----

----

| 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 May 15, 2007, was approximately 130,808,137                    shares. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

| **APPLIED                DNA SCIENCES,                INC** |
|-------------------------------------------------------------|
| **QUARTERLY                REPORT ON FORM 10-QSB FOR THE**  |
| **QUARTERLY                PERIOD ENDING MARCH 31, 2007**   |
|                                                        |   |   |
| **Table                of Contents**                        |
|                                                        |   |   |
| **PART              I. FINANCIAL INFORMATION**              |   |
|                                                        |   |   |   |
|                                                        | **Item              1.** **Financial              Statements** |   |
|                                                        |   |   |   |
|                                                        |   | Condensed                Consolidated Balance Sheet: March 31, 2007 (Unaudited) | 1 |
|                                                        |   |   |   |
|                                                        |   | Condensed                Consolidated Statements of Losses:Three                Months Ended March 31, 2007 and 2006 (Unaudited) and the Period from                September 16, 2002 (Date of Inception) Through March 31, 2007                (Unaudited) | 2 |
|                                                        |   |   |   |
|                                                        |   | Condensed                Consolidated Statement of Stockholder’s Equity (Deficiency):For                the Period from September 16, 2002 (Date of Inception) Through March                31,                2007 (Unaudited) | 3 |
|                                                        |   |   |   |
|                                                        |   | Condensed                Consolidated Statements of Cash Flows:Three                Months Ended March 31, 2007 and 2006 (Unaudited) and the Period from                September 16, 2002 (Date of Inception) Through March 31, 2007                (Unaudited) | 17 |
|                                                        |   |   |   |
|                                                        |   | Notes                to Unaudited Condensed Consolidated Financial Information: March                31,                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)**                                                                                                                                        |   |
|                                                                                                                                                   |   | March                31, |   |
|                                                                                                                                                   |   | 2007 |   |
| ASSETS                                                                                                                                                 |   |
| Current                assets:                                                                                                                         |   |   |   |   |
| Cash                                                                                                                                                   |   | $ | 89,232 |   |
| Prepaid                expenses                                                                                                                        |   |   | 26,667 |   |
| Total                current assets                                                                                                                    |   |   | 115,899 |   |
|                                                                                                                                                   |   |   |   |   |
| Property,                plant and equipment-net of accumulated depreciation of                $51,800                                                 |   |   | 136,561 |   |
|                                                                                                                                                   |   |   |   |   |
| Other                assets:                                                                                                                           |   |   |   |   |
| Deposits                                                                                                                                               |   |   | 13,822 |   |
| Capitalized                finance costs-net of accumulated amortization of                $1,413,563                                                  |   |   | 271,537 |   |
|                                                                                                                                                   |   |   |   |   |
| Intangible                assets:                                                                                                                      |   |   |   |   |
| Patients,                net of accumulated amortization of $22,019 (Note B)                                                                           |   |   | 12,238 |   |
| Intellectual                property, net of accumulated amortization and write off of $7,520,996                (Note B)                              |   |   | 1,909,904 |   |
|                                                                                                                                                   |   |   |   |   |
| Total                Assets                                                                                                                            |   | $ | 2,459,961 |   |
|                                                                                                                                                   |   |   |   |   |
| LIABILITIES                AND DEFICIENCY IN STOCKHOLDERS' EQUITY                                                                                      |
|                                                                                                                                                   |   |   |   |   |
| Current                liabilities:                                                                                                                    |   |   |   |   |
| Accounts                payable and accrued liabilities                                                                                                |   | $ | 7,926,210 |   |
| Convertible                notes payable, net of unamortized discount (Note D)                                                                         |   |   | 4,930,894 |   |
| Total                current liabilities                                                                                                               |   |   | 12,857,104 |   |
|                                                                                                                                                   |   |   |   |   |
| Debt                derivative and warrant liability                                                                                                   |   |   | 8,820,085 |   |
|                                                                                                                                                   |   |   |   |   |
| Commitments                and contingencies (Note J)                                                                                                  |   |   |   |   |
|                                                                                                                                                   |   |   |   |   |
| Deficiency                in Stockholders' Equity- (Note F)                                                                                            |   |   |   |   |
| Preferred                stock, par value $0.001 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;                121,162,385 issued and outstanding (see Note J) |   |   | 121,162 |   |
| Additional                paid in capital                                                                                                              |   |   | 83,037,855 |   |
| Accumulated                deficit                                                                                                                     |   |   | (102,376,251 | ) |
| Total                deficiency in stockholders' equity                                                                                                |   |   | (19,217,228 | ) |
|                                                                                                                                                   |   |   |   |   |
| Total                liabilities and Deficiency in Stockholders' Equity                                                                                |   | $ | 2,459,961 |   |
|                                                                                                                                                   |   |   |   |   |
| 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 March 31, |        | For                the six months Ended March 31, |   | (Date                of Inception)     |   |
|                                                                                                    |   | 2007                                                |        | 2006                                              |   | 2007                                   |   | 2006 |   | Through                March 31, 2007 |   |
|                                                                                                    |   |                                                |        | RESTATED                                          |   |                                   |   | RESTATED |   |   |   |
| Sales                                                                                                   |   | $                                                   | -           |                                              | $      | -                                      |   | $ | - |   | $ | - |   | $ | 18,900 |   |
| Cost                of sales                                                                            |   |                                                | -           |                                              |   | -                                      |   |   | - |   |   | - |   |   | 15,639 |   |
| Gross                Profit                                                                             |   |                                                | -           |                                              |   | -                                      |   |   | - |   |   | - |   |   | 3,261 |   |
|                                                                                                    |   |                                                |        |                                              |   |                                   |   |   |   |   |   |   |   |   |   |   |
| Operating                expenses:                                                                      |   |                                                |        |                                              |   |                                   |   |   |   |   |   |   |   |   |   |   |
| Selling,                general and administrative                                                      |   |                                                | 1,988,931   |                                              |   | 949,634                                |   |   | 4,043,386 |   |   | 2,794,311 |   |   | 84,109,344 |   |
| Research                and development                                                                 |   |                                                | 39,479      |                                              |   | 75,033                                 |   |   | 68,785 |   |   | 91,303 |   |   | 1,099,384 |   |
| Impairment                of intangible asset(s)                                                        |   |                                                | -           |                                              |   | -                                      |   |   | - |   |   | - |   |   | 5,655,011 |   |
| Depreciation                and amortization                                                            |   |                                                | 108,358     |                                              |   | 341,676                                |   |   | 216,237 |   |   | 684,375 |   |   | 1,945,963 |   |
|                                                                                                    |   |                                                |        |                                              |   |                                   |   |   |   |   |   |   |   |   |   |   |
| Total                operating expenses                                                                 |   |                                                | 2,136,768   |                                              |   | 1,366,343                              |   |   | 4,328,408 |   |   | 3,569,989 |   |   | 92,809,702 |   |
|                                                                                                    |   |                                                |        |                                              |   |                                   |   |   |   |   |   |   |   |   |   |   |
| NET                LOSS FROM OPERATIONS                                                                 |   |                                                | (2,136,768  | )                                                 |   | (1,366,343                             | )      |   | (4,328,408 | ) |   | (3,569,989 | ) |   | (92,806,441 | ) |
|                                                                                                    |   |                                                |        |                                              |   |                                   |   |   |   |   |   |   |   |   |   |   |
| Net                gain (loss) in revaluation of debt derivative and warrant                liabilities |   |                                                | (6,387,761  | )                                                 |   | 3,967,870                              |   |   | (4,289,290 | ) |   | 10,756,660 |   |   | 29,256,537 |   |
| Other                income                                                                             |   |                                                | -           |                                              |   | 3,520                                  |   |   | 977 |   |   | 9,493 |   |   | 111,807 |   |
| Interest                expense                                                                         |   |                                                | (845,709    | )                                                 |   | (571,696                               | )      |   | (1,424,739 | ) |   | (2,350,402 | ) |   | (38,938,153 | ) |
|                                                                                                    |   |                                                |        |                                              |   |                                   |   |   |   |   |   |   |   |   |   |   |
| Net                income (loss) before provision for income taxes                                      |   |                                                | (9,370,238  | )                                                 |   | 2,033,351                              |   |   | (10,041,460 | ) |   | 4,845,762 |   |   | (102,376,251 | ) |
|                                                                                                    |   |                                                |        |                                              |   |                                   |   |   |   |   |   |   |   |   |   |   |
| Income                taxes (benefit)                                                                   |   |                                                | -           |                                              |   | -                                      |   |   | - |   |   | - |   |   | - |   |
|                                                                                                    |   |                                                |        |                                              |   |                                   |   |   |   |   |   |   |   |   |   |   |
| NET                INCOME (LOSS)                                                                        |   | $                                                   | (9,370,238  | )                                                 | $      | 2,033,351                              |   | $ | (10,041,460 | ) | $ | 4,845,762 |   | $ | (102,376,251 | ) |
|                                                                                                    |   |                                                |        |                                              |   |                                   |   |   |   |   |   |   |   |   |   |   |
| Net                income (loss) per share-basic                                                        |   | $                                                   | (0.08       | )                                                 | $      | 0.02                                   |   | $ | (0.08 | ) | $ | 0.04 |   |   |   |   |
|                                                                                                    |   |                                                |        |                                              |   |                                   |   |   |   |   |   |   |   |   |   |   |
| Net                loss per share-assuming fully diluted-Note A                                         |   |                                                |        |                                              | $      | (0.02                                  | )      |   |   |   | $ | (0.03 | ) |   |   |   |
|                                                                                                    |   |                                                |        |                                              |   |                                   |   |   |   |   |   |   |   |   |   |   |
| Weighted                average shares outstanding-                                                     |   |                                                |        |                                              |   |                                   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                   |   |                                                | 121,162,385 |                                              |   | 116,483,044                            |   |   | 121,091,176 |   |   | 114,487,589 |   |   |   |   |
| Fully                diluted                                                                            |   |                                                |        |                                              |   | 119,483,044                            |   |   |   |   |   | 117,487,589 |   |   |   |   |
|                                                                                                    |   |                                                |        |                                              |   |                                   |   |   |   |   |   |   |   |   |   |   |

