Pressure BioSciences, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 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 ($)	Year Ended December 31,
Primary geographical markets	2020		2019
North America		844		1,111
Europe		88		145
Asia		289		554
		1,221		1,810

	Year Ended December 31,
Major products/services lines	2020		2019
Hardware		568		713
Consumables		205		298
Contract research services		193		543
Sample preparation accessories		116		82
Technical support/extended service contracts		96		116
Shipping and handling		29		41
Other		14		17
		1,221		1,810

	Year Ended December 31,
Timing of revenue recognition	2020		2019
Transferred at a point in time		978		1,228
Transferred over time		243		582
		1,221		1,810

Schedule of Contract Balances

Contract balances

In thousands of US dollars ($)	December 31, 2020		December 31, 2019
Receivables, which are included in ‘Accounts Receivable’		131		229
Contract liabilities (deferred revenue)		67		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 ($)

2021

2022

Total

Extended warranty service

Schedule of Inventories

The composition of inventory as of December 31, is as follows:

	2020			2019
Raw materials	$	217,682		$	167,189
Finished goods		717,581			793,023
Inventory reserve		(342,496	)		(342,496	)
Total	$	592,767		$	617,716

Schedule of Customer Concentration Risk Percentage

The following table illustrates the level of concentration of the below two groups within revenue as a percentage of total revenues during the years ended December 31:

	2020			2019
Top Five Customers		33	%		41	%
Federal Agencies		4	%		12	%

The following table illustrates the level of concentration of the below two groups within accounts receivable as a percentage of total accounts receivable balance as of December 31:

	2020			2019
Top Five Customers		89	%		83	%
Federal Agencies		10	%		17	%

Schedule of Computation of Loss Per Share

The following table illustrates our computation of loss per share for the years ended December 31:

	2020			2019
Numerator:
Net loss attributable to common shareholders	$	(17,584,710	)	$	(15,868,083	)

Denominator for basic and diluted loss per share:
Weighted average common shares outstanding		3,304,187			1,987,606

Loss per common share - basic and diluted	$	(5.32)		$	(7.98	)

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

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 for the years ended December 31:

	2020		2019
Stock options		1,355,901		1,396,302
Convertible debt		4,474,868		2,351,493
Common stock warrants		14,434,702		9,893,034
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		8,043,000		7,939,000
		28,808,263		22,079,621

Summary of Assumptions for Grants of Stock Options

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 year ended December 31, 2019 (there were no option grants in the year ended December 31, 2020):

Assumptions	Non-Employee Board Members			CEO, other Officers and Employees
Expected life		6.0(yrs	)	6.0(yrs	)
Expected volatility		150.07	%	150.07%-157.28	%
Risk-free interest rate		1.73	%	1.73%-1.79	%
Forfeiture rate		5.00	%	5.00	%
Expected dividend yield		0.0	%	0.0	%

Schedule of Stock Based Compensation Expense

The following table summarizes the effect of this stock-based compensation expense within each of the line items within our accompanying consolidated statements of operations for the years ended December 31:

	2020		2019
Research and development	$	141,202	$	171,928
Selling and marketing		34,142		86,319
General and administrative		313,448		859,030
Total stock-based compensation expense	$	488,792	$	1,117,277

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 December 31, 2020:

			Fair value measurements at December 31, 2020 using:
	December 31, 2020		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Equity Securities	$	517,001	$	517,001		-		-
Total Financial Assets	$	517,001	$	517,001	$	-	$	-

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:
	December 31, 2019		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	$	-	$	-