PBIO - Earnings call transcript Q2 2019 | Pressure BioSciences, Inc.

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Operator

Good day, ladies and gentlemen, and welcome to the Pressure BioSciences Second Quarter 2019 Financial Results and Conference Call. All lines have been placed in a listen-only mode and the floor will be opened for your questions and comments following the presentation. [Operator Instructions]

At this time, it's my pleasure to turn the floor over to Rick Schumacher. Sir, the floor is yours.

Richard Schumacher

everyone conference us call. thanks quarter the and financial XXXX Christie, for for joining second Thanks, I'd to begin. to like read this cautionary statement

following Reform forward-looking the The constitute the may of meaning statements Private of Act within Litigation XXXX. Securities remarks

achievements risks, such different Forward-looking and which results, from results, or any other actual forward-looking Company the or uncertainties, achievements statements future the and of cause expressed to factors by known performance, involve statements. or unknown implied may be performance, materially

time-to-time from expressly detailed the those based. on circumstances or in others, forward-looking among include, reflect change and statements updates We such factors with which statements filings Commission. undertaking any any change Securities events, any in disclaim in conditions, the revisions publicly Such are Company’s obligation to our or or to any to expectations Exchange release any or

is As pleased I'm Board, that Company's say stay Chairman, we Chairman the Q&A. the for is call us to and for mention Peterson us, to I the call begin, everybody on going to our with the that of join and he want to Jeff

welcome. Jeff, So,

Jeff Peterson

very you Look Thank everybody. chatting forward with much. to

Richard Schumacher

Jeff is development calling-in traded with here. Boston, bookends so privately from He chairs in company. area. companies. Paulo we're calling is I'm held He science stage from publicly life two also involved Alto another

of in a also Jeff, experience chemical great engineer. So, superb lot and he engineer, is

us ways besides too helps being other actually in Chairman. he So, a

it the I at the mention apologize not that it over release briefly happened XX-Q, talk going agenda but have magic couple second floor the was that things about I a So, press filed will to up will filed updates, the that go open financials, today. the talk and nothing the business of I recently that, X.XX the is to going going was were Q&A. that some I'm quarter about I for am to X.XX, today we’ll in then about that

doing was left from on the that Account and and he emergency, Tuesday our review, had available auditing night, Staff family was and and he not firm a -- Tuesday Chief the Wednesday. Unfortunately, was he

amount it to others. work and were the yesterday get but It pitch and done of So, filed. was taken doing today, they today, be had got in we and by he to done had

Q it So, for extension though goes. to the file the we out that’s filed, it way even is day, had an even but a wasn’t

So reason of guy crucial most late time. that’s review the was the an late, at it unexpected, a of it of doing family emergency was the was numbers because lot the for unavoidable that the

that have So everybody now. should

release you at looking the the and finances So the have have Q again, press you now. all

to comments. briefly has So, then anything during for it Q&A someone happy I will the and go address the questions through that or

quarter $XXX,XXX $XXX,XXX second for the last XXXX, period to XXXX of This year. second total same versus second compared at looking revenue quarter So, quarter a XXXX of was for decrease. XX%

services, quarter, number that and the was to decrease. $XXX,XXX in compared for revenue a Products XX% $XXX,XXX same

up said to continue which coming And XX%. the well. summer were to down XX% So, products but consumables from record. were see of consumables record compared over which other the is to months an an ended I about down were increase on XXX,XXX, overall. an down were XX,XXX. and sales at down XX,XXX, they more, up to XXX,XXX as hand we all-time even Instruments all-time Consumables services is quarterly in

then the of which ago our where being these to instrument our purchased are we of Technology. should BaroFold we’ve the and road; Pressure Cycling instruments sold have knows, we more right of years technology a three Ultra and all from; two a lead which but have and Shear then everyone service is As we got platforms; sales down now,

we contract service, January. in BaroFold hung shingle our our So,

about had in our shingle it from company work, hung ready year, $X we wanted for Last in We for billion use but the that. small lease we revenue we reasons. international had we getting in a large announced believe year, a understanding spent We some year company, company XXXX, important, XX,XXX one I Korea. the wise in services January, to second January and number our quarter signed that cap very of market a very did

get do. figure, are a that we drug manufacturing exciting being we things area in figure things that number can they're market, drugs, to Pressure and money it’s And that’s improve end number developing because of protein a to it, six the help what contract definitely contract, while Pressure of do save it, up the our figures, a friends using base quality, could about this any seven

So, this group. we signed

it to happy signed announce second multibillion I today. group. a that I’m we've signed actually

So, it very is topical.

