SOURCE: PRESSURE BIOSCIENCES, INC.

November 16, 2016 12:19 ET

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

Company Posts Third Consecutive Quarter with Revenues Over $500,000; Products and Services Revenue Sets Record Highs for Quarter and Year-to-Date

Investor Conference Call Scheduled for Wednesday, November 16, 2016 at 4:30 PM EST

SOUTH EASTON, MA--(Marketwired - Nov 16, 2016) -  Pressure BioSciences, Inc. (OTCQB: PBIO) ("PBI" or the "Company") today announced financial results for the third quarter ended September 30, 2016, and provided a business update.

Financial Results: Q3 2016 vs. Q3 2015. Products and services revenue increased to $500,949 for the third quarter of 2016 from $481,452 for the same quarter of 2015. This was a record high for products and services revenue in a quarter and marked the first time that products and services revenue exceeded half a million dollars in a financial quarter. Revenue was driven primarily by the sale of instruments, which also set a record high with $383,789 for the quarter, compared to $340,084 (the previous record) for the same quarter of 2015. Grant revenue decreased to $34,385 for Q3 2016 from $98,882 for the same quarter in the previous year. We expect grant revenue to begin to increase in the fourth quarter of 2016 and continue to increase into 2017. Total revenue decreased to $535,334 in the third quarter 2016 from $580,334 for the third quarter of 2015. This decrease was due to the decrease in grant revenue.

Operating loss for the quarter ended September 30, 2016 was $451,807 compared to a loss of $690,728 for the same period of 2015. Although we continue to carefully control expenditures, this decrease in operating loss was primarily due to credits received from a professional service organization the Company no longer uses. We believe that had these credits not been received, operating loss for Q3 2016 would have been greater than the operating loss for Q3 2015, primarily because of discounts we offered to initial purchasers of our new next-generation Barocycler 2320EXTREME instrument, higher costs experienced in sales and marketing as we began to expand such capabilities, and costs associated with pursuing CE Marking for the new Barocycler 23230EXTREME. A CE Mark is required by dozens of countries in order to sell product in their country. 

Net loss per common share was $(0.03) - basic and diluted - for the quarters ended September 30, 2016 and September 30, 2015. 

Financial Results: First Nine Months 2016 vs. First Nine Months 2015. Products and services revenue for the first nine months of 2016 increased to $1,429,487 from $1,174,391 for the same period in 2015. This was a record high for the nine-month period, and exceeded the previous record high (2015) by approximately 22%. Revenue was driven primarily by the sale of instruments, which also set a record high for the nine-month period of $1,001,060, compared to $752,444 (the previous record) for the same period in 2015. Grant revenue decreased during the first nine months of 2016 to $127,289 from $259,181 during the same period in 2015. We expect grant revenue to begin to increase in the fourth quarter of 2016 and to continue to increase in 2017. Total revenue increased to a record $1,556,776 for the nine-month period ended September 30, 2016, compared to $1,433,572 during the same period in 2015. We achieved this level of revenue in spite of the significant decrease observed in grant revenue.

Operating loss for the nine month period ended September 30, 2016 was $2,558,448 compared to a loss of $2,629,436 for the same period in 2015. This decrease in operating loss was primarily due to credits received from a former service provider to the Company, as previously described, and by careful control of expenditures.

Net loss per common share (both basic and diluted) was $(0.23) for the nine months ended September 30, 2016 compared to $(0.17) for the same period in 2015. 

Business Highlights: Q3 2016

a) Our new ISO-certified contract manufacturer completed the build of four Barocycler 2320EXTREME instrument systems during the quarter. All four were purchased by customers in Germany and Japan.
b) In July, the Children's Medical Research Institute ("CMRI") was named by Vice President 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. CMRI purchased the first three commercially-available Barocycler 2320EXTREME instruments.
c) We made measurable progress towards our goal of achieving CE Marking for our new next-generation Barocycler 2320EXTREME instrument before the end of 2016.
d) PBI was invited, along with representatives from SCIEX, CMRI, the Institute of Molecular Systems Biology (Zurich, Switzerland), Beckman-Coulter, Ilumina, and Next-Bio to make presentations at the Gala Opening of The ACRF International Centre for the Proteome of Human Cancer ("ProCan"). ProCan is located in newly renovated laboratory facilities at CMRI near Sydney, Australia.

