cover over-allotments, if any. On April 30, 2015, the Company
closed on the underwriters&rsquo; exercise of its over-allotment option of 87,000 shares of common stock and 152,800 warrants
for gross proceeds of $263,950 .</FONT></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">In connection with
the closing of this underwritten public offering, as partial compensation, on April 1, 2015, the Company granted up to 163,720
warrants to purchase common stock to its underwriters. These warrants have an exercise price of $3.44 (115% of the public offering
price) and expire on March 27, 2020.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">See Note D for the
common stock and warrants issued in connection with the conversion of the promissory notes.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>NOTE H - STOCK OPTIONS
AND WARRANTS</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><U>Warrants</U></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">The following table
summarizes the changes in warrants outstanding and the related prices for the shares of common stock issued to non-employees of
the Company. These warrants were granted in lieu of cash for services performed or financing expenses in connection with the sale
of common stock.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">Transactions involving
warrants (see Notes D, E and G) are summarized as follows:</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="width: 80%; border-collapse: collapse; font-size: 11pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 1.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 1.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; padding-right: 1.8pt; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Number
    of</FONT><FONT STYLE="font-size: 10pt"><BR>
    <FONT STYLE="font-family: Arial">&nbsp;</FONT><FONT STYLE="font-family: Times New Roman">Shares</FONT></FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; padding-right: 1.8pt; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Weighted</FONT><FONT STYLE="font-size: 10pt"><BR>
    <FONT STYLE="font-family: Arial">&nbsp;</FONT><FONT STYLE="font-family: Times New Roman">Average <BR> Exercise</FONT><BR>
    <FONT STYLE="font-family: Arial">&nbsp;</FONT><FONT STYLE="font-family: Times New Roman">Price Per <BR> Share</FONT></FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: azure">
    <TD STYLE="width: 48%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Balance at October
    1, 2014</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 14%; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">945,166</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 2%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">$</FONT></TD>
    <TD STYLE="width: 11%; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">9.59</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Granted</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">5,833,878</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">3.50</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: azure">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Exercised</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">(&mdash;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">)</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">(&mdash;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Cancelled
    or expired</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">(716,557</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">)</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">(11.30</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: azure">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Balance at June 30, 2015</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">6,062,487</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">$</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">3.53</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>

</TABLE>
<P STYLE="font: 10pt/normal Times New Roman; margin: 12pt 0 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 13; Value: 8 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->10<!-- Field: /Sequence --></TD></TR>
</TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR>
</TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: center; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>APPLIED DNA SCIENCES,
INC.</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>June 30, 2015</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>(unaudited)</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>NOTE H - STOCK OPTIONS
AND WARRANTS (continued)</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><U>Employee Stock Options</U></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">In 2005, the Board
of Directors and the holders of a majority of the outstanding shares of common stock approved the 2005 Incentive Stock Plan (the
&ldquo;Incentive Plan&rdquo;). In 2007, 2008 and 2012, the Board of Directors and holders of a majority of the outstanding shares
of common stock approved various increases in the number of shares of common stock that can be issued as stock awards and stock
options thereunder to an aggregate of 5,833,334 shares and the number of shares of common stock that can be covered by awards
made to any participant in any calendar year to 833,334 shares.&nbsp;&nbsp;On January 21, 2015, the Board of Directors approved
an amendment to the Incentive Plan, which was approved by shareholders on June 16, 2015.&nbsp;&nbsp;The amendment increases the
number of shares of common stock that can be issued as stock awards and stock options thereunder to an aggregate of 8,333,333.&nbsp;&nbsp;The
amendment also extends the Incentive Plan&rsquo;s expiration date to January 25, 2025.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">The Incentive Plan
is designed to retain directors, executives, and selected employees and consultants by rewarding them for making contributions
to our success with an award of options to purchase shares of common stock and an award of shares of common stock. As of June
30, 2015 a total of 233,752 shares have been issued and options to purchase 4,132,475 shares have been granted under the 2005
Incentive Stock Plan.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">Transactions involving
stock options issued to employees are summarized as follows:</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="width: 80%; border-collapse: collapse; font-size: 11pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 33%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 13%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 10%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 2%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 4%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 10%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; padding-right: 1.8pt; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Number
    of</FONT><FONT STYLE="font-size: 10pt"><BR>
    <FONT STYLE="font-family: Times New Roman">Shares</FONT></FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid"><P STYLE="font: 10pt/normal Times New Roman; margin: 0 1.8pt 0 0; text-align: center"><FONT STYLE="font-size: 10pt">Weighted
        <BR>Average</FONT></P>
        <P STYLE="font: 10pt/normal Times New Roman; margin: 0 1.8pt 0 0; text-align: center"><FONT STYLE="font-size: 10pt">Exercise</FONT></P>
        <P STYLE="font: 10pt/normal Times New Roman; margin: 0 1.8pt 0 0; text-align: center"><FONT STYLE="font-size: 10pt">Price
        Per</FONT></P>
        <P STYLE="font: 10pt/normal Times New Roman; margin: 0 1.8pt 0 0; text-align: center"><FONT STYLE="font-size: 10pt">Share</FONT></P></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid"><P STYLE="font: 10pt/normal Times New Roman; margin: 0 1.8pt 0 0; text-align: center"><FONT STYLE="font-size: 10pt">Aggregate</FONT></P>
        <P STYLE="font: 10pt/normal Times New Roman; margin: 0 1.8pt 0 0; text-align: center"><FONT STYLE="font-size: 10pt">Intrinsic</FONT></P>
        <P STYLE="font: 10pt/normal Times New Roman; margin: 0 1.8pt 0 0; text-align: center"><FONT STYLE="font-size: 10pt">Value</FONT></P></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: azure">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Outstanding at October 1, 2014</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">2,909,046</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">$</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">4.74</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Granted</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">950,094</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">2.85</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: azure">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Exercised</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">&mdash;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">&mdash;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Cancelled or expired</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">(402,151)</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">(3.01)</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: azure">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Outstanding at June 30, 2015</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">3,456,989</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">$</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">4.42</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Vested at June 30, 2015</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">2,494,098</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">$</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">4.13</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">$</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">0.18</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: azure">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Non-vested at June 30, 2015</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">962,891</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">$</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">0.12</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>

</TABLE>
<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal inherit; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;For
the three and nine-month periods ended June 30, 2015, the Company issued 49,585 and 950,094, options to employees, consultants
and non-employee board of director members, respectively. Included in these grants for the nine month period was 450,000 options
granted to executives.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 14; Value: 8 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->11<!-- Field: /Sequence --></TD></TR>
</TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR>
</TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>APPLIED DNA SCIENCES,
INC.</B><BR>
<B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>June 30, 2015</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>(unaudited)</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>NOTE H - STOCK OPTIONS
AND WARRANTS (continued)</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><U>Employee Stock Options</U>,
continued</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">The fair value of options
granted during the three and nine month periods ended June 30, 2015 was determined using the Black Scholes Option Pricing Model
with the following weighted average assumptions:</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="width: 80%; border-collapse: collapse; font-size: 12pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 45%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 13%; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 13%; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 2px solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2px solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center; border-bottom: Black 2px solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Three<BR>
    Months<BR>
    Ended<BR>
    June 30, <BR>
2015</FONT></TD>
    <TD STYLE="text-align: center; border-bottom: Black 2px solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center; border-bottom: Black 2px solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Nine<BR>
    Months<BR>
    Ended<BR>
    June 30, <BR>
2015</FONT></TD>
    <TD STYLE="border-bottom: Black 2px solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: Azure">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Stock price</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2.60</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2.85</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Exercise price</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2.60</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2.85</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: Azure">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Expected term, years</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">3.75</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">4.85</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Dividend yield</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&mdash;</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">%</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&mdash;</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: Azure">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Volatility</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">118</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">%</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">132</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Risk free rate</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">1.13</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">%</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">1.56</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">%</FONT></TD></TR>

