Update on Business and PURE’s SDC-Based Antimicrobial Food Safety Solutions
PURE Bioscience, Inc. (OTCQB: PURE) (“PURE,” the “Company” or “we”), creator of the patented non-toxic silver dihydrogen citrate (SDC) antimicrobial, today reported financial results for the fiscal third quarter ended April 30, 2024.
Summary of Results – Fiscal Third Quarter Operations
- Net product sales were $440,000 and $406,000 for the fiscal third quarter ended April 30, 2024 and 2023, respectively. The increase of $34,000 was attributable to increased sales across our end-user network.
- Net loss for the fiscal third quarter ended April 30, 2024, was $857,000, compared to $876,000 for the fiscal third quarter ended April 30, 2023.
- Net loss, excluding share-based compensation, for the fiscal third quarter ended April 30, 2024, was $825,000, compared to $832,000 for the fiscal third quarter ended April 30, 2023.
- Net loss per share was ($0.01) for the fiscal third quarters ended April 30, 2024 and 2023, respectively.
Nine Months: Summary of Results of Operations
- Net product sales were $1,483,000 and $1,269,000 for the nine months ended April 30, 2024 and 2023, respectively. The increase of $214,000 was attributable to increased sales across our end-user and distribution network.
- Net loss for the nine months ended April 30, 2024, was $2,594,000, compared to $2,929,000 for the nine months ended April 30, 2023.
- Net loss, excluding share-based compensation, for the nine months ended April 30, 2024, was $2,418,000, compared to $2,654,000 for the nine months ended April 30, 2023.
- Net loss per share was ($0.03) for the nine months ended April 30, 2024 and 2023, respectively.
Business Update
We believe the foundation for a sustainable and profitable organization is underway. Significant focus and resources have been built around our shift in business strategy from a direct sales model to a distributor model.
Jeff Kitchell, Vice President of Operations, said, “Our leadership team has worked hard to develop a new Tier Pricing Agreement which satisfies margin requirements for our distributors, as well as setting a minimum advertised price and manufacturer’s suggested retail price. This new program is being met with great interest and enthusiasm from key distributors in the industry and discussions are well underway and we plan to provide further updates as we continue to drive results under this program.”
- Brand Advertising and Marketing. Further development of our social media presence has been a continued area of focus, and it is not going unnoticed. In the past 90 days, our platform engagement has increased by 167%, and our followers are up by nearly 70%. This significant increase in exposure to PURE’s product line and innovative solutions has led to new leads and opened the door to discussions with industry experts and potential new distribution partners. PURE’s brand is evolving as we continue working with our branding firm to guide us in clearly communicating to the public that PURE’s team is trustworthy, our premium solutions are truly innovative, and that SDC technology is a complete game changer across multiple industries. Our growing customer base is comprised of companies that value the health and safety of their customers and employees, as well as the commitment to protecting their brand and the environment.
- Trade Shows. The PURE team continues to exhibit, attend, and support customer and industry events and trade shows as part of our continued growth initiatives. This involvement continues to be an effective approach to meeting new customers and continuing networking and educating the industry on our unique SDC solutions. In the past quarter, our team has attended or presented at multiple customer and local events, along with the Cheese Expo – a global technology event for the dairy industry, as well as the Penn State Dairy Expo. These shows and events not only help us bring a spotlight to PURE’s product line but also allow for strategic meetings with key stakeholders throughout the industry. PURE is again registered to exhibit at the International Association for Food Protection (IAFP) annual meeting in Long Beach, California (July 14-17, 2024). The IAFP annual meeting is attended by more than 3,500 of the top industry, academic, and governmental food safety professionals.
- Distributor Focus and Support. Our distributor program led by Tyler Mattson, Vice President of Key Accounts and Technology, is gaining attention and interest. We believe this program will help support our necessary growth once fully rolled out, and will also provide the needed resources and expertise as we expand our business offerings and solutions. Tyler and his team are proactively working with potential distributors on our new training and education program.
