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Pressure BioSciences, Inc. Reports Second Quarter and
Year-to-Date 2015 Financial Results and Provides Business
Update
Q2 Products & Services Revenue Increases 8.5%, Consumable
Sales Rise 16.7%, and
Total Revenue Increases 34.4% Q/Q; First Half 2015 Total Revenue
Up 20% Setting All-time Record
Investor Conference Call Scheduled for Monday, August 17, 2015
at 4:30 PM EDT
South Easton, MA, August 17, 2015 -- Pressure BioSciences, Inc.
(OTCQB:
PBIO) (PBI or the Company) today announced financial results
for the three and six-month periods ended June 30, 2015, which
included increases in all major revenue categories for the quarter
and record total revenue for the half-year period. The Company also
provided a business update, which included the sale last week of
1,000,000 shares of restricted common stock at a significant
premium to market ($0.46/share) to one of the most recognized and
respected portfolio/fund managers in Poland. In return, in lieu of
cash, the Company received 601,500 shares of Everest Investments, a
publicly-traded company on the Main Market of the Warsaw Stock
Exchange.
For the three months ended June 30, 2015, products and services
revenue was $333,575 compared to $307,464 for the same period in
2014, an increase of 8.5%. Sales of consumables were $56,513 for
the three months ended June 30, 2015 compared to $48,417 for the
same period in 2014, an increase of 16.7%. Company operations
included $79,529 of grant revenue for the second quarter of 2015
compared to no grant revenue for the comparable period in 2014.
Total revenue for the 2015 second quarter was $413,104 compared to
$307,464 for the same period in 2014, a 34.4% increase. This
increase was due to increases in both product and services and
grant revenue in the second quarter of 2015.
Operating loss for the 2015 second quarter was $1,063,889,
compared to $846,757 for the same period in 2014. Operating expense
increases were primarily due to an expansion of our market
awareness program, our grant and investor relations programs in
Poland, and increases in legal, patent, marketing, and research
& development.
For the six months ended June 30, 2015, products and services
revenue was $692,939 compared to $711,611 for the same period in
2014, a 2.6% decrease. Sales of consumables were $96,348 for the
six months ended June 30, 2015 compared to $103,029 for the same
period in 2014, a 6.5% decrease. Grant revenue for the six months
ended June 30, 2015 was $160,299 compared to no revenue for the
same period in 2014. Total revenue for the six months ended June
30, 2015 was $853,238 compared to $711,611 for the same period in
2014, a 20% increase.
Operating loss for the six months ended June 30, 2015 was
$1,938,708 compared to $1,629,123 for the same period in 2014.
Operating expense increases were primarily due to an expansion of
our investor relations and market awareness programs, as well as to
increases in legal, patent, marketing, and research &
development.
Loss per common share basic and diluted was $0.07 for the second
quarter of 2015 compared to $0.05 for the same period in 2014. Loss
per common share basic and diluted was $0.14 for the six months
ended June 30, 2015 compared to $0.30 for the same six-month period
of 2014.
Mr. Richard P. Thomley, Chief Financial Officer of PBI,
commented: During 2015, in an effort to better position the Company
for growth and a potential up-list to a regulated exchange, we
increased expenditures in several G&A areas. We believe our
efforts have been successful to date, and that the level of such
expenditures will be lower in the second half of 2015.
Mr. Thomley continued: Revenue continues to increase. In Q2
2015, we reported quarter over prior year quarter increases in
products and services revenue, including consumables, as well as
total revenue. We followed our Q1 2015 record total revenue of
$440,134 with a second straight $400,000+ quarter in Q2; we have
never done this before. In line with previous guidance, we expect
even stronger revenue growth in the second half of 2015. Based on
shipments-to-date, purchase orders received, and serious
indications to purchase, we believe that total revenue will exceed
half a million dollars in Q3, strongly supported by continued
growth in products and services revenue.