</TABLE>
<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">The Company recorded
$1,015,361(including $544,113 for stock option modifications) and $404,507 as stock compensation expense for the three month periods
ended June 30, 2015 and 2014, respectively, and $3,531,205 (including $673,176 for stock option modifications) and $1,717,837
for the nine month periods ended June 30, 2015 and 2014, respectively for the vesting portion of all options. As of June 30, 2015,
unrecorded compensation cost related to non-vested awards was $2,749,586 which is expected to be recognized over a weighted average
period of approximately 2.21 years.&nbsp;&nbsp;The weighted average grant date fair value for options granted during the three
and nine month periods ended June 30, 2015 was $69,430 and $1,076,502, respectively.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 15; Value: 8 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->12<!-- Field: /Sequence --></TD></TR>
</TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR>
</TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 12pt/12pt Times New Roman; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>APPLIED DNA SCIENCES,
INC.</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>June 30, 2015</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>(unaudited)</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>NOTE I - COMMITMENTS
AND CONTINGENCIES</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><U>Operating Leases</U></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">The Company leases
office space under an operating lease in Stony Brook, New York for its corporate headquarters. The lease is for a 30,000 square
foot building. The term of the lease commenced on June 15, 2013 and expires on May 31, 2016, with the option to extend the lease
for two additional three-year periods. The base rent during the initial lease term is $449,142 per annum. The Company also has
operating leases for a laboratory in Huddersfield, England, which is currently inactive and Calverton, New York. The Huddersfield
lease was terminated effective July 31, 2015. The Calverton lease was from February 1, 2014 through October 31, 2014<B>,</B> with
the option to renew for additional one year periods.&nbsp;&nbsp;The Calverton lease is currently on a month to month basis.&nbsp;&nbsp;Total rent expense for the three and nine month periods ended June
30, 2015 was $124,504 and $373,772, respectively. Total rent expense for the three and nine month periods ended June 30, 2014
were $125,268 and $380,251, respectively.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><U>Employment Agreement</U></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">The Company has an
employment agreement with the Chief Executive Officer. Effective June 21, 2014, the Chief Executive Officer&rsquo;s annual salary
was voluntarily reduced by $50,000. This salary reduction will be accrued and repaid when the Company reaches $3,000,000 in sales
for two consecutive quarters or the Company has net income at the end of any fiscal year.&nbsp;&nbsp;Effective January 1, 2015,
the Chief Executive Officer&rsquo;s annual salary was voluntarily reduced by an additional $50,000.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><U>Litigation</U></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">From time to time,
the Company may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. When
the Company is aware of a claim or potential claim, it assesses the likelihood of any loss or exposure. If it is probable that
a loss will result and the amount of the loss can be reasonably estimated, the Company will record a liability for the loss. In
addition to the estimated loss, the recorded liability includes probable and estimable legal costs associated with the claim or
potential claim. Litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from
time to time that may harm the Company&rsquo;s business.&nbsp;There is no pending litigation involving the Company at this time.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 16; Value: 8 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->13<!-- Field: /Sequence --></TD></TR>
</TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR>
</TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 12pt/12pt Times New Roman; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>


<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>APPLIED DNA SCIENCES,
INC.</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>June 30, 2015</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>(unaudited)</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>NOTE J - FAIR VALUE</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">The carrying value
of cash, accounts receivable, accounts payable and accrued liabilities approximate estimated fair values because of their short
maturities.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">The carrying value
of the warrant liability is determined using the Binomial Lattice option pricing model as described in Note A. Certain assumptions
used in the calculation of the warrant liability represent Level-3 unobservable inputs. The Company did not have any assets or
liabilities categorized as Level 1, 2 or 3 as of June 30, 2015.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">The following table
summarizes the activity of Level 3 inputs measured on a recurring basis:</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="width: 90%; border-collapse: collapse; font-size: 11pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 1.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 1.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Fair Value Measurements of Common
    Stock Warrants Using Significant Unobservable Inputs (Level 3)</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6"><P STYLE="font: 10pt/normal Times New Roman; margin: 0 5.8pt 0 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>Nine
        Months Ended</B></FONT></P>
        <P STYLE="font: 10pt/normal Times New Roman; margin: 0 5.8pt 0 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>June
        30,</B></FONT></P></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; padding-right: 1.8pt; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman"><B>2015</B></FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; padding-right: 1.8pt; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman"><B>2014</B></FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: Azure">
    <TD STYLE="width: 58%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Balance
    at October 1, 2014 and 2013</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">$</FONT></TD>
    <TD STYLE="width: 13%; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">1,096,412</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">$</FONT></TD>
    <TD STYLE="width: 13%; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">2,643,449</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Adjustment
    resulting from change in fair value (a)</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">2,994,540</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">1,663,316</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: Azure">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Removal of warrant upon repurchase</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">(4,090,952</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">)</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">&mdash;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Reclassification to equity upon
    exercise</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">&mdash;</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">(2,455,042</FONT></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: Azure">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Balance
    at June 30,</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">$</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">&mdash;</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">$</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">1,851,723</FONT></TD>
    <TD STYLE="border-bottom: black 4px double; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>

</TABLE>
<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">(a) <I>Adjustment resulting
from change in fair value</I> is the amount of total gains or losses for the period attributable to the change in unrealized gains
or losses relating to warrant liabilities held at the reporting date and realized gains or losses at the date of exercise. The
gain or loss is recorded in change in fair value of warrant liability in the accompanying condensed consolidated statements of
operations.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 17; Value: 8 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->14<!-- Field: /Sequence --></TD></TR>
</TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR>
</TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 12pt/12pt Times New Roman; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>



<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><A NAME="t82897a003_v1"></A>Item 2. - Management&rsquo;s
Discussion and Analysis of Financial Condition and Results of Operations.</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">The following discussion
should be read in conjunction with our Unaudited Condensed Consolidated Financial Statements and Notes thereto, included elsewhere
within this report. The Quarterly Report contains forward-looking statements, including statements using terminology such as &ldquo;can&rdquo;,
&ldquo;may&rdquo;, &ldquo;believe&rdquo;, &ldquo;designed to&rdquo;, &ldquo;will&rdquo;, &ldquo;expect&rdquo;, &ldquo;plan&rdquo;,
&ldquo;anticipate&rdquo;, &ldquo;estimate&rdquo;, &ldquo;potential&rdquo; or &ldquo;continue&rdquo;, or the negative thereof or
other comparable terminology regarding beliefs, plans, expectations or intentions regarding the future. You should read statements
that contain these words carefully because they:</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 11pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">&#9679;</FONT></TD>
    <TD STYLE="width: 97%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">discuss our future
    expectations;</FONT></TD></TR>

