Pressure BioSciences, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Principles Policies (Tables)

Summary of Significant Accounting Principles Policies (Tables)

3 Months Ended

Mar. 31, 2020

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

In thousands of US dollars ($)
Primary geographical markets	March 31, 2020		March 31, 2019
North America	$	144	$	224
Europe		1		40
Asia		109		246
	$	254	$	510

Major products/services lines	March 31, 2020		March 31, 2019
Instruments	$	130	$	138
Consumables		56		62
Others		68		310
	$	254	$	510

Timing of revenue recognition	March 31, 2020		March 31, 2019
Products transferred at a point in time	$	225	$	501
Services transferred over time		29		9
	$	254	$	510

Schedule of Contract Balances

Contract balances

In thousands of US dollars ($)	March 31, 2020		December 31, 2019
Receivables, which are included in ‘Accounts Receivable’		121		229
Contract liabilities (deferred revenue)		70		41

Schedule of Future Related to 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 ($)

2020

2021

Total

Extended warranty service

Schedule of Customer Concentration Risk Percentage

The following table illustrates the level of concentration as a percentage of total revenues during the three months ended March 31, 2020 and 2019. The Top Five Customers category may include federal agency revenues if applicable.

	For the Three Months Ended
	March 31,
	2020			2019
Top Five Customers		68	%		73	%
Federal Agencies		6	%		18	%

The following table illustrates the level of concentration as a percentage of net accounts receivable balance as of March 31, 2020 and December 31, 2019. The Top Five Customers category may include federal agency receivable balances if applicable.

	March 31, 2020			December 31, 2019
Top Five Customers		77	%		83	%
Federal Agencies		4	%		17	%

Schedule of Computation of Loss Per Share

The following table illustrates our computation of loss per share for the three months ended March 31, 2020 and 2019:

	For the Three Months Ended
	March 31,
	2020			2019
Numerator:
Net loss attributable to common shareholders	$	(4,278,471	)	$	(3,470,982	)

Denominator for basic and diluted loss per share:
Weighted average common stock shares outstanding		2,648,039			1,723,557

Loss per common share – basic and diluted	$	(1.62	)	$	(2.01	)

Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share

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 G Convertible Preferred Stock, Series H and H2 Convertible Preferred Stock, Series J Convertible Preferred Stock, Series K Convertible Preferred Stock and Series AA Convertible Preferred Stock are presented below as if they were converted into common shares according to the conversion terms.

	As of March 31,
	2020		2019
Stock options		1,393,551		366,734
Convertible debt		3,125,633		471,015
Common stock warrants		11,295,764		8,380,875
Convertible preferred stock:
Series D Convertible Preferred		25,000		25,000
Series G Convertible Preferred		26,857		26,857
Series H Convertible Preferred		33,334		33,334
Series H2 Convertible Preferred		70,000		70,000
Series J Convertible Preferred		115,267		115,267
Series K Convertible Preferred		229,334		229,334
Series AA Convertible Preferred		7,939,000		7,059,822
		24,253,740		16,778,238

Schedule of Stock Based Compensation Expense

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,
	2020		2019
Cost of sales	$	7,956	$	8,316
Research and development		38,826		34,624
Selling and marketing		13,936		22,119
General and administrative		181,051		180,333
Total stock-based compensation expense	$	241,769	$	245,392

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

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, 2020:

			Fair value measurements at March 31, 2020 using:
	31-Mar-20		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Equity Securities		166,014		166,014		-		-
Total Financial Assets	$	166,014	$	166,014	$	-	$	-

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, 2019:

			Fair value measurements at December 31, 2019 using:
		31-Dec-19		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Equity Securities		16,643		16,643		-		-
Total Financial Assets	$	16,643	$	16,643	$	-	$	-

- Definition

Tabular disclosure of all significant concentrations of risk, including credit risk and market risk, arising from all financial instruments (as defined), whether from an individual counterparty or groups of counterparties. The disclosure concerning concentrations of risk may consist of the following information: (1) for concentrations of credit risk disclosure may include: (a) information about the (shared) activity, region, or economic characteristic that identifies the concentration, (b) the maximum amount of loss due to credit risk that, based on the gross fair value of the financial instrument, the entity would incur if parties to the financial instruments that make up the concentration failed completely to perform according to the terms of the contracts and the collateral or other security, if any, for the amount due proved to be of no value to the entity, (c) the policy of requiring collateral or other security to support financial instruments subject to credit risk, information about the entity's access to that collateral or other security, and the nature and a brief description of the collateral or other security supporting those financial instruments, and (d) the policy of entering into master netting arrangements to mitigate the credit risk of financial instruments, information about the arrangements for which the entity is a party, and a brief description of the terms of those arrangements, including the extent to which they would reduce the entity's maximum amount of loss due to credit risk and (2) for disclosure of quantitative information about the market risks of financial instruments that is consistent with the way the company manages or adjusts those risks, disclosure may include: (a) more details about current positions and perhaps activity during the period, (b) the hypothetical effects on comprehensive income (or net assets), or annual income, of several possible changes in market prices, (c) a gap analysis of interest rate re-pricing or maturity dates, (d) the duration of the financial instruments, (e) the entity's value at risk from derivatives and from other positions at the end of the reporting period and the average value at risk during the year, or (f) other ways of reporting quantitative information as internally developed.

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