Item 8.01 Other Events.

On May 1, 2023, Applied DNA Clinical Labs, LLC ("Applied DNA Clinical Labs"), a wholly-owned subsidiary of Applied DNA Sciences, Inc. (the "Company"), received a notice of termination from The City University of New York ("CUNY"), the Company's largest safeCircle COVID-19 testing solution customer, to terminate a contract (the "COVID Testing Contract") pursuant to which Applied DNA Clinical Labs provided COVID testing services to CUNY. The COVID Testing Contract, referred to by CUNY as Contract Number T212206, is dated August 3, 2021, and is by and between Applied DNA Clinical Labs and CUNY. The COVID Testing Contract was amended by that certain First Amendment, effective as of September 16, 2021, and that certain Second Amendment, effective as of July 18, 2022. The Company received a termination notice for the COVID Testing Contract on May 1, 2023 pursuant to Section 5.1 of the COVID Testing Contract. Applied DNA Clinical Labs will cease providing services pursuant to the COVID Testing Contract no later than June 30, 2023 subject to a wind-down plan to be negotiated by the parties. In the termination notice, CUNY stated that it is ending its COVID-19 vaccination mandate and testing protocol with respect to its schools and colleges.

After June 30, 2023, neither Applied DNA Clinical Labs nor CUNY will have any further obligations thereunder, except for obligations accruing prior to the date of termination.

The COVID Testing Contract represented 58% of the Company's revenues for fiscal year 2022. Historically, a majority of the Company's revenue attributable to its molecular diagnostics testing services has been derived from its safeCircle COVID-19 testing solutions. On April 11, 2023, the U.S. National Emergency in response to the COVID-19 pandemic was terminated. While the Company continues to support several safeCircle customers, the Company is currently observing a large decrease in demand for COVID-19 testing, which the Company believes will result in significantly lower revenues from its safeCircle COVID-19 testing solutions in subsequent quarters. A description of the COVID Testing Contract (including its amendments) is incorporated by reference from the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2022, as amended (the "10-K"), filed by the Company on December 14, 2022, and the description of the COVID Testing Contract is qualified in its entirety by reference to the full text of the COVID Testing Contract (including its amendments), which the Company filed as exhibits to the 10-K.

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