Human Pheromone Sciences Announces Third Quarter Results

(Still in discussions to improve liquidity)

News provided by

Nov 12, 2010, 04:26 ET

SAN JOSE, Calif., Nov. 12, 2010 /PRNewswire-FirstCall/ -- Human Pheromone Sciences, Inc. (OTC Bulletin Board: EROX) ("HPS" or "the Company") today announced results for the three and nine month periods ended September 30, 2010. For the three months ending September 30, 2010, net revenues of $210,000 represented a 23% decrease from the revenues of $273,000 in the prior year period, and resulted in net loss of $55,000 ($0.01 per share) as compared with a net income of $10,000 ($0.00 per share) for the same period of 2009. For the nine month period ending September 30, 2010, net revenues of $581,000 were 12% lower than the previous year's $662,000, resulting in a net loss of $215,000 ($0.05 per share) as compared with a net loss of $255,000 ($0.06 per share) in the first nine months of 2009.

According to a Company spokesperson, "the decrease in revenues for the quarter is attributable to the prior year quarter including significant royalty revenues from the initial major sell-in of Dial Body Wash Products to several national retailers, as compared to the current quarter royalties from on-going sales from Dial products for 2010 quarter. In addition there was a decrease in recognition of deferred revenue associated with the agreement entered into with Johnson & Johnson in 2006. These were the primary causes for the $55,000 loss in the current year quarter as compared with a $10,000 profit in the 2009 quarter.

The spokesperson indicated that liquidity continues to be a major concern. As such, we are involved in discussions to enhance our cash position, and obtain 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.

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, 2009, and Form 10-Q for the three and nine months ended September 30, 2010, 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.

Tables follow

HUMAN PHEROMONE SCIENCES, INC. Condensed Balance Sheets (Dollars in thousands)
	September 30,	December 31,
	2010	2009
	(Unaudited)	(Note 1)
Assets

Cash and cash equivalents	$ 35	$370
Accounts receivable	129	168
Inventories	30	45
Other current assets	31	33
Property and equipment, net	-	1

Total	$ 225	$617

*Liabilities and shareholders' equity*

Accounts payable	$ 59	$ 15
Other current liabilities	133	130
Deferred income - current	147	220
Deferred income – non-current	43	188
Common stock	21,098	21,075
Accumulated deficit	(21,255)	(21,011)

Total	$225	$ 617

Note 1 – Derived from audited financial statements

HUMAN PHEROMONE SCIENCES, INC. Condensed Statements of Operations (Unaudited) (Dollars in thousands, except per-share data)
	Three months ended		Nine months ended
	September 30,		September 30,
	2010	2009	2010	2009

Net revenue	$210	$273	$581	$662
Cost of goods sold	45	37	107	167
Research and development	7	17	40	55
Selling, general and administrative	213	209	647	696

Income (loss) from operations	(55)	10	(213)	(256)

Other income	-	-	-	2


Provision for income taxes	-	-	2	1


Net income (loss)	$(55)	$10	$(215)	$(255)




Income (loss) per share -
Basic:	$(0.01)	$0.00	$(0.05)	$(0.06)

Fully diluted:	$(0.01)	$0.00	$(0.05)	$(0.06)



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

Fully diluted:	5,152	5,062	4,152	4,152

Net 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.