Mr. Richard T. Schumacher, President and CEO of PBI, commented:
In addition to strong financial results, we achieved a number of
other successes during Q2 and the six weeks that followed,
including announcing that:
- we are collaborating with Southern University at New Orleans to
develop methods for improving and extending applications of the PCT
platform for DNA detection in forensic samples.
scientists from Northwestern Univ. used PCT to extract cotinine
(metabolite of nicotine) from dried blood spots and theorized that
PCT might also improve the extraction of other chemical toxins and
carcinogens.
three scientific articles were published that show the key
advantages of the PCT platform in drug discovery & design,
cancer detection, and in the analysis of microbial communities in
soil.
scientists from the Institute of Molecular Systems Biology in
Zurich, Switzerland presented data on an improved method for the
proteomic profiling and classification of prostate cancer tissue
biopsy samples.
promising results were reported by forensic expert Dr. Bruce McCord
when PCT was incorporated into a new method for improving the
extraction of DNA from rape kits and other forensic samples.
Chinese and Swiss researchers suggested a PCT-based workflow that
could potentially accelerate the discovery of new biomarkers for
the early diagnosis and prediction of complications in
diabetes.
PCT was a key workflow component in a study to discover potential
biomarkers and underlying pathways in the emergence and progression
of COPD-associated lung cancer.
the Company closed a $2,180,000 initial tranche of a $5 Million
Private Placement.
the Company sold 1,000,000 shares of restricted Common Stock to
Everest Investments Holdings at a purchase price of $0.50 per
share. In return, in lieu of cash, the Company received 601,500
shares of Everest Investments, a publicly-traded company on the
Main Market of the Warsaw Stock Exchange, The Everest Investments
shares were valued at approximately $460,000 as of the closing
date.
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 Monday, August 17, 2015. To attend this teleconference via
telephone: Dial-in: (877) 407-8031 (North America); (201) 689-8031
(International). Verbal Passcode (to be given to the operator): PBI
Second Quarter 2015 Financial Conference Call, ID 13617772. For
those unable to participate in the live teleconference, a replay
will be available beginning on Tuesday, August 18, 2015, and will
be accessible both by telephone and through the Companys website
until September 17, 2015. Replay Number: (877) 660-6853 (North
America); (201) 612-7415 (International); Conference ID:
13617772.
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 quarter ended June 30, 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, 2014, 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
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PRESSURE BIOSCIENCES, INC. AND
SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
(Unaudited)
|
|
|
|
|
|
June 30,
|
|
December 31,
|
ASSETS
|
2015
|
|
2014
|
CURRENT ASSETS
|
|
|
|
|
Cash and cash equivalents
|
$38,175
|
|
$473,948
|
|
Accounts receivable
|
349,958
|
|
272,022
|
|
Inventories, net of $50,000 reserve at
June 30, 2015 and December 31, 2014
|
783,891
|
|
850,552
|
|
Prepaid income taxes
|
7,381
|
|
7,381
|
|
Prepaid expenses and other current
assets
|
151,481
|
|
104,204
|
|
Total current assets
|
1,330,886
|
|
1,708,107
|
Property and equipment, net
|
30,500
|
|
36,025
|
TOTAL ASSETS
|
$1,361,386
|
|
$1,744,132
|
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LIABILITIES AND STOCKHOLDERS'
DEFICIT
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
Accounts payable
|
$979,479
|
|
$1,035,781
|
|
Accrued employee
compensation
|
153,269
|
|
157,347
|
|
Accrued professional fees and
other
|
803,789
|
|
719,432
|
|
Deferred revenue
|
73,364
|
|
27,117
|
|
Convertible debt, net of debt discount
of $1,176,668 and $328,681,
respectively
|
1,083,353
|
|
1,004,513
|
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Other debt
|
740,839
|
|
80,480
|
|
Warrant derivative liability
|
124,643
|
|
159,875
|
|
Conversion option liability
|
1,731,650
|
|
590,341
|
|
