Nanotechnology Now - Press Release: BioForce Nanosciences Reports Second Quarter 2007 Financial Results

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Abstract:
BioForce Nanosciences Holdings, Inc. (OTCBB:BFNH) today reported its second quarter 2007 results. Revenue for the quarter was $184,811, as compared to $28,822 during the second quarter of 2006. Net loss for the second quarter of 2007 was $1,085,558, or $0.05 per basic and diluted share, as compared with a net loss of $784,805, or $0.03 per basic and diluted share, for the second quarter of 2006.

BioForce Nanosciences Reports Second Quarter 2007 Financial Results

AMES, IA | Posted on August 10th, 2007

For the six months ended June 30, 2007 revenue was $543,566, a 136% increase over the $230,198 of revenue for the six months ended June 30, 2006. Net loss for the first half of 2007 was $2,008,875, or $0.08 per basic and diluted share, as compared to $2,037,367, or $0.08 per basic and diluted share, for the six months ended June 30, 2006.

Non-GAAP net loss for the second quarter of 2007 was $816,200, or $0.03 per basic and diluted share, as compared to a non-GAAP net loss of $537,630, or $0.02 per basic and diluted share, for the second quarter of 2006. The non-GAAP net loss for the six months ended June 30, 2007 was $1,422,058, or $0.06 per basic and diluted share, as compared to a non-GAAP net loss of $798,928, or $0.03 per basic and diluted share, for the same period in 2006. Non-GAAP financial measures exclude stock-based compensation expense and interest expense recorded as a result of a beneficial conversion feature of convertible debt that was retired in 2006. The reconciliation between GAAP net loss per share and non-GAAP net loss per share is set forth at the end of this press release.

Dr. Eric Henderson, BioForce's CEO and founder, said, "We are gratified that our 2006 market launch of the Nano eNabler™ system has been so well received. The Nano eNabler system's ability to deposit and manipulate biomaterials with nanoscale precision has allowed researchers to make breakthrough advances in areas like cell biology, nanobiosensors and tissue engineering."

"Strong leadership in our Emerging Technologies division, federal funding for expansion of the Chip-on-a-Tip™ biomarker diagnostic test platform, and further development of our patented ViriChip™ pathogen sensor, provide us with a potent foundation for further innovation in diagnostic testing", added Dr. Henderson. "We remain true to our original vision for BioForce of creating and commercializing bio-nano products for patient friendly personalized medicine and point-of-care diagnostics."

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About BioForce Nanosciences Holdings, Inc.

BioForce Nanosciences develops and commercializes innovative nanotechnology products for the life sciences and healthcare industries. For more information, visit www.bioforcenano.com.

BIOFORCE NANOSCIENCES HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

	For the Three Months Ended
	June 30,
	2007			2006

REVENUES	$	184,811		$	28,822

COST OF GOODS SOLD		155,755			26,499

Gross margin		29,056			2,323

OPERATING EXPENSES
Research and development		292,048			215,138
Sales and marketing		323,397			118,288
General and administrative		673,513			558,578
Reimbursement of grant expenses		(165,297	)		(53,249	)
Total operating expenses		1,123,661			838,755

Loss from operations before other income (expense)		(1,094,605	)		(836,432	)

OTHER INCOME (EXPENSE)
Interest and other income		12,838			52,214
Interest expense		(3,791	)		(587	)
Total other income (expense)		9,047			51,627

Loss before income tax		(1,085,558	)		(784,805	)

INCOME TAX EXPENSE	-			-

Net loss	$	(1,085,558	)	$	(784,805	)

BASIC AND DILUTED LOSS PER SHARE	$	(0.05	)	$	(0.03	)

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING		24,099,950			23,999,950

BIOFORCE NANOSCIENCES HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

	For the Six Months Ended
	June 30,
	2007			2006

REVENUES	$	543,566		$	230,198

COST OF GOODS SOLD		338,361			78,086

Gross margin		205,205			152,112

OPERATING EXPENSES
Research and development		570,848			384,738
Sales and marketing		629,405			181,980
General and administrative		1,332,221			814,118
Reimbursement of grant expenses		(290,220	)		(101,429	)
Total operating expenses		2,242,254			1,279,407

Loss from operations before other income (expense)		(2,037,049	)		(1,127,295	)

