SOURCE: PRESSURE BIOSCIENCES, INC.

Pressure BioSciences, Inc.

May 16, 2017 11:05 ET

Pressure BioSciences, Inc. Reports First Quarter 2017 Financial Results and Provides Business Update

Total Revenue, Products & Services Revenue, Consumable Sales, & Gross Margins All Increased While Operating Loss Decreased, Quarter-over-Quarter; CFO Hire, CE Marking Achievement, Sales & Marketing Expansion Expected to Help Drive Revenue, Expand Customer Base, and Increase Shareholder Value Throughout FY2017

SOUTH EASTON, MA--(Marketwired - May 16, 2017) - 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 first quarter of 2017, provided a business update, and offered limited guidance on its growth plan for FY2017.

Financial Results: Q1 2017 vs. Q1 2016

Products and services revenue increased 16% to $525,998 for Q1 2017 as compared to $454,350 for Q1 2016. This increase was primarily attributable to an increase of 19% in the sale of instrument systems, from $332,016 in Q1 2016 to $396,095 in the same quarter of 2017. Sales of consumables also increased during these same periods, from $44,234 in Q1 2016 to $63,264 in Q1 2017, an increase of 43%. Grant revenue decreased from $56,128 in Q1 2016 to $25,359 in Q1 2017. We believe grant revenue will increase over the remaining quarters in 2017.

Despite this decrease in grant revenue, total revenue increased to $551,357 for the three months ended March 31, 2017 as compared to $510,478 during the three months ended March 31, 2016, an increase of $40,878 or 8%. This increase was attributable to increases in the sales of our products and services.

Operating loss decreased to $999,103 in Q1 2017 from $1,045,945 for the same period in 2016, a reduction of $46,842 or 4%. This decrease was primarily due to reduced R&D expenses combined with increased sales of product and services.

Loss per common share - basic and diluted - was $0.18 for Q1 2017 compared to a loss per common share of $0.26 for the same period in 2016. 

Financial and Operational Highlights: Q1 2017

  • February 2, 2017. PBI announced it had achieved CE Marking for the Barocycler 2320EXTREME (the "Barocycler 2320EXT"), the Company's recently released, next-generation PCT-based sample preparation instrument. With the achievement of CE Marking, the Company can now market and sell the Barocycler 2320EXT in all 31 countries comprising the European Economic Area.
  • March 1, 2017. The Company announced that the Barocycler 2320EXT had been named the "Best New Instrument for Sample Preparation 2017" by Corporate America News as part of the publication's 2017 North American Excellence Awards.
  • March 23, 2017. The Company announced it had significantly bolstered its marketing and sales capabilities by contracting with EKG Sales Associates, a lead generation company, and by hiring two of the Company's planned four field sales directors.

Mr. Joseph L. Damasio, Jr., VP of Finance and CFO, said: "As reported, we continued to show quarter-over-quarter revenue growth, especially in the important area of products and services. We also increased gross margins during the period. What makes these accomplishments even more rewarding was their achievement during a quarter in which we were also able to reduce operating expenses and operating loss. We believe the financial results of the first quarter 2017 have set us up well to significantly drive revenue and business growth for the rest of the fiscal 2017 year, and beyond." 

Mr. Richard T. Schumacher, President and CEO of PBI, commented: "Although pleased with the financial results of the first quarter, we are even more pleased with our operational accomplishments. During the first quarter, we made significant progress on our clearly-defined 2017 goals to (i) develop a clear and sustainable path to profitability and financial self-sufficiency; (ii) enhance and expand our current sales and marketing capabilities with the hiring of a minimum of four field sales directors, plus an external lead-generation service and internal operational personnel; and (iii) achieve an up-list to the NASDAQ Stock Exchange by or before the end of the 2017 second quarter. We believe that continued progress on or the achievement of these goals will position PBI to be a stronger, more valuable company, which in turn should increase shareholder value, which is our ultimate goal."

Earnings Call
The Company will hold an Earnings Conference Call at 4:30 PM EDT on Tuesday, May 16, 2017. To attend this teleconference via telephone, Dial-in: (877) 407-8031 (North America), (201) 689-8031 (International). Verbal Passcode: PBIO First Quarter 2017 Financial Call. Replay Number (877) 481-4010; (919) 882-2331 (International). Replay ID Number: 10404. 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 250 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 the year ended December 31, 2016 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 

Please visit us on Facebook, LinkedIn, and Twitter. 

