----

----

| x | QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF                THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------------------------------------------|

| o | TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d)                OF THE SECURITIES EXCHANGE ACT OF                1934 |
|---|---------------------------------------------------------------------------------------------------------------------------------------|

**APPLIED      DNA SCIENCES, INC**

| **Nevada**                                              | **59-2262718**                        |
|---------------------------------------------------------|---------------------------------------|
| (State                or other jurisdiction of          | (I.R.S.                Employer       |
| incorporation                or organization)           | Identification                Number) |
|                                                    |                                  |
| **25                Health Sciences Drive, Suite 113**  |                                  |
| **Stony                Brook, New York**                | **11790**                             |
| (Address                of Principal Executive Offices) | (Zip                Code)             |

**(631)      444-6861**

| · | Indicate                  by check mark whether the registrant (1) filed all reports required                  to be                  filed by Section 13 or 15(d) of the Securities Exchange Act of                  1934 during                  the last 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. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Indicate                  by check mark whether the registrant is                  a shell company (as defined in Rule 12b-2 of the Exchange                  Act). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The                      number of shares of Common Stock, $0.001 par value, outstanding                      on August                      17, 2007, was approximately                      160,499,549. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Transitional                    Small Business Disclosure Format (check                    one): |
|--------|--------------------------------------------------------------------------------------------------|

----

| **APPLIED                DNA SCIENCES,                INC** |
|-------------------------------------------------------------|
| **QUARTERLY                REPORT ON FORM 10-QSB FOR THE**  |
| **QUARTERLY                PERIOD ENDING JUNE 30, 2007**    |
|                                                        |   |   |
| **Table                of Contents**                        |
|                                                        |   |   |
| **PART              I. FINANCIAL INFORMATION**              |   |
|                                                        |   |   |   |
|                                                        | **Item              1.** **Financial              Statements** |   |
|                                                        |   |   |   |
|                                                        |   | Condensed                Consolidated Balance Sheet: June 30, 2007 (Unaudited) | 1 |
|                                                        |   |   |   |
|                                                        |   | Condensed                Consolidated Statements of Losses:Three                Months Ended June 30, 2007 and 2006 (Unaudited) and the Period from                September 16, 2002 (Date of Inception) Through June 30, 2007                (Unaudited) | 2 |
|                                                        |   |   |   |
|                                                        |   | Condensed                Consolidated Statement of Stockholder’s Equity (Deficiency):For                the Period from September 16, 2002 (Date of Inception) Through June                30,                2007 (Unaudited) | 3 |
|                                                        |   |   |   |
|                                                        |   | Condensed                Consolidated Statements of Cash Flows:Three                Months Ended June 30, 2007 and 2006 (Unaudited) and the Period from                September 16, 2002 (Date of Inception) Through June 30, 2007                (Unaudited) | 17 |
|                                                        |   |   |   |
|                                                        |   | Notes                to Unaudited Condensed Consolidated Financial Information: June 30,                2007 | 19-42 |
|                                                        |   |   |   |
|                                                        | **Item              2.** **Management’s              Discussion and Analysis** | 43 |
|                                                        |   |   |   |
|                                                        | **Item              3** **Controls              and Procedures** | 60 |
|                                                        |   |   |  |
| **PART              II. OTHER INFORMATION**                 |  |
|                                                        |   |   |   |
|                                                        | **Item              1.** **Legal              Proceedings** | 62 |
|                                                        |   |   |   |
|                                                        | **Item              2.** **Unregistered              Sales of Equity Securities and Use of Proceeds** | 63 |
|                                                        |   |   |   |
|                                                        | **Item              3.** **Defaults              Upon Senior Securities** | 63 |
|                                                        |   |   |   |
|                                                        | **Item              4.** **Submission              of Matters to a Vote of Security Holders** | 63 |
|                                                        |   |   |   |
|                                                        | **Item              5.** **Other              Information** | 63 |
|                                                        |   |   |   |
|                                                        | **Item              6.** **Exhibits** | 63 |
|                                                        |   |   |   |
| **Signatures**                                              | 64 |

----

**PART      I. FINANCIAL INFORMATION**

| **APPLIED                DNA SCIENCES, INC.**                                                                                                          |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| **(A                Development stage company)**                                                                                                       |   |
| **CONDENSED                CONSOLIDATED BALANCE SHEET**                                                                                                |   |
| **(unaudited)**                                                                                                                                        |   |
|                                                                                                                                                   |   | June                30, |   |
|                                                                                                                                                   |   | 2007 |   |
| ASSETS                                                                                                                                                 |   |
| Current                assets:                                                                                                                         |   |   |   |
| Cash                                                                                                                                                   |   | $ | 34,792 |   |
| Prepaid                expenses                                                                                                                        |   |   | 138,875 |   |
| Total                current assets                                                                                                                    |   |   | 173,667 |   |
|                                                                                                                                                   |   |   |   |   |
| Property,                plant and equipment-net of accumulated depreciation of                $67,497                                                 |   |   | 120,865 |   |
|                                                                                                                                                   |   |   |   |   |
| Other                assets:                                                                                                                           |   |   |   |   |
| Deposits                                                                                                                                               |   |   | 13,822 |   |
| Capitalized                finance costs-net of accumulated amortization of                $1,641,988                                                  |   |   | 65,612 |   |
|                                                                                                                                                   |   |   |   |   |
| Intangible                assets:                                                                                                                      |   |   |   |   |
| Patients,                net of accumulated amortization of $23,732 (Note B)                                                                           |   |   | 10,525 |   |
| Intellectual                property, net of accumulated amortization and write off of $7,611,943                (Note B)                              |   |   | 1,818,957 |   |
|                                                                                                                                                   |   |   |   |   |
| Total                Assets                                                                                                                            |   | $ | 2,203,448 |   |
|                                                                                                                                                   |   |   |   |   |
| LIABILITIES                AND DEFICIENCY IN STOCKHOLDERS' EQUITY                                                                                      |
|                                                                                                                                                   |   |   |   |   |
| Current                liabilities:                                                                                                                    |   |   |   |   |
| Accounts                payable and accrued liabilities                                                                                                |   | $ | 8,976,675 |   |
| Convertible                notes payable, net of unamortized discount (Note D)                                                                         |   |   | 1,745,855 |   |
| Total                current liabilities                                                                                                               |   |   | 10,722,530 |   |
|                                                                                                                                                   |   |   |   |   |
| Debt                derivative and warrant liability                                                                                                   |   |   | 4,468,404 |   |
|                                                                                                                                                   |   |   |   |   |
| Commitments                and contingencies (Note J)                                                                                                  |   |   |   |   |
|                                                                                                                                                   |   |   |   |   |
| Deficiency                in Stockholders' Equity- (Note F)                                                                                            |   |   |   |   |
| Preferred                stock, par value $0.0001 per share; 10,000,000 shares authorized;                60,000                issued and outstanding |   |   | 6 |   |
| Common                stock, par value $0.001 per share; 410,000,000 shares authorized;                160,499,549 issued and outstanding              |   |   | 160,499 |   |
| Additional                paid in capital                                                                                                              |   |   | 87,420,306 |   |
| Accumulated                deficit                                                                                                                     |   |   | (100,568,297 | ) |
| Total                deficiency in stockholders' equity                                                                                                |   |   | (12,987,486 | ) |
|                                                                                                                                                   |   |   |   |   |
| Total                liabilities and Deficiency in Stockholders' Equity                                                                                |   | $ | 2,203,448 |   |
|                                                                                                                                                   |   |   |   |   |
| See                the accompanying notes to the consolidated financial                statements                                                      |   |   |   |   |

----

| **APPLIED                  DNA SCIENCES, INC.**                                                             |   |
|-------------------------------------------------------------------------------------------------------------|--------|
| **(A                  DEVELOPMENT STAGE COMPANY)**                                                          |   |
| **CONDENSED                  CONSOLIDATED STATEMENTS OF LOSSES**                                            |   |
| **(unaudited)**                                                                                             |   |
|                                                                                                        |   |   |   |   |   |   |   |   |   | From                  September 16, 2002 |   |
|                                                                                                        |   | For                  the three months Ended June 30, |   | For                  the nine months Ended June 30, |   | (Date                  of Inception) |   |
|                                                                                                        |   | 2007 |   | 2006 |   | 2007 |   | 2006 |   | Through                  June 30, 2007 |   |
|                                                                                                        |   |   |   | RESTATED |   |   |   | RESTATED |   |   |   |
| Sales                                                                                                       |   | $ | - |   | $ | 18,900 |   | $ | - |   | $ | 18,900 |   | $ | 18,900 |   |
| Cost                  of sales                                                                              |   |   | - |   |   | (15,639 | ) |   | - |   |   | (15,639 | ) |   | 15,639 |   |
| Gross                  Profit                                                                               |   |   | - |   |   | 3,261 |   |   | - |   |   | 3,261 |   |   | 3,261 |   |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                  expenses:                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling,                  general and administrative                                                        |   |   | 1,968,642 |   |   | 1,580,967 |   |   | 6,012,028 |   |   | 4,391,305 |   |   | 86,077,987 |   |
| Research                  and development                                                                   |   |   | 25,504 |   |   | - |   |   | 94,289 |   |   | 75,276 |   |   | 1,124,888 |   |
| Impairment                  of intangible asset(s)                                                          |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 5,655,011 |   |
| Depreciation                  and amortization                                                              |   |   | 108,357 |   |   | 336,824 |   |   | 324,594 |   |   | 1,021,199 |   |   | 2,054,320 |   |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                  operating expenses                                                                   |   |   | 2,102,503 |   |   | 1,917,791 |   |   | 6,430,912 |   |   | 5,487,780 |   |   | 94,912,207 |   |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                  LOSS FROM OPERATIONS                                                                   |   |   | (2,102,503 | ) |   | (1,914,530 | ) |   | (6,430,912 | ) |   | (5,484,519 | ) |   | (94,908,946 | ) |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  gain (loss) in revaluation of debt derivative and warrant                  liabilities |   |   | 4,431,421 |   |   | 3,493,961 |   |   | 142,131 |   |   | 14,250,621 |   |   | 33,687,958 |   |
| Other                  income                                                                               |   |   | (0 | ) |   | 8,483 |   |   | 977 |   |   | 17,976 |   |   | 111,807 |   |
| Interest                  expense                                                                           |   |   | (520,963 | ) |   | (826,827 | ) |   | (1,945,702 | ) |   | (3,177,229 | ) |   | (39,459,116 | ) |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  income (loss) before provision for income taxes                                        |   |   | 1,807,954 |   |   | 761,087 |   |   | (8,233,506 | ) |   | 5,606,849 |   |   | (100,568,297 | ) |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                  taxes (benefit)                                                                     |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                  INCOME (LOSS)                                                                          |   | $ | 1,807,954 |   | $ | 761,087 |   | $ | (8,233,506 | ) | $ | 5,606,849 |   | $ | (100,568,297 | ) |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  income (loss) per share-basic                                                          |   | $ | 0.01 |   | $ | 0.01 |   | $ | (0.07 | ) | $ | 0.05 |   |   |   |   |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  loss per share-assuming fully diluted-Note A                                           |   | $ | (0.02 | ) | $ | (0.02 | ) |   |   |   | $ | (0.04 | ) |   |   |   |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                  average shares outstanding-                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                       |   |   | 132,310,413 |   |   | 118,582,385 |   |   | 124,844,409 |   |   | 115,852,521 |   |   |   |   |
| Fully                  diluted                                                                              |   |   | 170,056,948 |   |   | 177,501,849 |   |   | 162,590,944 |   |   | 181,716,985 |   |   |   |   |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                  the accompanying notes to the consolidated financial                  statements       |

----

| APPLIED                  DNA SCIENCES, INC                                                                                                |   |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (A                  development stage company)                                                                                            |   |
| CONDENSED                  CONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY,                  (DEFICIENCY)                                  |   |
| FOR                  THE PERIOD SEPTEMBER 16, 2002 (DATE OF INCEPTION) THROUGH JUNE                  30,                  2007(unaudited) |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Deficit |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   | Additional |   |   |   |   |   | Accumulated |   |   |   |
|                                                                                                                                      |   |   |   | Preferred |   |   |   |   |   | Paid                  in |   | Common |   | Stock |   | During |   |   |   |
|                                                                                                                                      |   | Preferred |   | Shares |   | Common |   | Common                  Stock |   | Capital |   | Stock |   | Subscription |   | Development |   |   |   |
|                                                                                                                                      |   | Shares |   | Amount |   | Shares |   | Amount |   | Amount |   | Subscribed |   | Receivable |   | Stage |   | Total |   |
| Issuance                  of common stock                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| to                  Founders in exchange                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for                  services on September                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 16,                  2002 at $.01 per share                                                                                               |   |   | - |   |   | - |   |   | 100,000 |   | $ | 10 |   | $ | 990 |   | $ | - |   | $ | - |   | $ | - |   | $ | 1,000 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  Loss                                                                                                                 |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | (11,612 | ) |   | (11,612 | ) |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                  at September 30, 2002                                                                                            |   |   | - |   | $ | - |   |   | 100,000 |   | $ | 10 |   | $ | 990 |   | $ | - |   | $ | - |   | $ | (11,612 | ) | $ | (10,612 | ) |
| Issuance                  of common stock in                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| connection                  with merger with                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Prohealth                  Medical Technologies,                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Inc                  on October 1, 2002                                                                                                   |   |   | - |   |   | - |   |   | 10,178,352 |   |   | 1,015 |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 1,015 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cancellation                  of common stock                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| in                  connection with merger with                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Prohealth                  Medical                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Technologies,                  Inc on October                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 21,                  2002                                                                                                                 |   |   | - |   |   | - |   |   | (100,000 | ) |   | (10 | ) |   | (1,000 | ) |   | - |   |   | - |   |   | - |   |   | (1,010 | ) |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                  of common stock in                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| exchange                  for services in                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| October                  2002 at $0.65 per                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| share                                                                                                                                     |   |   | - |   |   | - |   |   | 602,000 |   |   | 60 |   |   | 39,070 |   |   | - |   |   | - |   |   | - |   |   | 39,130 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                  of common stock in                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| exchange                  for subscription in                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| November                  and December 2002                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| at                  $0.065 per share                                                                                                      |   |   | - |   |   | - |   |   | 876,000 |   |   | 88 |   |   | 56,852 |   |   | - |   |   | (56,940 | ) |   | - |   |   | - |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cancellation                  of common stock                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| in                  January 2003 previously                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| issued                  in exchange for                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| consulting                  services                                                                                                      |   |   | - |   |   | - |   |   | (836,000 | ) |   | (84 | ) |   | (54,264 | ) |   | - |   |   | 54,340 |   |   | - |   |   | (8 | ) |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                  of common stock in                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| exchange                  for licensing services                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| valued                  at $0.065 per share in                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| January                  2003                                                                                                             |   |   | - |   |   | - |   |   | 1,500,000 |   |   | 150 |   |   | 97,350 |   |   | - |   |   | - |   |   | - |   |   | 97,500 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                  of common stock in                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| exchange                  for consulting                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| services                  valued at $0.13 per                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| share                  in January 2003                                                                                                    |   |   | - |   |   | - |   |   | 586,250 |   |   | 58 |   |   | 76,155 |   |   | - |   |   | - |   |   | - |   |   | 76,213 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                  of common stock in                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| exchange                  for consulting                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| services                  at $0.065 per share in                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| February                  2003                                                                                                            |   |   | - |   |   | - |   |   | 9,000 |   |   | 1 |   |   | 584 |   |   | - |   |   | - |   |   | - |   |   | 585 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                  of common stock to                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Founders                  in exchange for                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| services                  valued at $0.0001 per                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| share                  in March 2003                                                                                                      |   |   | - |   |   | - |   |   | 10,140,000 |   |   | 1,014 |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 1,014 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                  of common stock in                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| exchange                  for consulting                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| services                  valued at $2.50 per                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| share                  in March 2003                                                                                                      |   |   | - |   |   | - |   |   | 91,060 |   |   | 10 |   |   | 230,624 |   |   | - |   |   | - |   |   | - |   |   | 230,634 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| APPLIED                      DNA SCIENCES, INC                                                                                                        |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (A                      development stage company)                                                                                                    |   |
| CONDENSED                      CONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY,                      (DEFICIENCY)                                      |   |
| FOR                      THE PERIOD SEPTEMBER 16, 2002 (DATE OF INCEPTION) THROUGH JUNE                      30,                      2007(unaudited) |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Deficit |   |   |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   | Additional |   |   |   |   |   | Accumulated |   |   |   |
|                                                                                                                                                  |   |   |   | Preferred |   |   |   | Common |   | Paid                      in |   | Common |   | Stock |   | During |   |   |   |
|                                                                                                                                                  |   | Preferred |   | Shares |   | Common |   | Stock |   | Capital |   | Stock |   | Subscription |   | Development |   |   |   |
|                                                                                                                                                  |   | Shares |   | Amount |   | Shares |  | Amount |   | Amount |   | Subscribed |   | Receivable |   | Stage |   | Total |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |  |  |  |  |   |  |  |  |   |  |   |   |  |  |  |   |  |   |   |

