Pressure BioSciences, Inc. Reports Fiscal Year 2015 Financial
Results and Provides Business Update
Company Reports Increases in Total/Products/Grant Revenue &
Product Gross Margins
2015 Highlights Include Co-Marketing Agreement with Global Life
Science Leader SCIEX, $1 Million NIH Grant Award, Elimination
of All Variable-Rate Debt, Release of New
Instruments/Consumables, & Multiple Third Party
Publications Strongly Supporting Companys Patented and
Enabling PCT Platform
Investor Conference Call Scheduled for Wednesday, April 6, 2016
at 4:30 PM EDT
South Easton, MA -- April 6, 2016 -- InvestorsHub NewsWire --
Pressure BioSciences, Inc. (OTCQB:
PBIO) (PBI or the Company) today announced financial results
for the fiscal year ended December 31, 2015, provided a business
update, and offered limited guidance for FY2016.
Financial Results: FY2015 vs. FY2014Total revenue for the fiscal
year ended December 31, 2015 was $1,797,691 compared to $1,374,744
for the same period in 2014, an increase of approximately 31%.
Products and services revenue was $1,409,991 for the year ended
December 31, 2015 compared to $1,350,150 for the same period in
2014, an increase of 4.4%. Sales of instrumentation increased in
2015 by $36,139 or 5%, from $799,472 in FY 2014 to $835,611 in FY
2015. Consumable sales were $146,408 in FY 2015 compared to
$167,380 in FY 2014, a decrease of 13%. Grant revenue for the year
ended December 31, 2015 was $387,700 as compared to $24,594 in
2014, an increase of $363,106 or approximately 1500%. This
significant increase in grant revenue was due to the receipt of a
$1,020,969 SBIR Phase II grant (2R44HG007136) from the NIH, as
announced on February 19, 2015.
Operating loss for the year ended December 31, 2015 was
$3,565,182 compared to a loss of $3,338,350 for the same period in
2014, an increase of approximately 7%. This increase in operating
loss was due primarily to increases in R&D and G&A
expenses, and by the award of director and employee stock options,
off-set partially by increases in total revenue and product gross
margins.
Loss per common share basic and diluted was $0.36 for the year
ended December 31, 2015 compared to a loss per common share basic
and diluted of $0.44 for the same period in 2014.
Financial Highlights: 2015
a) Received $4.9M in a private
placement of fixed-rate convertible debentures between July Dec
2015
b) Eliminated 100% of the Companys
variable-rate convertible debt
c) Increased Total/Products &
Services/Grant Revenue and Product Gross Margins, 2015 vs 2014
d) Awarded $1,020,969 NIH SBIR Phase II
grant to develop a high-throughput, high pressure-based DNA
shearing system for Next Generation Sequencing (NGS)
Operational Highlights: 2015
e) SCIEX, a global leader in life
science analytical technologies, and a wholly-owned subsidiary of
Danaher Corporation (NYSE: DHR), announced an exclusive
co-marketing agreement with PBI to improve protein quantitation in
complex samples.
f) Professor Ruedi
Aebersold, an international authority in proteomics based at ETH
Zurich, and his colleagues published an article in the
well-respected scientific journal Nature Medicine on a breakthrough
method to permit quantification of thousands of proteins in needle
biopsy samples. The method was enabled by PBIs pressure cycling
technology (PCT) platform. The Company estimates there are millions
of needle biopsy samples analyzed worldwide every year.
g) Collaborators and customers published
and presented multiple papers throughout 2015 to highlight the key
advantages of the Companys PCT platform in a number of important
applications, including: (i) drug discovery and design, (ii) cancer
detection, (iii) analysis of microbial populations in soil, (iv)
proteomic profiling and classification of prostate cancer tissue
biopsy samples, (v) potential acceleration of the discovery of new
biomarkers for the early diagnosis and prediction of complications
in diabetes, (vi) potential improvement in the extraction of DNA
from rape kits and other forensic samples, and (vii) potential
discovery of new biomarkers and underlying pathways in the
emergence and progression of COPD-associated lung cancer.
h) The commercial release of PCT-HD, the
Next Generation Protein Preparation System, in two separate
presentations at a major international scientific meeting.