| 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 MARCH 31,                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                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 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 |   |

----

| 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 MARCH                  31,                  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 $2.50 per     |   |      |   |   |      |   |   |   |       |    |   |                   |   |         |    |        |   |   |   |   |   |        |   |   |   |   |   |   |
| share                in March 2003              |   |      | -      |   |      | -      |   |   | 91,060     |    |   | 10                     |   |         | 230,624 |        |   | -      |   |   | -      |        |   | -      |   |   | 230,634 |   |
|                                            |   |      |   |   |      |   |   |   |       |    |   |                   |   |         |    |        |   |   |   |   |   |        |   |   |   |   |   |   |
| 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 |   |

----

| 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 MARCH                    31,                    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 subscribed in           |   |      |   |      |   |   |   |        |    |                   |   |       |   |         |    |        |   |    |   |   |   |   |   |   |   |   |   |   |
| exchange                for cash at $2.50 per       |   |      |   |      |   |   |   |        |    |                   |   |       |   |         |    |        |   |    |   |   |   |   |   |   |   |   |   |   |
| share                pursuant to a private          |   |      |   |      |   |   |   |        |    |                   |   |       |   |         |    |        |   |    |   |   |   |   |   |   |   |   |   |   |
| placement                on June 30, 2003           |   |      | -      |      |   | -      |   |        | -       |                   |   | -          |   |         | -       |        |   | 24,000  |   |   | - |   |   | - |   |   | 24,000 |   |
|                                                |   |      |   |      |   |   |   |        |    |                   |   |       |   |         |    |        |   |    |   |   |   |   |   |   |   |   |   |   |
| 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 |   |

----

| 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 MARCH                      31,                      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    |   |
| 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 | ) |
|                                               |   |      |   |      |   |   |   |        |       |                   |   |       |   |         |        |        |   |     |   |   |   |   |   |   |   |   |   |   |
| 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 | )           |   | -        |   |   | - |   |   | - |   |   | - |   |

----

| 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                        MARCH 31,                        2007(unaudited) |   |

|                                                |   |      |   |      |   |   |   |        |    | Additional             |   |       |   |         |    | Deficit     |   |     |   |
|-----------------------------------------------------|--------|-----------|--------|-----------|--------|--------|--------|-------------|---------|------------------------|--------|------------|--------|--------------|---------|-------------|--------|----------|--------|
|                                                |   |      |   | Preferred |   |   |   | Common      |    | Paid                in |   | Common     |   | Stock        |    | Accumulated |   |     |   |
|                                                |   | Preferred |   | Shares    |   | Common |   |  Stock |    | Capital                |   | Stock      |   | Subscription |    | Development |   |     |   |
|                                                |   | Shares    |   | Amount    |   | Shares |   | Amount      |    | Amount                 |   | Subscribed |   | Receivable   |    | Stage       |   | Total    |   |
| Common                Stock issued pursuant         |   |      |   |      |   |   |   |        |    |                   |   |       |   |         |    |        |   |     |   |   |   |   |   |   |   |   |   |   |
| to                subscription at $2.50 share       |   |      |   |      |   |   |   |        |    |                   |   |       |   |         |    |        |   |     |   |   |   |   |   |   |   |   |   |   |
| in                January 2004                      |   |      | -      |      |   | -      |   |        | 41,600  |                   |   | 20,800     |   |         | 83,200  |        |   | (104,000 | )      |   | - |   |   | - |   |   | - |   |
|                                                |   |      |   |      |   |   |   |        |    |                   |   |       |   |         |    |        |   |     |   |   |   |   |   |   |   |   |   |   |
| 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 |   |

----

| 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                        MARCH 31,                        2007(unaudited) |   |

|                                            |   |      |   |      |   |   |   |        |    | Additional             |   |       |   |         |    | Deficit     |   |   |   |
|-------------------------------------------------|--------|-----------|--------|-----------|--------|--------|--------|-------------|---------|------------------------|--------|------------|--------|--------------|---------|-------------|--------|--------|--------|
|                                            |   |      |   | Preferred |   |   |   | Common      |    | Paid                in |   | Common     |   | Stock        |    | Accumulated |   |   |   |
|                                            |   | 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                $2.35 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 |   |
|                                            |   |      |   |      |   |   |   |        |    |                   |   |       |   |         |    |        |   |   |   |   |   |   |   |   |   |   |   |   |
| 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 |   |