</TABLE>
<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 11pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">&#9679;</FONT></TD>
    <TD STYLE="width: 97%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">contain projections
    of our future results of operations or of our financial condition; and</FONT></TD></TR>

</TABLE>
<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 11pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">&#9679;</FONT></TD>
    <TD STYLE="width: 97%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">state other &ldquo;forward-looking&rdquo;
    information.</FONT></TD></TR>

</TABLE>
<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">We believe it is important
to communicate our expectations. However, forward looking statements involve risks and uncertainties and our actual results and
the timing of certain events could differ materially from those discussed in forward-looking statements as a result of certain
factors, including those set forth under &ldquo;Risk Factors,&rdquo; &ldquo;Business&rdquo; and elsewhere in our Annual Report
on Form 10-K, as amended, for the fiscal year ended September 30, 2014. All forward-looking statements and risk factors included
in this document are made as of the date hereof, based on information available to us as of the date thereof, and we assume no
obligations to update any forward-looking statement or risk factor, unless we are required to do so by law.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>Introduction</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">Using biotechnology
as a forensic foundation, we provide botanical-DNA based security and authentication solutions and services that can help protect
products, brands, entire supply chains, and intellectual property of companies, governments and consumers from theft, counterfeiting,
fraud, and diversion. Whether working in supply chain security, brand protection or law enforcement applications, it is our goal
to help establish secure flourishing environments that foster quality, integrity and success.&nbsp;With secure taggants, high-resolution
DNA authentication, and comprehensive reporting, our botanical DNA-based technologies are designed to deliver what we believe
to be the greatest levels of security, deterrence and legal recourse strength.&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>SigNature</I></B>&reg;
<B><I>DNA</I></B>. SigNature DNA is our platform ingredient, at the core of all our security solutions. From application to application,
the vehicle which carries SigNature DNA is custom designed to suit the application. Exhaustive development efforts have yielded
a flexible and durable marker with all the accuracy provided by nature.&nbsp;SigNature DNA is based on full, double stranded plant
DNA, and provides forensic power and protection for a wide array of applications. Highly secure, robust, and durable, SigNature
DNA markers are an ingredient that can be used to fortify brand protection efforts; mark, track and convict criminals; and strengthen
supply chain security.&nbsp;Custom DNA sequences can be embedded into a wide range of host carriers including ink, varnish, thread,
laminates and metal coatings. These items can then be tested for the presence of SigNature DNA markers through optical screening
or a forensic level authentication. Hundreds of millions of SigNature DNA marks now exist in the public domain on items ranging
from consumer product packaging to microcircuits to guitars. We believe that no marks have ever been copied.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">SigNature DNA, SigNature&reg;
T DNA, fiberTyping&reg;, DNAnet&reg;, Sentry, digitalDNA&reg;, and SmokeCloak&reg; DNA, our principal anti-counterfeiting
and product authentication solutions and our Counterfeit Prevention Authentication Program can be used in numerous industries,
including, but not limited to microcircuits and other electronics, cyber security, cash-in-transit (transport and storage
of banknotes), textiles and apparel, automotive, printing and packaging, homeland security,&nbsp;&nbsp;law enforcement and home
asset marking, identity cards and other secure documents, industrial materials,&nbsp;&nbsp;agrochemicals, pharmaceuticals, consumer
products, food and beverage, sports memorabilia, fine wine, and art and collectibles.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>SigNature T DNA
and fiberTyping</I></B>.&nbsp;There is one common thread that runs through the global textile industry: success breeds counterfeiting
and diversion. SigNature T botanical DNA markers are used for brand protection efforts and raw material source compliance programs.
In situations where natural fibers like cotton or wool are utilized, we can isolate and type inherent DNA, making it possible
to verify the presence of specified materials. This fiberTyping process provides DNA verification to help manufacturers, retailers
and brand owners ensure quality, safety and compliance of their products.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>DNAnet.</I></B>
Recognizing that DNA-based evidence is the cornerstone of the modern era of law enforcement, we have created what we believe to
be an effective crime fighting tool: DNAnet, a botanical DNA marker that can be used to definitively link evidence and offenders
to specific crime scenes and help return stolen or lost property to its rightful owner. As the crime is investigated, the fluorescing
DNA mark can assist police in linking the offender and stolen items to a specific crime scene, creating a greater ability to identify
and convict.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>


<P STYLE="font: 11pt/115% Calibri; margin: 0 0 10pt; background-color: white; text-align: justify"><FONT STYLE="font: 10pt Times New Roman"><B><I>Sentry.
</I></B>Sentry intruder tagging systems help to expand and strengthen any security effort by providing a means of directly linking
criminals to crimes. Each unit is designed to be unique to each store, warehouse, or sting operation, allowing the police and
prosecutors to link criminals to the crimes. In the event of a crime, the fleeing offender is sprayed with an indelible,
fluorescing DNA taggant. As the crime is investigated, the fluorescing DNA mark can assist police in linking the offender and
stolen items to a specific crime scene, creating a greater ability to identify and convict.</FONT><FONT STYLE="font: 10pt Arial">
</FONT><FONT STYLE="font: 10pt Times New Roman">Whether deployed as an offender spray or fog in a retail location or a degradation
dye in cash handling boxes, DNA markers facilitate conviction, and establish a heightened level of deterrence. While any commercial/retail
establishment could benefit from the addition of a Sentry system, ideal areas of use include: banks, ATMs, pharmacies, jewelry
stores, convenience stores, pawn brokers and gun shops.&nbsp;</FONT></P>

