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BioForce Nanosciences Reports Record Second Quarter Results(Marketwire Via Acquire Media NewsEdge) AMES, IA, August 14 / MARKET WIRE/ -- BioForce Nanosciences Holdings, Inc. (OTCBB: BFNH), a producer of integrated biological and mechanical systems for life science researchers at the micro and nano scales, today announced record revenue and gross profit for the three and six month periods ended June 30, 2008. Second Quarter Highlights: -- Net revenues were $211,723 for the second quarter of 2008, the highest second quarter revenues in the Company's history, and a 15% increase from net revenues of $184,811 for the second quarter of 2007. -- Gross profit was $50,315 for the second quarter of 2008, the highest second quarter gross profit in the Company's history, and a 73% increase from gross profit of $29,056 for the second quarter of 2007. -- Net loss on common stock was $884,721 ($0.04 per fully diluted share) for the second quarter of 2008, as compared to a net loss on common stock of $1,085,558 ($0.05 per fully diluted share) for the second quarter of 2007. Six Month Highlights: -- Net revenues were $615,290 for the first half of 2008, the highest first half revenues in the Company's history, and a 13% increase from net revenues of $543,566 for the first half of 2007. -- Gross profit was $239,657 for the first half of 2008, the highest first half gross profit in the Company's history, and a 17% increase from gross profit of $205,205 for the first half of 2007. -- Net loss on common stock was $1,650,883 ($0.07 per fully diluted share) for the first half of 2008, as compared to a net loss on common stock of $2,008,875 ($0.08 per fully diluted share) for the first half of 2007. Operations Review: Kerry Frey, President and Chief Executive Officer of BioForce, said, "We continue to make progress on multiple fronts in the effort to expand upon our existing presence in the academic research community, and to increase our visibility within the commercial market. During the second quarter we initiated the relationship with our domestic product distributor, NanoandMore USA, Inc. That relationship resulted in one Nano eNabler(TM) system sale during the second quarter, and we anticipate that the sales resulting from this relationship will grow as they are able to introduce our exciting products into their customer base and to new sales prospects in both academia and industry. "During the third quarter our distributor in Australia placed their first order for a Nano eNabler(TM) system. This is the sixth distributor who has delivered revenue to BioForce, including locations in the United Kingdom, Continental Europe, Japan, Korea, Australia and the United States. We continue to believe that we have developed a strong international network of distributors that will serve as an effective means of distribution for our products. "The scientific activity of our customers, and the developing applications for our products in the areas of stem cell research, neural regeneration and live cell assays, give me confidence that there are significant sales opportunities in multiple sectors. On the scientific front, I am pleased to announce that we have entered into scientific collaboration agreements with two academic research institutions, with details to be disclosed at a later date. Under these collaboration agreements we will be working closely with biologists at both institutions to develop new applications for our Nano eNabler(TM) and Cyto eNabler(TM) systems. It is our anticipation that we will enter into additional agreements of this type in the future, and that they will lead to the development of exciting new products and applications, and ultimately increased revenues and profits for BioForce." Greg Brown, BioForce's Chief Financial Officer, commented, "While our results for the second quarter and first half of 2008 were records in terms of revenues, gross profit and net income, we are not satisfied. Our focus remains the achievement of profitability, and we are not yet there. The activities that Kerry mentioned, which are focused upon increasing revenues, will certainly move us toward that goal. In addition, we have taken steps, including the recently announced licensing transaction with Aspera Corp. and our move to a lower fixed cost, distributor-based domestic sales model, to reduce our expenses. There was a slight reflection of those cost reductions in our second quarter results, but they will be more fully reflected in future quarters. "We were pleased to complete a $300,000 convertible debt financing during the second quarter, and as previously announced completed a second convertible debt financing, also with proceeds of $300,000, in July. Additional financing is required, and we continue to work with multiple parties in this regard." About BioForce Nanosciences Holdings, Inc. BioForce Nanosciences creates products and solutions for the life sciences by integrating biological and mechanical systems at the micro and nano scales. BioForce's flagship product, the Nano eNabler(TM) molecular printer, gives the Company and its customers a platform for development and discovery by printing tiny domains of biological materials on surfaces with nanometer spatial precision. BioForce technology is being used in areas such as biosensor