Pressure BioSciences, Inc. Reports Second Quarter and Year-to-Date 2015 Financial Results and Provides Business Update

Q2 Products & Services Revenue Increases 8.5%, Consumable Sales Rise 16.7%, and Total Revenue Increases 34.4% Q/Q; First Half 2015 Total Revenue Up 20% Setting All-time Record

Investor Conference Call Scheduled for Monday, August 17, 2015 at 4:30 PM EDT

Aug 17, 2015, 09:18 ET from Pressure BioSciences, Inc.

SOUTH EASTON, Mass., Aug. 17, 2015 /PRNewswire/ -- Pressure BioSciences, Inc. (OTCQB: PBIO) ("PBI" or the "Company") today announced financial results for the three and six-month periods ended June 30, 2015, which included increases in all major revenue categories for the quarter and record total revenue for the half-year period. The Company also provided a business update, which included the sale last week of 1,000,000 shares of restricted common stock at a significant premium to market ($0.46/share) to one of the most recognized and respected portfolio/fund managers in Poland.  In return, in lieu of cash, the Company received 601,500 shares of Everest Investments, a publicly-traded company on the Main Market of the Warsaw Stock Exchange.

For the three months ended June 30, 2015, products and services revenue was $333,575 compared to $307,464 for the same period in 2014, an increase of 8.5%. Sales of consumables were $56,513 for the three months ended June 30, 2015 compared to $48,417 for the same period in 2014, an increase of 16.7%.Company operations included $79,529 of grant revenue for the second quarter of 2015 compared to no grant revenue for the comparable period in 2014. Total revenue for the 2015 second quarter was $413,104 compared to $307,464 for the same period in 2014, a 34.4% increase. This increase was due to increases in both product and services and grant revenue in the second quarter of 2015.

Operating loss for the 2015 second quarter was $1,063,889, compared to $846,757 for the same period in 2014. Operating expense increases were primarily due to an expansion of our market awareness program, our grant and investor relations programs in Poland, and increases in legal, patent, marketing, and research & development.

For the six months ended June 30, 2015, products and services revenue was $692,939 compared to $711,611 for the same period in 2014, a 2.6% decrease. Sales of consumables were $96,348 for the six months ended June 30, 2015 compared to $103,029 for the same period in 2014, a 6.5% decrease. Grant revenue for the six months ended June 30, 2015 was $160,299 compared to no revenue for the same period in 2014. Total revenue for the six months ended June 30, 2015 was $853,238 compared to $711,611 for the same period in 2014, a 20% increase.

Operating loss for the six months ended June 30, 2015 was $1,938,708 compared to $1,629,123 for the same period in 2014. Operating expense increases were primarily due to an expansion of our investor relations and market awareness programs, as well as to increases in legal, patent, marketing, and research & development.

Loss per common share – basic and diluted – was $0.07 for the second quarter of 2015 compared to $0.05 for the same period in 2014. Loss per common share – basic and diluted – was $0.14 for the six months ended June 30, 2015 compared to $0.30 for the same six-month period of 2014. 

Mr. Richard P. Thomley, Chief Financial Officer of PBI, commented: "During 2015, in an effort to better position the Company for growth and a potential up-list to a regulated exchange, we increased expenditures in several G&A areas. We believe our efforts have been successful to date, and that the level of such expenditures will be lower in the second half of 2015." 

Mr. Thomley continued: "Revenue continues to increase. In Q2 2015, we reported quarter over prior year quarter increases in products and services revenue, including consumables, as well as total revenue.  We followed our Q1 2015 record total revenue of $440,134 with a second straight $400,000+ quarter in Q2; we have never done this before. In line with previous guidance, we expect even stronger revenue growth in the second half of 2015.  Based on shipments-to-date, purchase orders received, and serious indications to purchase, we believe that total revenue will exceed half a million dollars in Q3, strongly supported by continued growth in products and services revenue."

Mr. Richard T. Schumacher, President and CEO of PBI, commented: "In addition to strong financial results, we achieved a number of other successes during Q2 and the six weeks that followed, including announcing that: 

  • we are collaborating with Southern University at New Orleans to develop methods for improving and extending applications of the PCT platform for DNA detection in forensic samples.
  • scientists from Northwestern Univ. used PCT to extract cotinine (metabolite of nicotine) from dried blood spots and theorized that PCT might also improve the extraction of other chemical toxins and carcinogens.
  • three scientific articles were published that show the key advantages of the PCT platform in drug discovery & design, cancer detection, and in the analysis of microbial communities in soil.
  • scientists from the Institute of Molecular Systems Biology in Zurich, Switzerland presented data on an improved method for the proteomic profiling and classification of prostate cancer tissue biopsy samples.
  • promising results were reported by forensic expert Dr. Bruce McCord when PCT was incorporated into a new method for improving the extraction of DNA from rape kits and other forensic samples.
  • Chinese and Swiss researchers suggested a PCT-based workflow that could potentially accelerate the discovery of new biomarkers for the early diagnosis and prediction of complications in diabetes.
  • PCT was a key workflow component in a study to discover potential biomarkers and underlying pathways in the emergence and progression of COPD-associated lung cancer.
  • the Company closed a $2,180,000 initial tranche of a $5 Million Private Placement.
  • the Company sold 1,000,000 shares of restricted Common Stock to Everest Investments Holdings at a purchase price of $0.50 per share. In return, in lieu of cash, the Company received 601,500 shares of Everest Investments, a publicly-traded company on the Main Market of the Warsaw Stock Exchange, The Everest Investments shares were valued at approximately $460,000 as of the closing date.

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.