<P STYLE="font: 10pt/115% Times New Roman; margin: 0 0 10pt; background-color: white; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>digitalDNA.
</I></B>digitalDNA is a security solution that utilizes the flexibility of mobile communications, the instant accessibility
of secure, cloud-based data, and the certainty of DNA to make item tracking and authentication fast, easy and definitive, while
providing the opportunity to create a new customer interface. digitalDNA begins with a DNA-secured form of the QR (&ldquo;quick
read&rdquo;) code or other two dimensional code. A unique identification code is created for each article, and represented in
an easy-to-read QR style barcode. The product uses forensic authentication of a botanical DNA marker, embedded within a secure
QR code, and physically included within the ink used to digitally print the code. Should there ever be a question about the validity
of a digitalDNA code, a laboratory-based analysis can be conducted to determine authenticity. Scanning bar code item numbers on
marked goods enables individuals to post or access information about a product such as its geo-location, original image or associated
documentation. Consumers may take advantage of marketing information supplied by brand owners.&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; background-color: white; text-align: justify"><FONT STYLE="font-size: 10pt">The
secure cloud application also offers back-end features including DNA custody management, forensic sample submission, CODA (certificate
of DNA authentication) issuance, customer account administration, order placement, status tracking and reporting, and online training.
The cloud-based platform is designed to be customizable for the particular attributes of each customer&rsquo;s business and conforms
to strict security standards for ISO, PCI, and Federal Information Processing Standards. This digitalDNA platform is designed
as the data management and reporting hub for devices for DNA on-site authentication and optical mark in-field validation. Market-specific
configurations have been demonstrated to businesses in textiles supply chain, printing/publishing, art and collectibles and law
enforcement.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>SmokeCloak DNA</I></B>.
&nbsp;When deployed in pharmacies, banks, commercial or retail locations, SmokeCloak DNA helps protect staff, customers and assets.
A thick and disorienting fog wards off offenders and deposits a unique, location-specific DNA marker on skin, clothing and stolen
items. The combination of fog and DNA technologies has no negative side effects and provides a strong crime fighting and loss
prevention tool.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>Counterfeit Prevention
Authentication Program.</I></B> Our turnkey&nbsp;program for electronics, military, commercial, and aerospace contractors called
the Counterfeit Prevention Authentication Program&nbsp;(&ldquo;CPA&rdquo; Program) empowers&nbsp;end-users to verify the originality
or provenance of parts which have been marked by their suppliers with our SigNature DNA Markers.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 18; Value: 8 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->15<!-- Field: /Sequence --></TD></TR>
</TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR>
</TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 11pt/115% Calibri; margin: 0 0 0pt; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>



<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>Plan of Operations</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>General</I></B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">To date, the
substantial portion of our revenues have been generated from sales of our SigNature DNA platform and fiberTyping, our
principal anti-counterfeiting and product authentication solutions. We expect to continue to grow revenues from sales of our
SigNature DNA platform ingredient, including our Signature T DNA, fibertyping, DNAnet, Sentry, digitalDNA, and SmokeCloakDNA
offerings and the Counterfeit Prevention Authentication Program. We have limited sources of liquidity. We have developed or
are currently attempting to develop business in the following target markets: microcircuits and other electronics,
cash-in-transit (transport and storage of banknotes), textiles and apparel, automotive, printing and packaging, homeland
security, law enforcement and home asset marking, identity cards and other secure documents, industrial materials,
agrochemical, pharmaceuticals, consumer products, food and beverage, sports memorabilia, fine wine, and art and collectibles.
Our developments in the textile and apparel authentication, semiconductor authentication, and cash-in-transit have
contributed to the increase in our revenues. We intend to pursue both domestic and international sales opportunities in each
of these vertical markets.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>Critical Accounting
Policies</I></B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">Financial Reporting
Release No. 60, published by the SEC, recommends that all companies include a discussion of critical accounting policies used
in the preparation of their financial statements. While all these significant accounting policies impact our financial condition
and results of operations, we view certain of these policies as critical. Policies determined to be critical are those policies
that have the most significant impact on our consolidated financial statements and require management to use a greater degree
of judgment and estimates. Actual results may differ from those estimates.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">We believe that given
current facts and circumstances, it is unlikely that applying any other reasonable judgments or estimate methodologies would cause
a material effect on our condensed consolidated results of operations, financial position or liquidity for the periods presented
in this report.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">The accounting policies
identified as critical are as follows:</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 11pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">&#9679;</FONT></TD>
    <TD STYLE="width: 97%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Revenue recognition;</FONT></TD></TR>

</TABLE>
<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 11pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">&#9679;</FONT></TD>
    <TD STYLE="width: 97%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Equity based compensation;
    and</FONT></TD></TR>

</TABLE>
<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 11pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">&#9679;</FONT></TD>
    <TD STYLE="width: 97%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Fair value of financial
    instruments</FONT></TD></TR>

