false --12-31 Q1 0000830656 0000830656 2024-01-01 2024-03-31 0000830656 2024-08-26 0000830656 2024-03-31 0000830656 2023-12-31 0000830656 us-gaap:ConvertibleDebtMember 2024-03-31 0000830656 us-gaap:ConvertibleDebtMember 2023-12-31 0000830656 us-gaap:RelatedPartyMember 2024-03-31 0000830656 us-gaap:RelatedPartyMember 2023-12-31 0000830656 PBIO:SeriesDGHH2JKAABBCCDDConvertiblePreferredStockMember 2024-03-31 0000830656 PBIO:SeriesDGHH2JKAABBCCDDConvertiblePreferredStockMember 2023-12-31 0000830656 2023-01-01 2023-03-31 0000830656 PBIO:ProductsServicesOtherMember 2024-01-01 2024-03-31 0000830656 PBIO:ProductsServicesOtherMember 2023-01-01 2023-03-31 0000830656 2022-12-31 0000830656 2023-03-31 0000830656 us-gaap:PreferredStockMember 2022-12-31 0000830656 us-gaap:CommonStockMember 2022-12-31 0000830656 us-gaap:WarrantMember 2022-12-31 0000830656 us-gaap:AdditionalPaidInCapitalMember 2022-12-31 0000830656 us-gaap:RetainedEarningsMember 2022-12-31 0000830656 us-gaap:PreferredStockMember 2023-12-31 0000830656 us-gaap:CommonStockMember 2023-12-31 0000830656 us-gaap:WarrantMember 2023-12-31 0000830656 us-gaap:AdditionalPaidInCapitalMember 2023-12-31 0000830656 us-gaap:RetainedEarningsMember 2023-12-31 0000830656 us-gaap:PreferredStockMember 2023-01-01 2023-12-31 0000830656 us-gaap:CommonStockMember 2023-01-01 2023-12-31 0000830656 us-gaap:WarrantMember 2023-01-01 2023-12-31 0000830656 us-gaap:AdditionalPaidInCapitalMember 2023-01-01 2023-12-31 0000830656 us-gaap:RetainedEarningsMember 2023-01-01 2023-12-31 0000830656 2023-01-01 2023-12-31 0000830656 us-gaap:CommonStockMember 2023-01-01 2023-03-31 0000830656 us-gaap:PreferredStockMember 2023-01-01 2023-03-31 0000830656 us-gaap:PreferredStockMember 2024-01-01 2024-03-31 0000830656 us-gaap:CommonStockMember 2024-01-01 2024-03-31 0000830656 us-gaap:WarrantMember 2024-01-01 2024-03-31 0000830656 us-gaap:AdditionalPaidInCapitalMember 2024-01-01 2024-03-31 0000830656 us-gaap:RetainedEarningsMember 2024-01-01 2024-03-31 0000830656 us-gaap:PreferredStockMember 2023-03-31 0000830656 us-gaap:CommonStockMember 2023-03-31 0000830656 us-gaap:WarrantMember 2023-03-31 0000830656 us-gaap:AdditionalPaidInCapitalMember 2023-03-31 0000830656 us-gaap:RetainedEarningsMember 2023-03-31 0000830656 us-gaap:PreferredStockMember 2024-03-31 0000830656 us-gaap:CommonStockMember 2024-03-31 0000830656 us-gaap:WarrantMember 2024-03-31 0000830656 us-gaap:AdditionalPaidInCapitalMember 2024-03-31 0000830656 us-gaap:RetainedEarningsMember 2024-03-31 0000830656 PBIO:WebsiteMember 2024-03-31 0000830656 PBIO:LessWebsiteAmortizationMember 2024-03-31 0000830656 PBIO:CustomerListMember 2024-03-31 0000830656 PBIO:LessCustomerListAmortizationMember 2024-03-31 0000830656 PBIO:UncleBudsAcquisitionIncMember 2024-01-01 2024-03-31 0000830656 PBIO:NexityGlobalSAMember 2024-01-01 2024-03-31 0000830656 PBIO:NexityGlobalSAMember 2024-03-31 0000830656 srt:NorthAmericaMember 2024-01-01 2024-03-31 0000830656 srt:NorthAmericaMember 2023-01-01 2023-03-31 0000830656 srt:EuropeMember 2024-01-01 2024-03-31 0000830656 srt:EuropeMember 2023-01-01 2023-03-31 0000830656 srt:AsiaMember 2024-01-01 2024-03-31 0000830656 srt:AsiaMember 2023-01-01 2023-03-31 0000830656 PBIO:HardwareMember 2024-01-01 2024-03-31 0000830656 PBIO:HardwareMember 2023-01-01 2023-03-31 0000830656 PBIO:ConsumablesMember 2024-01-01 2024-03-31 0000830656 PBIO:ConsumablesMember 2023-01-01 2023-03-31 0000830656 PBIO:ContractResearchServicesMember 2024-01-01 2024-03-31 0000830656 PBIO:ContractResearchServicesMember 2023-01-01 2023-03-31 0000830656 PBIO:SamplePreparationAccessoriesMember 2024-01-01 2024-03-31 0000830656 PBIO:SamplePreparationAccessoriesMember 2023-01-01 2023-03-31 0000830656 PBIO:ConsumerProductsMember 2024-01-01 2024-03-31 0000830656 PBIO:ConsumerProductsMember 2023-01-01 2023-03-31 0000830656 PBIO:AgrochemProductsMember 2024-01-01 2024-03-31 0000830656 PBIO:AgrochemProductsMember 2023-01-01 2023-03-31 0000830656 PBIO:TechnicalSupportExtendedServiceContractsMember 2024-01-01 2024-03-31 0000830656 PBIO:TechnicalSupportExtendedServiceContractsMember 2023-01-01 2023-03-31 0000830656 us-gaap:ShippingAndHandlingMember 2024-01-01 2024-03-31 0000830656 us-gaap:ShippingAndHandlingMember 2023-01-01 2023-03-31 0000830656 PBIO:OtherMember 2024-01-01 2024-03-31 0000830656 PBIO:OtherMember 2023-01-01 2023-03-31 0000830656 PBIO:TransferredAtAPointInTimeMember 2024-01-01 2024-03-31 0000830656 PBIO:TransferredAtAPointInTimeMember 2023-01-01 2023-03-31 0000830656 PBIO:TransferredOverAtTimeMember 2024-01-01 2024-03-31 0000830656 PBIO:TransferredOverAtTimeMember 2023-01-01 2023-03-31 0000830656 PBIO:TwoThousandAndTwentyFourMember 2024-03-31 0000830656 PBIO:TwoThousandAndTwentyFiveMember 2024-03-31 0000830656 PBIO:TopFiveCustomersMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2024-01-01 2024-03-31 0000830656 PBIO:TopFiveCustomersMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2023-01-01 2023-03-31 0000830656 PBIO:TopFiveCustomersMember us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2024-01-01 2024-03-31 0000830656 PBIO:TopFiveCustomersMember us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2023-01-01 2023-12-31 0000830656 PBIO:EmployeeStockOptionsMember 2024-01-01 2024-03-31 0000830656 PBIO:EmployeeStockOptionsMember 2023-01-01 2023-03-31 0000830656 us-gaap:ConvertibleDebtSecuritiesMember 2024-01-01 2024-03-31 0000830656 us-gaap:ConvertibleDebtSecuritiesMember 2023-01-01 2023-03-31 0000830656 PBIO:CommonStockWarrantsMember 2024-01-01 2024-03-31 0000830656 PBIO:CommonStockWarrantsMember 2023-01-01 2023-03-31 0000830656 PBIO:SeriesDConvertiblePreferredStockMember 2024-01-01 2024-03-31 0000830656 PBIO:SeriesDConvertiblePreferredStockMember 2023-01-01 2023-03-31 0000830656 PBIO:SeriesAAConvertiblePreferredStockMember 2024-01-01 2024-03-31 0000830656 PBIO:SeriesAAConvertiblePreferredStockMember 2023-01-01 2023-03-31 0000830656 PBIO:SeriesBBConvertiblePreferredStockMember 2024-01-01 2024-03-31 0000830656 PBIO:SeriesBBConvertiblePreferredStockMember 2023-01-01 2023-03-31 0000830656 PBIO:SeriesCCConvertiblePreferredStockMember 2024-01-01 2024-03-31 0000830656 PBIO:SeriesCCConvertiblePreferredStockMember 2023-01-01 2023-03-31 0000830656 PBIO:SeriesDDConvertiblePreferredStockMember 2024-01-01 2024-03-31 0000830656 PBIO:SeriesDDConvertiblePreferredStockMember 2023-01-01 2023-03-31 0000830656 PBIO:EmployeesOfficersMember 2024-01-01 2024-03-31 0000830656 PBIO:EmployeesOfficersMember srt:MinimumMember 2024-01-01 2024-03-31 0000830656 PBIO:EmployeesOfficersMember srt:MaximumMember 2024-01-01 2024-03-31 0000830656 us-gaap:CostOfSalesMember 2024-01-01 2024-03-31 0000830656 us-gaap:CostOfSalesMember 2023-01-01 2023-03-31 0000830656 us-gaap:ResearchAndDevelopmentExpenseMember 2024-01-01 2024-03-31 0000830656 us-gaap:ResearchAndDevelopmentExpenseMember 2023-01-01 2023-03-31 0000830656 PBIO:ConsumerProductsMember 2024-01-01 2024-03-31 0000830656 PBIO:ConsumerProductsMember 2023-01-01 2023-03-31 0000830656 us-gaap:SellingAndMarketingExpenseMember 2024-01-01 2024-03-31 0000830656 us-gaap:SellingAndMarketingExpenseMember 2023-01-01 2023-03-31 0000830656 us-gaap:GeneralAndAdministrativeExpenseMember 2024-01-01 2024-03-31 0000830656 us-gaap:GeneralAndAdministrativeExpenseMember 2023-01-01 2023-03-31 0000830656 us-gaap:EquitySecuritiesMember 2024-03-31 0000830656 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel1Member 2024-03-31 0000830656 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel2Member 2024-03-31 0000830656 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel3Member 2024-03-31 0000830656 us-gaap:FairValueInputsLevel1Member 2024-03-31 0000830656 us-gaap:FairValueInputsLevel2Member 2024-03-31 0000830656 us-gaap:FairValueInputsLevel3Member 2024-03-31 0000830656 us-gaap:EquitySecuritiesMember 2023-12-31 0000830656 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel1Member 2023-12-31 0000830656 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel2Member 2023-12-31 0000830656 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel3Member 2023-12-31 0000830656 us-gaap:FairValueInputsLevel1Member 2023-12-31 0000830656 us-gaap:FairValueInputsLevel2Member 2023-12-31 0000830656 us-gaap:FairValueInputsLevel3Member 2023-12-31 0000830656 srt:ProFormaMember 2024-01-01 2024-03-31 0000830656 srt:ProFormaMember 2023-01-01 2023-03-31 0000830656 PBIO:UncleBudsAcquisitionIncMember 2024-03-31 0000830656 