SOURCE: BioForce Nanosciences Holdings, Inc.

November 14, 2008 10:33 ET

BioForce Nanosciences Reports Record Third Quarter Results

New Scientific Collaborations and ViriChip™ Funding Also Announced

AMES, IA--(Marketwire - November 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 nine month periods ended September 30, 2008.

Third Quarter Highlights:

--  Net revenues were $240,865 for the third quarter of 2008, the highest
    third quarter revenues in the Company's history, and a 572% increase from
    net revenues of $35,842 for the third quarter of 2007.
    
--  Gross profit was $103,705 for the third quarter of 2008, the highest
    third quarter gross profit in the Company's history.
    
--  Net loss on common stock was $669,645 ($0.03 per fully diluted share)
    for the third quarter of 2008, as compared to a net loss on common stock of
    $1,403,289 ($0.06 per fully diluted share) for the third quarter of 2007.
    

Nine Month Highlights:

--  Net revenues were $856,155 for the first nine months of 2008, the
    highest nine month revenues in the Company's history, and a 48% increase
    from net revenues of $579,408 for the first nine months of 2007.
    
--  Gross profit was $343,362 for the first nine months of 2008, the
    highest first nine month gross profit in the Company's history, and a 58%
    increase from gross profit of $145,490 for the first nine months of 2007.
    
--  Net loss on common stock was $2,320,528 ($0.09 per fully diluted
    share) for the first nine months of 2008, as compared to a net loss on
    common stock of $3,412,164 ($0.14 per fully diluted share) for the first
    nine months of 2007.
    

Operations Review:

Kerry Frey, President and Chief Executive Officer of BioForce, said, "The news continues to be good from an operations perspective. During the third quarter we entered into scientific collaboration agreements with three major universities, including the previously announced relationship with UAlbany Nano College, and agreements with Arizona State University and Iowa State University. In addition, yesterday's announcement of our scientific collaboration agreement with University Pierre & Marie Curie in Paris continues the trend of significant research institutions lining up to participate with us in breakthrough projects in areas such as stem cell research, neural regeneration and live cell assays. Under these collaboration agreements we will be working closely with biologists at the academic institutions to develop new applications for our Nano eNabler™ and Cyto eNabler™ systems.

"From a financing perspective, we announced in September that funding for our ViriChip™ pathogen detection system was included in the Senate version of the 2009 Department of Defense Appropriations Bill. I am delighted to announce that the final 2009 Department of Defense Appropriations Act, signed by President Bush on September 30, 2008, included $1,600,000 of funding for this project. We are pleased that we will have the opportunity to move forward in 2009 with this exciting scientific application based upon the capabilities of our Nano eNabler™ molecular printer.

"We sold three Nano eNabler systems in the third quarter, with those sales generating the majority of our revenues for the quarter. One of those sales was to our distributor in Australia, their first order for a Nano eNabler system. In addition, our revenue growth is aided by the record demand for our ProCleaner™ sterilization instrument that we have experienced thus far in 2008."

Greg Brown, BioForce's Executive Vice President and Chief Financial Officer, commented, "Our results for the third quarter and nine months ended September 30, 2008 were records in terms of revenues, gross profit and net income. We continue to maintain tight cost controls, and remain intent on reaching profitability. In addition to the activities mentioned by Kerry, our third quarter licensing transaction with Aspera Corp. will play a significant part in accelerating our path to profitability via reduced internal costs of research and development.

"We were pleased to complete a $300,000 convertible debt financing during the third quarter with our largest shareholder, FCPR SGAM AI Biotechnology Fund. Their support from both a financial and business perspective is appreciated. We continue to require additional financing in order to support our operations until such time as we have reached the breakeven point. There are multiple parties with whom we are working towards the goal of obtaining sufficient financing to continue operations and press on towards profitability, growth in the adoption of our products within the bio-nanotechnology community, and the development of additional applications of our technology."

For further information about this release please contact Greg Brown, Chief Financial Officer of BioForce at (515) 233-8333 ext. 118, or Rich Kaiser, Investor Relations at (800) 631-8127.

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; patterning 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 Nine Months Ended
                           September 30,              September 30,
                        2008          2007         2008           2007
                    ------------  ------------  ------------  ------------

REVENUES            $    240,865  $     35,842  $    856,155  $    579,408

COST OF GOODS SOLD       137,160        95,557       512,793       433,918
                    ------------  ------------  ------------  ------------

       Gross margin      103,705       (59,715)      343,362       145,490

OPERATING EXPENSES
   Research and
    development          294,034       326,354       898,833       897,202
   Sales and
    marketing            221,212       289,610       806,218       919,015
   General and
    administrative       334,962       628,654     1,130,658     1,960,875
   Reimbursement of
    grant expenses      (101,934)     (125,195)     (267,181)     (415,415)
                    ------------  ------------  ------------  ------------
       Total operating
        expenses         748,274     1,119,423     2,568,528     3,361,677
                    ------------  ------------  ------------  ------------

