a)

Approximately $1.4M was received in a private placement of fixed-rate convertible debentures during the quarter, bringing the total raised in our $5M PIPE to an over-subscribed amount of $6.3M.

b)

All five members of the Company's Board of Directors participated in the final close of the Company's $5M PIPE, with a total investment from the directors of approximately $165,000.

c)

Q1 2015 products & services revenue increased by approximately 26% over Q1 2015.

d)

We added a full-time, Ph.D. level electrical engineer to our R&D staff. 

e)

SCIEX, a global leader in life science analytical technologies, and a wholly-owned subsidiary of the Danaher Corporation, announced that they and PBI had entered into an exclusive co-marketing agreement.

f)

In a report focused on the exclusive co-marketing agreement between SCIEX and PBI, Emerging Growth LLC indicated the combination of the two companies' technologies could result in superior biological insights and discoveries, and in rapid and dramatic revenue growth for PBI.

g)

SCIEX and Children's Medical Research Center (Sydney, Australia) announced they had joined forces to advance the promise of precision medicine. The partners stated they would benefit from SCIEX's exclusive collaborators, including PBI, and from PBI's PCT platform for increased protein quantitation and reproducibility.

h)

PBI participated in a SCIEX workshop on new innovations towards industrialized proteomics at the US HUPO scientific conference in Boston (March 2016), marking the first time the two companies had presented together under their co-marketing agreement.

i)

We completed the build of the initial working model ("breadboard") of the new Barocycler 2320EXTREME, designed primarily for use in mass spectrometry protein sample preparation, including PCT-SWATH. We also came to an arrangement with a local ISO-certified contract manufacturer, purchased sufficient parts for 30 complete units, and started the build of the first true prototype unit.  

a)

Continue to implement a sound path toward financial self-sufficiency and future growth and profitability.

b)

Increase total, products & services, and grant revenues, as well as gross margins, quarter/quarter and year/year.

c)

Complete the manufacture of the Barocycler 2320 EXTREME and begin the commercialization phase for this robust, computer-driven, highly capable new pressure-generating instrument during Q2 2016.

d)

Support and expand our co-marketing program with SCIEX.

e)

Secure a strategic marketing and distribution partner for the Barozyme HT48 high throughput system and for the NMR and EPR PCT-based sample preparation systems.

f)

Implement an expanded marketing campaign for the patent-pending micro-Pestle consumable.

g)

Expand sales and marketing capabilities to reach into new countries, investigators, and fields-of-use.

h)

Continue to prepare for a targeted up-list to NASDAQ or the NYSEMKT.

PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

(UNAUDITED) 

(AUDITED) 

March 31, 2016

December 31, 2015

ASSETS

CURRENT ASSETS

Cash and cash equivalents

$

93,387

$

116,783

Accounts receivable

393,911

113,256

Inventories, net of $50,000 reserve at March 31, 2016 and December 31, 2015

966,549

1,038,371

Prepaid income taxes

7,381

7,381

Prepaid expenses and other current assets

337,505

213,926

Total current assets

1,798,733

1,489,717

Investment in available-for-sale equity securities

154,824

294,522

Property and equipment, net

13,951

20,149

TOTAL ASSETS

$

1,967,508

$

1,804,388

LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES

Accounts payable

$

780,136

$

941,389

Accrued employee compensation

214,119

176,009

Accrued professional fees and other

645,003

821,088

Deferred revenue

207,129

140,878

Convertible debt, net of debt discount of $0 at March 31, 2016 and December 31, 2015

100,000

100,000

Other debt, net of discount of $2,499 and $3,041, respectively

238,979

151,628

Warrant derivative liability

5,571,000

3,295,976

Conversion option liability

7,028,206

3,940,791

Total current liabilities

14,784,572

9,567,759

LONG TERM LIABILITIES

Related party convertible debt, net of debt discount of $288,930 and $0, respectively

2,074

-

Convertible debt, net of debt discount of $5,655,498 and $5,223,658, respectively

1,005,002

177,342

Deferred revenue

36,935

36,935

TOTAL LIABILITIES

15,828,583

9,782,036

STOCKHOLDERS' DEFICIT

Series D Convertible Preferred Stock, $.01 par value; 850 shares authorized; 300 shares issued and outstanding on March 31, 2016 and December 31, 2015, 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 March 31, 2016 and December 31, 2015, respectively

866

866

Series H Convertible Preferred Stock, $.01 par value; 10,000 shares authorized; 10,000 shares issued and outstanding on March 31, 2016 and December 31, 2015, respectively

100

100

Series H2 Convertible Preferred Stock, $.01 par value; 21 shares authorized; 21 shares issued and outstanding on March 31, 2016 and December 31, 2015, respectively

-

-

Series J Convertible Preferred Stock, $.01 par value; 6,250 shares authorized; 3,546 shares issued and outstanding on March 31, 2016 and December 31, 2015, respectively

36

36

Series K Convertible Preferred Stock, $.01 par value; 15,000 shares authorized; 11,416 shares issued and outstanding on March 31, 2016 and December 31, 2015, respectively

114

114

Common stock, $.01 par value; 100,000,000 shares authorized; 23,309,898 and 23,004,898 shares issued and outstanding on March 31, 2016 and December 31, 2015, respectively

233,100

230,050

Warrants to acquire common stock

5,416,681

5,416,681

Additional paid-in capital

26,240,345

26,036,733

Accumulated other comprehensive income

(244,723)

(105,025)

Accumulated deficit

(45,507,597)

(39,557,206)

Total stockholders' deficit

(13,861,075)

(7,977,648)

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT

$

1,967,508

$

1,804,388

PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

For the Three Months Ended
March 31,

2016

2015

Revenue:

Products, services, other

$

454,350

$

359,364

Grant revenue

56,128

80,770

Total revenue

510,478

440,134

Costs and expenses:

Cost of products and services

221,699

190,783

Research and development

335,270

231,923

Selling and marketing

191,236

166,223

General and administrative

808,218

726,024

Total operating costs and expenses

1,556,423

1,314,953

Operating loss

(1,045,945)

(874,819)

Other (expense) income:

Interest expense, net

(835,144)

(605,585)

Other expense

(912)

(36,913)

Change in fair value of derivative liabilities

(4,068,390)

(530,138)

Total other (expense) income

(4,904,446)

(1,172,636)

Net loss

(5,950,391)

(2,047,455)

Accrued dividends on convertible preferred stock

-

(16,668)

Net loss applicable to common shareholders

$

(5,950,391)

$

(2,064,123)

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

$

(0.26)

$

(0.11)

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

23,198,360

18,840,390

Investor Contacts:

Richard T. Schumacher, President & CEO  

 (508) 230-1828 (T)

Jeffrey N. Peterson, Chairman of the Board  

 (650) 812-8121 (T)