Pressure BioSciences posts 3Q revenue from new scientific services group, lowers operating expenses

Pressure BioSciences Inc (OTCQB:PBIO) posted third-quarter results Thursday which showed a significant expansion in revenue from its new Scientific Services Group and accelerated development of its Ultra Shear Technology platform.

Significantly, the company decreased operating expenses by 17% or $191,873 through savings in advertising and PR costs.

For the quarter ended June 2018, the South Easton, Massachusetts, company posted a smaller than expected loss of $2.01 per share, compared to a loss of $2.07 for the same period in 2017.

“We are pleased to report that with tight fiscal oversight, our operating loss continued to decrease in FY 2018. At the same time, we continued to increase our efforts on expanding the offerings and exposure of our new Scientific Services Group; these efforts led to significant revenue generation in Q3 and for year-to-date 2018, compared to no revenue in this area in FY2017. We believe revenue will continue to climb in Scientific Services in Q4; we also have expectations of very significant revenue growth in this area for FY2019,” said Pressure BioSciences CFO Joseph L. Damasio.

READ: Pressure BioSciences’ Ultra Shear Technology system may solve the cannabinoid delivery issue

Total revenue fell 19% to $521,800 in the third quarter compared to $646,100 for the same period in 2017. The company said the decrease was “primarily due to employee turnover” in its sales team and “lost opportunities in China because of new tariffs imposed by both countries.”

However, operating loss for the third quarter was $933,400 compared to $1,125,300 for the same period in 2017.

“During the third quarter, a combination of factors temporarily reduced our revenue trend. Two of our three US field sales directors departed during the quarter. Secondly, a large (six figure) instrument and consumables order from our biggest Chinese customer was put on hold because of new imposed tariffs,” said Pressure BioSciences CEO Richard T Schumacher.

“Finally, the majority of the R&D, technical services, and marketing staff of Pressure BioSciences were refocused on prioritizing the development of the Ultra Shear Technology platform, to accelerate this major new technology into initial commercialization.”

The South Easton, Massachusetts, company already holds two patents for Ultra Sheer Technology, which applies high-pressure levels greater than 20,000 pounds per square inch. The advanced technology allows companies to extend the life of milk, and healthier drinks and juices, by reducing heat exposure in the preservation process through a combined application of elevated pressure and controlled times and temperatures.

Ultra Sheer Technology also utilizes high pressure to create intense, momentary liquid shearing forces at controlled temperatures that result in affordable and scalable homogenization of liquids, creams and gels. The technology creates nano-scale emulsion mixtures of otherwise immiscible fluids like oils in water that results in stable homogenized products called nanoemulsions.

As a result, the technology has wide potential uses in the pharmaceutical, industrial ink, retail and cosmetics industry.

Contact Uttara Choudhury at [email protected]
Follow her on Twitter: @UttaraProactive

Story by ProactiveInvestors