Pressure BioSciences, Inc. Reports First Quarter 2017 Financial Results And Provides Business Update
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
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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)
December 31,
March 31, 2017 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
============== ==============
Investor Contacts:
Richard T. Schumacher
President & CEO
(508) 230-1828 (T)
Jeffrey N. Peterson
Chairman of the Board
(650) 812-8121 (T)