PRESSURE BIOSCIENCES INC SOUTH EASTON, Mass., April 6, 2016 /PRNewswire/ -- Pressure BioSciences, Inc. (OTCQB: PBIO) ("PBI" or the "Company") today announced financial results for the fiscal year ended December 31, 2015, provided a business update, and offered limited guidance for FY2016.
Financial Results: FY2015 vs. FY2014 Total revenue for the fiscal year ended December 31, 2015 was $1,797,691 compared to $1,374,744 for the same period in 2014, an increase of approximately 31%. Products and services revenue was $1,409,991 for the year ended December 31, 2015 compared to $1,350,150 for the same period in 2014, an increase of 4.4%. Sales of instrumentation increased in 2015 by $36,139 or 5%, from $799,472 in FY 2014 to $835,611 in FY 2015. Consumable sales were $146,408 in FY 2015 compared to $167,380 in FY 2014, a decrease of 13%. Grant revenue for the year ended December 31, 2015 was $387,700 as compared to $24,594 in 2014, an increase of $363,106 or approximately 1500%. This significant increase in grant revenue was due to the receipt of a $1,020,969 SBIR Phase II grant (2R44HG007136) from the NIH, as announced on February 19, 2015.
Operating loss for the year ended December 31, 2015 was $3,565,182 compared to a loss of $3,338,350 for the same period in 2014, an increase of approximately 7%. This increase in operating loss was due primarily to increases in R&D and G&A expenses, and by the award of director and employee stock options, off-set partially by increases in total revenue and product gross margins.
Loss per common share - basic and diluted - was $0.36 for the year ended December 31, 2015 compared to a loss per common share - basic and diluted - of $0.44 for the same period in 2014.
Financial Highlights: 2015
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")
Operational Highlights: 2015
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.
Mr. Richard T. Schumacher, President and CEO of PBI, commented: "We accomplished a number of key goals in 2015: the receipt of approximately $5M in new capital; the elimination of all toxic debt; the release of new pressure-based instruments and consumables; the initial development of the new Barocycler NEP2320 Extreme - designed to allow SCIEX and other mass spectrometry customers to unleash the full potential of PCT in their proteomic workflows; and the initiation of a co-marketing agreement with SCIEX, a key provider of analytical instrumentation to the scientific research markets worldwide."
Mr. Schumacher continued: "These accomplishments, combined with the planned expansion of our marketing and sales capabilities this year, position us well for success in 2016 and beyond. We have well-defined near-term goals that we believe are clear, focused, and attainable. If achieved, we believe these goals should continue to build value realization in PBI, positioning us as a stronger, more valuable company going forward."
Near-Term Goals: FY2016
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.
About Pressure BioSciences, Inc.
Pressure BioSciences, Inc. ("PBI") (OTCQB: PBIO) develops, markets, and sells proprietary laboratory instrumentation and associated consumables to the estimated $6 billion life sciences sample preparation market. 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. To date, we have installed over 250 PCT systems in approximately 160 sites worldwide. There are over 100 publications citing the advantages of the PCT platform over competitive methods, many from key opinion leaders. Our primary development and sales efforts are in the biomarker discovery, drug discovery and design, and forensics areas. Customers also use our products in other areas, such as bio-therapeutics characterization, soil & plant biology, vaccine development, and counter-bioterror applications.
Earnings Call
The Company will hold an Earnings Conference Call at 4:30 PM EDT on Wednesday, April 6, 2016. To attend this teleconference via telephone, Dial-in: (877) 407-8031 (North America), (201) 689-8031 (International). Verbal Passcode: PBI FY 2015 Financial Conference Call, ID 13634697. Replay Number (877) 660-6853 (North America); (201) 612-7415 (International). Teleconference Replay Available for 30 days
Forward Looking Statements
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, 2015 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, 2015, 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.
For more information about PBI and this press release, please click on the following website link:
http://www.pressurebiosciences.com
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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 (508) 230-1828
& CEO (T)
Jeffrey N. Peterson, Chairman of (650) 812-8121
the Board (T)
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SOURCE Pressure BioSciences, Inc.