Mr. Richard T. Schumacher, President and CEO of PBI, commented:
We accomplished a number of key goals in 2015: the receipt of
approximately $5M in new capital; the elimination of all toxic
debt; the release of new pressure-based instruments and
consumables; the initial development of the new Barocycler NEP2320
Extreme designed to allow SCIEX and other mass spectrometry
customers to unleash the full potential of PCT in their proteomic
workflows; and the initiation of a co-marketing agreement with
SCIEX, a key provider of analytical instrumentation to the
scientific research markets worldwide.
Mr. Schumacher continued: These accomplishments, combined with
the planned expansion of our marketing and sales capabilities this
year, position us well for success in 2016 and beyond. We have
well-defined near-term goals that we believe are clear, focused,
and attainable. If achieved, we believe these goals should continue
to build value realization in PBI, positioning us as a stronger,
more valuable company going forward.
Near-Term Goals: FY2016
a) Continue to implement a sound
path toward financial self-sufficiency and future growth and
profitability.
b) Increase total/products &
services/grant revenue & gross margins, quarter/quarter and
year/year.
c) Complete the manufacture of the
Barocycler NEP2320 Extreme and begin the commercialization plan for
this robust, computer-driven, highly capable new
pressure-generating instrument.
d) Support and expand our co-marketing
program with SCIEX.
e) Secure a strategic marketing
and distribution partner for the Barozyme HT48 high throughput
system and for the NMR and EPR PCT-based sample preparation
systems.
f) Implement an expanded
marketing campaign for the patent-pending micro-Pestle
consumable.
g) Expand sales and marketing
capabilities to reach into new countries, investigators, and
fields-of-use.
h) Continue to prepare for a targeted
up-list to NASDAQ or the NYSE.
About Pressure BioSciences, Inc.
Pressure BioSciences, Inc. (PBI) (OTCQB:
PBIO) develops, markets, and sells proprietary laboratory
instrumentation and associated consumables to the estimated $6
billion life sciences sample preparation market. Our products are
based on the unique properties of both constant (i.e., static) and
alternating (i.e., pressure cycling technology, or PCT) hydrostatic
pressure. PCT is a patented enabling technology platform that uses
alternating cycles of hydrostatic pressure between ambient and
ultra-high levels to safely and reproducibly control bio-molecular
interactions. To date, we have installed over 250 PCT systems in
approximately 160 sites worldwide. There are over 100 publications
citing the advantages of the PCT platform over competitive methods,
many from key opinion leaders. Our primary development and sales
efforts are in the biomarker discovery, drug discovery and design,
and forensics areas. Customers also use our products in other
areas, such as bio-therapeutics characterization, soil & plant
biology, vaccine development, and counter-bioterror
applications.
Earnings Call
The Company will hold an Earnings Conference Call at 4:30 PM EDT
on Wednesday, April 6, 2016. To attend this teleconference via
telephone, Dial-in: (877) 407-8031 (North America), (201) 689-8031
(International). Verbal Passcode: PBI FY 2015 Financial Conference
Call, ID 13634697. Replay Number (877) 660-6853 (North America);
(201) 612-7415 (International). Teleconference Replay Available for
30 days.
Forward Looking Statements
This press release contains forward-looking statements. These
statements relate to future events or our future financial
performance and involve known and unknown risks, uncertainties and
other factors that may cause our or our industry's actual results,
levels of activity, performance or achievements to be materially
different from any future results, levels of activity, performance
or achievements expressed, implied or inferred by these
forward-looking statements. In some cases, you can identify
forward-looking statements by terminology such as "may," "will,"
"should," "could," "would," "expects," "plans," "intends,"
"anticipates," "believes," estimates," "predicts," "projects,"
"potential" or "continue" or the negative of such terms and other
comparable terminology. These statements are only predictions based
on our current expectations and projections about future events.
You should not place undue reliance on these statements. In
evaluating these statements, you should specifically consider
various factors. Actual events or results may differ materially.