PBIO:EstimateOfFairValueMember 2024-03-31 0000830656 2024-01-09 2024-01-09 0000830656 2024-01-09 0000830656 PBIO:UncleBudsAcquisitionIncMember 2024-01-09 2024-01-09 0000830656 PBIO:UncleBudsAcquisitionIncMember 2024-01-09 0000830656 PBIO:MedfordLeaseMember 2024-01-01 2024-03-31 0000830656 PBIO:MedfordLeaseMember 2024-03-31 0000830656 PBIO:CantonLeaseMember 2024-02-05 2024-02-05 0000830656 PBIO:CantonLeaseMember 2024-03-31 0000830656 PBIO:SparksLeaseMember 2021-08-08 2021-08-09 0000830656 PBIO:SparksLeaseMember 2024-03-31 0000830656 PBIO:TargetDiscoveryIncMember 2012-04-01 2012-04-30 0000830656 PBIO:TargetDiscoveryIncMember 2023-01-01 2023-03-31 0000830656 PBIO:TargetDiscoveryIncMember 2024-01-01 2024-03-31 0000830656 us-gaap:ConvertibleDebtMember 2024-01-01 2024-03-31 0000830656 srt:MinimumMember us-gaap:ConvertibleDebtMember 2024-01-01 2024-03-31 0000830656 srt:MaximumMember us-gaap:ConvertibleDebtMember 2023-01-01 2023-03-31 0000830656 srt:MinimumMember us-gaap:ConvertibleDebtMember 2024-03-31 0000830656 srt:MaximumMember us-gaap:ConvertibleDebtMember 2024-03-31 0000830656 us-gaap:ConvertibleCommonStockMember us-gaap:ConvertibleDebtMember 2024-03-31 0000830656 us-gaap:ConvertiblePreferredStockMember us-gaap:ConvertibleDebtMember 2023-12-31 0000830656 us-gaap:ConvertibleDebtMember 2024-03-31 0000830656 PBIO:PBIAgrochemIncMember 2024-03-31 0000830656 PBIO:OneLendersMember PBIO:ForbearanceAgreementsMember 2024-01-01 2024-03-31 0000830656 PBIO:NewLoanMember 2024-03-31 0000830656 PBIO:NewLoanMember 2024-01-01 2024-03-31 0000830656 PBIO:TwentyOneLoansMember 2024-01-01 2024-03-31 0000830656 us-gaap:CommonStockMember PBIO:TwentyOneLoansMember 2024-01-01 2024-03-31 0000830656 PBIO:ShortTermNonConvertibleLoanMember 2024-01-01 2024-03-31 0000830656 PBIO:ShortTermNonConvertibleLoanMember srt:MinimumMember 2024-03-31 0000830656 PBIO:ShortTermNonConvertibleLoanMember srt:MaximumMember 2024-03-31 0000830656 us-gaap:ConvertibleDebtMember 2024-01-01 2024-03-31 0000830656 PBIO:ShortTermNonConvertibleLoanMember 2024-03-31 0000830656 PBIO:ShortTermNonConvertibleLoanMember 2023-12-31 0000830656 us-gaap:InvestorMember 2024-01-01 2024-03-31 0000830656 us-gaap:InvestorMember 2024-03-31 0000830656 us-gaap:InvestorMember 2023-01-01 2023-12-31 0000830656 us-gaap:InvestorMember 2023-12-31 0000830656 PBIO:OthersMember srt:MinimumMember 2024-01-01 2024-03-31 0000830656 PBIO:OthersMember srt:MaximumMember 2024-01-01 2024-03-31 0000830656 PBIO:OthersMember srt:MinimumMember 2024-03-31 0000830656 PBIO:OthersMember srt:MaximumMember 2024-03-31 0000830656 PBIO:OthersMember 2024-03-31 0000830656 PBIO:OthersMember srt:MinimumMember 2023-01-01 2023-12-31 0000830656 PBIO:OthersMember srt:MaximumMember 2023-01-01 2023-12-31 0000830656 PBIO:OthersMember srt:MinimumMember 2023-12-31 0000830656 PBIO:OthersMember srt:MaximumMember 2023-12-31 0000830656 PBIO:OthersMember 2023-12-31 0000830656 us-gaap:ConvertibleDebtMember PBIO:FiveDayAverageVWAPMember 2024-03-31 0000830656 us-gaap:ConvertibleDebtMember PBIO:SeriesAAPreferredStockMember 2024-01-01 2024-03-31 0000830656 PBIO:ConvertibleDebtOneMember 2024-01-01 2024-03-31 0000830656 PBIO:ConvertibleDebtThreeMember 2024-01-01 2024-03-31 0000830656 PBIO:ConvertibleDebtFourMember 2024-01-01 2024-03-31 0000830656 srt:ChiefExecutiveOfficerMember 2024-03-31 0000830656 PBIO:NonConvertibleLoansMember 2024-03-31 0000830656 PBIO:NonConvertibleLoansMember 2023-12-31 0000830656 PBIO:MerchantDebtMember 2024-03-31 0000830656 PBIO:MerchantDebtMember 2023-12-31 0000830656 PBIO:SBAMember 2024-03-31 0000830656 PBIO:SBAMember 2023-12-31 0000830656 PBIO:PayrollProtectionProgramMember 2020-12-31 0000830656 PBIO:PaycheckProtectionProgrammeMember 2021-12-31 0000830656 PBIO:MerchantAgreementMember srt:MinimumMember 2023-12-31 0000830656 PBIO:MerchantAgreementMember srt:MaximumMember 2023-12-31 0000830656 PBIO:MerchantAgreementMember 2024-01-01 2024-03-31 0000830656 PBIO:MerchantAgreementMember 2023-01-01 2023-12-31 0000830656 PBIO:MerchantDebtMember 2024-01-01 2024-03-31 0000830656 PBIO:NonConvertibleDebtMember 2024-03-31 0000830656 PBIO:OfficersAndDirectorsMember 2024-03-31 0000830656 PBIO:OfficersAndDirectorsMember 2024-01-01 2024-03-31 0000830656 PBIO:OfficersAndDirectorsMember 2023-12-31 0000830656 PBIO:OfficersAndDirectorsMember 2023-01-01 2023-12-31 0000830656 PBIO:OtherRelatedPartiesMember 2024-03-31 0000830656 PBIO:OtherRelatedPartiesMember 2024-01-01 2024-03-31 0000830656 PBIO:OtherRelatedPartiesMember 2023-12-31 0000830656 PBIO:OtherRelatedPartiesMember 2023-01-01 2023-12-31 0000830656 us-gaap:RelatedPartyMember 2024-01-01 2024-03-31 0000830656 us-gaap:RelatedPartyMember 2023-01-01 2023-12-31 0000830656 us-gaap:RelatedPartyMember 2024-03-31 0000830656 us-gaap:RelatedPartyMember 2023-12-31 0000830656 us-gaap:RelatedPartyMember srt:MinimumMember 2024-03-31 0000830656 us-gaap:RelatedPartyMember srt:MaximumMember 2024-03-31 0000830656 us-gaap:PreferredStockMember 2024-03-31 0000830656 PBIO:SeriesDDConvertiblePreferredStockMember 2024-03-31 0000830656 PBIO:SeriesBBPreferredStockMember 2024-03-31 0000830656 PBIO:SeriesBBPreferredStockMember 2024-01-01 2024-03-31 0000830656 PBIO:SeriesCCPreferredStockMember 2024-01-01 2024-03-31 0000830656 PBIO:SeriesBBConvertiblePreferredStockMember 2024-01-01 2024-03-31 0000830656 PBIO:SeriesBBConvertiblePreferredStockMember 2024-03-31 0000830656 PBIO:AccreditedInvestorAndConsultantsMember 2024-01-01 2024-03-31 0000830656 PBIO:SeriesBBPreferredStockMember us-gaap:PreferredStockMember 2024-01-01 2024-03-31 0000830656 PBIO:SeriesDDPreferredStockMember 2024-01-01 2024-03-31 0000830656 PBIO:UnvestedStockBasedAwardsMember 2024-03-31 0000830656 PBIO:UnvestedStockBasedAwardsMember 2024-01-01 2024-03-31 0000830656 PBIO:StockOptionsMember 2024-03-31 0000830656 PBIO:StockOptionsMember 2024-01-01 2024-03-31 0000830656 PBIO:ExercisableOptionsMember 2024-01-01 2024-03-31 0000830656 PBIO:AccreditedInvestorAndConsultantsMember us-gaap:RestrictedStockMember 2024-01-01 2024-03-31 0000830656 PBIO:SeriesAAConvertiblePreferredStockMember 2024-03-31 0000830656 PBIO:SeriesAAConvertiblePreferredStockMember 2023-12-31 0000830656 PBIO:SeriesBBConvertiblePreferredStockMember 2023-12-31 0000830656 PBIO:SeriesCCConvertiblePreferredStockMember 2024-03-31 0000830656 PBIO:SeriesCCConvertiblePreferredStockMember 2023-12-31 0000830656 PBIO:SeriesDDConvertiblePreferredStockMember 2023-12-31 0000830656 PBIO:StockOptionsMember 2023-12-31 0000830656 PBIO:ExercisePriceRangeOneMember 2024-01-01 2024-03-31 0000830656 PBIO:ExercisePriceRangeOneMember 2024-03-31 0000830656 PBIO:ExercisePriceRangeTwoMember 2024-01-01 2024-03-31 0000830656 PBIO:ExercisePriceRangeTwoMember 2024-03-31 0000830656 us-gaap:ParentMember 2024-01-01 2024-03-31 0000830656 PBIO:IndustrialMember 2024-01-01 2024-03-31 0000830656 PBIO:ConsumerMember 2024-01-01 2024-03-31 0000830656 PBIO:TotalsMember 2024-01-01 2024-03-31 0000830656 us-gaap:ParentMember 2023-01-01 2023-03-31 0000830656 PBIO:IndustrialMember 2023-01-01 2023-03-31 0000830656 PBIO:ConsumerMember 2023-01-01 2023-03-31 0000830656 PBIO:TotalsMember 2023-01-01 2023-03-31 0000830656 us-gaap:ParentMember 2024-03-31 0000830656 PBIO:IndustrialMember 2024-03-31 0000830656 PBIO:ConsumerMember 2024-03-31 0000830656 PBIO:TotalsMember 2024-03-31 0000830656 us-gaap:ParentMember 2023-03-31 0000830656 PBIO:IndustrialMember 2023-03-31 0000830656 PBIO:ConsumerMember 2023-03-31 0000830656 PBIO:TotalsMember 2023-03-31 0000830656 us-gaap:SubsequentEventMember 2024-08-23 0000830656 us-gaap:SubsequentEventMember srt:MinimumMember 2024-08-23 0000830656 us-gaap:SubsequentEventMember srt:MaximumMember 2024-08-23 0000830656 us-gaap:SubsequentEventMember 2024-04-01 2024-08-23 0000830656 srt:ScenarioForecastMember 2024-04-01 2024-04-01 0000830656 us-gaap:SubsequentEventMember PBIO:SeriesBBPreferredStockMember 2024-04-01 2024-08-23 0000830656 PBIO:SeriesBBConvertiblePreferredStockMember us-gaap:SubsequentEventMember 2024-08-23 0000830656 us-gaap:SubsequentEventMember PBIO:SeriesBBConvertiblePreferredStockMember 2024-04-01 2024-08-23 0000830656 us-gaap:CommonStockMember us-gaap:SubsequentEventMember 2024-08-26 0000830656 us-gaap:SubsequentEventMember PBIO:SeriesBBXConvertiblePreferredStockMember 2024-05-29 0000830656 us-gaap:SubsequentEventMember PBIO:SeriesDDConvertiblePreferredStockMember 2024-05-29 iso4217:USD xbrli:shares iso4217:USD xbrli:shares PBIO:Integer xbrli:pure

