Pressure BioSciences Reports 18% Revenue Decline and $7.7M Net Loss in Q2 2024

Pressure BioSciences, Inc. (PBIO) reported a significant decline in financial performance for the second quarter of 2024, with total revenue of $421,792, down 18% from $511,803 in the same period of 2023. For the first half of 2024, revenue decreased by 38% to $771,049 compared to $1,252,403 in the first half of 2023. The decline was attributed to reduced sales from cell disruptor instruments following the termination of a distributor contract and decreased sales in PBI Agrochem materials. The company also reported a net loss attributable to common shareholders of $7,748,534, or $(0.15) per share, compared to a net loss of $11,114,925, or $(0.57) per share, in the prior year.

In terms of operational changes, Pressure BioSciences completed the acquisition of Uncle Bud’s Health & Wellness in January 2024, which is expected to enhance its direct-to-consumer product offerings. The acquisition has already shown promising results, with Uncle Bud’s generating $258,851 and $412,638 in direct-to-consumer sales for the three and six months ended June 30, 2024, respectively. The company anticipates that the integration of Uncle Bud’s will lead to improved gross margins as the new business becomes more efficient.

The company’s total current assets increased to $873,799 as of June 30, 2024, from $760,055 at the end of 2023, primarily due to higher accounts receivable and inventory levels. However, total liabilities surged to $44,107,421, up from $33,803,505 at the end of 2023, largely driven by an increase in accounts payable and accrued expenses. The company’s accumulated deficit also widened to $(186,192,896) from $(169,028,639) at the end of the previous fiscal year.

Looking ahead, Pressure BioSciences faces substantial challenges, including a lack of adequate working capital to meet current liabilities, raising concerns about its ability to continue as a going concern. The company has been actively pursuing additional financing through debt and equity offerings, having raised approximately $3.3 million in net proceeds from loans in the first half of 2024. Despite these efforts, the company acknowledges the uncertainty surrounding its financial future and the need for significant additional capital to fund operations.

Overall, while the acquisition of Uncle Bud’s presents new opportunities for growth, the company’s financial health remains precarious, with ongoing losses and increasing liabilities. The management's focus will be on stabilizing operations and improving cash flow while navigating the complexities of integrating the new business unit.