</TABLE>
<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>Revenue Recognition</I></B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">We recognize revenue
in accordance with Accounting Standards Codification (&ldquo;ASC&rdquo;) 605, Revenue Recognition (&ldquo;ASC 605&rdquo;). ASC
605 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement
exists; (2) delivery has occurred and/or service has been performed; (3) the selling price is fixed and determinable; and (4)
collectability is reasonably assured. Determination of criteria (3) and (4) are based on management&rsquo;s judgments regarding
the fixed nature of the selling prices of the products delivered or services provided and the collectability of those amounts.
Provisions for allowances and other adjustments are provided for in the same period the related sales are recorded. We defer any
revenue for which the product has not been delivered, service has not been provided, or is subject to refund until such time that
we and the customer jointly determine that the product has been delivered, the service has been provided, or no refund will be
required. At June 30, 2015 and September 30, 2014, we recorded deferred revenue of $204,863 and $583,362, respectively.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 19; Value: 8 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->16<!-- Field: /Sequence --></TD></TR>
</TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR>
</TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 12pt/12pt Times New Roman; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">Revenue arrangements
with multiple components are divided into separate units of accounting if certain criteria are met, including whether the delivered
component has stand-alone value to the customer. Consideration received is allocated among the separate units of accounting based
on their respective selling prices. The selling price for each unit is based on vendor-specific objective evidence, or VSOE, if
available, third party evidence if VSOE is not available, or estimated selling price if neither VSOE nor third party is available.
The applicable revenue recognition criteria are then applied to each of the units.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">Revenue for government
contract awards, which supports our development efforts on specific projects, is recognized as milestones are achieved as per
the contract. We recognized revenue of approximately $657,708 and $1,919,031 from these contract awards during the three
and nine month periods ended June 30, 2015, respectively, and $0 and $50,000 for the three and nine month periods ended June 30,
2014, respectively.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 20; Value: 8 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->17<!-- Field: /Sequence --></TD></TR>
</TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR>
</TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 12pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0"><FONT STYLE="font-size: 10pt"><B><I>Equity Based Compensation</I></B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">We follow ASC subtopic
718, Compensation (&ldquo;ASC 718&rdquo;) which requires all share-based payments to employees, including grants of employee stock
options, to be recognized in the statement of operations based on their fair values.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">We account for stock
based compensation awards issued to non-employees for services, as prescribed by ASC 718-10, at either the fair value of the services
rendered or the instruments issued in exchange for such services, whichever is more readily determinable, using the measurement
date guidelines enumerated in&nbsp;ASC 505-50.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>Fair Value of
Financial Instruments</I></B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">The valuation techniques
utilized are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources,
while unobservable inputs reflect internal market assumptions. These two types of inputs create the following fair value hierarchy:</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">Level 1 &ndash; Quoted
prices in active markets for identical assets or liabilities.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">Level 2 &ndash; Observable
inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not
active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of
the related asset or liabilities.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">Level 3 &ndash; Unobservable
inputs that are supported by little or no market activity and that are significant to the fair value of assets or liabilities.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">The Company utilizes
observable market inputs (quoted market prices) when measuring fair value whenever possible.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">For fair value measurements
categorized within Level 3 of the fair value hierarchy, the Company&rsquo;s accounting and finance department, who report to the
Chief Financial Officer, determine its valuation policies and procedures. The development and determination of the unobservable
inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company&rsquo;s accounting
and finance department and are approved by the Chief Financial Officer.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>Use of Estimates</I></B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">In preparing financial
statements in conformity with accounting principles generally accepted in the United States of America, management is required
to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent
assets and liabilities at the date of the financial statements and revenue and expenses during the reporting period. Actual results
could differ from those estimates.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<!-- Field: Page; Sequence: 21; Value: 8 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->18<!-- Field: /Sequence --></TD></TR>
</TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR>
</TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 12pt/12pt Times New Roman; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0"><FONT STYLE="font-size: 10pt"><B>Comparison of Results of Operations for
the Three Month Periods Ended June 30, 2015 and 2014</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>Revenues</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">For the three month
periods ended June 30, 2015 and 2014, we generated $2,267,671 and $841,197, respectively, in revenues. The increase in revenues
in the three month period ended June 30, 2015 of $1,426,474 or 170% was primarily from an increase in revenue related to sales
to the textile industry for protecting cotton supply chains of $1,200,000 and revenue from government contract awards of approximately
$658,000.&nbsp;&nbsp;&nbsp;These increases were offset by a decrease in revenue from suppliers of the United States Defense</FONT>
<FONT STYLE="font-size: 10pt">Logistics Agency (&ldquo;DLA&rdquo;) due to the consolidation of these individual contracts to one
contract with DLA.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>Costs and Expenses</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>Selling, General
and Administrative</I></B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">Selling, general and
administrative expenses for the three month period ended June 30, 2015 increased by $560,003 or 19% from $2,948,452 for the three
month period ended June 30, 2014 to $3,508,455 for the three month period ended June 30, 2015. The increase is attributable to
an increase in stock based compensation expense of $610,855, primarily associated with stock option modifications resulting from
the extension of certain stock options offset by a decrease of approximately $210,000 in legal fees as a result of the court&rsquo;s
dismissal of the SmartWater Limited litigation against us.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>Research and
Development</I></B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">Research and development
expenses increased to $310,093 for the three month period ended June 30, 2015 from $266,331 for the three month period ended June
30, 2014, an increase of $43,762 or 16%.&nbsp; This increase is due to development costs incurred in relation to the two government
contracts offset by capitalized costs for the development of infield readers.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>Depreciation
and Amortization</I></B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">In the three month
period ended June 30, 2015, depreciation and amortization increased by $7,915 from $113,424 for the three month period ended June
30, 2014 to $121,339 for the three month period ended June 30, 2014.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>Gain on Change
in Fair Value of Warrant Liability</I></B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">Gain from change in
fair value of warrant liability during the three month period ended June 30, 2014 was $515,543. This change in fair value related
to warrants containing certain reset provisions which required us to classify them as liabilities and mark the warrants to market
and record the change in fair value at each reporting period, and upon exercise as a non cash adjustment to our current period
operations. As discussed in Note E of the accompanying condensed consolidated financial statements, on November 21, 2014, we repurchased
the remaining outstanding Series B Warrants.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>Comparison of Results
of Operations for the Nine Month Periods Ended June 30, 2015 and 2014</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>Revenues</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0"><FONT STYLE="font-size: 10pt">For the nine month periods ended June, 30,
2015 and 2014, we generated $5,028,234 and $2,075,698, respectively, in revenues.&nbsp;&nbsp;The increase in revenues of $2,952,536
or 142% was primarily due to an increase in sales from two government contract awards of approximately $1.9 million as well as
revenues related to the set up, marking, and authentication of cotton of $1,372,500. These increases were
offset by a decrease in revenue from suppliers of the United States Defense Logistics Agency (&ldquo;DLA&rdquo;) due to the consolidation
of these individual contracts to one contract with DLA.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>Costs and Expenses</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>Selling, General
and Administrative</I></B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">Selling, general and
administrative expenses for the nine month period ended June 30, 2015 increased by $984,774 or 10% from $10,093,631 for the nine
month period ended June 30, 2014 to $11,078,405 for the nine month period ended June 30, 2015. The increase is primarily attributable
to an increase in stock based compensation expense of approximately $1,813,000, attributable to grants to employees that vested
immediately, as well as stock based compensation expense associated with stock option modifications resulting from the extension
of certain stock options, and to a lesser extent, the acceleration of vesting terms.&nbsp; This increase was primarily offset
by decreases in legal and consulting expenses. Legal expenses decreased by $783,000 due to the court&rsquo;s dismissal of the
SmartWater Limited litigation against us. Consulting fees decreased by $238,000 primarily due to shares of common stock issued
to a business strategy consultant in settlement of their fees during the nine month period ended June 30, 2014. The remaining
variance is due to increases in payroll offset by decreases in filing fees during the nine month period ended June 30, 2015.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>Research and
Development</I></B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">Research and development
expenses decreased to $961,745 for the nine month period ended June 30, 2015 from $1,085,416 for the nine month period ended June
30, 2014.&nbsp;&nbsp;The decrease of $123,671 or 11% is attributable to purchases for laboratory equipment associated with the
corporate headquarters in the prior year as well as components purchased relating to a pilot program for the marking of cotton
during the prior period, which we did not incur during the nine month period ended June 30, 2015. Also, during the nine month
period ended June 30, 2015, we started capitalizing the costs for the development of infield readers, which were being expensed
during the same period in the prior year.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 22; Value: 8 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->19<!-- Field: /Sequence --></TD></TR>
</TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR>
</TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt/0.05pt Times New Roman; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>Depreciation
and Amortization</I></B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">Depreciation and amortization
increased by $28,696 from $325,448 for the nine month period ended June 30, 2014 to $354,144 for the nine month period ended June
30, 2015. This increase is related to the depreciation incurred on the fixed asset additions during the period.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>Loss from Change
in Fair Value of Warrant Liability</I></B></FONT></P>

