SOUTH EASTON, Mass., Nov. 15, 2011 (GLOBE NEWSWIRE) -- Pressure BioSciences, Inc. (Nasdaq:PBIO) ("PBI" or the "Company") today announced financial results for the three and nine months ended September 30, 2011.
Total revenue for the nine months ended September 30, 2011 was $651,751, of which $280,422 (or 43%) was achieved in the third quarter of 2011. Revenue from PCT products for the nine month period was $589,063, of which $217,734 (or 37%) was from the third quarter of 2011. We installed twenty-five PCT Sample Preparation Systems ("PCT SPS") year-to-date; eight were installed in the third quarter of 2011. Operating loss for the first nine months of 2011 was $2,421,707, of which $745,811 (or 31%) was from the third quarter of 2011. After the exclusion of non-cash charges, operating cash burn for the nine months ended September 30, 2011 was approximately $2,150,000, of which approximately $658,000 (or 31%) was from the 2011 third quarter.
In an August 31, 2011 press release, the Company reiterated its optimistic revenue and operational outlook for the third and fourth quarters of 2011, compared to the first two quarters of year. Among its expectations, the Company believed that total revenue during the second half of 2011 would increase significantly over the first half of 2011; that Q3 2011 PCT Products revenue would reach its highest level in the past year; and that sufficient capital would be raised to support its operations and growth plan during the second half of 2011, and beyond.
To that end, the Company today reported that for the third quarter of 2011:
- Total revenue was $280,422, compared to $190,686 for Q2 2011 (a 47% increase) and $180,643 for Q1 2011 (a 55% increase).
- PCT Products revenue was $217,734 - the highest level achieved in the past four quarters.
- Operating loss was $745,811, a decrease of approximately 11% from Q2 and Q1 2011.
- Cash burn was approximately $658,000, a decrease of approximately 11% from Q2 and Q1 2011.
Richard T. Schumacher, President and CEO of PBI, said: "In addition to these accomplishments, we reported other important successes during the third quarter of 2011, including: (a) the award of nearly $1 million in NIH and DoD grants; (b) heightened negotiations with potential worldwide distribution partners; (c) the market release of a new and novel high pressure instrument ("Barocycler HUB440"); and (d) the closing of a registered direct offering of approximately $850,000 in which Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann Financial Services Inc. (NYSE AMEX:LTS), acted as our exclusive placement agent. We believe such accomplishments will continue, including the ability to raise the capital necessary to fund our operations to profitability, and that these accomplishments will help secure a bright and successful future for all stakeholders of PBI."
About Pressure BioSciences, Inc.
Pressure BioSciences, Inc. ("PBI") (Nasdaq:PBIO) is focused on the development, marketing, and sale of proprietary laboratory instrumentation and associated consumables based on Pressure Cycling Technology ("PCT"). PCT is a patented, enabling technology platform with multiple applications in the estimated $6 billion life sciences sample preparation market. PCT uses cycles of hydrostatic pressure between ambient and ultra-high levels to control bio-molecular interactions. PBI currently focuses its efforts on the development and sale of PCT-enhanced sample preparation systems (instruments and consumables) for mass spectrometry, biomarker discovery, bio-therapeutics characterization, vaccine development, soil and plant biology, forensics, histology, and counter-bioterror applications.
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. Such forward looking statements include statements regarding total revenue for the second half of 2011 increasing significantly over the first half of 2011; our progress in finding a worldwide distribution partner; our ability to raise the capital needed to fund our operations to profitability; that our successes will continue; and that our accomplishments will help secure a bright and successful future for all stakeholders of PBI. 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: the Company's financial results for the quarter ended September 30, 2011 may not necessarily be indicative of future results as future revenues may not meet expectations due to the possible failure of the Company's products to achieve commercial acceptance, changes in customer's needs and technological innovations, and expenses that may be higher than anticipated due to unforeseen costs or cost increases; the risk that the Company may be unable to improve total revenue and PCT products revenue, the number of PCT Systems installations, and its operating loss and cash burn due to unexpected costs or increases in costs; possible difficulties or delays in the implementation of the Company's strategies that may adversely affect the Company's continued commercialization of its PCT-based product line; changes in customer's needs and technological innovations; and the Company may not be successful in selling the Company's PCT product line because scientists may not perceive the advantages of PCT over other sample preparation methods. Further, the Company will require additional working capital to fund its operations beyond February 2012, and there can be no assurance that the Company will be successful in obtaining such financing on acceptable terms, if at all. Further, if the NASDAQ Listing Qualifications Panel does not accept the Company's plan to regain compliance with the NASDAQ Listing Rule for minimum stockholder equity, the Company's common stock will be delisted from The NASDAQ Capital Market. 