WEST BRIDGEWATER, Mass.--(BUSINESS WIRE)--Nov. 13, 2006--Pressure BioSciences, Inc. (NASDAQ: PBIO) today announced that revenue for the three months ended September 30, 2006 was $92,211 as compared to $11,742 for the three months ended September 30, 2005. This increase in revenue was driven by the sales of three PCT Sample Preparation Systems (PCT SPS) during the third quarter of 2006 (to Johns Hopkins University, the National Institutes of Health, and a state laboratory in Virginia). The Company incurred an operating loss from continuing operations of $829,835 in the third quarter of 2006, as compared to an operating loss from continuing operations of $538,902 in the same period of 2005. This increase in operating loss was the result of significant investments made in the Company's research and development and sales and marketing functions during 2006.
For the nine months ended September 30, 2006, revenue was $174,409 as compared to $21,984 for the nine months ended September 30, 2005. This increase in revenue was driven by the sales of five PCT Sample Preparation Systems during the first nine months of 2006 as compared to no PCT SPS sales during the same period in 2005. The Company incurred an operating loss from continuing operations of $2,987,098 during the first nine months of 2006, compared to an operating loss from continuing operations of $1,868,563 during the same period of 2005. The operating loss for 2006 includes $543,220 of non-cash, stock-based compensation charges incurred as per the provisions of Statement of Financial Accounting Standards Board Statement 123R "Share-Based Payment". This increase in operating loss was also the result of increased investments in all major areas of the Company's business, particularly research and development and sales and marketing. Consistent with its business strategy, the Company expects to continue to increase investments in all functional areas of its business in order to support the full commercialization of its novel and patented Pressure Cycling Technology (PCT).
As of September 30, 2006, the Company had cash and cash equivalents of approximately $5.9 million, total working capital of approximately $6.4 million, and marketable securities of approximately $2.5 million. Edward H. Myles, Vice President of Finance and CFO commented: "We are pleased to have made such significant and successful strides down the path towards full PCT commercialization, while concomitantly being able to closely manage our important financial resources."
Richard T. Schumacher, Founder, President, and CEO commented: "We continue to make significant progress in many areas of our business plan. In addition to filling key positions within our senior management team, building our R&D and marketing capabilities, and making measured progress in the development of new PCT-related products, we have also realized significant success in expanding our collaboration program with key scientific and industry leaders nationwide. We are extremely pleased that some of our collaborators have purchased the PCT Sample Preparation System following their evaluation, while others have published or presented data citing the clear benefits of PCT. We appreciate the work that our nearly 30 collaborators have done to date, and look forward to continuing to work with them as we build interest in this very important, enabling technology."
About Pressure BioSciences, Inc.
Pressure BioSciences, Inc. (PBI) is a publicly traded, early-stage company focused on the development of a novel, enabling technology called Pressure Cycling Technology (PCT). PCT uses cycles of hydrostatic pressure between ambient and ultra-high levels (up to 35,000 psi and greater) to control bio-molecular interactions. PBI currently holds 13 US and 5 foreign patents covering multiple applications of PCT in the life sciences field, including such areas as genomic and proteomic sample preparation, pathogen inactivation, the control of enzymes, immunodiagnostics, and protein purification.
Forward Looking Statements
Statements contained in this press release regarding the Company's intentions, hopes, beliefs, expectations, or predictions of the future are "forward-looking'' statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon the Company's current expectations, forecasts, and assumptions that are subject to risks, uncertainties, and other factors that could cause actual outcomes and results to differ materially from those indicated by these forward-looking statements. These risks, uncertainties, and other factors include, but are not limited to: possible difficulties or delays in the implementation of the Company's strategies that may adversely affect the Company's continued commercialization of its PCT Sample Preparation System; the Company's financial results for the three and nine months ended September 30, 2006 may not necessarily be indicative of future results as future revenues may not meet expectations due to changes in customers needs and technological innovations, and expenses may be higher than anticipated due to unforeseen cost increases; the Company's collaboration programs may not continue to be successful and may not result in the sale of additional PCT Systems to collaborators or others; and the Company may be unable to develop any new PCT-related products that achieve commercial acceptance. Additional risks and uncertainties that could cause actual results to differ materially from those indicated by these forward-looking statements are discussed under the heading "Risk Factors" in the Company's Quarterly Report on Form 10-QSB for the quarter ended September 30, 2006, in the Company's Annual Report on Form 10-KSB, as amended, for the year ended December 31, 2005, 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.
