Increase in revenue with reduction in loss for the quarter
SAN JOSE, Calif., Nov. 13 /PRNewswire-FirstCall/ -- Human Pheromone Sciences, Inc. (OTC Bulletin Board: EROX) ("HPS" or "the Company") today announced results for the third quarter and nine months ended September 30, 2008. For the three month period ending September 30, 2008, net revenues of $262,000 represented a 10% increase from the revenues of $239,000 in the prior year period, and resulted in a net loss of $30,000 ($.01 per share) as compared with a net loss of $93,000 ($.02 per share) for the same period of 2007. For the nine month period ending September 30, 2008, net revenues of $764,000 were 15% lower than the previous year's $902,000, resulting in a net loss of $181,000 ($0.04 per share) as compared with a net loss of $54,000 ($0.01 per share) in the first nine months of 2007. At September 30, 2008, the Company reflected a cash balance of $1,082,000 compared with $1,437,000 at December 31, 2007, a $355,000 reduction for the nine months of the current year as compared to a decline of $390,000 during the nine months ending September 30, 2007. There was no bank indebtedness at either date.
A spokesperson indicated "the Company was pleased that its cash utilization was only $355,000 for the first nine months of the year, and that net current liquidity (cash, accounts receivable and inventory, less current liabilities excluding current portion of deferred revenue) decreased only $433,000 for the same nine month period. This lower than expected asset utilization was a result of revenues generated under new licensing agreements, and a concerted effort to only invest in programs that are designed to generate additional future revenues."
"However, we still recognize that the marketing plans of our licensees can create unpredicted volatility of our quarterly performance, and this is not an acceptable posture for the Company in the long-term. We will still continue to nurture and expand our relationships with our licensees, and explore strategic ventures with other world-class marketing partners; we are also expanding our focus to include additional distribution channels for our current technology, as well as partners for the additional technologies we have developed."
Human Pheromone Sciences, Inc. is a technology-based company, whose proof-of concept products included prestige-priced fragrances and toiletries and environmental products sold under the Natural Attraction(R), REALM(R), innerREALM(R) and EROX(R) trademarks. These products contain mood-enhancing compounds, whose efficacy has been validated at leading universities around the world, and whose use is covered under United States and foreign patents. The Company is also involved in research and product development efforts on new compounds that have been previously identified as stimulating the emotional centers of the human brain. Further information is available on line at http://www.erox.com.
The statements in this news release may contain forward-looking
statements that involve risks and uncertainties that could cause results to
differ from predicted results. Further information on factors that could
affect the Company's results is detailed in the Company's annual report to
shareholders on Form 10-KSB for the year ended December 31, 2007, and Form
10-Q for the quarter ended September 30, 2008, as filed with the Securities
and Exchange Commission. The Company undertakes no obligation to publicly
release the result of any revisions to these forward-looking statements.
HUMAN PHEROMONE SCIENCES, INC.
Condensed Balance Sheets
(Dollars in thousands)
September 30, December 31,
Cash and cash equivalents $ 1,082 $ 1,437
Accounts receivable 91 194
Inventories 50 25
Other current assets 34 40
Property and equipment, net 2 3
Total $1,259 $ 1,699
Liabilities and shareholders' equity
Accounts payable $31 $28
Other current liabilities 138 141
Deferred income - current 384 518
Deferred income - non-current 375 566
Common stock 21,029 20,963
Accumulated deficit (20,698) (20,517)
Total $1,259 $1,699
HUMAN PHEROMONE SCIENCES, INC.
Condensed Statements of Operations
(Dollars in thousands, except per-share data)
Three months Nine months
September 30, September 30,
2008 2007 2008 2007
Net revenue $262 $239 $764 $902
Cost of goods sold 86 94 240 277
Research and development 10 10 33 38
Selling, general and administrative 203 240 696 686
Income (loss) from operations (37) (105) (205) (99)
Other income 7 16 25 50
Provision for income taxes - 4 1 5
Net income (loss) $(30) $(93) $(181) $(54)
Income (loss) per share -
Basic and fully diluted $(0.01) $(0.02) $(0.04) $(0.01)
Weighted average common shares
Basic and fully diluted 4,152 4,152 4,152 4,152
Net income (loss) per share is based on the weighted average number of common shares and common equivalents outstanding during each period. Certain common stock equivalents are excluded when their effect would be anti-dilutive.
|SOURCE Human Pheromone Sciences, Inc.|
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