May 15 2010
Human Pheromone Sciences, Inc. (OTC Bulletin Board: EROX) ("HPS" or "the Company") today announced results for the first quarter ended March 31, 2010. Net revenues of $185,000 represented a 12% increase from the revenues of $165,000 in the prior year period, and resulted in a net loss of $98,000 ($.02 per share) as compared with net loss of $181,000 ($.04 per share) for the same period in 2009. Net cash and cash equivalents decreased $178,000 in the current year quarter as compared with $243,000 in the first quarter of 2009. There was no bank indebtedness at either period.
While revenues increased 12%, or $20,000, gross profit grew by $51,000, or 51%, a result of the Company's focus on licensing agreements for its proprietary compounds. These agreements provide a significantly higher return since there are no costs associated with licensing revenues. In addition, the Company noted that the favorable comparison with the prior year period was attributable to reduction in operating expenses, despite incurring legal fees in the current year quarter in connection with filing foreign patents for ER 303, our coral-based compound, outside the United States.
"Generating additional revenues under licensing agreements, which bear no cost of goods associated therewith, will result in improved operating results. In the past several months, we have entered into two additional Licensing Agreements, which may have the same effect on a short and long-term basis. We are also involved in discussions with other companies along the same lines; obviously, we cannot guarantee success in these negotiations. With respect to ER 303, we feel strongly that it has unique properties and, accordingly, the Company invested in patent protection in Europe during this current quarter," a Company spokesperson indicated. "While licensing is a focus of the Company, liquidity is also a major concern. As such, we are involved in discussions to enhance our cash position, and provide funding to realize our long-term licensing opportunities for our pheromone technologies, ER 303 and several other compounds that have shown initial promise in vivo and in vitro," the spokesperson noted.
SOURCE Human Pheromone Sciences, Inc.