SOURCE: BioForce Nanosciences Holdings, Inc.

August 14, 2008 16:15 ET

BioForce Nanosciences Reports Record Second Quarter Results

Expansion of Distributor Network Sales and Scientific Collaborations Also Announced

AMES, IA--(Marketwire - August 14, 2008) - BioForce Nanosciences Holdings, Inc. (OTCBB: BFNH), a producer of integrated biological and mechanical systems for life science researchers at the micro and nano scales, today announced record revenue and gross profit for the three and six month periods ended June 30, 2008.

Second Quarter Highlights:

--  Net revenues were $211,723 for the second quarter of 2008, the highest
    second quarter revenues in the Company's history, and a 15% increase from
    net revenues of $184,811 for the second quarter of 2007.
    
--  Gross profit was $50,315 for the second quarter of 2008, the highest
    second quarter gross profit in the Company's history, and a 73% increase
    from gross profit of $29,056 for the second quarter of 2007.
    
--  Net loss on common stock was $884,721 ($0.04 per fully diluted share)
    for the second quarter of 2008, as compared to a net loss on common stock
    of $1,085,558 ($0.05 per fully diluted share) for the second quarter of
    2007.
    

Six Month Highlights:

--  Net revenues were $615,290 for the first half of 2008, the highest
    first half revenues in the Company's history, and a 13% increase from net
    revenues of $543,566 for the first half of 2007.
    
--  Gross profit was $239,657 for the first half of 2008, the highest
    first half gross profit in the Company's history, and a 17% increase from
    gross profit of $205,205 for the first half of 2007.
    
--  Net loss on common stock was $1,650,883 ($0.07 per fully diluted
    share) for the first half of 2008, as compared to a net loss on common
    stock of $2,008,875 ($0.08 per fully diluted share) for the first half of
    2007.
    

Operations Review:

Kerry Frey, President and Chief Executive Officer of BioForce, said, "We continue to make progress on multiple fronts in the effort to expand upon our existing presence in the academic research community, and to increase our visibility within the commercial market. During the second quarter we initiated the relationship with our domestic product distributor, NanoandMore USA, Inc. That relationship resulted in one Nano eNabler™ system sale during the second quarter, and we anticipate that the sales resulting from this relationship will grow as they are able to introduce our exciting products into their customer base and to new sales prospects in both academia and industry.

"During the third quarter our distributor in Australia placed their first order for a Nano eNabler™ system. This is the sixth distributor who has delivered revenue to BioForce, including locations in the United Kingdom, Continental Europe, Japan, Korea, Australia and the United States. We continue to believe that we have developed a strong international network of distributors that will serve as an effective means of distribution for our products.

"The scientific activity of our customers, and the developing applications for our products in the areas of stem cell research, neural regeneration and live cell assays, give me confidence that there are significant sales opportunities in multiple sectors. On the scientific front, I am pleased to announce that we have entered into scientific collaboration agreements with two academic research institutions, with details to be disclosed at a later date. Under these collaboration agreements we will be working closely with biologists at both institutions to develop new applications for our Nano eNabler™ and Cyto eNabler™ systems. It is our anticipation that we will enter into additional agreements of this type in the future, and that they will lead to the development of exciting new products and applications, and ultimately increased revenues and profits for BioForce."

Greg Brown, BioForce's Chief Financial Officer, commented, "While our results for the second quarter and first half of 2008 were records in terms of revenues, gross profit and net income, we are not satisfied. Our focus remains the achievement of profitability, and we are not yet there. The activities that Kerry mentioned, which are focused upon increasing revenues, will certainly move us toward that goal. In addition, we have taken steps, including the recently announced licensing transaction with Aspera Corp. and our move to a lower fixed cost, distributor-based domestic sales model, to reduce our expenses. There was a slight reflection of those cost reductions in our second quarter results, but they will be more fully reflected in future quarters.

"We were pleased to complete a $300,000 convertible debt financing during the second quarter, and as previously announced completed a second convertible debt financing, also with proceeds of $300,000, in July. Additional financing is required, and we continue to work with multiple parties in this regard."

About BioForce Nanosciences Holdings, Inc.

BioForce Nanosciences creates products and solutions for the life sciences by integrating biological and mechanical systems at the micro and nano scales. BioForce's flagship product, the Nano eNabler™ molecular printer, gives the Company and its customers a platform for development and discovery by printing tiny domains of biological materials on surfaces with nanometer spatial precision. BioForce technology is being used in areas such as biosensor functionalization; pattering and cell adhesion; and the printing of proteins to guide neural cell growth. For more information, visit http://www.bioforcenano.com or call 515-233-8333.

This news release contains forward-looking information that may be affected by certain risks and uncertainties, including those risks and uncertainties described in BioForce Nanosciences' most recent filings with the Securities and Exchange Commission. BioForce Nanosciences' actual results could differ materially from such forward-looking statements. BioForce assumes no duty to update these statements at any future date.