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

 

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the quarterly period ended March 31, 2024

 

or

 

Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the transition period from _____________ to _____________

 

Commission File Number 001-38185

 

PRESSURE BIOSCIENCES, INC.

(Exact name of registrant as specified in its charter)

 

Massachusetts   04-2652826
(State or other jurisdiction of   (I.R.S. Employer
incorporation or organization)   Identification No.)

 

440 Neponset Street, Unit 10B

Canton, Massachusetts

  02021
(Address of principal executive offices)   (Zip Code)

 

(508) 230-1828

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
N/A   N/A   N/A

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

 

Yes ☐ No

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

 

Yes ☐ No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

 

  Large accelerated filer Accelerated filer
  Non-accelerated Filer Smaller Reporting Company
  Emerging Growth Company    

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Exchange Act Rule 12b-2 of the Exchange Act).

 

☐ Yes No

 

The number of shares outstanding of the Issuer’s common stock as of August 26, 2024 was 37,379,297.

 

 

 

 

 

 

TABLE OF CONTENTS

 

  Page
   
PART I - FINANCIAL INFORMATION 3
   
Item 1. Unaudited Financial Statements 3
   
Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 3
   
Consolidated Statements of Operations for the Three Months Ended March 31, 2024 and 2023 4
   
Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 5
   
Consolidated Statements of Changes in Stockholders’ Deficit for the Three Months Ended March 31, 2024 and 2023 6
   
Notes to Unaudited Consolidated Financial Statements 8
   
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 27
   
Item 3. Quantitative and Qualitative Disclosure About Market Risk 30
   
Item 4. Controls and Procedures 30
   
PART II - OTHER INFORMATION 32
   
Item 1. Legal Proceedings 32
   
Item 1A. Risk Factors 32
   
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 32
   
Item 3. Defaults Upon Senior Securities 32
   
Item 4. Mine Safety Disclosures 32
   
Item 5. Other Information 32
   
Item 6. Exhibits 33
   
SIGNATURES 34

 

Pressure BioSciences, Inc.

March 31, 2024 10Q Report

2
 

 

PART I - FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

PRESSURE BIOSCIENCES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

   March 31, 2024   December 31, 2023 
ASSETS          
CURRENT ASSETS          
Cash and cash equivalents  $3,220   $81,279 
Accounts receivable   144,639    151,234 
Inventories, net of $1,583,190 and $1,021,812 reserve, respectively   596,863    304,909 
Prepaid expenses and other current assets   211,354    222,633 
UB Exchange Account   1,181    - 
Total current assets   957,257    760,055 
Investment in equity securities   66,031    61,876 
Property and equipment, net   78,452    84,930 
Right of use asset operating leases   565,409    142,815 
Intangible assets, net   596,404    - 
Goodwill   4,727,976    - 
TOTAL ASSETS  $6,991,529   $1,049,676 
           
LIABILITIES AND STOCKHOLDERS’ DEFICIT          
CURRENT LIABILITIES          
Accounts payable  $2,438,755   $1,320,432 
Accrued employee compensation   177,453    191,578 
Accrued professional fees and other   3,539,910    2,860,509 
Accrued interest and dividends payable   6,620,620    5,306,353 
Deferred revenue   233,459    233,850 
Convertible debt, net of unamortized debt discounts of $403,060 and $645,471, respectively   23,517,372    20,683,841 
Other debt, net of unamortized discounts of $0 and $0, respectively   2,152,748    1,264,162 
Related party, net of unamortized debt discount of $0 and $0, respectively   682,252    648,500 
Right of use operating lease liability   204,886    66,895 
Series BB Convertible Preferred Shares Liability   1,725,000    1,000,000 
Series DD Convertible Preferred Shares Liability   1,066,800    - 
Options Payable (Note 4)   2,210,060    - 
Total current liabilities   44,569,315    33,576,120 
LONG TERM LIABILITIES          
Long term debt   161,182    161,864 
Right of use operating lease liability long term   379,661    60,961 
Deferred revenue   8,167    4,560 
TOTAL LIABILITIES   45,118,325    33,803,505 
COMMITMENTS AND CONTINGENCIES (Note 5)   -    - 
STOCKHOLDERS’ DEFICIT          
Series D, G, H, H2, J, K, AA, BB, CC and DD Convertible Preferred Stock, $.01 par value (Note 7)   103    102 
Common stock, $.01 par value; 100,000,000 shares authorized; 47,073,892 and 35,367,663 shares issued and outstanding on March 31, 2024 and December 31, 2023, respectively   470,808    353,677 
Warrants to acquire common stock   35,684,321    35,684,321 
Additional paid-in capital   103,453,087    100,236,710 
Accumulated deficit   (177,735,115)   (169,028,639)
TOTAL STOCKHOLDERS’ DEFICIT   (38,126,796)   (32,753,829)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT  $6,991,529   $1,049,676 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

 


Pressure BioSciences, Inc.

March 31, 2024 10Q Report

3
 

 

PRESSURE BIOSCIENCES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

   2024   2023 
   For the Three Months Ended March 31, 
   2024   2023 
Revenue:        
Products, services, other  $349,257   $740,600 
Total revenue   349,257    740,600 
           
Costs and expenses:          
Cost of products and services   233,310    358,628 
Research and development   272,023    435,646 
Selling and marketing   130,173    226,015 
General and administrative   1,198,309    3,358,056 
Total operating costs   1,833,815    4,378,345 
Operating loss   (1,484,558)   (3,637,745)
           
Other (expense) income:          
Interest expense, net   (5,384,991)   (3,893,686)
Unrealized gain on investment in equity securities   4,155    8,061 
Gain (loss) on extinguishment of liabilities   (1,211,511)   659,277 
Other income (expense)   

2,482

   6,259 
Total other expense   (6,589,865)   (3,220,089)
Net loss   (8,074,423)   (6,857,834)
Preferred stock dividends   (632,053)   (431,807)
Net loss attributable to common shareholders  $(8,706,476)  $(7,289,641)
Basic and diluted net loss per share attributable to common shareholders  $(0.22)  $(0.46)
Weighted average common shares outstanding used in the basic and diluted net loss per share calculation   39,811,524    15,839,373 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

 

Pressure BioSciences, Inc.

March 31, 2024 10Q Report

4
 

 

PRESSURE BIOSCIENCES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

   2024   2023 
   For the Three Months Ended March 31, 
   2024   2023 
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net loss  $(8,074,423)  $(6,857,834)
Adjustments to reconcile net loss to net cash used in operating activities:          
Gain on loan forgiveness   -    (659,277)
Non-cash lease expense   48,561    90,279 
Common stock issued for interest   1,136,790    1,705,234 
Preferred stock issued for interest   892,343    - 
Preferred stock for services   67,500    - 
Preferred stock issued debt extensions   1,160,880    - 
Depreciation and amortization   75,827    28,114 
Accretion of interest and amortization of debt discount   1,571,926    615,007 
Common stock issued for debt extension   110,310    1,029,939 
Stock-based compensation expense   240,292    1,430,244 
(Gain) on investment in equity securities   (4,155)   (8,061)
Common stock and warrants issued for services   11,100    1,480,944 
Investment banker fees for UB APA   210,060    - 
Changes in operating assets and liabilities:          
Accounts receivable   11,718    (96,780)
Inventories   58,968    20,338 
Prepaid expenses and other assets   11,279    (25)
UB Exchange Account   (1,181)   - 
Accounts payable   (225,930)   131,729 
Accrued employee compensation   (14,125)   101,299 
Operating Lease Liability   (14,464)   (127,014)
Deferred revenue and other accrued expenses   867,164    693,653 
Net cash used in operating activities   (1,859,560)   (422,211)
           
CASH FLOWS FROM INVESTING ACTIVITIES:          
Purchases of property plant and equipment   -    (3,000)
Net cash used in investing activities   -    (3,000)
           
CASH FLOWS FROM FINANCING ACTIVITIES:          
Sale of common stock   -    100,000 
Proceeds from stock option exercises   -    81,111 
Net proceeds from convertible debt   2,056,289    2,520,000 
Net proceeds from non-convertible debt - third party   94,371    654,681 
Net proceeds from debt - related party   97,052    88,200 
Payments on convertible debt   (394,229)   (1,628,474)
Payments on debt - related party   (8,682)   (99,000)
Payments on non-convertible debt   (63,300)   (1,056,149)
Net cash provided by financing activities   1,781,501    660,369 
           
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   (78,059)   235,158 
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR   81,279    3,865 
CASH AND CASH EQUIVALENTS AT END OF PERIOD  $3,220   $239,023 
           
SUPPLEMENTAL INFORMATION          
Interest paid in cash  $324,763   $534,872 
NON CASH TRANSACTIONS:          
Common stock issued with debt   140,455    1,087,751 
Preferred stock issued with debt   260,000    - 
Common stock issued in lieu of cash for dividend   38,838    102,435 
Preferred stock dividends   632,053    431,807 
Conversion of preferred stock for common stock   69,550    4,935 
Conversion of common stock for preferred stock   8,750    - 
Conversion of debt and interest into common stock   -    509,033 
Preferred stock and options issued for UB acquisition   5,959,834    - 
Initial recognition of ROU assets and liabilities   471,155    - 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

 

Pressure BioSciences, Inc.

March 31, 2024 10Q Report

5
 

 

PRESSURE BIOSCIENCES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT

(UNAUDITED)

 

   Shares   Amount   Shares   Amount   Warrants   Capital   Deficit   Deficit 
   Combined Preferred Stock   Common Stock   Stock   Additional Paid In   Accumulated   Total Stockholders’ 
   Shares   Amount   Shares   Amount   Warrants   Capital   Deficit   Deficit 
BALANCE, December 31, 2023   109,874   $1,098    13,682,910   $136,829   $31,995,762   $69,006,145   $(133,826,205)  $(32,686,371)
Stock option exercise   -    -    117,552    1,176    -    79,935    -    81,111 
Stock-based compensation   -    -    -    -    -    1,430,244    -    1,430,244 
Series AA Preferred Stock dividend   -    -    -    -    -    -    (431,807)   (431,807)
Issuance of common stock for services   -    -    990,500    9,905    -    1,409,430    -    1,419,335 
Issuance of common stock warrants for services   -    -    -    -    61,609    -    -    61,609 
Conversion of debt and interest for common stock   -    -    203,613    2,036    -    506,997    -    509,033 
Issuance of common stock for dividends paid-in-kind   -    -    73,694    737    -    101,698    -    102,435 
Issuance of common stock for interest paid-in-kind   -    -    1,111,081    11,111    -    1,694,123    -    1,705,234 
Common stock issued for debt extension   -    -    568,200    5,682    -    1,024,257    -    1,029,939 
Stock issued with debt   -    -    783,150    7,832    -    1,079,919    -    1,087,751 
Conversion of preferred stock for common stock   (101,154)   

(1,012

)   493,540    4,935    -    (3,923)   -    - 
Sale of Common Stock for Cash   

-

    

-

    

40,000

    

400

    

-

    

99,600

    

-

    

100,000

 
Net loss   -    -    -    -    -    -    (6,857,834)   (6,857,834)
Balance, March 31, 2023   8,720   $86    18,064,240   $180,643   $32,057,371   $76,428,425   $(141,115,846)  $(32,449,321)

 

Pressure BioSciences, Inc.

