SOURCE: Applied DNA Sciences

Applied DNA Sciences

September 06, 2016 05:30 ET

Applied DNA Sciences Platform Stops Cotton Fiber Substitution

Patented Forensic "Dirt to Shirt" Tagging Helps Control Textile Supply Chain Breaches

STONY BROOK, NY--(Marketwired - September 06, 2016) - In light of recent reports of mislabeling products relating to Egyptian cotton, Applied DNA Sciences, Inc. (NASDAQ: APDN), a provider of DNA-based supply chain, anti-counterfeiting, authentication, genotyping and anti-theft technologies, today provides market data that shows their DNA-based system can be used to monitor, control or eliminate the off-shore substitution of high-value cotton fibers by fibers of unknown origin.

APDN has a solution that uses forensic science to tag, type and test textile products. Trademarked as SigNature® T for textiles, the core technology has a unique molecular tag that tags cotton fibers en masse in the gin that are subsequently checked at every step of the supply chain as it is made into yarn, fabric and finished goods. In addition to SigNature T, all cotton is fiberTyped®, which quantifies the native DNA within cotton fibers by species prior to ginning to ensure the original cotton species is present.

As shown in the accompanying figure, once SigNature T DNA tagging was implemented, including the strict storage and labeling protocols, along with inspections and frequent DNA testing, the level of DNA compliance rose quickly to 100%. Data were obtained by APDN from commercial samples.

"Traceable American cotton helps consumers be confident of their source. Thirteen countries have been recognized as harvesting 'Conflict Cotton' under conditions that utilize child labor, or enslaved adults. More than 260 international brands and retailers have signed pledges to eliminate unethically sourced cotton from their supply chains. If you know where 100% of your cotton comes from, you know you have prevented the entry of inferior cottons. More importantly, you can exclude the intrusion of Conflict Cotton in complex, off-shore supply chains; preventing injustice and the violation of multiple federal and international laws," said Dr. James Hayward, CEO of APDN.

Recently, one of the world's largest cotton manufacturers, located in India, has been accused by a US retailer of mislabeling products as 100% Egyptian Cotton. Subsequently, a number of cotton retailers have launched formal audits of their products obtained from the same manufacturer, who now admits "a failure" about "the provenance of the fibre (sic)". APDN had previously warned that brands and consumers seriously question Egyptian textile claims.

In prior surveys, APDN examined the genetic content of retail products labeled 100% Egyptian or 100% Pima cotton, using fiberTyping®. This technology quantifies the native DNA by species within cotton fibers contained in cotton products. According to the Company's research, first published five years ago, approximately 80% of retail products did not comply with their "100%" label.

"Several retailers and brand-owners have begun to use the SigNature T platform, that involves training and testing of every vendor in the supply chain -- ginners, spinners, dyers, weavers and assemblers," continued Hayward. "Multiple growers and gins are participating. Multiple international and US patents protect the technology."

A patented, cloud-based IT platform, known as "digitalDNA®" tracks the integrity of the marked cotton from "Dirt to Shirt", until finished goods are DNA-verified and delivered for retail. With Tag, Type and Test data behind the label, consumers can have more confidence in where their product comes from.

Applied DNA Sciences helps to protect supply chains globally through forensic innovations. SigNature DNA has been used to protect electronic supply chains for the Department of Defense for more than 5 years. Over 700,000 semiconductors have been marked with SigNature DNA to prevent the introduction of counterfeit parts into military supply chains. APDN management believe the technology will prove just as relevant in the supply chains for pharmaceutics, personal care, foods and other materials.

About Applied DNA Sciences
We make life real and safe by providing 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. Our patented DNA-based solutions can be used to identify, tag, track, and trace products, to help assure authenticity, traceability and quality of products. SigNature® DNA describes the platform ingredient that is at the heart of a family of uncopyable, security and authentication solutions such as SigNature® T and fiberTyping®, targeted toward textiles and apparel, DNAnet®, for anti-theft and loss prevention, and digitalDNA®, providing powerful track and trace. All provide a forensic chain of evidence, and can be used to prosecute perpetrators. We are also engaged in the large-scale production of specific DNA sequences using the polymerase chain reaction.

Go to adnas.com for more information, events and to learn more about how Applied DNA Sciences makes life real and safe. Common stock listed on NASDAQ under the symbol APDN, and warrants are listed under the symbol APDNW.

Forward-Looking Statements

The statements made by APDN in this press release may be "forward-looking" in nature within the meaning of the Private Securities Litigation Act of 1995. Forward-looking statements describe APDN's future plans, projections, strategies and expectations, and are based on assumptions and involve a number of risks and uncertainties, many of which are beyond the control of APDN. Actual results could differ materially from those projected due to our short operating history, limited financial resources, limited market acceptance, market competition and various other factors detailed from time to time in APDN's SEC reports and filings, including our Annual Report on Form 10-K filed on December 14, 2015, and our subsequent quarterly reports on Form 10-Q filed on February 10, 2016, May 12, 2016 and August 11, 2016 which are available at www.sec.gov. APDN undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date hereof to reflect the occurrence of unanticipated events, unless otherwise required by law.

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