The Company's financial results for the year ended December 31,
2015 may not necessarily be indicative of future results. These and
other factors may cause our actual results to differ materially
from any forward-looking statement. These risks, uncertainties, and
other factors include, but are not limited to, the risks and
uncertainties discussed under the heading "Risk Factors" in the
Company's Annual Report on Form 10-K for the year ended December
31, 2015, and other reports filed by the Company from time to time
with the SEC. The Company undertakes no obligation to update any of
the information included in this release, except as otherwise
required by law.
For more information about PBI and this press release, please
click on the following website link:
http://www.pressurebiosciences.com
Please visit us on Twitter |
LinkedIn | YouTube | Google+
| Facebook
Investor Contacts:
Richard T. Schumacher, President & CEO (508) 230-1828
(T)
Jeffrey N. Peterson, Chairman of the Board (650) 812-8121
(T)
PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(AUDITED)
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
ASSETS
|
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
116,783
|
|
|
$
|
473,948
|
|
Accounts receivable
|
|
|
113,256
|
|
|
|
272,022
|
|
Inventories, net of $50,000 reserve at December 31, 2015 and
December 31, 2014
|
|
|
1,038,371
|
|
|
|
850,552
|
|
Prepaid income taxes
|
|
|
7,381
|
|
|
|
7,381
|
|
Prepaid expenses and other current assets
|
|
|
213,926
|
|
|
|
104,204
|
|
Total current assets
|
|
|
1,489,717
|
|
|
|
1,708,107
|
|
Investment in available-for-sale equity securities
|
|
|
294,522
|
|
|
|
-
|
|
Property and equipment, net
|
|
|
20,149
|
|
|
|
36,025
|
|
TOTAL ASSETS
|
|
$
|
1,804,388
|
|
|
$
|
1,744,132
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS DEFICIT
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
941,389
|
|
|
$
|
1,035,781
|
|
Accrued employee compensation
|
|
|
176,009
|
|
|
|
157,347
|
|
Accrued professional fees and other
|
|
|
821,088
|
|
|
|
719,432
|
|
Deferred revenue
|
|
|
140,878
|
|
|
|
27,117
|
|
Convertible debt, net of unamortized discounts of $0 and
$328,681, respectively
|
|
|
100,000
|
|
|
|
1,004,513
|
|
Other debt, net of unamortized discounts of $3,041 and $0,
respectively
|
|
|
151,628
|
|
|
|
80,480
|
|
Warrant derivative liabilities
|
|
|
3,295,976
|
|
|
|
159,875
|
|
Conversion option derivative liabilities
|
|
|
3,940,791
|
|
|
|
590,341
|
|
Total current liabilities
|
|
|
9,567,759
|
|
|
|
3,774,886
|
|
LONG TERM LIABILITIES
|
|
|
|
|
|
|
|
|
Convertible debt, net of unamortized discounts of $5,223,658 and
$0, respectively
|
|
|
177,342
|
|
|
|
-
|
|
Deferred revenue
|
|
|
36,935
|
|
|
|
28,977
|
|
TOTAL LIABILITIES
|
|
|
9,782,036
|
|
|
|
3,803,863
|
|
STOCKHOLDERS DEFICIT
|
|
|
|
|
|
|
|
|
Series D Convertible Preferred Stock, $.01 par value; 850 shares
authorized; 300 shares issued and outstanding on December 31, 2015
and 2014, respectively (Liquidation value of $300,000)
|
|
|
3
|
|
|
|
3
|
|
Series G Convertible Preferred Stock, $.01 par value; 240,000
shares authorized; 86,570 shares issued and outstanding on December
31, 2015 and 2014, respectively
|
|
|
866
|
|
|
|
866
|
|
Series H Convertible Preferred Stock, $.01 par value; 10,000
