Human Pheromone Sciences Inc (fka EROX)

[righty]

November 13, 2007 - 12:01 PM EST

Human Pheromone Sciences Announces Third Quarter Results
Initiatives to Expand Business Potential Achieve Milestones in Quarter

SAN JOSE, Calif., Nov. 13 /PRNewswire-FirstCall/ -- Human Pheromone Sciences, Inc. (OTC Bulletin Board: EROX) ('HPS' or 'the Company') today announced results for the third quarter ended September 30, 2007. Net revenues of $239,000 compared with $365,000 in the prior year period resulted in a net loss of $93,000 ($.02 per share) as compared with a net income of $49,000 ($.01 per share) for the same period of 2006. For the nine month period in 2007 net revenues grew by 11% to $902,000 from $815,000, and the net loss for the first nine months of 2007 was $54,000 ($.01 per share), a $123,000 (70%) improvement from the 2006 net loss of $177,000 ($.04 per share) incurred in the first nine months of the prior year. At September 30, 2007, basic liquidity (cash plus accounts receivable, less accounts payable and accrued expenses) was $1,455,000 as compared with $1,836,000 at December 31, 2006, reflecting net spending of $381,000 for the nine months of the current year.

'In the third and fourth quarters of 2006, we had sizable orders from our largest purchaser of pheromones and we do not expect comparable orders in the current year. These cyclical purchases are unpredictable and, as such, we developed a set of strategic imperatives to grow our licensing revenues (which were up by more than 175% in the current year's quarter), formulate a program to maximize revenues from our proprietary Natural Attractions(R) brand and complete human testing on additional novel compounds that can contribute to the expansion of our business through the scientific validation of additional technologies that will enhance the value of our Company,' a spokesman indicated. During the third quarter of the current year, the Company received its first royalty payment from a licensing pact, signed earlier in the year with a major International corporation for our original compounds, signed an agreement to update, repackage and reposition the Company's proprietary Natural Attraction(R) line of products and filed a patent application for an exciting new compound that has shown significant potential in human studies. 'While we are not pleased by the financial results for the current quarter as compared with the prior year three month period, we believe that focus on these three strategic imperatives will lessen our dependence on the purchasing pattern of one large customer, and ensure balanced growth in revenue and an expanded technology and customer base, without major capital investment,' the spokesman further 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(R), REALM(R), innerREALM(R) and EROX(R) 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 http://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, 2006, and Form 10-QSB for the quarters ended March 31, 2007, June 30, 2007 and September 30, 2007, 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)

September 30, December 31,
2007 2006
(Unaudited)
Assets

Cash and cash equivalents $1,550 $1,941
Accounts receivable 60 39
Inventories, net 76 75
Other current assets 35 18
Property and equipment, net 1 2

Total assets $1,722 $2,075


Liabilities and shareholders' equity

Accounts payable $48 $30
Other current liabilities 107 114
Deferred revenue - current 508 846
Deferred revenue - non-current 681 721
Common stock 20,933 20,865
Accumulated deficit (20,555) (20,501)

Total liabilities and shareholders' equity $1,722 $2,075



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,
2007 2006 2007 2006

Net revenues $239 $365 $902 $815

Cost of goods sold 94 68 277 179
Research and development 10 29 38 88
Selling, general and
administrative 240 227 686 734

Income (loss) from
operations (105) 41 (99) (186)

Other income 16 8 50 9

Provision for income taxes 4 - 5 -


Net income (loss) $(93) $49 $(54) $(177)


Income (loss) per
share, basic: $(0.02) $0.01 $(0.01) $(0.04)

Income (loss) per
share, fully diluted: $(0.02) $0.01 $(0.01) $(0.04)


Weighted average
common shares
outstanding-
Basic 4,152 4,152 4,152 4,152


Weighted average
common shares
outstanding-
Fully diluted 4,152 4,841 4,152 4,152



Net income (loss) per share is based on the weighted average number of common shares and common share equivalents outstanding during each period. Certain common stock equivalents are excluded when their effect would be anti- dilutive.

SOURCE Human Pheromone Sciences, Inc.



Source: PR Newswire (November 13, 2007 - 12:01 PM EST)

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