SOUTH EASTON, MA -- (Marketwired) -- 08/16/17 -- Pressure BioSciences, Inc. (OTCQB: PBIO) ("PBI" or the "Company"), a leader in the development and sale of broadly enabling, pressure cycling technology ("PCT")-based sample preparation solutions to the worldwide life sciences industry, today announced financial results for the second quarter of 2017, provided a business update, and offered limited guidance on its growth plan for FY2017.
Financial Results: Q2 2017 vs. Q2 2016
Total revenue for the 2017 second quarter was $540,372 compared to $510,963 during the same period in 2016, an increase of $29,409 or 6%. This increase was primarily due to higher revenue from grant related activities and instrument sales, as described below. We believe total revenue will continue to increase over the remaining quarters of 2017.
Products and services revenue increased to $480,400 in Q2 2017 compared to $474,187 for the prior year same period, an increase of 1%. Comparing Q2 2017 to Q2 2016, instrument sales increased to $346,882 from $311,345 (an increase of 11%) while consumable sales decreased to $52,365 from $72,773 (a decrease of 28%). We believe products and services revenue will continue to increase over the remaining quarters of 2017.
Grant revenue increased to $59,972 in the second quarter 2017 from $36,776 in the prior year period, an increase of 63%. We believe grant revenue will continue to increase over the remaining quarters of 2017.
Operating loss increased to $1,204,291 in Q2 2017 from $1,060,697 for the same period in 2016, an increase of $143,594 or 14%. This increase was primarily due to a significant increase in sales and marketing expenses during Q2 2017 (an increase of $106,226, or 55%) combined with an increase in G&A expenses related to the hire of a CFO and an increase in investor relations and business development activities.
Net loss per common share -- basic and diluted -- was $(0.54) for the quarter ended June 30, 2017 compared to net income per common share of $1.11 (basic) and net loss per common share of $(0.03) (diluted) for the same period in 2016. Net income per common share for the period ended June 30, 2016 was primarily due to the impact of a favorable change in fair value of derivative liabilities amounting to $3,032,762.
Financial Results: First Half 2017 vs. First Half 2016
Total revenue for the 2017 first half was $1,091,729 compared to $1,021,442 for the prior year same period, an increase of $70,287 or 7%. This increase was primarily due to higher revenue from instrument sales, as described below. We believe total revenue will continue to increase over the remaining quarters of 2017.
Products and services revenue increased to $1,006,398 for the first half of 2017 compared to $928,538 for the same period in 2016, an increase of $77,860 or 8%. Comparing 1H 2017 to 1H 2016, instrument sales increased to $742,977 from $643,361 (an increase of 16%) while consumable sales decreased slightly to $115,629 from $117,008 (a decrease of 1%). We believe products and services revenue will continue to increase over the remaining quarters of 2017.
Grant revenue decreased to $85,331 in the 2017 first half from $92,904 in the prior year period, a decrease of $7,573 or 8%. We believe grant revenue will continue to increase over the remaining quarters of the year, as it did in Q2 2017.
Operating loss was $2,203,394 for the first six months of 2017, compared to a loss of $2,106,641 for the same period in 2016, an increase of $96,753 or 5%. This increase was primarily due to a significant increase in sales and marketing expenses during the first half of 2017 (an increase of $127,999, or 33%) combined with an increase in G&A expenses related to the hire of our CFO and an increase in investor relations and business development activities.
Net loss per common share was $(5.83) -- basic and diluted -- for the six months ended June 30, 2017 compared to a net loss per common share -- basic and diluted -- of $(6.11) for the same period in 2016.
Financial and Operational Highlights: Q2 2017
- April 17, 2017. The Company announced that Mr. Joseph L. Damasio, Jr. had joined PBI as its Vice President of Finance and Chief Financial Officer ("CFO") on April 10th.
- June 2, 2017. The Company announced a one-for-thirty reverse stock split.
- June 5, 2017. The Company announced that Professor Ruedi Aebersold, a world-renowned protein chemist and 2017 recipient of the prestigious Karger Medal (recognizing an individual "who has significantly contributed to the development of new bioanalytical methods") presented two Medal Lectures on state-of-the-art proteomics research during which he discussed PBI's PCT platform for sample preparation, a critical step in scientific analysis.
- June 6, 2017. The Company announced that its' recently released, next-generation PCT-based instrument (the Barocycler 2320EXTREME) was to be featured in multiple presentations at a major international scientific meeting (the American Society for Mass Spectrometry Annual Conference).