we owned So, This but our we finding it coming advertising. a shingle, company is second we’re to and BaroFold and that we the mouth. have from word all from is of us. hung out not patents This people

us. will to value in to $XXX,XXX believe be contract $XXX,XXX each signed So the I we range

And with through some if them, companies market go figures. certainly into and the to get they seven the way of when go all could these the get we FDA

two So, going lot got our the a really that companies year exciting last services. from be We us it's terrific for Company extremely year to two and this are we’ve to companies. have these now learned using

same were second for the at BaroFold last quarter services year $XX,XXX the this compared in to year. XX,XXX So, the

we're it we’ll same providing but if company. mentioned these dollar matter or make XX%, dollar dollar billion up on it million And billion to going company think just continue I see services. that because signed to to charged a going you're we’ve doesn't I company. They're So, another money the certainly that and as be

contracts platform Those $XX,XXX to QX, the an quarter Ultra second third XXXX. reached compared Shear. in technology services $XX,XXX Our is and

amount, quite increase. was a increase, not that So large a a a huge dollar large but quite

ended We had no revenue, in November grant XXXX. the grant

the -- the hoped up against that had that last And $XX,XXX did significantly SX One year, we've but we the been year we last it's since it. the to to forward quarter, We're from accountants have fees get reasons. over Operating expense to to have. said increased, had we've increased moving another be second not from hope so done. for we not we listing, able two financing have loss grant of write we unbilled near the primarily that future, is very NASDAQ, off, up failed it still in looking to would

$XXX,XXX reinvesting And of of that expenses August to so, option an expense we also we And stock we had non-cash had to repriced stock for and last between fail relating options about $XXX,XXX of renewing of expenses $XXX,XXX. financing year of the XXXX.

happen the delta difference from that and was year. short-term compared $X.XX two. between once Loss up of either that So, items per a to of almost or makes the increase of the all are couple came going that last to only share $X.XX in

compared first half XXXX to $X,XXX,XXX revenue to $X,XXX,XXX, Looking at first the compared of a decrease of was XX%. half the XXXX, $XXX,XXX of or

to some revenue, few again, quarter in make about down instruments our were help about So difference. to them XX% But minutes. both sales XX%, XX%, and and that course of can total lower BaroFold in of both lower, were talk higher were just were we UST of sales down in and that our up a second first our instruments sales, but

year this that believe half the revenue going of total We come to is remaining the for back.

good already. very indications have We

last months, September. already at past that and we the that half of and year first us. really number the to of and summer a between now through we just halfway bodes where end whole are we're the it's for were and We're quarter quarter have of are which looking pretty We the projects well, for closing slow the

were instruments our feel So, and pretty sales issue that. confident that a corrected that we that we've two quarter

us, the find BaroShear which clearly, press think had in the more but company. to work on A few choose affected extremely is to lot fact adversely a nanoemulsions instrument this talk CBD to to about in of important. the away pull release UST what's the This makes minutes out said people is the year, was really important and CBD I we we'll that all that, shortly had that Oil. we we'll BaroShear as our I due of And that to

half they both million first second decreased the up about hand to from the you the sales down were $XXX,XXX in a services the instruments between and first quarter, were when product to million the on And $XXX,XXX. down compared from and half other first year, consumable $X.X but sales, $X decidedly of So, XX%.

that's somewhat So that mitigated effect.

very BaroFold year. signed to first And of just started contract at year number $XXX,XXX services of Ultra up. for $XXX,XXX, just versus In services, $XX,XXX. we're the this -- good we half having And the compares put we $XX,XXX him were with our shingle first Shear half yet. the of that company year for second hasn't last Technology the haven't even

being is from again, lack of loss we instrument some So have the the picked up. that of

operating we sales momentum goal our of keep majority I side which get not and is it of high of the was back, and two and most goal, to most have quite instrument Shear, BaroFold to company and the falls areas, that as the into but Ultra it. amounts of and going we believe a second in lose are the but to and the the it quarter falls The business. again, into loss My

year that in public to XXX in Loss non-stack into well knows, for additional was common XXXX. compensation compared that $XX hired Commercial and year. was addition cash investor share Officer as mostly, fundraising in bucket the relations to and But we a half as Chief went as ceased travel In everybody for some it services. back last per

cat ones this addition another that month four. think and -- a point, let signed the so, was we're the release on BaroFold things at is we're in discussions and we've the like talk in that the there's do about it more also what fact should household to I've So in the several names. already three a in -- I discussion press with I that customer. I'd bag, And really our ago, bag with say of out to

the in talk table to of a it very are briefly very terrific we name year. there's for other year bodes household it's us think I in and want well our companies this funded, addition to about. second because So, And that because can multibillion the think rest press talk items in I Company, to the them they then, to three great I us sets services. come about newsworthy for next that to want release the ones for company, signing dollar help But have BaroFold well

and just another bring now Officer, first who things, just announce Company of before what has year, Jeff as Young, years like to with in Dr. I on. goes many last, to this our mention Chief about back to pursue to left instrumental joined loves three Jeff. us want it over all, Brad last that to him a talk to Jeff opportunity. helping turn these week he is And was this But Brad I'd and briefly. to, the Commercial

