(Royalties from an expanded license agreement result in quarterly profit and improvement in nine month results) SAN JOSE, Calif., Nov. 13 /PRNewswire-FirstCall/ -- Human Pheromone Sciences, Inc. (OTC:EROX) (BULLETIN BOARD: EROX) ("HPS" or "the Company") today announced results for the three and nine month periods ended September 30, 2009. For the three months ending September 30, 2009, net revenues of $273,000 represented a 4% increase from the revenues of $262,000 in the prior year period, and resulted in net income of $10,000 ($0.00 per share) as compared with a net loss of $30,000 ($0.01 per share) for the same period of 2008. For the nine month period ending September 30, 2009, net revenues of $662,000 were 13% lower than the previous year's $764,000, resulting in a net loss of $255,000 ($0.06 per share) as compared with a net loss of $181,000 ($0.04 per share) in the first nine months of 2008. According to a Company spokesperson, "the slight increase in revenues for the quarter is attributable to royalties generated under the expansion of our agreement with an additional U.S. subsidiary of the international chemical and consumer giant Schwarzkopf and Henkel (Dial Corporation). The launch of the Dial Body Wash Product containing our technology is very creative and exciting, and their website dedicated to these products, getmagnetic.com., is incredibly innovative, informative and entertaining. Somewhat offsetting these actual revenue increases, was a decrease in recognition of deferred revenue associated with the agreement entered into with Johnson & Johnson in 2006. The increased revenues from the higher margin royalty revenues contributed to net income of $10,000 in the current year third quarter as compared with a $30,000 loss in the same quarter lat year." 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 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-K for the year ended December 31, 2008, and Form 10-Q for the three and nine months ended September 30, 2009, 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, 2009 2008 ---- ---- (Unaudited) (Note 1) Assets Cash and cash equivalents $ 370 $ 907 Accounts receivable 168 52 Inventories 45 39 Other current assets 33 58 Property and equipment, net 1 2 --- --- Total $ 617 $ 1,058 =========== ============ Liabilities and shareholders' equity Accounts payable $ 15 $ 19 Other current liabilities 130 131 Deferred income - current 220 297 Deferred income - non-current 188 324 Common stock 21,075 21,043 Accumulated deficit (21,011) (20,756) ------- ------- Total $ 617 $ 1,058 =========== ============ 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, ------------ ------------- 2009 2008 2009 2008 ---- ---- ---- ---- Net revenue $ 273 $ 262 $ 662 $ 764 Cost of goods sold 37 86 167 240 Research and development 17 10 55 33 Selling, general and administrative 209 203 696 696 --- --- --- --- Income (loss) from operations 10 (37) (256) (205) Other income - 7 2 25 Provision for income taxes - - 1 1 --- --- --- --- Net income (loss) $ 10 $ (30) $ (255) $ (181) ======== ======== ======= ======= Income (loss) per share - Basic: $ 0.00 $ (0.01) $ (0.06) $ (0.04) ======== ======== ======= ======= Fully diluted: $ 0.00 $ (0.01) $ (0.06) $ (0.04) ======== ======== ======= ======= Weighted average common shares outstanding- Basic: 4,152 4,152 4,152 4,152 ===== ===== ===== ===== Fully diluted: 5,062 4,152 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. DATASOURCE: 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/

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