On August 15, 2017, PBI requested that the Securities and Exchange Commission ("SEC") consent to the withdrawal of the Company's Registration Statement on Form S-1 (File No. 333-215277), together with all exhibits. The Registration Statement was initially filed with the SEC on December 22, 2016.
Mr. Jeffrey N. Peterson, Chairman of PBI's Board of Directors, commented: "After much diligence, the PBI Board determined in the fall of 2016 that it would be in the best interests of PBI shareholders for the Company to raise approximately $12.5 million in an underwritten equity offering with a concomitant up-list to the NASDAQ Stock Market. The reverse stock split on June 5, 2017 was intended to help satisfy the minimum bid price requirement for initial listing on the NASDAQ Capital Market. However, due to market conditions, it was determined last week to not proceed with the offering. We believe that the offering is no longer in the best interests of shareholders."
"We made significant progress in several important areas during the second quarter," said Mr. Joseph L. Damasio, Jr., VP of Finance and CFO. "Specifically, (i) we worked closely with our contract manufacturer and raw materials vendors in an effort to reduce the costs of both the parts and assembly of our recently released, next generation Barocycler 2320EXTREME instrument; (ii) we renovated and moved into an expanded office, manufacturing, inventory, and storage space in our main South Easton facility; and (iii) we upgraded the systems and procedures used to analyze and track inventory, bill-of-materials, and costs-of-goods-sold. We also continued to show quarter-over-quarter growth in total revenue, products and services revenue, and instrument sales."
Mr. Richard T. Schumacher, President and CEO of PBI, commented: "In addition to the financial and logistical accomplishments addressed by Joe, we have made measurable progress in several key operational areas as well: (a) we completed the hire of our new, five-member field sales force -- all five hires have extensive experience in the sale of capital equipment to life sciences research labs nationwide. We expect all five sales directors to be fully trained and in the field between Labor Day and the end of September 2017, and that they will -- we believe -- have an increasing impact on sales, starting in Q3 2017; (b) we made measurable progress on our goal to upgrade the software on our Barocycler 2320EXT to GMP/GLP-compliance, which we believe will open up a significant market opportunity for the 2320EXT in the drug design, development, validation, manufacture, and quality control of biological drugs; and (c) we announced for the first time that we have filed a patent for 'ultra-shear technology,' which we believe could address a significant, unmet need in both the biopharma and 'clean label' food areas."
Earnings Call
The Company will hold an Earnings Conference Call at 4:30 PM EDT on Wednesday, August 16, 2017. To attend this teleconference via telephone, Dial-in: (877) 407-8031 (North America), (201) 689-8031 (International). Verbal Passcode: PBIO Second Quarter 2017 Financial Call. Replay Number (877) 481-4010; (919) 882-2331 (International). Replay ID Number: 19976. Teleconference Replay Available for 30 days.
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 270 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.
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 first six months ended June 30, 2017 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, 2016, 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
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
For the Three Months Ended For the Six Months Ended
June 30, June 30,
-------------------------- --------------------------
2017 2016 2017 2016
------------ ------------ ------------ ------------
Revenue:
Products, services,
other $ 480,400 $ 474,187 $ 1,006,398 $ 928,538
Grant revenue 59,972 36,776 85,331 92,904
------------ ------------ ------------ ------------
Total revenue 540,372 510,963 1,091,729 1,021,442
------------ ------------ ------------ ------------
Costs and expenses:
Cost of products and
services 287,299 243,105 523,296 464,804
Research and
development 241,783 321,428 505,239 656,698
Selling and
marketing 300,111 193,885 513,120 385,121
General and
administrative 915,470 813,242 1,753,468 1,621,460
------------ ------------ ------------ ------------
Total operating
costs and
expenses 1,744,663 1,571,660 3,295,123 3,128,083
------------ ------------ ------------ ------------
Operating loss (1,204,291) (1,060,697) (2,203,394) (2,106,641)
Other (expense)
income:
Interest expense,
net (1,983,112) (1,010,236) (3,509,744) (1,845,380)
Other expense (80) - (1,039) (912)