March 31, 2024 10Q Report

6
 

 

   Shares   Amount   Shares   Amount   Warrants   Capital   Deficit  

Deficit

 
   Combined Preferred Stock   Common Stock   Stock   Additional Paid In   Accumulated   Total Stockholders’ 
   Shares   Amount   Shares   Amount   Warrants   Capital   Deficit  

Deficit

 
BALANCE, December 31, 2023   10,121   $102    35,367,663   $353,677   $35,684,321   $100,236,710   $(169,028,639)  $(32,753,829)
Stock-based compensation   -    -    -    -    -    240,292    -    240,292 
Series AA Preferred Stock dividend   -    -    -    -    -    -    (431,709)   (431,709)
Series CC Preferred Stock dividend   -    -    -         -    -    (200,344)   (200,344)
Stock issued with debt   -    -    581,050    5,811    -    134,644    -    140,455 
Common stock issued for debt extension   -    -    388,000    3,880    -    106,430    -    110,310 
Issuance of common stock for services   -    -    70,000    700    -    10,400    -    11,100 
Issuance of common stock for interest paid-in-kind   -    -    4,344,443    43,513    -    1,093,277    -    1,136,790 
Issuance of common stock for dividends paid-in-kind   -    -    242,736    2,427    -    36,411    -    38,838 
Conversion of preferred stock for common stock   (696)   (7)   6,955,000    69,550    -    (69,543)   -    - 
Conversion of common stock to preferred stock   88    1    (875,000)   (8,750)   -    8,749    -    - 

Issuance of

Preferred stock for services
   23    -    -    -    -    67,500    -    67,500 
Preferred stock for debt extension   181    2    -    -    -    520,878    -    520,880 
Preferred stock issued with debt   100    1    -    -    -    259,999    -    260,000 

Issuance of

Preferred stock for interest paid-in-kind
   303    3    -    -    -    807,340    -    807,343 
Preferred stock issue for UB acquisition   127    1    -    -    -    -    -    1 
Net loss   -    -    -    -    -    -    (8,074,423)   (8,074,423)
BALANCE, March 31, 2024  10,247   $103    47,073,892   $470,808    35,684,321   $103,453,087   $(177,735,115)  $(38,126,796)

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

 

Pressure BioSciences, Inc.

March 31, 2024 10Q Report

7
 

 

PRESSURE BIOSCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2024

(UNAUDITED)

 

1) Business Overview, Liquidity and Management Plans

 

Pressure BioSciences, Inc. (OTCQB: PBIO) (the “Company”) is a leader in the development & sale of innovative, enabling, high pressure technology-based instruments, consumables, and services for the life sciences and other industries worldwide. Our products/services are based on three patented, high-pressure platforms: (i) Ultra Shear Technology™ (“UltraShear™” or “UST™”), (ii) BaroFold Technology™ (“BaroFold™”), and (iii) Pressure Cycling Technology™ (“PCT™”)

 

Uncle Bud’s Acquisition and Sales/Marketing Platform In January 2024, PBI completed the acquisition of Uncle Bud’s Hemp (renamed Uncle Bud’s Health & Wellness or “UB”), a direct-to-consumer (DTC) packaged goods company, with product development, marketing, and selling in the DTC vertical. Uncle Bud’s sells their products both online and through major retail chains.

 

2) Going Concern

 

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. We have experienced losses from operations and negative cash flows from operations. As of March 31, 2024, we do not have adequate working capital resources to satisfy our current liabilities and as a result, there is substantial doubt regarding our ability to continue as a going concern. We have been successful in raising debt and equity capital in the past and as described in Notes 6 and 7. In addition we raised debt and equity capital after March 31, 2024 as described in Note 9 We have financing efforts in place to continue to raise cash through debt and equity offerings. Although we have successfully completed financings and reduced expenses in the past, we cannot assure you that our plans to address these matters in the future will be successful. These financial statements do not include any adjustments that might result from this uncertainty.

 

3) Summary of Significant Accounting Policies

 

Basis of Presentation

 

The unaudited interim financial statements of Pressure BioSciences, Inc. and its consolidated subsidiaries (collectively, the “Company”) included herein have been prepared by the Company in accordance with the instructions to Form 10-Q and the rules and regulations of the U.S. Securities and Exchange Commission. Under these rules and regulations, some information and footnote disclosures normally included in financial statements prepared under accounting principles generally accepted in the United States of America have been shortened or omitted. Management believes that all adjustments necessary for a fair statement of the financial position and the results of operations for the periods shown have been made. All adjustments are normal and recurring. These financial statements should be read together with the Company’s audited financial statements included in its Form 10-K for the fiscal year ended December 31, 2023. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the final results that may be expected for the year ending December 31, 2024.

 

Use of Estimates

 

The Company’s consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America, which require the use of estimates, judgements and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. In addition, estimates were made in projecting future cash flows to quantify impairment of assets, fair value of share based awards and investments in equity securities. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. In the opinion of management, all adjustments necessary in order to make the financial statements not misleading have been included. Actual results could differ from the estimates, and such differences may be material to the Company’s consolidated financial statements.

 

Pressure BioSciences, Inc.

March 31, 2024 10Q Report

8
 

 

Intangibles assets as of March 31, 2024 are as follows:

 

 

Website  $1,516 
Less website amortization   (158)
Customer list   664,237 
Less Customer list amortization   (69,191)
Net Intangible Assets  $596,404 

 

Expected amortization expense of intangible assets over the next 2 years is as follows:

 

Twelve Months ended March 31,

 

      
2024  $332,875 
2025   263,529 
Net Intangible Assets  $596,404 

 

Impairment of Long-Lived Assets

 

The Company accounts for long-lived assets in accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 360, Accounting for the Impairment of Long-Lived Assets.  This statement requires that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss would be recognized when the estimated future cash flows from the use of the asset are less than the carrying amount of that asset.

 

During the quarter ended March 31, 2024, there were no triggering events related to the customer list for Uncle Bud’s which required an analysis to be performed.

 

Principles of Consolidation

 

The consolidated financial statements include the accounts of Pressure BioSciences, Inc., and its wholly-owned subsidiaries PBI BioSeq, Inc., PBI Agrochem, Inc., and Uncle Buds Health and Wellness, Inc. All intercompany accounts and transactions have been eliminated in consolidation.

 

Revenue Recognition

 

The Company recognizes revenue under ASC Topic 606, Revenue from contract with Customers (“Topic 606”). The following is a summary of the revenue recognition policy for each of the Company’s subsidiaries.

 

Revenue is recognized under Topic 606, at a point in time and over a period of time, in a manner that reasonably reflects the delivery of its services and products to customers in return for expected consideration and includes the following elements:

 

  executed contracts with the Company’s customers that it believes are legally enforceable;
  identification of performance obligations in the respective contract;
  determination of the transaction price for each performance obligation in the respective contract;
  allocation the transaction price to each performance obligation; and
  recognition of revenue only when the Company satisfies each performance obligation.

 

The following is a summary of the revenue recognition policy for each of the Company’s subsidiaries PBI BioSeq, Inc. and PBI Agrochem, Inc, we recognize revenue in accordance with FASB ASC 606, Revenue from Contracts with Customers, and ASC 340-40, Other Assets and Deferred Costs—Contracts with Customers. Revenue is measured based on a consideration specified in a contract with a customer and excludes any sales incentives and amounts collected on behalf of third parties. We enter into sales contracts that may consist of multiple distinct performance obligations where certain performance obligations of the sales contract are not delivered in one reporting period. We measure and allocate revenue according to ASC 606-10.

 

Pressure BioSciences, Inc.

March 31, 2024 10Q Report

9
 

 

We identify a performance obligation as distinct if both the following criteria are true: the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer and the entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract. Determining the standalone selling price (“SSP”) and allocation of consideration from a contract to the individual performance obligations, and the appropriate timing of revenue recognition is the result of significant qualitative and quantitative judgments. Management considers a variety of factors such as historical sales, usage rates, costs, and expected margin, which may vary over time depending upon the unique facts and circumstances related to each performance obligation in making these estimates. While changes in the allocation of the SSP between performance obligations will not affect the amount of total revenue recognized for a particular contract, any material changes could impact the timing of revenue recognition, which would have a material effect on our financial position and result of operations. This is because the contract consideration is allocated to each performance obligation, delivered or undelivered, at the inception of the contract based on the SSP of each distinct performance obligation.

 

Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue.

 

Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are in included in cost of revenues as consistent with treatment in prior periods.

 

Our current Barocycler® instruments require a basic level of instrumentation expertise to set-up for initial operation. To support a favorable first experience for our customers, upon customer request, and for an additional fee, we will send a highly trained technical representative to the customer site to install Barocyclers® that we sell, lease, or rent through our domestic sales force. The installation process includes uncrating and setting up the instrument, followed by introductory user training. Our sales arrangements do not provide our customers with a right of return. Any shipping costs billed to customers are recognized as revenue.

 

The majority of our instrument and consumable contracts contain pricing that is based on the market price for the product at the time of delivery. Our obligations to deliver product volumes are typically satisfied and revenue is recognized when control of the product transfers to our customers. Concurrent with the transfer of control, we typically receive the right to payment for the shipped product and the customer has significant risks and rewards of ownership of the product. Payment terms require customers to pay shortly after delivery and do not contain significant financing components.

 

Revenue from scientific services customers is recognized upon completion of each stage of service as defined in service agreements.

 

We apply ASC 845, “Accounting for Non-Monetary Transactions”, to account for products and services sold through non-cash transactions based on the fair values of the products and services involved, where such values can be determined. Non-cash exchanges would require revenue to be recognized at recorded cost or carrying value of the assets or services sold if any of the following conditions apply:

 

  a) The fair value of the asset or service involved is not determinable.
  b) The transaction is an exchange of a product or property held for sale in the ordinary course of business for a product or property to be sold in the same line of business to facilitate sales to customers other than the parties to the exchange.
  c) The transaction lacks commercial substance.

 

We recognize revenue for non-cash transactions at recorded cost or carrying value of the assets or services sold.

 

Pressure BioSciences, Inc.

March 31, 2024 10Q Report

10
 

 

We account for lease agreements of our instruments in accordance with ASC 842, Leases. We record revenue over the life of the lease term, and we record depreciation expense on a straight-line basis over the thirty-six-month estimated useful life of the Barocycler® instrument. The depreciation expense associated with assets under lease agreement is included in the “Cost of PCT products and services” line item in our accompanying consolidated statements of operations. Many of our lease and rental agreements allow the lessee to purchase the instrument at any point during the term of the agreement with partial or full credit for payments previously made. We pay all maintenance costs associated with the instrument during the term of the leases.