| Issuance                  of common stock in      |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|---------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| exchange                  for consulting services |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| valued                  at $0.065 per share in    |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| March                  2003                       |   |   | -      |   |   | -      |   |   | 6,000      |   |   | 1      |   |   | 389    |   |   | -      |   |   | -      |   |   | -      |   |   | 390    |   |
|                                              |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  stock subscribed in       |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| exchange                  for cash at $1 per      |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| share                  in March 2003              |   |   | -      |   |   | -      |   |   | -          |   |   | -      |   |   | 18,000 |   |   | -      |   |   | -      |   |   | -      |   |   | 18,000 |   |
|                                              |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  stock issued in           |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| exchange                  for consulting          |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| services                  at $0.065 per           |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| share                  on April 1, 2003           |   |   | -      |   |   | -      |   |   | 860,000    |   |   | 86     |   |   | 55,814 |   |   | -      |   |   | -      |   |   | -      |   |   | 55,900 |   |
|                                              |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  stock issued in           |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| exchange                  for cash at $1.00 per   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| share                  on April 9, 2003           |   |   | -      |   |   | -      |   |   | 18,000     |   |   | 2      |   |   | -      |   |   | -      |   |   | -      |   |   | -      |   |   | 2      |   |
|                                              |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  stock issued in           |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| exchange                  for consulting services |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| at                  $0.065 per share on April 9,  |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2003                                              |   |   | -      |   |   | -      |   |   | 9,000      |   |   | 1      |   |   | 584    |   |   | -      |   |   | -      |   |   | -      |   |   | 585    |   |
|                                              |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  stock issued in           |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| exchange                  for consulting services |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| at                  $2.50 per share on April 23,  |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2003                                              |   |   | -      |   |   | -      |   |   | 5,000      |   |   | 1      |   |   | 12,499 |   |   | -      |   |   | -      |   |   | -      |   |   | 12,500 |   |
|                                              |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  stock issued in           |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| exchange                  for consulting services |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| at                  $2.50 per share, on June 12,  |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2003                                              |   |   | -      |   |   | -      |   |   | 10,000     |   |   | 1      |   |   | 24,999 |   |   | -      |   |   | -      |   |   | -      |   |   | 25,000 |   |
|                                              |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  stock issued in           |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| exchange                  for cash at $1.00 per   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| share                  on June 17, 2003           |   |   | -      |   |   | -      |   |   | 50,000     |   |   | 5      |   |   | 49,995 |   |   | -      |   |   | -      |   |   | -      |   |   | 50,000 |   |
|                                              |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  stock subscribed in       |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| exchange                  for cash at $2.50 per   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| share                  pursuant to a private      |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| placement                  on June 27, 2003       |   |   | -      |   |   | -      |   |   | -          |   |   | -      |   |   | -      |   |   | 24,000 |   |   | -      |   |   | -      |   |   | 24,000 |   |
|                                              |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  stock retired in          |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| exchange                  for note payable        |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| at                  $0.0118 per share,            |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| in                  June 30, 2003                 |   |   | -      |   |   | -      |   |   | (7,500,000 | )      |   | (750   | )      |   | 750    |   |   | -      |   |   | -      |   |   | -      |   |   | -      |   |
|                                              |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  stock issued in           |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| exchange                  for consulting services |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| at                  $0.065 per share, on June 30, |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2003                                              |   |   | -      |   |   | -      |   |   | 270,000    |   |   | 27     |   |   | 17,523 |   |   | -      |   |   | -      |   |   | -      |   |   | 17,550 |   |
|                                              |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  stock subscribed in       |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| exchange                  for cash at $1.00 per   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| share                  pursuant to a private      |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| placement                  on June 30, 2003       |   |   | -      |   |   | -      |   |   | -          |   |   | -      |   |   | -      |   |   | 10,000 |   |   | -      |   |   | -      |   |   | 10,000 |   |
|                                              |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  stock subscribed in       |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| exchange                  for cash at $2.50 per   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| share                  pursuant to a private      |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| placement                  on June 30, 2003       |   |   | -      |   |   | -      |   |   | -          |   |   | -      |   |   | -      |   |   | 24,000 |   |   | -      |   |   | -      |   |   | 24,000 |   |
|                                              |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| APPLIED                      DNA SCIENCES, INC                                                                                                        |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (A                      development stage company)                                                                                                    |   |
| CONDENSED                      CONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY,                      (DEFICIENCY)                                      |   |
| FOR                      THE PERIOD SEPTEMBER 16, 2002 (DATE OF INCEPTION) THROUGH JUNE                      30,                      2007(unaudited) |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Deficit |   |   |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   | Additional |   |   |   |   |   | Accumulated |   |   |   |
|                                                                                                                                                  |   |   |   | Preferred |   |   |   | Common |   | Paid                      in |   | Common |   | Stock |   | During |   |   |   |
|                                                                                                                                                  |   | Preferred |   | Shares |   | Common |   | Stock |   | Capital |   | Stock |   | Subscription |   | Development |   |   |   |
|                                                                                                                                                  |   | Shares |   | Amount |   | Shares |   | Amount |   | Amount |   | Subscribed |   | Receivable |   | Stage |   | Total |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| Common                  stock issued in               |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
|-------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|--------|--------|--------|--------|-----------|--------|--------|---------|--------|--------|--------|--------|--------|------------|--------|--------|------------|--------|
| exchange                  for consulting services     |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| at                  approximately $2.01 per           |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| share,                  July 2003                     |   |   | -      |   |   | -      |   |   | 213,060    |   |   | 21     |   |   | 428,798   |   |   | -       |   |   | -      |   |   | -          |   |   | 428,819    |   |
|                                                  |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| Common                  stock canceled in July        |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| 2003,                  previously issued for          |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| services                  rendered at $2.50 per       |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| share                                                 |   |   | -      |   |   | -      |   |   | (24,000    | )      |   | (2     | )      |   | (59,998   | )      |   | -       |   |   | -      |   |   | -          |   |   | (60,000    | )      |
|                                                  |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| Common                  stock issued in               |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| exchange                  for options exercised       |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| at                  $1.00 per share in July 2003      |   |   | -      |   |   | -      |   |   | 20,000     |   |   | 2      |   |   | 19,998    |   |   | -       |   |   | -      |   |   | -          |   |   | 20,000     |   |
|                                                  |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| Common                  stock issued in               |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| exchange                  for exercise of             |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| options                  previously subscribed at     |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| $1.00                  per share in July 2003         |   |   | -      |   |   | -      |   |   | 10,000     |   |   | 1      |   |   | 9,999     |   |   | (10,000 | )      |   | -      |   |   | -          |   |   | -          |   |
|                                                  |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| Common                  stock issued in               |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| exchange                  for consulting services     |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| at                  approximately $2.38 per           |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| Share                  in August 2003                 |   |   | -      |   |   | -      |   |   | 172,500    |   |   | 17     |   |   | 410,915   |   |   | -       |   |   | -      |   |   | -          |   |   | 410,932    |   |
|                                                  |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| Common                  stock issued in               |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| exchange                  for options exercised       |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| at                  $1.00 per share in August 2003    |   |   | -      |   |   | -      |   |   | 29,000     |   |   | 3      |   |   | 28,997    |   |   | -       |   |   | -      |   |   | -          |   |   | 29,000     |   |
|                                                  |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| Common                  stock issued in               |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| exchange                  for consulting services     |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| at                  approximately $2.42 per           |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| share                  in September 2003              |   |   | -      |   |   | -      |   |   | 395,260    |   |   | 40     |   |   | 952,957   |   |   | -       |   |   | -      |   |   | -          |   |   | 952,997    |   |
|                                                  |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| Common                  stock issued in               |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| exchange                  for cash at $2.50 per       |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| share-subscription                                    |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| payable                  in September 2003            |   |   | -      |   |   | -      |   |   | 19,200     |   |   | 2      |   |   | 47,998    |   |   | (48,000 | )      |   | -      |   |   | -          |   |   | -          |   |
|                                                  |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| Common                  stock issued in               |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| exchange                  for cash at $2.50 per       |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| share                  pursuant to a private          |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| placement                  in September 2003          |   |   | -      |   |   | -      |   |   | 6,400      |   |   | 1      |   |   | 15,999    |   |   | -       |   |   | -      |   |   | -          |   |   | 16,000     |   |
|                                                  |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| Common                  stock issued in               |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| exchange                  for options exercised       |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| at                  $1.00 per share in September 2003 |   |   | -      |   |   | -      |   |   | 95,000     |   |   | 10     |   |   | 94,991    |   |   | -       |   |   | -      |   |   | -          |   |   | 95,001     |   |
|                                                  |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| Common                  stock subscription            |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| receivable                  reclassification          |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| adjustment                                            |   |   | -      |   |   | -      |   |   | -          |   |   | -      |   |   | -         |   |   | -       |   |   | 2,600  |   |   | -          |   |   | 2,600      |   |
|                                                  |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| Common                  Stock subscribed to           |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| at                  $2.50 per share in September      |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| 2003                                                  |   |   | -      |   |   | -      |   |   | -          |   |   | -      |   |   | -         |   |   | 300,000 |   |   | -      |   |   | -          |   |   | 300,000    |   |
|                                                  |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| Net                  Loss for the year                |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |
| ended                  September 30, 2003             |   |   | -      |   |   | -      |   |   | -          |   |   | -      |   |   | -         |   |   | -       |   |   | -      |   |   | (3,445,164 | )      |   | (3,445,164 | )      |
| Balance                  at September 30, 2003        |   |   | -      |   | $      | -      |   |   | 17,811,082 |   | $      | 1,781  |   | $      | 2,577,568 |   | $      | 300,000 |   | $      | -      |   | $      | (3,456,776 | )      | $      | (577,427   | )      |
|                                                  |   |   |   |   |   |   |   |   |       |   |   |   |   |   |      |   |   |    |   |   |   |   |   |       |   |   |       |   |

----

| APPLIED                      DNA SCIENCES, INC                                                                                                        |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (A                      development stage company)                                                                                                    |   |
| CONDENSED                      CONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY,                      (DEFICIENCY)                                      |   |
| FOR                      THE PERIOD SEPTEMBER 16, 2002 (DATE OF INCEPTION) THROUGH JUNE                      30,                      2007(unaudited) |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Deficit |   |   |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   | Additional |   |   |   |   |   | Accumulated |   |   |   |
|                                                                                                                                                  |   |   |   | Preferred |   |   |   | Common |   | Paid                      in |   | Common |   | Stock |   | During |   |   |   |
|                                                                                                                                                  |   | Preferred |   | Shares |   | Common |   | Stock |   | Capital |   | Stock |   | Subscription |   | Development |   |   |   |
|                                                                                                                                                  |   | Shares |   | Amount |   | Shares |   | Amount |   | Amount |   | Subscribed |   | Receivable |   | Stage |   | Total |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| Preferred                  shares issued in          |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
|------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|--------|------------|--------|--------|-------------|--------|--------|----------|--------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|
| exchange                  for services at $25.00     |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| per                  share in October 2003           |   |   | 15,000 |   |   | 15     |   |   | -         |   |   | -          |   |   | -           |   |   | -        |   |   | -      |   |   | -      |   |   | 15        |   |
|                                                 |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| Common                  stock issued in              |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| exchange                  for consulting services    |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| at                  approximately $2.85 per          |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| Share                  in October 2003               |   |   | -      |   |   | -      |   |   | 287,439   |   |   | 29         |   |   | 820,389     |   |   | -        |   |   | -      |   |   | -      |   |   | 820,418   |   |
|                                                 |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| Common                  stock issued in              |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| exchange                  for cash at $2.50 per      |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| share-subscription                                   |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| payable                  in October 2003             |   |   | -      |   |   | -      |   |   | 120,000   |   |   | 12         |   |   | 299,988     |   |   | (300,000 | )      |   | -      |   |   | -      |   |   | -         |   |
|                                                 |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| Common                  stock canceled in            |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| October                  2003, previously issued     |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| for                  services rendered at $2.50      |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| per                  share                           |   |   | -      |   |   | -      |   |   | (100,000  | )      |   | (10        | )      |   | (249,990    | )      |   | -        |   |   | -      |   |   | -      |   |   | (250,000  | )      |
|                                                 |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| Common                  stock issued in              |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| exchange                  for consulting services    |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| at                  approximately $3 per share in    |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| November                  2003                       |   |   | -      |   |   | -      |   |   | 100,000   |   |   | 10         |   |   | 299,990     |   |   | -        |   |   | -      |   |   | -      |   |   | 300,000   |   |
|                                                 |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| Common                  stock subscribed in          |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| exchange                  for cash at $2.50 per      |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| share                  pursuant to a private         |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| placement                  in November, 2003         |   |   | -      |   |   | -      |   |   | 100,000   |   |   | 10         |   |   | 249,990     |   |   | -        |   |   | -      |   |   | -      |   |   | 250,000   |   |
|                                                 |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| Common                  stock subscribed in          |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| exchange                  for cash at $2.50 per      |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| share                  pursuant to a private         |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| placement                  in December, 2003         |   |   | -      |   |   | -      |   |   | 6,400     |   |   | 1          |   |   | 15,999      |   |   | -        |   |   | -      |   |   | -      |   |   | 16,000    |   |
|                                                 |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| Common                  stock issued in              |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| exchange                  for consulting services    |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| at                  approximately $2.59 per          |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| share                  in December 2003              |   |   | -      |   |   | -      |   |   | 2,125,500 |   |   | 213        |   |   | 5,504,737   |   |   | -        |   |   | -      |   |   | -      |   |   | 5,504,950 |   |
|                                                 |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| Common                  Stock subscribed to          |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| at                  $2.50 per share in December 2003 |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
|                                                 |   |   |   |   |   | -      |   |   | -         |   |   | -          |   |   | -           |   |   | 104,000  |   |   | -      |   |   | -      |   |   | 104,000   |   |
| Beneficial                  conversion feature       |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| relating                  to notes payable           |   |   | -      |   |   | -      |   |   | -         |   |   | -          |   |   | 1,168,474   |   |   | -        |   |   | -      |   |   | -      |   |   | 1,168,474 |   |
|                                                 |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| Beneficial                  conversion feature       |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| relating                  to warrants                |   |   | -      |   |   | -      |   |   | -         |   |   | -          |   |   | 206,526     |   |   | -        |   |   | -      |   |   | -      |   |   | 206,526   |   |
|                                                 |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| Adjust                  common stock par value       |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| from                  $0.0001 to $0.50 per share,    |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| per                  amendment of articles dated     |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| in                  December 2004                    |   |   | -      |   |   | -      |   |   | -         |   |   | 10,223,166 |   |   | (10,223,166 | )      |   | -        |   |   | -      |   |   | -      |   |   | -         |   |
|                                                 |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| Common                  Stock issued pursuant        |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| to                  subscription at $2.50 share      |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |
| in                  January 2004                     |   |   | -      |   |   | -      |   |   | 41,600    |   |   | 20,800     |   |   | 83,200      |   |   | (104,000 | )      |   | -      |   |   | -      |   |   | -         |   |
|                                                 |   |   |   |   |   |   |   |   |      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |      |   |

----

| APPLIED                      DNA SCIENCES, INC                                                                                                        |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (A                      development stage company)                                                                                                    |   |
| CONDENSED                      CONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY,                      (DEFICIENCY)                                      |   |
| FOR                      THE PERIOD SEPTEMBER 16, 2002 (DATE OF INCEPTION) THROUGH JUNE                      30,                      2007(unaudited) |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Deficit |   |   |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   | Additional |   |   |   |   |   | Accumulated |   |   |   |
|                                                                                                                                                  |   |   |   | Preferred |   |   |   | Common |   | Paid                      in |   | Common |   | Stock |   | During |   |   |   |
|                                                                                                                                                  |   | Preferred |   | Shares |   | Common |   | Stock |   | Capital |   | Stock |   | Subscription |   | Development |   |   |   |
|                                                                                                                                                  |   | Shares |   | Amount |   | Shares |   | Amount |   | Amount |   | Subscribed |   | Receivable |   | Stage |   | Total |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| Common                  stock issued in              |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
|------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|
| exchange                  for consulting services    |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| at                  $2.95 per share in January 2004  |   |   | -      |   |   | -      |   |   | 13,040  |   |   | 6,520   |   |   | 31,948  |   |   | -      |   |   | -      |   |   | -      |   |   | 38,468  |   |
|                                                 |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Common                  stock issued in              |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| exchange                  for consulting services    |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| at                  $2.60 per share in January 2004  |   |   | -      |   |   | -      |   |   | 123,000 |   |   | 61,500  |   |   | 258,300 |   |   | -      |   |   | -      |   |   | -      |   |   | 319,800 |   |
|                                                 |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Common                  stock issued in              |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| exchange                  for consulting services    |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| at                  $3.05 per share in January 2004  |   |   | -      |   |   | -      |   |   | 1,000   |   |   | 500     |   |   | 2,550   |   |   | -      |   |   | -      |   |   | -      |   |   | 3,050   |   |
|                                                 |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Common                  stock issued in              |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| exchange                  for employee services      |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| at                  $3.07 per share in February 2004 |   |   | -      |   |   | -      |   |   | 6,283   |   |   | 3,142   |   |   | 16,147  |   |   | -      |   |   | -      |   |   | -      |   |   | 19,289  |   |
|                                                 |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Common                  stock issued in              |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| exchange                  for consulting services    |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| at                  $3.04 per share in March 2004    |   |   | -      |   |   | -      |   |   | 44,740  |   |   | 22,370  |   |   | 113,640 |   |   | -      |   |   | -      |   |   | -      |   |   | 136,010 |   |
|                                                 |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Common                  Stock issued for             |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| options                  exercised at $1.00 per      |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| share                  in March 2004                 |   |   | -      |   |   | -      |   |   | 55,000  |   |   | 27,500  |   |   | 27,500  |   |   | -      |   |   | -      |   |   | -      |   |   | 55,000  |   |
|                                                 |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Common                  stock issued in              |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| exchange                  for employee services      |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| at                  $3.00 per share in March 2004    |   |   | -      |   |   | -      |   |   | 5,443   |   |   | 2,722   |   |   | 13,623  |   |   | -      |   |   | -      |   |   | -      |   |   | 16,345  |   |
|                                                 |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Common                  stock issued in              |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| exchange                  for employee services      |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| at                  $3.15 per share in March 2004    |   |   | -      |   |   | -      |   |   | 5,769   |   |   | 2,885   |   |   | 15,292  |   |   | -      |   |   | -      |   |   | -      |   |   | 18,177  |   |
|                                                 |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Preferred                  shared converted to       |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| common                  shares for consulting        |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| services                  at $3.00 per share in      |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| March                  2004                          |   |   | (5,000 | )      |   | (5     | )      |   | 125,000 |   |   | 62,500  |   |   | 312,500 |   |   | -      |   |   | -      |   |   | -      |   |   | 374,995 |   |
|                                                 |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Common                  stock issued in              |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| exchange                  for employee services      |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| at                  $3.03 per share in March 2004    |   |   | -      |   |   | -      |   |   | 8,806   |   |   | 4,400   |   |   | 22,238  |   |   | -      |   |   | -      |   |   | -      |   |   | 26,638  |   |
|                                                 |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Common                  Stock issued pursuant        |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| to                  subscription at $2.50 per        |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| share                  in March 2004                 |   |   | -      |   |   | -      |   |   | 22,500  |   |   | 11,250  |   |   | (9,000  | )      |   | -      |   |   | -      |   |   | -      |   |   | 2,250   |   |
|                                                 |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Beneficial                  Conversion Feature       |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| relating                  to Notes Payable           |   |   |   |   |   |   |   |   | -       |   |   | -       |   |   | 122,362 |   |   | -      |   |   | -      |   |   | -      |   |   | 122,362 |   |
|                                                 |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Beneficial                  Conversion Feature       |   |   | -      |   |   | -      |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| relating                  to Warrants                |   |   |   |   |   |   |   |   | -       |   |   | -       |   |   | 177,638 |   |   | -      |   |   | -      |   |   | -      |   |   | 177,638 |   |
|                                                 |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Common                  stock issued in              |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| exchange                  for consulting services    |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| at                  $2.58 per share in April 2004    |   |   | -      |   |   | -      |   |   | 9,860   |   |   | 4,930   |   |   | 20,511  |   |   | -      |   |   | -      |   |   | -      |   |   | 25,441  |   |
|                                                 |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Common                  stock issued in              |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| exchange                  for consulting services    |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| at                  $2.35 per share in April 2004    |   |   | -      |   |   | -      |   |   | 11,712  |   |   | 5,856   |   |   | 21,667  |   |   | -      |   |   | -      |   |   | -      |   |   | 27,523  |   |
|                                                 |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Common                  stock issued in              |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| exchange                  for consulting services    |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| at                  $1.50 per share in April 2004    |   |   | -      |   |   | -      |   |   | 367,500 |   |   | 183,750 |   |   | 367,500 |   |   | -      |   |   | -      |   |   | -      |   |   | 551,250 |   |
|                                                 |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |

----

| APPLIED                      DNA SCIENCES, INC                                                                                                        |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (A                      development stage company)                                                                                                    |   |
| CONDENSED                      CONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY,                      (DEFICIENCY)                                      |   |
| FOR                      THE PERIOD SEPTEMBER 16, 2002 (DATE OF INCEPTION) THROUGH JUNE                      30,                      2007(unaudited) |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Deficit |   |   |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   | Additional |   |   |   |   |   | Accumulated |   |   |   |
|                                                                                                                                                  |   |   |   | Preferred |   |   |   | Common |   | Paid                      in |   | Common |   | Stock |   | During |   |   |   |
|                                                                                                                                                  |   | Preferred |   | Shares |   | Common |   | Stock |   | Capital |   | Stock |   | Subscription |   | Development |   |   |   |
|                                                                                                                                                  |   | Shares |   | Amount |   | Shares |   | Amount |   | Amount |   | Subscribed |   | Receivable |   | Stage |   | Total |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| Common                  stock returned to         |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
|---------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|---------|--------|
| treasury                  at $0.065 per share in  |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| April                  2004                       |   |   | -      |   |   | -      |   |   | (50,000 | )      |   | (25,000 | )      |   | 21,750  |   |   | -      |   |   | -      |   |   | -       |   |   | (3,250  | )      |
|                                              |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| Preferred                  stock converted to     |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| common                  stock for consulting      |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| services                  at $1.01 per share      |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| in                  May 2004                      |   |   | (4,000 | )      |   | (4     | )      |   | 100,000 |   |   | 50,000  |   |   | 51,250  |   |   | -      |   |   | -      |   |   | -       |   |   | 101,246 |   |
|                                              |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| Common                  stock issued per          |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| subscription                  in May 2004         |   |   | -      |   |   | -      |   |   | 10,000  |   |   | 5,000   |   |   | (4,000  | )      |   | -      |   |   | (1,000 | )      |   | -       |   |   | -       |   |
|                                              |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| Common                  stock issued in           |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| exchange                  for consulting          |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| services                  at $0.86 per            |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| share                  in May 2004                |   |   | -      |   |   | -      |   |   | 137,000 |   |   | 68,500  |   |   | 50,730  |   |   | -      |   |   | -      |   |   | -       |   |   | 119,230 |   |
|                                              |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| Common                  stock issued in           |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| exchange                  for consulting          |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| services                  at $1.15 per            |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| share                  in May 2004                |   |   | -      |   |   | -      |   |   | 26,380  |   |   | 13,190  |   |   | 17,147  |   |   | -      |   |   | -      |   |   |  - |   |   | 30,337  |   |
|                                              |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| Common                  stock returned to         |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| treasury                  at $0.065 per           |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| share                  in June 2004               |   |   | -      |   |   | -      |   |   | (5,000  | )      |   | (2,500  | )      |   | 2,175   |   |   | -      |   |   | -      |   |   | -       |   |   | (325    | )      |
|                                              |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| Common                  stock issued in           |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| exchange                  for consulting          |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| services                  at $0.67 per            |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| share                  in June 2004               |   |   | -      |   |   | -      |   |   | 270,500 |   |   | 135,250 |   |   | 45,310  |   |   | -      |   |   | -      |   |   | -       |   |   | 180,560 |   |
|                                              |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| Common                  stock issued in           |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| exchange                  for consulting services |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| at                  $0.89 per share in June 2004  |   |   | -      |   |   | -      |   |   | 8,000   |   |   | 4,000   |   |   | 3,120   |   |   | -      |   |   | -      |   |   | -       |   |   | 7,120   |   |
|                                              |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| Common                  stock issued in           |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| exchange                  for consulting services |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| at                  $0.65 per share in June 2004  |   |   | -      |   |   | -      |   |   | 50,000  |   |   | 25,000  |   |   | 7,250   |   |   | -      |   |   | -      |   |   | -       |   |   | 32,250  |   |
|                                              |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| Common                  stock issued pursuant     |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| to                  a private placement at $1.00  |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| per                  share in June 2004           |   |   | -      |   |   | -      |   |   | 250,000 |   |   | 125,000 |   |   | 125,000 |   |   | -      |   |   | -      |   |   | -       |   |   | 250,000 |   |
|                                              |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| Common                  stock issued in           |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| exchange                  for consulting services |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| at                  $0.54 per share in July 2004  |   |   | -      |   |   | -      |   |   | 100,000 |   |   | 50,000  |   |   | 4,000   |   |   | -      |   |   | -      |   |   | -       |   |   | 54,000  |   |
|                                              |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| Common                  stock issued in           |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| exchange                  for consulting services |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| at                  $0.72 per share in July 2004  |   |   | -      |   |   | -      |   |   | 5,000   |   |   | 2,500   |   |   | 1,100   |   |   | -      |   |   | -      |   |   | -       |   |   | 3,600   |   |
|                                              |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| Common                  stock issued in           |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| exchange                  for consulting services |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| at                  $0.47 per share in July 2004  |   |   | -      |   |   | -      |   |   | 100,000 |   |   | 50,000  |   |   | (2,749  | )      |   | -      |   |   | -      |   |   | -       |   |   | 47,251  |   |
|                                              |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| Common                  stock issued in           |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| exchange                  for consulting          |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| services                  at $0.39 per            |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |
| share                  in August 2004             |   |   | -      |   |   | -      |   |   | 100,000 |   |   | 50,000  |   |   | (11,000 | )      |   | -      |   |   | -      |   |   | -       |   |   | 39,000  |   |
|                                              |   |   |   |   |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |   |   |    |   |

