SOURCE: PRESSURE BIOSCIENCES, INC.

Pressure BioSciences, Inc.

August 16, 2017 12:13 ET

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

Total Revenue, Products & Services Revenue, Instrument Sales & Grant Activity All Increased Q/Q; New Five Person Field Sales Team Now Complete with Two Recent Additional Hires

Investor Conference Call Scheduled for Wednesday, August 16, 2017 at 4:30 PM EDT

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

Financial Results: Q2 2017 vs. Q2 2016

Total revenue for the 2017 second quarter was $540,372 compared to $510,963 during the same period in 2016, an increase of $29,409 or 6%. This increase was primarily due to higher revenue from grant related activities and instrument sales, as described below. We believe total revenue will continue to increase over the remaining quarters of 2017.

Products and services revenue increased to $480,400 in Q2 2017 compared to $474,187 for the prior year same period, an increase of 1%. Comparing Q2 2017 to Q2 2016, instrument sales increased to $346,882 from $311,345 (an increase of 11%) while consumable sales decreased to $52,365 from $72,773 (a decrease of 28%). We believe products and services revenue will continue to increase over the remaining quarters of 2017.

Grant revenue increased to $59,972 in the second quarter 2017 from $36,776 in the prior year period, an increase of 63%. We believe grant revenue will continue to increase over the remaining quarters of 2017.

Operating loss increased to $1,204,291 in Q2 2017 from $1,060,697 for the same period in 2016, an increase of $143,594 or 14%. This increase was primarily due to a significant increase in sales and marketing expenses during Q2 2017 (an increase of $106,226, or 55%) combined with an increase in G&A expenses related to the hire of a CFO and an increase in investor relations and business development activities.

Net loss per common share -- basic and diluted -- was $(0.54) for the quarter ended June 30, 2017 compared to net income per common share of $1.11 (basic) and net loss per common share of $(0.03) (diluted) for the same period in 2016. Net income per common share for the period ended June 30, 2016 was primarily due to the impact of a favorable change in fair value of derivative liabilities amounting to $3,032,762.  

Financial Results: First Half 2017 vs. First Half 2016

Total revenue for the 2017 first half was $1,091,729 compared to $1,021,442 for the prior year same period, an increase of $70,287 or 7%. This increase was primarily due to higher revenue from instrument sales, as described below. We believe total revenue will continue to increase over the remaining quarters of 2017.

Products and services revenue increased to $1,006,398 for the first half of 2017 compared to $928,538 for the same period in 2016, an increase of $77,860 or 8%. Comparing 1H 2017 to 1H 2016, instrument sales increased to $742,977 from $643,361 (an increase of 16%) while consumable sales decreased slightly to $115,629 from $117,008 (a decrease of 1%). We believe products and services revenue will continue to increase over the remaining quarters of 2017.

Grant revenue decreased to $85,331 in the 2017 first half from $92,904 in the prior year period, a decrease of $7,573 or 8%. We believe grant revenue will continue to increase over the remaining quarters of the year, as it did in Q2 2017.

Operating loss was $2,203,394 for the first six months of 2017, compared to a loss of $2,106,641 for the same period in 2016, an increase of $96,753 or 5%. This increase was primarily due to a significant increase in sales and marketing expenses during the first half of 2017 (an increase of $127,999, or 33%) combined with an increase in G&A expenses related to the hire of our CFO and an increase in investor relations and business development activities.

Net loss per common share was $(5.83) -- basic and diluted -- for the six months ended June 30, 2017 compared to a net loss per common share -- basic and diluted -- of $(6.11) for the same period in 2016.

Financial and Operational Highlights: Q2 2017

  • April 17, 2017. The Company announced that Mr. Joseph L. Damasio, Jr. had joined PBI as its Vice President of Finance and Chief Financial Officer ("CFO") on April 10th.

  • June 2, 2017. The Company announced a one-for-thirty reverse stock split.

  • June 5, 2017. The Company announced that Professor Ruedi Aebersold, a world-renowned protein chemist and 2017 recipient of the prestigious Karger Medal (recognizing an individual "who has significantly contributed to the development of new bioanalytical methods") presented two Medal Lectures on state-of-the-art proteomics research during which he discussed PBI's PCT platform for sample preparation, a critical step in scientific analysis.