 

Deferred revenue represents amounts received from service contracts for which the related revenues have not been recognized because one or more of the revenue recognition criteria have not been met. Revenue from service contracts is recorded ratably over the length of the contract.

 

Uncle Buds Health and Wellness, Inc. (“Uncle Bud’s”, “UB”)

 

As part of the acquisition of Uncle Bud’s, the Company analyzed ASC Topic 606, Revenue from Contracts with Customers and determined to recognized revenue when control of the product is transferred to the customer and they have assumed the risk of loss, which is typically when it is received by the customer.

 

UB generated $153,787 of direct-to-consumer (DTC) sales. The Company estimated UB deferred revenue to be approximately $15,000 as of March 31, 2024, which the Company deemed to be nominal.

 

Additionally, Uncle Bud’s has no future contracts or obligations to the customer to provide future services or expenses whereby future revenue is generated.

 

Disaggregation of revenue

 

In the following table, revenue is disaggregated by primary geographical market, major product line, and timing of revenue recognition.

Schedule of Disaggregation of Revenue 

In thousands of US dollars ($) 

Three Months Ended

March 31,

 
Primary geographical markets  2024   2023 
North America  $340   $556 
Europe   6    36 
Asia   3    149 
   $349   $741 

 

  

Three Months Ended

March 31,

 
Major products/services lines  2024   2023 
Hardware  $83   $428 
Consumables   38    66 
Contract research services   -    5 
Sample preparation accessories   48    45 
Consumer Products   154    - 
Agrochem products   -    131 
Technical support/extended service contracts   20    43 
Shipping and handling   6    19 
Other   -    4 
   $349   $741 

 

  

Three Months Ended

March 31,

 
Timing of revenue recognition  2024   2023 
Products transferred at a point in time  $328   $693 
Services transferred over time   21    48 
   $349   $741 

 

Contract balances

 

In thousands of US dollars ($) 

March 31, 2024

  

December 31, 2023

 
Receivables, which are included in ‘Accounts Receivable’  $         145   $            151 
Contract liabilities (deferred revenue)   242    34 

 

Pressure BioSciences, Inc.

March 31, 2024 10Q Report

11
 

 

Transaction price allocated to the remaining performance obligations

 

The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period.

 

In thousands of US dollars ($)  2024   2025   Total 
Extended warranty service  $234   $8   $242 

 

All consideration from contracts with customers is included in the amounts presented above.

 

Contract Costs

 

The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. These costs are included in selling, general, and administrative expenses. The costs to obtain a contract are recorded immediately in the period when the revenue is recognized either upon shipment or installation. The costs to obtain a service contract are considered immaterial when spread over the life of the contract so the Company records the costs immediately upon billing.

 

Segment Reporting

 

We organize our business segments based on the nature of the products and services offered. Operating segments are defined as the components of a business which separate financial information is available. In Note 8, the table of financial data, the total of the operating results of these business segments is reconciled, as appropriate, to the corresponding consolidated amount. There are some corporate expenses that were not allocated to the business segments, and these expenses are contained in the “Operating expenses” under Parent.

 

Our Industrial segment contains the UST, BaroFold and PCT Platforms. Due to our purchase of Uncle Bud’s , the Company analyzed ASC 280-10-50 and determined that Uncle Bud’s qualifies as an operating segment. Our Consumer segment represents the activity of Uncle Bud’s. Uncle Bud’s offers products direct-to-consumer online and through major retail chains.

 

Based on the above, management has determined to report under the following segments:

 

  - Corporate – for shared expenses between the other reportable segments
  - Pressure Biosciences reported as “Industrial”
  - Uncle Buds reported as “Consumer”

 

Goodwill

 

Goodwill is recorded as the excess, if any, of the aggregate fair value of consideration exchanged for an acquired business over the fair value (measured at the acquisition date) of total net tangible and identified intangible assets acquired. Goodwill and other intangible assets with indefinite lives are not amortized but are tested for impairment on an annual basis or whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. We first assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. If the qualitative assessment determines it is necessary, we will perform a quantitative impairment test shall be used to identify goodwill impairment and measure the amount of a goodwill impairment loss to be recognized (if any).

 

We are required to identify our reporting units and determine the carrying value of each reporting unit. We analyze financial information of our operations to identify discrete segments that constitute a reporting unit. We assign assets acquired and liabilities assumed in business combinations to those reporting units. We are required to determine the fair value of each reporting unit and compare it to the carrying amount of the reporting unit. To the extent the carrying amount of a reporting unit exceeds the fair value of the reporting unit, we would be required to book an impairment loss.

 

All assessments of goodwill impairment are conducted at the individual reporting unit level. As of March 31, 2024, the only reporting unit with goodwill is Uncle Bud’s.

 

We determined no impairment of our goodwill occurred for the period ended March 31, 2024.

 

Pressure BioSciences, Inc.

March 31, 2024 10Q Report

12
 

 

Concentrations

 

Credit Risk

 

Our financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash, cash equivalents, and trade receivables. We have cash investment policies which, among other things, limit investments to investment-grade securities. We perform ongoing credit evaluations of our customers, and the risk with respect to trade receivables is further mitigated by the fact that many of our customers are government institutions, large pharmaceutical and biotechnology companies, and academic laboratories.

 

The following table illustrates the level of concentration as a percentage of total revenues during the three months ended March 31, 2024 and 2023.

 

   For the Three Months Ended 
   March 31, 
   2024   2023 
Top Five Customers   48%   64%

 

The following table illustrates the level of concentration as a percentage of net accounts receivable balance as of March 31, 2024 and December 31, 2023. The Top Five Customers category may include federal agency receivable balances if applicable.

 

   March 31, 2024   December 31, 2023 
Top Five Customers   100%   96%

 

Investment in Equity Securities

 

As of March 31, 2024, we held 100,250 shares of common stock of Nexity Global SA, (a Polish publicly traded company).

 

We account for this investment in accordance with ASC 320 “Investments — Debt and Equity Securities”. ASC 320 requires equity investments with readily determinable fair values to be measured at fair value with changes in fair value recognized in net income.

 

Pressure BioSciences, Inc.

March 31, 2024 10Q Report

13
 

 

As of March 31, 2024, our consolidated balance sheet reflected the fair value, determined on a recurring basis based on Level 1 inputs of our investment in Nexity, to be $66,031. We recorded $4,155 as an unrealized gain during the three months ended March 31, 2024 for changes in market value.

 

Computation of Loss per Share

 

Basic loss per share is computed by dividing loss available to common shareholders by the weighted average number of common shares outstanding. Diluted loss per share is computed by dividing loss available to common shareholders by the weighted average number of common shares outstanding plus additional common shares that would have been outstanding if dilutive potential common shares had been issued. For purposes of this calculation, convertible preferred stock, common stock dividends, and warrants and options to acquire common stock, are all considered common stock equivalents in periods in which they have a dilutive effect and are excluded from this calculation in periods in which these are anti-dilutive to our net loss.

 

The following table illustrates our computation of loss per share for the three months ended March 31, 2024 and 2023:

 

         
   For the Three Months Ended March 31, 
   2024   2023 
Numerator:        
Net loss attributable to common stockholders  $(8,706,476)  $(7,289,641)
           
Denominator for basic and diluted loss per share:          
Weighted average common stock shares outstanding   39,811,524    15,839,373 
           
Loss per common share – basic and diluted  $(0.22)  $(0.46)

 

The following table presents securities that could potentially dilute basic loss per share in the future. For all periods presented, the potentially dilutive securities were not included in the computation of diluted loss per share because these securities would have been anti-dilutive to our net loss. The Series D Convertible Preferred Stock, Series AA Convertible Preferred Stock, Series BB Convertible Preferred Stock, Series CC Convertible Preferred Stock and Series DD Convertible Preferred Stock are presented below as if they were converted into common shares according to the conversion terms.

 

         
   As of March 31, 
   2024   2023 
Stock options   5,724,504    3,420,754 
Convertible debt   9,568,173    7,620,701 
Common stock warrants   15,577,354    16,217,101 
Convertible preferred stock:          
Series D Convertible Preferred   6,250    6,250 
Series AA Convertible Preferred   8,645,000    8,645,000 
Series BB Convertible Preferred   16,230,000    - 
Series CC Convertible Preferred   4,010,000    - 
Series DD Convertible Preferred   2,540,000    - 
Total potentially dilutive shares   62,301,281    35,909,806 

 

Accounting for Stock-Based Compensation Expense

 

We maintain equity compensation plans under which incentive stock options and non-qualified stock options are granted to employees, independent members of our Board of Directors and outside consultants. We recognize stock-based compensation expense over the requisite service period using the Black-Scholes formula to estimate the fair value of the stock options on the date of grant.

 

Pressure BioSciences, Inc.

March 31, 2024 10Q Report

14
 

 

Determining Fair Value of Stock Option Grants

 

The following table summarizes the assumptions we utilized for grants of stock options to the three sub-groups of our stock option recipients during the three months ended March 31, 2024:

 

Assumptions  CEO, other Officers and Employees 
Expected life   6.0 (yrs)
Expected volatility   155.0%
Risk-free interest rate   4.20%
Forfeiture rate   0 to 5.00%
Expected dividend yield   0.0%

 

Valuation and Amortization Method - The fair value of each option award is estimated on the date of grant using the Black-Scholes pricing model based on certain assumptions. The estimated fair value of employee stock options is amortized to expense using the straight-line method over the vesting period.

 

Expected Term - The Company uses the simplified calculation of expected life, as the Company does not currently have sufficient historical exercise data on which to base an estimate of expected term. Using this method, the expected term is determined using the average of the vesting period and the contractual life of the stock options granted.

 

Expected Volatility - Expected volatility is based on the Company’s historical stock volatility data over the expected term of the award.

 

Risk-Free Interest Rate - The Company bases the risk-free interest rate used in the Black-Scholes valuation method on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent remaining term.

 

Forfeitures - The Company records stock-based compensation expense only for those awards that are expected to vest. The Company estimated a forfeiture rate of 5% for awards granted based on historical experience and future expectations of options vesting. The Company used this historical rate as our assumption in calculating future stock-based compensation expense.

 

All of the outstanding non-qualified options had an exercise price that was at or above the Company’s common stock share price at time of issuance.

 

The Company recognized stock-based compensation expense of $240,292 and $1,430,244 for the three months ended March 31, 2024 and 2023, respectively. The following table summarizes the effect of this stock-based compensation expense within each of the line items of our costs and expenses within our Consolidated Statements of Operations:

 

         
   For the Three Months Ended 
   March 31, 
   2024   2023 
Cost of sales  $14,664   $53,481 
Research and development   43,257    170,620 
Consumer Products   54,335    - 
Selling and marketing   25,286    72,099 
General and administrative   102,750    1,134,044 
Total stock-based compensation expense  $240,292   $1,430,244 

 

Fair Value of Financial Instruments

 

Due to their short maturities, the carrying amounts for cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and debt approximate their fair value. The carrying amount of long-term debt approximates fair value due to interest rates that approximate prevailing market rates.