----

| 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                          MARCH 31,                          2007(unaudited) |   |

|                                              |   |      |   |      |   |   |   |   |       | Additional             |   |       |   |         |      | Deficit     |   |   |   |
|---------------------------------------------------|--------|-----------|--------|-----------|--------|--------|--------|--------|------------|------------------------|--------|------------|--------|--------------|-----------|-------------|--------|--------|--------|
|                                              |   |      |   | Preferred |   |   |   | Common |       | Paid                in |   | Common     |   | Stock        |      | Accumulated |   |   |   |
|                                              |   | 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                $0.47 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 |   |
|                                              |   |      |   |      |   |   |   |   |       |                   |   |       |   |         |      |        |   |   |   |   |   |   |   |   |   |   |   |   |
| 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                            MARCH 31,                            2007(unaudited) |   |

|                                                   |   |      |   |      |   |   |   |   |       | Additional             |   |       |   |         |      | Deficit     |   |     |   |
|--------------------------------------------------------|--------|-----------|--------|-----------|--------|--------|--------|--------|------------|------------------------|--------|------------|--------|--------------|-----------|-------------|--------|----------|--------|
|                                                   |   |      |   | Preferred |   |   |   | Common |       | Paid                in |   | Common     |   | Stock        |      | Accumulated |   |     |   |
|                                                   |   | 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 |   |      |   |      |   |   |   |   |       |                   |   |       |   |         |      |        |   |     |   |   |   |   |   |   |   |   |   |   |
| 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 |   |

----

| 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                              MARCH 31,                              2007(unaudited) |   |

|                                                |   |      |   |      |   |   |   |   |      |                   |   |       |   |         |       |        |   |     |   |
|-----------------------------------------------------|--------|-----------|--------|-----------|--------|--------|--------|--------|-----------|------------------------|--------|------------|--------|--------------|------------|-------------|--------|----------|--------|
|                                                |   |      |   |      |   |   |   |   |      | Additional             |   |       |   |         |       | Deficit     |   |     |   |
|                                                |   |      |   | Preferred |   |   |   | Common |      | Paid                in |   | Common     |   | Stock        |       | Accumulated |   |     |   |
|                                                |   | Preferred |   | Shares    |   | Common |   | Stock  |      | Capital                |   | Stock      |   | Subscription |       | Development |   |     |   |
|                                                |   | Shares    |   | Amount    |   | Shares |   | Amount |      | Amount                 |   | Subscribed |   | Receivable   |       | Stage       |   | Total    |   |
| 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 |   |
|                                                |   |      |   |      |   |   |   |   |      |                   |   |       |   |         |       |        |   |     |   |   |   |   |   |   |   |   |   |   |
| 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 |   |

----

| 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 MARCH 31,                                2007(unaudited) |   |

|                                            |   |      |   |      |   |   |   |   |       | Additional             |   |       |   |         |      | Deficit     |   |   |   |
|-------------------------------------------------|--------|-----------|--------|-----------|--------|--------|--------|--------|------------|------------------------|--------|------------|--------|--------------|-----------|-------------|--------|--------|--------|
|                                            |   |      |   | Preferred |   |   |   | Common |       | Paid                in |   | Common     |   | Stock        |      | Accumulated |   |   |   |
|                                            |   | Preferred |   | Shares    |   | Common |   | Stock  |       | Capital                |   | Stock      |   | Subscription |      | Development |   |   |   |
|                                            |   | Shares    |   | Amount    |   | Shares |   | Amount |       | Amount                 |   | Subscribed |   | Receivable   |      | Stage       |   | Total  |   |
| 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 |   |
|                                            |   |      |   |      |   |   |   |   |       |                   |   |       |   |         |      |        |   |   |   |   |   |   |   |   |   |   |   |   |
| 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 |   |

----

| 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 MARCH 31,                                  2007(unaudited) |   |

|                                             |   |      |   |      |   |   |   |   |     | Additional             |   |        |   |         |       | Deficit     |   |    |   |
|--------------------------------------------------|--------|-----------|--------|-----------|--------|--------|--------|--------|----------|------------------------|--------|-------------|--------|--------------|------------|-------------|--------|---------|--------|
|                                             |   |      |   | Preferred |   |   |   | Common |     | Paid                in |   | Common      |   | Stock        |       | Accumulated |   |    |   |
|                                             |   | Preferred |   | Shares    |   | Common |   | Stock  |     | Capital                |   | Stock       |   | Subscription |       | Development |   |    |   |
|                                             |   | Shares    |   | Amount    |   | Shares |   | Amount |     | Amount                 |   | Subscribed  |   | Receivable   |       | Stage       |   | Total   |   |
| 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 |   |
|                                             |   |      |   |      |   |   |   |   |     |                   |   |        |   |         |       |        |   |    |   |   |   |   |   |   |   |   |   |   |
| 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 |   |

----

| 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 MARCH 31,                                    2007(unaudited) |   |

|                                              |   |      |   |      |   |   |   |   |       | Additional             |   |       |   |         |       | Deficit     |   |   |   |
|---------------------------------------------------|--------|-----------|--------|-----------|--------|--------|--------|--------|------------|------------------------|--------|------------|--------|--------------|------------|-------------|--------|--------|--------|
|                                              |   |      |   | Preferred |   |   |   | Common |       | Paid                in |   | Common     |   | Stock        |       | Accumulated |   |   |   |
|                                              |   | Preferred |   | Shares    |   | Common |   | Stock  |       | Capital                |   | Stock      |   | Subscription |       | Development |   |   |   |
|                                              |   | Shares    |   | Amount    |   | Shares |   | Amount |       | Amount                 |   | Subscribed |   | Receivable   |       | Stage       |   | Total  |   |
| 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 | ) |
|                                              |   |      |   |      |   |   |   |   |       |                   |   |       |   |         |       |        |   |   |   |   |   |   |   |   |   |   |   |   |
| 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 | ) |

----

| 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 MARCH 31,                                      2007(unaudited) |   |

|                                                 |   |      |   |      |   |   |   |   |        | Additional             |   |       |   |         |       | Deficit     |   |    |   |
|------------------------------------------------------|--------|-----------|--------|-----------|--------|--------|--------|--------|-------------|------------------------|--------|------------|--------|--------------|------------|-------------|--------|---------|--------|
|                                                 |   |      |   | Preferred |   |   |   | Common |        | Paid                in |   | Common     |   | Stock        |       | Accumulated |   |    |   |
|                                                 |   | Preferred |   | Shares    |   | Common |   | Stock  |        | Capital                |   | Stock      |   | Subscription |       | Development |   |    |   |
|                                                 |   | Shares    |   | Amount    |   | Shares |   | Amount |        | Amount                 |   | Subscribed |   | Receivable   |       | Stage       |   | Total   |   |
| 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 |   |
|                                                 |   |      |   |      |   |   |   |   |        |                   |   |       |   |         |       |        |   |    |   |   |   |   |   |   |   |   |   |   |
| 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 | ) |