Jeff Peterson

and thanks, everybody. Sure, hello Rick,

Young and As Rick team. Brad better of got of number I his appreciated to I respected breadth both were to join know And said, known and years I've him more and, quite for scientifically capabilities, business we our the wise. and the a delighted have him

to received Brad's a focus. kind Brad he new outside is It to biopharm nutritional traditional very a of was play. of step want and the supportive exciting biotech see through-and-through And we understand start-up areas biopharm not diagnostics, device the a his arena guy did but of a of is motivations, instrumentation from for this side. something to even happen, opportunity

So, we go. regret seen I to him have understand although it

product and we the area Ultra many to something the BaroShear areas. technology on that Other our enormous that. food emphasis. earlier, But emphasize vast on I across comment, CBD application CBD different to entry of would that opportunity breadth a is I'll can was When sort ranging And about make just just in Rick of Rick just many our will some I our just and commenting commented selected its the wanted more and associated very I excited, is vehicle. we to talk so see other and Technology, were you this nutritionals areas UST. we're and Shear then for with Rick about talking emphasize and minds add

you, to Back Rick.

Richard Schumacher

All Thanks. Jeff. right,

February, tonight, hat and by right it's -- in it we're and COO released wearing newsworthy I not left item hats. to third have close. made, been yet would Everybody have CFO but is very knows my been that interim CEO our complete that being that that complete. hope that addition it I've to is in CFO, now Joe I'd but hope just The

I kill time BaroShear, on otherwise about review and And frustrating on when will me taken the anything wise. the a a XX have review frustrates the we doing in the it as a and it's I'm for for because me second two Anything toll wife excited I've me lot about the quarter spend, end, lot CFO a as of been for lot particularly years, and I the about last my last terms on me last the business on talk that end. in weeks

been want resume. a we so number to stellar He's it person maybe someone, down somebody looking week. bring with hours a And in XX time, talked we've to narrowed for to one of local. we a people part We've

very For you sit more phone, but can that have things eyeball. me, area down eyeball out not numbers. together much especially just be is to wanted to There's hammer important to in and many There on somebody the it's and this so here. the of that so

very He we’re and a close. stellar stellar have have And record, and a think talking close. we’re I been we do a has and very I CV, who person local got

fingers get tuned job thing one to have our and a up it's end the me -- don’t and auditors, can a chasm maybe some where somebody we but bring to so cross get do more So, and news, in back pushes run in better cross with over. can need that it sick very we and, than this but the somebody I important day CFO to we and it’s we’re my that that know, you do what do that have small is be do that free

our because fourth I because done. make we the than or we but is to run new that PBIO instruments, and we’re instruments impact the more five larger but up a make lot expected is demand about is BaroShear that a have self what and thing release second talk So, instrument of in said BaroShear, that released bring on or actually We’ve to the KXX four, in decided today, three normally terms reasonable we going XX of the this the number instruments to a ever press I we’d on of and in is what going demand here new we’re we’ve put when made Company, in the first it can number. six the XX at

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I’ve And yesterday two in everything today, else, between purchase then just and orders. more gotten

three, buying the XX% XX% about normally and we before days instrument. the then night building of person, the to one in months, shift we’re it’s is one So, it systems we’re six we’ve has for ask exciting from, to of then our sold the down we eight XX came and because three last a now and what’s in come rest this it

it yesterday And deal. But is XX% some there, to went you the machine can I build. it’s I’ll getting you whole thought different me because we’re days tough through, I even if bit down was push a back gentlemen not but amount. pay give the there put done XX to said is a

and cetera, optimistic of about next head and next that that spoken on very sheet, guy or made it XX don’t all are CFO X X and week. week XX week a for et in have specification the wear for to I with got I the excited the of people I I’ve the sales phone where BaroShear, after I’ve pretty information for that have XX can the much or they’re again XX be been received in say because my I’m I’m very agenda touch XX calls and now excited of So, to or a

consecutive operational very disappointed long it make I’m be So about beat let’s highlights want me me gets take after greatly, and XX in then for refresh I we but don’t these briefly and to or on highlights, upset. the quarter I exciting mid open we let’s XX talk missed disappoints knows this, too where are frustrated I’ll that previous we very that quarters mean that two this quarters instrument XX year and same sales in to questions, a row, it the it missed and

to okay, on others or now fix we fixing first Making we’re right many a in a I or the instruments got it And that third second. need somewhat as is good problem. includes and quarter quarter said, I've but third either very good we we’ve than with and more the up problem said sold the

