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, 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 September 30,				Nine Months Ended September 30,
Primary geographical markets	2018		2017		2018		2017
North America		408		401		1,123		1,124
Europe		59		3		278		161
Asia		55		242		370		453
		522		646		1,771		1,738

	Three Months Ended September 30,				Nine Months Ended September 30,
Major products/services lines	2018		2017		2018		2017
Hardware		278		411		1,094		1,155
Grants		61		42		106		127
Consumables		43		85		182		200
Contract research services		80		-		147		-
Sample preparation accessories		22		47		118		121
Technical support/extended service contracts		20		35		70		78
Shipping and handling		10		17		38		38
Other		8		9		16		19
		522		646		1,771		1,738

	Three Months Ended September 30,				Nine Months Ended September 30,
Timing of revenue recognition	2018		2017		2018		2017
Products transferred at a point in time		362		560		1,546		1,546
Products and services transferred over time		160		86		225		192
		522		646		1,771		1,738

Schedule of Contract Balances

Contract balances

In thousands of US dollars ($)	September 30, 2018		December 31, 2017
Receivables, which are included in ‘Accounts Receivable’		374		207
Contract liabilities (deferred revenue)		206		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			7				199				-				206

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 nine months ended September 30, 2018 and 2017.

	For the Three Months Ended
	September 30,
	2018			2017
Top Five Customers		59	%		73	%
Federal Agencies		12	%		30	%

	For the Nine Months Ended
	September 30,
	2018			2017
Top Five Customers		36	%		38	%
Federal Agencies		10	%		19	%

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

	September 30, 2018			December, 31, 2017
Top Five Customers		76	%		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 and nine months ended September 30, 2018 and 2017:

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2018			2017			2018			2017
Numerator:
Net loss	$	(1,808,656	)	$	(2,343,576	)	$	(6,321,542	)	$	(7,889,676	)
Deemed dividend on down round feature		-			-			(213,012	)		-
Deemed dividend on beneficial conversion feature		(1,146,280	)		-			(11,678,571	)		-
Preferred stock dividends		(277,439	)		-			(373,318	)		-
Net loss applicable to common shareholders	$	(3,232,375	)	$	(2,343,576	)	$	(18,586,443	)	$	(7,889,676	)

Denominator for basic and diluted loss per share:
Weighted average common stock shares outstanding		1,606,575			1,133,791			1,466,424			1,084,370

Loss per common share – basic and diluted	$	(2.01	)	$	(2.07	)	$	(12.67	)	$	(7.28	)

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 September 30,
	2018		2017
Stock options		341,790		249,636
Convertible debt		361,391		828,870
Common stock warrants		6,769,607		902,033
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		227,200
Series AA Convertible Preferred Stock		5,655,454		-
		13,628,034		2,478,197

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 Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
Cost of products and services	$	4,698	$	-	$	4,698	$	-
Research and development		28,444		37,345		59,592		76,263
Selling and marketing		11,822		21,778		26,298		46,112
General and administrative		106,350		80,276		208,996		196,535
Total stock-based compensation expense	$	151,314	$	139,399	$	299,584	$	318,910

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 September 30, 2018:

			Fair value measurements at September 30, 2018 using:
	September 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		16,643		16,643		-		-
Total Financial Assets	$	16,643	$	16,643	$	-	$	-

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	$	-	$	-