Pressure BioSciences, Inc. Reports Second Quarter 2017 Financial Results and Provides Business Update
Total Revenue, Products & Services Revenue, Instrument Sales & Grant Activity All Increased Q/Q; New Five Person Field Sales Team Now Complete with Two Recent Additional Hires
Investor Conference Call Scheduled for Wednesday, August 16, 2017 at 4:30 PM EDT
SOUTH EASTON, MA -- (Marketwired) -- 08/16/17 -- Pressure BioSciences, Inc. (OTCQB: PBIO) ("PBI" or the "Company"), a leader in the development and sale of broadly enabling, pressure cycling technology ("PCT")-based sample preparation solutions to the worldwide life sciences industry, today announced financial results for the second quarter of 2017, provided a business update, and offered limited guidance on its growth plan for FY2017.
Financial Results: Q2 2017 vs. Q2 2016
Total revenue for the 2017 second quarter was $540,372 compared to $510,963 during the same period in 2016, an increase of $29,409 or 6%. This increase was primarily due to higher revenue from grant related activities and instrument sales, as described below. We believe total revenue will continue to increase over the remaining quarters of 2017.
Products and services revenue increased to $480,400 in Q2 2017 compared to $474,187 for the prior year same period, an increase of 1%. Comparing Q2 2017 to Q2 2016, instrument sales increased to $346,882 from $311,345 (an increase of 11%) while consumable sales decreased to $52,365 from $72,773 (a decrease of 28%). We believe products and services revenue will continue to increase over the remaining quarters of 2017.
Grant revenue increased to $59,972 in the second quarter 2017 from $36,776 in the prior year period, an increase of 63%. We believe grant revenue will continue to increase over the remaining quarters of 2017.
Operating loss increased to $1,204,291 in Q2 2017 from $1,060,697 for the same period in 2016, an increase of $143,594 or 14%. This increase was primarily due to a significant increase in sales and marketing expenses during Q2 2017 (an increase of $106,226, or 55%) combined with an increase in G&A expenses related to the hire of a CFO and an increase in investor relations and business development activities.
Net loss per common share -- basic and diluted -- was $(0.54) for the quarter ended June 30, 2017 compared to net income per common share of $1.11 (basic) and net loss per common share of $(0.03) (diluted) for the same period in 2016. Net income per common share for the period ended June 30, 2016 was primarily due to the impact of a favorable change in fair value of derivative liabilities amounting to $3,032,762.
Financial Results: First Half 2017 vs. First Half 2016
Total revenue for the 2017 first half was $1,091,729 compared to $1,021,442 for the prior year same period, an increase of $70,287 or 7%. This increase was primarily due to higher revenue from instrument sales, as described below. We believe total revenue will continue to increase over the remaining quarters of 2017.
Products and services revenue increased to $1,006,398 for the first half of 2017 compared to $928,538 for the same period in 2016, an increase of $77,860 or 8%. Comparing 1H 2017 to 1H 2016, instrument sales increased to $742,977 from $643,361 (an increase of 16%) while consumable sales decreased slightly to $115,629 from $117,008 (a decrease of 1%). We believe products and services revenue will continue to increase over the remaining quarters of 2017.
Grant revenue decreased to $85,331 in the 2017 first half from $92,904 in the prior year period, a decrease of $7,573 or 8%. We believe grant revenue will continue to increase over the remaining quarters of the year, as it did in Q2 2017.
Operating loss was $2,203,394 for the first six months of 2017, compared to a loss of $2,106,641 for the same period in 2016, an increase of $96,753 or 5%. This increase was primarily due to a significant increase in sales and marketing expenses during the first half of 2017 (an increase of $127,999, or 33%) combined with an increase in G&A expenses related to the hire of our CFO and an increase in investor relations and business development activities.
Net loss per common share was $(5.83) -- basic and diluted -- for the six months ended June 30, 2017 compared to a net loss per common share -- basic and diluted -- of $(6.11) for the same period in 2016.
Financial and Operational Highlights: Q2 2017
- April 17, 2017. The Company announced that Mr. Joseph L. Damasio, Jr. had joined PBI as its Vice President of Finance and Chief Financial Officer ("CFO") on April 10th.
