Financial Analysis

NOTE J COMMITMENTS AND CONTINGENCIES Operating Leases The Company leases office space under an operating lease in Stony Brook, New York for its corporate headquarters. The lease is for a 30,000 square foot building. The Company entered into an amended lease agreement on February 1, 2023. The initial term is for three years and expires on February 1, 2026. The lease for the corporate headquarters requires monthly payments of $48,861, which is adjusted annually based on the US Consumer Price Index (CPI) and was adjusted to monthly payments of $52,440 commencing on February 1, 2025. In lieu of a security deposit, the Company provided a standby letter of credit of $750,000. In addition, the Company also had 2,500 square feet of laboratory space, for which it entered into an amended lease agreement on February 1, 2023. The initial lease term for the laboratory space was one year from the commencement date and was extended until January 31, 2025. Effective February 1, 2025, the Company extended this lease for 2,000 square feet of laboratory space until January 31, 2026. On February 28, 2025, the Company vacated one of its laboratory suites and currently leases 1,000 square feet under this lease amendment. The base rent for the new lease term is monthly payments of $4,346 and the lease is terminable by the Company upon one months written notice to the landlord. The Company terminated the lease for the remaining 1,000 square feet, effective July 31, 2025. On September 19, 2025, the C …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Fiscal Years Ended: September 30, 2025 2024 Research and development services (point-in-time) $ 375,759 $ 311,238 Product and authentication services (point-in-time): Supply chain 1,148,816 1,208,696 Large Scale DNA Production 612,360 584,115 Asset marking 9,441 Total $ 2,136,935 $ 2,113,490 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

NOTE L FAIR VALUE OF FINANCIAL INSTRUMENTS The Companys financial instruments at fair value are measured on a recurring basis. Related unrealized gains or losses are recognized in unrealized gain (loss) on change in fair value of the warrants classified as a liability in the consolidated statements of operations. For additional disclosures regarding methods and assumptions used in estimating fair values of these financial instruments, see Note C. The following table presents the fair value of the Companys financial instruments as of September 30, 2025. Fair value at September 30, 2025 Liabilities: Common Warrants $ 20.00 Series A Warrants $ Series A Warrants - modified $ 10.00 Private Common Warrants $ 340.00 The fair value of the warrants classified as a liability as of September 30, 2025, was determined using the Black Scholes and Probability Weighted Expected Return models. The fair value for the warrants classified as a liability as of September 30, 2025, was calculated using the following assumptions: Series A Private Series A Common Series A Warrants Common Warrants Warrants modified Warrants Stock price $ 3.88 $ 3.88 $ 3.88 $ 3.88 Exercise price $ 9,135 $ 60,000 $ 9,135 $ 9,135 Dividend yield 0 % 0 % 0 % 0 % Selected Volatility 172.50 % 190.00 % 172.50 % 170.00 % Risk free rate 3.61 % 3.61 % 3.61 % 3.65 % Fundamental transaction probability (significant unobservable input) 80.00 % 80.00 % 80.00 % 80.00 % Fundamental transaction Black Scholes Volatility 227.30 % 100.00 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

NOTE I INCOME TAXES The income tax provision (benefit) for the fiscal years ended September 30, 2025 and 2024 consists of the following: 2025 2024 Federal: Current $ $ Deferred (2,198,000) 5,874,000 (2,198,000) 5,874,000 State and local: Current Deferred (133,115) 417,000 (133,115) 417,000 Foreign: Current Deferred (724,000) (11,000) (724,000) (11,000) Change in valuation allowance (2,371,000) (6,280,000) Income tax provision (benefit) $ (684,115) $ The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory rate to losses before income tax expense for the years ended September 30, 2025 and 2024 as follows: 2025 2024 Statutory federal income tax rate 21.00 % 21.00 % Statutory state and local income tax rate (1%, as of September 30, 2025 and 2024), net of federal benefit 2.77 % 10.19 % Stock based compensation (3.98) % 2.04 % Permanent differences related to warrants 0.42 % 20.33 % Other permanent differences 0.19 % (2.49) % Federal R&D Credit 1.03 % (2.43) % Adjustment for prior years NOLs (1.04) % (137.65) % Change in deferred tax rate (1.18) % (0.81) % Change in valuation allowance (14.91) % 89.82 % Effective tax rate 4.30 % 0.00 % NOTE I INCOME TAXES, continued Deferred income taxes result from temporary differences in the recognition of income and expenses for financial reporting purposes and for tax purposes. The tax effect of these temporary differences representing deferred tax asset and liabilities resu …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recent Accounting Standards In December 2023, the FASB issued Accounting Standards Update (ASU) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , that enhances the transparency of income tax disclosures by expanding annual disclosure requirements related to the rate reconciliation and income taxes paid. The guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and should be applied prospectively with the option of retrospective application. The Company is currently evaluating the impact of adopting this ASU on its disclosures. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure. The ASU updates reportable segment disclosure requirements, primarily through requiring enhanced disclosures about significant segment expenses and information used to assess segment performance. These disclosures are required quarterly. The ASU was effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024, with early adoption permitted. It is required to be adopted retrospectively for all prior periods presented in the financial statements The Company has updated its segment disclosures to include details of its operating expenses line items as part of adopting this ASU. In August 2020, the FASB issued ASU No. 2020-06, DebtDebt with Conversion and Other Options (Subtopic 470-20) and Derivat …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

