Pressure BioSciences, Inc. Reports Second Quarter 2007 Financial Results and Provides Business Update
WEST BRIDGEWATER, Mass., Aug. 14 /PRNewswire-FirstCall/ -- Pressure BioSciences, Inc. (Nasdaq: PBIO) today announced that total revenue for the quarter ended June 30, 2007 was $202,127 as compared to $28,783 for the same period in 2006. Revenue from the sale of PCT products and services was $136,355 for the three months ended June 30, 2007 as compared to $28,783 for the same period in the prior year. This increase in revenue from PCT products and services was the result of the sale of four Barocycler NEP3229 PCT Sample Preparation Systems in the second quarter of 2007 versus one in the second quarter of 2006. Also contributing to this increase in revenue was an increase in the number of PULSE Tubes that were sold, revenue from Barocycler NEP3229 instruments under lease, and the recognition of extended service contract revenue. In addition to revenue received from the sale of PCT products and services, the Company also recorded $65,772 of grant revenue during the second quarter of 2007. The majority of this revenue was billed pursuant to the Company's SBIR Phase 1 grant for the development of novel protein extraction methods based on the Company's patented pressure cycling technology (PCT). During the same period in 2006, the Company did not record any grant revenue.
The Company reported total revenue of $333,748 for the six months ended June 30, 2007 as compared to $82,197 for the six months ended June 30, 2006. Revenue from the sale of PCT products and services was $174,297 for the six months ended June 30, 2007 as compared to $82,197 for the same period in the prior year. This increase in revenue from PCT products and services was primarily the result of the sale of five Barocycler NEP3229 PCT Sample Preparation Systems in the first half of 2007 versus two in the first half of 2006. Also contributing to this increase in revenue was an increase in the number of PULSE Tubes that were sold, revenue from Barocycler instruments under lease, and the recognition of extended service contract revenue. In addition to revenue received from the sale of PCT products and services, the Company also recorded $159,451 of grant revenue during the first half of 2007. The majority of this revenue was billed pursuant to the Company's SBIR Phase 1 grant for the development of novel protein extraction methods based on the Company's patented pressure cycling technology (PCT). During the same period in 2006, the Company did not record any grant revenue.
As of June 30, 2007, the Company had cash and cash equivalents of approximately $6.8 million, as compared to approximately $5.3 million on December 31, 2006. Edward H. Myles, Senior Vice President of Finance and CFO, commented: "During the second quarter of 2007, we completed two transactions that strengthened our balance sheet, namely: (1) the liquidation of all our remaining shares in Panacos Pharmaceuticals common stock, and (2) the full divestiture of Source Scientific, LLC. These transactions resulted in the receipt of approximately $3.0 million of cash during the quarter. This cash will be used to support a number of important Company activities, including various research and development programs and our previously announced PCT product line commercialization plan."
Richard T. Schumacher, Founder, President, and CEO of Pressure BioSciences, Inc. said: "In addition to improving our balance sheet through the Source and Panacos transactions, other notable achievements of our second quarter included: (1) record revenue driven by the sale of four PCT Sample Preparation Systems; (2) the release of the Barocycler NEP2320 as both a demonstration unit and commercial product; (3) approval to CE Mark the Barocycler NEP3229; (4) the development of a novel, potentially revolutionary method for the safe, rapid, efficient, and reproducible extraction of proteins from lipid-rich samples, and the filing of a U.S. patent application related to this discovery; (5) the launch of our first PCT-dependent research-use-only kit (ProteoSolve(LRS)); and (6) progress on the development of our external sales force. These are important achievements that we believe will help drive the acceptance of PCT in many areas of the life sciences. To that end, we look forward to the second half of 2007 with an expectation that we will continue to be successful in both the commercialization of our PCT product line, and in the overall growth of our Company."
About Pressure BioSciences, Inc.
Pressure BioSciences, Inc. (PBI) is a publicly traded company focused on the development of a novel, enabling technology called pressure cycling technology (PCT). PCT uses cycles of hydrostatic pressure between ambient and ultra-high levels (up to 35,000 psi and greater) to control bio-molecular interactions. PBI currently holds 13 US and 5 foreign patents covering multiple applications of PCT in the life sciences field, including in such areas as genomic and proteomic sample preparation, pathogen inactivation, the control of enzymes, immunodiagnostics, and protein purification.
Forward Looking Statements
Statements contained in this press release regarding the Company's intentions, hopes, beliefs, expectations, or predictions of the future are "forward-looking'' statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon the Company's current expectations, forecasts, and assumptions that are subject to risks, uncertainties, and other factors that could cause actual outcomes and results to differ materially from those indicated by these forward-looking statements. These risks, uncertainties, and other factors include, but are not limited to: possible difficulties or delays in the implementation of the Company's strategies that may adversely affect the Company's continued commercialization of its PCT Sample Preparation System; the Company's financial results for the three and six months ended June 30, 2007 may not necessarily be indicative of future results as future revenues may not meet expectations due to the possible failure of the Company's products to achieve commercial acceptance, changes in customers needs and technological innovations, and expenses that may be higher than anticipated due to unforeseen cost increases; if the Company's expenses are higher than anticipated or if the Company's revenues do not increase, the Company may not have sufficient cash to support its planned activities and the Company may be unable to obtain financing on acceptable terms; the Company may not be successful in developing its external sales force; the new PCT-dependent method of protein extraction from lipid-rich samples may not offer any advantages over current methods of protein extraction and may not be adopted by the scientific community; the Company's new ProteoSolve kit may not achieve commercial acceptance; and the Company may be unable to develop new PCT-related products that achieve commercial acceptance. Additional risks and uncertainties that could cause actual results to differ materially from those indicated by these forward-looking statements are discussed under the heading "Risk Factors" in the Company's Quarterly Report on Form 10-QSB for the quarter ended June 30, 2007, in the Company's Annual Report on Form 10-KSB for the year ended December 31, 2006, and other reports filed by the Company from time to time with the SEC. The Company undertakes no obligation to update any of the information included in this release, except as otherwise required by law.