In fact feel combined. instruments the and yet great still first to that our did more in getting second optimistic Ultra is the and feedback and third quarter I good we the now quarter very in getting we’re And on Shear. we’re goal feedback third quarter in than BaroFold sell

about let’s Shear the the called Ultra equipment of launch BaroShear KXX. talk the based Now,

that it it's oil a released critical will it's the website. haven't major, water using Mother and not this the it into that disappear. and seen even go and go a problem, is it. so how a area. on short and make in it And Nature shows it, critical disperse so please major It problem, video CBD make our if we So, we've you shows -- during can quarter take

mix. don't comes and In and and the of that plants out oil water oil CBD an

not what nanoemulsion is word nano-sized poor. they're that hears going water tiny, very absorption be on tiny, are going the everyone soluble, means nano, they're not means market products size. call right And are we the not be not which tiny size, that tiny, the tiny many so And to that to now

some just ago on study the Organization the a that Health they're weeks the said market, products I've that there's someone World And of only I in a so when XX%. good fact, lot. seen than chance couple tries a going to saw very number less get And

easily be from to bioavailable are how absorbed. One in nanoemulsion. the we can is XX% be to turn it's all more in nanoemulsion, them the sure, on oil the can the size, it, available. for into oil So, I There that so is are making as that lot over that scientists the that to that in break way and to And than know the trying is water close oil absorption the nutrient that consumer. the to methods is enough get going tiny small it more or down XX run XXX%? you -- less groups a also do and don't a the now world it material nanoemulsion tiny, a industry of long the a make think We material know using accept closing

they're under make patented we're shares experts that it the load. the or to We it of We things reduces a valve adding invented pressure. bacterial a cuts CBD. lot kinds release the It it put more valve under put it They're a to in oil. pressure. this lot we've pressure and through try the We modifying encapsulating use of into, of all chemicals, CBD. cutting doing pressure and They're shear. They're absorbable. or We

different from drop So only, easily XXXX are oil droplets. now more material and those give, absorbed And oil easily is becomes it. it's droplets soluble, the as one oil little as I like more much much an water example

more more that And for soluble, know We nanoemulsions a more we in fact, general. are bioavailable. know this stable, water

good I or XX something onto great. and we're can an with. we calls BaroShear you selling you're very phone believe about made know it's on is. something that tell I've KXX So hour onto the the phone XX so as the what from spent the here. and we something, I've excited I think big it I'm what says, we When we're

So, it. that's what's exciting about

we we're we're instruments. that going that if six of successful, XX a build will successful I to It's save process. everybody revenue selling It's or these and this cautioned these in long book year. one we month instruments, we for need to If XX to a can't us. be take believe to I eight

The second build not the first long build is very process. a is but

be said sell will and year will we And that will January instruments what we XX the sales we our that be posted we June next and delivering year, feel because last book. means as year, they double feel XX can gave year we revenue that this that that's And are why that's between guidance XXXX. for be and to we and that, next when can

to make be I you given see, milk if Very and Department over want then drunk through us see Ultra and for to temperature have add can that on. he'd of then an of $X up if going be to that that you Ohio want. million instrument State. be it and of Agriculture to go what milk two State and can Shear will sterile at or chilled to room Jeff use said a on a these that's and few liters want Ohio They They end, minute. Technology shifted like has almost months or highly turn a quickly, will U.S. you opened process stable

heat-treated give the you in Why its destroys to Except protein, it drink and the what people similar is does in proteins. say they will very flavor the don't Proteins awful. other tastes because awful? Parma it texture. elsewhere world. most and Heat lots and that melts its This Europe taste

want like away milk. from to you So keep it anything

temperatures we for period low So pasteurize short a it of time. very

get heat certainly, away want to we So from. something is

and quickly lot of generate and we don't We Shear, that when Ultra with heat heat capture do dissipated. generate we a very heat

They're all agreed the great work. doing State. They're Ohio It's relationship. working a analytical us. all chemistry, We're with working USDA with So funding us. the