NOTE K SEGMENT AND GEOGRAPHIC AREA INFORMATION As detailed in Note C above, the Company currently has two reportable segments. (1) Therapeutic DNA Production Services and (2) DNA Tagging and Security Products and Services. For the fiscal year ended September 30, 2024, the MDx Testing Services segment is also presented. Resources are allocated by our CEO and CFO whom, collectively the Company has determined to be our CODM. Information regarding operations by segment for the fiscal year ended September 30, 2025 is as follows: Therapeutic DNA DNA Tagging and Production Security Products Consolidated Revenues: Product revenues $ 828,806 $ 595,341 $ 1,424,147 Service revenues 159,312 553,476 712,788 Total revenues $ 988,118 $ 1,148,817 $ 2,136,935 Gross profit $ 336,666 $ 502,241 $ 838,907 Segment operating expenses Selling, general and administrative $ 4,203,069 $ 1,273,113 $ 5,476,182 Research and development 5,436,239 140,267 5,576,506 Total segment operating expenses $ 9,639,308 $ 1,413,380 $ 11,052,688 (Loss) income from segment operations (a) $ (9,302,642) $ (911,139) $ (10,213,781) Depreciation expense for the fiscal year ended September 30, 2025 was $344,008 for the Therapeutic DNA Production and Services segment and $40,157 for the DNA Tagging and Security Products and Services segment. Information regarding operations by segment for the fiscal year ended September 30, 2024 is as follows: Therapeutic DNA MDx Testing DNA Tagging and Production Services and Kits Security Pr …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

NOTE N SUBSEQUENT EVENTS Nasdaq Ticker Change; Amendments to Articles of Incorporation Name Change Effective October 7, 2025 the Company changed its ticker symbol on the Nasdaq Capital Market from APDN to BNBX. Effective November 13, 2025, Applied DNA Sciences, Inc. changed its name to BNB Plus Corp., pursuant to an amendment to its certificate of incorporation adopted by the Board and filed with the Secretary of the State of Delaware. Josh Kruger Appointed Chairman of the Board On November 6, 2025, the Board, upon recommendation of the Nominating Committee of the Board, appointed Joshua Kruger to serve as its Chairman and as a Director. At the time of Mr. Krugers appointment, the Board had a vacancy as the result of the previously disclosed resignation on September 29, 2025 of Sanford R. Simon. Mr. Kruger replaced Judith Murrah as Chairman, who voluntarily resigned from her position as Chairperson of the Board effective November 6, 2025. Ms. Murrah will continue to serve as a Director of the Company. Ms. Murrahs resignation as Chairperson is not the result of any dispute or disagreement with the Company or the Board on any matter relating to the Companys operations, policies or practices. The Board determined that Mr. Kruger does not satisfy the independence criteria set forth in the Nasdaq rules and is not independent for purposes of serving on the Board. Mr. Kruger is a member of the Services Provider and Strategic Advisor, which together provide services to the Company fo …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

NOTE I COMMITMENTS AND CONTINGENCIES Operating Leases The Company leased office space under an operating lease in Stony Brook, New York for its former corporate headquarters. The lease was for a 30,000 square foot building. The Company entered into an amended lease agreement on February 1, 2023. The initial term was for three years and expired on February 1, 2026. The lease for the corporate headquarters required monthly payments of $48,861 , which was adjusted annually based on the US Consumer Price Index (CPI) and was adjusted to monthly payments of $52,440 commencing on February 1, 2025. In lieu of a security deposit, the Company provided a standby letter of credit of $750,000 . On January 20, 2026, The Company entered into a new lease agreement for a total of 2,095 square feet for its new corporate headquarters in Stony Brook, New York, which includes both office space and two laboratories for a combined monthly payment of $8,665 . The new lease term commenced on February 1, 2026 and will expire on January 31, 2027. On September 19, 2025, the Company entered into a lease agreement for approximately 175 square feet of office space in Windermere, Florida. This lease expires on September 30, 2026, and has monthly payments of $1,489 . The lease for our new corporate headquarters, as well as the office space lease in Florida are both considered short-term lease obligations. The total rent expense for the quarters ended December 31, 2025 and 2024 was $161,787 and $188,558 , res …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents revenues disaggregated by our business operations and timing of revenue recognition: Three Months Ended: December 31, December 31, 2025 2024 Research and development services (point-in-time) $ 28,802 $ 147,441 Product and authentication services (point-in-time): Supply chain 113,582 722,850 Large Scale DNA Production 423,010 Total $ 565,394 $ 870,291 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Recent Accounting Standards In May 2025, the FASB issued ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity. This standard clarifies the guidance in determining the acquirer in an acquisition transaction effected primarily by exchanging equity interests when the legal acquiree is a VIE that meets the definition of a business. The amendments require that an entity consider the same factors that are currently required for determining which entity is the accounting acquirer in other acquisition transactions. This guidance is effective for fiscal years beginning after December 15, 2026, and therefore will be effective beginning with the Companys financial statements issued for the fiscal year ending September 30, 2028, with early adoption permitted. The amendments are required to be applied prospectively to any acquisition transaction that occurs after the initial application date. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements and disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , that enhances the transparency of income tax disclosures by expanding annual disclosure requirements related to the rate reconciliation and income taxes paid. The guidance is effective for fiscal years beginning after December 15, 2024, with early …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

