NEW YORK (GenomeWeb News) – Pressure BioSciences said in its quarterly earnings document that it may not be able to fund its operations beyond next month.
In its Form 10-Q filed with the US Securities and Exchange Commission on Thursday, the South Easton, Mass.-based company said that as of June 30, it had $113,663 in cash and cash equivalents and warned that it will need "substantial additional capital" to fund operations beyond the end of September 2013.
"In the event that we are unable to obtain financing on acceptable terms, or at all, we will likely be required to cease our operations, pursue a plan to sell our operating assets, or otherwise modify our business strategy, which could materially harm our future business prospects," it said.
On Thursday, the company reported a 10 percent increase in revenues for its second quarter. However, Pressure Bio has been under financial pressure for a while now. In May, it warned of similar cash problems, saying at the time it might not be able to maintain operations beyond May.
In its 10-Q, Pressure Bio said that it signed agreements to borrow a total of $875,000 from three lenders in April through June. Through Aug. 1, it received $542,500 under the agreements, though "[t]here is no guaranty that the company will receive the amounts remaining under these agreements."
Pressure Bio added that last week it received $160,000 in a one-year note from an existing shareholder. Terms of that note included "18 percent annual interest, one three-year warrant to acquire 160,000 shares of common stock at $0.40 per share, and a right to convert the note into the next equity financing."