Visit us at our website http://www.pressurebiosciences.com Investor Contacts: Richard T. Schumacher, President & CEO Edward H. Myles, Senior Vice President of Finance & CFO PressureBioSciences, Inc. (T) 508-580-1818 Consolidated Statements of Operations (UNAUDITED) For the Three For the Six Months Ended Months Ended June 30, June 30, 2007 2006 2007 2006 REVENUE: PCT Products, services, other $136,355 $28,783 $174,297 $82,197 Grant revenue 65,772 - 159,451 - Total revenue 202,127 28,783 333,748 82,197 COSTS AND EXPENSES: Cost of PCT products and services 57,629 47,104 89,282 98,650 Research and development 538,015 401,500 999,547 660,319 Selling and marketing 350,823 128,005 607,354 195,384 General and administrative 624,462 595,481 1,105,544 1,285,107 Total operating costs and expenses 1,570,929 1,172,090 2,801,727 2,239,460 Operating loss from continuing operations (1,368,802)(1,143,307)(2,467,979) (2,157,263) OTHER INCOME: Realized gain on securities available for sale 1,301,247 - 2,028,720 517,938 Interest income 80,482 109,287 152,084 217,792 Total other income 1,381,729 109,287 2,180,804 735,730 Income (loss) from continuing operations before income taxes 12,927 (1,034,020) (287,175) (1,421,533) Income tax benefit from continuing operations 3,516 219,759 44,035 297,237 Income (loss) from continuing operations 16,443 (814,261) (243,140) (1,124,296) DISCONTINUED OPERATIONS: Gain on sale of net assets related to discontinued operations (net of income tax of $218,060) 1,534,476 - 1,155,973 - Net Income (loss) $1,550,919 $ (814,261) $912,833 $(1,124,296) Income (loss) per share from continuing operations - basic $ 0.01 $(0.34) $(0.12) $(0.46) Income per share from discontinued operations - basic 0.74 - 0.56 - Net income (loss) per share - basic $ 0.75 $(0.34) $ 0.44 $(0.46) Income (loss) per share from continuing operations - diluted $ 0.01 $(0.34) $(0.12) $(0.46) Income per share from discontinued operations - diluted 0.67 - 0.56 - Net income (loss) per share - diluted $ 0.68 $(0.34) $ 0.44 $(0.46) Weighted average number of shares used to calculate income (loss) per share - basic 2,065,425 2,426,167 2,065,425 2,425,183 Weighted average number of shares used to calculate income (loss) per share - diluted 2,296,930 2,426,167 2,065,425 2,425,183 Consolidated Balance Sheets (UNAUDITED) June 30, December 31, ASSETS 2007 2006 CURRENT ASSETS Cash and cash equivalents $6,803,674 $ 5,335,282 Accounts receivable 75,647 37,495 Inventories 238,831 19,658 Prepaid income taxes 56,863 38,687 Income tax receivable 723,802 710,013 Prepaid expenses, deposits, and other current assets 326,264 246,776 Investments in marketable securities - 2,060,875 Total current assets 8,225,081 8,448,786 PROPERTY AND EQUIPMENT, NET 241,286 207,696 OTHER ASSETS Intangible assets, net 352,606 376,922 Assets held for sale - 1,420,996 Total other assets 352,606 1,797,918 TOTAL ASSETS $8,818,973 $10,454,400 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $351,055 $174,289 Accrued employee compensation 263,712 242,497 Other accrued expenses 148,270 150,978 Income taxes payable 43,339 45,962 Deferred taxes 186,010 669,520 Deferred revenue 18,823 4,099 Total current liabilities 1,011,209 1,287,345 LONG TERM LIABILITIES Deferred revenue 11,778 9,126 Liabilities held for sale - 1,042,493 Total long term liabilities 11,778 1,051,619 TOTAL LIABILITIES 1,022,987 2,338,964 COMMITMENTS (Note 7) STOCKHOLDERS' EQUITY Common stock, $.01 par value; 20,000,000 shares authorized; 2,065,425 shares issued and outstanding 20,654 20,654 Additional paid-in capital 5,500,234 5,347,641 Accumulated other comprehensive income - 1,384,876 Retained earnings 2,275,098 1,362,265 Total stockholders' equity 7,795,986 8,115,436 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $8,818,973 $10,454,400
SOURCE Pressure BioSciences, Inc.
Released August 14, 2007