BaroShear them to access similar system to we very data. all different It's The similar. for very the have We built those is System. but

cetera. liquid BaroShear pressures, make what rates, and liquid oil CBD, the we by better, different a say, flow work Ohio it's the funded difference process. going at put be able a learned and between this we're So the being All our we're contains different et doing not to different milk through that's USDA, everything this that will to look State, difference, that of we temperatures, is that cheese, need and to lot

more our and So Ohio to with colleagues friends State. we're work three it's got at excited years moving along, we've

we I've already learned that with our services, expanded the really to number drugs. to continue are grow. think equipment companies companies mentioned and we It that And to the very and getting we us have to limitation there we've developing that not of if methods. two. developed have we've brought We something the build we've BareFold dozens start more if of a come will to some expand see are dozens accommodate internal we've companies new lab them. two large than And need is now work we is protein would this

June or our working core And protein of micro-dissection. chemist, the cycling instruments. of pressure acclaimed our the of American typical, Tom are, method for who's nationally Spectrometry, standard release at the our Mass the called laser technology last Dr. using pathology Conrad, a press a who's an pressure have is thing I in suite capture conference constant area And in Association

through of system, our saying taking a that. He tissue samples that out out dissection, work critical meetings samples them and words, helping to for is instrument road. taking using the tumor they're that to capture in process once about that laser it's at his our micro using tissue that how bodes system the talked fact profile stood laser it. System and down that studying, a he's our they're and critical our us and well support he And data several have cancer, And doing, plays he's them and presented Barocycler helps up, now role he's the us in to they're

it know to listeria, that see groups to instruments lastly, there these by occurring. And our all used Tennessee State, coli, constantly using that be the are if there try maybe at E. are upfront. of to other foodborne testing out prevent And scientists the the about are can we some issues

good using the our our data And called pressure of so there's safety, some food on hub. instruments one

mean fruit that next talking the So, revenue in low beyond. quarter about get Ultra XXXX you now a mean and revenue I you're I quarter happening are CBD Shear the potentially as and those revenue things after, hanging now lot and of when

sudden, a So that CEO tipping that it point. seem as to gets that of here, to for we close very And getting very that, very, so excited be a me all exciting us. it's called

do briefly Jeff, anything want said. you So to I add to

Jeff Peterson

be a clear. this one Bio useful on Well, companies. of lot, a of but covered not I'll a you problem that an take intractable know were might and on excitement and they with we lot Biotech the Rick, me dozen have commented the moment. we is Pressure thought some goes just occasions, exhibiting at and very lot may old facing relationship back my call might a note view. years, for just of I of the I on that prior a and have my a past them Conference years, discovered point people

critical in some join time. the that them. technology able chair led to to doing at growing We and support board, to collaborations a do. excited and of financial It tried it it them investor no doing for I way a be a out, that at with a to to and prep that series sample board to agreements Ultimately, time began other the something I've which could was bring year later, and miraculous time been was the downturn, XX

of me that of I mentioned, all had to looked degrees. dropped going future Rick this was engineering on kinds background, have technology, penny prep I what big sample we I at and saw the as chemical it tell And my In and is really first for initially. you, opportunities thought outside a

We and how gotten papers easily have behalf of applications the gaining have without XX and leaders technology tremendous on review sample the fronts sign prep there. that that traction if traction speaking they are several seen we’re hurting on

new me was It’s enough capital and to that. resources Pressure seeing really find expand company so has technology three foundation Cycling And But with to how now was by prep Company and for the instruments build exciting think the team its this that on. limited what platform I did just become fast our particularly a the application and Pressure in extension areas. sample

The and amount. BaroFold biopharmaceutical arena really cycling pressure enormous opportunities opens then protein, the significant technologies and are by quality particularly and Technologies opportunity bigger in control probably enormous manufacturing which up in development disaggregation refolding

end And of then biotech Shear, some to that lubricant platform high application. mundane address fundamental create to products and/or kinds very paying one spectrum, as in Ultra area our of finally this at applications things and all value nutritional will ability kinds and new as, but food nanoemulsions this

opportunity frankly obvious is the there, excited we a about Pressure lead Ultra are than BaroFold the with, area the the outlook Company. is to in CBD just we’re and very initial is about traction bigger mines, cycling And our which for is and intern us incredibly for Shear than just bigger screamingly But excited

Richard Schumacher

So, thanks people thought the over just of because -- seconds, lot and Jeff. everyday like example to about speaking know I were it just a we’ll Q&A turn And I example. I’ll XX about you as

before on like when salad So on to on you you and your you you darn, mix separated. when crazy on an it and example to of it Ultra shake put your it already say Shear vinegar mix to it put try is because favourite goes it’s raspberry

liquids better a Ultra if taste that Shear is good probably our it to of technology type that system than fluid and end can will single that. that mix treat be not taste don’t as normally water, put up it a with we will because take and to and one them mix appoint oil where that fluid and will we’ll vinegar they and like things oil -water, will we