----

| APPLIED                        DNA SCIENCES, INC                                                                                                            |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (A                        development stage company)                                                                                                        |   |
| CONDENSED                        CONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY,                        (DEFICIENCY)                                        |   |
| FOR                        THE PERIOD SEPTEMBER 16, 2002 (DATE OF INCEPTION) THROUGH                        JUNE 30,                        2007(unaudited) |   |
|                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Deficit |   |   |   |
|                                                                                                                                                        |   |   |   |   |   |   |   |   |   | Additional |   |   |   |   |   | Accumulated |   |   |   |
|                                                                                                                                                        |   |   |   | Preferred |   |   |   | Common |   | Paid                        in |   | Common |   | Stock |   | During |   |   |   |
|                                                                                                                                                        |   | Preferred |   | Shares |   | Common |   | Stock |   | Capital |   | Stock |   | Subscription |   | Development |   |   |   |
|                                                                                                                                                        |   | Shares |   | Amount |   | Shares |   | Amount |   | Amount |   | Subscribed |   | Receivable |   | Stage |   | Total |   |
|                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| Preferred                  stock converted          |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
|-----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|--------|------------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|--------|-------------|--------|--------|-------------|--------|
| to                  common stock for                |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| consulting                  services at             |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| $0.39                  per share in August 2004     |   |   | (2,000 | )      |   | (2     | )      |   | 50,000     |   |   | 25,000     |   |   | (5,500    | )      |   | -      |   |   | -      |   |   | -           |   |   | 19,498      |   |
|                                                |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| Common                  stock issued in             |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| exchange                  for consulting            |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| services                  at $0.50 per              |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| share                  in August 2004               |   |   | -      |   |   | -      |   |   | 100,000    |   |   | 50,000     |   |   | 250       |   |   | -      |   |   | -      |   |   | -           |   |   | 50,250      |   |
|                                                |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| Common                  stock issued in             |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| exchange                  for consulting            |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| services                  at $0.56 per              |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| share                  in August 2004               |   |   | -      |   |   | -      |   |   | 200,000    |   |   | 100,000    |   |   | 12,500    |   |   | -      |   |   | -      |   |   | -           |   |   | 112,500     |   |
|                                                |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| Common                  stock issued in             |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| exchange                  for consulting            |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| services                  at $0.41 per              |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| share                  in August 2004               |   |   | -      |   |   | -      |   |   | 92,500     |   |   | 46,250     |   |   | (8,605    | )      |   | -      |   |   | -      |   |   | -           |   |   | 37,645      |   |
|                                                |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| Common                  stock issued in             |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| exchange                  for consulting            |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| services                  at $0.52 per              |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| share                  in September 2004            |   |   | -      |   |   | -      |   |   | 1,000,000  |   |   | 500,000    |   |   | 17,500    |   |   | -      |   |   | -      |   |   | -           |   |   | 517,500     |   |
|                                                |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| Common                  stock issued in             |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| exchange                  for consulting            |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| services                  at $0.46 per              |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| share                  in September 2004            |   |   | -      |   |   | -      |   |   | 5,000      |   |   | 2,500      |   |   | (212      | )      |   | -      |   |   | -      |   |   | -           |   |   | 2,288       |   |
|                                                |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| Common                  stock issued pursuant       |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| to                  subscription at $0.50 per       |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| share                  in September 2004            |   |   | -      |   |   | -      |   |   | 40,000     |   |   | 20,000     |   |   | -         |   |   | -      |   |   | -      |   |   | -           |   |   | 20,000      |   |
|                                                |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| Preferred                  shares converted to      |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| common                  stock for consulting        |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| services                  at $0.41 per share in     |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| September                  2004                     |   |   | (4,000 | )      |   | (4     | )      |   | 100,000    |   |   | 50,000     |   |   | 4,000     |   |   | -      |   |   | -      |   |   | -           |   |   | 53,996      |   |
|                                                |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| Preferred                  shares issued in         |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| exchange                  for service at $25 per    |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| share                  in September 2004            |   |   | 60,000 |   |   | 6      |   |   | -          |   |   | -          |   |   | 1,499,994 |   |   | -      |   |   | -      |   |   | -           |   |   | 1,500,000   |   |
|                                                |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| Fair                  value of 2,841,000 warrants   |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| issued                  to non-employees and        |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| consultants                  for services rendered  |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| at                  approximately $0.71 per warrant |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| in                  September 2004                  |   |   | -      |   |   | -      |   |   | -          |   |   | -          |   |   | 2,019,862 |   |   | -      |   |   | -      |   |   | -           |   |   | 2,019,862   |   |
|                                                |   |   |   |   |   |   |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |        |   |   |        |   |
| Net                  Loss                           |   |   | -      |   |   | -      |   |   | -          |   |   | -          |   |   | -         |   |   | -      |   |   | -      |   |   | (19,358,258 | )      |   | (19,358,258 | )      |
| Balance                  at September 30, 2004      |   |   | 60,000 |   | $      | 6      |   |   | 23,981,054 |   | $      | 11,990,527 |   | $      | 6,118,993 |   | $      | -      |   | $      | (1,000 | )      | $      | (22,815,034 | )      | $      | (4,706,508  | )      |

----

| APPLIED                          DNA SCIENCES, INC                                                                                                                |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (A                          development stage company)                                                                                                            |   |
| CONDENSED                          CONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY,                          (DEFICIENCY)                                          |   |
| FOR                          THE PERIOD SEPTEMBER 16, 2002 (DATE OF INCEPTION) THROUGH                          JUNE 30,                          2007(unaudited) |   |
|                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Deficit |   |   |   |
|                                                                                                                                                              |   |   |   |   |   |   |   |   |   | Additional |   |   |   |   |   | Accumulated |   |   |   |
|                                                                                                                                                              |   |   |   | Preferred |   |   |   | Common |   | Paid                          in |   | Common |   | Stock |   | During |   |   |   |
|                                                                                                                                                              |   | Preferred |   | Shares |   | Common |   | Stock |   | Capital |   | Stock |   | Subscription |   | Development |   |   |   |
|                                                                                                                                                              |   | Shares |   | Amount |   | Shares |   | Amount |   | Amount |   | Subscribed |   | Receivable |   | Stage |   | Total |   |
|                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| Common                  stock issued in               |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
|-------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|--------|-----------|--------|--------|------------|--------|--------|----------|--------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|
| exchange                  for consulting services     |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| at                    $0.68 per share in October 2004 |   |   | -      |   |   | -      |   |   | 200,000    |   |   | 100,000   |   |   | 36,000     |   |   | -        |   |   | -      |   |   | -      |   |   | 136,000   |   |
|                                                  |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| Common                  stock returned                |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| to                  treasury at $0.60 per share       |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| in                  October 2004                      |   |   | -      |   |   | -      |   |   | (1,069,600 | )      |   | (534,800  | )      |   | (107,297   | )      |   | -        |   |   | -      |   |   | -      |   |   | (642,097  | )      |
|                                                  |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| Common                  stock issued in               |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| exchange                  for consulting services     |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| at                  $0.60 per share in October 2004   |   |   | -      |   |   | -      |   |   | 82,500     |   |   | 41,250    |   |   | 8,250      |   |   | -        |   |   | -      |   |   | -      |   |   | 49,500    |   |
|                                                  |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| Common                  Stock issued pursuant         |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| to                  subscription at $0.60 per share   |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| in                  October 2004                      |   |   | -      |   |   | -      |   |   | 500,000    |   |   | 250,000   |   |   | 50,000     |   |   | (300,000 | )      |   | -      |   |   | -      |   |   | -         |   |
|                                                  |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| Common                  stock issued in               |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| exchange                  for consulting services     |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| at                  $0.50 per share in October 2004   |   |   | -      |   |   | -      |   |   | 532,500    |   |   | 266,250   |   |   | -          |   |   | -        |   |   | -      |   |   | -      |   |   | 266,250   |   |
|                                                  |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| Common                  Stock issued in               |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| exchange                  for debt at $0.50 per       |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| share                  in October 2004                |   |   | -      |   |   | -      |   |   | 500,000    |   |   | 250,000   |   |   | -          |   |   | -        |   |   | -      |   |   | -      |   |   | 250,000   |   |
|                                                  |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| Common                  Stock issued pursuant         |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| to                  subscription at $0.45 per share   |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| in                  October 2004                      |   |   | -      |   |   | -      |   |   | 1,000,000  |   |   | 500,000   |   |   | (50,000    | )      |   | (450,000 | )      |   | -      |   |   | -      |   |   | -         |   |
|                                                  |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| Common                  stock issued in               |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| exchange                  for consulting services     |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| at                  $0.45 per share in October 2004   |   |   | -      |   |   | -      |   |   | 315,000    |   |   | 157,500   |   |   | (15,750    | )      |   | -        |   |   | -      |   |   | -      |   |   | 141,750   |   |
|                                                  |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| Common                  Stock issued in               |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| exchange                  for consulting              |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| services                  at $0.47 per share          |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| in                  November 2004                     |   |   | -      |   |   | -      |   |   | 100,000    |   |   | 50,000    |   |   | (3,000     | )      |   | -        |   |   | -      |   |   | -      |   |   | 47,000    |   |
|                                                  |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| Common                  Stock issued in               |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| exchange                  for consulting              |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| services                  at $0.8 0 per share         |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| in                  November 2004                     |   |   | -      |   |   | -      |   |   | 300,000    |   |   | 150,000   |   |   | 90,000     |   |   | -        |   |   | -      |   |   | -      |   |   | 240,000   |   |
|                                                  |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| Common                  Stock issued in               |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| exchange                  for consulting              |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| services                  at $1.44 per share          |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| in                  November 2004                     |   |   | -      |   |   | -      |   |   | 115,000    |   |   | 57,500    |   |   | 108,100    |   |   | -        |   |   | -      |   |   | -      |   |   | 165,600   |   |
|                                                  |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| Common                  Stock issued in               |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| exchange                  for employee                |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| services                  at $1.44 per share          |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| in                  November 2004                     |   |   | -      |   |   | -      |   |   | 5,000      |   |   | 2,500     |   |   | 4,700      |   |   | -        |   |   | -      |   |   | -      |   |   | 7,200     |   |
|                                                  |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| Warrants                  exercised                   |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| at                  $0.60 per share                   |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| in                  November 2004                     |   |   | -      |   |   | -      |   |   | 60,000     |   |   | 30,000    |   |   | 6,000      |   |   | (4,000   | )      |   | -      |   |   | -      |   |   | 32,000    |   |
|                                                  |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| Beneficial                  Conversion discount       |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| relating                  to Notes Payable            |   |   | -      |   |   | -      |   |   | -          |   |   | -         |   |   | 1,465,000  |   |   | -        |   |   | -      |   |   | -      |   |   | 1,465,000 |   |
|                                                  |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| Common                  stock issued at $0.016        |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| per                  share in exchange for note       |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| payable                  in December 2004             |   |   | -      |   |   | -      |   |   | 5,500,000  |   |   | 2,750,000 |   |   | (2,661,500 | )      |   | -        |   |   | -      |   |   | -      |   |   | 88,500    |   |
|                                                  |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| Common                  stock issued in               |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| settlement                  of debt at $0.50 per      |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |
| share                  in December 2004               |   |   | -      |   |   | -      |   |   | 2,930,000  |   |   | 1,465,000 |   |   | -          |   |   | (125,000 | )      |   | -      |   |   | -      |   |   | 1,340,000 |   |
|                                                  |   |   |   |   |   |   |   |   |       |   |   |      |   |   |       |   |   |     |   |   |   |   |   |   |   |   |      |   |

----

| APPLIED                            DNA SCIENCES, INC                                                                                                                    |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (A                            development stage company)                                                                                                                |   |
| CONDENSED                            CONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY,                            (DEFICIENCY)                                            |   |
| FOR                            THE PERIOD SEPTEMBER 16, 2002 (DATE OF INCEPTION) THROUGH                            JUNE 30,                            2007(unaudited) |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Deficit |   |   |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |   | Additional |   |   |   |   |   | Accumulated |   |   |   |
|                                                                                                                                                                    |   |   |   | Preferred |   |   |   | Common |   | Paid                            in |   | Common |   | Stock |   | During |   |   |   |
|                                                                                                                                                                    |   | Preferred |   | Shares |   | Common |   | Stock |   | Capital |   | Stock |   | Subscription |   | Development |   |   |   |
|                                                                                                                                                                    |   | Shares |   | Amount |   | Shares |   | Amount |   | Amount |   | Subscribed |   | Receivable |   | Stage |   | Total |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| Fair                  value of 6,063,500 warrants     |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
|-------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|--------|-----------|--------|--------|------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|
| issued                  to non employees and          |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| consultants                  for services rendered    |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| at                  $0.52 per warrant in October      |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| and                  December 2004                    |   |   | -      |   |   | -      |   |   | -         |   |   | -         |   |   | 3,169,052  |   |   | -      |   |   | -      |   |   | -      |   |   | 3,169,052  |   |
|                                                  |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| Warrants                  exercised at $0.10 per      |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| share                  in January 2005                |   |   | -      |   |   | -      |   |   | 25,000    |   |   | 12,500    |   |   | (10,000    | )      |   | -      |   |   | -      |   |   | -      |   |   | 2,500      |   |
|                                                  |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| Common                  Stock issued in               |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| settlement                  of debt at $0.33 per      |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| share                  in January 2005                |   |   | -      |   |   | -      |   |   | 1,628,789 |   |   | 814,395   |   |   | (276,895   | )      |   | -      |   |   | -      |   |   | -      |   |   | 537,500    |   |
|                                                  |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| Warrants                  exercised at $0.10 per      |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| share                  in January 2005                |   |   | -      |   |   | -      |   |   | 17,500    |   |   | 8,750     |   |   | (7,000     | )      |   | -      |   |   | -      |   |   | -      |   |   | 1,750      |   |
|                                                  |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| Common                  Stock issued in               |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| settlement                  of debt at $0.33 per      |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| share                  in January 2005                |   |   | -      |   |   | -      |   |   | 2,399,012 |   |   | 1,199,504 |   |   | (407,830   | )      |   | -      |   |   | -      |   |   | -      |   |   | 791,674    |   |
|                                                  |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| Common                  Stock issued in               |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| exchange                  for consulting              |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| services                  at $1.30 per share          |   |   | -      |   |   | -      |   |   | 315,636   |   |   | 157,818   |   |   | 252,508    |   |   | -      |   |   | -      |   |   | -      |   |   | 410,326    |   |
| in                  January 2005                      |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
|                                                  |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| Fair                  value of warrant liability      |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| reclassed                  due to registration rights |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| granted                  in February 2005             |   |   | -      |   |   | -      |   |   | -         |   |   | -         |   |   | (3,108,851 | )      |   | -      |   |   | -      |   |   | -      |   |   | (3,108,851 | )      |
|                                                  |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| Common                  Stock issued in               |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| exchange                  for consulting              |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| services                  at $1.44 per share          |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| in                  February 2005                     |   |   | -      |   |   | -      |   |   | 5,796,785 |   |   | 2,898,393 |   |   | 5,418,814  |   |   | -      |   |   | -      |   |   | -      |   |   | 8,317,207  |   |
|                                                  |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| Fair                  value of 55,000 warrants issued |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| to                  consultants for services at $1.31 |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| per                  warrant in February 2005         |   |   | -      |   |   | -      |   |   | -         |   |   | -         |   |   | 72,017     |   |   | -      |   |   | -      |   |   | -      |   |   | 72,017     |   |
|                                                  |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| Common                  Stock issued in               |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| settlement                  of debt at $0.33 per      |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| share                  in February 2005               |   |   | -      |   |   | -      |   |   | 75,757    |   |   | 37,879    |   |   | (12,879    | )      |   | -      |   |   | -      |   |   | -      |   |   | 25,000     |   |
|                                                  |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| Warrants                  exercised at $0.10 per      |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| share                  in February 2005               |   |   | -      |   |   | -      |   |   | 20,000    |   |   | 10,000    |   |   | (8,000     | )      |   | -      |   |   | -      |   |   | -      |   |   | 2,000      |   |
|                                                  |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| Common                  Stock issued in               |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| settlement                  of debt at $0.33 per      |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| share                  in February 2005               |   |   | -      |   |   | -      |   |   | 606,060   |   |   | 303,030   |   |   | (103,030   | )      |   | -      |   |   | -      |   |   | -      |   |   | 200,000    |   |
|                                                  |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| Warrants                  exercised at $0.10 per      |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| share                  in February 2005               |   |   | -      |   |   | -      |   |   | 45,000    |   |   | 22,500    |   |   | (18,000    | )      |   | -      |   |   | -      |   |   | -      |   |   | 4,500      |   |
|                                                  |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| Common                  Stock issued in               |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| exchange                  for related party debt      |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| at                  $1.31 per share in February       |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| 2005                                                  |   |   | -      |   |   | -      |   |   | 1,500,000 |   |   | 750,000   |   |   | 1,215,000  |   |   | -      |   |   | -      |   |   | -      |   |   | 1,965,000  |   |
|                                                  |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| Common                  Stock issued in               |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| settlement                  of debt at $0.33 per      |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |
| share                  in February 2005               |   |   | -      |   |   | -      |   |   | 278,433   |   |   | 139,217   |   |   | (47,334    | )      |   | -      |   |   | -      |   |   | -      |   |   | 91,883     |   |
|                                                  |   |   |   |   |   |   |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |       |   |

----

| APPLIED                            DNA SCIENCES, INC                                                                                                                    |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (A                            development stage company)                                                                                                                |   |
| CONDENSED                            CONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY,                            (DEFICIENCY)                                            |   |
| FOR                            THE PERIOD SEPTEMBER 16, 2002 (DATE OF INCEPTION) THROUGH                            JUNE 30,                            2007(unaudited) |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Deficit |   |   |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |   | Additional |   |   |   |   |   | Accumulated |   |   |   |
|                                                                                                                                                                    |   |   |   | Preferred |   |   |   | Common |   | Paid                            in |   | Common |   | Stock |   | During |   |   |   |
|                                                                                                                                                                    |   | Preferred |   | Shares |   | Common |   | Stock |   | Capital |   | Stock |   | Subscription |   | Development |   |   |   |
|                                                                                                                                                                    |   | Shares |   | Amount |   | Shares |   | Amount |   | Amount |   | Subscribed |   | Receivable |   | Stage |   | Total |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| Common                  Stock issued in           |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
|---------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|--------|-----------|--------|--------|---------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|
| exchange                  for consulting services |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| at                  $1.17 per share in February   |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| 2005                                              |   |   | -      |   |   | -      |   |   | 17,236     |   |   | 8,618     |   |   | 11,548  |   |   | -       |   |   | -      |   |   | -      |   |   | 20,166    |   |
|                                              |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| Common                  stock issued in           |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| exchange                  for debt at $0.50 per   |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| share                  in February 2005           |   |   | -      |   |   | -      |   |   | 300,000    |   |   | 150,000   |   |   | -       |   |   | -       |   |   | -      |   |   | -      |   |   | 150,000   |   |
|                                              |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| Common                  Stock issued in           |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| exchange                  for consulting          |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| services                  at $0.95 per share      |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| in                  February 2005                 |   |   | -      |   |   | -      |   |   | 716,500    |   |   | 358,250   |   |   | 322,425 |   |   | -       |   |   | -      |   |   | -      |   |   | 680,675   |   |
|                                              |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| Common                  Stock issued in           |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| exchange                  for consulting          |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| services                  at $0.95 per share      |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| in                  February 2005                 |   |   | -      |   |   | -      |   |   | 10,500     |   |   | 5,250     |   |   | 4,725   |   |   | -       |   |   | -      |   |   | -      |   |   | 9,975     |   |
|                                              |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| Common                  stock issued in           |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| exchange                  for debt at $0.50 per   |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| share                  in March 2005              |   |   | -      |   |   | -      |   |   | 13,202,000 |   |   | 6,601,000 |   |   | -       |   |   | -       |   |   | -      |   |   | -      |   |   | 6,601,000 |   |
|                                              |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| Common                  Stock issued in           |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| exchange                  for consulting          |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| services                  at $1.19 per share      |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| in                  March 2005                    |   |   | -      |   |   | -      |   |   | 185,000    |   |   | 92,500    |   |   | 127,650 |   |   | -       |   |   | -      |   |   | -      |   |   | 220,150   |   |
|                                              |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| Options                  exercised at $0.60 per   |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| share                  in March 2005              |   |   | -      |   |   | -      |   |   | 100,000    |   |   | 50,000    |   |   | 10,000  |   |   | -       |   |   | -      |   |   | -      |   |   | 60,000    |   |
|                                              |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| Common                  Stock issued in           |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| exchange                  for consulting          |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| services                  at $0.98 per share      |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| in                  March 2005                    |   |   | -      |   |   | -      |   |   | 1,675,272  |   |   | 837,636   |   |   | 804,131 |   |   | -       |   |   | -      |   |   | -      |   |   | 1,641,767 |   |
|                                              |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| Common                  Stock issued in           |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| exchange                  for consulting          |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| services                  at $0.92 per share      |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| in                  March 2005                    |   |   | -      |   |   | -      |   |   | 24,333     |   |   | 12,167    |   |   | 10,219  |   |   | -       |   |   | -      |   |   | -      |   |   | 22,386    |   |
|                                              |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| Common                  Stock issued in           |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| exchange                  for consulting          |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| services                  at $0.99 per share      |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| in                  March 2005                    |   |   | -      |   |   | -      |   |   | 15,000     |   |   | 7,500     |   |   | 7,350   |   |   | -       |   |   | -      |   |   | -      |   |   | 14,850    |   |
|                                              |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| Common                  stock issued in exchange  |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| for                  debt at $0.50 per share      |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| in                  March 2005                    |   |   | -      |   |   | -      |   |   | 1,240,000  |   |   | 620,000   |   |   | -       |   |   | -       |   |   | -      |   |   | -      |   |   | 620,000   |   |
|                                              |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| Common                  stock canceled for        |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| shares                  issued in exchange of     |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| debt                  in March 2005               |   |   | -      |   |   | -      |   |   | (500,000   | )      |   | (250,000  | )      |   | -       |   |   | -       |   |   | -      |   |   | -      |   |   | (250,000  | )      |
|                                              |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| Common                  stock subscribed          |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| canceled                  in March 2005           |   |   | -      |   |   | -      |   |   | -          |   |   | -         |   |   | -       |   |   | 750,000 |   |   | -      |   |   | -      |   |   | 750,000   |   |
|                                              |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| Common                  Stock issued in           |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| exchange                  for consulting          |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| services                  at $0.89 per share      |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |
| in                  March 2005                    |   |   | -      |   |   | -      |   |   | 10,000     |   |   | 5,000     |   |   | 3,900   |   |   | -       |   |   | -      |   |   | -      |   |   | 8,900     |   |
|                                              |   |   |   |   |   |   |   |   |       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |   |      |   |