       Loss from
        operations
        before
        other income
        (expense)       (644,569)   (1,179,138)   (2,225,166)   (3,216,187)

 OTHER INCOME
  (EXPENSE)
   Interest and
    other income             264         6,262         8,292        41,236
   Debt forgiveness
    income                     -       164,250             -       164,250
   Abandoned stock
    offering costs             -      (256,500)            -      (256,500)
   Gain on equipment
    Sale                  44,434             -        44,434             -
   Interest expense      (59,774)       (3,719)     (118,088)      (10,519)
                    ------------  ------------  ------------  ------------
       Total other
        Income
        (expense)        (15,076)      (89,707)      (65,362)      (61,533)
                    ------------  ------------  ------------  ------------

       Loss before
        income tax      (659,645)   (1,268,845)   (2,290,528)   (3,277,720)

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

       Net loss     $   (659,645) $ (1,268,845) $ (2,290,528) $ (3,277,720)

DIVIDENDS ON
 PREFERRED STOCK          10,000       134,444        30,000       134,444
                    ------------  ------------  ------------  ------------

       Net loss on
        common
        stock       $   (669,645) $ (1,403,289) $ (2,320,528) $ (3,412,164)
                    ============  ============  ============  ============

BASIC AND DILUTED
 LOSS PER SHARE     $      (0.03) $      (0.06) $      (0.09) $      (0.14)
                    ============  ============  ============  ============

WEIGHTED AVERAGE
 NUMBER OF SHARES
 OUTSTANDING          25,154,082    24,099,950    25,128,272    24,083,466
                    ============  ============  ============  ============





                  BIOFORCE NANOSCIENCES HOLDINGS, INC.
                      CONSOLIDATED BALANCE SHEETS


                    ASSETS
                                                    09/30/08     12/31/07
                                                  -----------  -----------
                                                  (unaudited)

CURRENT ASSETS
   Cash and cash equivalents                      $    12,177  $   268,930
   Accounts receivable - trade, net                   269,092      313,756
   Inventory                                          769,318    1,046,683
   Prepaid expenses and other assets                   76,556      146,007
                                                  -----------  -----------

       Total current assets                         1,127,143    1,775,376
                                                  -----------  -----------

PROPERTY AND EQUIPMENT
   Computer equipment                                  79,774      113,963
   Leasehold improvements                             380,000      380,000
   Scientific and laboratory equipment                663,978      889,368
   Office furniture and fixtures                       78,534       89,760
                                                  -----------  -----------
       Total                                        1,202,286    1,473,091
   Less accumulated depreciation                      827,325      889,469
                                                  -----------  -----------
       Net property and equipment                     374,961      583,622
                                                  -----------  -----------

INTANGIBLE ASSETS
   Patent costs, net of accumulated amortization
    of $102,576 and $78,502, respectively             571,714      641,017
   Trademark costs, net of accumulated
    amortization of $21,885 and $15,471,
    respectively                                      103,095       90,908
                                                  -----------  -----------
       Total intangible assets                        674,809      731,925
                                                  -----------  -----------

OTHER ASSETS
   Long-term receivables                               20,500            -
   Investment in Aspera Corp.                              23            -
                                                  -----------  -----------
       Total other assets                              20,523            -
                                                  -----------  -----------

       TOTAL ASSETS                               $ 2,197,436  $ 3,090,923
                                                  ===========  ===========


      LIABILITIES AND STOCKHOLDERS' EQUITY
                                                    09/30/08     12/31/07
                                                  -----------  -----------
                                                  (unaudited)

CURRENT LIABILITIES
   Accounts payable                               $   505,711  $   305,314
   Accrued expenses                                   320,868      241,650
   Note payable - accounts receivable factoring       150,605            -
   Accrued dividends on preferred stock                10,000       13,333
   Deferred revenue                                    32,396       53,754
   8% convertible secured promissory notes            488,142            -
   Current portion of long-term notes payable          80,023       89,180
                                                  -----------  -----------
       Total current liabilities                    1,587,745      703,231

 LONG-TERM DEBT, NET                                  115,160      154,860
                                                  -----------  -----------

       Total liabilities                            1,702,905      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 $510,000; 2007: liquidation value
     $513,333                                           1,000        1,000
   Common stock - 2008 and 2007: $0.001 par
    value, 100,000,000 shares authorized,
    2008: 25,160,845 shares issued and
    outstanding; 2007: 25,099,950 shares
    issued and outstanding                             25,161       25,100
   Additional paid-in capital                      16,999,321   16,341,714
   Deferred stock offering costs                      (25,000)           -
   Accumulated deficit                            (16,505,951) (14,134,982)
                                                  -----------  -----------
       Total stockholders' equity                     494,531    2,232,832
                                                  -----------  -----------

       TOTAL LIABILITIES AND
         STOCKHOLDERS' EQUITY                     $ 2,197,436  $ 3,090,923
                                                  ===========  ===========

Contact Information

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

    Investor Relations:
    Yes International
    Rich Kaiser
    800-631-8127