a)  

Received $4.9M in a private placement of fixed-rate convertible debentures between July – Dec 2015

b)  

Eliminated 100% of the Company's variable-rate convertible debt

c)  

Increased Total/Products & Services/Grant Revenue and Product Gross Margins, 2015 vs 2014

d)  

Awarded $1,020,969 NIH SBIR Phase II grant to develop a high-throughput, high pressure-based DNA shearing system for Next Generation Sequencing ("NGS")

e)  

SCIEX, a global leader in life science analytical technologies, and a wholly-owned subsidiary of Danaher Corporation, announced an exclusive co-marketing agreement with PBI to improve protein quantitation in complex samples.

f)  

Professor Ruedi Aebersold, an international authority in proteomics based at ETH Zurich, and his colleagues published an article in the well-respected scientific journal Nature Medicine on a breakthrough method to permit quantification of thousands of proteins in needle biopsy samples. The method was enabled by PBI's pressure cycling technology ("PCT") platform. The Company estimates there are millions of needle biopsy samples analyzed worldwide every year.

g)  

Collaborators and customers published and presented multiple papers throughout 2015 to highlight the key advantages of the Company's PCT platform in a number of important applications, including: (i) drug discovery and design, (ii) cancer detection, (iii) analysis of microbial populations in soil, (iv) proteomic profiling and classification of prostate cancer tissue biopsy samples, (v) potential acceleration of the discovery of new biomarkers for the early diagnosis and prediction of complications in diabetes, (vi) potential improvement in the extraction of DNA from rape kits and other forensic samples, and (vii) potential discovery of new biomarkers and underlying pathways in the emergence and progression of COPD-associated lung cancer.

h)  

The commercial release of PCT-HD, the "Next Generation Protein Preparation System", in two separate presentations at a major international scientific meeting.

a)  

Continue to implement a sound path toward financial self-sufficiency and future growth and profitability.

b)  

Increase total/products & services/grant revenue & gross margins, quarter/quarter and year/year.

c)  

Complete the manufacture of the Barocycler NEP2320 Extreme and begin the commercialization plan for this robust, computer-driven, highly capable new pressure-generating instrument.

d)  

Support and expand our co-marketing program with SCIEX.

e)  

Secure a strategic marketing and distribution partner for the Barozyme HT48 high throughput system and for the NMR and EPR PCT-based sample preparation systems.

f)  

Implement an expanded marketing campaign for the patent-pending micro-Pestle consumable.

g)  

Expand sales and marketing capabilities to reach into new countries, investigators, and fields-of-use.

h)  

Continue to prepare for a targeted up-list to NASDAQ or the NYSE.

PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

(AUDITED)

December 31, 2015

December 31, 2014

ASSETS

CURRENT ASSETS

Cash and cash equivalents

$

116,783

$

473,948

Accounts receivable

113,256

272,022

Inventories, net of $50,000 reserve at December 31, 2015 and December 31, 2014

1,038,371

850,552

Prepaid income taxes

7,381

7,381

Prepaid expenses and other current assets

213,926

104,204

Total current assets

1,489,717

1,708,107

Investment in available-for-sale equity securities

294,522

-

Property and equipment, net

20,149

36,025

TOTAL ASSETS

$

1,804,388

$

1,744,132

LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES

Accounts payable

$

941,389

$

1,035,781

Accrued employee compensation

176,009

157,347

Accrued professional fees and other

821,088

719,432

Deferred revenue

140,878

27,117

Convertible debt, net of unamortized discounts of $0 and $328,681, respectively

100,000

1,004,513

Other debt, net of unamortized discounts of $3,041 and $0, respectively

151,628

80,480

Warrant derivative liabilities

3,295,976

159,875

Conversion option derivative liabilities

3,940,791

590,341

Total current liabilities

9,567,759

3,774,886

LONG TERM LIABILITIES

Convertible debt, net of unamortized discounts of $5,223,658 and $0, respectively

177,342

-

Deferred revenue

36,935

28,977

TOTAL LIABILITIES

9,782,036

3,803,863

STOCKHOLDERS' DEFICIT

Series D Convertible Preferred Stock, $.01 par value; 850 shares authorized; 300 shares issued and outstanding on December 31, 2015 and 2014, respectively (Liquidation value of $300,000)

3

3

Series G Convertible Preferred Stock, $.01 par value; 240,000 shares authorized; 86,570 shares issued and outstanding on December 31, 2015 and 2014, respectively

866

866

Series H Convertible Preferred Stock, $.01 par value; 10,000 shares authorized; 10,000 shares issued and outstanding on December 31, 2015 and 2014, respectively

100

100

Series H2 Convertible Preferred Stock, $.01 par value; 21 shares authorized; 21 shares issued and outstanding on December 31, 2015 and 2014, respectively

-

-

Series J Convertible Preferred Stock, $.01 par value; 6,250 shares authorized; 3,546 shares issued and outstanding on December 31, 2015 and 2014, respectively

36

36

Series K Convertible Preferred Stock, $.01 par value; 15,000 shares authorized; 11,416 shares issued and outstanding on December 31, 2015 and 2014, respectively

114

114

Common stock, $.01 par value; 100,000,000 shares authorized; 23,004,898 and 18,673,390 shares issued and outstanding on December 31, 2015 and 2014, respectively

230,050

186,734

Warrants to acquire common stock

5,416,681

5,253,566

Additional paid-in capital

26,036,733

24,617,564

Accumulated other comprehensive income

(105,025)

-

Accumulated deficit

(39,557,206)

(32,118,714)

Total stockholders' deficit

(7,977,648)

(2,059,731)

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT

$

1,804,388

$

1,744,132

PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF OPERATIONS

(AUDITED)

For the Year Ended

December 31,

2015

2014

Revenue:

Products, services, other

$

1,409,991

$

1,350,150

Grant revenue

387,700

24,594

Total revenue

1,797,691

1,374,744

Costs and expenses:

Cost of products and services

609,054

652,438

Research and development

1,105,295

952,555

Selling and marketing

745,574

721,229

General and administrative

2,902,950

2,386,872

Total operating costs and expenses

5,362,873

4,713,094

Operating loss

(3,565,182)

(3,338,350)

Other (expense) income:

Interest expense

(4,146,416)

(1,303,129)

Other expense

(36,879)

(169,554)

Gain on extinguishment of embedded derivative liabilities

2,555,180

-

Change in fair value of derivative liabilities

(2,222,001)

198,493

Total other (expense) income

(3,850,116)

(1,274,190)

Net loss

(7,415,298)

(4,612,540)

Accrued dividends on convertible preferred stock

(23,194)

(143,771)

Deemed dividends on convertible preferred stock

-

(1,495,415)

Net loss applicable to common shareholders

$

(7,438,492)

$

(6,251,726)

Net loss per share attributable to common stockholders - basic and diluted

$

(0.36)

$

(0.44)

Weighted average common stock shares outstanding used in the basic and diluted net loss per share calculation

20,726,205

14,264,753

Investor Contacts:

Richard T. Schumacher, President & CEO

(508) 230-1828 (T)

Jeffrey N. Peterson, Chairman of the Board

(650) 812-8121 (T)