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

SOUTH EASTON, MA--(Marketwired - November 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,   December 31, 
                                                    2016           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       For the Nine Months   
                                   Ended                     Ended          
                               September 30,             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 

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

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

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