----

| APPLIED                            DNA SCIENCES, INC                                                                                                                    |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (A                            development stage company)                                                                                                                |   |
| CONDENSED                            CONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY,                            (DEFICIENCY)                                            |   |
| FOR                            THE PERIOD SEPTEMBER 16, 2002 (DATE OF INCEPTION) THROUGH                            JUNE 30,                            2007(unaudited) |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Deficit |   |   |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |   | Additional |   |   |   |   |   | Accumulated |   |   |   |
|                                                                                                                                                                    |   |   |   | Preferred |   |   |   | Common |   | Paid                            in |   | Common |   | Stock |   | During |   |   |   |
|                                                                                                                                                                    |   | Preferred |   | Shares |   | Common |   | Stock |   | Capital |   | Stock |   | Subscription |   | Development |   |   |   |
|                                                                                                                                                                    |   | Shares |   | Amount |   | Shares |   | Amount |   | Amount |   | Subscribed |   | Receivable |   | Stage |   | Total |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| Adjust                  common stock par value     |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
|----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|-------------|--------|--------|------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|
| from                  $0.50 to $0.001 per share,   |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| per                  amendment of Articles of      |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| Incorporation                  in March-05         |   |   | -      |   |   | -      |   |   | -       |   |   | (32,312,879 | )      |   | 32,312,879 |   |   | -       |   |   | -      |   |   | -      |   |   | -         |   |
|                                               |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| Beneficial                  Conversion discount    |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| relating                  to Notes Payable in      |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| March                  2005                        |   |   | -      |   |   | -      |   |   | -       |   |   | -           |   |   | 7,371,000  |   |   | -       |   |   | -      |   |   | -      |   |   | 7,371,000 |   |
|                                               |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| Stock                  options granted to          |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| employees                  in exchange for         |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| services                  rendered, at exercise    |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| price                  below fair value of common  |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| stock                  in March 2005               |   |   | -      |   |   | -      |   |   | -       |   |   | -           |   |   | 180,000    |   |   | -       |   |   | -      |   |   | -      |   |   | 180,000   |   |
|                                               |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| Common                  Stock issued in            |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| exchange                  for consulting services  |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| at                  $0.80 per share in April 2005  |   |   | -      |   |   | -      |   |   | 160,000 |   |   | 160         |   |   | 127,840    |   |   | -       |   |   | -      |   |   | -      |   |   | 128,000   |   |
|                                               |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| Common                  Stock issued in            |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| exchange                  for consulting services  |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| at                  $0.80 per share in April 2005  |   |   | -      |   |   | -      |   |   | 40,000  |   |   | 40          |   |   | 31,960     |   |   | -       |   |   | -      |   |   | -      |   |   | 32,000    |   |
|                                               |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| Common                  Stock issued in            |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| exchange                  for consulting services  |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| at                  $0.75 per share in April 2005  |   |   | -      |   |   | -      |   |   | 850,000 |   |   | 850         |   |   | 636,650    |   |   | -       |   |   | -      |   |   | -      |   |   | 637,500   |   |
|                                               |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| Common                  Stock issued in            |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| exchange                  for consulting services  |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| at                  $0.33 per share in April 2005  |   |   | -      |   |   | -      |   |   | 500,000 |   |   | 500         |   |   | 164,500    |   |   | -       |   |   | -      |   |   | -      |   |   | 165,000   |   |
|                                               |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| Common                  Stock canceled during      |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| April                  2005, previously issued for |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| services                  rendered at $3.42 per    |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| share                                              |   |   | -      |   |   | -      |   |   | (10,000 | )      |   | (10         | )      |   | (34,190    | )      |   | -       |   |   | -      |   |   | -      |   |   | (34,200   | )      |
|                                               |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| Common                  Stock issued in            |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| settlement                  of debt at $0.33 per   |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| share                  in April 2005               |   |   | -      |   |   | -      |   |   | 75,758  |   |   | 77          |   |   | 24,923     |   |   | (25,000 | )      |   | -      |   |   | -      |   |   | -         |   |
|                                               |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| Common                  Stock issued in            |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| exchange                  for consulting services  |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| at                  $0.68 per share in April 2005  |   |   | -      |   |   | -      |   |   | 50,000  |   |   | 50          |   |   | 33,950     |   |   | -       |   |   | -      |   |   | -      |   |   | 34,000    |   |
|                                               |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| Proceeds                  received against         |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| subscription                  payable in June      |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| 2005                                               |   |   | -      |   |   | -      |   |   | -       |   |   | -           |   |   | -          |   |   | 118,000 |   |   | -      |   |   | -      |   |   | 118,000   |   |
|                                               |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| Common                  Stock canceled in          |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| June                  2005, previously issued for  |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| services                  rendered at $0.50 per    |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| share                                              |   |   | -      |   |   | -      |   |   | (10,000 | )      |   | (10         | )      |   | (4,990     | )      |   | -       |   |   | -      |   |   | -      |   |   | (5,000    | )      |
|                                               |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| Cancellation                  of previously        |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| granted                  stock options granted     |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| to                  employees for services         |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| rendered,                  at exercise price       |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |
| below                  fair value of common stock  |   |   | -      |   |   | -      |   |   | -       |   |   | -           |   |   | (180,000   | )      |   | -       |   |   | -      |   |   | -      |   |   | (180,000  | )      |
|                                               |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |   |    |   |   |   |   |   |   |   |   |      |   |

----

| APPLIED                            DNA SCIENCES, INC                                                                                                                    |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (A                            development stage company)                                                                                                                |   |
| CONDENSED                            CONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY,                            (DEFICIENCY)                                            |   |
| FOR                            THE PERIOD SEPTEMBER 16, 2002 (DATE OF INCEPTION) THROUGH                            JUNE 30,                            2007(unaudited) |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Deficit |   |   |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |   | Additional |   |   |   |   |   | Accumulated |   |   |   |
|                                                                                                                                                                    |   |   |   | Preferred |   |   |   | Common |   | Paid                            in |   | Common |   | Stock |   | During |   |   |   |
|                                                                                                                                                                    |   | Preferred |   | Shares |   | Common |   | Stock |   | Capital |   | Stock |   | Subscription |   | Development |   |   |   |
|                                                                                                                                                                    |   | Shares |   | Amount |   | Shares |   | Amount |   | Amount |   | Subscribed |   | Receivable |   | Stage |   | Total |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| Common                  Stock issued in                                        |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
|--------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|-------------|--------|--------|---------|--------|--------|------------|--------|--------|--------|--------|--------|--------|--------|--------|-------------|--------|--------|-------------|--------|
| exchange                  for consulting services                              |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| at                  $0.60 per share in July 2005                               |   |   | -      |   |   | -      |   |   | 157,000     |   |   | 157     |   |   | 94,043     |   |   | -      |   |   | -      |   |   | -           |   |   | 94,200      |   |
|                                                                           |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| Common                  Stock issued in                                        |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| exchange                  for intellectual property                            |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| at                  $0.67 per share in July 2005                               |   |   | -      |   |   | -      |   |   | 36,000,000  |   |   | 36,000  |   |   | 24,084,000 |   |   | -      |   |   | -      |   |   | -           |   |   | 24,120,000  |   |
|                                                                           |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| Common                  Stock issued in                                        |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| exchange                  for consulting                                       |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| services                  at $0.60 per share                                   |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| in                  July 2005                                                  |   |   | -      |   |   | -      |   |   | 640,000     |   |   | 640     |   |   | 383,360    |   |   | -      |   |   | -      |   |   | -           |   |   | 384,000     |   |
|                                                                           |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| Common                  Stock issued in                                        |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| exchange                  for employee services                                |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| at                  $0.48 per share in July 2005                               |   |   | -      |   |   | -      |   |   | 8,000,000   |   |   | 8,000   |   |   | 3,832,000  |   |   | -      |   |   | -      |   |   | -           |   |   | 3,840,000   |   |
|                                                                           |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| Common                  Stock issued in                                        |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| exchange                  for consulting                                       |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| services                  at $0.94 per share                                   |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| in                  July 2005                                                  |   |   | -      |   |   | -      |   |   | 121,985     |   |   | 121     |   |   | 168,217    |   |   | -      |   |   | -      |   |   | -           |   |   | 168,338     |   |
|                                                                           |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| Common                  Stock issued in                                        |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| exchange                  for consulting                                       |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| services                  at $0.48 per share                                   |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| in                  August 2005                                                |   |   | -      |   |   | -      |   |   | 250,000     |   |   | 250     |   |   | 119,750    |   |   | -      |   |   | -      |   |   | -           |   |   | 120,000     |   |
|                                                                           |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| Common                  Stock penalty shares                                   |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| issued                  pursuant to pending SB-2                               |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| registration                  at $0.62 per share in                            |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| September                  2005                                                |   |   | -      |   |   | -      |   |   | 814,158     |   |   | 814     |   |   | 501,858    |   |   | -      |   |   | -      |   |   | -           |   |   | 502,672     |   |
|                                                                           |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| Common                  Stock penalty shares                                   |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| issued                  pursuant to pending SB-2                               |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| registration                  at $0.70 per share in                            |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| September                  2005                                                |   |   | -      |   |   | -      |   |   | 391,224     |   |   | 391     |   |   | 273,466    |   |   | -      |   |   | -      |   |   | -           |   |   | 273,857     |   |
|                                                                           |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| Common                  Stock issued in                                        |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| exchange                  for consulting                                       |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| services                  at $0.94 per share                                   |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| in                  September 2005                                             |   |   | -      |   |   | -      |   |   | 185,000     |   |   | 185     |   |   | 173,715    |   |   | -      |   |   | -      |   |   | -           |   |   | 173,900     |   |
|                                                                           |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| Common                  Stock returned in                                      |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| September                  2005, previously                                    |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| issued                  for services rendered at                               |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| $0.40                  per share                                               |   |   | -      |   |   | -      |   |   | (740,000    | )      |   | (740    | )      |   | (453,232   | )      |   | 56,000 |   |   | 1,000  |   |   | -           |   |   | (396,972    | )      |
|                                                                           |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| Net                  Loss                                                      |   |   | -      |   |   | -      |   |   | -           |   |   | -       |   |   | -          |   |   | -      |   |   | -      |   |   | (67,109,519 | )      |   | (67,109,519 | )      |
| Balance                  as of September                                       |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| 30,                  2005                                                      |   |   | 60,000 |   | $      | 6      |   |   | 112,230,392 |   | $      | 112,230 |   | $      | 82,320,715 |   | $      | 20,000 |   | $      | -      |   | $      | (89,924,553 | )      | $      | (7,471,602  | )      |
|                                                                           |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| Common                  stock issued in exchange                  for services |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| at                  $0.50 per share                                            |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |
| in                  October 2005                                               |   |   | -      |   |   | -      |   |   | 400,000     |   |   | 400     |   |   | 199,600    |   |   | -      |   |   | -      |   |   | -           |   |   | 200,000     |   |
|                                                                           |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |        |   |   |        |   |

----

| APPLIED                            DNA SCIENCES, INC                                                                                                                    |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (A                            development stage company)                                                                                                                |   |
| CONDENSED                            CONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY,                            (DEFICIENCY)                                            |   |
| FOR                            THE PERIOD SEPTEMBER 16, 2002 (DATE OF INCEPTION) THROUGH                            JUNE 30,                            2007(unaudited) |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Deficit |   |   |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |   | Additional |   |   |   |   |   | Accumulated |   |   |   |
|                                                                                                                                                                    |   |   |   | Preferred |   |   |   | Common |   | Paid                            in |   | Common |   | Stock |   | During |   |   |   |
|                                                                                                                                                                    |   | Preferred |   | Shares |   | Common |   | Stock |   | Capital |   | Stock |   | Subscription |   | Development |   |   |   |
|                                                                                                                                                                    |   | Shares |   | Amount |   | Shares |   | Amount |   | Amount |   | Subscribed |   | Receivable |   | Stage |   | Total |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| Common                  Stock issued in                |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
|--------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|-------------|--------|--------|---------|--------|--------|------------|--------|--------|---------|--------|--------|--------|--------|--------|-------------|--------|--------|------------|--------|
| exchange                  for consulting               |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| services                  at $0.75 per share           |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| in                  October 2005                       |   |   | -      |   |   | -      |   |   | 100,000     |   |   | 100     |   |   | 74,900     |   |   | -       |   |   | -      |   |   | -           |   |   | 75,000     |   |
|                                                   |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| Common                  Stock returned in              |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| October                  2005, previously              |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| issued                  for services                   |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| rendered                  at $0.60 per share           |   |   | -      |   |   | -      |   |   | (350,000    | )      |   | (350    | )      |   | (209,650   | )      |   | -       |   |   | -      |   |   | -           |   |   | (210,000   | )      |
|                                                   |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| Common                  stock issued pursuant          |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| to                  subscription at $0.50 per          |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| share                  in December 2005                |   |   | -      |   |   | -      |   |   | 40,000      |   |   | 40      |   |   | 19,960     |   |   | (20,000 | )      |   | -      |   |   | -           |   |   | -          |   |
|                                                   |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| Common                  Stock issued to investors      |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| pursuant                  to registration rights       |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| agreement                  at $0.51 per share in       |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| December                  2005                         |   |   | -      |   |   | -      |   |   | 505,854     |   |   | 506     |   |   | 257,480    |   |   | -       |   |   | -      |   |   | -           |   |   | 257,986    |   |
|                                                   |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| Common                  Stock returned in              |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| January                  2006, previously issued       |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| for                  services rendered at $0.60        |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| per                  share                             |   |   | -      |   |   | -      |   |   | (250,000    | )      |   | (250    | )      |   | (149,750   | )      |   | -       |   |   | -      |   |   | -           |   |   | (150,000   | )      |
|                                                   |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| Common                  Stock issued to investors      |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| pursuant                  to registration rights       |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| agreement                  at $0.32 per share          |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| in                  January 2006                       |   |   | -      |   |   | -      |   |   | 806,212     |   |   | 806     |   |   | 257,182    |   |   | -       |   |   | -      |   |   | -           |   |   | 257,988    |   |
|                                                   |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| Common                  Stock issued to investors      |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| pursuant                  to registration rights       |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| agreement                  at $0.20 per share          |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| in                  January 2006                       |   |   | -      |   |   | -      |   |   | 1,289,927   |   |   | 1,290   |   |   | 256,695    |   |   | -       |   |   | -      |   |   | -           |   |   | 257,985    |   |
|                                                   |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| Fair                  value of 200,000 warrants issued |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| to                  consultants for services at $0.22  |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| per                  warrant in January 2006           |   |   | -      |   |   | -      |   |   | -           |   |   | -       |   |   | 43,098     |   |   | -       |   |   | -      |   |   | -           |   |   | 43,098     |   |
|                                                   |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| Common                  Stock issued in                |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| exchange                  for consulting services      |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| at                  $0.17 per share in February 2006   |   |   | -      |   |   | -      |   |   | 160,000     |   |   | 160     |   |   | 27,040     |   |   | -       |   |   | -      |   |   | -           |   |   | 27,200     |   |
|                                                   |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| Common                  Stock issued in                |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| exchange                  for consulting services      |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| at                  $0.16 per share in February 2006   |   |   | -      |   |   | -      |   |   | 3,800,000   |   |   | 3,800   |   |   | 604,200    |   |   | -       |   |   | -      |   |   | -           |   |   | 608,000    |   |
|                                                   |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| Common                  Stock returned in              |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| March                  2006, previously issued         |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| for                  services rendered at $0.80        |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| per                  share                             |   |   | -      |   |   | -      |   |   | (150,000    | )      |   | (150    | )      |   | (119,850   | )      |   | -       |   |   | -      |   |   | -           |   |   | (120,000   | )      |
|                                                   |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| Previously                  issued warrants reclassed  |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| to                  warrant liability                  |   |   | -      |   |   | -      |   |   | -           |   |   | -       |   |   | (1,584,614 | )      |   | -       |   |   | -      |   |   | -           |   |   | (1,584,614 | )      |
|                                                   |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| Common                  Stock issued in exchange       |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| for                  consulting services at $0.20 per  |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| share                  in July 2006                    |   |   | -      |   |   | -      |   |   | 2,400,000   |   |   | 2,400   |   |   | 477,600    |   |   | -       |   |   | -      |   |   | -           |   |   | 480,000    |   |
|                                                   |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| Fair                  value of stock options granted   |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| to                  employees in exchange for          |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| services                  rendered in September 2006   |   |   | -      |   |   | -      |   |   | -           |   |   | -       |   |   | 153,000    |   |   | -       |   |   | -      |   |   | -           |   |   | 153,000    |   |
|                                                   |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |
| Net                  loss                              |   |   | -      |   |   | -      |   |   | -           |   |   | -       |   |   | -          |   |   | -       |   |   | -      |   |   | (2,410,237  | )      |   | (2,410,237 | )      |
| Balance                  as of September 30, 2006      |   |   | 60,000 |   | $      | 6      |   | $      | 120,982,385 |   | $      | 120,982 |   | $      | 82,627,606 |   | $      | -       |   | $      | -      |   | $      | (92,334,791 | )      | $      | (9,586,197 | )      |
|                                                   |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |    |   |   |   |   |   |        |   |   |       |   |

----

| APPLIED                            DNA SCIENCES, INC                                                                                                                    |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (A                            development stage company)                                                                                                                |   |
| CONDENSED                            CONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY,                            (DEFICIENCY)                                            |   |
| FOR                            THE PERIOD SEPTEMBER 16, 2002 (DATE OF INCEPTION) THROUGH                            JUNE 30,                            2007(unaudited) |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Deficit |   |   |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |   | Additional |   |   |   |   |   | Accumulated |   |   |   |
|                                                                                                                                                                    |   |   |   | Preferred |   |   |   | Common |   | Paid                            in |   | Common |   | Stock |   | During |   |   |   |
|                                                                                                                                                                    |   | Preferred |   | Shares |   | Common |   | Stock |   | Capital |   | Stock |   | Subscription |   | Development |   |   |   |
|                                                                                                                                                                    |   | Shares |   | Amount |   | Shares |   | Amount |   | Amount |   | Subscribed |   | Receivable |   | Stage |   | Total |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| Common                  stock issued in Dec 2006                             |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |         |   |   |        |   |
|------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|-------------|--------|--------|---------|--------|--------|------------|--------|--------|--------|--------|--------|--------|--------|--------|--------------|--------|--------|-------------|--------|
| in                  settlement of related party debt                         |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |         |   |   |        |   |
| at                  $2.28 per share                                          |   |   | -      |   |   | -      |   |   | 180,000     |   |   | 180     |   |   | 410,249    |   |   | -      |   |   | -      |   |   | -            |   |   | 410,429     |   |
|                                                                         |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |         |   |   |        |   |
| Common                  stock issued in May 2007                             |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |         |   |   |        |   |
| in                  settlement of convertible                                |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |         |   |   |        |   |
| debenture                  at $0.11per share                                 |   |   | -      |   |   | -      |   |   | 9,645,752   |   |   | 9,646   |   |   | 1,090,354  |   |   | -      |   |   | -      |   |   | -            |   |   | 1,100,000   |   |
|                                                                         |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |         |   |   |        |   |
| Common                  stock issued in June 2007                            |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |         |   |   |        |   |
| in                  settlement of convertible                                |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |         |   |   |        |   |
| debenture                  at $0.11per share                                 |   |   | -      |   |   | -      |   |   | 29,691,412  |   |   | 29,691  |   |   | 3,215,309  |   |   | -      |   |   | -      |   |   | -            |   |   | 3,245,000   |   |
|                                                                         |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |         |   |   |        |   |
| Beneficial                  conversion feature                               |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |         |   |   |        |   |
| relating                  to convertible debenture                           |   |   | -      |   |   | -      |   |   | -           |   |   | -       |   |   | 76,788     |   |   | -      |   |   | -      |   |   | -            |   |   | 76,788      |   |
|                                                                         |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |         |   |   |        |   |
|                                                                         |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |         |   |   |        |   |
| Net                  loss                                                    |   |   | -      |   |   | -      |   |   | -           |   |   | -       |   |   | -          |   |   | -      |   |   | -      |   |   | (8,233,506   | )      |   | (8,233,506  | )      |
| Balance                  as of June 30, 2007                                 |   |   | 60,000 |   | $      | 6      |   |   | 160,499,549 |   | $      | 160,499 |   | $      | 87,420,306 |   | $      | -      |   | $      | -      |   | $      | (100,568,297 | )      | $      | (12,987,486 | )      |
|                                                                         |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |         |   |   |        |   |
| See                  accompanying notes to consolidated financial statements |   |   |   |   |   |   |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |

