Instrument and Consumable Sales Show Continued Double-Digit Growth in Q4 and FY2017; Total Annual Revenue Exceeds $2 Million for First Time
2017 New Product Releases, CE Marking, GMP Compliance, Acquisition of BaroFold Assets, Initial UST Patents & Significant Expansion of Sales & Marketing Capabilities Expected to Fuel Growth in FY2018
Investor Conference Call Scheduled for Tuesday, April 3, 2018 at 4:30 PM EDT
SOUTH EASTON, MA / ACCESSWIRE / April 3, 2018 / Pressure BioSciences, Inc. (PBIO) (“PBI” or the “Company”) today announced financial results for the fourth quarter and fiscal year ended December 31, 2017, provided a business update, and offered limited guidance for FY2018.
Financial Results: Q4 2017 vs. Q4 2016
Products and services revenue was $455,767 for the fourth quarter of 2017 compared to $365,262 for the same quarter of 2016, a 25% increase. Sales of instruments increased to $317,498 in Q4 2017 compared to $204,460 in Q4 2016, an increase of 55%. Sales of consumables were $60,108 for the fourth quarter of 2017 compared to $50,054 for the same period in 2016, a 20% increase. Grant revenue in Q4 2017 was $46,941 compared to $54,449 in Q4 2016.
Total revenue for the fourth quarter ended December 31, 2017 was $502,708 compared to $419,711 for the same period in 2016, a 20% increase. This increase was primarily due to our double-digit growth in products and services.
Operating loss for Q4 2017 was $1,318,384 compared to $1,177,205 for the same period in 2016. This increase in operating loss was primarily due to increases in sales and marketing expenses related to the expansion of our field sales team from one to five individuals during FY2017, as well as to an inventory allowance in FY2017 of $159,600.
Loss per common share – basic – was $2.37 for Q4 2017 compared to income per common share of $3.13 for the same period in 2016. Loss per common share – diluted – was $2.37 for Q4 2017 compared to loss per common share of $0.64 for the same period in 2016.
Financial Results: FY2017 vs. FY2016
Products and services revenue was $2,065,891 for the year ended December 31, 2017 compared with $1,794,749 for the year ended December 31, 2016, a 15% increase. Sales of instruments increased to $1,459,326 for FY2017 compared to $1,205,520 for FY2016, an increase of 21%. Sales of consumables were $260,331 for the year ended December 31, 2017 compared to $199,873 for the same period in 2016, an increase of $60,458 or 30%. Grant revenue for fiscal year 2017 was $174,607 compared to $181,738 for the 2016 fiscal year.
Total revenue for FY2017 was $2,240,498 compared to $1,976,487 for FY2016, a 13% increase. This increase was primarily due to our double-digit growth in products and services.
Operating loss for FY2017 was $4,647,048 compared to $3,735,653 for FY2016. This increase was primarily due to increases in sales and marketing expenses related to the build-out of a field sales force, an inventory allowance of $159,600, and the one-time administrative credits in the prior year, off-set to a certain extent by increases in total revenue.
Loss per common share – basic and diluted – was $9.62 for FY2017 and $2.97 for the 2016 fiscal year.
Operational & Technical Highlights: FY2017
- A significant software upgrade for our flagship Barocycler 2320EXTREME has brought our next-generation PCT-based instrument to GMP and GLP compliance, which in turn should open many new doors in the biopharmaceutical manufacturing and drug discovery & development areas of the very large life sciences field.
- The acquisition of all assets of BaroFold Corporation combines BaroFold’s patented high-pressure protein refolding technology (PreEMT) with PBI’s leadership in high-pressure instrumentation and worldwide market access, which will allow PBI entry into the Biologics Contract Research Services Sector.
- Professor Tiannan Guo’s laboratory at the world famous Westlake Institute for Advanced Study was named PBI’s first Center of Excellence in China, which we believe should support an aggressive marketing and sales strategy in China, which in turn could drive significant expansion in China and the rest of Asia.
- We believe our strategic collaboration with Phasex Corporation will allow us to address broad markets for stable, water-soluble nanoemulsions. We expect the combination of our recently patented Ultra Shear Technology (UST) with Phasex’s Supercritical Fluid processing methods will enable development of stable, water-soluble nanoemulsions, including CBD-enriched plant oil.
