SAN JOSE, Calif., Aug. 14 Human PheromoneSciences, Inc. (OTC Bulletin Board: EROX) ("HPS" or "the Company") todayannounced results for the second quarter ended June 30, 2007. Net revenues of$329,000, represented a 79% increase from the revenues of $184,000 in theprior year period, and resulted in a net income of $15,000 ($.00 per share) ascompared with a net loss of $156,000 ($.04 per share) for the same period of2006. For the six month period, net revenues grew by 47% to $663,000 from$450,000 and the net income for the first six months of 2007 was $39,000($.01 per share) a $265,000 improvement from the 2006 net loss of $226,000($.05 per share) incurred in the first six months of the prior year. At June30, 2007, basic liquidity (cash plus accounts receivable, less accountspayable and accrued expenses) were $1,715,000 as compared with $1,836,000 atDecember 31, 2006.
"The second quarter increase in net revenue was attributable to an initialorder of pheromones for a specialty retailer, and the recognition of revenueunder the License Agreement signed last year with a Johnson & Johnsonsubsidiary. We are pleased to have revenue growth from an expanding customerbase while we continue product development spending for two additionalcompounds that we have identified and isolated that are now in differentstages of development. With respect to the new compounds in which we areinvesting, we are excited about the results we have seen to date, and thepotential for these novel compounds. We expect to file for patent protectionon one of the compounds in the United States in the third quarter," a Companyspokesperson indicated. "We are also exploring several alternative optionsfor the sales and marketing of its Natural Attraction(R) product line, whichcontains our proprietary mood-enhancing technology. The brand is notcurrently realizing its potential and we feel strongly that using outsideresources to assist in the repositioning, and promotion of this brand will bebeneficial for the business," the Company noted.
Human Pheromone Sciences, Inc. is a technology-based company, whoseproof-of-concept products included prestige-priced fragrances and toiletriesand environmental products sold under the Natural Attraction(R), REALM(R),innerREALM(R) and EROX(R) trademarks. These products contain mood-enhancingcompounds, whose efficacy has been validated at leading universities aroundthe world, and whose use is covered under United States and foreign patents.The Company is also involved in research and product development efforts onnew compounds that have been previously identified as stimulating theemotional centers of the human brain. Further information is available on lineat http://www.erox.com.
The statements in this news release may contain forward-looking statementsthat involve risks and uncertainties that could cause results to differ frompredicted results. Further information on factors that could affect theCompany's results is detailed in the Company's annual report to shareholderson Form 10-KSB for the year ended December 31, 2006, and Form 10-QSB for thequarters ended March 31, 2007 and June 30, 2007, as filed with the Securitiesand Exchange Commission. The Company undertakes no obligation to publiclyrelease the result of any revisions to these forward-looking statements.
Net income (loss) per share is based on the weighted average number ofcommon shares and common share equivalents outstanding during each period.Certain common stock equivalents are excluded when their effect would beanti-dilutive.HUMAN PHEROMONE SCIENCES, INC. Condensed Balance Sheets (Dollars in thousands) June 30, December 31, 2007 2006 (Unaudited) A