SOURCE: PRESSURE BIOSCIENCES, INC.

August 16, 2016 12:30 ET

Pressure BioSciences, Inc. Reports Second Quarter 2016 Financial Results and Provides Business Update

SOUTH EASTON, MA--(Marketwired - Aug 16, 2016) - Pressure BioSciences, Inc. (OTCQB: PBIO)

Company Posts First Ever Back-to-Back Half Million Dollar Revenue Quarters; Products and Services Revenue Increases 42% (Q/Q); Sales of Consumables Reach Record Level

 Q2 2016 Highlights Include Release and Sale of Next-Generation Barocycler Instruments to Cancer Research Center Named by the White House as an NIH Cancer Moonshot Initiative Collaborator 

 Investor Conference Call Scheduled for Tuesday, August 16, 2016 at 4:30 PM EDT

Pressure BioSciences, Inc. (OTCQB: PBIO) ("PBI" or the "Company") today announced financial results for the 2016 second quarter ended June 30, 2016, provided a business update, and offered limited guidance for the remainder of FY2016.

Financial Results: Q2 2016 vs. Q2 2015. Products and services revenue was $474,187 for the second quarter of 2016 compared to $333,575 for the same period in 2015, an increase of $140,612 or 42%. Two major drivers of product revenue growth were instrument sales, which increased 43% during the comparative quarterly periods (from $217,138 to $311,345) and consumable sales, which increased 29% (from $56,513 to a record $72,773). Grant revenue decreased during the periods, from $79,529 in Q2 2015 to $36,776 in Q2 2016. This decrease in grant revenue, which is expected to be short-term, allowed the Company to focus grant personnel in other critical areas during the second quarter of 2016, primarily in the development of the Barocycler 2320EXTREME, our next-generation instrument system, and in various sales & marketing activities. The additional efforts in sales/marketing were partially responsible for the 24% increase reported in quarterly total revenue, from $413,104 in Q2 2015 to $510,963 in Q2 2016, despite the short-term decrease in grant revenue. 

Operating loss for the quarter ended June 30, 2016 was $1,060,697 compared to a loss of $1,063,889 for the same period in 2015. This slight decrease in operating loss was primarily due to increases in the sale of our products and services, mitigated to a certain extent by increased expenditures in research and development activities. These increased costs in R&D were primarily related to the extensive effort in the second quarter to finish the design and development of the Barocycler 2320EXTREME and to work with our new ISO-certified contract manufacturer in building the first five instrument systems prior to June 30, 2016.

Net income (loss) per common share was $0.04 (basic) and $(0.00) (diluted) for the quarter ended June 30, 2016 compared to a net loss per common share -- basic and diluted -- of $(0.07) for the same period in 2015. 

Financial Results: First Half 2016 vs. First Half 2015. Products and services revenue was $928,538 for the first six months of 2016 compared to $692,939 for the same period in 2015, an increase of $235,599 or 34%. Similar to Q2 2016, the two major drivers of product revenue growth during the first six months of 2016 were instrument sales, which increased 42% during the comparative half year periods (from $452,123 to $643,361) and consumable sales, which increased 21% (from $96,348 to $117,008). Grant revenue decreased during the comparative periods, from $160,299 in the first six months of 2015 to $92,904 in 2016 same period. This decrease in grant revenue, which is expected to be short-term, allowed the Company to focus grant personnel in other critical areas during the first half of 2016, primarily in the development of the Barocycler 2320EXTREME, our next-generation instrument system, and in various sales & marketing activities. The additional efforts in sales/marketing were partially responsible for the 20% increase reported in first half 2016 total revenue, from $853,238 in the first six months of 2015 to $1,021,442 in the same period in 2016, despite the short-term decrease in grant revenue. 

Operating loss for the six month period ended June 30, 2016 was $2,106,641 compared to a loss of $1,938,708 for the same period in 2015. This increase in operating loss was primarily due to increased expenditures related to the design and development of the Company's next-generation Barocycler 2320EXTREME instrument system, and higher investor relations costs, mitigated to a certain extent by increased product/services sales.

Net loss per common share was $(0.20) -- basic and diluted -- for the six months ended June 30, 2016 compared to a net loss per common share -- basic and diluted -- of $(0.14) for the same period in 2015. 