 
PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY
 CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
 
    For the Three Months Ended
March 31,
 
    2017     2016  
Revenue:                
Products, services, other   $ 525,998     $ 454,350  
Grant revenue     25,359       56,128  
  Total revenue     551,357       510,478  
                 
Costs and expenses:                
Cost of products and services     235,997       221,699  
Research and development     263,456       335,270  
Selling and marketing     213,009       191,236  
General and administrative     837,998       808,218  
  Total operating costs and expenses     1,550,460       1,556,423  
                 
  Operating loss     (999,103 )     (1,045,945 )
                 
Other (expense) income:                
Interest expense, net     (1,526,632 )     (835,144 )
Other expense     (959 )     (912 )
Impairment loss on investment     (6,069 )     -  
Change in fair value of derivative liabilities     (3,061,752 )     (4,068,390 )
  Total other (expense) income     (4,595,412 )     (4,904,446 )
                 
Net loss     (5,594,515 )     (5,950,391 )
                 
Net loss per common share - basic and diluted   $ (0.18 )   $ (0.26 )
                 
Weighted average common stock shares outstanding - basic and diluted     31,223,061       23,198,360  
 
 
 
PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
 (UNAUDITED)
 
    March 31, 2017     December 31, 2016  
ASSETS                
CURRENT ASSETS                
Cash and cash equivalents   $ 121,438     $ 138,363  
Accounts receivable, net of $28,169 reserve at March 31, 2017 and December 31, 2016     518,727       281,320  
Inventories, net of $20,000 reserve at March 31, 2017 and December 31, 2016     940,383       905,284  
Prepaid income taxes     7,405       7,405  
Prepaid expenses and other current assets     207,745       258,103  
  Total current assets     1,795,698       1,590,475  
Investment in available-for-sale equity securities     19,796       25,865  
Property and equipment, net     22,571       9,413  
TOTAL ASSETS   $ 1,838,065     $ 1,625,753  
                 
LIABILITIES AND STOCKHOLDERS' DEFICIT                
CURRENT LIABILITIES                
Accounts payable   $ 672,729     $ 407,249  
Accrued employee compensation     250,039       249,596  
Accrued professional fees and other     990,425       956,884  
Deferred revenue     145,918       159,654  
Revolving note payable, net of unamortized debt discounts of $839,969 and $637,030, respectively     1,410,031       612,970  
Related party convertible debt, net of debt discount of $132,522 and $0, respectively     158,612       -  
Convertible debt, net of unamortized debt discounts of $1,987,382 and $2,235,839, respectively     5,213,529       4,005,702  
Other debt, net of unamortized discounts of $167,263 and $380, respectively     683,116       238,157  
Warrant derivative liability     3,018,515       1,685,108  
Conversion option liability     2,679,404       951,059  
  Total current liabilities     15,222,318       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 $5,575and $740,628, respectively     5,425       529,742  
Deferred revenue     74,805       87,527  
TOTAL LIABILITIES     15,302,548       10,009,171  
COMMITMENTS AND CONTINGENCIES                
STOCKHOLDERS' DEFICIT                
Series D Convertible Preferred Stock, $.01 par value; 850 shares authorized; 300 shares issued and outstanding on March 31, 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 March 31, 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 March 31, 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 March 31, 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 March 31, 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 March 31, 2017 and December 31, 2016, respectively     68       68  
Common stock, $.01 par value; 100,000,000 shares authorized; 31,809,839 and 30,999,839 shares issued and outstanding on March 31, 2017 and December 31, 2016, respectively     318,098       309,998  
Warrants to acquire common stock     6,628,580       6,325,102  
Additional paid-in capital     27,446,472       27,244,600  
Accumulated deficit     (47,858,705 )     (42,264,190 )
  Total stockholders' deficit     (13,464,483 )     (8,383,418 )
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT   $ 1,838,065     $ 1,625,753  

Contact Information

  • Investor Contacts:
    Richard T. Schumacher
    President & CEO
    (508) 230-1828 (T)

    Jeffrey N. Peterson
    Chairman of the Board
    (650) 812-8121 (T)