----

| 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 MARCH 31,                                        2007(unaudited) |   |

|                                                |   |      |   |      |   |   |   |   |        | Additional             |   |       |   |         |       | Deficit     |   |   |   |
|-----------------------------------------------------|--------|-----------|--------|-----------|--------|--------|--------|--------|-------------|------------------------|--------|------------|--------|--------------|------------|-------------|--------|--------|--------|
|                                                |   |      |   | Preferred |   |   |   | Common |        | Paid                in |   | Common     |   | Stock        |       | Accumulated |   |   |   |
|                                                |   | Preferred |   | Shares    |   | Common |   | Stock  |        | Capital                |   | Stock      |   | Subscription |       | Development |   |   |   |
|                                                |   | Shares    |   | Amount    |   | Shares |   | Amount |        | Amount                 |   | Subscribed |   | Receivable   |       | Stage       |   | Total  |   |
| 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 | ) |
|                                           |   |      |   |      |   |   |   |   |        |                   |   |       |   |         |       |        |   |   |   |   |  |   |   |   |   |   |  |   |
|                                                |   |      |   |      |   |   |   |   |        |                   |   |       |   |         |       |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                stock issued in Dec 2006      |   |      |   |      |   |   |   |   |        |                   |   |       |   |         |       |        |   |   |   |   |   |   |   |   |   |   |   |   |
| in                settlement of related party debt  |   |      |   |      |   |   |   |   |        |                   |   |       |   |         |       |        |   |   |   |   |   |   |   |   |   |   |   |   |
| at                $2.28 per share                   |   |      | -      |      |   | -      |   |   | 180,000     |                   |   | 180        |   |         | 410,249    |        |   | -      |   |   | - |   |   | - |   |   | 410,429 |   |
|                                                |   |      |   |      |   |   |   |   |        |                   |   |       |   |         |       |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                loss                             |   |      | -      |      |   | -      |   |   | -           |                   |   | -          |   |         | -          |        |   | -      |   |   | - |   |   | (10,041,460 | ) |   | (10,041,460 | ) |
| Balance                as of March 31, 2007         |   |      | 60,000 |      | $      | 6      |   |   | 121,162,385 |                   | $      | 121,162    |   | $            | 83,037,855 |        | $      | -      |   | $ | - |   | $ | (102,376,251 | ) | $ | (19,217,228 | ) |

| 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 six months ended March 31, |        | through |   |
|                                                                                                                                                  |   | 2007                                              |        | 2006    |   | March                31, 2007      |   |
| Cash                flows from operating activities:                                                                                                  |   |                                              |        |    |   | RESTATED                           |   |   |   |   |
| Net                income (loss)                                                                                                                      |   | $                                                 | (10,041,460 | )       | $      | 4,845,762                          |   | $ | (102,376,251 | ) |
| Adjustments                to reconcile net loss to net used in operating activities:                                                                 |   |                                              |        |    |   |                               |   |   |   |   |
| Depreciation                and amortization                                                                                                          |   |                                              | 216,237     |    |   | 684,375                            |   |   | 1,945,963 |   |
| 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                                                                      |   |                                              | 4,289,290   |    |   | (10,756,660                        | )      |   | (29,256,538 | ) |
| Financing                costs attributable to issuance of warrants                                                                                   |   |                                              | -           |    |   | 2,271,000                          |   |   | 25,419,214 |   |
| Amortization                of beneficial conversion feature-convertible notes                                                                        |   |                                              | -           |    |   | -                                  |   |   | 10,461,000 |   |
| Amortization                of capitalized financing costs                                                                                            |   |                                              | 777,550     |    |   | -                                  |   |   | 1,413,563 |   |
| Amortization                of debt discount attributable to convertible debentures                                                                   |   |                                              | 1,169,123   |    |   | 35,390                             |   |   | 1,900,613 |   |
| 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                                                                                             |   |                                              | 18,050      |    |   | 9,301                              |   |   | - |   |
| Decrease                (increase) in prepaid expenses and deposits                                                                                   |   |                                              | 80,000      |    |   | -                                  |   |   | (40,929 | ) |
| Decrease                (increase) in other assets                                                                                                    |   |                                              | -           |    |   | (9,120                             | )      |   | (13,450 | ) |
| Increase                in due related parties                                                                                                        |   |                                              | -           |    |   | 2,496                              |   |   | 40,753 |   |
| Increase                (decrease) in accounts payable and accrued liabilities                                                                        |   |                                              | 2,366,177   |    |   | 742,575                            |   |   | 7,291,787 |   |
| Net                cash used in operating activities                                                                                                  |   |                                              | (1,125,033  | )       |   | (1,127,623                         | )      |   | (16,744,194 | ) |
|                                                                                                                                                  |   |                                              |        |    |   |                               |   |   |   |   |
| Cash                flows from investing activities:                                                                                                  |   |                                              |        |    |   |                               |   |   |   |   |
| Payments                for patent filing                                                                                                             |   |                                              | -           |    |   | -                                  |   |   | (25,698 | ) |
| Acquisition                (disposal) of property and equipment, net                                                                                  |   |                                              | (11,039     | )       |   | (35,852                            | )      |   | (188,360 | ) |
| Net                cash provided by (used in) investing activities                                                                                    |   |                                              | (11,039     | )       |   | (35,852                            | )      |   | (214,058 | ) |
|                                                                                                                                                  |   |                                              |        |    |   |                               |   |   |   |   |
| Cash                flows from financing activities:                                                                                                  |   |                                              |        |    |   |                               |   |   |   |   |
| Proceeds                from sale of common stock, net of cost                                                                                        |   |                                              | -           |    |   | -                                  |   |   | 432,000 |   |
| Proceeds                from issuance of convertible notes                                                                                            |   |                                              | -           |    |   | 1,210,000                          |   |   | 13,446,500 |   |
| 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                                                                                              |   |                                              | -           |    |   | 1,210,000                          |   |   | 17,047,484 |   |
|                                                                                                                                                  |   |                                              |        |    |   |                               |   |   |   |   |
| Net                increase in cash and cash equivalents                                                                                              |   |                                              | (1,136,072  | )       |   | 46,525                             |   |   | 89,232 |   |
| Cash                and cash equivalents at beginning of period                                                                                       |   |                                              | 1,225,304   |    |   | 31,190                             |   |   | - |   |
| Cash                and cash equivalents at end of period                                                                                             |   | $                                                 | 89,232      |    | $      | 77,715                             |   | $ | 89,232 |   |

----

| **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 six months ended March 31, |   | through |   |
|                                                                                                      |   | 2007 |   | 2006 |   | March                31, 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                               |   |   | 16,200 |   |   | - |   |   | 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                                              |   |   | - |   |   | - |   |   | 10,461,000 |   |
| 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 CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH        31, 2007**

**(Unaudited)**

**NOTE      A - SUMMARY OF ACCOUNTING POLICIES **

*General      *

*Business      and Basis of Presentation *

* *
*Reclassification      *

* *
*Property      and Equipment*

| Computer                equipment       |   | $      | 27,404  |   |
|-----------------------------------------|--------|--------|---------|--------|
| Lab                equipment            |   |   | 54,973  |   |
| Furniture                               |   |   | 105,984 |   |
| Accumulated                depreciation |   |   | (51,800 | )      |
|                                    |   |   |    |   |
| Net                                     |   | $      | 136,561 |   |