- We were issued the first two patents on our widely-applicable, high pressure-based Ultra Shear Technology. We believe that UST can be used to create or improve a broad range of medical, consumer, and industrial products through the preparation of high-quality nanoemulsions and “clean label” food.
- Our recently-released, next-generation Barocycler 2320EXTREME instrument was named a finalist in the prestigious 2017 R&D 100 Awards. Known as the “Oscars of Innovation”, the R&D 100 Awards recognize the top 100 revolutionary technologies of the past year.
- Professor Ruedi Aebersold, a worldwide expert in proteomics and one of PBI’s most well-known clients, received the prestigious Karger Medal for significant contributions to the development of new bioanalytical methods. In his acceptance speech, he discussed the importance of sample preparation and mentioned his use of the PCT Platform.
- Joseph L. Damasio, Jr. joined the Company as our full-time Chief Financial Officer and Vice President of Finance.
- Our Barocycler 2320EXTREME was named “Best New Instrument for Sample Preparation 2017” by Corporate America News (“Corp America”) as part of the publication’s 2017 North American Excellence Awards.
- We achieved CE Marking for our flagship instrument, the next-generation Barocycler 2320EXTREME. CE Marking permits PBI to begin sales of the 2320EXT to all 31 countries of the European Economic Area.
Mr. Joseph L. Damasio, VP of Finance and CFO of PBI, commented, “This past year was filled with a number of significant financial, operational and technological accomplishments that have set the stage well for what we believe will be a very exciting and successful 2018. Key among these accomplishments are the continued double-digit growth rates in our products and services area, the acquisition of the BaroFold patents, the continued maturation of our novel and now patented Ultra Shear Technology, the critical changes made to our flagship Barocycler 2320EXTREME that have enhanced this already very powerful instrument, the significant expansion of our sales and marketing capabilities, and the continued global recognition of the advantages of the PCT Platform in biological scientific studies.”
Mr. Damasio continued, “Although we had a successful 2017, we were nonetheless disappointed that our goal to up-list PBI to a national exchange did not happen last year. Because we understand the advantages and importance that an up-list will bring PBI, we anticipate re-initiating the up-list process soon, with a goal to complete the up-list before the end of this year.”
Mr. Richard T. Schumacher, President and CEO of PBI, commented, “We believe that the accomplishments of the past several years have set the stage well for future success. Our technology is now more powerful, our customer base bigger, our product portfolio larger, our product applications more enhanced, our supporters more vocal, our capabilities stronger, and our desire to succeed has never been more focused and determined. We remain very, very excited about 2018.”
The Company will hold an Earnings Conference Call at 4:30 PM EDT on Tuesday, April 3, 2018. To attend this teleconference via telephone, Dial-in: (877) 407-8031 (North America), (201) 689-8031 (International). Verbal Passcode: PBIO Fourth Quarter and Fiscal Year 2017 Financial Call, ID 27377.
Replay Number (877) 481-4010; (919) 882-2331 (International). Teleconference Replay Available for 30 days.
About Pressure BioSciences, Inc.
Pressure BioSciences, Inc. (PBIO) is a leader in the development and sale of innovative, broadly enabling, pressure-based solutions for the worldwide life sciences industry. Our products are based on the unique properties of both constant (i.e., static) and alternating (i.e., pressure cycling technology, or “PCT”) hydrostatic pressure. PCT is a patented enabling technology platform that uses alternating cycles of hydrostatic pressure between ambient and ultra-high levels to safely and reproducibly control bio-molecular interactions (e.g., cell lysis, biomolecule extraction). Our primary focus is in the development of PCT-based products for biomarker and target discovery, drug design and development, biotherapeutics characterization and quality control, soil & plant biology, forensics, and counter-bioterror applications. Additionally, major new market opportunities have emerged in the use of our pressure-based technologies in the following areas: (1) the use of our recently acquired PreEMT technology from BaroFold, Inc. to allow entry into the biologics contract research services sector, and (2) the use of our recently-patented, scalable, high-efficiency, pressure-based Ultra Shear Technology (“UST”) platform to (i) create stable nanoemulsions of otherwise immiscible fluids (e.g., oils and water) and to (ii) prepare higher quality, homogenized, extended shelf-life or room temperature stable low-acid liquid foods that cannot be effectively preserved using existing non-thermal technologies.
