SAN JOSE, Calif., Aug. 14 /PRNewswire-FirstCall/ -- Human Pheromone Sciences, Inc. (BULLETIN BOARD: EROX) ("HPS" or "the Company") today announced results for the second quarter and six months ended June 30, 2008. For the three month period ending June 30, 2008, net revenues of $236,000 represented a 28% decrease from the revenues of $329,000 in the prior year period, and resulted in a net loss of $88,000 ($.02 per share) as compared with net income of $15,000 ($.00 per share) for the same period of 2007. For the six month period ending June 30, 2008, net revenues of $502,000 were 24% lower than the previous year's $663,000, resulting in a net loss of $151,000 ($0.04 per share) as compared with net income of $39,000 ($0.01 per share) in the first six months of 2007. At June 30, 2008, the Company reflected cash balance of $1,237,000 compared with $1,437,000 at December 31, 2007, a $200,000 reduction for the six months of the current year as compared to a decline of $264,000 during the six months ending June 30, 2007. The cash use was within the expectations of the Company. There was no bank indebtedness at either date.
According to a Company spokesperson, "The results are lower than the Company anticipated as the completion of our licensee's product development processes has taken longer than envisioned. While this delay is disappointing in the short-term, we are very encouraged that intense consumer focus groups have provided more solid data for our licensees, which should benefit the Company and our licensees when the licensees ultimately launch their products containing our technology. We would rather be a partner in a well-planned and executed product introduction, than a timelier but less effective consumer launch. Fortunately, additional licensing agreements, especially, the contract signed with the international chemical and consumer giant Schwarzkopf and Henkel, is providing higher than expected earnings for us in the current year, which has somewhat offset the delay in product launches by earlier licensees," the spokesperson indicated.
Human Pheromone Sciences, Inc. is a technology-based company, whose proof-of concept products included prestige-priced fragrances and toiletries and environmental products sold under the Natural Attraction(R), REALM(R), innerREALM(R) and EROX(R) trademarks. These products contain mood-enhancing compounds, whose efficacy has been validated at leading universities around the world, and whose use is covered under United States and foreign patents. The Company is also involved in research and product development efforts on new compounds that have been previously identified as stimulating the emotional centers of the human brain. Further information is available on line at http://www.erox.com/.
The statements in this news release may contain forward-looking statements that involve risks and uncertainties that could cause results to differ from predicted results. Further information on factors that could affect the Company's results is detailed in the Company's annual report to shareholders on Form 10-KSB for the year ended December 31, 2007, and Form 10-Q for the quarter ended June 30, 2008, as filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements.
Tables follow HUMAN PHEROMONE SCIENCES, INC. Condensed Balance Sheets (Dollars in thousands) June 30, December 31, 2008 2007 (Unaudited) Assets Cash and cash equivalents $1,237 $1,437 Accounts receivable 72 194 Inventories 34 25 Other current assets 34 40 Property and equipment, net 2 3 Total $1,379 $1,699 Liabilities and shareholders' equity Accounts payable $27 $28 Other current liabilities 124 141 Deferred income - current 446 518 Deferred income - non-current 435 566 Common stock 21,015 20,963 Accumulated deficit (20,668) (20,517) Total $1,379 $1,699 HUMAN PHEROMONE SCIENCES, INC. Condensed Statements of Operations (Unaudited) (Dollars in thousands, except per-share data) Three months Six months ended June 30, ended June 30, 2008 2007 2008 2007 Net revenue $236 $329 $502 $663 Cost of goods sold 73 76 154 183 Research and development 9 16 23 28 Selling, general and administrative 249 238 493 446 Income (loss) from operations (95) (1) (168) 6 Other income 7 16 18 34 Provision for income taxes - - 1 1 Net income (loss) $(88) $15 $(151) $39 Income (loss) per share, basic: $(0.02) $0.00 $(0.04) $0.01 Income (loss) per share, fully diluted: $(0.02) $0.00 $(0.04) $0.01 Weighted average common shares outstanding - Basic 4,152 4,152 4,152 4,152 Weighted average common shares outstanding - Fully diluted 4,152 4,805 4,152 4,794
Net income (loss) per share is based on the weighted average number of common shares and common equivalents outstanding during each period. Certain common stock equivalents are excluded when their effect would be anti-dilutive.
