SAN JOSE, Calif., Nov. 14 /PRNewswire-FirstCall/ -- Human Pheromone Sciences, Inc. (“HPS” or “the Company”) today announced results for the third quarter ended September 30, 2005. Net revenues of $91,000, represented a 70% decrease from the sales of $300,000 in the prior year period, and resulted in an operating loss from on-going operations of $198,000 ($.05 per share) as compared with an operating loss from on-going operations of $131,000 ($.03 per share) for the same period of 2004. For the nine months ended September 30, 2005, net revenues were $348,000, a 51% decrease from the revenues of $708,000 in the prior year period, and resulted in an operating loss from on-going operations of $727,000 ($.18 per share) as compared with an operating loss from on-going operations of $494,000 ($.12 per share) for the same period of 2004.
The Company indicated that it had anticipated a decline in revenue for the year after unusually strong sales activity in the fourth quarter of 2004. In anticipation of the revenue decline the Company focused on reducing overhead spending in general, but increasing investment in new marketing and product development activities. “We have completed the revamping of the Natural Attraction(R) line of mood-enhancing products and developed a new, more interactive website. This line will be promoted using a cost-effective Radio Media Tour starting later this month and the new products are expected to ship at that time,” a spokesperson indicated.
“In addition, we have completed physiological and psychological testing in men and women on a new naturally occurring pheromone compound, with the final tabulation of the results now being completed. In a preliminary report, this novel compound was shown to be effective in testing performed on volunteers of both sexes, and we are eagerly anticipating the finalization of the statistical data very shortly,” the spokesperson noted.
Human Pheromone Sciences, Inc. is a technology-based company that develops and markets mood enhancing compounds for use in consumer products. The Company’s proof-of concept products included prestige-priced fragrances and toiletries and consumer products sold under the Natural Attraction(R), REALM(R), innerREALM(R) and EROX(R) trademarks. The Company also licenses its proprietary technology to other companies for inclusion in their products for direct sale to the consumer. These products contain human pheromones, the use of which is covered under United States and foreign patents. Scientific and consumer studies have shown that the Company’s human pheromones positively impact on the moods, attitudes and emotions of wearers. 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-KSB for the year ended December 31, 2004 as filed with the Securities and Exchange Commission and the Form 10-QSB for the three and six months ended March 31, 2005 and June 30, 2005. 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) September 30, December 31, 2005 2004 (unaudited) Assets Cash and cash equivalents $622 $1,201 Accounts receivable, net 75 259 Inventories, net 48 63 Other current assets 35 8 Property and equipment, net 11 17 Total $791 $1,548 Liabilities and shareholders’ deficit Accounts payable $56 $41 Other current liabilities 109 154 Common stock 20,809 20,809 Accumulated deficit (20,183) (19,456) Total $791 $1,548 HUMAN PHEROMONE SCIENCES, INC. Condensed Statements of Operations (Unaudited) (Dollars in thousands, except per-share data) Three months Nine months ended September 30, ended September 30, 2005 2004 2005 2004 Net revenues $91 $300 $348 $708 Cost of goods sold 12 44 70 117 Research and development 38 27 132 43 Selling, general and administrative 242 364 887 1,053 (Loss) from operations (201) (135) (741) (505) Other income 3 4 14 11 (Loss) from on-going operations (198) (131) (727) (494) Net gain on sale of assets -- 21 -- 22 Net income (loss) $ (198) $(110) $ (727) $(472) Earnings (loss) per share - Basic and fully diluted: From on-going operations $ (0.05) $(0.03) $ (0.18) $(0.12) From assets to be sold $0.00 $0.01 $0.00 $0.01 Net income (loss) $ (0.05) $(0 .02) $ (0.18) $(0.11) Weighted average number of shares - Basic and fully diluted: 4,152 4,152 4,152 4,121
Net income (loss) per share is based on the weighted average number of common shares and common equivalents outstanding during each period. Certain common stock equivalents are excluded when their effect would be anti-dilutive.
Human Pheromone Sciences, Inc.
CONTACT: William P. Horgan, Chairman, CEO of Human Pheromone Sciences,Inc., +1-408-938-3030
Web site: http://www.erox.com/