A short video discussing our new, next-generation Barocycler 2320EXTREME can be found here:
https://www.youtube.com/watch?v=xbO6Lp4VxwU

Near-Term Goals: Fourth Quarter 2016 and Early 2017

a) Continue to implement a sound path toward financial self-sufficiency and future growth and profitability.
b) Drive acceptance and commercialization of the new Barocycler 2320EXTREME.
c) Support and expand our co-marketing program with SCIEX.
d) Significantly expand sales and marketing capabilities.

Mr. Jeffrey N. Peterson, Chairman of the PBI Board, said: "We have recently announced a number of notable achievements that we believe add critical strength and stability to our company as we have concomitantly increased the acceptance and commercial traction of our PCT platform in both the scientific and investment communities worldwide. These include: (i) a co-marketing agreement with SCIEX, a leader in providing important analytical instrumentation to the global life sciences field; (ii) the elimination of nearly $3 million in floorless debt; (iii) the release of our next-generation, PCT-based instrument (the Barocycler 2320EXTREME) and the subsequent sale of the first nine commercially-available units to customers in the US, Europe, Asia, and Australia; (iv) three consecutive quarters with total revenue surpassing half a million dollars each, with strong product sales leading the way; and (v) closing of the sale of $610,000 of our common stock in a PIPE transaction and our recently opened $2,000,000 line-of-credit."

Mr. Richard T. Schumacher, President and CEO of PBI, commented: "We believe these and other recent successes have positioned us well for continued growth and future profitability. However, much remains to be done. It is important that we continue to build upon these recent successes. In that vein, it is imperative that we expand and enhance our current financial, operational, and technical capabilities, and that we find additional ways to help ensure that our progress is seen and understood by the worldwide financial and investor communities. To that end, we are committed to using funds from the PIPE Financing, Line-of-Credit, and Product Sales to help achieve these very important and timely goals. This may include, among other things, additions to staff, independent agents, distributors, and consultants focused primarily in sales and marketing,

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 bio-therapeutics characterization, soil & plant biology, vaccine development, counter-bioterror applications, and other areas.

Earnings Call
The Company will hold an Earnings Call at 4:30 PM EST on Wednesday, November 16, 2016. To attend this teleconference via telephone, Dial-in: (877) 407-8031 (North America), (201) 689-8031 (International). Verbal Passcode: PBI Third Quarter 2016 Financial Call. Replay Number (877) 481-4010 (North America); (919) 882-2331 (International). ID Number 10158. 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  
CONDENSED CONSOLIDATED BALANCE SHEETS  
(UNAUDITED)  
   
    September 30, 2016     December 31, 2015  
ASSETS            
CURRENT ASSETS                
Cash and cash equivalents   $ 41,939     $ 116,783  
Accounts receivable     589,682       113,256  
Inventories, net of $50,000 reserve at September 30, 2016 and December 31, 2015     1,008,138       1,038,371  
Prepaid income taxes     7,405       7,381  
Prepaid expenses and other current assets     179,954       213,926  
  Total current assets     1,827,118       1,489,717  
Investment in available-for-sale equity securities     59,550       294,522  
Property and equipment, net     7,933       20,149  
TOTAL ASSETS   $ 1,894,601     $ 1,804,388  
                 