 

Fair Value Measurements

 

The Company follows the guidance of FASB ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”) as it related to all financial assets and financial liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis.

 

Pressure BioSciences, Inc.

March 31, 2024 10Q Report

15
 

 

The Company generally defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company uses a three-tier fair value hierarchy, which classifies the inputs used in measuring fair values. These tiers include Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring the Company to develop its own assumptions. A slight change in an unobservable input like volatility could have a significant impact on fair value measurement.

 

Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company has determined that its financial assets are classified within Level 1 in the fair value hierarchy. The development of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s management.

 

The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2024:

 

      

Fair value measurements at

March 31, 2024 using:

 
  

March 31,

2024

  

Quoted

prices in

active

markets

(Level 1)

  

Significant

other

observable

inputs

(Level 2)

  

Significant

unobservable

inputs

(Level 3)

 
Equity Securities  $66,031   $66,031            -    - 
Total Financial Assets  $66,031   $66,031   $-   $- 

 

The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2023:

 

      

Fair value measurements at

December 31, 2023 using:

 
  

December 31,

2023

  

Quoted

prices in

active

markets

(Level 1)

  

Significant

other

observable

inputs

(Level 2)

  

Significant

unobservable

inputs

(Level 3)

 
Equity Securities   61,876    61,876    -    - 
Total Financial Assets  $61,876   $61,876   $-   $- 

 

 

4) Business Combination

 

On January 9, 2024, the Company acquired the assets and assumed the liabilities of Uncle Buds. Under the provision of ASC 805 Business Combinations, the acquisition is considered an acquisition of a business since the Company is continuing the business of UB which has defined inputs and substantive processes that contribute to the ability to create outputs.

 

The Company believes that the purchase of the assets and assumption of liabilities of Uncle Bud’s will result in synergies from combining the existing commercial customers of the Company with the retire focus, and customer list of Uncle Bud’s, as the Company desires to use its existing products into the retail channel.

 

The business combination accounting is not yet complete and the amounts assigned to assets acquired and liabilities assumed are provisional. Therefore, this may result in future adjustments to the provisional amounts as new information is obtained about facts and circumstances that existed at the acquisition date.

 

Pressure BioSciences, Inc.

March 31, 2024 10Q Report

16
 

 

The following are the unaudited pro forma results of operations for the three months ended March 31, 2024 and 2023, as if Uncle Bud’s had been acquired on January 1, 2023. The pro forma results include estimates and assumptions that management believes are reasonable. However, pro forma results are not necessarily indicative of the results that would have occurred if the business combination had been in effect on January 1, 2023.

   2024   2023 
   Unaudited 
   Pro Forma combined financials PBI and UB 
   For the Three Months ended March 31, 
   2024   2023 
Sales  $362,073   $1,258,365 
Cost of goods sold  $251,210   $687,576 
Operating expenses  $1,645,636   $4,274,709 
Loss from operations  $(1,534,773)  $(3,703,920)
Loss per share  $(0.04)  $(0.23)

 

The purchase price is as follows:

 

      
Fair value of options issued to sellers of UB and finders (1)  $2,210,060
Preferred shares DD issued  $1,066,800 
Cost of acquisition:     
Fair value of options issued to finders (1) (2)  $(210,060)
Total consideration paid  $

3,066,800

 

 

(1)Options were owed as of March 31, 2024, but not yet issued. Therefore, the Company recognized the option fair value as a liability “Options Payable” as of March 31, 2024, for a total of $2,210,060. In computing fair value, a Black Scholes computation was performed with the following variables:

Notes

 

(1)Options were owed as of March 31, 2024, but not yet issued. Therefore, the Company recognized the option fair value as a liability “Options Payable” as of March 31, 2024, for a total of $2,210,060. In computing fair value, a Black Scholes computation was performed with the following variables:

 

  a. For options issued to the sellers of UB, valued at $2,000,000

 

  i. Expected time to maturity = 5 years
  ii. Annual risk free rate = 4.08%
  iii. Annualized volatility = 118%

 

  b. For options issued as investment banker fees, valued at $210,060

 

  i. Expected time to maturity = 2.5 years
  ii. Annual risk free rate = 4.18%
  iii. Annualized volatility = 103%

 

(2)This amount was expensed in the statement of operations.

 

Upon analysis of Uncle Bud’s business combination, the Company has estimated the fair value of the assets and liabilities acquired as follows:

 

    Estimate of Fair Value 
Assets Acquired      
Accounts Receivable   $5,123 
Inventory    350,922 
Customer list    664,237 
Goodwill    4,727,976 
Intangible assets    1,516 
Total assets   $5,749,774 
       
Liabilities Assumed      
Accounts payable   $1,344,254 
Accrued liabilities    522,145 
Other current liabilities    14,360 
Term loan liabilities    68,000 
Line of credit    734,215 
Total liabilities assumed    2,682,974 
Total   $3,066,800 

 

The Uncle Bud’s transaction produced a goodwill of $4,727,976. The Company anticipates that there will be no material increase or decrease to its tax situation based on this goodwill.

 

On January 9, 2024, the Company and CBH International LLC, dba Uncle Bud’s, signed an Asset Purchase Agreement (the “Agreement”) for the Company to acquire all of Uncle Bud’s assets and assume selected liabilities, including a $734,000 long-term loan and all trade payables.

 

Uncle Bud’s stockholders received 127 shares in PBIO convertible Series DD Preferred Stock that converts into 2,540,000 common shares of PBIO. Such shares are subject to standard restrictions on resale. In addition, the parties agreed to an earnout for additional shares of PBIO Common Stock worth up to $4,000,000 based on the achievement of revenue and pre-tax income results in 2024, and subsequently entered into an amendment to terminate the contingent and earnout clause of the Agreement and issued 8,000,000 non-qualified stock options. All options had an exercise price of $0.30, (100% vest immediately), have a ten-year life as long as the Optionee remains affiliated with PBI (one-year life after loss of affiliation), and all other terms and conditions as specified in the 2024 plan.

 

Pressure BioSciences, Inc.

March 31, 2024 10Q Report

17
 

 

Upon the closing, all employees of Uncle Bud’s have become employees of PBIO and Uncle Bud’s has become the Consumer Products Business Unit of the Company.

 

Goodwill considerations – ASC 350-20-35-34 states, “A component of an operating segment is a reporting unit if the component constitutes a business or a nonprofit activity for which discrete financial information is available and segment management, as that term is defined in paragraph 280-10-50-7, regularly reviews the operating results of that component.” In this case Uncle Bud’s is a reporting unit with discrete financial information should be shown in the Uncle Buds segment along with any impairment. All assessments of goodwill impairment are conducted at the segment reporting unit level.

 

5) Commitments and Contingencies

 

Operating Leases

 

The Company accounts for its leases under ASC 842. The Company has elected to apply the short-term lease exception to leases of one year or less. Our corporate office is currently located at 480 Neponset Street, Unit 10B, Canton, MA 02021.

 

We extended our lease for our space in Medford, MA (the “Medford Lease”) from December 30, 2020 to December 30, 2023. The lease required monthly payments of $7,282 subject to annual cost of living increases. The lease shall be automatically extended for additional three years unless either party terminates at least nine months prior to the expiration of the current lease term. The Company did not renew this lease and let it expire on December 30, 2023.

 

The Company accounted for the lease extension of our Medford Lease as a lease modification under ASC 842. At the effective date of modification, the Company recorded an adjustment to the right-of-use asset and lease liability in the amount of $221,432 based on the net present value of lease payments discounted using an estimated borrowing rate of 12%.”

 

On February 5, 2024 we moved and entered a new lease for our corporate office (the “Canton Lease”). The Company accounts for the Canton Lease as an operating lease under ASC 842. Payment of rent began on April 1, 2024. The lease terminates on April 30, 2029. Monthly rent begins at $11,651 and escalates over the lease term to $13,678. Upon the commencement of the Canton Lease, the Company recorded a right-of-use asset and lease liability in the amount of $471,155 based on the net present value of lease payments discounted using an estimated borrowing rate of 24%.

 

Pressure BioSciences, Inc.

March 31, 2024 10Q Report

18
 

 

On August 9, 2021, we entered into an operating lease agreement for our warehouse space in Sparks, NV (the “Sparks Lease”) for the period from September 1, 2021 through September 30, 2026. The lease contains escalating payments during the lease period. The lease can be extended for an additional three years if the Company provides notice at least six months prior to the expiration of the current lease term.

 

The Company accounted for the Sparks Lease as an operating lease under ASC 842. Upon the commencement of the lease, the Company recorded a right-of-use asset and lease liability in the amount of $239,327 based on the net present value of lease payments discounted using an estimated borrowing rate of 12%.

 

Following is a schedule by years of future minimum rental payments required under operating leases with initial or remaining non-cancelable lease terms in excess of one year as of March 31, 2024:

 

Year  Total 
April 1 – December 31, 2024  $180,908 
2025  $211,852 
2026  $203,753 
2027  $158,054 
2028  $164,133 
2029  $41,036 
Total future undiscounted lease payments  $959,736 
Less imputed interest  $375,189 
Present value of lease liabilities  $584,547 

 

The operating cash flows from the operating leases were $48,561 for the three months ended March 31, 2024 and $90,279 for the three months ended March 31, 2023. The weighted-average remaining lease term (years) of the above leases is 4.34 years as of March 31, 2024.

 

Below is a table for the right of use asset and the corresponding lease liability in the consolidated balance sheets:

 

Operating Leases  March 31, 2024   December 31, 2023 
Right of use asset  $565,409   $142,815 
Right of use liability, current  $204,886   $66,895 
Right of use liability, long term  $379,661   $60,961 
Total lease liability  $584,547   $127,856 

 

The weighted-average discount rate is 22%.

 

The Company had no financing lease during the three months ended March 31, 2024 and 2023.

 

The components of lease cost for operating leases for the three months ended March 31, 2024 and 2023 are as follows:

 

   March 31, 2024   March 31, 2023 
Operating lease cost  $32,997   $37,810 
Short-term lease cost   21,737    20,850 
Total lease cost  $54,734   $58,660 

 

Target Discovery Inc.

 

In March 2010, we signed a strategic product licensing, manufacturing, co-marketing, and collaborative research and development agreement with Target Discovery Inc. (“TDI”), a related party. Under the terms of the agreement, we have been licensed by TDI to manufacture and sell an innovative line of chemicals used in the preparation of tissues for scientific analysis (“TDI reagents”). The TDI reagents were designed for use in combination with our pressure cycling technology. The companies believe that the combination of PCT and the TDI reagents can fill an existing need in life science research for an automated method for rapid extraction and recovery of intact, functional proteins associated with cell membranes in tissue samples. We did not incur any royalty obligation under this agreement in 2024 or 2023.

 

Pressure BioSciences, Inc.

March 31, 2024 10Q Report

19
 

 

In April 2012, we signed a non-exclusive license agreement with TDI to grant the non-exclusive use of our pressure cycling technology. We executed an amendment to this agreement on October 1, 2016 wherein we agreed to pay a monthly fee of $1,400 for the use of a lab bench, shared space, and other utilities, and $2,000 per day for technical support services as needed. The agreement requires TDI to pay the Company a minimum royalty fee of $60,000 in 2023 and $60,000 in 2024. For the three months ended March 31, 2024 and March 31, 2023, the Company reported $15,450 and $15,450, respectively in TDI fees.