<P STYLE="font: 12pt/normal Times New Roman; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">Loss from change in
fair value of warrant liability during the nine month periods ended June 30, 2015 and 2014 was $2,994,540 and $1,663,316, respectively.&nbsp;&nbsp;These
losses relate to warrants containing certain reset provisions which required us to classify them as liabilities and mark the warrants
to market and record the change in fair value at each reporting period as a non-cash adjustment to our current period operations.&nbsp;&nbsp;As
discussed in Note E of the accompanying condensed consolidated financial statements, on November 21, 2014, we repurchased the
remaining outstanding Series B Warrants.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>Liquidity and Capital
Resources</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">Our liquidity needs
consist of our working capital requirements and research and development expenditure funding. As of June 30, 2015, we had working
capital of $11,394,253. For the nine month period ended June 30, 2015, we generated a net cash flow deficit from operating activities
of $5,226,713 consisting primarily of our loss of $11,385,102 net with non-cash adjustments of $354,144 in depreciation
and amortization charges, $3,531,205 for stock-based compensation, $2,994,540 change in fair value of warrant liability, $980,842
in loss on the conversion of promissory notes, $64,426 in common stock issued for consulting services and $21,750 of bad
debt expense. Additionally, we had a net increase in operating assets of $1,334,504 and a net decrease in operating liabilities
of $454,014. Cash used in investing activities was $459,471 for the purchase of property, plant and equipment and intangible assets.
Cash provided by financing activities was $15,023,466 in net proceeds from the sale of common stock and warrants related
to the underwritten public offering offset by the repurchase and cancellation of the remaining Series B Warrants.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 23; Value: 8 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->20<!-- Field: /Sequence --></TD></TR>
</TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR>
</TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 12pt/12pt Times New Roman; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">The Company has recurring
net losses, which have resulted in an accumulated deficit of $211,145,374 as of June 30, 2015. At June 30, 2015 the Company had
cash and cash equivalents of $10,730,144. The Company&rsquo;s current capital resources include cash and cash equivalents, accounts
receivable and prepaid expenses. Historically, the Company has financed its operations principally from the sale of equity securities.
On April 1, 2015, the Company closed on an underwritten public offering of common stock and warrants for gross proceeds of $12.0
million, before deducting underwriting discounts and offering expenses. Subsequently on April 30, 2015,<SUP> </SUP>the Company
closed on the over-allotment option of the underwritten public offering for additional gross proceeds of $263,950. In addition,
on November 20, 2014 the Company closed its underwritten public offering of common stock and warrants for gross proceeds of $9.3
million before deducting underwriting discounts and offering expenses. The Company utilized approximately $4,091,000 of the gross
proceeds to repurchase the remaining Series B Warrants from Crede, as discussed in Note E.&nbsp;&nbsp;The Company also raised
$2,156,264 in a private placement of common stock and warrants and $1,800,000 in promissory notes during the fiscal year ended
September 30, 2014, including $1,000,000 from a related party.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">The Company expects
to finance operations primarily through cash flows provided by operating activities provided that it will achieve a sufficient
level of future revenues. The Company estimates that its cash and cash equivalents are sufficient to fund operations for the next
twelve months.&nbsp;The Company will require additional funds to complete the continued development of its products, product manufacturing,
and to fund expected additional losses from operations, until revenues are sufficient to cover the Company&rsquo;s operating expenses.&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">We expect capital expenditures
to be less than $980,000 in fiscal 2015. Our primary investments will be in laboratory equipment to support prototyping, manufacturing,
our authentication services, and outside services for our detector and reader development.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">All of the real property
used in our business is leased under operating lease agreements.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>Subsequent Events</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">None.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>Product Research
and Development</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">We anticipate spending
approximately $1,500,000 for product research and development activities during the next twelve months.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>Acquisition of Plant
and Equipment and Other Assets</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">We do not anticipate
the sale of any material property, plant or equipment during the next twelve months.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 24; Value: 8 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->21<!-- Field: /Sequence --></TD></TR>
</TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR>
</TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 12pt/12pt Times New Roman; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>Number of Employees</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/115% Times New Roman; margin: 0 0 10pt"><FONT STYLE="font-size: 10pt">We currently have forty-nine full-time
employees and nine part-time employees, including four in management, eleven in research and development, one in Life Sciences,
two in forensics, six in quality assurance/compliance, four in finance and accounting, five in operations, thirteen in sales and
marketing, one in human resources, five in shared services, three in information services, one in investor relations, one legal
(Intellectual Property) and one in product development. We expect to increase our staffing dedicated to sales, production and
formulation. Marketing, salaries, and general overhead will be increased as necessary. However, cost containment measures have
been put in place to monitor expenses. In order for us to attract and retain quality personnel, we anticipate we will continue
to offer competitive salaries and benefits to future employees. We anticipate that it may become desirable to add additional full
and or part time employees to discharge certain critical functions during the next twelve months. This projected increase in personnel
is dependent upon our ability to generate revenues and obtain sources of financing. There is no guarantee that we will be successful
in raising the funds required or generating revenues sufficient to fund the projected increase in the number of employees. As
we continue to expand, we will incur additional costs for personnel. We continue to work with Insperity Inc. to help us manage
many of our back-end administrative human resources and payroll responsibilities.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>Off-Balance Sheet
Arrangements</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">We do not have any
off-balance sheet arrangements.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>Inflation</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">The effect of inflation
on our revenue and operating results was not significant.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><A NAME="t82897a004_v1"></A>Item 3</B>. <B>-
Quantitative and Qualitative Disclosures About Market Risk</B>.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">There&nbsp;&nbsp;have
been no material changes in our market risk as previously disclosed under Part I, Item 3 of our Annual Report on Form 10-K, for
the fiscal year ended September 30, 2014.&nbsp;&nbsp;Please refer to the Company&rsquo;s Annual Report on Form 10-K (filed with
the SEC on December 15, 2014, as amended on March 6, 2015) for the fiscal year ended September 30, 2014.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 25; Value: 8 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->22<!-- Field: /Sequence --></TD></TR>
</TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR>
</TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 12pt/12pt Times New Roman; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0"><FONT STYLE="font-size: 10pt"><B><A NAME="t82897a005_v1"></A>Item 4. - Controls and</B> <B>Procedures</B>.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>Evaluation of
Disclosure Controls and Procedures</I></B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">As of the end of the
period covered by this Quarterly Report on Form 10-Q, we conducted an evaluation, under the supervision and with the participation
of our management, including our Chief Executive Officer and Chief Financial Officer, of our disclosure controls and procedures
(as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on the evaluation of these disclosure controls and
procedures,&nbsp;the Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2015, our disclosure controls
and procedures were&nbsp;effective to ensure that the information required to be disclosed by us in reports that we file or submit
under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC&rsquo;s rules
and forms.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>Changes in Internal
Control over Financial Reporting</I></B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">During the fiscal quarter
ended June 30, 2015, there were no changes in our internal control over financial reporting that have materially affected, or
are reasonably likely to materially affect, our internal control over financial reporting.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<!-- Field: Page; Sequence: 26; Value: 8 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->23<!-- Field: /Sequence --></TD></TR>
</TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR>
</TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 12pt/12pt Times New Roman; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>



<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B><A NAME="t82897a006_v1"></A>Part II - Other Information</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><A NAME="t82897a007_v1"></A>Item 1. - Legal
Proceedings.</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">None.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><A NAME="t82897a008_v1"></A>Item 1A. &ndash;
Risk Factors.</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">Before deciding to
invest in us or to maintain or increase your investment, you should carefully consider the risks and uncertainties described in
the first two paragraphs under &ldquo;Item 2. Management&rsquo;s Discussion and Analysis of Financial Condition and Results of
Operations&rdquo;&nbsp;of this report and our other filings with the SEC, for the period ended September 30, 2014 and thereafter.
The risks and uncertainties described in this report are not the only ones facing us. Additional risks and uncertainties not presently
known to us or that we currently deem immaterial may also affect us. If any of these risks actually materialize, our business,
financial position, results of operations and cash flows could be adversely impacted. In that event, the market price of our common
stock could decline and you may lose all or part of your investment.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">During the&nbsp;three
month period ended June 30, 2015, there have been no material changes in our risk factors previously disclosed in our Annual Report
on Form 10-K (as amended March 6, 2015) for the fiscal year ended September 30, 2014.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><A NAME="t82897a009_v1"></A>Item 2. - Unregistered
Sales of Equity Securities and Use of Proceeds.</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">On February 27,
2015, we issued 2,500 shares of our common stock, and on each of March 31, 2015, April 30, 2015, May 29, 2015 and June 30, 2015
we issued 5,000 shares of our common stock, aggregating 22,500 shares, to a consultant for services provided pursuant to our 2005
Incentive Stock Plan. The shares were issued pursuant to an exemption from registration under the Securities Act of 1933, as amended,
by virtue of Section 4(a)(2) and/or Regulation D promulgated thereunder as a transaction not involving a public offering.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><A NAME="t82897a010_v1"></A>Item 3. &ndash;
Defaults Upon Senior Securities.</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">None.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><A NAME="t82897a011_v1"></A>Item 4. &ndash;
Mine Safety Disclosures.</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">None.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><A NAME="t82897a012_v1"></A>Item 5. &ndash;
Other Information.</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">None.&nbsp;</FONT></P>