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Consolidated Statements of Operations (Unaudited)
For the Three Months For the Nine Months Ended
Ended
September 30, September 30,
----------------------- -------------------------
2006 2005 2006 2005
----------- ----------- ------------ ------------
(restated) (restated)
REVENUE:
PCT Products,
services, other $ 92,211 $ 11,742 $ 174,409 $ 21,984
----------- ----------- ------------ ------------
Total revenue 92,211 11,742 174,409 21,984
----------- ----------- ------------ ------------
COSTS AND EXPENSES:
Cost of PCT
products &
services 90,037 33,966 188,688 61,653
Research and
development 324,525 156,529 984,844 374,147
Selling and
marketing 127,419 39,954 322,803 93,590
General and
administrative 380,065 320,195 1,665,172 1,361,157
----------- ----------- ------------ ------------
Total operating
costs and
expenses 922,046 550,644 3,161,507 1,890,547
----------- ----------- ------------ ------------
Operating loss
from continuing
operations (829,835) (538,902) (2,987,098) (1,868,563)
OTHER INCOME
(EXPENSE):
Realized gain on
securities held
for sale - 2,838,491 517,938 2,838,491
Other operating,
net - (140,648) - (528,285)
Interest income 88,190 62,699 305,982 187,559
----------- ----------- ------------ ------------
Total other
income 88,190 2,760,542 823,920 2,497,765
(Loss) income
from continuing
operations
before income
taxes (741,645) 2,221,640 (2,163,178) 629,202
Income tax
benefit
(provision)
from continuing
operations 111,106 (912,671) 408,344 (457,535)
----------- ----------- ------------ ------------
(Loss) income
from continuing
operations (630,539) 1,308,969 (1,754,834) 171,667
Discontinued
operations:
(Loss) income from
discontinued
operations (net of
income tax benefit
of $1,720 and
provision of $913
for the three and
nine months ended
in 2005) - (3,340) - 1,995
Gain on sale of net
assets related to
discontinued
operations
(includes effect
of income taxes of
$701,699 in 2005) - 701,699 - 701,699
----------- ----------- ------------ ------------
Net income from
discontinued
operations - 698,359 - 703,694
=========== =========== ============ ============
Net (loss)
income $ (630,539) $2,007,328 $(1,754,834) $ 875,361
=========== =========== ============ ============
(Loss) income per
share from
continuing
operations - basic $ (0.26) $ 0.54 $ (0.72) $ 0.05
Income per share
from discontined
operations - basic $ - $ 0.29 $ - $ 0.23
----------- ----------- ------------ ------------
Net (loss) income
per share, basic $ (0.26) $ 0.83 $ (0.72) $ 0.28
=========== =========== ============ ============
(Loss) income per
share from
continuing
operations -
diluted $ (0.26) $ 0.52 $ (0.72) $ 0.05
Income per share
from discontined
operations -
diluted $ - $ 0.27 $ - $ 0.22
----------- ----------- ------------ ------------
Net (loss) income
per share, diluted $ (0.26) $ 0.79 $ (0.72) $ 0.27
=========== =========== ============ ============
Weighted average
number of
shares used to
calculate net
(loss) income
per share -
basic 2,422,675 2,424,189 2,424,351 3,157,495
Weighted average
number of
shares used to
calculate net
(loss) income
per share -
diluted 2,422,675 2,537,987 2,424,351 3,202,101
Condensed Consolidated Balance Sheet Data
September December 31,
30,
2006 2005
------------ ------------
(unaudited) (restated)
ASSETS
Cash and cash equivalents $ 5,850,427 $ 6,416,772
Escrow deposit related to sale of assets to
SeraCare - 1,117,305
Income tax receivable 781,457 531,122
Prepaid expenses, deposits, and other
current assets 410,933 476,436
------------ ------------
Total current assets 7,042,817 8,541,635
------------ ------------
PROPERTY AND EQUIPMENT, NET 200,146 282,780
Intangible assets, net 389,080 425,554
Assets transferred under contractual
arrangements 1,420,996 1,420,996
Investments in marketable securities 2,549,113 3,962,810
------------ ------------
Total other assets 4,359,189 5,809,360
------------ ------------
------------ ------------
TOTAL ASSETS $11,602,152 $14,633,775
============ ============
LIABILITIES
Current liabilities 689,393 800,899
Long term liabilities 1,926,380 2,468,275
------------ ------------
TOTAL LIABILITIES 2,615,773 3,269,174
------------ ------------
STOCKHOLDERS' EQUITY
Paid-in capital 6,290,745 6,051,262
Loan receivable from Director / CEO (1,000,000) (1,000,000)
Accumulated other comprehensive income 1,675,092 2,537,963
Retained earnings 2,020,542 3,775,376
------------ ------------
TOTAL STOCKHOLDERS' EQUITY 8,986,379 11,364,601
------------ ------------
------------ ------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $11,602,152 $14,633,775
============ ============
CONTACT: Pressure BioSciences, Inc.
Investor Contacts:
Richard T. Schumacher, 508-580-1818
President & CEO
or
Edward H. Myles, 508-580-1818
Vice President of Finance & CFO
SOURCE: Pressure BioSciences, Inc.