 

Severance and Change of Control Agreements

 

Each of Mr. Schumacher, and Drs. Ting, and Lazarev, executive officers of the Company, are entitled to receive a severance payment if terminated by the Company without cause. The severance benefits would include a payment in an amount equal to one year of such executive officer’s annualized base salary compensation plus accrued paid time off. Additionally, the officer will be entitled to receive medical and dental insurance coverage for one year following the date of termination.

 

Each of these executive officers, other than Mr. Schumacher, is entitled to receive a change of control payment in an amount equal to one year of such executive officer’s annualized base salary compensation, accrued paid time off, and medical and dental coverage, in the event of their termination upon a change of control of the Company. In the case of Mr. Schumacher, this payment would be equal to two years of annualized base salary compensation, accrued paid time off, and two years of medical and dental coverage. The severance payment is meant to induce the aforementioned executives to remain in the employ of the Company, in general, and particularly in the occurrence of a change in control, as a disincentive to the control change.

 

Pursuant to our equity incentive plans, any unvested stock options held by a named executive officer will become fully vested upon a change in control (as defined in the 2005 Equity Incentive Plan) of our Company.

 

6) Debt

 

Convertible Debt

 

On various dates during the three months ended March 31, 2024, the Company issued convertible notes for net proceeds of approximate total of $2.1 million which contained varied terms and conditions as follows: a) 4-12 month maturity date; b) interest rates of 0-15%; c) convertible to the Company’s common stock at issuance at a fixed rate of $2.50 or at variable conversion rates upon the Company’s up-listing to NASDAQ or NYSE or an event of default. These notes were issued with shares of common stock that were fair valued at issuance date. The aggregate relative fair value of the shares of common stock issued with the notes of $140,455 was recorded as a debt discount to be amortized over the term of the notes. The aggregate relative fair value of the preferred stock issued with the notes of $260,000 was also recorded as a debt discount to be amortized over the term of the notes.

 

We also evaluated the convertible notes for derivative liability treatment and determined that the notes did not qualify for derivative accounting treatment on March 31, 2024.

 

For the three months ended March 31, 2024, deferred financing costs and OID issued with the debt are $113,100 and the Company repaid $394,229.

 

The summary of specific terms of the convertible notes and outstanding balances as of March 31, 2024 and December 31, 2023 are listed in the tables below. The convertible notes are from numerous parties and with original issue dates from July, 2019 to March, 2024, and maturity dates from March, 2020 to March, 2025. There are approximately $16.8 million of notes that are past due as of March 31, 2024.

 

   March 31, 2024   December 31, 2023 
Holders  Interest Rate   Conversion Price   Principal   Interest Rate   Conversion Price   Principal 
Main Investor   10%   $2.50(1)  $9,964,630    10%   $2.50(1)  $8,920,250 
Others   0 to 24%   $2.50 or $7.50(2)   13,955,802    0 to 24%   $2.50 or $7.50(2)   12,409,062 
Totals             23,920,432              21,329,312 
Discount             403,060              645,471 
Net            $23,517,372             $20,683,841 

 

Notes:

 

(1)Conversion price of these note is $2.50 except for a note for $189,750, which will be adjusted to, upon an Event of Default, the lower of (i) the conversion price or (ii) a 25% discount to the 5-day average VWAP of the stock prior to default, and $1,062,000 lower of (i) $2,50, or (ii) the conversion price of the Series AA Preferred Stock as adjusted. These notes are secured by all assets of the Company.

 

Pressure BioSciences, Inc.

March 31, 2024 10Q Report

20
 

 

(2)Conversion price of these notes is $2.50 but also varies with one or more of these notes having the following conversion adjustment:

 

a.Notes are convertible before maturity at $2.50 per share or mandatorily convertible when the Company up-lists to the NASDAQ at the lower of $2.50 or the up-list price.
b.Notes are convertible upon an Event of Default at 75% multiplied by the lowest trading price for the common stock during the five days prior to the conversion.
c.Notes are convertible at $2.50 per share except that following an Event of Default the conversion price will be adjusted to 75% multiplied by the lowest trading price for the common stock during the five days prior to the conversion.
d.Notes can be voluntary converted at lower of 1) $2.50/share; or 2) purchase price of stock sold by PBI at a price lower than $2.50/share. In the event of default, these notes can be converted at lower of 1) $2.50/share; 2) 30% discount to 5-day VWAP prior to date of default.
e.Notes can be voluntary converted at lower of 1) $2.50/share; or 2) purchase price of stock sold by PBI at a price lower than $2.50/share. In the event of default, these notes can be converted at lower of 1) $2.50/share; 2) 25% discount to 5-day VWAP prior to date of default.
f.Conversion price is lower of (i) $2.50 or (ii) the price per share that the Company last sold Common Stock after the execution of an anti-dilution protection agreement.
g.Note can be converted at a Voluntary Conversion Price which is the lower of 1) $2.50/share; or 2) purchase price of stock sold by the Company at a price lower than $2.50 except that following an Event of Default, the Holder shall have the right, with no further consent from the Borrower, to convert notes which can be the lower of 1) the Voluntary Conversion Price, or 2) 70% of the 5-day VWAP prior to conversion.
h.Conversion price is $2.50. If note is in default, it is $1.
i.Notes can be voluntarily converted before maturity at $2.50 per share. Lender retains the option upon an Up-list to convert at the lower of $2.50 or the 10% off Up-list price.
j.Notes can be converted at the lesser of $2.5 per share or 25% discount to the opening price of the Company’s first day of trading on either Nasdaq or NYSE. In addition, if the Company fails to pay the Note in cash on maturity date, the conversion price will be adjusted to the lesser of (i) original conversion price or (ii) a 35% discount to the VWAP prior to each conversion date.
k.Some notes are not convertible until 180 days from the date of issuance of the Note and following an Event of Default will be convertible at the lowest trading price of the 20 days prior to conversion. The loan with a principal balance of $950,000 as of March 31, 2024 is guaranteed by the Company’s Chief Executive Officer, but the lender may only enforce this guarantee after certain conditions have been met, specifically after (i) the occurrence of an Event of Default (as defined in the Note), (ii) the failure of the Company to cure the Default in 10 business days, and (iii) a failure by the Company to issue, or cause to be issued, shares of its common stock upon submission by the lender of a notice of conversion.
l.Some notes can be converted at the lesser of $2.50 per share or 25% discount to the opening price of the Company’s first day of trading on either Nasdaq or NYSE. In addition, if the Company fails to pay the Note in cash on maturity date, the conversion price will be adjusted to the lesser of original conversion price or the product of the VWAP of the common stock for the 5 trading dates immediately prior to the maturity date multiplied by 0.75.
 m.Some notes can be converted at $2.50 through fixed rate expiration dates, thereafter 60% of the lowest trading price for the last 20 days before conversion.
 

n.

Some notes can be converted at $2.50 through fixed rate expiration dates; thereafter lesser of (1) lowest trading price during the prior 25 days of the note or 65% of the lowest price during the 25 days prior to the conversion. Notes can be voluntary converted at lower of 1) $2.50/share; or 2) purchase price of stock sold by PBI at a price lower than $2.50/share. Notes can be voluntary converted at lower of lower of (i) $2.5/share and (ii) purchase Price of stock sold by PBIO at a price lower than $2.50/share that is not an Excluded Event in the Series AA Deal Documents. Notes can be converted at lower of lower of (i) $2.50 or (ii) the conversion price of the Series AA Preferred Stock as adjusted. Notes can be converted at lower of (i) $2.50 or (ii) the purchase price of stock by Series AA Holders. Notes can be voluntary converted at offering price of Common Stock at the close of the day prior to the Conversion Date

 

For the three months ended March 31, 2024, the Company recognized amortization expense related to the debt discounts indicated above of $1,301,688. The unamortized debt discounts as of March 31, 2024 related to the convertible notes amounted to $403,060.

 

As of March 31, 2024, the principal balance that are secured by the assets of the Company’s subsidiary, PBI Agrochem, Inc. is $352,188.

 

Standstill and Forbearance Agreements

 

In recent years, the Company entered into Standstill and Forbearance Agreements with lenders who hold variable-rate convertible notes. Pursuant to these agreements the lenders agreed to not convert any portion of their notes into shares of common stock at a variable rate. During the three months ended March 31, 2024, three (3) notes from one lender with total principal of $272,500 was outstanding and no interest, penalties and fees were accrued in connection with the Standstill and Forbearance Agreements.

 

Pressure BioSciences, Inc.

March 31, 2024 10Q Report

21
 

 

Convertible Loan Modifications and Extinguishments

 

We refinanced certain convertible loans during the three months ended March 31, 2024 at substantially the same terms for extensions ranging over a period of two to twelve months. We amortized any remaining unamortized debt discount as of the modification date over the remaining, extended term of the new loans. We applied ASC 470 of modification accounting to the debt instruments which were modified during the quarter or those settled with new notes issued concurrently for the same amounts but different maturity dates. The terms such as the interest rate, prepayment penalties, and default rates will be the same over the new extensions. According to ASC 470, an exchange of debt instruments between or a modification of a debt instrument by a debtor and a creditor in a nontroubled debt situation is deemed to have been accomplished with debt instruments that are substantially different if the present value of the cash flows under the terms of the new debt instrument is at least 10 percent different from the present value of the remaining cash flows under the terms of the original instrument. If the terms of a debt instrument are changed or modified and the cash flow effect on a present value basis is less than 10 percent, the debt instruments are not considered to be substantially different and will be accounted for as modifications.

 

The cash flows of new debt exceeded 10% of the remaining cash flows of the original debt on several loans. During the three months ended March 31, 2024 we recorded losses on extinguishment of liabilities of approximately $1.2 million by calculating the difference of the fair value of the new debt and the carrying value of the old debt. During the three months ended March 31, 2024, the Company extended 19 loans totaling $4,602,842 The Company issued 388,000 shares of common stock and 181 shares of preferred stock for these extensions.

 

Other Debt

 

Fifteen (15) notes in Other Debt are past due as of March 31, 2024.