  • June 6, 2017. The Company announced that its' recently released, next-generation PCT-based instrument (the Barocycler 2320EXTREME) was to be featured in multiple presentations at a major international scientific meeting (the American Society for Mass Spectrometry Annual Conference). 

On August 15, 2017, PBI requested that the Securities and Exchange Commission ("SEC") consent to the withdrawal of the Company's Registration Statement on Form S-1 (File No. 333-215277), together with all exhibits. The Registration Statement was initially filed with the SEC on December 22, 2016. 

Mr. Jeffrey N. Peterson, Chairman of PBI's Board of Directors, commented: "After much diligence, the PBI Board determined in the fall of 2016 that it would be in the best interests of PBI shareholders for the Company to raise approximately $12.5 million in an underwritten equity offering with a concomitant up-list to the NASDAQ Stock Market. The reverse stock split on June 5, 2017 was intended to help satisfy the minimum bid price requirement for initial listing on the NASDAQ Capital Market. However, due to market conditions, it was determined last week to not proceed with the offering. We believe that the offering is no longer in the best interests of shareholders."

"We made significant progress in several important areas during the second quarter," said Mr. Joseph L. Damasio, Jr., VP of Finance and CFO. "Specifically, (i) we worked closely with our contract manufacturer and raw materials vendors in an effort to reduce the costs of both the parts and assembly of our recently released, next generation Barocycler 2320EXTREME instrument; (ii) we renovated and moved into an expanded office, manufacturing, inventory, and storage space in our main South Easton facility; and (iii) we upgraded the systems and procedures used to analyze and track inventory, bill-of-materials, and costs-of-goods-sold. We also continued to show quarter-over-quarter growth in total revenue, products and services revenue, and instrument sales."

Mr. Richard T. Schumacher, President and CEO of PBI, commented: "In addition to the financial and logistical accomplishments addressed by Joe, we have made measurable progress in several key operational areas as well: (a) we completed the hire of our new, five-member field sales force -- all five hires have extensive experience in the sale of capital equipment to life sciences research labs nationwide. We expect all five sales directors to be fully trained and in the field between Labor Day and the end of September 2017, and that they will -- we believe -- have an increasing impact on sales, starting in Q3 2017; (b) we made measurable progress on our goal to upgrade the software on our Barocycler 2320EXT to GMP/GLP-compliance, which we believe will open up a significant market opportunity for the 2320EXT in the drug design, development, validation, manufacture, and quality control of biological drugs; and (c) we announced for the first time that we have filed a patent for 'ultra-shear technology,' which we believe could address a significant, unmet need in both the biopharma and 'clean label' food areas."

Earnings Call
The Company will hold an Earnings Conference Call at 4:30 PM EDT on Wednesday, August 16, 2017. To attend this teleconference via telephone, Dial-in: (877) 407-8031 (North America), (201) 689-8031 (International). Verbal Passcode: PBIO Second Quarter 2017 Financial Call. Replay Number (877) 481-4010; (919) 882-2331 (International). Replay ID Number: 19976. 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 270 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 first six months ended June 30, 2017 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
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PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY  
CONSOLIDATED STATEMENTS OF OPERATIONS  
(UNAUDITED)  
   
    For the Three Months Ended
June 30,
    For the Six Months Ended
June 30,
 
    2017     2016     2017     2016  
Revenue:                                
Products, services, other   $ 480,400     $ 474,187     $ 1,006,398     $ 928,538  
Grant revenue     59,972       36,776       85,331       92,904  
  Total revenue     540,372       510,963       1,091,729       1,021,442  
                                 
Costs and expenses:                                
Cost of products and services     287,299       243,105       523,296       464,804  
Research and development     241,783       321,428       505,239       656,698  
Selling and marketing     300,111       193,885       513,120       385,121  
General and administrative     915,470       813,242       1,753,468       1,621,460  
  Total operating costs and expenses     1,744,663       1,571,660       3,295,123       3,128,083  
                                 
  Operating loss     (1,204,291 )     (1,060,697 )     (2,203,394 )     (2,106,641 )
                                 