Operational Highlights: Q2 2016

  • We completed an intensive 18 month program to internally develop the "next-generation" PCT-based instrument system, the Barocycler 2320EXTREME. Designed initially for mass spectrometry protein sample preparation, particularly PCT-SWATH, this is the primary method behind our co-marketing agreement with global life science leader SCIEX. 
  • Our new ISO-certified contract manufacturer completed the build of the first five Barocycler 2320EXTREME instrument systems. All were immediately sold to key research groups, including three to the Children's Medical Research Institute ("CMRI") in Sydney Australia for cancer research studies.
  • In July, CMRI was named by VP Biden as one of four preeminent cancer research centers in Australia to collaborate with the U.S. National Cancer Institute in President Obama's Cancer Moonshot initiative.
  • We started the process to achieve CE Marking for the Barocycler 2320EXTREME.
  • PBI was added to the high-performing Richmond Club Index. The Richmond Index has outperformed the S&P500 Index by an average of 11% each year for the past 10 years.
  • Scientists from six separate research groups made presentations at the American Society for Mass Spectrometry ("ASMS") annual meeting on the compelling advantages of the PCT platform.
  • Scientists and marketing personnel from SCIEX and PBI presented a workshop at the ASMS annual meeting on improved detection of proteins in cancer and other samples, and in advancing precision medicine with next-generation products from SCIEX and PBI.

A short video discussing the initial shipments of the Barocycler 2320EXTREME can be found here:
https://www.youtube.com/watch?v=xbO6Lp4VxwU

Near-Term Goals: Second Half 2016

  • Continue to implement a sound path toward financial self-sufficiency and future growth and profitability.
  • Increase total/products & services/grant revenue & gross margins, quarter/quarter and year/year.
  • Drive acceptance and commercialization of the just released Barocycler 2320EXTREME.
  • Support and expand our co-marketing program with SCIEX.
  • Expand sales and marketing capabilities to reach into new countries, investigators, and fields-of-use.
  • Continue to prepare for a targeted up-list to NASDAQ or the NYSE.

Mr. Richard T. Schumacher, President and CEO of PBI, commented: "Over the past year, our efforts have been primarily focused on (i) strengthening and securing our financial future by eliminating all floorless debt, (ii) finding a co-marketing partner who is a global leader in the life sciences, particularly in the field of proteomics, (iii) designing then developing the next-generation Barocycler to support the co-marketing and other programs, (iv) developing the next-generation consumable products and applications for the PCT platform, and (v) continuing to increase sales of our instrument systems and associated consumables. I am pleased to say that we have been highly successful in achieving all five of these goals during this time."

Mr. Schumacher continued: "With a balance sheet void of floorless debt for the first time in years, with key opinion leaders now as customers, with global life sciences leader SCIEX as our co-marketing partner, with the new higher-throughput computerized Barocycler 2320EXTREME built and ready for prime-time, and with the PBI Management Team now in place for over 10 years, it is time to turn our main focus from building infrastructure to building a robust and highly effective sales and marketing program. Thus, the 2016 third quarter marks a significant change from the focus of the past year. Our focus today, and for the remainder of the 2016, is":

1. Strengthen and expand our internal sales and marketing capabilities
2. Support and expand our co-marketing program with SCIEX
3. Continue to increase products & services/grant revenue & gross margins
4. Work towards an up-list to NASDAQ/NYSE, hopefully by year's end."

Mr. Schumacher concluded: "Stakeholders in PBI should expect to hear and see the measurable progress we plan to achieve as we aggressively expand our sales and marketing capabilities throughout the remainder of 2016. We are very excited about the potential of this next phase in our growth plan, and are committed to make the changes required to successfully make it happen."

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.

Earnings Call

The Company will hold an Earnings Conference Call at 4:30 PM EDT on Tuesday, August 16, 2016. To attend this teleconference via telephone, Dial-in: (877) 407-8031 (North America), (201) 689-8031 (International). Verbal Passcode: PBI Second Quarter 2016 Financial Call. Replay Number (877) 660-6853 (North America); (201) 612-7415 (International). ID Number 13643814. Teleconference Replay Available for 30 days.

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, 2015 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, 2015, 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 
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PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY  
CONSOLIDATED BALANCE SHEETS  
(UNAUDITED)  
   
    June 30, 2016     December 31, 2015  
ASSETS                
CURRENT ASSETS                
Cash and cash equivalents   $ 71,632     $ 116,783  
Accounts receivable     511,108       113,256  
Inventories, net of $50,000 reserve at June 30, 2016 and December 31, 2015     1,002,382       1,038,371  
Prepaid income taxes     7,381       7,381  
Prepaid expenses and other current assets     144,960       213,926  
  Total current assets     1,737,463       1,489,717  
Investment in available-for-sale equity securities     81,783       294,522  
Property and equipment, net     8,069       20,149  
TOTAL ASSETS   $ 1,827,315     $ 1,804,388  
                 