----

**APPLIED        DNA SCIENCES, INC**

**(a        development stage company)**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH        31, 2007**

**(Unaudited)**

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

*Stock      Based Compensation *

*Revenue      Recognition *

----

**APPLIED        DNA SCIENCES, INC**

**(a        development stage company)**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH        31, 2007**

**(Unaudited)**

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

*Concentrations      of Credit Risk *

*Net      income (loss) per share*

|                                                                                                          |   | Three                Months EndedMarch                31, 2006 |       | Six                Months EndedMarch                31, 2006 |   |
|---------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------|------------|--------------------------------------------------------------|--------|
| Net                income used in computing basic net income per share                                        |   | $                                                              | 2,033,351  |                                                         | $      | 4,845,762 |   |
|                                                                                                          |   |                                                           |       |                                                         |   |   |   |
| 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                                                 |   |                                                           | (3,967,870 | )                                                            |   | (10,756,660 | ) |
|                                                                                                          |   |                                                           |       |                                                         |   |   |   |
| Net                loss in computing diluted net loss per share:                                              |   | $                                                              | (1,934,519 | )                                                            | $      | (4,151,998 | ) |

----

**APPLIED        DNA SCIENCES, INC**

**(a        development stage company)**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH        31, 2007**

**(Unaudited)**

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

*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 CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH        31, 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 CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH      31, 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 |   |

----

**APPLIED      DNA SCIENCES, INC**

**(a      development stage company)**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH      31, 2007**

**(Unaudited)**

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

*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                                                                   |   |   | (1,888,004 | )      |
|                                                                                                      |   |   |       |   |
| Impairment                                                                                                |   |   | (5,655,011 | )      |
|                                                                                                      |   |   |       |   |
| Net:                                                                                                      |   | $      | 1,922,142  |   |
|                                                                                                      |   |   |       |   |
| Residual                value:                                                                            |   | $      | 0          |   |

|   | 2007                               |   | $      | 370,642   |   |
|--------|------------------------------------|--------|--------|-----------|--------|
|   | 2008                               |   |   | 370,642   |   |
|   | 2009                               |   |   | 365,504   |   |
|   | 2010                               |   |   | 363,791   |   |
|   | 2011                and thereafter |   |   | 451,563   |   |
|   | Total                              |   | $      | 1,922,142 |   |

----

**APPLIED        DNA SCIENCES, INC**

**(a        development stage company)**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH        31, 2007**

**(Unaudited)**

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

|   | 10%                Secured Convertible Notes Payable dated March 8, 2006, net of unamortized                debt discount of $250,810 (see below) |   | $      | 1,249,190  |   |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|
|   |                                                                                                                                              |   |   |       |   |
|   | 10%                Secured Convertible Notes Payable dated May 2, 2006, net of unamortized                debt discount of $37,997 (see below)    |   |   | 962,003    |   |
|   |                                                                                                                                              |   |   |       |   |
|   | 10%                Secured Convertible Notes Payable dated June 15, 2006, net of unamortized                debt discount of $230,299 (see below) |   |   | 2,719,701  |   |
|   |                                                                                                                                              |   |   | 4,930,894  |   |
|   | Less:                current portion                                                                                                              |   |   | (4,930,894 | )      |
|   |                                                                                                                                              |   | $      | -          |   |

*10%      Secured Convertible Promissory Notes dated March 8, 2006*

----

**APPLIED      DNA SCIENCES, INC**

**(a      development stage company)**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH      31, 2007**

**(Unaudited)**

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

*10%      Secured Convertible Promissory Notes dated May 2, 2006*

----

**APPLIED        DNA SCIENCES, INC**

**(a        development stage company)**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH        31, 2007**

**(Unaudited)**

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

*10%      Secured Convertible Promissory Notes dated June 15, 2006*

----

**APPLIED        DNA SCIENCES, INC**

**(a        development stage company)**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH        31, 2007**

**(Unaudited)**

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

*$1,675,000      Convertible Notes*

*$1,465,000      Convertible Notes*

----

**APPLIED        DNA SCIENCES, INC**

**(a        development stage company)**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH        31, 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 CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH        31, 2007**

**(Unaudited)**

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

*$7,371,000      Convertible Notes*

----

**APPLIED        DNA SCIENCES, INC**

**(a        development stage company)**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH        31, 2007**

**(Unaudited)**

**NOTE      D - CAPITAL STOCK**

----

**APPLIED      DNA SCIENCES, INC**

**(a      development stage company)**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH      31, 2007**

**(Unaudited)**

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

----

**APPLIED        DNA SCIENCES, INC**

**(a        development stage company)**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH        31, 2007**

**(Unaudited)**

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

----

**APPLIED        DNA SCIENCES, INC**

**(a        development stage company)**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH        31, 2007**

**(Unaudited)**

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

----

**APPLIED        DNA SCIENCES, INC**

**(a        development stage company)**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH        31, 2007**

**(Unaudited)**

**NOTE      E - STOCK OPTIONS AND WARRANTS **

*Warrants      *

|   |          |   |             |   | Warrants                    |   |          |   |             |   | Exercisable |
|--------|----------|--------|-------------|--------|-----------------------------|--------|----------|--------|-------------|--------|-------------|
|   |          |   |             |   | Outstanding                 |   | Weighted |   |        |   | Weighted    |
|   |          |   |             |   | Remaining                   |   | Average  |   | Weighted    |   | Average     |
|   | Exercise |   | Number      |   | Contractual                 |   | Exercise |   | Average     |   | Exercise    |
|   | Prices   |   | Outstanding |   | Life                (Years) |   | Price    |   | Exercisable |   | Price       |
|   | $0.09    |   | 18,900,000  |   | 4.42                        |   | $0.09    |   | 18,900,000  |   | $0.09       |
|   | $0.10    |   | 105,464     |   | 2.29                        |   | $0.10    |   | 105,464     |   | $0.10       |
|   | $0.20    |   | 5,000       |   | 1.64                        |   | $0.20    |   | 5,000       |   | $0.20       |
|   | $0.50    |   | 16,450,000  |   | 3.90                        |   | $0.50    |   | 16,450,000  |   | $0.50       |
|   | $0.55    |   | 9,000,000   |   | 1.22                        |   | $0.55    |   | 9,000,000   |   | $0.55       |
|   | $0.60    |   | 8,847,000   |   | 2.17                        |   | $0.60    |   | 8,847,000   |   | $0.60       |
|   | $0.70    |   | 950,000     |   | 0.64                        |   | $0.70    |   | 950,000     |   | $0.70       |
|   | $0.75    |   | 17,727,000  |   | 2.50                        |   | $0.75    |   | 17,727,000  |   | $0.75       |
|   |     |   | 71,984,464  |   |                        |   |     |   | 71,984,464  |   |        |

|                                             |   | **Number                of** |       | **Weighted                Average** |   |
|--------------------------------------------------|--------|------------------------------|------------|-------------------------------------|--------|
|                                             |   | **Shares**                   |       | **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                                          |   |                         | -          |                                |   | - |   |
| Exercised                                        |   |                         | -          |                                |   | - |   |
| Canceled                or expired               |   |                         | (385,000   | )                                   |   | (0.71 | ) |
| Balance,                March 31, 2007           |   |                         | 71,984,464 |                                | $      | 0.48 |   |