- Continued Innovation. Our R&D efforts led by Tom Myers, Executive Vice President of Technology and Development, continue to address unmet needs using SDC across multiple industries such as the dairy and animal health industry. We believe these initiatives driven by the need for cost savings, ever-increasing food safety standards, and new cleaning and sanitizing methods to meet corporate environmental sustainability goals will give a unique advantage to our distribution partners and the end user.
Robert Bartlett, Chief Executive Officer, said, “While it is obvious sales growth has not been at the rate it needs to be, the team is dedicated to building our foundation which takes time and patience. I am confident we are on the right track as we continue to transform into an innovative customer solutions company using a distribution model for greater reach. Both momentum and industry interest are starting to build. Under the direction of Tim Steffensmeier, Vice President of Sales and Marketing, the team is steadfast in building and promoting our brand, supporting current industry offerings, and conducting R&D projects to address areas of concern in industries such as dairy and animal health,” concluded Bartlett.
About PURE Bioscience, Inc.
PURE focuses on developing and commercializing our proprietary antimicrobial products primarily in food safety. We provide solutions to combat the health and environmental challenges of pathogens and hygienic control. Our technology platform is based on patented, stabilized ionic silver, and our initial products contain silver dihydrogen citrate, better known as SDC. This is a broad-spectrum, non-toxic antimicrobial agent, and formulates well with other compounds. As a platform technology, SDC is distinguished from existing products in the marketplace because of its superior efficacy, reduced toxicity, and mitigation of bacterial resistance. PURE’s mailing address is 771 Jamacha Rd. #512, El Cajon, California 92019 (San Diego County area) serves as its official address for all business requirements. Additional information on PURE is available at www.purebio.com.
Forward-looking Statements: Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Statements in this press release, including quotes from management, concerning the Company’s expectations, plans, business outlook, future performance, future potential revenues, expected results of the Company’s marketing efforts, the execution of contracts under negotiation, and any other statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are “forward-looking statements.” Forward-looking statements inherently involve risks and uncertainties that could cause our actual results to differ materially from any forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the Company’s failure to implement or otherwise achieve the benefits of its proposed business initiatives and plans; acceptance of the Company’s current and future products and services in the marketplace, including the Company’s ability to convert successful evaluations and tests for PURE Control and PURE Hard Surface into customer orders and customers continuing to place product orders as expected and to expand their use of the Company’s products; the Company’s ability to maintain relationships with its partners and other counterparties; the Company’s ability to generate sufficient revenues and reduce its operating expenses in order to reach profitability; the Company’s ability to raise the funding required to support its continued operations and the implementation of its business plan; the ability of the Company to develop effective new products and receive required regulatory approvals for such products, including the required data and regulatory approvals required to use its SDC-based