CBD, a I the I’ve no spell didn’t and is it’s -- but I year could idea CBD even we what So, that’s was. have half example, best an what example ago. CBD right a know now

positives. a probably XX won’t told some help have XXX. here your a neighbours. like think But involved because I’m to but certainly additional I Now, the that need Excedrin three It got of has has you I and need me tablets, is becoming believer certainly who but come it's XXX taken has it that you clear have XXX here, friend milligrams, you've it’s some and positive XX I you facts, milligram you and head say, milligram to and family it science get that milligrams.

the very But very you’re And CBD, happens very site what believe And and can that’s it heard to phone. this every videos. I’ve before, bioavailable. form. get when XX, them call only I we is we soluble right do and how be we I now person it like make make, heard stable with its him it Rick, thus before not it the and should going starts with it I or it I’ve incredulous to water off current I can’t water very get describe in be bring the

So let’s Q&A. up anyway, this Christie, for open it

Operator

[Operator first Thank we’ll Instructions] open J. you, floor now Hetrick And for Charles Assets. is with from our questions. take Rick. The question Jay

Jay Hetrick

How afternoon. are you Rick, good doing?

Richard Schumacher

Hi, Jay.

Jay Hetrick

just break dollars, say units, quickly. far on the it down, sold. what units BaroShear of BaroShear encouraging It's is, question let's these equate would based so happen system. just that on, those, revenue Congratulations the as hypothetically see to that three that the with to to What to And speaking? units, as trying you've XX see was my

Richard Schumacher

be let's at, it will to consumables call that. list you right it add probably $XXX,XXX. it's To system some because it above here. there peripheral are make The easy, it peripherals, some But when close

So call it $XXX,XXX.

be XX million $X.X to call to So, that and use or we prototype it decided $X.X would with continue million sell peripheral. all our

know million units PCT trying most that phone from very we we $X.X didn't now even committed XX And $X.X our X.X, So, the to to about to from build did people that last we're to I pre-sell our we're year business. think million. X.X, is close on do

their Next and have PCT. BaroFold and have XX phone units, year, the have we'll we'll

Jay Hetrick

next see that year do for you outlook XXXX, speaking XX an that to year, have even see units? we these Could machines? So double going on or perhaps

Richard Schumacher

That's have here, on an given I guidance I'll on careful I intriguing that, say not what question. be because Jay.

first to we're Because time build got I we're something to the to etcetera. inefficient, What XX careful. X. So I my said But I had XX. is going If it's build it. be committed we're you're and druthers building doing I'd

will between we be January the of. is they January next can for year about asked been think building XX never have built possibility sell, next year you're closer we early and more or be can sell I asking ever will Hopefully this I June. we than those guess do and what talked this XX, year? consider nor And would in year we're we I've the to more installed me selling than June.

will there this, it answer dozens me I'm on I is now think an not we you guidance like benefit upon ours. ours, going are Let Jay, I'm like of this. tell don't market I'll companies is not dozens using to instrument upon which you dozens going upon by get the believe to in give What that or any anything that instrument our there dozens right

Tim. built in custom pressure top world, of is and our brains all made high by in the of Dr. the Ours one

of decision don't make, got And now right But market have will got up, I I? and in particularly cannabis and guy. enjoyed the And then XX big from people so, to if instance a in CBD we're I I'm that come XX. I say I XX people, And I committed end I'm is them a want instrument. being calling our calling just buy lot. got But a a I let's believe for it, to sales XX people to very I've sell, to lot and making learning

or for see we more which to more XX need, And could now me, that it's goes. I $XXX,XXX, let's just expensive you're build to you could. answer to we're that decision haven't being that not little will much will asking in it's than how work year. going instruments, But The believe is is bit these think we? XX. if cost pretty these I'm time, at I are here, We building But it any conservative made we selling committing we a XX. least next because satisfy than to And yes, where

But much that and and the XX, the will it know. we expensive build is, XX well next the to built it the first goes XX, next easier, faster XX, less if be next whatever we once

horsepower grade street. is almost thing I from it's within of purchased tons requires a live mentioned in Jay had The electricity done. other pump, extra demonstration be huge our we're pump. building already the It week. here done GMP a XX It We've a a will building, demonstration lab,

when tanks. these BaroFold. have, We bought pressure bought already a of we We lot

leaders. pressure have we So they tanks, to go XX

lot of anything. two just and the bit volume liters through. at This on a chomping minute couple going milk that a very minute that liters the of because weeks here a have about do within paper instrument could we're to people will two a do of of are We start some large is running

do see So in in but action weeks be the over will but will what few we lab, about the months, our only people to excited invite industrial of hour. also we're able course this far in will to is in hope other the not next what expensive, the BaroShear the to anywhere be to do minutes in instrument an scale it instrument, more demonstration it does from

people, some they they we contract big contract food it can build if building need big bottling have it. or And it. and actually think we a a we may And are

directly. you answer didn't I So,

and answer sell XX. do bigger Could the market we we? think and question make more? can I that is future you math. in the than Will the Let's Yes.

