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)

6 Months Ended

Jun. 30, 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 ($)	Three Months Ended June 30,				Six Months Ended June 30,
Primary geographical markets	2018		2017		2018		2017
North America		351		396		716		722
Europe		64		1		219		158
Asia		224		143		315		211
		639		540		1,250		1,091

	Three Months Ended June 30,				Six Months Ended June 30,
Major products/services lines	2018		2017		2018		2017
Hardware		397		347		817		743
Grants		20		60		45		85
Consumables		64		52		139		115
Contract research services		67		-		67		-
Sample preparation accessories		47		39		96		74
Technical support/extended service contracts		22		26		50		43
Shipping and handling		16		11		28		21
Other		6		5		8		10
		639		540		1,250		1,091

	Three Months Ended June 30,				Six Months Ended June 30,
Timing of revenue recognition	2018		2017		2018		2017
Products transferred at a point in time		609		471		1,185		985
Products and services transferred over time		30		69		65		106
		639		540		1,250		1,091

Schedule of Contract Balances

Contract balances

In thousands of US dollars ($)	June 30, 2018		December 31, 2017
Receivables, which are included in ‘Accounts Receivable’		526		207
Contract liabilities (deferred revenue)		255		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			209				46				-				255

Schedule of Customer Concentration Risk Percentage

The following table illustrates the level of concentration as a percentage of total revenues during the three months and six months ended June 30, 2018 and 2017.

	For the Three Months Ended
	June 30,
	2018			2017
Top Five Customers		54	%		60	%
Federal Agencies		12	%		11	%

	For the Six Months Ended
	June 30,
	2018			2017
Top Five Customers		38	%		42	%
Federal Agencies		8	%		8	%

The following table illustrates the level of concentration as a percentage of net accounts receivable balance as of June 30, 2018 and December 31, 2017. The Top Five Customers category may include federal agency receivable balances if applicable.

	June 30, 2018			December, 31, 2017
Top Five Customers		70	%		85	%
Federal Agencies		11	%		1	%

Schedule of Computation of Loss Per Share

The following table illustrates our computation of loss per share for the three months and six months ended June 30, 2018 and 2017:

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Numerator:
Net loss	$	(2,281,232	)	$	(583,760	)	$	(4,512,886	)	$	(6,178,275	)
Deemed dividend on down round feature		(213,012	)		-			(213,012	)		-
Deemed dividend on beneficial conversion feature		(10,532,291	)		-			(10,532,291	)		-
Preferred stock dividends		(95,879	)		-			(95,879	)		-
Net loss applicable to common shareholders	$	(13,122,414	)	$	(583,760	)	$	(15,354,068	)	$	(6,178,275	)

Denominator for basic and diluted loss per share:
Weighted average common stock shares outstanding		1,426,698			1,077,529			1,395,187			1,059,250

Loss per common share – basic and diluted	$	(9.20	)	$	(0.54	)	$	(11.01	)	$	(5.83	)

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 Convertible Preferred Stock, Series 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 June 30,
	2018		2017
Stock options		244,467		250,109
Convertible debt		346,133		827,560
Common stock warrants		6,263,607		890,047
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
Series AA Convertible Preferred Stock		5,195,400		-
		12,549,399		2,469,474

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				For the Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Research and development	$	15,649	$	22,949	$	31,148	$	38,918
Selling and marketing		7,279		13,447		14,476		24,334
General and administrative		39,321		68,586		102,646		116,259
Total stock-based compensation expense	$	62,249	$	104,982	$	148,270	$	179,511

Schedule of Reconciliation Related to Liabilities

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 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 June 30, 2018:

			Fair value measurements at June 30, 2018 using:
	June 30, 2018		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Available-For-Sale Equity Securities		17,991		17,991		-		-
Total Financial Assets	$	17,991	$	17,991	$	-	$	-

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	$	-	$	-