technology as a direct food contact processing aid in raw meat processing and to expand its use in OLR poultry processing; competitive factors, including customer acceptance of the Company’s SDC-based products that are typically more expensive than existing treatment chemicals; dependence upon third-party vendors, including to manufacture its products; and other risks detailed in the Company’s periodic report filings with the Securities and Exchange Commission (the SEC), including its Form 10-K for the fiscal year ended July 31, 2023, Form 10-Q for the fiscal first quarter ended October 31, 2023, Form 10-Q for the fiscal second quarter ended January 31, 2024, and Form 10-Q for the fiscal third quarter ended April 30, 2024. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
PURE Bioscience, Inc. Condensed Consolidated Balance Sheets |
||||||||
|
|
April 30, 2024 |
|
|
July 31, 2023 |
|
||
|
|
(Unaudited) |
|
|
|
|
||
Assets |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
442,000 |
|
|
$ |
1,095,000 |
|
Accounts receivable |
|
|
234,000 |
|
|
|
285,000 |
|
Inventories, net |
|
|
74,000 |
|
|
|
88,000 |
|
Restricted cash |
|
|
75,000 |
|
|
|
75,000 |
|
Prepaid expenses |
|
|
44,000 |
|
|
|
61,000 |
|
Total current assets |
|
|
869,000 |
|
|
|
1,604,000 |
|
Property, plant and equipment, net |
|
|
51,000 |
|
|
|
221,000 |
|
Total assets |
|
$ |
920,000 |
|
|
$ |
1,825,000 |
|
Liabilities and stockholders’ equity (deficiency) |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
506,000 |
|
|
$ |
422,000 |
|
Accrued liabilities |
|
|
160,000 |
|
|
|
110,000 |
|
Total current liabilities |
|
|
666,000 |
|
|
|
532,000 |
|
Long-term liabilities |
|
|
|
|
|
|
|
|
Note payable to related parties |
|
|
2,400,000 |
|
|
|
1,021,000 |
|
Total long-term liabilities |
|
|
2,400,000 |
|
|
|
1,021,000 |
|
Total liabilities |
|
|
3,066,000 |
|
|
|
1,553,000 |
|
Commitments and contingencies |
|
|
|
|
|
|
||
Stockholders’ equity (deficiency) |
|
|
|
|
|
|
|
|
Preferred stock, $0.01 par value: 5,000,000 shares authorized, no shares issued and outstanding |
|
|
— |
|
|
|
— |
|
Common stock, $0.01 par value: 150,000,000 shares authorized, 111,856,473 shares issued and outstanding at April 30, 2024, and July 31, 2023 |
|
|
1,119,000 |
|
|
|
1,119,000 |
|
Additional paid-in capital |
|
|
132,574,000 |
|
|
|
132,398,000 |
|
Accumulated deficit |
|
|
(135,839,000 |
) |
|
|
(133,245,000 |
) |
Total stockholders’ equity (deficiency) |
|
|
(2,146,000 |
) |
|
|
272,000 |
|
Total liabilities and stockholders’ equity (deficiency) |
|
$ |
920,000 |
|
|
$ |
1,825,000 |
|
PURE Bioscience, Inc. Condensed Consolidated Statements of Operations (Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Nine Months Ended |
|
|
Three months Ended |
|
||||||||||
|
|
April 30, |
|
|
April 30, |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net product sales |
|
$ |
1,483,000 |
|
|
$ |
1,269,000 |
|
|
$ |
440,000 |
|
|
$ |
406,000 |
|
Royalty revenue |
|
|
6,000 |
|
|
|
6,000 |
|
|
|
1,000 |
|
|
|
1,000 |
|
Total revenue |
|
|
1,489,000 |
|
|
|
1,275,000 |
|
|
|
441,000 |
|
|
|
407,000 |
|
Cost of goods sold |
|
|
612,000 |
|
|
|
625,000 |
|
|
|
183,000 |
|
|
|
211,000 |
|
Gross profit |
|
|
877,000 |
|
|
|
650,000 |
|
|
|
258,000 |
|
|
|
196,000 |
|
Operating costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
3,136,000 |
|
|
|
3,342,000 |
|
|
|
998,000 |
|
|
|
997,000 |
|
Research and development |
|
|
233,000 |
|
|
|
227,000 |
|
|
|
77,000 |
|
|
|
74,000 |
|
Total operating costs and expenses |
|
|
3,369,000 |
|
|
|
3,569,000 |
|
|
|
1,075,000 |
|
|
|
1,071,000 |
|
Loss from operations |
|
|
(2,492,000 |
) |
|
|
(2,919,000 |
) |
|
|
(817,000 |
) |
|
|
(875,000 |
) |
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense), net |
|
|
1,000 |
|
|
|