- June 2, 2017. The Company announced a one-for-thirty reverse stock split.
- June 5, 2017. The Company announced that Professor Ruedi Aebersold, a world-renowned protein chemist and 2017 recipient of the prestigious Karger Medal (recognizing an individual "who has significantly contributed to the development of new bioanalytical methods") presented two Medal Lectures on state-of-the-art proteomics research during which he discussed PBI's PCT platform for sample preparation, a critical step in scientific analysis.
- June 6, 2017. The Company announced that its' recently released, next-generation PCT-based instrument (the Barocycler 2320EXTREME) was to be featured in multiple presentations at a major international scientific meeting (the American Society for Mass Spectrometry Annual Conference).
On August 15, 2017, PBI requested that the Securities and Exchange Commission ("SEC") consent to the withdrawal of the Company's Registration Statement on Form S-1 (File No. 333-215277), together with all exhibits. The Registration Statement was initially filed with the SEC on December 22, 2016.
Mr. Jeffrey N. Peterson, Chairman of PBI's Board of Directors, commented: "After much diligence, the PBI Board determined in the fall of 2016 that it would be in the best interests of PBI shareholders for the Company to raise approximately $12.5 million in an underwritten equity offering with a concomitant up-list to the NASDAQ Stock Market. The reverse stock split on June 5, 2017 was intended to help satisfy the minimum bid price requirement for initial listing on the NASDAQ Capital Market. However, due to market conditions, it was determined last week to not proceed with the offering. We believe that the offering is no longer in the best interests of shareholders."
"We made significant progress in several important areas during the second quarter," said Mr. Joseph L. Damasio, Jr., VP of Finance and CFO. "Specifically, (i) we worked closely with our contract manufacturer and raw materials vendors in an effort to reduce the costs of both the parts and assembly of our recently released, next generation Barocycler 2320EXTREME instrument; (ii) we renovated and moved into an expanded office, manufacturing, inventory, and storage space in our main South Easton facility; and (iii) we upgraded the systems and procedures used to analyze and track inventory, bill-of-materials, and costs-of-goods-sold. We also continued to show quarter-over-quarter growth in total revenue, products and services revenue, and instrument sales."
Mr. Richard T. Schumacher, President and CEO of PBI, commented: "In addition to the financial and logistical accomplishments addressed by Joe, we have made measurable progress in several key operational areas as well: (a) we completed the hire of our new, five-member field sales force -- all five hires have extensive experience in the sale of capital equipment to life sciences research labs nationwide. We expect all five sales directors to be fully trained and in the field between Labor Day and the end of September 2017, and that they will -- we believe -- have an increasing impact on sales, starting in Q3 2017; (b) we made measurable progress on our goal to upgrade the software on our Barocycler 2320EXT to GMP/GLP-compliance, which we believe will open up a significant market opportunity for the 2320EXT in the drug design, development, validation, manufacture, and quality control of biological drugs; and (c) we announced for the first time that we have filed a patent for 'ultra-shear technology,' which we believe could address a significant, unmet need in both the biopharma and 'clean label' food areas."
The Company will hold an Earnings Conference Call at 4:30 PM EDT on Wednesday, August 16, 2017. To attend this teleconference via telephone, Dial-in: (877) 407-8031 (North America), (201) 689-8031 (International). Verbal Passcode: PBIO Second Quarter 2017 Financial Call. Replay Number (877) 481-4010; (919) 882-2331 (International). Replay ID Number: 19976. Teleconference Replay Available for 30 days.
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 270 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.