----

| **APPLIED                  DNA SCIENCES, INC**                                                                                                                               |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| **(A                  DEVELOPMENT STAGE COMPANY)**                                                                                                                           |   |
| **CONDENSED                  CONSOLIDATED STATEMENT OF CASH FLOWS**                                                                                                          |   |
| **(unaudited)**                                                                                                                                                              |   |
|                                                                                                                                                                         |   |   |   |   |   | For                  the Period |   |
|                                                                                                                                                                         |   |   |   |   |   | September                  16, 2002 |   |
|                                                                                                                                                                         |   |   |   |   |   | (Date                  of Inception) |   |
|                                                                                                                                                                         |   | For                  the nine months ended June 30, |   | through |   |
|                                                                                                                                                                         |   | 2007 |   | 2006 |   | June                  30, 2007 |   |
| Cash                  flows from operating activities:                                                                                                                       |   |   |   | RESTATED |   |   |   |
| Net                  income (loss)                                                                                                                                           |   | $ | (8,233,506 | ) | $ | 5,606,849 |   | $ | (100,568,297 | ) |
| Adjustments                  to reconcile net loss to net used in operating activities:                                                                                      |   |   |   |   |   |   |   |   |   |   |
| Depreciation                  and amortization                                                                                                                               |   |   | 324,594 |   |   | 1,021,199 |   |   | 2,054,320 |   |
| Organization                  expenses                                                                                                                                       |   |   | - |   |   | - |   |   | 88,500 |   |
| Impairment                  of intangible assets                                                                                                                             |   |   | - |   |   | - |   |   | 5,655,011 |   |
| Preferred                  shares issued in exchange for services                                                                                                            |   |   | - |   |   | - |   |   | 1,500,000 |   |
| Options                  and warrants issued in exchange for services rendered                                                                                               |   |   | - |   |   | 43,100 |   |   | 11,001,255 |   |
| Income                  attributable to repricing of warrants and debt derivatives                                                                                           |   |   | (142,131 | ) |   | (14,250,621 | ) |   | (33,687,959 | ) |
| Financing                  costs attributable to issuance of warrants                                                                                                        |   |   | - |   |   | 2,271,000 |   |   | 25,419,214 |   |
| Amortization                  of beneficial conversion feature-convertible notes                                                                                             |   |   | 10,093 |   |   | - |   |   | 10,471,093 |   |
| Amortization                  of capitalized financing costs                                                                                                                 |   |   | 1,005,975 |   |   | 247,238 |   |   | 1,641,988 |   |
| Amortization                  of debt discount attributable to convertible debentures                                                                                        |   |   | 1,580,519 |   |   | 276,090 |   |   | 2,312,009 |   |
| Debt                  in exchange for common stock at fair market price                                                                                                      |   |   | - |   |   | - |   |   | 1,365,000 |   |
| Common                  stock issued in exchange for services rendered                                                                                                       |   |   | - |   |   | 710,200 |   |   | 31,964,573 |   |
| Common                  stock exchanged for intellectual property in connection with costs                  of                  acquiring                  intangible assets |   |   | - |   |   | - |   |   | 14,689,100 |   |
| Common                  stock issued in connection with penalties pursuant to                  registration                                                                  |   |   | - |   |   | 773,958 |   |   | 1,550,487 |   |
| Common                  stock canceled-previously issued for services rendered                                                                                               |   |   | - |   |   | (480,000 | ) |   | (1,343,845 | ) |
| Change                  in assets and liabilities:                                                                                                                           |   |   |   |   |   |   |   |   |   |   |
| Decrease                  (increase) in accounts receivable                                                                                                                  |   |   | 9,631 |   |   | (18,900 | ) |   | - |   |
| Decrease                  (increase) in prepaid expenses and deposits                                                                                                        |   |   | (32,208 | ) |   | (145,849 | ) |   | (153,137 | ) |
| Decrease                  (increase) in other assets                                                                                                                         |   |   | 8,419 |   |   | 5,940 |   |   | (13,450 | ) |
| Increase                  in due related parties                                                                                                                             |   |   | - |   |   | (52,662 | ) |   | 40,753 |   |
| Increase                  (decrease) in accounts payable and accrued liabilities                                                                                             |   |   | 3,811,641 |   |   | 1,685,792 |   |   | 8,737,251 |   |
| Net                  cash used in operating activities                                                                                                                       |   |   | (1,656,973 | ) |   | (2,306,666 | ) |   | (17,276,134 | ) |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |
| Cash                  flows from investing activities:                                                                                                                       |   |   |   |   |   |   |   |   |   |   |
| Payments                  for patent filing                                                                                                                                  |   |   | - |   |   | - |   |   | (25,698 | ) |
| Acquisition                  (disposal) of property and equipment, net                                                                                                       |   |   | (11,039 | ) |   | (35,851 | ) |   | (188,360 | ) |
| Net                  cash provided by (used in) investing activities                                                                                                         |   |   | (11,039 | ) |   | (35,851 | ) |   | (214,058 | ) |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |
| Cash                  flows from financing activities:                                                                                                                       |   |   |   |   |   |   |   |   |   |   |
| Proceeds                  from sale of common stock, net of cost                                                                                                             |   |   | - |   |   | - |   |   | 432,000 |   |
| Proceeds                  from issuance of convertible notes, net of costs                                                                                                   |   |   | 477,500 |   |   | 4,242,500 |   |   | 13,924,000 |   |
| Proceeds                  from sale of options                                                                                                                               |   |   | - |   |   | - |   |   | 343,750 |   |
| Repayment                  of debt                                                                                                                                           |   |   | - |   |   | - |   |   | (24,854 | ) |
| Proceeds                  from loans                                                                                                                                         |   |   | - |   |   | - |   |   | 2,750,000 |   |
| Advances                  from shareholders                                                                                                                                  |   |   | - |   |   | - |   |   | 100,088 |   |
| Net                  cash provided by financing activities                                                                                                                   |   |   | 477,500 |   |   | 4,242,500 |   |   | 17,524,984 |   |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |
| Net                  increase in cash and cash equivalents                                                                                                                   |   |   | (1,190,512 | ) |   | 1,899,983 |   |   | 34,792 |   |
| Cash                  and cash equivalents at beginning of period                                                                                                            |   |   | 1,225,304 |   |   | 31,190 |   |   | - |   |
| Cash                  and cash equivalents at end of period                                                                                                                  |   | $ | 34,792 |   | $ | 1,931,173 |   | $ | 34,792 |   |

----

| **APPLIED                  DNA SCIENCES, INC**                                                                |   |
|---------------------------------------------------------------------------------------------------------------|--------|
| **(A                  DEVELOPMENT STAGE COMPANY)**                                                            |   |
| **CONDENSED                  CONSOLIDATED STATEMENT OF CASH FLOWS**                                           |   |
| **(unaudited)**                                                                                               |   |
|                                                                                                          |   |   |   |   |   | For                  the Period |   |
|                                                                                                          |   |   |   |   |   | September                  16, 2002 |   |
|                                                                                                          |   |   |   |   |   | (Date                  of Inception) |   |
|                                                                                                          |   | For                  the nine months ended June 30, |   | through |   |
|                                                                                                          |   | 2007 |   | 2006 |   | June                  30, 2007 |   |
| Supplemental                  Disclosures of Cash Flow Information:                                           |   |   |   |   |   |   |   |
| Cash                  paid during period for interest                                                         |   |   | - |   |   | - |   |   | - |   |
| Cash                  paid during period for taxes                                                            |   |   | - |   |   | - |   |   | - |   |
|                                                                                                          |   |   |   |   |   |   |   |   |   |   |
| Non-cash                  transactions:                                                                       |   |   |   |   |   |   |   |   |   |   |
| Common                  stock issued for services                                                             |   |   | - |   |   | 710,200 |   |   | 31,964,573 |   |
| Common                  stock issued in exchange for intellectual property                                    |   |   | - |   |   | - |   |   |   |   |
| Common                  stock issued in exchange for previously incurred debt                                 |   |   | 4,361,200 |   |   | - |   |   | 2,313,500 |   |
| Common                  stock canceled-previously issued for services rendered                                |   |   | - |   |   | (480,000 | ) |   | (1,343,845 | ) |
| Common                  stock issued for ESOP shares                                                          |   |   | - |   |   | - |   |   |   |   |
| Common                  stock penalty shares issued pursuant to Pending SB-2                  registration    |   |   | - |   |   | 773,958 |   |   |   |   |
| Amortization                  of beneficial conversion feature                                                |   |   | - |   |   | - |   |   | 10,471,093 |   |
| Preferred                  shares in exchange for service at $25 per share in September                  2004 |   |   | - |   |   | - |   |   | 1,500,000 |   |
| Fair                  value of options and warrants issued to consultants for                  services       |   |   | - |   |   | 43,100 |   |   | 11,001,255 |   |
|                                                                                                          |   |   |   |   |   |   |   |   |   |   |
| Acquisition:                                                                                                  |   |   |   |   |   |   |   |   |   |   |
| Common                  stock retained                                                                        |   |   | - |   |   | - |   |   | 1,015 |   |
| Assets                  acquired                                                                              |   |   | - |   |   | - |   |   | (135 | ) |
| Total                  consideration paid                                                                     |   |   | - |   |   | - |   |   | 880 |   |
| Organizational                  expenses-note issued in exchange for shares retired                           |   |   |   |   |   |   |   |   | 88,500 |   |
| Common                  stock issued in exchange for note payable                                             |   |   |   |   |   |   |   |   | 88,500 |   |
|                                                                                                          |   |   |   |   |   |   |   |   |   |   |
| See                  the accompanying notes to the consolidated financial                  statements         |   |   |   |   |   |   |   |   |   |   |

----

**APPLIED          DNA SCIENCES, INC**

**(A          DEVELOPMENT STAGE COMPANY)**

**NOTES          TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE          30, 2007**

**(Unaudited)**

**NOTE        A - SUMMARY OF ACCOUNTING POLICIES **

*General      *

* *
*Business      and Basis of Presentation *

* *
*Reclassification      *

* *
*Property      and Equipment*

|                                    |   |   |    |
|-----------------------------------------|--------|--------|---------|
| Computer                equipment       |   | $      | 27,404  |   |
| Lab                equipment            |   |   | 54,974  |   |
| Furniture                               |   |   | 105,984 |   |
| Accumulated                depreciation |   |   | (67,497 | ) |
|                                    |   |   |    |   |
| Net                                     |   | $      | 120,865 |   |

----

**APPLIED              DNA SCIENCES, INC**

**(A              DEVELOPMENT STAGE COMPANY)**

**NOTES              TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE              30, 2007**

**(Unaudited)**

**NOTE            A - SUMMARY OF ACCOUNTING POLICIES (continued)**

*Stock          Based Compensation *

*Revenue      Recognition *

*Concentrations      of Credit Risk *

----

**APPLIED            DNA SCIENCES, INC**

**(A            DEVELOPMENT STAGE COMPANY)**

**NOTES            TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE            30, 2007**

**(Unaudited)**

**NOTE          A - SUMMARY OF ACCOUNTING POLICIES (continued)**

*Net      income (loss) per share*

|                                                                                                          |   | Three                Months EndedJune                30, 2007 |       | Three                Months EndedJune                30, 2006 |   | Nine                Months Ended June                30, 2006 |   |
|---------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------|------------|---------------------------------------------------------------|--------|---------------------------------------------------------------|--------|
| Net                income used in computing basic net income per share                                        |   | $                                                             | 1,807,954  |                                                          | $      | 761,087                                                       |   | $ | 5,606,849 |   |
| Impact                of assumed assumptions:                                                                 |   |                                                          |       |                                                          |   |                                                          |   |   |   |   |
| Fair                value of warrants relating to convertible debt charged to interest                expense |   |                                                          | -          |                                                          |   | -                                                             |   |   | 1,758,900 |   |
| Impact                of equity classified as liability:                                                      |   |                                                          |       |                                                          |   |                                                          |   |   |   |   |
| Gain                on warrant liability marked to fair value                                                 |   |                                                          | (4,431,421 | )                                                             |   | (3,493,961                                                    | )      |   | (14,250,621 | ) |
| Net                loss in computing diluted net loss per share:                                              |   | $                                                             | (2,623,467 | )                                                             | $      | (2,732,874                                                    | )      | $ | (6,884,872 | ) |

*Derivative      Financial Instruments*

*New      Accounting Pronouncements*

*Accounting      for certain Hybrid Financial Instruments an amendment of FASB Statements No.      133      and 140,”*

----

**APPLIED              DNA SCIENCES, INC**

**(A              DEVELOPMENT STAGE COMPANY)**

**NOTES              TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE              30, 2007**

**(Unaudited)**

**NOTE            A - SUMMARY OF ACCOUNTING POLICIES (continued)**

*Accounting      for uncertainty in Income Taxes”.*
*Accounting      for Contingencies”. *

SFAS      159      permits entities to choose to measure many financial instruments, and certain      other items, at fair value. SFAS      159      applies to reporting periods beginning after November 15, 2007. The adoption      of      SFAS 159 is not expected to have a material impact on the Company’s financial      condition or results of operations

----

**APPLIED              DNA SCIENCES, INC**

**(A              DEVELOPMENT STAGE COMPANY)**

**NOTES              TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE              30, 2007**

**(Unaudited)**

**NOTE B            - INTANGIBLE ASSETS AND AMORTIZATION**

|   | Developed                core technologies         |   | $      | 2,260,900  |   |
|--------|----------------------------------------------------|--------|--------|------------|--------|
|   | Developed                product technologies      |   |   | 7,170,000  |   |
|   | Total                amortizable intangible assets |   |   | 9,430,900  |   |
|   | Transaction                costs                   |   |   | 14,869,100 |   |
|   | Total                purchase price                |   | $      | 24,120,000 |   |

*Transaction      costs *

| Trade                secrets and developed technologies (Weighted average life of 7                years) |   | $      | 9,430,900  |   |
|-----------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|
| Patents                (Weighted average life of 5 years)                                                 |   |        | 34,257     |   |
| Total                Amortized identifiable intangible assets-Gross carrying value:                       |   | $      | 9,465,157  |   |
| Less:                                                                                                     |   |   |       |   |
| Accumulated                Amortization                                                                   |   |   | (1,980,664 | )      |
| Impairment                                                                                                |   |   | (5,655,011 | )      |
| Net:                                                                                                      |   | $      | 1,829,482  |   |
| Residual                value:                                                                            |   | $      | 0          |   |

----

**APPLIED              DNA SCIENCES, INC**

**(A              DEVELOPMENT STAGE COMPANY)**

**NOTES              TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE              30, 2007**

**(Unaudited)**

**NOTE B            - INTANGIBLE ASSETS AND AMORTIZATION (continued)**

|   | 2007                               |   | $      | 277,982   |   |
|--------|------------------------------------|--------|--------|-----------|--------|
|   | 2008                               |   |   | 370,642   |   |
|   | 2009                               |   |   | 365,504   |   |
|   | 2010                               |   |   | 363,791   |   |
|   | 2011                and thereafter |   |   | 451,563   |   |
|   | Total                              |   | $      | 1,829,482 |   |

----

**APPLIED              DNA SCIENCES, INC**

**(A              DEVELOPMENT STAGE COMPANY)**

**NOTES              TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE              30, 2007**

**(Unaudited)**

**NOTE C            - PRIVATE PLACEMENT OF CONVERTIBLE NOTES**

|   | 10%                  Secured Convertible Notes Payable dated March 8, 2006, net of unamortized                  debt discount of $107,710 (see below)                                  |   | $      | 1,392,290  |   |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|
|   | 10%                  Secured Convertible Notes Payable, related party, dated April 23,                  2007,                  net of unamortized debt discount of $44,081 (see below) |   |   | 55,919     |   |
|   | 10%                  Secured Convertible Notes Payable dated June 27, 2007 (See                  below)                                                                                |   |   | 100,000    |   |
|   | 10%                  Secured Convertible Notes Payable dated June 27, 2007 (See                  below)                                                                                |   |   | 50,000     |   |
|   | 10%                  Secured Convertible Notes Payable, related party, dated June 30,                  2007, net                  of unamortized debt discount of $102,354 (see below) |   |   | 147,646    |   |
|   |                                                                                                                                                                                   |   |   | 1,745,855  |   |
|   | Less:                  current portion                                                                                                                                                 |   |   | (1,745,855 | )      |
|   |                                                                                                                                                                                   |   | $      | -          |   |

----

**APPLIED              DNA SCIENCES, INC**

**(A              DEVELOPMENT STAGE COMPANY)**

**NOTES              TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE              30, 2007**

**(Unaudited)**

**NOTE C            - PRIVATE PLACEMENT OF CONVERTIBLE NOTES (continued)**

----

**APPLIED              DNA SCIENCES, INC**

**(A              DEVELOPMENT STAGE COMPANY)**

**NOTES              TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE              30, 2007**

**(Unaudited)**

**NOTE C            - PRIVATE PLACEMENT OF CONVERTIBLE NOTES (continued)**

----

**APPLIED                DNA SCIENCES, INC**

**(A                DEVELOPMENT STAGE COMPANY)**

**NOTES                TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE                30, 2007**

**(Unaudited)**

**NOTE C              - PRIVATE PLACEMENT OF CONVERTIBLE NOTES (continued)**

----

**APPLIED                DNA SCIENCES, INC**

**(A                DEVELOPMENT STAGE COMPANY)**

**NOTES                TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE                30, 2007**

**(Unaudited)**

**NOTE C              - PRIVATE PLACEMENT OF CONVERTIBLE NOTES (continued)**

----

**APPLIED                DNA SCIENCES, INC**

**(A                DEVELOPMENT STAGE COMPANY)**

**NOTES                TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE                30, 2007**

**(Unaudited)**

**NOTE C              - PRIVATE PLACEMENT OF CONVERTIBLE NOTES (continued)**

| ·   | 105,464                warrants entitling the holder to purchase 105,464 shares of the Company’s                common stock at the price of $0.10 per share.  These warrants were                issued in July, 2004 and lapse if unexercised by July, 2009. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 1,602,500                warrants entitling the holder to purchase 1,602,500 shares of the                Company’s common stock at the price of $0.60 per share.  These                warrants were issued in October, 2003 and lapse if unexercised by                October,                2008.   |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**APPLIED                DNA SCIENCES, INC**

**(A                DEVELOPMENT STAGE COMPANY)**

**NOTES                TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE                30, 2007**

**(Unaudited)**

**NOTE C              - PRIVATE PLACEMENT OF CONVERTIBLE NOTES (continued)**

----

**APPLIED              DNA SCIENCES, INC**

**(A              DEVELOPMENT STAGE COMPANY)**

**NOTES              TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE              30, 2007**

**(Unaudited)**

**NOTE D            - CAPITAL STOCK**

----

----

**APPLIED                DNA SCIENCES, INC**

**(A                DEVELOPMENT STAGE COMPANY)**

**NOTES                TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE                30, 2007**

**(Unaudited)**

**NOTE D              - CAPITAL STOCK (continued)**

----

**APPLIED                DNA SCIENCES, INC**

**(A                DEVELOPMENT STAGE COMPANY)**

**NOTES                TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE                30, 2007**

**(Unaudited)**

**NOTE D              - CAPITAL STOCK (continued)**

----

**APPLIED              DNA SCIENCES, INC**

**(A              DEVELOPMENT STAGE COMPANY)**

**NOTES              TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE              30, 2007**

**(Unaudited)**

**NOTE E            - STOCK OPTIONS AND WARRANTS**

*Warrants        *

| **Exercise****Prices** |        | **Number****Outstanding** |       |   **Warrants                    Outstanding Remaining Contractual Life****(Years)** |   | **Weighted****Average****Exercise****Price** |   | **Weighted****Average****Exercisable** |   | **Exercisable****Weighted****Average****Exercise                    Price** |   |
|------------------------|--------|---------------------------|------------|-----------------------------------------------------------------------------------------------|--------|----------------------------------------------|--------|----------------------------------------|--------|-----------------------------------------------------------------------------|--------|
| $0.09                  |   |                      | 18,900,000 |                                                                                          |   | 4.17                                         |   | $                                      | 0.09   |                                                                        |   | 18,900,000 |   | $ | 0.09 |   |
| $0.10                  |   |                      | 105,464    |                                                                                          |   | 2.01                                         |   | $                                      | 0.10   |                                                                        |   | 105,464 |   | $ | 0.10 |   |
| $0.20                  |   |                      | 5,000      |                                                                                          |   | 1.64                                         |   | $                                      | 0.20   |                                                                        |   | 5,000 |   | $ | 0.20 |   |
| $0.50                  |   |                      | 17,450,000 |                                                                                          |   | 3.02                                         |   | $                                      | 0.50   |                                                                        |   | 16,450,000 |   | $ | 0.50 |   |
| $0.55                  |   |                      | 9,000,000  |                                                                                          |   | 1.72                                         |   | $                                      | 0.55   |                                                                        |   | 9,000,000 |   | $ | 0.55 |   |
| $0.60                  |   |                      | 8,847,000  |                                                                                          |   | 2.63                                         |   | $                                      | 0.60   |                                                                        |   | 8,847,000 |   | $ | 0.60 |   |
| $0.70                  |   |                      | 950,000    |                                                                                          |   | 0.84                                         |   | $                                      | 0.70   |                                                                        |   | 950,000 |   | $ | 0.70 |   |
| $0.75                  |   |                      | 17,727,000 |                                                                                          |   | 3.00                                         |   | $                                      | 0.75   |                                                                        |   | 17,727,000 |   | $ | 0.75 |   |
|                   |   |                      | 72,984,464 |                                                                                          |   |                                              |   |                                   |        |                                                                        |   | 71,984,464 |   |   |  |   |

|                                                 |   | **Number                    of****Shares** |       | **Weighted****Average                    Price****Per                    Share** |   |
|------------------------------------------------------|--------|--------------------------------------------|------------|----------------------------------------------------------------------------------|--------|
| Balance,                    September 30, 2004       |   |                                       | 4,870,253  |                                                                             | $      | 0.63 |   |
| Granted                                              |   |                                       | 32,873,000 |                                                                             |   | 0.71 |   |
| Exercised                                            |   |                                       | (142,500   | )                                                                                |   | .0.34 |   |
| Canceled                    or expired               |   |                                       | (731,289   | )                                                                                |   | 0.65 |   |
| Balance,                    September 30, 2005       |   |                                       | 36,869,464 |                                                                             |   | 0.67 |   |
| Granted                                              |   |                                       | 35,500,000 |                                                                             |   | 0.29 |   |
| Exercised                                            |   |                                       | -          |                                                                             |   | - |   |
| Canceled                    or expired               |   |                                       | -          |                                                                             |   | - |   |
| Outstanding                    at September 30, 2006 |   |                                       | 72,369,464 |                                                                             |   | 0.48 |   |
| Granted                                              |   |                                       | 1,000,000  |                                                                             |   | 0.50 |   |
| Exercised                                            |   |                                       | -          |                                                                             |   | - |   |
| Canceled                    or expired               |   |                                       | (385,000   | )                                                                                |   | (0.71 | ) |
| Balance,                    June 30, 2007            |   |                                       | 72,984,464 |                                                                             | $      | 0.48 |   |