OTHER INCOME (EXPENSE)
Interest and other income		34,974			65,722
Interest expense		(6,800	)		(975,794	)
Total other income (expense)		28,174			(910,072	)

Loss before income tax		(2,008,875	)		(2,037,367	)

INCOME TAX EXPENSE	-			-

Net loss	$	(2,008,875	)	$	(2,037,367	)

BASIC AND DILUTED LOSS PER SHARE	$	(0.08	)	$	(0.08	)

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING		24,075,088			23,999,950

BIOFORCE NANOSCIENCES HOLDINGS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS

ASSETS
	6/30/07		12/31/06
	(unaudited)

CURRENT ASSETS
Cash and cash equivalents	$	761,974	$	2,602,686
Accounts receivable - trade, net		272,122		22,153
Inventory		969,406		1,193,590
Prepaid expenses and other assets		115,536		55,351

Total current assets		2,119,038		3,873,780

PROPERTY AND EQUIPMENT, NET		695,455		538,082

INTANGIBLE ASSETS, NET		714,696		649,125

TOTAL ASSETS	$	3,529,189	$	5,060,987



LIABILITIES AND STOCKHOLDERS' EQUITY
	06/30/07		12/31/06
	(unaudited)

CURRENT LIABILITIES
Accounts payable	$	247,222	$	506,099
Accrued expenses		257,335		193,010
Deferred revenue		55,278		9,224
Current portion of notes payable		238,104		131,896
Total current liabilities		797,939		840,229

LONG-TERM DEBT, NET		211,410		278,860

Total liabilities		1,009,349		1,119,089


STOCKHOLDERS' EQUITY		2,519,840		3,941,898

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	3,529,189	$	5,060,987

Reconciliation of GAAP to non-GAAP net loss per share

	For the Three Months Ended
	June 30,
	2007			2006

US GAAP net income (loss) reported	$	(1,085,558	)	$	(784,805	)

Add: Stock-based compensation expense		269,358			247,175

Non-GAAP net income (loss)	$	(816,200	)	$	(537,630	)

US GAAP net income (loss) per share - basic and diluted	$	(0.05	)	$	(0.03	)

Non-GAAP net income (loss) per share - basic and diluted	$	(0.03	)	$	(0.02	)


	For the Six Months Ended
	June 30,
	2007			2006

US GAAP net income (loss) reported	$	(2,008,875	)	$	(2,037,367	)

Add: Stock-based compensation expense		586,817			291,122
Beneficial conversion interest expense	-				947,317

Non-GAAP net income (loss)	$	(1,422,058	)	$	(798,928	)

US GAAP net income (loss) per share - basic and diluted	$	(0.08	)	$	(0.08	)

Non-GAAP net income (loss) per share - basic and diluted	$	(0.06	)	$	(0.03	)

Use of Non-GAAP Financial Information

To supplement our consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP), we provide investors with certain non-GAAP financial measures, including non-GAAP net income (loss) and non-GAAP basic and diluted net income (loss) per share. These non-GAAP measures exclude the effect of stock compensation expense for employee stock options and stock warrants associated with the application of SFAS 123R, and interest expense recorded as a result of a beneficial conversion feature of convertible debt that was retired during 2006. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for net income (loss) or basic and diluted net income (loss) per share prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. We believe that these non-GAAP measures, when shown in conjunction with the corresponding GAAP measures, are used by and are useful to investors and other users of our financial statements in evaluating our operating results and comparative trends, as well as in facilitating comparisons with our historical operating results. The non-GAAP results are an indicator of our baseline performance before gains, losses or other charges that are considered by us to be outside of our core operating results and are excluded by us for purposes of evaluating performance against internal budgets and in making operational decisions. In addition, these non-GAAP results are among the primary indicators we use as a basis for our planning and forecasting of future periods.

There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. Investors should review the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in the tables above.

This news release contains forward-looking information that may be affected by certain risks and uncertainties, including those risks and uncertainties described in the Company’s most recent filings with the Securities and Exchange Commission. The Company’s actual results could differ materially from such forward-looking statements. We assume no duty to update these statements at any future date.

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Investor Relations:
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BioForce Nanosciences Holdings, Inc.
Company Contact:
Debra Happe, 515-233-8333, Ext. 123
Director of Communications