SAN JOSE, Calif., March 27 /PRNewswire-FirstCall/ -- Human Pheromone Sciences, Inc. (BULLETIN BOARD: EROX) ("HPS" or "the Company") today announced results for the three months and the year ended December 31, 2008. For the three months ended December 31, 2008, net revenue was $228,000, representing a 41% decrease from revenues of $389,000 in the prior year period, and resulted in net loss of $(58,000) ($(0.01) per share) as compared with net income of $38,000 ($0.01 per share) for the same period in 2007. For the full year, net revenues of $992,000, were 23% less than revenues of $1,291,000 generated in the prior year. The net loss in the current year of $239,000 ($0.06 per share) was $223,000 higher than the $16,000 loss ($.00 per share) recorded for the full year of 2007. Net cash utilized for the full year of 2008 was $530,000, less than a 5% increase from the $501,000 utilized in the year 2007.
"The revenue reduction in the fourth quarter and the full year was attributable to a significant reduction in purchases by our largest and first multinational licensee of pheromones. Over the past 10 years we have been principally dependent on purchases by this customer for revenue generation. Total product revenues decreased by approximately 50% from this customer in 2008," a spokesperson noted.
"Over the past couple of years, we developed a multi-faceted program to be less dependent on any one customer, seek additional licensees in the U.S. and abroad for our original pheromone technologies, complete scientific validation on our most promising mood-enhancing compound and present the results to consumer marketers. With respect to the first strategic imperative, during 2008, licensing revenue increased to $604,000, a 15% growth from the prior year, primarily attributable to new agreement with a multinational corporation. Discussions are ongoing with potential licensees and we are also in discussions to broaden the channels of distribution for our initial pheromone compounds. With respect to the second area of focus, the discovery and patented protection of new mood-enhancing compounds, the Company filed a final U.S. Patent Application and a European filing for a compound that has shown significantly enhanced positive feelings and emotions in both men and women. We are currently presenting the results of the human studies on ER 303 to several multinational consumer products companies. In addition, the Company completed initial toxicology testing and initial human response studies on another compound for women, and we have identified and selected six additional compounds that have shown promise in initial laboratory studies."
"We believe that focus on these basic strategic imperatives will lessen our dependence on the purchasing pattern of one large customer, and ensure balanced growth in revenue and an expanded technology and customer base, without major capital investment," the spokesman further stated.
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 REALM(R), innerREALM(R) and EROX(R) trademarks. These products, and its Natural Attraction(R) product line, contain mood-enhancing synthesized human pheromones covered under U.S. and foreign patents. The Company also licenses its proprietary technology to other companies for inclusion in their products for direct sale to the consumer. Scientific and consumer studies have shown that the Company's human pheromones positively impact on the moods, attitudes and emotions of wearers. Further information is available online at http://www.erox.com/.
The statements in this news release may contain forward-looking statements that involve risks and uncertainties that could cause actual 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-K for the year ended December 31, 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.
HUMAN PHEROMONE SCIENCES, INC. Condensed Balance Sheets (Dollars in thousands) December 31, December 31, 2008 2007 Assets Cash and cash equivalents $ 907 $ 1,437 Accounts receivable 52 194 Inventories, net 39 25 Other current assets 58 40 Property and equipment, net 2 3 ------------- --------------- Total $ 1,058 $ 1,699 ============= =============== Liabilities and Shareholders' Equity Accounts payable $ 19 $ 28 Other current liabilities 131 141 Deferred income - current 297 518 Deferred income - non-current 324 566 Common stock 21,043 20,963 Accumulated deficit (20,756) (20,517) ------------- --------------- Total $ 1,058 $ 1,699 ============= =============== HUMAN PHEROMONE SCIENCES, INC. Condensed Statements of Operations (Dollars in thousands, except per-share data) Three months Year ended December 31, ended December 31, 2008 2007 2008 2007 Net revenues $ 228 $ 389 $ 992 $ 1,291 Cost of goods sold 82 99 322 376 Research and development 14 11 47 49 Selling, general and administrative 193 256 889 942 ------ ------ ------ -------- Income (loss) from operations (61) 23 (266) (76) Other income 5 15 30 65 ------ ------ ------ -------- Income (loss) before provision for income taxes (56) 38 (236) (11) Provision for Income taxes 2 - 3 5 ------ ------ ------ -------- Net income (loss) $ (58) $ 38 $ (239) $ (16) ====== ====== ====== ======== Net income (loss) per share - Basic $(0.01) $ 0.01 $(0.06) $ (0.00) Fully diluted $(0.01) $ 0.01 $(0.06) $ (0.00) Weighted average number of shares - Basic 4,152 4,152 4,152 4,152 Fully diluted 4,152 4,852 4,152 4,152 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.
