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)

9 Months Ended

Sep. 30, 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 September 30,				Nine Months Ended September 30,
Primary geographical markets	2021		2020		2021		2020
North America	$	351	$	387	$	1,036	$	694
Europe		57		2		244		6
Asia		110		145		407		356
	$	518	$	534	$	1,687	$	1,056

	Three Months Ended September 30,				Nine Months Ended September 30,
Major products/services lines	2021		2020		2021		2020
Hardware	$	276	$	313	$	989	$	569
Consumables		45		49		191		156
Contract research services		100		84		242		128
Sample preparation accessories		39		40		108		98
Technical support/extended service contracts		26		33		84		69
Shipping and handling		11		11		46		26
Other		21		4		27		10
	$	518	$	534	$	1,687	$	1,056

	Three Months Ended September 30,				Nine Months Ended September 30,
Timing of revenue recognition	2021		2020		2021		2020
Products transferred at a point in time	$	392	$	417	$	1,361	$	859
Services transferred over time		126		117		326		197
	$	518	$	534	$	1,687	$	1,056

Schedule of Contract Balances

Contract balances

In thousands of US dollars ($)

September 30,

2021

December 31,

2020

Receivables, which are included in ‘Accounts Receivable’

539

131

Contract liabilities (deferred revenue)

Schedule of Future Related to Performance Obligations

In thousands of US dollars ($)		2021				2022		Total
Extended warranty service		$	44		$	9		$	53

Schedule of Customer Concentration Risk Percentage

The following table illustrates the level of concentration as a percentage of total revenues during the three and nine months ended September 30, 2021 and 2020.

	For the Three Months Ended
	September 30,
	2021			2020
Top Five Customers		56	%		59	%
Federal Agencies		3	%		2	%

	For the Nine Months Ended
	September 30,
	2021			2020
Top Five Customers		42	%		36	%
Federal Agencies		6	%		3	%

The following table illustrates the level of concentration as a percentage of net accounts receivable balance as of September 30, 2021 and December 31, 2020. The Top Five Customers category may include federal agency receivable balances if applicable.

	September 30, 2021			December 31, 2020
Top Five Customers		63	%		89	%
Federal Agencies		2	%		10	%

Schedule of Computation of Loss Per Share

The following table illustrates our computation of loss per share for the three and nine months ended September 30, 2021 and 2020:

	2021			2020			2021			2020
	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2021			2020			2021			2020
Numerator:
Net loss attributable to common stockholders	$	(6,199,176	)	$	(3,675,718	)	$	(18,387,204	)	$	(12,919,941	)

Denominator for basic and diluted loss per share:
Weighted average common stock shares outstanding		7,561,728			3,612,958			6,083,017			3,059,095

Loss per common share – basic and diluted	$	(0.82	)	$	(1.02	)	$	(3.02	)	$	(4.22	)

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

	As of September 30,
	2021		2020
Stock options		1,342,490		1,392,370
Convertible debt		5,330,318		4,610,868
Common stock warrants		16,265,570		13,831,497
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		8,649,000		7,983,000
		32,087,170		28,317,527

Schedule of Stock Based Compensation Expense

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Cost of sales	$	8,664	$	5,164	$	18,824	$	18,227
Research and development		43,031		26,423		95,384		91,386
Selling and marketing		7,168		6,428		17,650		26,722
General and administrative		36,385		28,527		88,085		237,317
Total stock-based compensation expense	$	95,248	$	66,542	$	219,943	$	373,652

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 September 30, 2021:

			Fair value measurements at September 30, 2021 using:
	September 30, 2021		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Equity Securities	$	112,550	$	112,550		-		-
Total Financial Assets	$	112,550	$	112,550	$	-	$	-

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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