*Employee      Stock Options*

----

**APPLIED                DNA SCIENCES, INC**

**(A                DEVELOPMENT STAGE COMPANY)**

**NOTES                TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE                30, 2007**

**(Unaudited)**

**NOTE E              - STOCK OPTIONS AND WARRANTS (continued)**

|   Options                Outstanding |   | Options                Exercisable |   |
|------------------------------------------------|--------|------------------------------------|--------|
|  ExercisePrices                           |   | Number                Outstanding  |   | Weighted                Average                Remaining                Contractual Life                (Years) |   | Weighted                Average                Exercise                Price |   | Number                Exercisable |   | Weighted                Average                Exercise                Price |   |
|                                           |   |                               |   |   |   |   |   |   |   |   |   |   |
|  $                                        | 0.68   |                               |   | 3,660,000 |   |   | 4.25 |   | $ | 0.68 |   |   | 3,660,000 |   | $ | 0.68 |   |
|                                           | 0.09   |                               |   | 2,000,000 |   |   | 4.41 |   |   | 0.09 |   |   | 2,000,000 |   |   | 0.09 |   |
|                                           |   |                               |   | 5,660,000 |   |   |   |   |   |   |   |   | 5,660,000 |   |   | 0.47 |   |

|                                             |   | Number                of Shares |      | Weighted                Average                Exercise Price                Per Share |   |
|--------------------------------------------------|--------|---------------------------------|-----------|----------------------------------------------------------------------------------------|--------|
|                                             |   |                            |      |                                                                                   |   |
| Outstanding                at October 1, 2005    |   |                            | 3,660,000 |                                                                                   | $      | 0.68 |   |
| Granted                                          |   |                            | 2,000,000 |                                                                                   |   | 0.09 |   |
| Exercised                                        |   |                            | -         |                                                                                   |   | - |   |
| Cancelled                or expired              |   |                            | -         |                                                                                   |   | - |   |
| Outstanding                at September 30, 2006 |   |                            | 5,660,000 |                                                                                   | $      | 0.47 |   |
| Granted                                          |   |                            | -         |                                                                                   |   | - |   |
| Exercised                                        |   |                            | -         |                                                                                   |   | - |   |
| Canceled                or expired               |   |                            | -         |                                                                                   |   | - |   |
| Outstanding                at June 30, 2007      |   |                            | 5,660,000 |                                                                                   | $      | 0.47 |   |

----

**APPLIED              DNA SCIENCES, INC**

**(A              DEVELOPMENT STAGE COMPANY)**

**NOTES              TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE              30, 2007**

**(Unaudited)**

**NOTE F            - DEBT DERIVATIVE AND WARRANT LIABILITY**

----

**APPLIED              DNA SCIENCES, INC**

**(A              DEVELOPMENT STAGE COMPANY)**

**NOTES              TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE              30, 2007**

**(Unaudited)**

**NOTE G            - RELATED PARTY TRANSACTIONS**

----

**APPLIED              DNA SCIENCES, INC**

**(A              DEVELOPMENT STAGE COMPANY)**

**NOTES              TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE              30, 2007**

**(Unaudited)**

**NOTE H            - COMMITMENTS AND CONTINGENCIES**

*Operating      Lease Commitments*

*Employment      and Consulting Agreements*

*Litigation      *

----

**APPLIED                DNA SCIENCES, INC**

**(A                DEVELOPMENT STAGE COMPANY)**

**NOTES                TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE                30, 2007**

**(Unaudited)**

**NOTE H              - COMMITMENTS AND CONTINGENCIES (continued)**

*Registration      of Company’s Shares of Common Stock*

*Matters      Voluntarily Reported to the SEC and Securities Act Violations*

----

**APPLIED              DNA SCIENCES, INC**

**(A              DEVELOPMENT STAGE COMPANY)**

**NOTES              TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE              30, 2007**

**(Unaudited)**

**NOTE I            - RESTATEMENT OF FINANCIAL            STATEMENTS**

**Condensed      Consolidated Balance Sheet**

**June        30, 2006**

|                                                                |   |   |   |   |   | **As Previously**  |   |   |                 |   |   |                |   |   |                       |   |
|---------------------------------------------------------------------|--------|--------|--------|--------|--------|------------------------------|--------|--------|----------------------|--------|--------|---------------------|--------|--------|----------------------------|--------|
|                                                                |   |   |   |   |   | **Reported**            |   |   | **Adjustment**  |   |   | **Reference**  |   |   | **As Restated**  |   |
| Cash                                                           |   |   |   |   | $      | 1,931,173                    |   |   |                 |   |   |                |   | $      | 1,931,173                  |   |
| Accounts                      receivable, net                  |   |   |   |   | $      | 18,900                       |   |   |                 |   |   |                |   | $      | 18,900                     |   |
| Advances                      and other receivables            |   |   |   |   | $      | 11,611                       |   |   |                 |   |   |                |   | $      | 11,611                     |   |
| Prepaid                      expenses                          |   |   |   |   | $      | 146,667                      |   |   |                 |   |   |                |   | $      | 146,667                    |   |
| Total                      current assets                      |   |   |   |   | $      | 2,108,351                    |   |   |                 |   |   |                |   | $      | 2,108,351                  |   |
| Property,                      plant and equipment, net        |   |   |   |   | $      | 38,286                       |   |   |                 |   |   |                |   | $      | 38,286                     |   |
| Deposits                                                       |   |   |   |   | $      | 8,322                        |   |   |                 |   |   |                |   | $      | 8,322                      |   |
| Capitalized                      finance costs                 |   |   |   |   | $      | 1,437,862                    |   |   |                 |   |   |                |   | $      | 1,437,862                  |   |
| Patents,                      net                              |   |   |   |   | $      | 17,376                       |   |   |                 |   |   |                |   | $      | 17,376                     |   |
| Intellectual                      property, net                |   |   |   |   | $      | 8,083,629                    |   |   |                 |   |   |                |   | $      | 8,083,629                  |   |
| Total                      assets                              |   |   |   |   | $      | 11,693,826                   |   |   |                 |   |   |                |   | $      | 11,693,826                 |   |
| Accounts                      payable and accrued liabilities  |   |   |   |   | $      | 4,680,849                    |   |   |                 |   |   |                |   | $      | 4,680,849                  |   |
| Notes                      payable, related party              |   |   |   |   | $      | 410,429                      |   |   |                 |   |   |                |   | $      | 410,429                    |   |
| Total                      current liabilities                 |   |   |   |   | $      | 5,091,278                    |   |   |                 |   |   |                |   | $      | 5,091,278                  |   |

----

**APPLIED                  DNA SCIENCES, INC**

**(A                  DEVELOPMENT STAGE COMPANY)**

**NOTES                  TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE                  30, 2007**

**(Unaudited)**

**NOTE I                - RESTATEMENT OF FINANCIAL STATEMENTS (continued)**

|   |   | As                              PreviouslyReported |   | Adjustment |   | Reference |   | As Restated |   |
|--------|--------|----------------------------------------------------|--------|------------|--------|-----------|--------|------------------|--------|

| Convertible                            notes payable, net                                 |   | $      | 3,306,371   |   | $      |     |   |   |   |   | $      | 3,306,371   |   |
|-------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|----------|--------|--------|--------|--------|--------|-------------|--------|
|                                                                                      |   |   |        |   |   |     |   |   |   |   |   |        |   |
| Debt                            derivative and warrant liability                          |   | $      | 5,698,286   |   | $      |     |   |   |   |   | $      | 5,698,286   |   |
|                                                                                      |   |   |        |   |   |     |   |   |   |   |   |        |   |
| Total                            liabilities                                              |   | $      | 14,095,935  |   | $      |     |   |   |   |   | $      | 14,095,935  |   |
|                                                                                      |   |   |        |   |   |     |   |   |   |   |   |        |   |
| Preferred                            stock                                                |   | $      | 6           |   | $      |     |   |   |   |   | $      | 6           |   |
|                                                                                      |   |   |        |   |   |     |   |   |   |   |   |        |   |
| Common                            stock                                                   |   | $      | 118,582     |   | $      |     |   |   |   |   | $      | 118,582     |   |
|                                                                                      |   |   |        |   |   |     |   |   |   |   |   |        |   |
| Common                            stock subscription                                      |   | $      | (200,000    | )      | $      |     |   |   |   |   | $      | (200,000    | )      |
|                                                                                      |   |   |        |   |   |     |   |   |   |   |   |        |   |
| Additional                            paid in capital                                     |   | $      | 81,860,606  |   | $      | 136,400  |   |   | a      |   | $      | 81,997,006  |   |
|                                                                                      |   |   |        |   |   |     |   |   |   |   |   |        |   |
| Accumulated                            deficit                                            |   | $      | (84,181,303 | )      | $      | (136,400 | )      |   | a      |   | $      | (84,317,703 | )      |
|                                                                                      |   |   |        |   |   |     |   |   |   |   |   |        |   |
| Total                            deficiency in stockholders’ equity                 |   | $      | (2,402,109  | )      |   |     |   |   |   |   | $      | (2,402,109  | )      |
|                                                                                      |   |   |        |   |   |     |   |   |   |   |   |        |   |
| Total                            liabilities and Deficiency in Stockholders’ equity |   | $      | 11,693,826  |   |   |     |   |   |   |   | $      | 11,693,826  |   |
|                                                                                      |   |   |        |   |   |     |   |   |   |   |   |        |   |

**Condensed                Consolidated Statement of Income (Losses)**

**For                the Three Months Ended June 30, 2006**

|                                                                                                                             |   | **As                              Previously****Reported** |       | **Adjustment** |   | **Reference** |   | **As Restated** |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------|------------|----------------|--------|---------------|--------|----------------------|--------|
|                                                                                                                             |   |                                                       |       |           |   |          |   |                 |   |   |   |   |   |
| Sales                                                                                                                            |   | $                                                          | 18,900     |           | $      |          |   |                 |   |   |   | 18,900 |   |
| Cost                              of sales                                                                                       |   | $                                                          | 15,639     |           | $      |          |   |                 |   |   |   | 15,639 |   |
| Gross                              margin                                                                                        |   | $                                                          | 3,261      |           | $      |          |   |                 |   |   |   | 3,261 |   |
| Selling,                              general & administrative                                                               |   | $                                                          | 1,190,967  |           | $      | 390,000       |   |                 | b      |   | $ | 1,580,967 |   |
| Research                              and development                                                                            |   | $                                                          | -          |           | $      |          |   |                 |   |   | $ | - |   |
| Depreciation                              and amortization                                                                       |   | $                                                          | 336,824    |           | $      |          |   |                 |   |   |   | 336,824 |   |
| Total                              operating expenses                                                                            |   | $                                                          | 1,527,791  |           | $      | 390,000       |   |                 | b      |   | $ | 1,917,791 |   |
| Net                              loss from operations                                                                            |   | $                                                          | (1,524,530 | )              | $      | (390,000      | )      |                 | b      |   | $ | (1,914,530 | ) |
| Net                              gain (loss) in fair value of debt derivative and                              warrant liability |   | $                                                          | 2,337,263  |           | $      | 1,156,698     |   |                 | c      |   | $ | 3,493,961 |   |
| Other                              income (expense)                                                                              |   | $                                                          | 8,483      |           | $      |          |   |                 |   |   |   | 8,483 |   |
| Interest                              income (expense)                                                                           |   | $                                                          | (826,827   | )              | $      |          |   |                 |   |   |   | (826,827 | ) |
| Net                              income (loss)                                                                                   |   | $                                                          | (5,611     | )              | $      | 766,698       |   |                 | b,c    |   | $ | 761,087 |   |
| Net                              income (loss) per share-basic                                                                   |   | $                                                          | (0.00      | )              | $      | 0.01          |   |                 |   |   | $ | 0.01 |   |
| Net                              income (loss) per share-fully diluted                                                           |   |                                                       | NA         |           | $      | 0.01          |   |                 |   |   | $ | 0.01 |   |

----

**APPLIED                          DNA SCIENCES, INC**

**(A                          DEVELOPMENT STAGE COMPANY)**

**NOTES                          TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE                          30, 2007**

**(Unaudited)**

**NOTE I                        - RESTATEMENT OF FINANCIAL STATEMENTS (continued)**

**Condensed                Consolidated Statement of Income (Losses)**

**For                the Nine Months Ended June 30, 2006**

|                                                                                                                         |   | **As                            Previously****Reported** |       | **Adjustment** |   | **Reference** |   |   | **As Restated** |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|------------|----------------|--------|---------------|--------|--------|----------------------|--------|
|                                                                                                                         |   |                                                     |       |           |   |          |   |   |                 |   |   |   |   |   |
| Sales                                                                                                                        |   | $                                                        | 18,900     |           | $      |          |   |   |                 |   |   |   | 18,900 |   |
| Cost                            of sales                                                                                     |   | $                                                        | 15,639     |           | $      |          |   |   |                 |   |   |   | 15,639 |   |
| Gross                            margin                                                                                      |   | $                                                        | 3,261      |           | $      |          |   |   |                 |   |   |   | 3,261 |   |
| Selling,                            general & administrative                                                             |   | $                                                        | 4,955,055  |           | $      | (563,750      | )      |   | d                    |   |   | $ | 4,391,305 |   |
| Research                            and development                                                                          |   | $                                                        | 75,276     |           | $      |          |   |   |                 |   |   | $ | 75,276 |   |
| Depreciation                            and amortization                                                                     |   | $                                                        | 1,021,199  |           | $      |          |   |   |                 |   |   |   | 1,021,199 |   |
| Total                            operating expenses                                                                          |   | $                                                        | 6,051,530  |           | $      | (563,750      | )      |   | d                    |   |   | $ | 5,487,780 |   |
| Net                            loss from operations                                                                          |   | $                                                        | (6,048,269 | )              | $      | 563,750       | )      |   | d                    |   |   | $ | (5,484,519 | ) |
| Net                            gain (loss) in fair value of debt derivative and                            warrant liability |   | $                                                        | 18,606,563 |           | $      | (4,355,942    | )      |   | e                    |   |   | $ | 14,250,621 |   |
| Other                            income (expense)                                                                            |   | $                                                        | 17.976     |           | $      |          |   |   |                 |   |   |   | 17,976 |   |
| Interest                            income (expense)                                                                         |   | $                                                        | (9,117,785 | )              | $      | 5,940,556     |   |   | f                    |   |   | $ | (3,177,229 | ) |
| Net                            income (loss)                                                                                 |   | $                                                        | 3,458,485  |           | $      | 2,148,364     |   |   | d,e,f                |   |   | $ | 5,606,849 |   |
| Net                            income (loss) per share-basic                                                                 |   | $                                                        | 0.03       |           |        | 0.02          |   |   |                 |   |   | $ | 0.05 |   |
| Net                            income (loss) per share-fully diluted                                                         |   |                                                     | 0.02       |           |   | 0.01          |   |   |                 |   |   | $ | 0.03 |   |

**Condensed                Consolidated Statement of Income (Losses)**

**From                September 16, 2002 (date of inception) through June 30,                2006**

|                                                                                                                         |   | **As                            Previously****Reported** |        |   | **Adjustment**  |       |   | **Reference**  |   |   | **As Restated**  |        |
|------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|-------------|--------|----------------------|------------|--------|---------------------|--------|--------|----------------------------|-------------|
|                                                                                                                         |   |                                                     |        |   |                 |       |   |                |   |   |                       |        |   |
| Sales                                                                                                                        |   | $                                                        | 18,900      |   | $                    |       |   |                |   |   | $                          | 18,900      |   |
| Cost                            of sales                                                                                     |   | $                                                        | 15,639      |   | $                    |       |   |                |   |   | $                          | 15,639      |   |
| Gross                            margin                                                                                      |   | $                                                        | 3,261       |   | $                    |       |   |                |   |   | $                          | 3,261       |   |
| Selling,                            general & administrative                                                             |   | $                                                        | 70,072,368  |   | $                    | 5,838,514  |   |                | g      |   | $                          | 75,910,882  |   |
| Research                            and development                                                                          |   | $                                                        | 968,711     |   | $                    |       |   |                |   |   | $                          | 968,711     |   |
| Depreciation                            and amortization                                                                     |   | $                                                        | 1,380,626   |   | $                    |       |   |                |   |   | $                          | 1,380,626   |   |
| Total                            operating expenses                                                                          |   | $                                                        | 72,421,705  |   | $                    | 5,838,514  |   |                | g      |   | $                          | 78,260,219  |   |
| Net                            loss from operations                                                                          |   | $                                                        | (72,418,444 | )      | $                    | (5,838,514 | )      |                | g      |   | $                          | (78,256,958 | ) |
| Net                            gain (loss) in fair value of debt derivative and                            warrant liability |   | $                                                        | 35,307,553  |   | $                    | (4,355,942 | )      |                | e      |   | $                          | 30,951,611  |   |
| Other                            income (expense)                                                                            |   | $                                                        | 49,318      |   |                 |       |   |                |   |   |                       | 49,318      |   |
| Interest                            income (expense)                                                                         |   | $                                                        | (47,119,730 | )      | $                    | 10,058,055 |   |                | h      |   | $                          | (37,061,675 | ) |
| Net                            income (loss)                                                                                 |   | $                                                        | (84,181,303 | )      | $                    | (136,401   | )      |                | g,e,h  |   | $                          | (84,317,703 | ) |

----

**APPLIED                          DNA SCIENCES, INC**

**(A                          DEVELOPMENT STAGE COMPANY)**

**NOTES                          TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE                          30, 2007**

