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Pressure Bio Q1 Revenues Rise 9 Percent but Firm Warns of Cash Shortage

NEW YORK (GenomeWeb) – Pressure BioSciences said in its Form 10-Q filed with the US Securities and Exchange Commission on Friday that its revenues in Q1 2015 grew 9 percent year over year to $440,134 from $404,147. 

Product, services, and other revenues were down to $359,364 from $404,147 in Q1 2014, but grant revenues increased to $80,770 from zero in the year-ago quarter. 

Pressure Bio had a net loss of $2.1 million or $.11 per share, in the recently completed quarter compared to a net loss of $1.8 million, or $.25 per share, a year ago. The firm used 18.8 million shares to calculate its per-share loss for the recently completed quarter compared to 12.1 million shares in Q1 2014. 

Its net loss applicable to common shareholders in Q1 2015 was $2.1 million compared to $3.1 million a year ago. 

The company spent $231,923 million on R&D in Q1 2015, up a fraction of 1 percent year over year from $231,088. Its SG&A costs grew 15 percent to $892,247 from $777,819. 

During the quarter, Pressure Bio announced that it received a two-year, $1 million grant from the National Human Genome Research Institute to develop an automated-high-throughput, high-pressure system to better control DNA fragmentation.

As of March 31, the firm had $220,310 in cash and cash equivalents. It had total assets of $1.5 million and total liabilities of $4.7 million. 

Pressure BioSciences added in its filing that as of the end of the first quarter it did not have enough working capital "to satisfy our current liabilities, and as a result, we have substantial doubt regarding our ability to continue as a going concern." 

The South Easton, Massachusetts-based firm said that it has completed debt financing subsequent to the end of the first quarter and has efforts in place to continue raising cash through debt and equity offerings. It added, though, that it needs "substantial additional capital" to continue its operation in future periods. 

The firm said that during Q1 2015 it entered into a number of financing deals, including 11 convertible debt agreements totaling about $1.1 million. Additionally, Pressure Bio signed three merchant agreements with at least one lender for $400,000. In exchange, the lender received rights to all customer receipts until the loans are repaid. 

In addition, subsequent to the end of the quarter, the company signed convertible notes for a total of $489,013, it said in its Form 10-Q.

In a statement, Pressure Bio President and CEO Richard Schumacher said, "We believe total revenue in 2015 will likely exceed $2 million (a 50 percent increase over 2014) and that total revenue will include significant increases in instrument and consumable sales."  

He added that in addition to building up the firm's sales and product development, and seeking strategic partnerships, "we have also been focused on the development of a sound financial roadmap through which we don't just survive but actually thrive as we work to develop [the company] into the successful, profitable company we believe it soon will become."