Nanotechnology Now - Press Release: BioForce Nanosciences Reports Record First Quarter Results

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Abstract:

Five Nano eNabler™ System Sales in Q1 2008

New Product Introductions Create Growth Opportunities

BioForce Nanosciences Reports Record First Quarter Results

AMES, IA | Posted on May 15th, 2008

BioForce Nanosciences Holdings, Inc. (OTC BB: BFNH), a producer of integrated biological and mechanical systems for life science researchers at the micro and nano scales, today announced record revenue and gross profit for the three months ended March 31, 2008.

First Quarter Highlights

* Net revenues were $403,567 for the first quarter of 2008, the highest first quarter revenues in the Company's history, and a 13% increase from net revenues of $358,755 for the first quarter of 2008.
* Five Nano eNabler™ systems were sold during the first quarter of 2008, equaling the highest number of Nano eNabler™ systems sold in any quarter in BioForce's history.
* Gross profit was $189,342 for the first quarter of 2008, the highest first quarter gross profit in the Company's history, and a 7% increase from gross profit of $176,149 for the first quarter of 2007.
* Net loss on common stock was $756,162 ($0.03 per fully diluted share) for the first quarter of 2008, as compared to a net loss on common stock of $923,317 ($0.04 per fully diluted share) for the first quarter of 2007.

Operations Review

Kerry Frey, President and Chief Executive Officer of BioForce, said, "We are pleased with what was another excellent quarter for BioForce. We sold five Nano eNabler™ systems during the three months ended March 31, 2008, matching the number sold during the fourth quarter of 2007. Two of the sales during the first quarter were to overseas customers, continuing the good results that we have experienced from our international network of distributors. The other three sales were to U.S.-based research institutions that took part in our 2006 Pilot Placement Program. It is encouraging that these long-time Nano eNabler™ users have seen fit to purchase their instruments as vital parts of their research direction.

"We have now sold sixteen Nano eNabler™ systems since the initial sale of the product in 2006, with ten of those sales occurring in the past two quarters. The momentum that we are seeing in the market is certainly encouraging. We believe that the unique capability of the Nano eNabler™ to deposit biological materials, such as proteins and antibodies, in one to twenty micron spot sizes in a precise, consistent, flexible and affordable manner will provide expanding demand for this product. The industrial consulting firm of Frost and Sullivan concurred with our views of the advantages of the Nano eNabler™ in their February 2008 report describing the key advantages of the Nano eNabler™ over other technologies for the deposition of biological materials at the ultramicro and nano scales."

Frey concluded, "During the first quarter we announced two new products, our Cyto eNabler™ molecular printer, which is specifically configured for the needs of cellular biology researchers, and our custom patterned surfaces, which are produced to the specifications of the customer by our personnel using the Nano eNabler™. We believe that the introduction of these new products, plus the Nano eNabler™ system and the continued development of the market for that product, will provide the basis for our future growth."

Greg Brown, BioForce's Chief Financial Officer, commented, "The growth in our revenues, and reduction in our operating expenses, has allowed us to significantly narrow our operating losses over the past two quarters, and we remain focused upon achieving profitability. While we are pleased with these results and the resulting reduction in our cash loss from operations, we do require additional financing and are in discussions with potential sources of capital."

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About BioForce Nanosciences Holdings, Inc.
BioForce Nanosciences creates products and solutions for the life sciences by integrating biological and mechanical systems at the micro and nano scales. BioForce’s flagship product, the Nano eNabler™ molecular printer, gives the Company and its customers a platform for development and discovery by printing tiny domains of biological materials on surfaces with nanometer spatial precision. BioForce technology is being used in areas such as biosensor functionalization; pattering and cell adhesion; and the printing of proteins to guide neural cell growth. For more information, visit www.bioforcenano.com or call 515-233-8333.