Operator

Gallo Anthony comes a investor. And [ph], from private next question our

Unidentified Analyst

you of the looks excess is question a I'm expensed looking at have for of the like you and which in I months X,XXX,XXX interest expense. million. XX in three total It liabilities, terms

my question is. to going how we current are fund in the are actually What And So paying we interest liabilities? rates?

Richard Schumacher

a rates the question. nice from Anthony, interest in Q. and hear although in to Q Yes, all Everything's everything everything's it's the tough you, the

are about million of We year, talked in the in It's a into equity, we stock. filings. our also true received $X preferred many about in last equity --

debt. failed balance -- do us sheet, a XX raise They it, years we'll million. pipe. two Anthony of on no the zero hired The had our to August With debt ago, with said XXXX, bank, we

then the next or had we in And we only a to didn't we get no XXXX, had money is to we three XX% months, borrow almost we're had to we last reasonable And year could rates equity. loans, interest get high XX%. money, applied talking money many any. money, the So interest rate four where places coming we of are for for until May from that

interest high get we the and to were So loans could get these loans, only rate we did.

over so we August million to from that year. we right, XXXX XXXX, And took May of have, months. All Anthony, in about $X loans of

We In queue allowed was rate high reduce very has had to took and in -- $X we've think X.X, around in last can amount year, of go in increased that to X.X. million back see around debentures the we've you The significantly about interest that value coming in these loans. the take. million I it the of X the to us in X.X equity borrowing

year So gone last to X.X. debt, roughly dollars it's in million the X.X amount from of the up around a

nobody stop goal there The to is more taking wants me. these is to that than loans

wanted had look in see million be the personally I a think to queue, if I've you'll for auditors time there, you the first the to dollars. about guarantee

way So these that only loans get money. taken could and the I we've

coming we over to do million the take equity in are next we've is that took got we thing that's have going last that First we the what year year. amount the of the increase to to got So to in do? don't so we even

got to we second is we get and do profitable. got up, got we to to get thing revenue The our

than company. company. only choice as this debt not us. into money financing this the We people to to of there's debt, it's much to month we finance this to two debt told our we So had was, is choice as costs every into put put this, financing do or this through available it the pay us debt-off. And ways as many grow our much three but death I've it in does the and our obviously, building every And months we only

in met is especially of Shear the with the or a you and and Shear I’ve the more year honestly here I’ve last that, Now who Ultra people with is the can Company goal are just I from three to Shear, fancy, have two. my be instrument has have I the so investors, expectation it’s more tell the interest $XXX,XXX can Ultra last that in successful Ultra the we math. met you interested do weeks, the with got

XXX. our in instruments world, out three XXX We the Barocycler of have

Shear I the figures. seven selling larger average XXX,XXX where system XX,XXX figures. is about its me is to know instrument cost don’t the compared Barocycler is the and are The figures, seven asking about on people that Ultra but seven

Ultra answer. our or them what because on to one and people be they’re I seven So, this the off believe pretty done, of pull might a six and that XX I decided as and still the its’ thought getting time much put Shear part I CEO answer the ever doing

believe And be need money that instruments I need successful, to have start few weeks. will. to next these we over sell paying So, and then the I to take I XX We effort particularly and down we building our be at we BaroShear. look more putting And Shear be instruments, debt then we should our Ultra and should have into to stop more debt. borrowing

cosmetics, hold probably It’s point, And It CBD candle the $XX somewhere consider as doesn’t paints is can into. market. or all and you billion BaroShear billion to if and Jeff go market, cannabinoid, a pharmaceuticals, CBD just and smallest market doesn’t the nutraceuticals, that between and touch $XX -- oils. liquids it’s smallest instrument a our industrial,

bring you So, point up good Anthony. that

Unidentified Analyst

Allergies?

