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, 2018

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	Q1 2018		Q1 2017
North America		365		326
Europe		155		157
Asia		91		68
		611		551

Major products/services lines	Q1 2018		Q1 2017
Instruments		420		396
Grants		25		25
Consumables		75		63
Others		91		67
		611		551

Timing of revenue recognition	Q1 2018		Q1 2017
Products transferred at a point in time		576		514
Products and services transferred over time		35		37
		611		551

Schedule of Contract Balances

Contract balances

In thousands of US dollars ($)	March 31, 2018		December 31, 2017
Receivables, which are included in ‘Accounts Receivable’		323		207
Contract liabilities (deferred revenue)		285		320

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 ($)		2018				2019				2020				Total
Extended warranty service			235				50				-				285

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, 2018 and 2017. The Top Five Customers category may include federal agency revenues if applicable.

	For the Three Months Ended
	March 31,
	2018			2017
Top Five Customers		40	%		61	%
Federal Agencies		4	%		5	%

The following table illustrates the level of concentration as a percentage of net accounts receivable balance as of March 31, 2018 and December 31, 2017. The Top Five Customers category may include federal agency receivable balances if applicable.

	March 31, 2018			December, 31, 2017
Top Five Customers		75	%		85	%
Federal Agencies		1	%		1	%

Schedule of Computation of Loss Per Share

The following table illustrates our computation of loss per share for the three months ended March 31, 2018 and 2017:

	For the Three Months Ended
	March 31,
	2018			2017
Numerator:
Net loss	$	(2,231,654	)	$	(2,246,504	)
Denominator for basic and diluted loss per share:
Weighted average common stock shares outstanding		1,363,326			1,040,769

Loss per common share – basic and diluted	$	(1.64	)	$	(2.16	)

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

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

	As of March 31,
	2018		2017
Stock options		247,136		260,475
Convertible debt		1,020,603		868,910
Common stock warrants		928,541		846,640
Convertible preferred stock:
Series D Convertible Preferred Stock		25,000		25,000
Series G Convertible Preferred Stock		26,857		28,857
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		117,367
Series K Convertible Preferred Stock		229,334		227,200
		2,696,072		2,477,783

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,
	2018		2017
Research and development	$	15,499	$	15,970
Selling and marketing		7,197		10,886
General and administrative		63,324		47,673
Total stock-based compensation expense	$	86,020	$	74,529

Schedule of Liabilities Measured at Fair Value On Recurring Basis

The following table provides a reconciliation of the warrant derivative liability, convertible debt, conversion option derivative liability, stock warrant, additional paid-in capital and accumulated deficit on the consolidated balance sheet as of December 31, 2016:

	Convertible debt, current portion		Convertible debt, long term portion		Warrant Derivative Liability			Conversion Option Liability			Warrants to acquire common stock		Additional Paid-in Capital		Accumulated deficit
Balance, January 1, 2017 (Prior to adoption of ASU 2017-11)	$	4,005,702	$	529,742	$	1,685,108		$	951,059		$	6,325,102	$	27,544,265	$	(42,264,190	)
Reclassified derivative liabilities and cumulative effect of adoption		769,316		154,152	$	(1,685,108	)		(951,059	)		2,636,236		1,446,011		(2,369,548	)
Balance, January 1, 2017 (After adoption of ASU 2017-11)	$	4,775,018	$	683,894	$	-		$	-		$	8,961,338	$	28,990,276	$	(44,633,738	)

Schedule of Reconciliation Related to Liabilities

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, 2018:

			Fair value measurements at March 31, 2018 using:
	March 31, 2018		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Available-For-Sale Equity Securities		15,095		15,095		-		-
Total Financial Assets	$	15,095	$	15,095	$	-	$	-

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, 2017:

			Fair value measurements at December 31, 2017 using:
	December 31, 2017		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Available-For-Sale Equity Securities		19,825		19,825		-		-
Total Financial Assets	$	19,825	$	19,825	$	-	$	-