[LETTERHEAD OF BIOFORCE NANOSCIENCES]
FOR RELEASE: May 14, 2007, 1:30p.m. EDT
Contact: Investor Relations:
RedChip Companies Inc.
Robert Rehse
Robert@redchip.com
1-800-REDCHIP (733-2447) ext 111
www.redchip.com
Company Contact:
Deb Happe, Director of Communications
515-233-8333, Ext. 123
dhappe@bioforcenano.com
BIOFORCE NANOSCIENCES REPORTS RECORD REVENUES, FIRST QUARTER 2007
FINANCIAL RESULTS
AMES, IA--BioForce Nanosciences Holdings, Inc. (BFNH.OB) today reported its
first quarter 2007 results. Revenue was $358,755, which represents the highest
quarterly revenue in company history, as compared to revenue of $201,376 in the
first quarter of 2006. Net loss for the first quarter of 2007 was $923,317, or
$0.04 per basic and diluted share, as compared with a net loss of $1,252,562, or
$0.05 per basic and diluted share, for the first quarter of 2006.
Non-GAAP net loss for the first quarter of 2007 was $605,858, or $0.03 per basic
and diluted share, as compared to a non-GAAP net loss of $261,298, or $0.01 per
basic and diluted share for the first quarter of 2006. Non-GAAP financial
measures exclude stock-based compensation expense and interest expense recorded
as a result of a beneficial conversion feature of convertible debt that was
retired during 2006. The reconciliation between GAAP net loss per share and
non-GAAP net loss per share is set forth at the end of this press release.
Dr. Eric Henderson, BioForce's CEO and founder, said, "Marketplace acceptance of
our flagship instrument, the Nano eNabler(TM) system, has reached a new level
with the sales during the first quarter to the University of Limerick (Ireland),
Louisiana Tech University and the National Nanotechnology Laboratory of National
Research Council (Italy). Nano eNabler systems are being used to pursue
scientific advancement in a wide range of applications within the biotechnology
universe, including the development of various diagnostic tests and therapeutic
agents. Our recent successes with sales and customer approval have been an
incredible reward."
"With a strong start to the year, BioForce is on schedule to meet our business
objectives for 2007 and achieve our vision of becoming an industry leader in
bionanotechnology," said Dr. Henderson. "We will accomplish this by executing
our "practical nanotechnology" strategy that embraces both the long-term promise
of nanotechnology, and critically, the near term needs of the industry."
About BioForce Nanosciences, Inc.
BioForce Nanosciences Holdings, Inc. (BFNH.OB) is a developer of nanotechnology
instruments, consumables, and applications for the life sciences industry. The
Nano eNabler system is a molecular printer that rapidly and precisely delivers
liquids to surfaces such as silicon chips in droplets that are ten billion times
smaller than a drop of blood. It is through our instrumentation success that
BioForce can pursue applications. The patented virus detection chip embodied in
the ViriChip(TM) platform is one such application. The ViriChip technology is
sensitive and specific enough to detect a variety of different pathogens. For
more information, visit www.bioforcenano.com.
BIOFORCE NANOSCIENCES HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
ASSETS
3/31/07 12/31/06
--------------------------
(unaudited)
CURRENT ASSETS
Cash and cash equivalents $1,503,832 $2,602,686
Accounts receivable - trade, net 247,147 22,153
Inventory 1,047,827 1,193,590
Prepaid expenses and other assets 55,789 55,351
--------------------------
Total current assets 2,854,595 3,873,780
--------------------------
PROPERTY AND EQUIPMENT
Computer equipment 89,498 73,180
Leasehold improvements 380,000 380,000
Scientific and laboratory equipment 779,460 687,280
Office furniture and fixtures 86,939 67,384
--------------------------
Total 1,335,897 1,207,844
Less accumulated depreciation 718,857 669,762
--------------------------
Net property and equipment 617,040 538,082
--------------------------
INTANGIBLE ASSETS
Patent costs, net of accumulated amortization
of $55,916 and $48,759, respectively 577,950 580,426
Trademark costs, net of accumulated amortization
of $9,319 and $7,397, respectively 70,913 68,699
--------------------------
Total intangible assets 648,863 649,125
--------------------------
TOTAL ASSETS $4,120,498 $5,060,987
==========================
BIOFORCE NANOSCIENCES HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
03/31/07 12/31/06
-------------------------------
(unaudited)
CURRENT LIABILITIES
Accounts payable $ 162,178 $ 506,099
Accrued expenses 197,589 193,010
Deferred revenue 25,082 9,224
Current portion of notes payable 144,739 131,896
-------------------------------
Total current liabilities 529,588 840,229
LONG-TERM DEBT, NET 254,870 278,860
-------------------------------
Total liabilities 784,458 1,119,089
-------------------------------
COMMITMENTS and CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock - 2007 and 2006: $0.01 par value,
10,000,000 shares authorized, no shares issued and
outstanding -- --