                   BIOFORCE NANOSCIENCES HOLDINGS, INC.
                  CONSOLIDATED STATEMENTS OF OPERATIONS
                                (unaudited)


                    For the Three Months Ended   For the Six Months Ended
                             June 30,                    June 30,
                        2008          2007          2008          2007
                    ------------  ------------  ------------  ------------

 REVENUES           $    211,723  $    184,811  $    615,290  $    543,566

 COST OF GOODS SOLD      161,408       155,755       375,633       338,361
                    ------------  ------------  ------------  ------------

     Gross margin         50,315        29,056       239,657       205,205

 OPERATING EXPENSES
   Research and
    development          306,309       292,048       604,799       570,848
   Sales and
    marketing            295,311       323,397       585,006       629,405
   General and
    administrative       352,721       673,513       795,696     1,332,221
   Reimbursement of
    grant expenses       (65,352)     (165,297)     (165,247)     (290,220)
                    ------------  ------------  ------------  ------------
     Total operating
      expenses           888,989     1,123,661     1,820,254     2,242,254
                    ------------  ------------  ------------  ------------

     Loss from
      operations
      before other
      income
      (expense)         (838,674)   (1,094,605)   (1,580,597)   (2,037,049)

 OTHER INCOME
  (EXPENSE)
   Interest and
    other income           6,488        12,838         8,028        34,974
   Interest expense      (52,535)       (3,791)      (58,314)       (6,800)
                    ------------  ------------  ------------  ------------
     Total other
      income
      (expense)          (46,047)        9,047       (50,286)       28,174
                    ------------  ------------  ------------  ------------

     Loss before
      income tax        (884,721)   (1,085,558)   (1,630,883)   (2,008,875)

 INCOME TAX EXPENSE            -             -             -             -
                    ------------  ------------  ------------  ------------

     Net loss           (884,721)   (1,085,558)   (1,630,883)   (2,008,875)

 DIVIDENDS ON
  PREFERRED STOCK         10,000             -        20,000             -
                    ------------  ------------  ------------  ------------

     Net loss on
      common stock  $   (894,721) $ (1,085,558) $ (1,650,883) $ (2,008,875)
                    ============  ============  ============  ============

 BASIC AND DILUTED
  LOSS PER SHARE    $      (0.04) $      (0.05) $      (0.07) $      (0.08)
                    ============  ============  ============  ============

 WEIGHTED AVERAGE
  NUMBER OF SHARES
  OUTSTANDING         25,116,401    24,099,950    25,115,226    24,075,088
                    ============  ============  ============  ============




                   BIOFORCE NANOSCIENCES HOLDINGS, INC.
                        CONSOLIDATED BALANCE SHEETS



                                 ASSETS
                                                    06/30/08     12/31/07
                                                  -----------  -----------
                                                  (unaudited)

 CURRENT ASSETS
   Cash and cash equivalents                      $    55,804  $   268,930
   Accounts receivable - trade, net                    93,667      313,756
   Account receivable - invoice factoring              34,112            -
   Inventory                                          818,861    1,046,683
   Prepaid expenses and other assets                   55,287      146,007
                                                  -----------  -----------

     Total current assets                           1,057,731    1,775,376
                                                  -----------  -----------

 PROPERTY AND EQUIPMENT
   Computer equipment                                  89,826      113,963
   Leasehold improvements                             380,000      380,000
   Scientific and laboratory equipment                897,882      889,368
   Office furniture and fixtures                       89,760       89,760
                                                  -----------  -----------
     Total                                          1,457,468    1,473,091
   Less accumulated depreciation                      991,997      889,469
                                                  -----------  -----------

     Net property and equipment                       465,471      583,622
                                                  -----------  -----------

 INTANGIBLE ASSETS
   Patent costs, net of accumulated amortization
    of $93,900 and $78,502, respectively              681,582      641,017
   Trademark costs, net of accumulated
    amortization of $19,705 and $15,471,
    respectively                                      101,372       90,908
                                                  -----------  -----------

 Total intangible assets                              782,954      731,925
                                                  -----------  -----------


     TOTAL ASSETS                                 $ 2,306,156  $ 3,090,923
                                                  ===========  ===========





                LIABILITIES AND STOCKHOLDERS' EQUITY
                                                   06/30/08     12/31/07
                                                  -----------  -----------
                                                  (unaudited)

 CURRENT LIABILITIES
   Accounts payable                               $   542,802  $   305,314
   Accrued expenses                                   305,522      241,650
   Deferred revenue                                    44,067       53,754
   Recourse obligation - invoice factoring              5,002            -
   Accrued dividends on Series A Convertible
    Preferred Stock                                    20,000       13,333
   8% convertible secured promissory notes            218,383            -
   Current portion of notes payable                    57,250       89,180
                                                  -----------  -----------
     Total current liabilities                      1,193,026      703,231

 LONG-TERM DEBT, NET                                  137,933      154,860
                                                  -----------  -----------

     Total liabilities                              1,330,959      858,091
                                                  -----------  -----------

 COMMITMENTS and CONTINGENCIES

 STOCKHOLDERS' EQUITY
   Preferred stock - 2008 and 2007: $0.001 par
    value, 10,000,000 shares authorized to be
    issued in various classes Series A Convertible
    Preferred Stock - 2008 and 2007: $0.001 par
    value, 1,100,000 shares authorized, 1,000,000
    shares issued and outstanding; 2008:
    liquidation value $520,000; 2007: liquidation
    value $513,333                                      1,000        1,000
   Common stock - 2008 and 2007: $0.001 par value,
    100,000,000 shares authorized; 2008:
    25,116,401 shares issued and outstanding;
    2007: 25,099,950 shares issued and
    outstanding                                        25,116       25,100
   Deferred revenue
   Additional paid-in capital                      16,784,083   16,341,714
   Deferred stock offering costs                      (20,000)           -
   Accumulated deficit                            (15,815,002) (14,134,982)
                                                  -----------  -----------

     Total stockholders' equity                       975,197    2,232,832
                                                  -----------  -----------

     TOTAL LIABILITIES AND
     STOCKHOLDERS' EQUITY                         $ 2,306,156  $ 3,090,923
                                                  ===========  ===========

Contact Information

  • Contact:

    Gregory D. Brown
    Chief Financial Officer
    515-233-8333 ext# 118
    Email Contact