----

**APPLIED        DNA SCIENCES, INC**

**(a        development stage company)**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH        31, 2007**

**(Unaudited)**

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

*Employee      Stock Options*

|   | Options                Outstanding |           | Options                Exercisable |   |
|--------|------------------------------------|----------------|------------------------------------|--------|
|   |                               | ExercisePrices |                               |   | NumberOutstanding |   |   | WeightedAverageRemainingContractualLife(Years) |   |   | WeightedAverageExercisePrice |   |   | NumberExercisable |   |   | WeightedAverageExercisePrice |   |
|   |                               |           |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | $                                  | 0.68           |                               |   | 3,660,000 |   |   | 2.50 |   | $ | 0.68 |   |   | 3,660,000 |   | $ | 0.68 |   |
|   |                               | 0.09           |                               |   | 2,000,000 |   |   | 4.42 |   |   | 0.09 |   |   | 2,000,000 |   |   | 0.09 |   |
|   |                               |           |                               |   | 5,660,000 |   |   |   |   |   |   |   |   | 5,660,000 |   |   | 0.47 |   |

|                                             |   | Number                ofShares |      | 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 December 31, 2006  |   |                           | 5,660,000 |                                                     | $      | 0.47 |   |

----

**APPLIED        DNA SCIENCES, INC**

**(a        development stage company)**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH        31, 2007**

**(Unaudited)**

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

** **

**NOTE      G- RELATED PARTY TRANSACTIONS**

----

**APPLIED      DNA SCIENCES, INC**

**(a      development stage company)**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH      31, 2007**

**(Unaudited)**

**NOTE      G- RELATED PARTY TRANSACTIONS (continued)**

**NOTE      H - COMMITMENTS AND CONTINGENCIES**

*Operating      Lease Commitments*

*Employment      and Consulting Agreements*

*Litigation      *

----

**APPLIED        DNA SCIENCES, INC**

**(a        development stage company)**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH        31, 2007**

**(Unaudited)**

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

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

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

*Settlement      of Litigation*

----

**APPLIED      DNA SCIENCES, INC**

**(a      development stage company)**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH      31, 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 CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH        31, 2007**

**(Unaudited)**

**NOTE      I - **
**RESTATEMENT      **
**OF      QUARTERLY FINANCIAL STATEMENTS **

|   | ·       | In                connection with our review of our outstanding warrants and options                to                acquire our Company’s stock, the Company determined $329,700 and $659,400                (three and six months ended March 31, 2006, respectively) of liquidated                damages payable to investors pursuant to the terms of the Registration                Rights Agreement had not been accounted for and recorded as a selling,                general and administrative expense.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | ·       | The                Company capitalized financing costs previously charged to selling,                general                and administrative for the three months ended March 31,                2006.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | ·       | In                connection with our review of our outstanding warrants and options                to                acquire our Company’s stock, the Company determined the issuance of                5,500,000                warrants to acquire the Company’s common stock in connection with the                issuance of debt was erroneously valued at $563,750 and was erroneously                charged to selling, general and administrative expense; the fair                value of                the warrants was $1,758,900 and has been charged to interest expense.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | ·  | In                conjunction with raising capital through the issuance of Convertible                Notes, the Company has issued warrants that have registration rights                for                the underlying shares.  As the contract must be settled by the                delivery of registered shares and the delivery of the registered                shares is                not controlled by the Company, pursuant to EITF 00-19, “Accounting for                Derivative Financial Instruments Indexed to, and Potentially Settled                in, a                Company’s Own Stock”, the net value of the warrants at the date of                issuance was recorded as a warrant liability on the balance sheet                $512,100                and charged to operations as interest expense.  Upon the registration                statement being declared effective, the fair value of the warrant                on that                date will be reclassified to equity. The Company initially valued                the                warrants using the Black-Scholes pricing model with the following                assumptions: (1) dividend yield of 0%; (2) expected volatility of                154.43%,                (3) risk-free interest rate of 4.75%, and (4) expected life of 5                years. |

|   | **1.** | Under                Selling, general and                administrative: |
|--------|--------|--------------------------------------------------------------------------|

|        | (a)    | Recording                three month liquidation damages relating to December 2004 Convertible                note                discussed in Note C above of $153,825. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                     |
|        | (b)    | Recording                three month liquidation damages relating to 2003 bridge Convertible                note                discussed in Note C above of $175,875.   |
|   |   |                                                                                                                                                                     |
|        | (c)    | Capitalize                $390,000 finance costs incurred in conjunction with                financing.                                                                  |

----

**APPLIED      DNA SCIENCES, INC**

**(a      development stage company)**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH      31, 2007**

**(Unaudited)**

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

|   | **2.** | Under                Net gain/loss                on reevaluation of debt derivative and warrant                liability: |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------|

|  | (a) | Correct                the                adjustment in fair value of warrant liability from previous filing                by a                reduction of $878,403. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **3.** | Under                    Interest                    Income (expense): |
|--------|--------|------------------------------------------------------------------------|

|  | (a) | In conjunction                with                raising capital through the issuance of Convertible Notes, the Company                has                issued warrants that have registration rights for the underlying                shares.                 As the contract must be settled by the delivery of registered shares                and the delivery of the registered shares is not controlled by the                Company, pursuant to EITF 00-19, “Accounting for Derivative Financial                Instruments Indexed to, and Potentially Settled in, a Company’s Own                Stock”, the net value of the warrants at the date of issuance was recorded                as a warrant liability on the balance sheet $512,100 and charged                to                operations as interest expense.  Upon the registration statement                being declared effective, the fair value of the warrant on that date                will                be reclassified to equity. The Company initially valued the warrants                using                the Black-Scholes pricing model with the following assumptions: (1)                dividend yield of 0%; (2) expected volatility of 154.43%, (3) risk-free                interest rate of 4.75%, and (4) expected life of 5                years. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **4.** | Under                    Selling,                    general and administrative: |
|--------|--------|----------------------------------------------------------------------------------|

|        | (a)       | Recording                  six month                  liquidation damages relating to December 2004 Convertible note                  discussed                  in Note C above of $307,650.                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | (b)       | Recording                  three month liquidation damages relating to 2003 bridge Convertible                  note                  discussed in Note C above of $351,750.                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | (c)       | Capitalize                  $390,000                  finance costs incurred in conjunction with financing.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | (d)  | In                  connection with                  our review of our outstanding warrants and options to acquire our                  Company’s stock, the Company determined the issuance of 5,500,000                  warrants to acquire the Company’s common stock in connection with the                  issuance of debt was erroneously valued at $563,750 and was erroneously                  charged to selling, general and administrative expense; the fair                  value of                  the warrants was $ 1,758,900 and has been charged to interest                  expense. |

|   | **5.** | Under                      Net gain/loss                      on reevaluation of debt derivative and warrant                      liability: |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

|  | (a) | Correct                      the                      adjustment in fair value of warrant liability from previous                      filing by a                      reduction of $2,217,306. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**APPLIED      DNA SCIENCES, INC**