functionalization; pattering and cell adhesion; and the printing of proteins to guide neural cell growth. For more information, visit http://www.bioforcenano.com or call 515-233-8333. This news release contains forward-looking information that may be affected by certain risks and uncertainties, including those risks and uncertainties described in BioForce Nanosciences' most recent filings with the Securities and Exchange Commission. BioForce Nanosciences' actual results could differ materially from such forward-looking statements. BioForce assumes no duty to update these statements at any future date. BIOFORCE NANOSCIENCES HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) For the Three Months Ended For the Six Months Ended June 30, June 30, 2008 2007 2008 2007 ------------ ------------ ------------ ------------ REVENUES $ 211,723 $ 184,811 $ 615,290 $ 543,566 COST OF GOODS SOLD 161,408 155,755 375,633 338,361 ------------ ------------ ------------ ------------ Gross margin 50,315 29,056 239,657 205,205 OPERATING EXPENSES Research and development 306,309 292,048 604,799 570,848 Sales and marketing 295,311 323,397 585,006 629,405 General and administrative 352,721 673,513 795,696 1,332,221 Reimbursement of grant expenses (65,352) (165,297) (165,247) (290,220) ------------ ------------ ------------ ------------ Total operating expenses 888,989 1,123,661 1,820,254 2,242,254 ------------ ------------ ------------ ------------ Loss from operations before other income (expense) (838,674) (1,094,605) (1,580,597) (2,037,049) OTHER INCOME (EXPENSE) Interest and other income 6,488 12,838 8,028 34,974 Interest expense (52,535) (3,791) (58,314) (6,800) ------------ ------------ ------------ ------------ Total other income (expense) (46,047) 9,047 (50,286) 28,174 ------------ ------------ ------------ ------------ income tax (884,721) (1,085,558) (1,630,883) (2,008,875) INCOME TAX EXPENSE - - - - ------------ ------------ ------------ ------------ Net loss (884,721) (1,085,558) (1,630,883) (2,008,875) DIVIDENDS ON PREFERRED STOCK 10,000 - 20,000 - ------------ ------------ ------------ ------------ Net loss on common stock $ (894,721) $ (1,085,558) $ (1,650,883) $ (2,008,875) ============ ============ ============ ============ BASIC AND DILUTED LOSS PER SHARE $ (0.04) $ (0.05) $ (0.07) $ (0.08) ============ ============ ============ ============ WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING 25,116,401 24,099,950 25,115,226 24,075,088 ============ ============ ============ ============ BIOFORCE NANOSCIENCES HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS ASSETS 06/30/08 12/31/07 ----------- ----------- (unaudited) CURRENT ASSETS Cash and cash equivalents $ 55,804 $ 268,930 Accounts receivable - trade, net 93,667 313,756 Account receivable - invoice factoring 34,112 - Inventory 818,861 1,046,683 Prepaid expenses and other assets 55,287 146,007 ----------- ----------- Total current assets 1,057,731 1,775,376 ----------- ----------- PROPERTY AND EQUIPMENT Computer equipment 89,826 113,963 Leasehold improvements 380,000 380,000 Scientific and laboratory equipment 897,882 889,368 Office furniture and fixtures 89,760 89,760 ----------- ----------- Total 1,457,468 1,473,091 Less accumulated depreciation 991,997 889,469 ----------- ----------- Net property and equipment 465,471 583,622 ----------- ----------- INTANGIBLE ASSETS Patent costs, net of accumulated amortization of $93,900 and $78,502, respectively 681,582 641,017 Trademark costs, net of accumulated amortization of $19,705 and $15,471, respectively 101,372 90,908 ----------- ----------- Total intangible assets 782,954 731,925 ----------- ----------- TOTAL ASSETS $ 2,306,156 $ 3,090,923 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY 06/30/08 12/31/07 ----------- ----------- (unaudited) CURRENT LIABILITIES Accounts payable $ 542,802 $ 305,314 Accrued expenses 305,522 241,650 Deferred revenue 44,067 53,754 Recourse obligation - invoice factoring 5,002 - Accrued dividends on Series A Convertible Preferred Stock 20,000 13,333 8% convertible secured promissory notes 218,383 - Current portion of notes payable 57,250 89,180 ----------- ----------- Total current liabilities 1,193,026 703,231 LONG-TERM DEBT, NET 137,933 154,860 ----------- ----------- Total liabilities 1,330,959 858,091 ----------- ----------- COMMITMENTS and CONTINGENCIES STOCKHOLDERS' EQUITY Preferred stock - 2008 and 2007: $0.001 par value, 10,000,000 shares authorized to be issued in various classes Series A Convertible Preferred Stock - 2008 and 2007: $0.001 par value, 1,100,000 shares authorized, 1,000,000 shares issued and outstanding; 2008: liquidation value $520,000; 2007: liquidation value $513,333 1,000 1,000 Common stock - 2008 and 2007: $0.001 par value, 100,000,000 shares authorized; 2008: 25,116,401 shares issued and outstanding; 2007: 25,099,950 shares issued and outstanding 25,116 25,100 Deferred revenue Additional paid-in capital 16,784,083 16,341,714 Deferred stock offering costs (20,000) - Accumulated deficit (15,815,002) (14,134,982) ----------- ----------- Total stockholders' equity 975,197 2,232,832 ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,306,156 $ 3,090,923 =========== =========== Contact: Gregory D. Brown Chief Financial Officer 515-233-8333 ext# 118Email Contact Copyright ? 2008 Marketwire |