shares authorized; 10,000 shares issued and outstanding on December
31, 2015 and 2014, respectively
|
|
|
100
|
|
|
|
100
|
|
Series H2 Convertible Preferred Stock, $.01 par value; 21 shares
authorized; 21 shares issued and outstanding on December 31, 2015
and 2014, respectively
|
|
|
-
|
|
|
|
-
|
|
Series J Convertible Preferred Stock, $.01 par value; 6,250
shares authorized; 3,546 shares issued and outstanding on December
31, 2015 and 2014, respectively
|
|
|
36
|
|
|
|
36
|
|
Series K Convertible Preferred Stock, $.01 par value; 15,000
shares authorized; 11,416 shares issued and outstanding on December
31, 2015 and 2014, respectively
|
|
|
114
|
|
|
|
114
|
|
Common stock, $.01 par value; 100,000,000 shares authorized;
23,004,898 and 18,673,390 shares issued and outstanding on December
31, 2015 and 2014, respectively
|
|
|
230,050
|
|
|
|
186,734
|
|
Warrants to acquire common stock
|
|
|
5,416,681
|
|
|
|
5,253,566
|
|
Additional paid-in capital
|
|
|
26,036,733
|
|
|
|
24,617,564
|
|
Accumulated other comprehensive income
|
|
|
(105,025
|
)
|
|
|
-
|
|
Accumulated deficit
|
|
|
(39,557,206
|
)
|
|
|
(32,118,714
|
)
|
Total stockholders deficit
|
|
|
(7,977,648
|
)
|
|
|
(2,059,731
|
)
|
TOTAL LIABILITIES AND STOCKHOLDERS DEFICIT
|
|
$
|
1,804,388
|
|
|
$
|
1,744,132
|
|
|
|
|
|
|
|
|
|
|
PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(AUDITED)
|
|
For the Year Ended
|
|
|
|
December 31,
|
|
|
|
2015
|
|
|
2014
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Products, services, other
|
|
$
|
1,409,991
|
|
|
$
|
1,350,150
|
|
Grant revenue
|
|
|
387,700
|
|
|
|
24,594
|
|
Total revenue
|
|
|
1,797,691
|
|
|
|
1,374,744
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
Cost of products and services
|
|
|
609,054
|
|
|
|
652,438
|
|
Research and development
|
|
|
1,105,295
|
|
|
|
952,555
|
|
Selling and marketing
|
|
|
745,574
|
|
|
|
721,229
|
|
General and administrative
|
|
|
2,902,950
|
|
|
|
2,386,872
|
|
Total operating costs and expenses
|
|
|
5,362,873
|
|
|
|
4,713,094
|
|
|
|
|
|
|
|
|
|
|
Operating loss
|
|
|
(3,565,182
|
)
|
|
|
(3,338,350
|
)
|
|
|
|
|
|
|
|
|
|
Other (expense) income:
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(4,146,416
|
)
|
|
|
(1,303,129
|
)
|
Other expense
|
|
|
(36,879
|
)
|
|
|
(169,554
|
)
|
Gain on extinguishment of embedded derivative liabilities
|
|
|
2,555,180
|
|
|
|
-
|
|
Change in fair value of derivative liabilities
|
|
|
(2,222,001
|
)
|
|
|
198,493
|
|
Total other (expense) income
|
|
|
(3,850,116
|
)
|
|
|
(1,274,190
|
)
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
(7,415,298
|
)
|
|
|
(4,612,540
|
)
|
Accrued dividends on convertible preferred stock
|
|
|
(23,194
|
)
|
|
|
(143,771
|
)
|
Deemed dividends on convertible preferred stock
|
|
|
-
|
|
|
|
(1,495,415
|
)
|
|
|
|
|
|
|
|
|
|
Net loss applicable to common shareholders
|
|
$
|
(7,438,492
|
)
|
|
$
|
(6,251,726
|
)
|
|
|
|
|
|
|
|
|
|
Net loss per share attributable to common stockholders - basic
and diluted
|
|
$
|
(0.36
|
)
|
|
$
|
(0.44
|
)
|
|
|
|
|
|
|
|
|
|
Weighted average common stock shares outstanding used in the
basic and diluted net loss per share calculation
|
|
|
20,726,205
|
|
|
|
14,264,753
|
|
|
|
|
|
|
|
|
|
|