NOTE J SEGMENT INFORMATION As detailed in Note B above, the Company currently has three reportable segments; (1) Therapeutic DNA Production Services, (2) Digital Asset Treasury, and (3) DNA Tagging and Security Products and Services. Resources are allocated by our CEO, and CFO whom, collectively the Company has determined to be our CODM. As a result of the strategic restructuring during the fiscal year ended September 30, 2025, regarding the closure of its clinical laboratory, effective June 27, 2025, the Companys MDx Testing Services segment is being reported in discontinued operations. Information regarding operations by segment for the three-months ended December 31, 2025 is as follows: Therapeutic DNA DNA Tagging and Production Security Products Digital Asset Treasury Consolidated Revenues: Product revenues $ 450,548 $ 104,545 $ $ 555,093 Service revenues 1,263 9,038 10,301 Less intersegment revenues Total revenues $ 451,811 $ 113,583 $ $ 565,394 Gross profit $ 308,610 $ 6,747 $ $ 315,357 Segment operating expenses Selling, general and administrative $ 610,078 $ 46,979 $ 9,856,094 $ 10,513,151 Loss from fair value measurement of digital assets 1,732,557 1,732,557 Loss from fair value measurement of investments 3,484,009 3,484,009 Research and development 421,974 24,843 446,817 Total segment operating expenses $ 1,032,052 $ 71,822 $ 15,072,660 $ 16,176,534 Loss from segment operations (a) $ (723,442) $ (65,075) $ (15,072,660) $ (15,861,177) NOTE J SEGMENT INFORMATION conti …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

NOTE G CAPITAL STOCK Nasdaq Ticker Change Effective October 7, 2025 the Company changed its ticker symbol on the Nasdaq Capital Market from APDN to BNBX. At the Market Offering On November 4, 2025 the Company entered into an At The Market Offering Agreement (the ATM) with Lucid Capital Markets, LLC, as sales agent (the Agent), pursuant to which the Company may, from time to time, offer and sell shares of its common stock with an aggregate offering price of up to $8,157,932 through the Agent. Subject to the terms and conditions of the Agreement, the Agent will use its commercially reasonable efforts to sell the Shares from time to time, based upon the Companys instructions. The Company has no obligation to sell any of the Shares, and may at any time suspend sales under the Agreement or terminate the Agreement in accordance with its terms. The Company has provided the Agent with customary indemnification rights. The Agreement contains customary representations and warranties, and the Company is required to deliver customary closing documents and certificates in connection with sales of the Shares. During the quarter ended December 31, 2025, the Company sold 10,759 shares of common stock for net proceeds of $30,749, after deducting commissions of $983. Private Placement Offering The Company completed two private placements: a Cash Private Placement on October 3, 2025, and a Cryptocurrency Private Placement on October 21, 2025 (collectively the Private Placement). In Cash Private …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

NOTE L SUBSEQUENT EVENTS On February 2, 2026, the Board of Directors appointed James Haft to serve as a director and as a member of the Nominating Committee of the Board, effective February 2, 2026, until his successor has been duly elected and qualified, or until his earlier resignation or removal. At the time of Mr. Hafts appointment, the Board had a vacancy as the result of Ms. Schmalz Shaheens resignation. For Mr. Hafts services as a director, on February 2, 2026, the Board approved and entered into a letter agreement (the Letter Agreement) with Mr. Haft. Pursuant to the terms of the Letter Agreement, Mr. Haft received (i) a one-time cash fee of $40,000, and (ii) an initial option grant to purchase up to 93,000 shares of the Companys common stock (Initial Option Grant) at a price of $1.31 per share. The Initial Option Grant will vest in four equal installments on May 2, 2026, August 2, 2026, November 2, 2026 and February 2, 2027. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing