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Pressure BioSciences 2012 Revenues Increase 21 Percent but Firm Warns of Cash Shortage

NEW YORK (GenomeWeb News) – Pressure BioSciences on Tuesday reported that revenues for full-year 2012 increased 21 percent year over year, but warned that it may not have enough cash to last through the month.

In its From 10-K filed with the US Securities and Exchange Commission, the South Easton, Mass.-based company reported revenues of $1.2 million for 2012, compared to $987,729 in 2011. Revenues derived from Pressure Cycling Technology products, services, and other totaled $809,308, a 5 percent increase from $767,765 a year ago. Grant revenues were up 95 percent to $428,909 from $219,964.

Net loss for 2012 rose to $3.5 million, or $0.43 per share, compared to a net loss of $3.0 million, or $0.77 per share, a year ago. The company used 10.2 million shares to calculate its loss per share figure in 2012, compared to 6.6 million shares for its 2011 figure.

R&D costs were trimmed a fraction of 1 percent to $965,623 from $969,473 a year ago. SG&A costs increased 10 percent to $3.3 million from $3.0 million.

Pressure Bio said it had $1,461 in cash and cash equivalents as of Dec. 31, 2012.

In its SEC document, the firm said that as of March 29, available cash totaled about $187,000, enough to fund operations until May. "We need substantial additional capital to fund our operations beyond" the month, it added.

It said that management's plans to keep afloat include reducing expenses, streamlining operations, and obtaining capital through equity and/or debt financing. It added that it has a three-pronged operational plan that includes upgrades to its product line and "offering a superior instrument with greater net margins."

The plan also includes securing non-dilutive investments from government grants, development applications, and engineering projects, and hiring a "small" sales team to target research facilities and academic institutions and to cultivate "our current list of pharmaceutical, military, and paramilitary organizations."

Funding the operational plan, however, will require $5 million of additional capital, Pressure Bio said.

It said that the most recent financing, a private placement, brought in net cash proceeds of $746,000 through March 28 in the first two tranches, it said. The placement was anticipated to close on or about April 30.

In February and March, Pressure Bio entered into a securities purchase agreement for the sale of 4,650 units for $400 per unit, or an aggregate purchase price of more than $1.8 million. The agreement is the first two tranches of a $2.0 million private placement, the company said, adding that additional tranches may close on or before May 31.

"Although we have successfully completed equity financings and reduced expenses in the past, we cannot assure you that our plans to address these matters in the future will be successful," Pressure Bio warned in its Form 10-K. "If we are not successful there is substantial doubt that we can continue as a going concern."