 

   March 31, 2024   December 31, 2023 
Holders  Interest Rate   Principal   Interest Rate   Principal 
Non-Convertible   -(1)(4)  $964,215    -(4)  $170,000 
Merchant debt (3)        1,188,533         1,094,162 
SBA (2)   3.75%   161,182    3.75%   161,864 
Totals        2,313,930        $1,426,026 
Long Term        161,182         161,864 
Short Term       $2,152,748        $1,264,162 

 

Notes:

 

(1)The $794,215 is part of 1) a term loan of $700,000 principal amount with a 3 year term that matures on September 23, 2025 and 12% interest rate. The term loan is secured by all assets of Uncle Buds. 2) an outstanding line of credit agreement. The two loans are assumed in the acquisition of Uncle Buds.
(2)The Company entered a COVID-19 government loan in 2020, the Economic Injury Disaster Loan (or “EIDL”). The Company’s EIDL loan, $150,000, accrues interest at 3.75% and requires monthly payments of $731 for principal and interest beginning in December 2022. The balance of the principal will be due in 30 years. In connection with the EIDL loan the Company entered into a security agreement with the SBA, whereby the Company granted the SBA a security interest in all of the Company’s right, title and interest in all of the Company’s assets. During the three months ended March 31, 2024, the Company repaid $682 principal on this loan. During the year ended December 31, 2020, the Company borrowed $367,039 (two-year term and 1% interest rate per annum) under the Payroll Protection program (or “2020 PPP”). During the year ended December 31, 2021, the Company borrowed $367,039 through a second Payroll Protection program (or “2021 PPP”) and extended the monthly payment date on the EIDL to December 2022. In year 2021, both 2020 PPP and 2021 PPP was forgiven by the United States and SBA.
(3)During the years ended December 31, 2023, we signed various Merchant Agreements which are secured by second position rights to all customer receipts until the loan has been repaid in full and subject to interest rates of 4.1% - 100.9% per month. Under the terms of these agreements, we received the disclosed Purchase Price and agreed to repay the disclosed Purchase Amount, which is collected by the Merchant lenders at the Daily Payment Rate. We accounted for the Merchant Agreements as loans under ASC 860 because while we provided rights to current and future receipts, we still had control over the receipts. The difference between the Purchase Amount and the Purchase Price is imputed interest that is recorded as interest expense when paid each day. The Company’s Chief Executive Officer guarantees the Company’s performance of all representations, warranties, and covenants made by the Company in the Agreement. For loans outstanding on March 31, 2024 and December 31, 2023, the maturity dates ranged from July, 2023 to October, 2024.
(4)Interest rate of 10%. The maturity date is December 31, 2019. During the year ended December 31, 2023, the term was modified from non-convertible to convertible for two loans in the amount of $651,500. As of March 31, 2024, $170,000 of the non-convertible debt is past due.

 

Pressure BioSciences, Inc.

March 31, 2024 10Q Report

22
 

 

Related Party Notes

 

   March 31, 2024   December 31, 2023 
Holders  Interest Rate   Principal   Interest Rate   Principal   Security
Officers & Directors   -(1)  $486,402    -(1)  $522,450   Unsecured
Other Related Parties   12%   195,850    12%   126,050   Unsecured
Totals        682,252         648,500    
Discount        -         -    
Net       $682,252        $648,500    

 

Notes:

 

(1)Interest varies from 12% to 120%.

 

During the three months ended March 31, 2024, we received short-term convertible loans of $105,875 with $8,823 OID from related parties and repaid $63,300 of related party loans. These notes bear interest of 12% to 120% and are due upon demand. All related party notes are convertible at $2.50/share.

 

We amortized $8,823 of debt discounts during the three months ended March 31, 2024 for all non-convertible and related party notes. The total unamortized discount for all non-convertible and related party convertible notes as of March 31, 2024, and December 31, 2023 was $0 and $0, respectively.

 

7) Stockholders’ Deficit

 

Preferred Stock

 

We are authorized to issue 1,000,000 shares of preferred stock with a par value of $0.01. As of March 31, 2024, there were no shares of Junior A issued and outstanding and no shares of Series A, B, C, G, H, H2, J and K issued and outstanding and as of December 31, 2023, there were no shares of Junior A issued and outstanding, and no shares of Series A, B, C, G, H, H2, J and K issued and outstanding.

 

Below is a summary table of the preferred stock:

 

   March 31, 2024   December 31, 2023 
Series AA Convertible Preferred Stock, $.01 par value; 10,000 shares authorized; 8,645 shares issued and outstanding on March 31, 2024 and December 31, 2023   86    86 
Series BB Convertible Preferred Stock, $.01 par value; 1,000 shares authorized; 1,623 shares issued and outstanding on March 31, 2024 and 1,219 shares outstanding at December 31, 2023   12    12 
Series CC Convertible Preferred Stock, $0.01 par value; 2,000 shares authorized; 401 shares issued and outstanding on March 31, 2024 and December 31, 2023   4    4 
Series DD Convertible Preferred Stock, $0.01 par value, 1,000 shares authorized, 127 shares outstanding on March 31, 2024 and no outstanding at December 31, 2023   1    - 
Total Convertible Preferred Shares   103   $102 

 

(1)623 shares of the Series BB Convertible Preferred Stock are accounted for a short-term liability in the amount due to the company exceeding its stated authorized amount

 

Pressure BioSciences, Inc.

March 31, 2024 10Q Report

23
 

 

Series DD Convertible Preferred Stock

 

Designation. The designation of such series of the Preferred Stock shall be the Series DD Convertible Preferred Stock, par value $0.01 per share (the “Series DD Preferred Stock”). The maximum number of shares of Series DD Preferred Stock shall be One Thousand (1,000) shares.

 

Rank. The Series DD Preferred Stock shall rank prior to the common stock, par value $0.01 per share (the “Common Stock”) of Pressure BioSciences, Inc. (the “Company”), and subordinate to the Series AA and Series CC Preferred Stock, and to all other classes and series of equity securities of the Company which by its terms does not rank on a parity with or senior to the Series DD Preferred Stock (“Junior Stock”). The Series DD Preferred Stock shall be subordinate to and rank junior to all indebtedness of the Company now or hereafter outstanding.

 

Dividends. The holders of shares of the Series DD Preferred Stock shall not be entitled to receive dividends.

 

General Voting Rights. The Series DD Preferred Stock shall have, upon issuance, all of the same voting rights as other issued and outstanding Common Stock of the Company. Each share of Series DD Preferred Stock shall vote based upon the number of Conversion Shares to which they are entitled. The Common Stock into which the Series DD Preferred Stock is convertible shall, upon issuance, have all of the same voting rights as other issued and outstanding Common Stock of the Company.

 

Voluntary Conversion. At any time on or after the Issuance Date, the holder of any such shares of Series DD Preferred Stock may, at such holder’s option, subject to the limitations set forth in Section 6 herein, elect to convert (a “Voluntary Conversion”) all or any portion of the shares of Series DD Preferred Stock held by such person into a number of fully paid and nonassessable shares of Common Stock (the “Conversion Shares”) in accordance with the Conversion Ratio (as defined in Section 4(d)). The Company shall keep written records of the conversion of the shares of Series DD Preferred Stock converted by each holder. A Holder shall be required to deliver the original certificates representing the shares of Series DD Preferred Stock upon complete conversion of the Series DD Preferred Stock.

 

(a) Company Forced Conversion. The Company shall have the right, subject to satisfaction of the conditions in this Section 4(c), to cause the conversion of all shares of Series DD Preferred Stock into Common Stock (“Forced Conversion”). The Company shall deliver prior written notice to the Holder at least ten (10) business days (“Forced Conversion Notice”) prior to the effective date (the “Forced Conversion Effective Date”) of such Forced Conversion. Following the effectiveness of a registration statement permitting the resale of the Conversion Shares held by holders of the Series DD Preferred Stock the Company may effectuate a Forced Conversion if either of the following conditions are satisfied as of the Forced Conversion Effective Date: (i) the VWAP of the Common Stock shall equal or exceed 300% of $2.50 (with such dollar figure to be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction that affects the share price of the Common Stock) for either 10 consecutive trading days, or 15 of 25 consecutive trading days immediately preceding the date of the Forced Conversion Notice; or (ii) listing of the Common Stock on any national securities exchange (NYSE, NYSE American or Nasdaq). The Company shall not have an obligation to register the Conversion Shares of the shares of Series DD Preferred Stock that are issued pursuant to any exchange of previously issued securities.

 

During the three ended March 31, 2024 the Company converted 696 shares of Series BB convertible preferred stock and had 2,862 shares of Series BB convertible preferred stock outstanding which is 623 shares above the authorized of 1,000. As a result, 623 Series BB shares with an approximately fair value of $1,750,000 is included as preferred stock liability as of March 31, 2024. During the three months ended March 31, 2024, the company also issued 127 shares of Series DD restricted preferred stock to investors and consultants, with the following detail:

 

  23 shares of Series BB preferred stock with a fair value of $67,500, for services rendered;
  181 shares of Series BB preferred stock with a fair value of $520,880 for debt extension and modification;
  100 shares of Series BB preferred stock with a fair value of $260,000 and issued with convertible debt;
  303 shares of Series BB preferred stock from interest paid-in kind with fair value of $807,343;
  696 shares of Series BB preferred stock were converted into common stock; 88 shares issued for the conversion of common stock to preferred stock;
  127 shares of Series DD preferred stock with a fair value of $1,066,800 issued to the Uncle Bud’s investor.

 

Pressure BioSciences, Inc.

March 31, 2024 10Q Report

24
 

 

Common Stock

 

Stock Options and Warrants

 

As of March 31, 2024, total unrecognized compensation cost related to the unvested stock-based awards was $433,268, which is expected to be recognized over weighted average period of 2.12 years. The aggregate intrinsic value associated with the options outstanding and exercisable as of March 31, 2024, based on the March 31, 2024 closing stock price of $0.18, was $0.00.

 

The following table summarizes information concerning options and warrants outstanding and exercisable:

Schedule of Options and Warrants Outstanding and Exercisable

   Stock Options   Warrants     
   Weighted Average   Weighted Average   Total 
   Shares   price per share   Shares   price per share   Shares   Exercisable 
Balance outstanding, December 31, 2023   4,920,754   $0.25    15,577,354   $3.50    20,628,305    18,625,326 
Granted   803,750   $.249    -    3.50    803,750      
Exercised   -    -    -    -    -      
Expired   -    -    -    3.50    -      
Forfeited   -    -    -    -    -      
Balance outstanding, March 31, 2024   5,724,504   $.257    15,577,354   $3.50    21,432,055    19,148,779 

 

 

        Options Outstanding   Options Exercisable 
        Weighted Average   Weighted Average 
Range of Exercise Prices   Number of Options   Remaining Contractual Life (Years)   Exercise Price   Number of Options   Remaining Contractual Life (Years)   Exercise Price 
$0.25   $1.00    5,724,504    8.44   $0.26    3,571,425    7.87   $0.25 
$1.01   $3.00    -    -    -    -    -    - 
                                      
           5,724,504    8.44   $0.26    3,571,425    7.87   $0.25 

 

As of March 31, 2024, the 5,724,504 options outstanding have a $.257 weighted average exercise price and 8.44 years of weighted average remaining life for outstanding options and 7.87 years of weighted average remaining life for exercisable options. Of these options, 3,571,425 are currently exercisable.

 

As of March 31, 2024, the warrants outstanding have a $3.50 weighted average exercise price.

 

Common Stock and Warrant Issuances

 

During the three months ended March 31, 2024, the Company accrued approximately $1,136,790 in interest expense for these obligations to issue common stock. During the three months ended March 31, 2023, the Company accrued $1,705,234 in interest expense for these obligations to issue common stock. At the end of March 31, 2024, there were 13 million shares of common stock not issued to shareholders.

 

During the three months ended March 31, 2024 the Company issued a total of 11,706,229 shares of restricted common stock to investors and consultants, with the following detail:

 

581,050 shares with a fair value of $140,455 for new convertible debt issuances;
388,000 shares with a fair value of $110,310 for convertible debt extensions;
70,000 shares with a fair value of $11,100 for services rendered;
4,344,443 shares of common stock with a fair value of $