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 first six months ended June 30, 2017 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, 2016, 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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|PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY|
|CONSOLIDATED STATEMENTS OF OPERATIONS|
|For the Three Months Ended
|For the Six Months Ended
|Products, services, other||$||480,400||$||474,187||$||1,006,398||$||928,538|
|Costs and expenses:|
|Cost of products and services||287,299||243,105||523,296||464,804|
|Research and development||241,783||321,428||505,239||656,698|
|Selling and marketing||300,111||193,885||513,120||385,121|
|General and administrative||915,470||813,242||1,753,468||1,621,460|
|Total operating costs and expenses||1,744,663||1,571,660||3,295,123||3,128,083|
|Other (expense) income:|
|Interest expense, net||(1,983,112||)||(1,010,236||)||(3,509,744||)||(1,845,380||)|
|Impairment loss on investment||-||-||(6,069||)||-|
|Incentive warrants for warrant exercises||(186,802||)||-||(186,802||)||-|
|Change in fair value of derivative liabilities||2,790,525||3,032,762||(271,227||)||(1,035,628||)|
|Total other income (expense)||620,531||2,022,526||(3,974,881||)||(2,881,920||)|
|Net (loss) income||(583,760||)||961,829||(6,178,275||)||(4,988,561||)|
|Net (loss) income per share attributable to common stockholders - basic||$||(0.54||)||$||1.11||$||(5.83||)||$||(6.11||)|
|Net (loss) income per share attributable to common stockholders - diluted||$||(0.54||)||$||(0.03||)||$||(5.83||)||$||(6.11||)|
|Weighted average common stock shares outstanding used in the basic net (loss) income per share calculation||1,077,529||865,128||1,059,250||816,035|
|Weighted average common stock shares outstanding used in the diluted net (loss) income per share calculation||1,077,529||2,358,754||1,059,250||816,035|
|PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY|
|CONSOLIDATED BALANCE SHEETS|
|June 30, 2017||December 31, 2016|
|Cash and cash equivalents||$||201,333||$||138,363|
|Accounts receivable, net of $28,169 reserve at June 30, 2017 and December 31, 2016||564,048||281,320|
|Inventories, net of $20,000 reserve at June 30, 2017 and December 31, 2016||1,131,488||905,284|
|Prepaid income taxes||7,405||7,405|
|Prepaid expenses and other current assets||175,910||258,103|
|Total current assets||2,080,184||1,590,475|
|Investment in available-for-sale equity securities||25,986||25,865|
|Property and equipment, net||21,314||9,413|
|LIABILITIES AND STOCKHOLDERS' DEFICIT|
|Accrued employee compensation||337,480||249,596|
|Accrued professional fees and other||1,354,615||956,884|
|Revolving note payable, net of unamortized debt discounts of $909,017 and $637,030, respectively||2,090,983||612,970|
|Related party convertible debt, net of debt discount of $99,065 and $0, respectively||192,069||-|
|Convertible debt, net of unamortized debt discounts of $1,037,619 and $2,235,839, respectively||5,633,751||4,005,702|
|Other debt, net of unamortized discounts of $111,771 and $380, respectively||1,769,376||238,157|
|Warrant derivative liability||1,950,681||1,685,108|
|Conversion option liability||907,386||951,059|
|Total current liabilities||15,162,825||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|
|Series D Convertible Preferred Stock, $.01 par value; 850 shares authorized; 300 shares issued and outstanding on June 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; 86,570 shares issued and outstanding on June 30, 2017 and December 31, 2016, respectively||866||866|
|Series H Convertible Preferred Stock, $.01 par value; 10,000 shares authorized; 10,000 shares issued and outstanding on June 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 June 30, 2017 and December 31, 2016, respectively||-||-|
|Series J Convertible Preferred Stock, $.01 par value; 6,250 shares authorized; 3,521 shares issued and outstanding on June 30, 2017 and December 31, 2016, respectively||35||35|
|Series K Convertible Preferred Stock, $.01 par value; 15,000 shares authorized; 6,816 shares issued and outstanding on June 30, 2017 and December 31, 2016, respectively||68||68|
|Common stock, $.01 par value; 100,000,000 shares authorized; 1,101,884 and 1,033,328 shares issued and outstanding on June 30, 2017 and December 31, 2016, respectively||11,019||10,333|
|Warrants to acquire common stock||7,082,460||6,325,102|
|Additional paid-in capital||28,234,884||27,544,265|
|Accumulated other comprehensive income||6,190||-|
|Total stockholders' deficit||(13,106,840||)||(8,383,418||)|
|TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT||$||2,127,484||$||1,625,753|
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)
Source: Pressure BioSciences, Inc.
Released August 16, 2017