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 Annual Report on Form 10-K for the year ended December 31, 2010, as amended, in the Company's prospectus supplement dated November 10, 2011 filed with respect to the Company's registration Statement on Form S-3 (Registration No. 333-176828) and in 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 links:
http://www.pressurebiosciences.com
http://bit.ly/uA3B5c
| Consolidated Statements of Operations | ||||
| (Unaudited) | ||||
| For the Three Months Ended |
For the Nine Months Ended |
|||
| 30-Sep-11 | 30-Jun-11 | 31-Mar-11 | 30-Sep-11 | |
| REVENUE: | ||||
| PCT products, services, other | $217,734 | $190,686 | $180,643 | $589,063 |
| Grant revenue | 62,688 | -- | -- | 62,688 |
| Total revenue | 280,422 | 190,686 | 180,643 | 651,751 |
| COSTS AND EXPENSES: | ||||
| Cost of PCT products and services | 93,610 | 78,296 | 78,929 | 250,835 |
| Research and development | 248,188 | 263,809 | 218,965 | 730,962 |
| Selling and marketing | 193,975 | 242,544 | 303,839 | 740,358 |
| General and administrative | 490,460 | 448,314 | 412,529 | 1,351,303 |
| Total operating costs and expenses | 1,026,233 | 1,032,963 | 1,014,262 | 3,073,458 |
| Operating loss | (745,811) | (842,277) | (833,619) | (2,421,707) |
| Interest (expense) income | (39,358) | 75 | 254 | (39,029) |
| Change in fair value of warrant derivative liability | 223,446 | 84,021 | -- | 307,467 |
| Loss before income taxes | (561,723) | (758,181) | (833,365) | (2,153,269) |
| Income tax benefit | -- | -- | -- | -- |
| Net loss | (561,723) | (758,181) | (833,365) | (2,153,269) |
| Accrued interest on convertible debt | 5,208 | -- | -- | 5,208 |
| Accrued and deemed dividends on convertible preferred stock | (397,331) | (414,360) | (133,090) | (944,782) |
| Net loss applicable to common shareholders | $ (953,846) | $ (1,172,541) | $ (966,455) | $ (3,092,843) |
| Net loss per share attributable to common stockholders - basic and diluted | $ (0.15) | $ (0.41) | $ (0.34) | $ (0.50) |
| Weighted average common stock shares outstanding used in the basic and diluted net loss per share calculation | 6,253,349 | 2,874,305 | 2,836,971 | 6,228,585 |
| Cash Burn | (658,295) | (778,637) | (709,066) | (2,145,998) |
| Consolidated Balance Sheets | ||
| (Unaudited) | September 30, 2011 | December 31, 2010 |
| ASSETS | ||
| CURRENT ASSETS | ||
| Cash and cash equivalents | $ 296,970 | $ 552,849 |
| Restricted cash | -- | 20,014 |
| Accounts receivable | 115,028 | 233,846 |
| Inventories | 1,129,662 | 1,104,056 |
| Deposits | 6,472 | 6,472 |
| Prepaid income taxes | 4,739 | 1,442 |
| Prepaid expenses and other current assets | 128,250 | 296,756 |
| Total current assets | 1,681,121 | 2,215,435 |
| PROPERTY AND EQUIPMENT, NET | 98,181 | 192,777 |
| OTHER ASSETS | ||
| Intangible assets, net | 145,920 | 182,394 |
| TOTAL ASSETS | $ 1,925,222 | $ 2,590,606 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| CURRENT LIABILITIES | ||
| Accounts payable | $ 658,977 | $ 234,568 |
| Accrued employee compensation | 205,745 | 172,251 |
| Accrued professional fees and other | 304,183 | 337,698 |
| Deferred revenue | 20,826 | 27,153 |
| Short-term debt | 296,336 | -- |
| Warrant derivative liability | 284,437 | -- |
| Total current liabilities | 1,770,504 | 771,670 |
| LONG TERM LIABILITIES | ||
| Deferred revenue | 9,330 | 9,427 |
| TOTAL LIABILITIES | 1,779,834 | 781,097 |
| COMMITMENTS AND CONTINGENCIES | ||
| STOCKHOLDERS' EQUITY | ||
| Series A convertible preferred stock, $.01 par value; 313,960 shares authorized; 15,571 shares issued and outstanding on September 30, 2011 and 261,135 shares issued and outstanding on December 31, 2010 (Liquidation value of $179,070) | 155 | 2,621 |
| Series B convertible preferred stock, $.01 par value; 279,256 shares authorized; 1,348 shares issued and outstanding on September 30, 2011 and 88,711 shares on December 31, 2010 (Liquidation value of $25,342) | 13 | 887 |
| Series C convertible preferred stock, $.01 par value; 303,125 shares authorized; 88,098 shares issued and outstanding on September 30, 2011 and 0 shares on December 31, 2010 (Liquidation value of $1,101,225) | 881 | -- |
| Common stock, $.01 par value; 20,000,000 shares authorized; 6,353,016 shares issued and outstanding on September 30, 2011 and 2,711,750 shares issued and outstanding on December 31, 2010 | 63,530 | 27,118 |
| Warrants to acquire preferred stock and common stock | 1,823,852 | 1,248,909 |
| Additional paid-in capital | 12,802,216 | 12,095,237 |
| Accumulated deficit | (14,545,260) | (11,565,263) |
| Total stockholders' equity | 145,388 | 1,809,509 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,925,222 | $ 2,590,606 |