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 Policies (Tables)

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2021

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

In thousands of US dollars ($)	Three Months Ended March 31,
Primary geographical markets	2021		2020
North America	$	208	$	143
Europe		84		54
Asia		268		57
	$	560	$	254

	Three Months Ended March 31,
Major products/services lines	2021		2020
Hardware	$	377	$	129
Consumables		102		56
Contract research services		6		10
Sample preparation accessories		29		25
Technical support/extended service contracts		24		19
Shipping and handling		19		9
Other		3		6
	$	560	$	254

	Three Months Ended March 31,
Timing of revenue recognition	2021		2020
Products transferred at a point in time	$	538	$	225
Services transferred over time		22		29
	$	560	$	254

Schedule of Contract Balances

Contract balances

In thousands of US dollars ($)	March 31, 2021		December 31, 2020
Receivables, which are included in ‘Accounts Receivable’	$	505	$	131
Contract liabilities (deferred revenue)		54		67

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		$	42				12			$	54

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, 2021 and 2020.

	For the Three Months Ended
	March 31,
	2021			2020
Top Five Customers		88	%		68	%
Federal Agencies		1	%		6	%

The following table illustrates the level of concentration as a percentage of net accounts receivable balance as of March 31, 2021 and December 31, 2020. The Top Five Customers category may include federal agency receivable balances if applicable.

	March 31, 2021			December 31, 2020
Top Five Customers		94	%		89	%
Federal Agencies		1	%		10	%

Schedule of Computation of Loss Per Share

The following table illustrates our computation of loss per share for the three months ended March 31, 2021 and 2020:

	For the Three Months Ended
	March 31,
	2021			2020
Numerator:
Net loss attributable to common stockholders	$	(7,038,686	)	$	(4,278,471	)

Denominator for basic and diluted loss per share:
Weighted average common stock shares outstanding		4,865,826			2,648,039

Loss per common share – basic and diluted	$	(1.45	)	$	(1.62	)

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,
	2021		2020
Stock options		1,358,490		1,393,551
Convertible debt		4,757,701		3,125,633
Common stock warrants		14,901,211		11,295,764
Convertible preferred stock:
Series D Convertible Preferred Stock		25,000		25,000
Series G Convertible Preferred Stock		26,857		26,857
Series H Convertible Preferred Stock		33,334		33,334
Series H2 Convertible Preferred Stock		70,000		70,000
Series J Convertible Preferred Stock		115,267		115,267
Series K Convertible Preferred Stock		229,334		229,334
Series AA Convertible Preferred Stock		8,083,000		7,939,000
		29,600,194		24,253,740

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,
	2021		2020
Cost of sales	$	5,053	$	7,956
Research and development		25,862		38,826
Selling and marketing		4,595		13,936
General and administrative		25,727		181,051
Total stock-based compensation expense	$	61,237	$	241,769

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, 2021:

			Fair value measurements at March 31, 2021 using:
	March 31, 2021		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Equity Securities	$	409,098	$	409,098		-		-
Total Financial Assets	$	409,098	$	409,098	$	-	$	-

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	$	-	$	-

- 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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