Impairment loss on
investment - - (6,069) -
Incentive warrants
for warrant
exercises (186,802) - (186,802) -
Change in fair value
of derivative
liabilities 2,790,525 3,032,762 (271,227) (1,035,628)
------------ ------------ ------------ ------------
Total other income
(expense) 620,531 2,022,526 (3,974,881) (2,881,920)
------------ ------------ ------------ ------------
Net (loss) income (583,760) 961,829 (6,178,275) (4,988,561)
------------ ------------ ------------ ------------
Net (loss) income
per share
attributable to
common stockholders
- basic $ (0.54) $ 1.11 $ (5.83) $ (6.11)
Net (loss) income
per share
attributable to
common stockholders
- diluted $ (0.54) $ (0.03) $ (5.83) $ (6.11)
Weighted average
common stock shares
outstanding used in
the basic net
(loss) income per
share calculation 1,077,529 865,128 1,059,250 816,035
Weighted average
common stock shares
outstanding used in
the diluted net
(loss) income per
share calculation 1,077,529 2,358,754 1,059,250 816,035
PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
June 30, 2017 December 31, 2016
----------------- -----------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 201,333 $ 138,363
Accounts receivable, net of $28,169
reserve at June 30, 2017 and December
31, 2016 564,048 281,320
Inventories, net of $20,000 reserve at
June 30, 2017 and December 31, 2016 1,131,488 905,284
Prepaid income taxes 7,405 7,405
Prepaid expenses and other current
assets 175,910 258,103
----------------- -----------------
Total current assets 2,080,184 1,590,475
Investment in available-for-sale
equity securities 25,986 25,865
Property and equipment, net 21,314 9,413
----------------- -----------------
TOTAL ASSETS $ 2,127,484 $ 1,625,753
================= =================
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
Accounts payable $ 746,087 $ 407,249
Accrued employee compensation 337,480 249,596
Accrued professional fees and other 1,354,615 956,884
Deferred revenue 180,397 159,654
Revolving note payable, net of
unamortized debt discounts of
$909,017 and $637,030, respectively 2,090,983 612,970
Related party convertible debt, net of
debt discount of $99,065 and $0,
respectively 192,069 -
Convertible debt, net of unamortized
debt discounts of $1,037,619 and
$2,235,839, respectively 5,633,751 4,005,702
Other debt, net of unamortized
discounts of $111,771 and $380,
respectively 1,769,376 238,157
Warrant derivative liability 1,950,681 1,685,108
Conversion option liability 907,386 951,059
----------------- -----------------
Total current liabilities 15,162,825 9,266,379
----------------- -----------------
LONG TERM LIABILITIES
Related party convertible debt, net of
debt discount of $0 and $165,611,
respectively - 125,523
Convertible debt, net of debt discount
of $0 and $740,628, respectively - 529,742
Deferred revenue 71,499 87,527
----------------- -----------------
TOTAL LIABILITIES 15,234,324 10,009,171
----------------- -----------------
STOCKHOLDERS' DEFICIT
Series D Convertible Preferred Stock,
$.01 par value; 850 shares
authorized; 300 shares issued and
outstanding on June 30, 2017 and
December 31, 2016, 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 June 30, 2017 and
December 31, 2016, respectively 866 866
Series H Convertible Preferred Stock,
$.01 par value; 10,000 shares
authorized; 10,000 shares issued and
outstanding on June 30, 2017 and
December 31, 2016, respectively 100 100
Series H2 Convertible Preferred Stock,
$.01 par value; 21 shares authorized;
21 shares issued and outstanding on
June 30, 2017 and December 31, 2016,
respectively - -
Series J Convertible Preferred Stock,
$.01 par value; 6,250 shares
authorized; 3,521 shares issued and
outstanding on June 30, 2017 and
December 31, 2016, respectively 35 35
Series K Convertible Preferred Stock,
$.01 par value; 15,000 shares
authorized; 6,816 shares issued and
outstanding on June 30, 2017 and
December 31, 2016, respectively 68 68
Common stock, $.01 par value;
100,000,000 shares authorized;
1,101,884 and 1,033,328 shares issued
and outstanding on June 30, 2017 and
December 31, 2016, respectively 11,019 10,333
Warrants to acquire common stock 7,082,460 6,325,102
Additional paid-in capital 28,234,884 27,544,265
Accumulated other comprehensive income 6,190 -
Accumulated deficit (48,442,465) (42,264,190)
----------------- -----------------
Total stockholders' deficit (13,106,840) (8,383,418)
----------------- -----------------
TOTAL LIABILITIES AND STOCKHOLDERS'
DEFICIT $ 2,127,484 $ 1,625,753
================= =================
Investor Contacts:
Richard T. Schumacher
President & CEO
(508) 230-1828 (T)
Joseph L. Damasio
VP of Finance and CFO
(508) 230-1828 (T)
Jeffrey N. Peterson
Chairman of the Board
(650) 812-8121 (T)