**(Unaudited)**

**NOTE I                        - RESTATEMENT OF FINANCIAL STATEMENTS                        (continued)**

**Condensed                Consolidated Statement of Cash Flows**

**For                the Nine Months Ended June 30, 2006**

|                                                                                                                                                  |   | **As                            Previously****Reported** |        |                            **Adjustment** |   |                            **Reference** |   |                            **As Restated** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|-------------|------------------------------------------------|--------|-----------------------------------------------|--------|------------------------------------------------------|--------|
|                                                                                                                                                  |   |                                                     |        |                                           |   |                                          |   |                                                 |   |   |   |   |   |
| Cash                            flows from operating activities:                                                                                      |   |                                                     |        |                                           |   |                                          |   |                                                 |   |   |   |   |   |
|                                                                                                                                                  |   |                                                     |        |                                           |   |                                          |   |                                                 |   |   |   |   |   |
| Net                            income (loss)                                                                                                          |   | $                                                        | 3,458,485   |                                           | $      | 2,148,364                                     |   |                                                 | a      |   | $ | 5,606,849 |   |
|                                                                                                                                                  |   |                                                     |        |                                           |   |                                          |   |                                                 |   |   |   |   |   |
| Adjustments                            to reconcile to net used in operating activities                                                               |   |                                                     |        |                                           |   |                                          |   |                                                 |   |   |   |   |   |
|                                                                                                                                                  |   |                                                     |        |                                           |   |                                          |   |                                                 |   |   |   |   |   |
| Depreciation                            and amortization                                                                                              |   | $                                                        | 1,021,199   |                                           |   |                                          |   |                                                 |   |   | $ | 1,021,199 |   |
|                                                                                                                                                  |   |                                                     |        |                                           |   |                                          |   |                                                 |   |   |   |   |   |
| Organization                            expenses                                                                                                      |   | $                                                        |        |                                           | $      |                                          |   |                                                 |   |   | $ |   |   |
|                                                                                                                                                  |   |                                                     |        |                                           |   |                                          |   |                                                 |   |   |   |   |   |
| Preferred                            shares issued in exchange for services                                                                           |   | $                                                        | -           |                                           | $      |                                          |   |                                                 |   |   | $ | - |   |
|                                                                                                                                                  |   |                                                     |        |                                           |   |                                          |   |                                                 |   |   |   |   |   |
| Warrants                            issued to consultants                                                                                             |   | $                                                        | 606,850     |                                           | $      | (563,750                                      | )      |                                                 | d      |   | $ | 43,100 |   |
|                                                                                                                                                  |   |                                                     |        |                                           |   |                                          |   |                                                 |   |   |   |   |   |
| Income                            attributable to repricing of warrants and debt derivatives                                                          |   | $                                                        | (10,118,917 | )                                              | $      | (4,131,704                                    | )      |                                                 | i      |   | $ | (14,250,621 | ) |
|                                                                                                                                                  |   |                                                     |        |                                           |   |                                          |   |                                                 |   |   |   |   |   |
| Financing                            costs attributable to issuance of warrants                                                                       |   |                                                     |        |                                           | $      | 2,271,000                                     |   |                                                 | j      |   | $ | 2,271,000 |   |
|                                                                                                                                                  |   |                                                     |        |                                           |   |                                          |   |                                                 |   |   |   |   |   |
| Amortization                            of beneficial conversion feature -convertible notes                                                           |   | $                                                        | -           |                                           | $      |                                          |   |                                                 |   |   | $ | - |   |
|                                                                                                                                                  |   |                                                     |        |                                           |   |                                          |   |                                                 |   |   |   |   |   |
| Amortization                            of capitalized finance costs                                                                                  |   | $                                                        | 247,238     |                                           | $      |                                          |   |                                                 |   |   | $ | 247,238 |   |
|                                                                                                                                                  |   |                                                     |        |                                           |   |                                          |   |                                                 |   |   |   |   |   |
| Amortization                            of debt discount attributable to convertible debenture                                                        |   | $                                                        | -           |                                           | $      | 276,090                                       |   |                                                 | k      |   | $ | 276,090 |   |
|                                                                                                                                                  |   |                                                     |        |                                           |   |                                          |   |                                                 |   |   |   |   |   |
| Fair                            value of common stock issued to related party in excess                            of                            debt |   | $                                                        | -           |                                           | $      |                                          |   |                                                 |   |   | $ | - |   |
|                                                                                                                                                  |   |                                                     |        |                                           |   |                                          |   |                                                 |   |   |   |   |   |
| Common                            stock issued in exchange for services                                                                               |   | $                                                        | 710,200     |                                           | $      |                                          |   |                                                 |   |   | $ | 710,200 |   |
|                                                                                                                                                  |   |                                                     |        |                                           |   |                                          |   |                                                 |   |   |   |   |   |
| Common                            stock issued in exchange for intellectual property                                                                  |   | $                                                        | -           |                                           | $      |                                          |   |                                                 |   |   | $ | - |   |
|                                                                                                                                                  |   |                                                     |        |                                           |   |                                          |   |                                                 |   |   |   |   |   |
| Common                            stock issued as penalty in connection with financing                                                                |   | $                                                        | 773,958     |                                           | $      |                                          |   |                                                 |   |   | $ | 773,958 |   |
|                                                                                                                                                  |   |                                                     |        |                                           |   |                                          |   |                                                 |   |   |   |   |   |
| Common                            stock canceled-previously issued for services rendered                                                              |   | $                                                        | (480,000    | )                                              | $      |                                          |   |                                                 |   |   | $  | (480,000 | ) |
|                                                                                                                                                  |   |                                                     |        |                                           |   |                                          |   |                                                 |   |   |   |   |   |
| Change                            in assets and liabilities:                                                                                          |   |                                                     |        |                                           |   |                                          |   |                                                 |   |   |  |   |   |
|                                                                                                                                                  |   |                                                     |        |                                           |   |                                          |   |                                                 |   |   |   |   |   |
| Increase                            in accounts receivable                                                                                            |   | $                                                        | (18,900     | )                                              | $      |                                          |   |                                                 |   |   | $ | (18,900 | ) |

----

**APPLIED                          DNA SCIENCES, INC**

**(A                          DEVELOPMENT STAGE COMPANY)**

**NOTES                          TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE                          30, 2007**

**(Unaudited)**

**NOTE I                        - RESTATEMENT OF FINANCIAL STATEMENTS                        (continued)**

|   |   | **As                              Previously****Reported** |   |                              **Adjustment** |   |                              **Reference** |   |                              **As Restated** |   |
|--------|--------|------------------------------------------------------------|--------|--------------------------------------------------|--------|-------------------------------------------------|--------|--------------------------------------------------------|--------|

| Increase                          in prepaid expenses and deposits                       |   | $      | (145,849   | )      | $      |   |   |   |   |   | $      | (145,849   | )      |
|------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|
|                                                                                     |   |   |       |   |   |   |   |   |   |   |   |       |   |
| Decrease                          in other assets                                        |   | $      | 5,940      |   | $      |   |   |   |   |   | $      | 5,940      |   |
|                                                                                     |   |   |       |   |   |   |   |   |   |   |   |       |   |
| Decease                          in due related parties                                  |   | $      | (52,662    | )      | $      |   |   |   |   |   |        | (52,662    | )      |
|                                                                                     |   |   |       |   |   |   |   |   |   |   |   |       |   |
| Increase                          (decrease) in accounts payable and accrued liabilities |   | $      | 1,685,792  |   | $      |   |   |   |   |   |   | 1,685,792  |   |
|                                                                                     |   |   |       |   |   |   |   |   |   |   |   |       |   |
| Net                          cash used in operating activities                           |   | $      | (2,306,666 | )      | $      |   |   |   |   |   |   | (2,306,666 | )      |
|                                                                                     |   |   |       |   |   |   |   |   |   |   |   |       |   |
| Cash                          flows from investing activities:                           |   |   |       |   | $      |   |   |   |   |   |   |       |   |
|                                                                                     |   |   |       |   |   |   |   |   |   |   |   |       |   |
| Payments                          for patent filing                                      |   | $      | -          |   | $      |   |   |   |   |   |   |       |   |
|                                                                                     |   |   |       |   |   |   |   |   |   |   |   |       |   |
| Capital                          expenditures                                            |   | $      | (35,851    | )      | $      |   |   |   |   |   |   | (35,851    | )      |
|                                                                                     |   |   |       |   |   |   |   |   |   |   |   |       |   |
| Net                          cash used in investing activities                           |   | $      | (35,851    | )      | $      |   |   |   |   |   |   | (35,851    | )      |
|                                                                                     |   |   |       |   |   |   |   |   |   |   |   |       |   |
| Cash                          flows from financing activities                            |   |   |       |   | $      |   |   |   |   |   |   |       |   |
|                                                                                     |   |   |       |   |   |   |   |   |   |   |   |       |   |
| Proceeds                          from sales of common stock, net                        |   | $      | -          |   | $      |   |   |   |   |   |   |       |   |
|                                                                                     |   |   |       |   |   |   |   |   |   |   |   |       |   |
| Proceeds                          form issuance of convertible notes                     |   | $      | 4,242,500  |   | $      |   |   |   |   |   |   | 4,242,500  |   |
|                                                                                     |   |   |       |   |   |   |   |   |   |   |   |       |   |
| Proceeds                          from exercise of options and warrants                  |   | $      | -          |   | $      |   |   |   |   |   |   | -          |   |
|                                                                                     |   |   |       |   |   |   |   |   |   |   |   |       |   |
| Payment                          of debt                                                 |   | $      | -          |   | $      |   |   |   |   |   |   | -          |   |
|                                                                                     |   |   |       |   |   |   |   |   |   |   |   |       |   |
| Proceeds                          from loans                                             |   | $      | -          |   | $      |   |   |   |   |   |   | -          |   |
|                                                                                     |   |   |       |   |   |   |   |   |   |   |   |       |   |
| Advances                          from shareholders                                      |   | $      | -          |   | $      |   |   |   |   |   |   | -          |   |
|                                                                                     |   |   |       |   |   |   |   |   |   |   |   |       |   |
| Net                          cash provided by financing activities                       |   | $      | 4,242,500  |   | $      |   |   |   |   |   |   | 4,242,500  |   |
|                                                                                     |   |   |       |   |   |   |   |   |   |   |   |       |   |
| Net                          increase in cash and cash equivalents                       |   | $      | 1,899,983  |   | $      |   |   |   |   |   |   | 1,899,983  |   |
|                                                                                     |   |   |       |   |   |   |   |   |   |   |   |       |   |
| Cash                          and cash equivalents at beginning of period                |   | $      | 31,190     |   | $      |   |   |   |   |   |   | 31,190     |   |
|                                                                                     |   |   |       |   |   |   |   |   |   |   |   |       |   |
| Cash                          and cash equivalents at end of period                      |   | $      | 1,931,173  |   | $      |   |   |   |   |   |   | 1,931,173  |   |

----

**APPLIED                          DNA SCIENCES, INC**

**(A                          DEVELOPMENT STAGE COMPANY)**

**NOTES                          TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE                          30, 2007**

**(Unaudited)**

**NOTE I                        - RESTATEMENT OF FINANCIAL STATEMENTS                        (continued)**

**Condensed                Consolidated Statement of Cash Flows**

**From                September 16, 2002 (date of inception) through June 30,                2006**

|                                                                                                                                                  |   | **As                            Previously****Reported**  |        |  **Adjustment**  |   |                            **Reference** |   |                            **As Restated** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------|-------------|----------------------------|--------|-----------------------------------------------|--------|------------------------------------------------------|--------|
|                                                                                                                                                  |   |                                                           |        |                       |   |                                          |   |                                                 |   |
| Cash                            flows from operating activities:                                                                                      |   |                                                           |        |                  |   |                                          |   |                                                 |   |
|                                                                                                                                                  |   |                                                           |        |                       |   |                                          |   |                                                 |   |   |   |   |   |
| Net                            income (loss)                                                                                                          |   | $                                                              | (84,181,303 | )                          | $      | (136,400                                      | )      |                                                 | g,e,f  |   | $ | (84,317,703 | ) |
|                                                                                                                                                  |   |                                                           |        |                       |   |                                          |   |                                                 |   |   |   |   |   |
| Adjustments                            to reconcile to net used in operating activities                                                               |   |                                                           |        |                       |   |                                          |   |                                                 |   |   |   |   |   |
|                                                                                                                                                  |   |                                                           |        |                       |   |                                          |   |                                                 |   |   |   |   |   |
| Depreciation                            and amortization                                                                                              |   | $                                                              | 1,374,467   |                       | $      | (5,756                                        | )      |                                                 | l      |   | $ | 1,368,711 |   |
|                                                                                                                                                  |   |                                                           |        |                       |   |                                          |   |                                                 |   |   |   |   |   |
| Organization                            expenses                                                                                                      |   | $                                                              | 88,500      |                       | $      |                                          |   |                                                 |   |   | $ | 88,500 |   |
|                                                                                                                                                  |   |                                                           |        |                       |   |                                          |   |                                                 |   |   |   |   |   |
| Preferred                            shares issued in exchange for services                                                                           |   | $                                                              | 1,500,000   |                       | $      |                                          |   |                                                 |   |   | $ | 1,500,000 |   |
|                                                                                                                                                  |   |                                                           |        |                       |   |                                          |   |                                                 |   |   |   |   |   |
| Warrants                            issued to consultants                                                                                             |   | $                                                              | 3,583,016   |                       | $      | 5,838,514                                     |   |                                                 | g      |   | $ | 9,421,530 |   |
|                                                                                                                                                  |   |                                                           |        |                       |   |                                          |   |                                                 |   |   |   |   |   |
| Income                            attributable to repricing of warrants and debt derivatives                                                          |   | $                                                              | (26,819,908 | )                          | $      | (4,131,703                                    | )      |                                                 | i      |   | $ | (30,951,611 | ) |
|                                                                                                                                                  |   |                                                           |        |                       |   |                                          |   |                                                 |   |   |   |   |   |
| Financing                            costs attributable to issuance of warrants                                                                       |   | $                                                              | 27,265,174  |                       | $      | (1,846,500                                    | )      |                                                 | m      |   | $ | 25,418,674 |   |
|                                                                                                                                                  |   |                                                           |        |                       |   |                                          |   |                                                 |   |   |   |   |   |
| Amortization                            of beneficial conversion feature -convertible notes                                                           |   | $                                                              | 10,461,000  |                       | $      |                                          |   |                                                 |   |   | $ | 10,461,000 |   |
|                                                                                                                                                  |   |                                                           |        |                       |   |                                          |   |                                                 |   |   |   |   |   |
| Amortization                            of capitalized finance costs                                                                                  |   | $                                                              | 247,238     |                       | $      |                                          |   |                                                 |   |   | $ | 247,238 |   |
|                                                                                                                                                  |   |                                                           |        |                       |   |                                          |   |                                                 |   |   |   |   |   |
| Amortization                            of debt discount attributable to convertible debenture                                                        |   | $                                                              | -           |                       | $      | 276,090                                       |   |                                                 | k      |   | $ | 276,090 |   |
|                                                                                                                                                  |   |                                                           |        |                       |   |                                          |   |                                                 |   |   |   |   |   |
| Fair                            value of common stock issued to related party in excess                            of                            debt |   | $                                                              | 1,365,000   |                       | $      |                                          |   |                                                 |   |   | $ | 1,365,000 |   |
|                                                                                                                                                  |   |                                                           |        |                       |   |                                          |   |                                                 |   |   |   |   |   |
| Common                            stock issued in exchange for services                                                                               |   | $                                                              | 31,284,573  |                       | $      |                                          |   |                                                 |   |   | $ | 31,284,573 |   |
|                                                                                                                                                  |   |                                                           |        |                       |   |                                          |   |                                                 |   |   |   |   |   |
| Common                            stock issued in exchange for intellectual property                                                                  |   | $                                                              | 14,689,100  |                       | $      |                                          |   |                                                 |   |   | $ | 14,689,100 |   |
|                                                                                                                                                  |   |                                                           |        |                       |   |                                          |   |                                                 |   |   |   |   |   |
| Common                            stock issued as penalty in connection with financing                                                                |   | $                                                              | 1,550,487   |                       | $      |                                          |   |                                                 |   |   | $ | 1,550,487 |   |
|                                                                                                                                                  |   |                                                           |        |                       |   |                                          |   |                                                 |   |   |   |   |   |
| Common                            stock canceled-previously issued for services rendered                                                              |   | $                                                              | (1,343,845  | )                          | $      |                                          |   |                                                 |   |   | $ | (1,343,845 | ) |
|                                                                                                                                                  |   |                                                           |        |                       |   |                                          |   |                                                 |   |   |   |   |   |
| Change                            in assets and liabilities:                                                                                          |   |                                                           |        |                       | $      |                                          |   |                                                 |   |   | $ |   |   |
|                                                                                                                                                  |   |                                                           |        |                       |   |                                          |   |                                                 |   |   |   |   |   |
| Increase                            in accounts receivable                                                                                            |   | $                                                              | (18,900     | )                          | $      |                                          |   |                                                 |   |   | $ | (18,900 | ) |

----

**APPLIED                            DNA SCIENCES, INC**

**(A                            DEVELOPMENT STAGE COMPANY)**

**NOTES                            TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE                            30, 2007**

**(Unaudited)**

**NOTE I                          - RESTATEMENT OF FINANCIAL STATEMENTS                          (continued)**

|   |   | **As                                Previously****Reported**  |   |  **Adjustment**  |   |                                **Reference** |   |                                **As Restated** |   |
|--------|--------|--------------------------------------------------------------------|--------|----------------------------|--------|---------------------------------------------------|--------|----------------------------------------------------------|--------|

| Increase                            in prepaid expenses and deposits                       |   | $      | (163,472    | )      | $      |   |   |   |   |   | $      | (163,472    | )      |
|--------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|--------|--------|--------|--------|--------|-------------|--------|
|                                                                                       |   |   |        |   |   |   |   |   |   |   |   |        |   |
| Decrease                            in other assets                                        |   | $      | (3,128      | )      | $      |   |   |   |   |   | $      | (3,128      | )      |
|                                                                                       |   |   |        |   |   |   |   |   |   |   |   |        |   |
| Decease                            in due related parties                                  |   | $      | -           |   | $      |   |   |   |   |   | $      | -           |   |
|                                                                                       |   |   |        |   |   |   |   |   |   |   |   |        |   |
| Increase                            (decrease) in accounts payable and accrued liabilities |   | $      | 4,079,990   |   | $      | 5,755  |   |   | l      |   | $      | 4,085,745   |   |
|                                                                                       |   |   |        |   |   |   |   |   |   |   |   |        |   |
| Net                            cash used in operating activities                           |   | $      | (15,042,011 | )      | $      |   |   |   |   |   | $      | (15,042,011 | )      |
|                                                                                       |   |   |        |   |   |   |   |   |   |   |   |        |   |
| Cash                            flows from investing activities:                           |   |   |        |   |   |   |   |   |   |   |   |        |   |
|                                                                                       |   |   |        |   |   |   |   |   |   |   |   |        |   |
| Payments                            for patent filing                                      |   | $      | (25,698     | )      | $      |   |   |   |   |   | $      | (25,698     | )      |
|                                                                                       |   |   |        |   |   |   |   |   |   |   |   |        |   |
| Capital                            expenditures                                            |   | $      | (48,602     | )      | $      |   |   |   |   |   | $      | (48,602     | )      |
|                                                                                       |   |   |        |   |   |   |   |   |   |   |   |        |   |
| Net                            cash used in investing activities                           |   | $      | (74,300     | )      | $      |   |   |   |   |   | $      | (74,300     | )      |
|                                                                                       |   |   |        |   |   |   |   |   |   |   |   |        |   |
| Cash                            flows from financing activities                            |   |   |        |   |   |   |   |   |   |   |   |        |   |
|                                                                                       |   |   |        |   |   |   |   |   |   |   |   |        |   |
| Proceeds                            from sales of common stock, net                        |   | $      | 432,000     |   | $      |   |   |   |   |   | $      | 432,000     |   |
|                                                                                       |   |   |        |   |   |   |   |   |   |   |   |        |   |
| Proceeds                            form issuance of convertible notes                     |   | $      | 13,446,500  |   | $      |   |   |   |   |   | $      | 13,446,500  |   |
|                                                                                       |   |   |        |   |   |   |   |   |   |   |   |        |   |
| Proceeds                            from exercise of options and warrants                  |   | $      | 343,750     |   | $      |   |   |   |   |   | $      | 343,750     |   |
|                                                                                       |   |   |        |   |   |   |   |   |   |   |   |        |   |
| Payment                            of debt                                                 |   | $      | (24,854     | )      | $      |   |   |   |   |   | $      | (24,854     | )      |
|                                                                                       |   |   |        |   |   |   |   |   |   |   |   |        |   |
| Proceeds                            from loans                                             |   | $      | 2,750,000   |   | $      |   |   |   |   |   | $      | 2,750,000   |   |
|                                                                                       |   |   |        |   |   |   |   |   |   |   |   |        |   |
| Advances                            from shareholders                                      |   | $      | 100,088     |   | $      |   |   |   |   |   | $      | 100,088     |   |
|                                                                                       |   |   |        |   |   |   |   |   |   |   |   |        |   |
| Net                            cash provided by financing activities                       |   | $      | 17,047,484  |   | $      |   |   |   |   |   | $      | 17,047,484  |   |
|                                                                                       |   |   |        |   |   |   |   |   |   |   |   |        |   |
| Net                            increase in cash and cash equivalents                       |   | $      | 1,931,173   |   | $      |   |   |   |   |   | $      | 1,931,173   |   |
|                                                                                       |   |   |        |   |   |   |   |   |   |   |   |        |   |
| Cash                            and cash equivalents at beginning of period                |   | $      | -           |   | $      |   |   |   |   |   | $      | -           |   |
|                                                                                       |   |   |        |   |   |   |   |   |   |   |   |        |   |
| Cash                            and cash equivalents at end of period                      |   | $      | 1,931,173   |   | $      |   |   |   |   |   | $      | 1,931,173   |   |

