SAN JOSE, Calif.
, May 14
/PRNewswire-FirstCall/ -- Human Pheromone Sciences, Inc. (OTC Bulletin Board: EROX) ("HPS" or "the Company") today announced results for the first quarter ended March 31, 2010
. Net revenues of $185,000
represented a 12% increase from the revenues of $165,000
in the prior year period, and resulted in a net loss of $98,000 ($.02
per share) as compared with net loss of $181,000
per share) for the same period in 2009. Net cash and cash equivalents decreased $178,000
in the current year quarter as compared with $243,000
in the first quarter of 2009. There was no bank indebtedness at either period.
While revenues increased 12%, or $20,000, gross profit grew by $51,000, or 51%, a result of the Company's focus on licensing agreements for its proprietary compounds. These agreements provide a significantly higher return since there are no costs associated with licensing revenues. In addition, the Company noted that the favorable comparison with the prior year period was attributable to reduction in operating expenses, despite incurring legal fees in the current year quarter in connection with filing foreign patents for ER 303, our coral-based compound, outside the United States.
"Generating additional revenues under licensing agreements, which bear no cost of goods associated therewith, will result in improved operating results. In the past several months, we have entered into two additional Licensing Agreements, which may have the same effect on a short and long-term basis. We are also involved in discussions with other companies along the same lines; obviously, we cannot guarantee success in these negotiations. With respect to ER 303, we feel strongly that it has unique properties and, accordingly, the Company invested in patent protection in Europe during this current quarter," a Company spokesperson indicated. "While licensing is a focus of the Company, liquidity is also a major concern. As such, we are involved in discussions to enhance our cash position, and provide funding to realize our long-term licensing opportunities for our pheromone technologies, ER 303 and several other compounds that have shown initial promise in vivo and in vitro," the spokesperson noted.
Human Pheromone Sciences, Inc. is a technology-based company, whose proof-of concept products included prestige-priced fragrances and toiletries and environmental products sold under the Natural Attraction®, REALM®, innerREALM® and EROX® trademarks. These products contain mood-enhancing compounds, whose efficacy has been validated at leading universities around the world, and whose use is covered under United States and foreign patents. The Company is also involved in research and product development efforts on new compounds that have been previously identified as stimulating the emotional centers of the human brain. Further information is available on line at www.erox.com.
The statements in this news release may contain forward-looking statements that involve risks and uncertainties that could cause results to differ from predicted results. Further information on factors that could affect the Company's results is detailed in the Company's annual report to shareholders on Form 10-K for the year ended December 31, 2009, and Form 10-Q for the quarter ended March 31, 2010, as filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements.
HUMAN PHEROMONE SCIENCES, INC.
Condensed Balance Sheets
(Dollars in thousands)
Cash and cash equivalents
Other current assets
Property and equipment, net
Liabilities and shareholders' deficit
Other current liabilities
Deferred income - current 183
Deferred income non-current
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HUMAN PHEROMONE SCIENCES, INC.
Condensed Statements of Operations
(Dollars in thousands, except per-share data)
Three months ended March 31,