**(a      development stage company)**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH      31, 2007**

**(Unaudited)**

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

|   | **6.** | Under                  Interest                  Income (expense): |
|--------|--------|--------------------------------------------------------------------|

|        | (a)    | In                    conjunction with                    raising capital through the issuance of Convertible Notes, the                    Company has                    issued warrants that have registration rights for the underlying                    shares.                     As the contract must be settled by the delivery of registered                    shares                    and the delivery of the registered shares is not controlled by                    the                    Company, pursuant to EITF 00-19, “Accounting for Derivative Financial                    Instruments Indexed to, and Potentially Settled in, a Company’s Own                    Stock”, the net value of the warrants at the date of issuance was recorded                    as a warrant liability on the balance sheet $1,758,900 and charged                    to                    operations as interest expense.  Upon the registration statement                    being declared effective, the fair value of the warrant on that                    date will                    be reclassified to equity. The Company initially valued the warrants                    using                    the Black-Scholes pricing model with the following assumptions:                    (1)                    dividend yield of 0%; (2) expected volatility of 156%, (3) risk-free                    interest rate of 4.55%, and (4) expected life of 5 years.                                                |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | (b)    | In                      conjunction with raising capital through the issuance of Convertible                      Notes, the Company has issued warrants that have registration                      rights for                      the underlying shares.  As the contract must be settled by the                      delivery of registered shares and the delivery of the registered                      shares is                      not controlled by the Company, pursuant to EITF 00-19, “Accounting for                      Derivative Financial Instruments Indexed to, and Potentially                      Settled in, a                      Company’s Own Stock”, the net value of the warrants at the date of                      issuance was recorded as a warrant liability on the balance                      sheet $512,100                      and charged to operations as interest expense.  Upon the registration                      statement being declared effective, the fair value of the warrant                      on that                      date will be reclassified to equity. The Company initially                      valued the                      warrants using the Black-Scholes pricing model with the following                      assumptions: (1) dividend yield of 0%; (2) expected volatility                      of 154.43%,                      (3) risk-free interest rate of 4.75%, and (4) expected life                      of 5                      years. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |   | The                    net effect to                    Interest expense is an increase of $2,271,000, net of items a                    and b above.                    ($1 rounding.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

----

**APPLIED        DNA SCIENCES, INC**

**(a        development stage company)**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH        31, 2007**

**(Unaudited)**

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

|                                                                                  |   | **As                previously** |   |   |           |   |          |   |   |                           |   |
|---------------------------------------------------------------------------------------|--------|----------------------------------|--------|--------|----------------|--------|---------------|--------|--------|--------------------------------|--------|
|                                                                                  |   | **Reported**                     |   |   | **Adjustment** |   | **Reference** |   |   | **As                Restated** |   |
| Selling,                general & administrative                                  | $      | 1,009,934                        |   | $      | (60,300        | )      | 1             |   | $      | 949,634                        |   |
| Research                and development                                               | $      | 75,033                           |   | $      |           |   |          |   | 75,033 |                           |
| Depreciation                                                                          | $      | 341,676                          |   | $      |           |   |          |   | $      | 341,676                        |   |
| Total                operating expenses                                               | $      | 1,426,643                        |   | $      | (60,300        | )      | 1             |   | $      | 1,366,343                      |   |
| Net                loss from operations                                               | $      | (1,426,643                       | )      | $      | (60,300        | )      | 1             |   | $      | (1,366,343                     | )      |
| Net                gain (loss) in fair value of debt derivative and warrant liability | $      | 4,846,273                        |   | $      | 878,403        |   | 2             |   | $      | 3,967,870                      |   |
| Other                income (expense)                                                 | $      | 3,520                            |   | $      |           |   |          |   | $      | 3,520                          |   |
| Interest                income (expense)                                              | $      | (59,597                          | )      | $      | (512,099)      |   | 3             |   | $      | (571,696)                      |   |
| Net                income                                                             | $      | 3,363,553                        |   | $      | (1,330,202     | )      | 1,2,3         |   | $      | 2,033,351                      |   |
| Net                income per share-basic                                             | $      | 0.03                             |   | (0.01  | )         |   |          | $      | 0.02   |                           |
| Net                income (loss) per share-fully diluted                              |   | 0.03                             |   | (0.05  | )              |   |          | $      | (0.02  | )                              |

| Selling,                general & administrative                                  | $      | 3,088,661  |   | $     | (294,350   | )      | 4      |   | $      | 2,794,311   |   |
|---------------------------------------------------------------------------------------|--------|------------|--------|-------|------------|--------|--------|--------|--------|-------------|--------|
| Research                and development                                               | $      | 91,303     |   | $     |       |   |   |   | 91,303 |        |
| Depreciation                                                                          | $      | 684,375    |   | $     |       |   |   |   | $      | 684,375     |   |
| Total                operating expenses                                               | $      | 3,864,339  |   | $     | (294,350   | )      | 4      |   | $      | 3,569,989   |   |
| Net                loss from operations                                               | $      | (3,864,339 | )      | $     | (294,350   | )      | 4      |   | $      | (3,569,989  | )      |
| Net                gain (loss) in fair value of debt derivative and warrant liability | $      | 12,973,966 |   | $     | 2,217,306  |   | 5      |   | $      | 10,756,660  |   |
| Other                income (expense)                                                 | $      | 9,493      |   | $     |       |   |   |   | $      | 9,493       |   |
| Interest                income (expense)                                              | $      | (79,403    | )      | $     | (2,270,999 | )      | 6      |   | $      | (2,350,402) |   |
| Net                income                                                             | $      | 9,039,717  |   | $     | (4,193,955 | )      | 4,5,6  |   | $      | 4,845,762   |   |
| Net                income per share-basic                                             | $      | 0.08       |   | (0.04 | )     |   |   | $      | 0.04   |        |
| Net                income (loss) per share-fully diluted                              |   | 0.08       |   | (0.11 | )          |   |   | $      | (0.03) |        |

----

**APPLIED        DNA SCIENCES, INC**

**(a        development stage company)**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH        31, 2007**

**(Unaudited)**

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

| Cash                flows from operating activities                                 |   |        |   |   |       |   |   |   |   |        |   |
|-------------------------------------------------------------------------------------|--------|-------------|--------|--------|------------|--------|--------|--------|--------|-------------|--------|
| Net                income (loss)                                                    | $      | 9,039,717   |   | $      | (4,193,955 | )      | 4,5,6  |   | $      | 4,845,762   |   |
| Adjustments                to reconcile to net used in operating activities         |   |        |   |   |       |   |   |   |   |        |   |
| Depreciation                and amortization                                        | $      | 684,375     |   | $      |       |   |   |   | $      | 684,375     |   |
| Warrants                issued to consultants                                       | $      | 43,100      |   | $      |       |   |   |   | $      | 43,100      |   |
| Income                attributable to repricing of warrants and debt derivatives    | $      | (12,973,966 | )      | $      | 2,217,306  |   | 5      |   | $      | (10,756,660 | )      |
| Financing                costs attributable to issuance of warrants                 | $      | -           |   | $      | 2,271,000  |   | 6      |   | $      | 2,271,000   |   |
| Amortization                of debt discount attributable to convertible debentures | $      | 35,390      |   | $      |       |   |   |   | $      | 35,390      |   |
| Common                stock issued in exchange for services                         | $      | 1,273,950   |   | $      | (563,750)  |   | 4d     |   | $      | 710,200     |   |
| 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    | )      |
| Decrease                in accounts receivable                                      | $      | 9,301       |   | $      |       |   |   |   |   | 9,301       |   |
| Increase                in other assets                                             | $      | (9,120      | )      | $      |       |   |   |   | $      | (9,120      | )      |
| Increase                in due related parties                                      | $      | 2,496       |   | $      |       |   |   |   | $      | 2,496       |   |
| Increase                (decrease) in accounts payable and accrued liabilities      | $      | 83,175      |   | $      | 659,400    |   | 1      |   | $      | 742,575     |   |
| Net                cash used in operating activities                                | $      | (1,517,623  | )      | $      | 390,000    |   |   |   | $      | (1,127,623  | )      |
| Cash                flows from investing activities:                                |   |        |   |   |       |   |   |   |   |        |   |
| Capital                expenditures                                                 | $      | (35,852     | )      | $      |       |   |   |   | $      | (35,852     | )      |
| Net                cash used in investing activities                                | $      | (35,852     | )      | $      |       |   |   |   | $      | (35,852     | )      |
| Cash                flows from financing activities                                 |   |        |   |   |       |   |   |   |   |        |   |
| Proceeds                from issuance of convertible notes                          | $      | 1,600,000   |   | $      | (390,000)  |   | 1c     |   | $      | 1,210,000   |   |
| Net                cash provided by financing activities                            | $      | 1,600,000   |   | $      | (390,000   | )      |   |   | $      | 1,210,000   |   |
| Net                increase in cash and cash equivalents                            | $      | 46,525      |   | $      |       |   |   |   | $      | 46,525      |   |
| Cash                and cash equivalents at beginning of period                     | $      | 31,190      |   | $      |       |   |   |   | $      | 31,190      |   |
| Cash                and cash equivalents at end of period                           | $      | 77,715      |   | $      |       |   |   |   | $      | 77,715      |   |