<P STYLE="font: 12pt/12pt Times New Roman; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 27; Value: 8 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->24<!-- Field: /Sequence --></TD></TR>
</TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR>
</TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 12pt/12pt Times New Roman; margin: 0"><FONT STYLE="font-size: 10pt"></FONT></P>

<P STYLE="font: 12pt/12pt Times New Roman; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>


<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><A NAME="t82897a013_v1"></A>Item 6. &ndash;
Exhibits.</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 11pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 90%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">31.1*</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Certification
    of Chief Executive Officer pursuant to Rule 13a-14 and Rule 15d-14(a), promulgated under the Securities and Exchange Act of
    1934, as amended</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">31.2*</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Certification
    of Chief Financial Officer pursuant to Rule 13a-14 and Rule 15d-14(a), promulgated under the Securities and Exchange Act of
    1934, as amended</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">32.1**</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Certification
    pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Chief Executive
    Officer)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">32.2**</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Certification
    pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Chief Financial
    Officer)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">101 INS*</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">XBRL Instance Document</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">101 SCH*</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">XBRL Taxonomy Extension Schema
    Document</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">101 CAL*</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">XBRL Taxonomy Extension Calculation
    Linkbase Document</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">101 LAB*</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">XBRL Extension Label Linkbase
    Document</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">101 PRE*</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">XBRL Taxonomy Extension Presentation
    Linkbase Document</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>

</TABLE>
<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">* Filed herewith.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">** Furnished herewith.</FONT></P>

<P STYLE="font: 12pt/12pt Times New Roman; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 28; Value: 8 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->25<!-- Field: /Sequence --></TD></TR>
</TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR>
</TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 12pt/12pt Times New Roman; margin: 0"><FONT STYLE="font-size: 10pt"></FONT></P>

<P STYLE="font: 12pt/12pt Times New Roman; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>


<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>Signatures</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">In accordance with
the requirements of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 11pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 2%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 48%; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman"><B>Applied DNA Sciences, Inc.</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Dated: August 10, 2015</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">/s/
    JAMES A. HAYWARD, Ph. D.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">James A. Hayward, Ph. D.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman"><I>Chief Executive Officer</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman"><I>(Duly authorized officer and
    principal executive officer)</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1px solid; padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">/s/
    BETH JANTZEN</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman">Beth Jantzen, CPA</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman"><I>Chief Financial Officer</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman"><I>(Duly authorized officer and</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman"><I>principal financial and accounting
    officer)</I></FONT></TD></TR>

</TABLE>
<P STYLE="font: 10pt/normal Times New Roman; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 29; Value: 8 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->26<!-- Field: /Sequence --></TD></TR>
</TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR>
</TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman,serif; margin: 8.5pt 0 0; text-align: right"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 1pt Times New Roman,serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 100%; border-top: Black 2px solid"><FONT STYLE="font-size: 1pt">&nbsp;</FONT></TD></TR>

</TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0 0; text-align: right"><FONT STYLE="font-size: 10pt"><B>Exhibit 31.1</B></FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>CERTIFICATION PURSUANT
TO RULE 13 a -14(a) OR 15 d -14(a) OF THE SECURITIES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>EXCHANGE ACT OF 1934,
AS ADOPTED PURSUANT TO SECTION 302 OF THE</B></FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>SARBANES-OXLEY ACT
OF 2002</B></FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><FONT STYLE="font-size: 10pt">I, James A. Hayward, certify that:</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 11pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 5%; padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 90%; padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">1.</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">I
    have reviewed this quarterly report on Form 10-Q of Applied DNA Sciences, Inc.;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">2.</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">Based
    on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
    to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect
    to the period covered by this report;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">3.</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">Based
    on my knowledge, the financial statements, and other financial information included in this report, fairly present in all
    material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods
    presented in this report;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">4.</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">The
    registrant&rsquo;s other certifying officer and I are responsible for establishing and maintaining disclosure controls and
    procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined
    in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">a.</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">designed
    such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,
    to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to
    us by others within those entities, particularly during the period in which this report is being prepared;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">b.</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">designed
    such internal control over financial reporting, or caused such internal control over financial reporting to be designed under
    our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
    statements for external purposes in accordance with generally accepted accounting principles;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">c.</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">evaluated
    the effectiveness of the registrant&rsquo;s disclosure controls and procedures and presented in this report our conclusions
    about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based
    on such evaluation; and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">d.</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">disclosed
    in this report any change in the registrant&rsquo;s internal control over financial reporting that occurred during the registrant&rsquo;s
    most recent fiscal quarter (the registrant&rsquo;s fourth fiscal quarter in the case of an annual report) that has materially
    affected, or is reasonably likely to materially affect, the registrant&rsquo;s internal control over financial reporting;
    and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">5.</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">The
    registrant&rsquo;s other certifying officer and I have disclosed, based on our most recent evaluation of internal control
    over financial reporting, to the registrant&rsquo;s auditors and the audit committee of the registrant&rsquo;s board of directors
    (or persons performing the equivalent functions):</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">a.</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">all significant
    deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably
    likely to adversely affect the registrant&rsquo;s ability to record, process, summarize and report financial information;
    and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">b.</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">any fraud,
    whether or not material, that involves management or other employees who have a significant role in the registrant&rsquo;s
    internal control over financial reporting.</FONT></TD></TR>

</TABLE>

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 11pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Dated:
    August 10, 2015</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 46%; padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 4%; padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">By:&nbsp;</FONT></TD>
    <TD STYLE="width: 50%; border-bottom: Black 1px solid; padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">/s/
    JAMES A. HAYWARD</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">James
    A. Hayward</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">Chief Executive
    Officer</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">Applied DNA
    Sciences, Inc.</FONT></TD></TR>

</TABLE>
<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><FONT STYLE="font-size: 10pt"></FONT></P>

<!-- Field: Page; Sequence: 30 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><FONT STYLE="font-size: 10pt"></FONT></P>



<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 1pt Times New Roman,serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 100%; border-top: Black 2px solid"><FONT STYLE="font-size: 1pt">&nbsp;</FONT></TD></TR>

</TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0 0; text-align: right"><FONT STYLE="font-size: 10pt"><B>Exhibit 31.2</B></FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>CERTIFICATION PURSUANT
TO RULE 13 a -14(a) OR 15 d -14(a) OF THE SECURITIES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>EXCHANGE ACT OF 1934,
AS ADOPTED PURSUANT TO SECTION 302 OF THE</B></FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>SARBANES-OXLEY ACT
OF 2002</B></FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><FONT STYLE="font-size: 10pt">I, Beth Jantzen, certify that:</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 11pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 5%; padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 90%; padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">1.</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">I
    have reviewed this quarterly report on Form 10-Q of Applied DNA Sciences, Inc.;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">2.</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">Based
    on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
    to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect
    to the period covered by this report;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">3.</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">Based
    on my knowledge, the financial statements, and other financial information included in this report, fairly present in all
    material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods
    presented in this report;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">4.</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">The
    registrant&rsquo;s other certifying officer and I are responsible for establishing and maintaining disclosure controls and
    procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined
    in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">a.</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">designed
    such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,
    to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to
    us by others within those entities, particularly during the period in which this report is being prepared;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">b.</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">designed
    such internal control over financial reporting, or caused such internal control over financial reporting to be designed under
    our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
    statements for external purposes in accordance with generally accepted accounting principles;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">c.</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">evaluated
    the effectiveness of the registrant&rsquo;s disclosure controls and procedures and presented in this report our conclusions
    about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based
    on such evaluation; and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">d.</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">disclosed
    in this report any change in the registrant&rsquo;s internal control over financial reporting that occurred during the registrant&rsquo;s
    most recent fiscal quarter&nbsp; (the registrant&rsquo;s fourth fiscal quarter in the case of an annual report) that has materially
    affected, or is reasonably likely to materially affect, the registrant&rsquo;s internal control over financial reporting;
    and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">5.</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">The
    registrant&rsquo;s other certifying officer and I have disclosed, based on our most recent evaluation of internal control
    over financial reporting, to the registrant&rsquo;s auditors and the audit committee of the registrant&rsquo;s board of directors
    (or persons performing the equivalent functions):</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">a.</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">all significant
    deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably
    likely to adversely affect the registrant&rsquo;s ability to record, process, summarize and report financial information;
    and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">b.</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">any fraud,
    whether or not material, that involves management or other employees who have a significant role in the registrant&rsquo;s
    internal control over financial reporting.</FONT></TD></TR>

</TABLE>

<P STYLE="margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 11pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Dated:
    August 10, 2015</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 46%; padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 4%; padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">By:&nbsp;</FONT></TD>
    <TD STYLE="width: 50%; border-bottom: Black 1px solid; padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">/s/
    BETH JANTZEN</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">Beth
    Jantzen, CPA</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">Chief Financial
    Officer</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">Applied DNA
    Sciences, Inc.</FONT></TD></TR>

</TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><FONT STYLE="font-size: 10pt"></FONT></P>

<!-- Field: Page; Sequence: 31 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><FONT STYLE="font-size: 10pt"></FONT></P>



<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 1pt Times New Roman,serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 100%; border-top: Black 2px solid"><FONT STYLE="font-size: 1pt">&nbsp;</FONT></TD></TR>

</TABLE>


<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0 0; text-align: right"><FONT STYLE="font-size: 10pt"><B>Exhibit 32.1</B></FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>CERTIFICATION PURSUANT
TO 18 U.S.C. 1350, AS ADOPTED PURSUANT TO</B></FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002</B></FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.35in"><FONT STYLE="font-size: 10pt">The
undersigned, James A. Hayward, Chief Executive Officer of Applied DNA Sciences, Inc. (the &ldquo;Company&rdquo;), in connection
with the Company&rsquo;s Quarterly Report on Form 10-Q for the period ended June 30, 2015 (the &ldquo;Report&rdquo;), as filed
with the Securities and Exchange Commission on the date hereof, hereby certifies pursuant to the requirements of 18 U.S.C. 1350,
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 11pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 95%; padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; text-align: justify; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">the
    Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934,
    as amended, and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; text-align: justify; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">the
    information in the Report fairly presents, in all material respects, the financial condition and results of operations of
    the Company.</FONT></TD></TR>

</TABLE>
<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.35in"><FONT STYLE="font-size: 10pt">This
certification is being provided pursuant to 18 U.S.C. 1350 and is not to be deemed a part of the Report, nor is it to be deemed
to be &ldquo;filed&rdquo; for any purpose whatsoever.</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 11pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 46%; padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 4%; padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">By:&nbsp;</FONT></TD>
    <TD STYLE="width: 50%; border-bottom: black 1pt solid; padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">/s/
    JAMES A. HAYWARD</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">James
    A. Hayward</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">Chief Executive
    Officer</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">Applied DNA
    Sciences, Inc.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">Dated: August
    10, 2015</FONT></TD></TR>

</TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>


<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><FONT STYLE="font-size: 10pt"></FONT></P>

<!-- Field: Page; Sequence: 32 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><FONT STYLE="font-size: 10pt"></FONT></P>



<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 1pt Times New Roman,serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 100%; border-top: Black 2px solid"><FONT STYLE="font-size: 1pt">&nbsp;</FONT></TD></TR>

</TABLE>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0 0; text-align: right"><FONT STYLE="font-size: 10pt"><B>Exhibit 32.2</B></FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>CERTIFICATION PURSUANT
TO 18 U.S.C. 1350, AS ADOPTED PURSUANT TO</B></FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002</B></FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.35in"><FONT STYLE="font-size: 10pt">The
undersigned, Beth Jantzen, Chief Financial Officer of Applied DNA Sciences, Inc. (the &ldquo;Company&rdquo;), in connection with
the Company&rsquo;s Quarterly Report on Form 10-Q for the period ended June 30, 2015 (the &ldquo;Report&rdquo;), as filed with
the Securities and Exchange Commission on the date hereof, hereby certifies pursuant to the requirements of 18 U.S.C. 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 11pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">&#9679;</FONT></TD>
    <TD STYLE="width: 95%; padding-right: 2.4pt; text-align: justify; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">the
    Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934,
    as amended, and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; text-align: justify; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">the
    information in the Report fairly presents, in all material respects, the financial condition and results of operations of
    the Company.</FONT></TD></TR>

</TABLE>
<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.35in"><FONT STYLE="font-size: 10pt">This
certification is being provided pursuant to 18 U.S.C. 1350 and is not to be deemed a part of the Report, nor is it to be deemed
to be &ldquo;filed&rdquo; for any purpose whatsoever.</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 11pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 46%; padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 4%; padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">By:&nbsp;</FONT></TD>
    <TD STYLE="width: 50%; border-bottom: Black 1px solid; padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">/s/
    BETH JANTZEN</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">Beth
    Jantzen, CPA</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">Chief Financial
    Officer</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">Applied DNA
    Sciences, Inc.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font-family: Calibri,sans-serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 2.4pt; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">Dated: August
    10, 2015</FONT></TD></TR>

</TABLE>
<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 4 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Gainsboro 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Arial, Helvetica, Sans-Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR>
</TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in"></P>



<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>



<P STYLE="margin: 0"></P>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