LIABILITIES AND STOCKHOLDERS' DEFICIT                
CURRENT LIABILITIES                
Accounts payable   $ 532,214     $ 941,389  
Accrued employee compensation     185,909       176,009  
Accrued professional fees and other     690,230       821,088  
Deferred revenue     270,102       140,878  
Convertible debt, net of unamortized debt discounts of $1,891,206 at September 30, 2016 and $0 at December 31, 2015     2,664,334       100,000  
Other debt, net of unamortized discounts of $5,183 and $3,041, respectively     242,963       151,628  
Warrant derivative liability     4,325,864       3,295,976  
Conversion option derivative liability     4,627,452       3,940,791  
  Total current liabilities     13,539,068       9,567,759  
LONG TERM LIABILITIES                
Related party convertible debt, net of unamortized debt discounts of $199,436 and $0, respectively     91,568       --  
Convertible debt, net of unamortized debt discounts of $2,076,658 and $5,223,658, respectively     986,843       177,342  
Deferred revenue     36,935       36,935  
TOTAL LIABILITIES     14,654,414       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 September 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 September 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 September 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 September 30, 2016 and December 31, 2015, respectively     --       --  
Series J Convertible Preferred Stock, $.01 par value; 6,250 shares authorized; 3,521 and 3,546 shares issued and outstanding on September 30, 2016 and December 31, 2015, respectively     35       36  
Series K Convertible Preferred Stock, $.01 par value; 15,000 shares authorized; 6,816 and 11,416 shares issued and outstanding on September 30, 2016 and December 31, 2015, respectively     68       114  
Common stock, $.01 par value; 100,000,000 shares authorized; 30,599,839 and 23,004,898 shares issued and outstanding on September 30, 2016 and December 31, 2015, respectively     305,998       230,050  
Warrants to acquire common stock     5,683,897       5,416,681  
Additional paid-in capital     27,080,191       26,036,733  
Accumulated other comprehensive income     (339,997 )     (105,025 )
Accumulated deficit     (45,490,974 )     (39,557,206 )
  Total stockholders' deficit     (12,759,813 )     (7,977,648 )
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT   $ 1,894,601     $ 1,804,388  
                 
                 
                 
PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY  
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  
(UNAUDITED)  
   
    For the Three Months Ended
September 30,
    For the Nine Months Ended
September 30,
 
    2016     2015     2016     2015  
Revenue:                                
Products, services, other   $ 500,949     $ 481,452     $ 1,429,487     $ 1,174,391  
Grant revenue     34,385       98,882       127,289       259,181  
  Total revenue     535,334       580,334       1,556,776       1,433,572  
                                 
Costs and expenses:                                
Cost of products and services     262,894       209,804       727,698       575,780  
Research and development     268,317       355,574       925,015       878,899  
Selling and marketing     224,380       207,888       609,501       574,289  
General and administrative     231,550       497,796       1,853,010       2,034,040  
  Total operating costs and expenses     987,141       1,271,062       4,115,224       4,063,008  
                                 
  Operating loss     (451,807 )     (690,728 )     (2,558,448 )     (2,629,436 )
                                 
Other (expense) income:                                
Interest expense, net     (1,116,328 )     (1,584,830 )     (2,961,708 )     (2,831,106 )
Other expense     (200 )     --       (1,112 )     (36,910 )
Gain on extinguishment of embedded derivative liabilities     --       1,180,251       --       2,028,324  
Change in fair value of derivative liabilities     623,128       437,379       (412,500 )     38,968  
  Total other (expense) income     (493,400 )     32,800       (3,375,320 )     (800,724 )
                                 
Net loss     (945,207 )     (657,928 )     (5,933,768 )     (3,430,160 )
Accrued dividends on convertible preferred stock     --       1,711       --       (21,768 )
                                 
Net loss applicable to common shareholders   $ (945,207 )     (656,217 )   $ (5,933,768 )   $ (3,451,928 )
                                 
Net loss per share attributable to common stockholders - basic and diluted   $ (0.03 )   $ (0.03 )   $ (0.23 )   $ (0.17 )
                                 
Weighted average common stock shares outstanding used in the basic and diluted net loss per share calculation     29,425,362       20,737,827       26,139,740       19,771,323  

Contact Information

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

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