Total current liabilities
|
5,690,386
|
|
3,774,886
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LONG TERM LIABILITIES
|
|
|
|
|
Deferred revenue
|
-
|
|
28,977
|
TOTAL LIABILITIES
|
5,690,386
|
|
3,803,863
|
COMMITMENTS AND CONTINGGENCIES (Note
4)
STOCKHOLDERS' DEFICIT
|
|
|
|
|
Series D convertible preferred stock,
$.01 par value; 850 shares authorized;
300 shares issued and outstanding on
June 30, 2015 and Dec. 31, 2014
(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
June 30, 2015 and Dec. 31, 2014
|
866
|
|
866
|
|
Series H convertible preferred stock,
$.01 par value; 10,000 shares authorized;
10,000 shares issued and outstanding on
June 30, 2015 and Dec. 31, 2014
|
100
|
|
100
|
|
Series H2 convertible preferred stock
$0.01 par value; 21 shares authorized; 21 shares issued and
outstanding on June 30, 2015 and December 31, 2014
|
-
|
|
-
|
|
Series J convertible preferred stock,
$.01 par value; 6,250 shares authorized;
3,546 shares issued and outstanding on
June 30, 2015 and Dec. 31, 2014
|
36
|
|
36
|
|
Series K convertible preferred stock,
$.01 par value; 15,000 shares authorized;
11,463 shares issued and outstanding on
June 30, 2015 and Dec. 31, 2014
|
114
|
|
114
|
|
Common stock, $.01 par value;
65,000,000 shares authorized; 19,939,131 and 18,673,390 shares
issued and outstanding on June 30, 2015 and on Dec. 31, 2014,
respectively
|
199,391
|
|
186,734
|
|
Warrants to acquire common
stock
|
5,347,054
|
|
5,253,566
|
|
Additional paid-in capital
|
25,037,861
|
|
24,617,564
|
|
Accumulated deficit
|
(34,914,425)
|
|
(32,118,714)
|
|
Total stockholders' deficit
|
(4,329,000)
|
|
(2,059,731)
|
TOTAL LIABILITIES AND STOCKHOLDERS'
DEFICIT
|
$1,361,386
|
|
$1,744,132
|
|
|
|
|
|
PRESSURE BIOSCIENCES, INC. AND
SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(UNAUDITED)
|
|
|
|
For the Three Months Ended
|
For the Six Months Ended
|
|
|
|
|
June 30,
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June 30,
|
|
|
|
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2015
|
|
2014
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Products, services, other
|
|
$333,575
|
|
$307,464
|
$692,939
|
|
$711,611
|
|
Grant revenue
|
|
79,529
|
|
-
|
160,299
|
|
-
|
|
|
Total revenue
|
|
413,104
|
|
307,464
|
853,238
|
|
711,611
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
Cost of products and
services
|
|
175,193
|
|
134,453
|
365,976
|
|
312,059
|
|
Research and development
|
|
291,402
|
|
253,238
|
523,325
|
|
484,326
|
|
Selling and marketing
|
|
200,178
|
|
196,074
|
366,401
|
|
367,414
|
|
General and administrative
|
|
810,220
|
|
570,456
|
1,536,244
|
|
1,176,935
|
|
|
Total operating costs and
expenses
|
|
1,476,993
|
|
1,154,221
|
2,791,946
|
|
2,340,734
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss
|
|
(1,063,889)
|
|
(846,757)
|
(1,938,708)
|
|
(1,629,123)
|
|
|
|
|
|
|
|
|
|
|
Other (expense) income:
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(640,691)
|
|
(341,649)
|
(1,246,276)
|
|
(478,313)
|
|
Other expense
|
|
(168,111)
|
|
-
|
(513,352)
|
|
-
|
|
Gain on extinguishment of derivative
liabilities
|
|
186,609
|
|
-
|
848,073
|
|
-
|
|
Change in fair value of derivative
liabilities
|
|
299,841
|
|
585,219
|
78,031
|
|
(255,406)
|
|
|
Total other (expense) income
|
|
(322,352)
|
|
243,570
|
(833,524)
|
|
(733,719)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
(1,386,241)
|
|
(603,187)
|
(2,772,232)
|
|
(2,362,842)
|
|
Accrued dividends on convertible
preferred stock
|
|
(6,811)
|
|
(9,606)
|
(23,479)
|
|
(54,593)
|
|
Deemed dividends on convertible
preferred stock
|
|
-
|
|
(107,996)
|
-
|
|
(1,388,062)
|
|
Net loss applicable to common
shareholders
|
|
$(1,393,052)
|
|
$(720,789)
|
$(2,795,711)
|
|
$(3,805,497)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share attributable to
common stockholders - basic and diluted
|
$(0.07)
|
|
$(0.05)
|
$(0.14)
|
|
$(0.30)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common stock shares
outstanding used in the basic and diluted net loss per share
calculation
|
|
19,682,632
|
|
|
13,567,472
|
19,247,895
|
12,848,751
|
Investor Contacts:
Richard T. Schumacher, President & CEO (508) 230-1828
(T)
Richard P. Thomley, Chief Financial Officer