LIABILITIES AND STOCKHOLDERS' DEFICIT                
CURRENT LIABILITIES                
Accounts payable   $ 889,863     $ 941,389  
Accrued employee compensation     196,780       176,009  
Accrued professional fees and other     638,920       821,088  
Deferred revenue     307,244       140,878  
Convertible debt, net of unamortized debt discounts of $29,373 at June 30, 2016 and $0 at December 31, 2015     192,627       100,000  
Other debt, net of unamortized discounts of $15,084 and $3,041, respectively     454,369       151,628  
Warrant derivative liability     4,552,995       3,295,976  
Conversion option derivative liability     5,023,449       3,940,791  
  Total current liabilities     12,256,247       9,567,759  
LONG TERM LIABILITIES                
Related party convertible debt, net of unamortized debt discounts of $233,261 and $0, respectively     57,743       -  
Convertible debt, net of unamortized debt discounts of $4,760,592 and $5,223,658, respectively     1,910,908       177,342  
Deferred revenue     36,935       36,935  
TOTAL LIABILITIES     14,261,833       9,782,036  
COMMITMENTS AND CONTINGENCIES                
STOCKHOLDERS' DEFICIT                
Series D Convertible Preferred Stock, $.01 par value; 850 shares authorized; 300 shares issued and outstanding on June 30, 2016 and December 31, 2015, 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 June 30, 2016 and December 31, 2015, respectively     866       866  
Series H Convertible Preferred Stock, $.01 par value; 10,000 shares authorized; 10,000 shares issued and outstanding on June 30, 2016 and December 31, 2015, respectively     100       100  
Series H2 Convertible Preferred Stock, $.01 par value; 21 shares authorized; 21 shares issued and outstanding on June 30, 2016 and December 31, 2015, respectively     -       -  
Series J Convertible Preferred Stock, $.01 par value; 6,250 shares authorized; 3,546 shares issued and outstanding on June 30, 2016 and December 31, 2015, respectively     36       36  
Series K Convertible Preferred Stock, $.01 par value; 15,000 shares authorized; 6,816 and 11,416 shares issued and outstanding on June 30, 2016 and December 31, 2015, respectively     68       114  
Common stock, $.01 par value; 100,000,000 shares authorized; 29,031,845 and 23,004,898 shares issued and outstanding on June 30, 2016 and December 31, 2015, respectively     290,319       230,050  
Warrants to acquire common stock     5,445,336       5,416,681  
Additional paid-in capital     26,692,285       26,036,733  
Accumulated other comprehensive income     (317,764 )     (105,025 )
Accumulated deficit     (44,545,767 )     (39,557,206 )
  Total stockholders' deficit     (12,434,518 )     (7,977,648 )
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT   $ 1,827,315     $ 1,804,388  
                 
   
PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY  
CONSOLIDATED STATEMENTS OF OPERATIONS  
(UNAUDITED)  
   
    For the Three Months Ended
June 30,
    For the Six Months Ended
June 30,
 
    2016     2015     2016     2015  
Revenue:                                
Products, services, other   $ 474,187     $ 333,575     $ 928,538     $ 692,939  
Grant revenue     36,776       79,529       92,904       160,299  
  Total revenue     510,963       413,104       1,021,442       853,238  
                                 
Costs and expenses:                                
Cost of products and services     243,105       175,193       464,804       365,976  
Research and development     321,428       291,402       656,698       523,325  
Selling and marketing     193,885       200,178       385,121       366,401  
General and administrative     813,242       810,220       1,621,460       1,536,244  
  Total operating costs and expenses     1,571,660       1,476,993       3,128,083       2,791,946  
                                 
  Operating loss     (1,060,697 )     (1,063,889 )     (2,106,641 )     (1,938,708 )
                                 
Other (expense) income:                                
Interest expense, net     (1,010,236 )     (640,691 )     (1,845,380 )     (1,246,276 )
Other expense     -       (168,111 )     (912 )     (513,352 )
Gain on extinguishment of embedded derivative liabilities     -       186,609       -       848,073  
Change in fair value of derivative liabilities     3,032,762       299,841       (1,035,628 )     78,031  
  Total other (expense) income     2,022,526       (322,352 )     (2,881,920 )     (833,524 )
                                 
Net income (loss)     961,829       (1,386,241 )     (4,988,561 )     (2,772,232 )
Accrued dividends on convertible preferred stock     -       (6,811 )     -       (23,479 )
                                 
Net income (loss) applicable to common shareholders   $ 961,829       (1,393,052 )   $ (4,988,561 )   $ (2,795,711 )
                                 
Net income (loss) per share attributable to common stockholders - basic   $ 0.04     $ (0.07 )   $ (0.20 )   $ (0.14 )
Net income (loss) per share attributable to common stockholders - diluted   $ (0.00 )   $ (0.07 )   $ (0.20 )   $ (0.14 )
                                 
Weighted average common stock shares outstanding used in the basic net income (loss) per share calculation     25,953,828       19,682,632       24,481,039       19,247,895  
Weighted average common stock shares outstanding used in the diluted net income (loss) per share calculation     70,762,909       19,682,632       24,481,039       19,247,895  
                                 

Contact Information

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

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