Richard Schumacher

yesterday, like a It owns can’t you instance to on in I again, with because for getting has send talk delivery it that his his nutrients, And I delivery to applications was company sales. that when when was understand end, which are it Why? beginning. was was pharmaceutical very of dollars there who is in in the of At all a in And for I of website. allergy people cannabis. me he’s nutriceuticals system he somebody he to he of system some allergies, information. wait the renew millions talk his it as cautious a allergies very, has and the

chance its they absorb deliver and they than spray, being them And he mist more better have through much of and product some that, turn higher into you if of understands absorb, can now. nanoemulsions do a

he that Jeff nutriceutical. mostly does cannabis, pharmaceutical So, a he is to is interested owns because company to you in add want interested also do that? he but

Jeff Peterson

to The was medical years which device This tremendous disbursed a through saying. and nose ability last that into part challenge the down seen on XX and amount bioavailability, is much so these on in have in sizes drug to been was different not of whole to sprays California. ingredients each here in size just the a to properly other, to body focus I droplet probably, and mist different of things miscibility enough needed. distributions and if it’s gets dissolve of at the There the addressing sizes and that going what that’s of Rick into I has add so so is Jeff. innovation enough tiny going out small you it or on the wherever and/or delivery to give much over longer, absorption

of pharmaceutical in Our terms capability to kind administration absorption where enormous in much that think for prepare simpler, arena. of for it’s it in suitable nanoemulsion opportunity easier already bioavailability a task is and a an that we allows potentially, the the and

Operator

no this further at And time. be to there appear questions

closing remarks. turn any to will for Rich I you it So back

Richard Schumacher

got Well someone just -- you Christie. it’s once get they I’ve or I couldn’t twice, an later saying Can on, but on. email know run

like me let’s may give sounds seconds if not and had Because and be But I just too question, bad anybody say, pops it they it any. XX feel So just a there fast. tonight when email ended on. but say, I

Operator

Yes. [Operator Instructions]

Richard Schumacher

Okay.

his to dozens. about here. a take happy his hundreds, I he's concerned even I the calls, on share want I've I've calls it us busy not Jeff, close or and stock lot to a do thanking, guy But very I people personally, had the He's number about I to a who and lot be I'd So, and had very to first close thoughts. time. of Company. concerned with know of are for from know a that really taking appreciate. by plate got time

more that are more than that near have talking probably totally my in And both excitement you time. me the I are that opportunity, last feel to the really separately the key them to of optimistic more have get and said of they'll and said, have years. pessimistic more same guys was I chance say of them. we to I I and week, thing I mad but know, same day, two inflection point this, for that, at most And I I and here than

the to this two -- the Rick, way. went, I said, is I of same feel terrific. gosh, And my And astonishment, is my them this

So I does as he's really Jeff expressed. do,

has it's We're to the it wait our an We that be first are prove think I tremendous to technology because commercial there be And I to have can't going BaroShear. proven. amazing building the unit.

the have We prototype.

out have. tell telling opportunity the And excited all to And, just cold, our calling to within the a of be guys very and have it we warms go because just I'm have XX% time, very that the up. the I'm are blessed guy minutes, out CBD -- website. making it them them and the I there few And that's I starts on slow, what the

by customers go we've Merck, used Monsanto, FDA, and Cedars-Sinai, and Harvard, CDC, and there UCLA, more Squibb, and more Oceana, Lilly, more, We and make products to too. are Pfizer, Stanford, that and FBI, USDA, Asia outside then we Bristol-Myers get Europe and and got

So and the confidence gives know that what because we them sort that of do. we doing, we're

happy not last sales I'm the of with So the two poor quarter.

about of and UST. the excited those I in the I of extremely about I excited prospects bring Anthony that And sales fourth am. do have more happy third about -- areas, am been but our anticipate potential I that now change and the to PCT and BaroFold dollars Bio, two the I'm to years, now. about in business, about and both in of today, quarter, that Pressure this years excited quarter next not years as I'm I'm in from

me that I things was pay and when But profitable has then in in operations. I increasing becoming putting frustrates life, from But most It of revenue. us the pay as interest to year. over in and than amount have debt. And that our more come will the will coming look I it equity to wish money drives an And up, at us more come hopefully me and brought Anthony into crazy. finance I the in past we that come

success. we'll debt will just be want pay to will take look another us that overnight that success. say off We that. at And then And and Okay, everybody and

Thanks there's a November. everybody be the I'm in probably rest once have going to have to you And to more often of your two than time. a everybody, draft Jeff. taking So, for on thanks talk And joining every thanks great And for years. summer. groundswell, this we'll if

Jeff Peterson

you all. Thank Rick. Thanks

Operator

conclude participation. your And teleconference. today's appreciate that does We

may You lines and have a day. disconnect time great your this at

Pressure BioSciences (PBIO) 15 Aug 192019 Q2 Earnings call transcript