----

**APPLIED                DNA SCIENCES, INC**

**(A                DEVELOPMENT STAGE COMPANY)**

**NOTES                TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE                30, 2007**

**(Unaudited)**

**NOTE I              - RESTATEMENT OF FINANCIAL STATEMENTS (continued)**
| a.   | Subsequent                        to the filing of the Company’s June 30, 2006 quarterly report, the Company                        identified and amended its September 30, 2005 financial statements.                        The                        Company reported in the initial June 30, 2006 quarterly filing                        adjustments                        relating to warrant valuations in the current year, but upon                        subsequent                        review, realized these adjustments related to the prior year.                        The                        following table describes the effect on Additional Paid in                        Capital and                        Accumulated Deficit within the balance sheet and change in                        operations: |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                           |   |                              |        |                                     |   |        |   |       |        | Prior                          year       |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|-------------|------------------------------------------|--------|-------------|--------|------------|-------------|-------------------------------------------|--------|
|                                                                                                                                                                                           |   | Unaffected                        |        | Additional                               |   | Accumulated |   | Total      |        | Activity                          charged |   |
|                                                                                                                                                                                           |   | SE                          items |        | Paid                          in Capital |   | Deficit     |   | Deficiency |        | to                          operations    |   |
| Balance,                          October 1, 2004-As previously reported and                          restated                                                                                 |   | $                                 | 11,989,533  |                                     | $      | 6,118,993   |   | $          | (22,815,034 | )                                         | $      | (4,706,508 | ) |   |   |   |
| Unchanged                          activity reported as previously filed during year ended                          September 30,                          2005                                |   |                              | (11,857,297 | )                                        |   | 73,916,958  |   |       | (64,824,755 | )                                         |   | (2,765,094 | ) |   |   |  |
|                                                                                                                                                                                           |   |                              |        |                                     |   |        |   |       |        |                                      |   |   |   |   |   |   |
| Balance                          as previously filed, September 30, 2005                                                                                                                       |   |                              | 132,236     |                                     |   | 80,035,951  |   |       | (87,639,789 | )                                         |   | (7,471,602 | ) |   |   |   |
|                                                                                                                                                                                           |   |                              |        |                                     |   |        |   |       |        |                                      |   |   |   |   |   |   |
| Activity                          corrected with amended September 30, 2005 filing, but subsequent                          to                          previously filed June 30, 2006:   |   |                              |        |                                     |   |        |   |       |        |                                      |   |   |   |   |   |   |
| Correction                          of fair value of warrants issued for services rendered                          in December                          2004                             |   |                              | -           |                                     |   | (394,698    | )      |       | 394,698     |                                      |   | - |   | $ | (394,698 | ) |
| Fair                          value of warrants issued to non employees and consultants                          in December                          2004                                |   |                              | -           |                                     |   | 3,169,052   |   |       | (3,169,052  | )                                         |   | - |   |   | 3,169,052 |   |
| Fair                          value of warrants issued to non employees in February 2005                                                                                                  |   |                              | -           |                                     |   | 72,017      |   |       | (72,017     | )                                         |   | - |   |   | 72,017 |   |
| Correction                          of warrants issued to consultants and employees in June                          2005                                                                 |   |                              | -           |                                     |   | (849,047    | )      |       | 849,047     |                                      |   | - |   |   | (849,047 | ) |
| Adjustment                          for cancellation of previously issued warrants during year                          ended September                          30, 2005                      |   |                              | -           |                                     |   | 287,440     |   |       | (287,440    | )                                         |   | - |   |   | 287,440 |   |
|                                                                                                                                                                                           |   |                              |        |                                     |   |        |   |       |        |                                      |   |   |   |   |   |   |
| Balance                          per amended September 30, 2005                                                                                                                                |   |                              | 132,236     |                                     |   | 82,320,715  |   |       | (89,924,553 | )                                         |   | (7,471,602 | ) |   | 2,284,764 |   |
| Unchanged                          activity reported as previously filed during nine months                          ended June 30,                          2006                              |   |                                   | (213,648    | )                                        |   | (460,109    | )      |       | 5,743,249   |                                      |   | 5,069,492 |   |   |   |   |
|                                                                                                                                                                                           |   |                              |        |                                     |   |        |   |       |        |                                      |   |   |   |   |   |   |
| Previously                          filed June 30, 2006                                                                                                                                   |   |                              | (81,412     | )                                        |   | 81,860,606  |   | $          | (84,181,304 | )                                         | $      | (2,402,110 | ) |   |   |   |
| Correction                          in warrant valuation                                                                                                                                       |        |                                   |        |                                          |        | 136,400     |        |            | (136,400    | )                                         |        | - |  |  | (136,400 | ) |
|  Amended                          June 30, 2006:                                                                                                                                          |   | $                                 | (81,412     | )                                        | $      | 81,997,006  |   | $          | (84,317,704 | )                                         | $      | (2,402,110 | ) |   |   |   |
|                                                                                                                                                                                           |   |                              |        |                                     |   |        |   |       |        |                                      |   |   |   |   |   |   |
| Net                          change to operations:                                                                                                                                             |   |                              |        |                                     |   |        |   |       |        |                                      |   |   |   | $ | 2,148,364 |   |

| b.   | For                        the three months ended June 2006, the Company capitalized                        (and credited                        operations) finance costs paid and charged to operations                        in the previous                        quarter. The correction is to reflect within the proper accounting                        period                        the incurred capitalized financing costs. Net effect for                        the three months                        ended June 30, 2006: $390,000 reduction in operating expenses.                        Net effect                        for the nine months ended June 30, 2006:                        None |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**APPLIED                          DNA SCIENCES, INC**

**(A                          DEVELOPMENT STAGE COMPANY)**

**NOTES                          TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE                          30, 2007**

**(Unaudited)**

**NOTE I                        - RESTATEMENT OF FINANCIAL STATEMENTS (continued)**
| c.   | Subsequent                                  to the filing of the Company’s June 30, 2006 quarterly report, the Company                                  amended its March 31, 2006 filing to correct warrant                                  valuations. The                                  following table reconciles the amended Net gain                                  in fair value of debt                                  derivative and warrant liability: |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Debt                                    derivative and warrant liability balance as reported                                    in March 2006 amended                                    QSB:                                                                                                                                         |   | $      | 7,631,128 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|
| Debt                                    derivative and warrant liability balance as reported                                    in June 2006 amended                                    QSB (unchanged)                                                                                                                               |   |   | 5,698,286 |   |
| Net                                    change                                                                                                                                                                                                                                                                                         |   |   | 1,932,842 |   |
| Effect                                    on gain created by initial warrant valuations                                    relating to warrants issued                                    in conjunction with convertible debt issued in                                    June 2006                                    (unchanged)  |   |   | 1,561,119 |   |
| Amended                                    Net gain in fair value of debt derivative and                                    warrant                                    liability:                                                                                                                                                     |   | $      | 3,493,961 |   |

| d.   | The                                  Company originally charged Selling, General and                                  Administration for                                  warrants issued relating to financing activities.                                  The correct charge is to                                  interest expense. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| e.   | The                                  Company change in net gain in fair value of debt                                  derivative and warrant                                  liability is comprised of the following: |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| The                                    Company reported change in debt derivative and                                    warrant valuation as an                                    interest charge. Reclassification from interest                                    expense   |   | $      | 5,940,556  |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|
| Correction                                    noted in (a) above                                                                                                                                                                                                                 |   |   | (2,148,364 | )      |
| Correction                                    noted in (d) above                                                                                                                                                                                                                 |   |   | 563,750    |   |
| Net                                    change in Net gain in fair value of debt derivative                                    and warrant                                    liability:                                                                                          |   | $      | 4,355,942  |   |

| f.   | Reclassification                                  from interest expense to gain on change in fair                                  value of debt derivative                                  and warrant liability. The Company originally recorded                                  in error the change                                  in debt derivative and warrant valuations as a                                  credit to interest expense.                                  This correction is a reclassification to the proper                                  account. Net effect                                  was $5,940,556. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| g.   | The                                  Company amended in prior filings the original recorded                                  non financing                                  related warrants which were recorded as a charge                                  to interest expense. The                                  corrected proper treatment is a charge to selling                                  general and                                  administration expense. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**APPLIED                                      DNA SCIENCES, INC**

**(A                                      DEVELOPMENT STAGE COMPANY)**

**NOTES                                      TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**JUNE                                      30, 2007**

**(Unaudited)**

**NOTE I                                    - RESTATEMENT OF FINANCIAL STATEMENTS (continued)**
| h.   | The                                              Inception to date change in interest                                              expense is comprised of the                                              following: |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Reclassification                                                from interest expense as described                                                in (f) above:                                                                           |   | $      | 5,940,556  |   |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|
|   | Reclassification                                                from selling, general and administration                                                expense as described                                                in (g) above  |   | $      | 5,838,514  |   |
|   | Correction                                                as noted in (a) above                                                                                                                                                           |   |   | (2,148,364 | )      |
|   | Correction                                                as noted in (d) above                                                                                                                                                           |   |   | 563,750    |   |
|   | Correction                                                in warrant valuation as noted in                                                (a) above                                                                                       |   |   | (136,400   | )      |
|   | Net                                                change in inception to date reported                                                interest expense:                                                                                  |   | $      | 10,058,055 |   |

| i.   | The                                                change in reported net gain in fair                                                value of debt derivative and warrant                                                liability is comprised of the                                                following: |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Reclassification                                                with the cash flow statement initial                                                warrant valuations relating                                                to                                                financing (see j below)  |   | $      | 2,271,000 |   |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|
|   | Correction                                                as noted in (a) above                                                                                                                                                                                                                           |   |   | 2,148,364 |   |
|   | Correction                                                as noted in (d) above                                                                                                                                                                                                                           |   |   | (563,750  | )      |
|   | Reclassification                                                of amortization of capitalized financing                                                costs (see k below)                                                                                                                               |   |   | 276,090   |   |
|   | Net                                                change in reported fair value of                                                debt derivative and warrant                                                liability:                                                                                  |   | $      | 4,131,704 |   |

| j.   | Effect                                              of recording the non cash financing                                              costs relating to issuance of warrants                                              of $2,271,000 (reclassified from net                                              change in fair value of debt and                                              derivative valuations) |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| k.   | Recording                                              the non cash amortization relating                                              to the financing costs described in                                              (j)                                              above. (Reclassified from net change                                              in fair value of debt and derivative                                              valuations) |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| l.   | Correction                                              of inception to date non cash depreciation                                              and amortization on the cash                                              flow statement. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| m.   | Correct                                              the life to date non cash financing                                              costs attributable to warrants, net                                              of                                              amortization (k). |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ITEM      2. MANAGEMENT’S DISCUSSION AND ANALYSIS**

| ·   | discuss                our future expectations; |
|--------------------|-------------------------------------------------|

| ·   | contain                projections of our future results of operations or of our financial                condition; and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------|

| ·   | state                other “forward-looking”information. |
|--------------------|----------------------------------------------------------------------|

**Introduction**

| ·   | assure                manufacturers, suppliers, distributors, retailers and end-users that                their                products are authentic and can be forensically                authenticated; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | integrate                our SigNature DNA Markers with existing security solutions such as                barcodes, radio frequency identification (RFID) tags, holograms,                microchips and other securities measures;                and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | add                value to the “bottom-line” by helping to diminish product diversion and                counterfeiting. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| ·   | continuing                to improve and customize our solution to meet our potential customers’                needs; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| ·   | continuing                to develop and enhance our existing DNA marker authentication                technologies; |
|--------------------|----------------------------------------------------------------------------------------------------------------------|

----

| ·   | expanding                our customer base both domestically and abroad by targeting high                volume                markets; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | augmenting                our competitive position through strategic acquisitions and                alliances. |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

**Plan      of Operations**

*General*

*Recent      Agreements*

----

*Product      Research and Development*

*Acquisition      of Plant and Equipment and Other Assets*

*Number      of Employees*

**Critical      Accounting Policies**

| ·   | Equity                issued with registration rights |
|--------------------|-------------------------------------------------------|

| ·   | Warrant                liability |
|--------------------|----------------------------------|

| ·   | Fair                value of intangible assets |
|--------------------|------------------------------------------------|

----

*Equity      Issued with Registration Rights*

*Warrant      Liability *

*Fair      Value of Intangible Assets*

----

| Trade                secrets and developed technologies (Weighted average life of 7                years) |   | $      | 9,430,900  |   |
|-----------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|
| Patents                (Weighted average life of 5 years)                                                 |   |   | 34,257     |   |
| Total                Amortized identifiable intangible assets-Gross carrying value:                       |   | $      | 9,465,157  |   |
| Less:                                                                                                     |   |   |       |   |
| Accumulated                Amortization                                                                   |   |        | (1,980,664 | )      |
| Impairment                                                                                                |   |        | (5,655,011 | )      |
| Net:                                                                                                      |   | $      | 1,829,482  |   |
| Residual                value:                                                                            |   | $      | 0          |   |

| 2007                               |   | $      | 277,982   |   |
|------------------------------------|--------|--------|-----------|--------|
| 2008                               |   |   | 370,642   |   |
| 2009                               |   |   | 365,504   |   |
| 2010                               |   |   | 363,791   |   |
| 2011                and thereafter |   |   | 451,563   |   |
| Total                              |   | $      | 1,829,482 |   |

*Use      of Estimates*

**Restatement      of Consolidated Financial Statements**

----

**Comparis**
**on      of Results of Operations for the Three Months Ended June 30, 2007 and      2006**

**Revenues**

**Costs      and Expenses **

*Selling,      General and Administrative*

*Research      and Development*

*Depreciation      and Amortization*

*Total      Operating Expenses*

*Other      Income/Loss*

----

*Interest      Expenses*

*Net      Income (loss)*

**Liquidity      and Capital Resources**

----

----

*pari      passu*

----

----

**Off-Balance      Sheet Arrangements**

**Inflation**

**Going      Concern**

**RISK      FACTORS**

----

**If**
**      We Are Unable to Obtain Additional Financing Our Business Operations Will be      Harmed or Discontinued, and If We Do Obtain Additional Financing Our      Shareholders May Suffer Substantial Dilution.**

**We      Have a History Of Losses Which May Continue, and Which May **
**Harm      Our Ability to Obtain Financing and Continue Our      Operations.**

**Our      Independent Auditors Have Expressed Substantial Doubt About Our Ability to      Continue As a Going Concern, Which May Hinder Our Ability to Obtain Future      Financing.**

----

**We      have a Short Operating History, a Relatively New Business Model, and Have Not      Produced Significant Revenues. This Makes it Difficult to Evaluate Our Future      Prospects and Increases the Risk That We Will Not Be      Successful.**

**We      Are Obligated to Pay Liquidated Damages As a Result of Our Failure to Have      the      Registration Statement on Form SB-2 Declared Effective Prior to June 15, 2005,      and any Payment of Liquidated Damages Will Either Result in Depletion of Our      Limited Working Capital or Issuance of Shares of Common Stock Which Would Cause      Dilution to Our Existing Shareholders.**

**.**

----

**If      Our Existing Products and Services are Not Accepted by Potential Customers      or We      Fail to Introduce New Products and Services, Our Business, Results of Operations      and Financial Condition Will be Harmed.**

| ·   | availability,                quality and price relative to competitive solutions; |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | customers’                opinions of the solutions’ utility; |
|--------------------|---------------------------------------------------------------------------|

| ·   | ease                of use; |
|--------------------|-----------------------------|

| ·   | consistency                with prior practices; |
|--------------------|--------------------------------------------------|

| ·   | scientists’                opinions of the solutions’usefulness; |
|--------------------|------------------------------------------------------------------------------|

| ·   | citation                of the solutions in published research;                and |
|--------------------|------------------------------------------------------------------------------------|

| ·   | general                trends in anti-counterfeit and security solutions’ research. |
|--------------------|-------------------------------------------------------------------------------------------|

**If      We Are Unable to Retain the Services of Drs. Hayward or Liang We May Not Be      Able      to Continue Our Operations**
**.      **

**The      Markets for our SigNature Program are Very Competitive, and We May be Unable      to      Continue to Compete Effectively in this Industry in the      Future.**

----

| ·   | product                performance, features and liability; |
|--------------------|-------------------------------------------------------------|

| ·   | price; |
|--------------------|--------|

| ·   | timing                of product introductions; |
|--------------------|-------------------------------------------------|

| ·   | ability                to develop, maintain and protect proprietary products and technologies; |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | sales                and distribution capabilities; |
|--------------------|-----------------------------------------------------|

| ·   | technical                support and service; |
|--------------------|-----------------------------------------------|

| ·   | brand                loyalty; |
|--------------------|-------------------------------|

| ·   | applications                support; and |
|--------------------|------------------------------------------|

| ·   | breadth                of product line. |
|--------------------|-----------------------------------------|

**We      Need to Expand Our Sales, Marketing and Support Organizations and Our      Distribution Arrangements to Increase Market Acceptance of Our Products and      Services. **

**Failure      to License New Technologies Could Impair Sales of Our Existing Products or      Any      New Product Development We Undertake in the Future. **

----

**Our      Failure To Manage Our Growth In Operations and Acquisitions of New Product      Lines      and New Businesses Could Harm our Business**
**.      **

| ·   | operations                and financial systems; |
|--------------------|--------------------------------------------------|

| ·   | procedures                and controls; and |
|--------------------|---------------------------------------------|

| ·   | training                and management of our employees. |
|--------------------|----------------------------------------------------------|

| ·   | difficulties                in staffing, managing and integrating international operations due                to                language, cultural or other                differences; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | different                or conflicting regulatory or legal                requirements; |
|--------------------|------------------------------------------------------------------------------------------|

| ·   | foreign                currency fluctuations; and |
|--------------------|---------------------------------------------------|

| ·   | diversion                of significant time and attention of our                management. |
|--------------------|----------------------------------------------------------------------------------------------|

**Failure      to Attract and Retain Qualified Scientific, Production and Managerial Personnel      Could Harm Our Business. **

----

**Our**
**      Intellectual Property Rights Are Valuable, and Any Inability to Protect Them      Could Reduce the Value of Our Products, Services and      Brand.**

**Intellectual      Property Litigation Could Harm Our Business. **

----

**Accidents      Related to Hazardous Materials Could Adversely Affect Our Business.**

**Potential      Product Liability Claims Could Affect Our Earnings and Financial Condition.      **

**Litigation      Generally Could Affect Our Financial Condition and Results of      Operations.**

**Any      Default on Payments Due under Settlement Agreements with Former Employees and      Consultants Could Affect Our Financial Condition and Results of      Operations**

----

**Matter      Voluntarily Reported to the Securities and Exchange      Commission**

**There**
**      Are a Large Number of Shares Underlying Our Options and Warrants That May be      Available for Future Sale and the Sale of These Shares May Depress the Market      Price of Our Common Stock and Will Cause Immediate and Substantial Dilution      to      Our Existing Stockholders.**

**If      We Fail to Remain Current on Our Reporting Requirements, We Could be Removed      From the OTC Bulletin Board Which Would Limit the Ability of Broker-Dealers      to      Sell Our Securities and the Ability of Stockholders to Sell Their Securities      in      the Secondary Market.**

**Our      Common Stock is Subject to the “Penny Stock” Rules of the SEC and the Trading      Market in Our Securities is Limited, Which Makes Transactions in Our Stock      Cumbersome and May Reduce the Value of an Investment in Our Stock.**

----

| ·   | that                a broker or dealer approve a person’s account for transactions in penny                stocks; and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| ·   | the                broker or dealer receive from the investor a written agreement to                the                transaction, setting forth the identity and quantity of the penny                stock to                be purchased. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | obtain                financial information and investment experience objectives of the                person;                and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | make                a reasonable determination that the transactions in penny stocks                are                suitable for that person and the person has sufficient knowledge                and                experience in financial matters to be capable of evaluating the risks                of                transactions in penny stocks. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | sets                forth the basis on which the broker or dealer made the suitability                determination; and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------|

| ·   | that                the broker or dealer received a signed, written agreement from the                investor prior to the transaction. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------|

**ITEM      3. CONTROLS AND PROCEDURES**

*Evaluation      of Disclosure Controls and Procedures:*

| ·   | accounting                for and disclosing the fair value of warrants and options to acquire                our                common stock issued to non-employees as a current period                expense; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | accounting                for and disclosing the fair value of shares issued to a former Director                in                exchange for previously incurred                debt; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | accounting                for and disclosing the fair value of warrants issued to note holders                and                consultants having registration rights;                and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | accounting                for and disclosing the revaluation for warrant liabilities as of                each                reporting period. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

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*Changes      in internal controls:*

**Changes      in **
**Internal      Controls**

| ·   | We                reviewed all convertible securities to identify any securities that                may                have embedded beneficial conversion features or derivatives;                and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We                have improved the supervision and training of our accounting staff                to                understand and implement applicable accounting requirements, policies                and                procedures applicable to the accounting and disclosure of convertible                securities and derivatives. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**PART      II--OTHER INFORMATION**

**ITEM      1. LEGAL PROCEEDINGS**

*Paul*
*        Reep        v. Applied DNA Sciences, Inc., Case No.: BC345702, Case No.        BC367661*

*Douglas      A. Falkner v. Applied DNA Sciences, Inc./N.C. Industrial Commission File No.      585698 *

*Settlement      of Litigation*

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**ITEM      2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF      PROCEEDS**

**ITEM      3. DEFAULTS UPON SENIOR SECURITIES**

**ITEM      4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS**

----

|                                                                              |                   |                       |                |
|-----------------------------------------------------------------------------------|------------------------|----------------------------|---------------------|
| **MATTER**                                                                   | **FOR**           | **AGAINST/WITHHELD**  | **ABSTAINED**  |
|  (1)                Election of Directors:                              |                   |                       |                |
|  James                A. Hayward                                        |  68,129,155  |  145,708         |                |
|  Yacov                Shamash                                           |  68,129,023  |  145,840         |                |
|  Jun-Jei                Sheu                                            |  66,493,485  |  1,781,378       |                |
|  Sanford                R. Simon                                        |  67,799,163  |  475,700         |                |
|  (2)                Ratification of Auditors                            |  67,895,259  |  249,050         |  130,554  |
|  (3)                Ratification and Approval of the Charter Amendment  |  64,915,372  |  3,326,883       |  32,607   |
|  (4)                Ratification and Approval of the Charter Amendment  |  44,010,949  |  2,904,837       |  127,756  |

**ITEM      5. OTHER INFORMATION**

**ITEM      6. EXHIBITS**

| 3(i)1 | Articles                of Incorporation of Applied DNA Sciences, Inc. as amended, filed                herewith. |
|-------|-------------------------------------------------------------------------------------------------------------------|
|   |   |
|--------|--------|
| 3(i)2 | Certificate              of Designation , Powers, Preferences and Rights of the Founders' Series              of              Convertible Preferred Stock, filed              herewith.  |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1 | Joint                Development and Marketing Agreement, dated April 18, 2007 by and                between                Applied DNA Sciences and International Imaging Materials, Inc. filed                as an                exhibit to the current report on Form 8-K filed with the SEC on April                24,                2007 and incorporated herein by                reference. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2 | Technology                Reseller Agreement, dated May 30, 2007 by and between Applied DNA                Sciences                and Printcolor Screen Ltd. filed as an exhibit to the current report                on                Form 8-K filed with the SEC on June 1, 2007 and incorporated herein                by                reference. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.3 | Feasibility                Study Agreement, dated June 27, 2007 by and between Applied DNA Sciences                and Supima filed as an exhibit to the current report on Form 8-K                filed                with the SEC on July 3, 2007 and incorporated herein by                reference. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.1 | 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. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 31.2 | 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. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.1 | 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). |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.2 | 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). |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**SIGNATURES**

**APPLIED      DNA SCIENCES, INC.**

| Date:                August 20, 2007 | By:                /s/ JAMES A. HAYWARD                                                                                                                         |
|--------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                 | James                A. Hayward                                                                                                                                 |
|                                 | Chief                Executive Officer (Principal Executive Officer, PrincipalFinancial                Officer and Principal Accounting                Officer) |