Human Pheromone Sciences Announces Third Quarter Results

Loss reduced despite revenue decline

Nov 14, 2011, 14:28 ET from Human Pheromone Sciences, Inc.

SAN JOSE, Calif., Nov. 14, 2011 /PRNewswire/ -- Human Pheromone Sciences, Inc. (OTC Bulletin Board: EROX) ("HPS" or "the Company") today announced results for the three and nine month periods ended September 30, 2011. For the three months ending September 30, 2011, net revenues of $113,000 represented a 46% decrease from the revenues of $210,000 in the prior year period; the resultant net loss of $30,000 ($0.01 per share) represented a 45% reduction from the $55,000 loss ($.01 per share) incurred in the same period of 2010.  For the nine month period ending September 30, 2011, net revenues of $423,000 were 27% lower than the previous year's $581,000, resulting in a net loss of $56,000 ($0.01 per share) as compared with a net loss of $215,000 ($0.05 per share) in the first nine months of 2010, a 74% decline.

According to a Company spokesperson, "The $97,000 decrease in revenues for the current year quarter is attributable to several factors, including timing of purchases by a domestic customer (in an earlier quarter this year) and an international client (scheduled for the fourth quarter of this year).  In addition, there was a $29,000 reduction in amortization of fees (non-cash revenues) previously received under the Company's agreement with Johnson & Johnson entered into in January 2006. The lower gross profit in the current quarter was more than mitigated by a $92,000 reduction in operating expenses, principally by lower spending for employee compensation and benefits, insurance and legal fees, under a program pro-actively adopted by the Company in late 2010 to address expected weaknesses in potential licensees investment in new technologies in both the domestic and international consumer markets."

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, 2010, and Form 10-Q for the three and nine months ended September 30, 2011,  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.

Tables follow

HUMAN PHEROMONE SCIENCES, INC.

Condensed Balance Sheets

(Dollars in thousands)

September 30,

December 31,

2011

2010

(Unaudited)

(Note 1)

Assets

Cash and cash equivalents

$             69

$              92

Accounts receivable

67

108

Inventories    

30

26

Other current assets

29

49

Total

$           195

$            275

Liabilities and shareholders' deficit

Accounts payable

$               39

$              42

Other current liabilities

98

102

Unapplied advance payment

100

-

Deferred income - current                                  

53

146

Deferred income – non-current                              

-

24

Common stock

21,098

21,098

Accumulated deficit

(21,193)

(21,137)

Total

$            195

$             275

Note 1 – Derived from audited financial statements

HUMAN PHEROMONE SCIENCES, INC.

Condensed Statements of Operations

(Unaudited)

(Dollars in thousands, except per-share data)

Three months ended

Nine months ended

September 30,

September 30,

2011

2010

2011

2010

Net revenue

$     113

$      210

$    423

$   581

Cost of goods sold

15

45

78

107

Research and development

4

7

14

40

Selling, general and administrative

124

213

385

647

Loss from operations

(30)

(55)

(54)

(213)

Other expense

-

-

1

-

Provision for income taxes

-

-

1

2

Net loss

$   (30)

$    (55)

$   (56)

$ (215)

Net loss per share -

  Basic:

$ (0.01)

$ (0.01)

$ (0.01)

$ (0.05)

  Fully diluted:

$ (0.01)

$ (0.01)

$ (0.01)

$ (0.05)

Weighted average common shares outstanding-

    Basic:

4,152

4,152

4,152

4,152

    Fully diluted:      

4,152

4,152

4,152

4,152

Net loss per share is based on the weighted average number of common shares and common equivalents outstanding during each period.  Certain common stock equivalents are excluded when their effect would be anti-dilutive.

SOURCE Human Pheromone Sciences, Inc.



RELATED LINKS

http://www.erox.com