Earnings Call

The Company will hold an Earnings Conference Call at 4:30 PM EDT on Monday, August 17, 2015.  To attend this teleconference via telephone: Dial-in: (877) 407-8031 (North America); (201) 689-8031 (International). Verbal Passcode (to be given to the operator): PBI Second Quarter 2015 Financial Conference Call, ID 13617772. For those unable to participate in the live teleconference, a replay will be available beginning on Tuesday, August 18, 2015, and will be accessible both by telephone and through the Company's website until September 17, 2015.  Replay Number: (877) 660-6853 (North America); (201) 612-7415 (International); Conference ID: 13617772.

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 quarter ended June 30, 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, 2014, 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
Please visit us on Facebook, LinkedIn, and Twitter. 

 


PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)






June 30,


December 31,

ASSETS

2015


2014

CURRENT ASSETS





Cash and cash equivalents

$38,175


$473,948


Accounts receivable

349,958


272,022


Inventories, net of $50,000 reserve at June 30, 2015 and December 31, 2014

783,891


850,552


Prepaid income taxes

7,381


7,381


Prepaid expenses and other current assets

151,481


104,204


Total current assets

1,330,886


1,708,107

Property and equipment, net

30,500


36,025

TOTAL ASSETS

$1,361,386


$1,744,132


LIABILITIES AND STOCKHOLDERS' DEFICIT




CURRENT LIABILITIES





Accounts payable

$979,479


$1,035,781


Accrued employee compensation

153,269


157,347


Accrued professional fees and other

803,789


719,432


Deferred revenue

73,364


27,117


Convertible debt, net of debt discount of $1,176,668 and $328,681,

respectively

1,083,353


1,004,513


Other debt

740,839


80,480


Warrant derivative liability

124,643


159,875


Conversion option liability

1,731,650


590,341


Total current liabilities

5,690,386


3,774,886

LONG TERM LIABILITIES





Deferred revenue

-


28,977

TOTAL LIABILITIES

5,690,386


3,803,863

COMMITMENTS AND CONTINGENCIES (Note 4)

STOCKHOLDERS' DEFICIT





Series D convertible preferred stock, $.01 par value; 850 shares authorized;

300 shares issued and outstanding on June 30, 2015 and Dec. 31, 2014

(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 June 30, 2015 and Dec. 31, 2014

866


866


Series H convertible preferred stock, $.01 par value; 10,000 shares authorized;

10,000 shares issued and outstanding on June 30, 2015 and Dec. 31, 2014

100


100


Series H2 convertible preferred stock $0.01 par value; 21 shares authorized; 21 shares issued and outstanding on June 30, 2015 and December 31, 2014                                     

-


-


Series J convertible preferred stock, $.01 par value; 6,250 shares authorized;

3,546 shares  issued and outstanding on June 30, 2015 and Dec. 31, 2014

36


36


Series K convertible preferred stock, $.01 par value; 15,000 shares authorized;

11,463 shares issued and outstanding on June 30, 2015 and Dec. 31, 2014

114


114


Common stock, $.01 par value; 65,000,000 shares authorized; 19,939,131 and 18,673,390 shares issued and outstanding on June 30, 2015 and on Dec. 31, 2014, respectively

199,391


186,734


Warrants to acquire common stock

5,347,054


5,253,566


Additional paid-in capital

25,037,861


24,617,564


Accumulated deficit

(34,914,425)


(32,118,714)


Total stockholders' deficit

(4,329,000)


(2,059,731)

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT

$1,361,386


$1,744,132

 

 

PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)













For the Three Months
Ended

For the Six Months 
Ended






June 30,

June 30,






2015


2014

2015


2014













Revenue:










Products, services, other


$333,575


$307,464

$692,939


$711,611



Grant revenue


79,529


 

-

160,299


-




Total revenue


413,104


307,464

853,238


711,611













Costs and expenses:










Cost of products and services


175,193


134,453

365,976


312,059



Research and development


291,402


253,238

523,325


484,326



Selling and marketing


200,178


196,074

366,401


367,414



General and administrative


810,220


570,456

1,536,244


1,176,935




Total operating costs and expenses


1,476,993


1,154,221

2,791,946


2,340,734















Operating loss


(1,063,889)


(846,757)

(1,938,708)


(1,629,123)













Other (expense) income:










Interest expense


(640,691)


(341,649)

(1,246,276)


(478,313)



Other expense


(168,111)


-

(513,352)


-



Gain on extinguishment of derivative liabilities


186,609


-

848,073


-



Change in fair value of derivative liabilities


299,841


585,219

78,031


(255,406)




Total other (expense) income


(322,352)


243,570

(833,524)


(733,719)














Net loss


(1,386,241)


(603,187)

(2,772,232)


(2,362,842)



Accrued dividends on convertible preferred stock


(6,811)


(9,606)

(23,479)


(54,593)



Deemed dividends on convertible preferred stock


-


(107,996)

-


(1,388,062)



Net loss applicable to common shareholders


$(1,393,052)


$(720,789)

$(2,795,711)


$(3,805,497)

























Net loss per share attributable to common stockholders - basic and
diluted

$(0.07)


$(0.05)

$(0.14)


$(0.30)














Weighted average common stock shares outstanding used in the
basic and diluted net loss per share calculation


19,682,632


13,567,472

19,247,895

12,848,751


 

Investor Contacts: 
Richard T. Schumacher, President & CEO, (508) 230-1828 (T)
Richard P. Thomley, Chief Financial Officer   

SOURCE Pressure BioSciences, Inc.



RELATED LINKS

http://www.pressurebiosciences.com