Pressure BioSciences, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

5. Stockholders' Deficit (Tables)

5. Stockholders' Deficit (Tables)

9 Months Ended

Sep. 30, 2014

Series C exchange fair value assumptions for warrrants received

In connection with the warrant modification, we calculated the fair value of the warrants, as described above, using a Black-Scholes model with the below assumptions:

Assumptions	Series A			Series A			Series B			Series C			Aug/Sep 2011			Feb 2012
				(Affiliates)									Notes			PIPE
Contractual life, in years		4.1			3.1			3.1			5.1			2.1			4.6
Expected volatility		132.0	%		114.1	%		114.1	%		121.9	%		126.6	%		126.6	%
Risk-free interest rate		0.4	%		0.4	%		0.4	%		0.4	%		0.4	%		0.4	%
Exercise price	$	0.60		$	0.60		$	0.60		$	0.60		$	0.60		$	0.60
Fair value per warrant	$	0.03		$	0.03		$	0.03		$	0.03		$	0.03		$	0.03

Fair value of the warrants

In connection with the Series J warrants, we calculated the fair value of the warrants received as described above using the Black- Scholes formula with the below assumptions:

Assumptions	Series J warrants February 6, 2013			Series J warrants March 28, 2013			Series J warrants May 20, 2013
Contractual life (in months)		36			36			36
Expected volatility		141.8			144.3			147.0
Risk-free interest rate		0.39	%		0.36	%		0.36	%
Exercise price	$	0.40		$	0.40		$	0.40
Fair value per warrant	$	0.36		$	0.26		$	0.30

Fair value of the warrants received

In connection with the Series K Warrants, we calculated the fair value of the warrants received as described above using the Black- Scholes formula with the below assumptions:

Assumptions	Series K Warrants December 12, 2013			Series K Warrants January 29, 2014			Series K Warrants February 28 2014			Series K Warrants June 30, 2014
Contractual life (in months)		36			36			36			36
Expected volatility		136.1			152.4			152.7			153.9
Risk-free interest rate		0.39	%		0.39	%		0.39	%		0.90	%
Exercise price	$	0.3125		$	0.3125		$	0.425		$	0.375
Fair value per warrant	$	0.20		$	0.30		$	0.37		$	0.29

Warrants and Options Outstanding

The following tables summarize information concerning options and warrants outstanding and exercisable:

	Stock Options					Warrants
				Weighted					Weighted
				Average price					Average price		Total
	Shares			per share		Shares			per share		Shares			Exercisable
Balance outstanding, January 1, 2013		1,605,750		$	0.80		6,687,099		$	0.81		8,292,849			7,989,331
Granted		363,500			0.41		8,346,228			0.37		8,709,728
Exercised		-			-		-			-		-
Expired		(10,000	)		1.00		(21,000	)		2.38		(31,000	)
Forfeited		(187,542	)		0.85		-			-		(187,542	)
Balance outstanding, December 31, 2013		1,771,708		$	0.71		15,012,327		$	0.57		16,784,035			16,611,528
Granted		1,625,500			0.30		4,665,000			0.34		6,290,500
Exercised		-			-		(684,125	)		0.25		(684,125	)
Expired		(10,000	)		1.00		(1,095,485	)		0.74		(1,105,485	)
Forfeited		(30,958	)		0.71		-			-		(30,958	)
Balance outstanding, September 30, 2014		3,356,250		$	0.51		17,895,717		$	0.52		21,251,967			19,558,656

			Options Outstanding						Options Exercisable
					Weighted Average						Weighted Average
Range of Exercise Prices			Number of Options		Remaining Contractual Life (Years)		Exercise Price		Number of Options		Remaining Contractual Life (Years)		Exercise Price
$0.30	-	$0.39		1,625,500		10.0	$	0.30		-		-	$	-
0.40	-	0.49		311,000		8.6		0.40		311,000		8.6		0.40
0.50	-	0.59		251,250		7.9		0.50		251,250		7.9		0.50
0.60	-	0.69		467,500		5.2		0.60		427,189		5.0		0.60
1.00	-	1.25		701,000		2.5		1.00		673,500		2.3		1.00
$0.30	-	$1.25		3,356,250		7.5	$	0.71		1,662,939		5.0	$	0.71