----

**APPLIED      DNA SCIENCES, INC**

**(a      development stage company)**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**MARCH      31, 2007**

**(Unaudited)**

**NOTE      J - SUBSEQUENT EVENTS**

----

|   | · | 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*

*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*

|         |   |         |      |                                 |   |      |   |         |      | **Weighted**     |   |
|--------------|--------|--------------|-----------|--------------------------------------|--------|-----------|--------|--------------|-----------|------------------|--------|
|         |   |         |      |                                 |   |      |   |         |      | **Average**      |   |
|         |   | **Gross**    |      | **Accumulated**                      |   |      |   |         |      | **Amortization** |   |
|         |   | **Carrying** |      | **Amortization                and**  |   |      |   | **Residual** |      | **Period**       |   |
|         |   | **Amount**   |      | **Impairment                Charge** |   | **Net**   |   | **Value**    |      | **(Years)**      |   |
|         |   |         |      |                                 |   |      |   |         |      |             |   |
| Amortizable  |   |         |      |                                 |   |      |   |         |      |             |   |   |   |   |   |   |
| Intangible   |   |         |      |                                 |   |      |   |         |      |             |   |   |   |   |   |   |
| Assets:      |   |         |      |                                 |   |      |   |         |      |             |   |   |   |   |   |   |
|         |   |         |      |                                 |   |      |   |         |      |             |   |   |   |   |   |   |
| Intellectual |   |         |      |                                 |   |      |   |         |      |             |   |   |   |   |   |   |
| Property     |   | $            | 9,430,900 |                                 | $      | 7,520,996 |   | $            | 1,909,904 |             |   | — |   |   | 7 |   |
|         |   |         |      |                                 |   |      |   |         |      |             |   |   |   |   |   |   |
| Patents      |   |         | 34,237    |                                 |   | 21,999    |   |         | 12,238    |             |   | — |   |   | 5 |   |
|         |   |         |      |                                 |   |      |   |         |      |             |   |   |   |   |   |   |
| Total        |   |         |      |                                 |   |      |   |         |      |             |   |   |   |   |   |   |
| Amortized    |   |         |      |                                 |   |      |   |         |      |             |   |   |   |   |   |   |
| Identifiable |   |         |      |                                 |   |      |   |         |      |             |   |   |   |   |   |   |
| Intangible   |   | $            | 9,465,137 |                                 | $      | 7,542,995 |   | $            | 1,922,142 |             |   | — |   |   | 6.99 |   |
|         |   |         |      |                                 |   |      |   |         |      |             |   |   |   |   |   |   |

----

|   | 2007                          |   | $      | 370,642   |   |
|--------|-------------------------------|--------|--------|-----------|--------|
|   | 2008                          |   |   | 370,642   |   |
|   | 2009                          |   |   | 365,504   |   |
|   | 2010                          |   |   | 363,791   |   |
|   | 2011                and after |   |   | 451,563   |   |
|   | Total                         |   | $      | 1,922,142 |   |
|   |                          |   |   |      |   |

*Use      of Estimates*

**Restatement      of Consolidated Financial Statements**

|   | · | the                Company's net income for the three months ended March 31, 2006 decreased                by $1,330,202 from a net income of $3,363,553 to a net income of                $2,033,351. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Comparis**
**on      of Results of Operations for the Three Months Ended March 31, 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**

----

----

----

----

**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. |

----

*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.                                                                   |

*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. |

----

**PART      II--OTHER INFORMATION**

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

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

*Applied        DNA Sciences, Inc. v. John Barnett, Adrian Butash, Jamie Cardona, Chanty        Cheang,        Paul Reep, Angela Wiggins, Peter Brocklesby, and Cheri Lu Brocklesby, Los        Angeles Superior Court Case No. BC367661 *

*Settlement      of Litigation*

----

| (1)    | voted                to reelect the existing members of the board of directors, James                A.                Hayward, Yacov Shamash, Jun-Jei Sheu and Sanford R. Simon, each for                a                one-year term or until their successors are duly elected and qualified; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                               |
| (2)    | ratified                the appointment of Russell Bedford Stefanou Mirchandani LLP as the                Company’s independent registered public accounting firm for the fiscal                year ending September 30, 2007;                                                              |
|   |                                                                                                                                                                                                                                                                                               |
| (3)    | approved                an amendment to the Company’s Articles of Incorporation to increase the                number of shares of common stock the Company has the authority to                issue to                410,000,000; and                                                     |
|   |                                                                                                                                                                                                                                                                                               |
| (4)    | approved                an amendment to the Company’s 2005 Incentive Stock Plan to increase the                number of shares of common stock subject to the Plan to                20,000,000.                                                                                            |

----

|                                                                  |   |                      |       |                       |   |                |   |
|-----------------------------------------------------------------------|--------|---------------------------|------------|----------------------------|--------|---------------------|--------|
| **MATTER**                                                       |   |   **FOR**  |       | **AGAINST/WITHHELD**  |   | **ABSTAINED**  |   |
|                                                                  |   |                      |       |                       |   |                |   |
| (1)                Election of Directors:                             |   |                      |       |                       |   |                |   |   |   |   |
| James                A. Hayward                                       |   |                      | 68,129,155 |                       |   | 145,708             |   |   |   |   |
| Yacov                Shamash                                          |   |                      | 66,493,485 |                       |   | 1,781,378           |   |   |   |   |
| Jun-Jei                Sheu                                           |   |                      | 68,129,023 |                       |   | 145,840             |   |   |   |   |
| 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 |   |
|                                                                  |   |                      |       |                       |   |                |   |   |   |   |

| 10.5   |   | Technology                Reseller Agreement, dated March 19, 2007 by and between Applied DNA                Sciences and HPT International LLC, filed as an exhibit to the current                report on Form 8-K filed with the SEC on March 23, 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.                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                            |
| 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).                                                                                                   |

----

**SIGNATURES**

** **

|                              | **APPLIED              DNA              SCIENCES, INC.**                                                                                                         |
|-----------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                              |                                                                                                                                                             |
|                              |                                                                                                                                                             |
| Date:                May 21, 2007 | By:                /s/ JAMES A. HAYWARD                                                                                                                          |
|                              | James                A. Hayward                                                                                                                                  |
|                              | Chief                Executive Officer (Principal Executive Officer, Principal Financial                Officer and Principal Accounting                Officer) |