Common stock - 2007: $0.001 par value, 100,000,000 shares
authorized, 24,099,950 shares issued and outstanding;
2006: $0.001 par value, 100,000,000 shares authorized,
23,999,950 shares issued and outstanding 24,100 24,000
Additional paid-in capital 14,398,360 13,824,501
Deferred stock offering costs (256,500) --
Accumulated deficit (10,829,920) (9,906,603)
-------------------------------
Total stockholders' equity 3,336,040 3,941,898
-------------------------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 4,120,498 $ 5,060,987
===============================
BIOFORCE NANOSCIENCES HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
For the Three Months Ended
March 31,
2007 2006
-------------------------------
REVENUES $ 358,755 $ 201,376
COST OF GOODS SOLD 182,606 51,587
-------------------------------
Gross profit 176,149 149,789
OPERATING EXPENSES
Research and development 278,800 169,600
Sales and marketing 306,008 63,692
General and administrative 658,708 255,540
Reimbursement of grant expenses (124,923) (48,180)
-------------------------------
Total operating expenses 1,118,593 440,652
-------------------------------
Loss from operations before
other income (expense) (942,444) (290,863)
OTHER INCOME (EXPENSE)
Interest and other income 22,136 13,508
Interest expense (3,009) (975,207)
-------------------------------
Total other income (expense) 19,127 (961,699)
-------------------------------
Loss before income tax (923,317) (1,252,562)
INCOME TAX EXPENSE -- --
-------------------------------
Net loss $ (923,317) $ (1,252,562)
===============================
BASIC AND DILUTED LOSS PER SHARE $ (0.04) $ (0.05)
===============================
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING 24,040,950 23,999,950
===============================
Reconciliation of GAAP to non-GAAP net loss per share
Three Months Ended March 31,
2007 2006
---------------------------
US GAAP net income (loss) reported ($ 923,317) ($1,252,562)
Add: Stock-based compensation expense 317,459 43,947
Beneficial conversion interest expense -- 947,317
---------------------------
Non-GAAP net income (loss) ($ 605,858) ($ 261,298)
=========== ===========
US GAAP net income (loss) per share - basic
and diluted ($ 0.04) ($ 0.05)
=========== ===========
Non-GAAP net income (loss) per share -
basic and diluted ($ 0.03) ($ 0.01)
=========== ===========
Use of Non-GAAP Financial Information
To supplement our consolidated financial statements prepared in accordance with
accounting principles generally accepted in the United States (GAAP), we provide
investors with certain non-GAAP financial measures, including non-GAAP net
income (loss) and non-GAAP basic and diluted net income (loss) per share. These
non-GAAP measures exclude the effect of stock compensation expense for employee
stock options and stock warrants associated with the application of SFAS 123R,
and interest expense recorded as a result of a beneficial conversion feature of
convertible debt that was retired during 2006. The presentation of these
non-GAAP financial measures is not meant to be considered in isolation or as a
substitute for net income (loss) or basic and diluted net income (loss) per
share prepared in accordance with GAAP and may be different from non-GAAP
measures used by other companies. We believe that these non-GAAP measures, when
shown in conjunction with the corresponding GAAP measures, are used by and are
useful to investors and other users of our financial statements in evaluating
our operating results and comparative trends, as well as in facilitating
comparisons with our historical operating results. The non-GAAP results are an
indicator of our baseline performance before gains, losses or other charges that
are considered by us to be outside of our core operating results and are
excluded by us for purposes of evaluating performance against internal budgets
and in making operational decisions. In addition, these non-GAAP results are
among the primary indicators we use as a basis for our planning and forecasting
of future periods. There are limitations in using non-GAAP financial measures
because the non-GAAP financial measures are not prepared in accordance with
generally accepted accounting principles and may be different from non-GAAP
financial measures used by other companies. The non-GAAP financial measures are
limited in value because they exclude certain items that may have a material
impact upon our reported financial results. Investors should review the
reconciliation of the non-GAAP financial measures to their most directly
comparable GAAP financial measures as provided in the tables above.
* * *
This news release contains forward-looking information that may be affected by
certain risks and uncertainties, including those risks and uncertainties
described in the Company's most recent filings with the Securities and Exchange
Commission. The Company's actual results could differ materially from such
forward-looking statements. We assume no duty to update these statements at any
future date.