Total Revenue increased 21%, from $535,334 in Q3 2016 to $646,061
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Record Total Revenue Reported, Led by Increases in Products & Services (+21%), Consumables (+158%), and Grant (+23%) Revenue (Y/Y); Investor Conference Call Scheduled for Tuesday, November 14, 2017 at 4:30 PM EDT SOUTH EASTON, MA -- (Marketwired) -- Nov 14, 2017 --Pressure BioSciences, Inc. ( Mr. Joseph L. Damasio, Jr., VP of Finance and CFO at PBI said: "We are pleased with the strong revenue growth demonstrated in the 2017 third quarter. This growth included a record for quarterly total revenue, propelled by a 158% increase in consumable sales (also a quarterly record). Product gross profit margin remained steady at about 47%." Mr. Damasio continued: "We believe the revenue growth reported in the third quarter and year-to-date will not only continue in Q4 2017 and beyond, but will accelerate to an even greater rate as our new sales team begins to meet with existing and potential customers throughout the U.S. To that point, Q4 2017 Purchase Orders and Purchase Indications (90% estimated probability of closing) through early November have already exceeded products & services revenue for the full 2016 fourth quarter. We remain confident that we are on the path to future expansion, profitability and success." Q3 2017 Financial Highlights
Q3 2017 (plus October) Operational Highlights
Mr. Richard T. Schumacher, President and CEO of PBI, said: "We have a new, multi-functional, CE Marked, award-winning Barocycler instrument that we believe can significantly expand our sales potential by filling multiple needs in the biopharma industry. We have a new six-person, experienced, and highly capable sales and marketing team that can be aggressive and proactive in its selling functions, compared to the one-person, reactive sales effort that was our capability just a few months ago. In addition, we are very excited about our new, widely-applicable patented Ultra Shear Technology ("UST") platform that we believe will allow us to quickly expand into large new markets, such as nutraceuticals, cosmetics, and clean-label food." Mr. Schumacher continued: "Our goal for Q4 2017 and beyond is to continue to accelerate our sales growth and closely control expenses as we move firmly towards profitability and financial self-sufficiency. We have spent a lot of time and money over the past few years preparing for this opportunity. We believe we are ready and taking all necessary actions to grow our momentum and fully exploit the exciting growth and new markets potential that we have long envisioned." Financial Results: Q3 2017 vs. Q3 2016 Total revenue for the 2017 third quarter was $646,061 compared to $535,334 during the same period in 2016, an increase of $110,727 or 21%. This increase was primarily attributable to increases in both instrument and consumable sales. We believe total revenue will continue to increase on a year/year comparative basis for the remainder of 2017. Products & Services revenue increased to $603,726 in Q3 2017 compared to $500,949 for the prior year same period, an increase of 21%. Comparing Q3 2017 to Q3 2016, instrument sales increased to $410,906 from $383,527, an increase of 7%, while consumable sales increased to a record $84,594 from $32,811, an increase of 158%. We believe products and services revenue will continue to increase on a year/year comparative basis for the remainder of 2017. Grant revenue increased to $42,335 in the third quarter 2017 from $34,385 in the prior year period, an increase of 23%. We believe grant revenue will continue to increase in the final quarter of 2017. Operating loss increased to $1,125,272 in Q3 2017 from $451,807 for the same period in 2016, an increase of $673,465. This increase was due primarily to a significant one-time credit of approximately $400,000 received in Q3 2016 from a former professional service provider. The remaining increase in 2017 operating loss was mostly due to headcount increases in sales and marketing and significant charges related to the registration statement process for a proposed $12.5 million financing and concomitant U.S. equities exchange up-list, which was withdrawn by the Company in August 2017. Net loss per common share -- basic and diluted -- was $(2.07) for the quarter ended September 30, 2017 compared to net loss per share -- basic and diluted of $(0.96) for the same period in 2016. This increase in net loss per share was due to the significant increase in Q3 2017 operating loss, which as described above, was primarily related to one-time charges stemming from the August 2017 withdrawal of a registration statement, and a one-time credit of approximately $400,000 received in Q3 2016 from a former service provider. Financial Results: First Nine Months 2017 vs. First Nine Months 2016 Total revenue for the 2017 first nine months was $1,737,790 compared to $1,556,776 for the prior year same period, an increase of $181,014 or 12%. This increase was primarily due to higher revenue from instrument and consumable sales, as described below. Products & Services revenue increased to $1,610,124 for the first nine months of 2017 compared to $1,429,487 for the same period in 2016, an increase of 13%. Comparing the first nine months of 2017 to the same period in 2016, instrument sales increased to $1,153,883 from $1,026,888, an increase of 12%, while consumable sales increased to $200,223 from $149,819, an increase of 34%. Grant revenue remained steady at $127,666 in the first nine months of 2017 compared to $127,289 in the prior year period. Operating loss was $3,328,664 for the first nine months of 2017 compared to a loss of $2,558,448 for the same period in 2016, an increase of $770,216. This increase was primarily due to the hiring of four field sales directors in 2017, costs stemming from the August 2017 withdrawal of a registration statement, the hire of a full-time CFO, and other expenses related to the growth of the business. Our Q1-Q3 2017 operating loss also increased due to the effect of approximately $400,000 in credits received in the prior year period against charges incurred with a former professional service provider. Net loss per common share -- basic and diluted -- was $(7.28) for the nine months ended September 30, 2017 compared to a net loss per common share -- basic and diluted -- of $(6.81) for the same period in 2016. Earnings Call About Pressure BioSciences, Inc. Forward Looking Statements For more information about PBI and this press release, please click on the following website link:
PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
For the Three Months For the Nine Months
Ended Ended
September 30, September 30,
------------------------ ------------------------
2017 2016 2017 2016
----------- ----------- ----------- -----------
Revenue:
Products, services,
other $ 603,726 $ 500,949 $ 1,610,124 $ 1,429,487
Grant revenue 42,335 34,385 127,666 127,289
----------- ----------- ----------- -----------
Total revenue 646,061 535,334 1,737,790 1,556,776
----------- ----------- ----------- -----------
Costs and expenses:
Cost of products and
services 328,743 262,894 852,039 727,698
Research and development 239,326 268,317 744,565 925,015
Selling and marketing 301,676 224,380 814,796 609,501
General and
administrative 901,588 231,550 2,655,054 1,853,010
----------- ----------- ----------- -----------
Total operating costs
and expenses 1,771,333 987,141 5,066,454 4,115,224
----------- ----------- ----------- -----------
Operating loss (1,125,272) (451,807) (3,328,664) (2,558,448)
Other (expense) income:
Interest expense, net (1,554,379) (1,116,328) (4,431,950) (2,961,708)
Other expense - (200) (1,039) (1,112)
Impairment loss on
investment - - (6,069) -
Incentive warrants for
warrant exercises - - (186,802) -
Gain on extinguishment
of debt 90,862 - 90,862 -
Change in fair value of
derivative liabilities 245,213 623,128 (26,014) (412,500)
----------- ----------- ----------- -----------
Total other expense (1,218,304) (493,400) (4,561,012) (3,375,320)
----------- ----------- ----------- -----------
Net loss (2,343,576) (945,207) (7,889,676) (5,933,768)
----------- ----------- ----------- -----------
Net loss per share
attributable to common
stockholders - basic
and diluted $ (2.07) $ (0.96) $ (7.28) $ (6.81)
Weighted average common
stock shares
outstanding used in the
basic and diluted net
loss per share
calculation 1,133,791 980,846 1,084,370 871,325
PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
September 30, December 31,
2017 2016
------------- -------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 18,723 $ 138,363
Accounts receivable, net of $28,169 reserve at
September 30, 2017 and December 31, 2016 548,316 281,320
Inventories, net of $20,000 reserve at
September 30, 2017 and December 31, 2016 1,122,782 905,284
Prepaid income taxes 7,482 7,405
Prepaid expenses and other current assets 146,278 258,103
------------- -------------
Total current assets 1,843,581 1,590,475
Investment in available-for-sale equity
securities 25,986 25,865
Property and equipment, net 19,004 9,413
------------- -------------
TOTAL ASSETS $ 1,888,571 $ 1,625,753
============= =============
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
Accounts payable $ 853,173 $ 407,249
Accrued employee compensation 298,675 249,596
Accrued professional fees and other 1,352,658 956,884
Deferred revenue 313,992 159,654
Revolving note payable, net of unamortized
debt discounts of $335,833 and $637,030,
respectively 3,164,167 612,970
Related party convertible debt, net of debt
discount of $65,240 and $0, respectively 225,894 -
Convertible debt, net of unamortized debt
discounts of $355,375 and $2,235,839,
respectively 6,315,995 4,005,702
Other debt, net of unamortized discounts of
$80,747 and $380, respectively 1,952,859 238,157
Warrant derivative liability - 1,685,108
Conversion option liability - 951,059
------------- -------------
Total current liabilities 14,477,413 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 61,592 87,527
------------- -------------
TOTAL LIABILITIES 14,539,005 10,009,171
------------- -------------
STOCKHOLDERS' DEFICIT
Series D Convertible Preferred Stock, $.01 par
value; 850 shares authorized; 300 shares
issued and outstanding on September 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; 80,570
shares issued and outstanding on September
30, 2017 and December 31, 2016, respectively 806 866
Series H Convertible Preferred Stock, $.01 par
value; 10,000 shares authorized; 10,000
shares issued and outstanding on September
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 September 30, 2017
and December 31, 2016, respectively - -
Series J Convertible Preferred Stock, $.01 par
value; 6,250 shares authorized; 3,458 shares
issued and outstanding on September 30, 2017
and December 31, 2016, respectively 34 35
Series K Convertible Preferred Stock, $.01 par
value; 15,000 shares authorized; 6,816 shares
issued and outstanding on September 30, 2017
and December 31, 2016, respectively 68 68
Common stock, $.01 par value; 100,000,000
shares authorized; 1,154,422 and 1,033,328
shares issued and outstanding on September
30, 2017 and December 31, 2016, respectively 11,544 10,333
Warrants to acquire common stock 9,721,627 6,325,102
Additional paid-in capital 29,976,405 27,544,265
Accumulated other comprehensive income 6,190 -
Accumulated deficit (52,367,211) (42,264,190)
------------- -------------
Total stockholders' deficit (12,650,434) (8,383,418)
------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 1,888,571 $ 1,625,753
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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) |
