NEW YORK (GenomeWeb News) – In the midst of reporting a 38 percent drop in revenues year over year, Pressure BioSciences today said that at current cash levels, it can maintain its business only through the end of the second quarter.
In a statement announcing its Q1 results, the South Easton, Mass.-based sample preparation instrument firm said that it had a cash balance of about $101,000 as of the end of the first quarter. In April, the company announced it raised $825,720 in gross proceeds in the first tranche of its $6 million Series C private placement. Net proceeds from the tranche were about $743,000, and Pressure Bio said that its current cash resources will allow it to fund existing operations to about June 30.
"The first tranche of our Series C Financing took months longer than expected to close," CEO Richard Schumacher said. "This delay adversely affected operating activities during the first three months of 2011. We believe that the flat sales of the first quarter are not indicative of expected sales for the rest of the year and that we will be successful in increasing the installed base of PCT instruments, the amount of consumables purchases, and the number of independent PCT-based publications and presentations over the remainder of 2011."
He added, "Despite our recent financial issues, we believe we made significant progress towards our goal of reaching market acceptance and profitability in the near future. To that end, we are continuing to focus substantial efforts on finding ways to satisfy our short and long term financial needs."
The current financial difficulties follow a restructuring of the company in 2008, in which it laid off eight employees, or 40 percent of its staff, closed down one facility, and scrapped some R&D in an effort to reduce its cash-burn rate.
Pressure Bio also said today that first-quarter revenues dropped 38 percent drop year over year, due largely to an absence of grant revenues.
The firm said that revenues for the three months ended March 31 totaled $180,643, down from $290,813 from a year ago. All revenues were from product sales, which were down more than 4 percent from $189,150 a year ago. The company sold 10 PCT Sample Preparation Systems, the same as a year ago.
During the quarter, Pressure Bio posted no grant revenues, compared to $101,663 a year ago.
Its net loss was trimmed to $966,455, or $.34 per share, down 19 percent from $1.2 million, or $.49 per share, in the first quarter of 2010.
The company reduced R&D costs 26 percent to $218,965 from $294,141 and shaved SG&A costs 13 percent to $716,368 from $821,000 a year ago.