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

BIOFORCE NANOSCIENCES HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS

ASSETS
	03/31/08		12/31/07
	(unaudited)
CURRENT ASSETS
Cash and cash equivalents	$	57,773	$	268,930
Accounts receivable - trade, net		172,732		313,756
Account receivable - invoice factoring		34,071		-
Inventory		900,616		1,046,683
Prepaid expenses and other assets		90,908		146,007

Total current assets		1,256,100		1,775,376

PROPERTY AND EQUIPMENT

Computer equipment		113,963		113,963

Scientific and laboratory equipment		906,382		889,368

Leasehold improvements		380,000		380,000

Office furniture and fixtures		89,760		89,760

Total		1,490,105		1,473,091

Less accumulated depreciation		944,470		889,469

Net property and equipment		545,635		583,622

INTANGIBLE ASSETS
Patent costs, net of accumulated amortization of $86,201 and $78,502, respectively		678,997		641,017
Trademark costs, net of accumulated amortization of $17,588 and $15,471, respectively		97,823		90,908
Total intangible assets		776,821		731,925

TOTAL ASSETS	$	2,578,556	$	3,090,923

BIOFORCE NANOSCIENCES HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS

LIABILITIES AND STOCKHOLDERS' EQUITY
	03/31/08		12/31/07
	(unaudited)
CURRENT LIABILITIES
Accounts payable	$	418,431	$	305,314
Accrued expenses		228,143		241,650
Recourse obligation - invoice factoring		7,962		-
Accrued dividends on preferred stock		10,000		13,333
Deferred revenue		35,861		53,754
Current portion of long-term debt		73,247		89,180

Total current liabilities		773,644		703,231

LONG-TERM DEBT, NET		143,607		154,860

Total liabilities		917,251		858,091
COMMITMENTS and CONTINGENCIES

STOCKHOLDERS' EQUITY
Preferred stock - 2008 and 2007: $0.001 par value, 10,000,000 shares authorized
to be issued in various classes
Series A Convertible Preferred Stock - $0.001 par value, 2007: 1,100,000
shares authorized, 1,000,000 shares issued and outstanding, 2008: liquidation

value $510,000; 2007: liquidation value $513,333		1,000		1,000

Common stock - 2008 and 2007: $0.001 par value, 100,000,000 shares authorized,
2008: 25,116,401 shares issued and outstanding; 2007: 25,099,950 shares

issued and outstanding		25,116		25,100

Additional paid-in capital		16,531,333		16,341,714
Deferred stock offering costs		(5,000)		-

Accumulated deficit		(14,891,144)		(14,134,982)

Total stockholders' equity		1,661,305		2,232,832

TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY	$	2,578,556	$	3,090,923

- more -

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

	For the Three Months Ended
	March 31,
	2008		2007
REVENUES	$	403,567	$	358,755

COST OF GOODS SOLD		214,225		182,606

Gross profit		189,342		176,149

OPERATING EXPENSES
Research and development		298,490		278,800
Sales and marketing		289,695		306,008
General and administrative		442,975		658,708
Reimbursement of grant expenses		(99,895)		(124,923)
Total operating expenses		931,265		1,118,593

Loss from operations before other income (expense)		(741,923)		(942,444)

OTHER INCOME (EXPENSE)
Interest and other income		1,540		22,136
Interest expense		(5,779)		(3,009)
Total other income (expense)		(4,239)		19,127

Loss before income tax		(746,162)		(923,317)

INCOME TAX EXPENSE		-		-

Net loss	$	(746,162)	$	(923,317)

DIVIDENDS ON PREFERRED STOCK		10,000		-

Net loss on common stock	$	(756,162)	$	(923,317)

BASIC AND DILUTED LOSS PER SHARE	$	(0.03)	$	(0.04)

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING		25,114,051		24,040,950

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Contacts:
BioForce Nanosciences Holdings, Inc.
Gregory D. Brown, 515-233-8333 ext# 118
Chief Financial Officer

or
Investors:
Porter, LeVay & Rose, Inc.
212-564-4700
Marlon Nurse
VP – Investor Relations

or
Jeffrey Myhre, VP – Editorial