SAN JOSE, Calif., May 16, 2011 Human Pheromone Sciences, Inc. (OTC Bulletin Board: EROX) ("HPS" or "the Company") today announced results for the first quarter ended March 31, 2011. Net revenues of $186,000 were comparable to the revenues of $185,000 in the prior year quarter, and resulted in a net loss of $7,000 ($.00 per share) as compared with net loss of $98,000 ($.02 per share) for the same period in 2010. Net cash and cash equivalents decreased $37,000 in the current year quarter as compared with $178,000 in the first quarter of 2010. There was no bank indebtedness at either period.
Revenues were comparable to last years amount and gross profit decreased by 11% (17,000) due to the revenue mix, a higher percentage of royalty income as compared with pheromone sales in the prior year quarter. However, the significant reduction in the net loss in the current year is attributable to a 41%, $96,000, reduction in selling, general and administrative expenses, primarily attributable to major reductions in salaries and related employee expenses. In addition, reduced research and development expenses were incurred since the prior year included associated with the filing of the patent applications for the Company's sea-coral based compound, ER 303.
A Company spokesperson indicated that this is consistent with its program to keep expenses to a minimum, while actively seeking additional licensing and product sales opportunities. Both of these objectives are our highest priorities; however, the Company does not disclose discussions with potential licensees and customers until definitive agreements are signed or licensees' products are introduced into the marketplace. We can state that we are in discussions with new potential licensees, and expanding our relationships with current partners, the spokesperson also noted.
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®, REALM®, innerREALM® and EROX® 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 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-K for the year ended December 31, 2010, and Form 10-Q for the quarter ended March 31, 2011, 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)
SOURCE Human Pheromone Sciences, Inc.