This press release contains forward-looking statements. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed, implied or inferred by these forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “would,” “expects,” “plans,” “intends,” “anticipates,” “believes,” estimates,” “predicts,” “projects,” “potential” or “continue” or the negative of such terms and other comparable terminology. These statements are only predictions based on our current expectations and projections about future events. You should not place undue reliance on these statements. In evaluating these statements, you should specifically consider various factors. Actual events or results may differ materially. The Company’s financial results for the year ended December 31, 2017 may not necessarily be indicative of future results. These and other factors may cause our actual results to differ materially from any forward-looking statement. These risks, uncertainties, and other factors include, but are not limited to, the risks and uncertainties discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, 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.
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PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended
For the Year Ended
Products, services, other
Costs and expenses:
Cost of products and services
Research and development
Selling and marketing
General and administrative
Total operating costs and expenses
Other (expense) income:
Interest expense, net
Impairment loss on investment
Gain on extinguishment of embedded derivative liabilities
Incentive warrants for warrant exercises
Change in fair value of derivative liabilities
Total other (expense) income
Net (loss) income
Net (loss) income per share – basic
Net loss per share – diluted
Weighted average common stock shares outstanding used in the basic net (loss) income per share calculation
Weighted average common stock shares outstanding used in the diluted net (loss) income per share calculation
PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY
December 31, 2017
December 31, 2016
Cash and cash equivalents
Accounts receivable, net of $0 reserve at December 31, 2017 and $28,169 at December 31, 2016
Inventories, net of $179,600 reserve at December 31, 2017 and $20,000 December 31, 2016
Prepaid income taxes
Prepaid expenses and other current assets
Total current assets
Investment in available-for-sale equity securities
Property and equipment, net
Intangible assets, net
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Accrued employee compensation
Accrued professional fees and other
Other current liabilities
Revolving note payable, net of unamortized debt discounts of $0 and $637,030, respectively
Related party convertible debt, net of unamortized debt discounts of $31,372 and $0, respectively
Convertible debt, net of unamortized discounts of $401,856 and $2,235,839, respectively
Other debt, net of unamortized discounts of $48,194 and $380, respectively
Warrant derivative liabilities
Conversion option derivative liabilities
Total current liabilities
LONG TERM LIABILITIES
Related party convertible debt, net of unamortized debt discounts of $0 and $165,611, respectively
Convertible debt, net of unamortized discounts of $0 and $740,628, respectively
COMMITMENTS AND CONTINGENCIES
Series D Convertible Preferred Stock, $.01 par value; 850 shares authorized; 300 shares issued and outstanding on December 31, 2017 and 2016, respectively (Liquidation value of $300,000)
Series G Convertible Preferred Stock, $.01 par value; 240,000 shares authorized; 80,570 and 86,570 shares issued and outstanding on December 31, 2017 and 2016, respectively
Series H Convertible Preferred Stock, $.01 par value; 10,000 shares authorized; 10,000 shares issued and outstanding on December 31, 2017 and 2016, respectively
Series H2 Convertible Preferred Stock, $.01 par value; 21 shares authorized; 21 shares issued and outstanding on December 31, 2017 and 2016, respectively
Series J Convertible Preferred Stock, $.01 par value; 6,250 shares authorized; 3,458 and 3,521 shares issued and outstanding on December 31, 2017 and 2016, respectively
Series K Convertible Preferred Stock, $.01 par value; 15,000 shares authorized; 6,880 and 6,816 shares issued and outstanding on December 31, 2017 and 2016, respectively
Common stock, $.01 par value; 100,000,000 shares authorized; 1,342,858 and 1,033,328 shares issued and outstanding on December 31, 2017 and 2016, respectively
Warrants to acquire common stock
Additional paid-in capital
Accumulated other comprehensive loss
Total stockholders’ deficit
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT
Richard T. Schumacher, President and CEO (508) 230-1828 (T)
Joseph L. Damasio, VP of Finance and CFO (508) 230-1829 (F)
SOURCE: Pressure BioSciences, Inc.