Other (expense) income:                                
Interest expense, net     (1,983,112 )     (1,010,236 )     (3,509,744 )     (1,845,380 )
Other expense     (80 )     -       (1,039 )     (912 )
Impairment loss on investment     -       -       (6,069 )     -  
Incentive warrants for warrant exercises     (186,802 )     -       (186,802 )     -  
Change in fair value of derivative liabilities     2,790,525       3,032,762       (271,227 )     (1,035,628 )
  Total other income (expense)     620,531       2,022,526       (3,974,881 )     (2,881,920 )
                                 
Net (loss) income     (583,760 )     961,829       (6,178,275 )     (4,988,561 )
                                 
Net (loss) income per share attributable to common stockholders - basic   $ (0.54 )   $ 1.11     $ (5.83 )   $ (6.11 )
Net (loss) income per share attributable to common stockholders - diluted   $ (0.54 )   $ (0.03 )   $ (5.83 )   $ (6.11 )
                                 
Weighted average common stock shares outstanding used in the basic net (loss) income per share calculation     1,077,529       865,128       1,059,250       816,035  
Weighted average common stock shares outstanding used in the diluted net (loss) income per share calculation     1,077,529       2,358,754       1,059,250       816,035  
                                 
                                 
PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY  
CONSOLIDATED BALANCE SHEETS  
(UNAUDITED)  
   
    June 30, 2017     December 31, 2016  
ASSETS                
CURRENT ASSETS                
Cash and cash equivalents   $ 201,333     $ 138,363  
Accounts receivable, net of $28,169 reserve at June 30, 2017 and December 31, 2016     564,048       281,320  
Inventories, net of $20,000 reserve at June 30, 2017 and December 31, 2016     1,131,488       905,284  
Prepaid income taxes     7,405       7,405  
Prepaid expenses and other current assets     175,910       258,103  
  Total current assets     2,080,184       1,590,475  
Investment in available-for-sale equity securities     25,986       25,865  
Property and equipment, net     21,314       9,413  
TOTAL ASSETS   $ 2,127,484     $ 1,625,753  
                 
LIABILITIES AND STOCKHOLDERS' DEFICIT                
CURRENT LIABILITIES                
Accounts payable   $ 746,087     $ 407,249  
Accrued employee compensation     337,480       249,596  
Accrued professional fees and other     1,354,615       956,884  
Deferred revenue     180,397       159,654  
Revolving note payable, net of unamortized debt discounts of $909,017 and $637,030, respectively     2,090,983       612,970  
Related party convertible debt, net of debt discount of $99,065 and $0, respectively     192,069       -  
Convertible debt, net of unamortized debt discounts of $1,037,619 and $2,235,839, respectively     5,633,751       4,005,702  
Other debt, net of unamortized discounts of $111,771 and $380, respectively     1,769,376       238,157  
Warrant derivative liability     1,950,681       1,685,108  
Conversion option liability     907,386       951,059  
  Total current liabilities     15,162,825       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 $0 and $740,628, respectively     -       529,742  
Deferred revenue     71,499       87,527  
TOTAL LIABILITIES     15,234,324       10,009,171  
STOCKHOLDERS' DEFICIT                
Series D Convertible Preferred Stock, $.01 par value; 850 shares authorized; 300 shares issued and outstanding on June 30, 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 June 30, 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 June 30, 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 June 30, 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 June 30, 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 June 30, 2017 and December 31, 2016, respectively     68       68  
Common stock, $.01 par value; 100,000,000 shares authorized; 1,101,884 and 1,033,328 shares issued and outstanding on June 30, 2017 and December 31, 2016, respectively     11,019       10,333  
Warrants to acquire common stock     7,082,460       6,325,102  
Additional paid-in capital     28,234,884       27,544,265  
Accumulated other comprehensive income     6,190       -  
Accumulated deficit     (48,442,465 )     (42,264,190 )
  Total stockholders' deficit     (13,106,840 )     (8,383,418 )
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT   $ 2,127,484     $ 1,625,753  

Contact Information

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

    Joseph L. Damasio
    VP of Finance and CFO
    (508) 230-1828 (T)

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