(4,000 |
) |
|
|
1,000 |
|
|
|
1,000 |
|
Interest expense, net |
|
|
(103,000 |
) |
|
|
(6,000 |
) |
|
|
(41,000 |
) |
|
|
(2,000 |
) |
Total other income (expense) |
|
|
(102,000 |
) |
|
|
(10,000 |
) |
|
|
(40,000 |
) |
|
|
(1,000 |
) |
Net loss |
|
$ |
(2,594,000 |
) |
|
$ |
(2,929,000 |
) |
|
$ |
(857,000 |
) |
|
$ |
(876,000 |
) |
Basic and diluted net loss per share |
|
$ |
(0.03 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.01 |
) |
Shares used in computing basic and diluted net loss per share |
|
|
111,856,473 |
|
|
|
111,356,473 |
|
|
|
111,856,473 |
|
|
|
111,356,473 |
|
PURE Bioscience, Inc. Condensed Consolidated Statement of Stockholders’ Equity (Deficiency) (Unaudited) |
||||||||||||||||||||||||||||||||||||||||
|
|
Nine Months Ended April 30, 2024 |
|
|
Nine Months Ended April 30, 2023 |
|
||||||||||||||||||||||||||||||||||
|
|
Common Stock |
|
|
Additional
|
|
|
Accumulated |
|
|
Total
|
|
|
Common Stock |
|
|
Additional
|
|
|
Accumulated |
|
|
Total
|
|
||||||||||||||||
|
|
Shares |
|
|
Amount |
|
|
Capital |
|
|
Deficit |
|
|
Equity |
|
|
Shares |
|
|
Amount |
|
|
Capital |
|
|
Deficit |
|
|
Equity |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balances at beginning of period |
|
|
111,856,473 |
|
|
$ |
1,119,000 |
|
|
$ |
132,398,000 |
|
|
$ |
(133,245,000 |
) |
|
$ |
272,000 |
|
|
|
111,356,473 |
|
|
$ |
1,114,000 |
|
|
$ |
132,079,000 |
|
|
$ |
(129,284,000 |
) |
|
$ |
3,909,000 |
|
Share-based compensation expense - stock options |
|
|
— |
|
|
|
— |
|
|
|
176,000 |
|
|
|
— |
|
|
|
176,000 |
|
|
|
— |
|
|
|
— |
|
|
|
213,000 |
|
|
|
— |
|
|
|
213,000 |
|
Share-based compensation expense - restricted stock units |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
62,000 |
|
|
|
— |
|
|
|
62,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,594,000 |
) |
|
|
(2,594,000 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,929,000 |
) |
|
|
(2,929,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at end of period (Unaudited) |
|
|
111,856,473 |
|
|
$ |
1,119,000 |
|
|
$ |
132,574,000 |
|
|
$ |
(135,839,000 |
) |
|
$ |
(2,146,000 |
) |
|
|
111,356,473 |
|
|
$ |
1,114,000 |
|
|
$ |
132,354,000 |
|
|
$ |
(132,213,000 |
) |
|
$ |
1,255,000 |
|
|
||||||||||||||||||||||||||||||||||||||||
|
|
Three Months Ended April 30, 2024 |
|
|
Three Months Ended April 30, 2023 |
|
||||||||||||||||||||||||||||||||||
|
|
Common Stock |
|
|
Additional
|
|
|
Accumulated |
|
|
Total
|
|
|
Common Stock |
|
|
Additional
|
|
|
Accumulated |
|
|
Total
|
|
||||||||||||||||
|
|
Shares |
|
|
Amount |
|
|
Capital |
|
|
Deficit |
|
|
Equity |
|
|
Shares |
|
|
Amount |
|
|
Capital |
|
|
Deficit |
|
|
Equity |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balances at beginning of period (Unaudited) |
|
|
111,856,473 |
|
|
$ |
1,119,000 |
|
|
$ |
132,542,000 |
|
|
$ |
(134,982,000 |
) |
|
$ |
(1,321,000 |
) |
|
|
111,356,473 |
|
|
$ |
1,114,000 |
|
|
$ |
132,290,000 |
|
|
$ |
(131,337,000 |
) |
|
$ |
2,067,000 |
|
|
||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation expense - stock options |
|
|
— |
|
|
|
— |
|
|
|
32,000 |
|
|
|
— |
|
|
|
32,000 |
|
|
|
— |
|
|
|
— |
|
|
|
44,000 |
|
|
|
— |
|
|
|
44,000 |
|
Share-based compensation expense - restricted stock units |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
20,000 |
|
|
|
— |
|
|
|
20,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(857,000 |
) |
|
|
(857,000 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(876,000 |
) |
|
|
(876,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at end of period (Unaudited) |
|
|
111,856,473 |
|
|
$ |
1,119,000 |
|
|
$ |
132,574,000 |
|
|
$ |
(135,839,000 |
) |
|
$ |
(2,146,000 |
) |
|
|
111,356,473 |
|
|
$ |
1,114,000 |
|
|
$ |
132,354,000 |
|
|
$ |
(132,213,000 |
) |
|
$ |
1,255,000 |
|
PURE Bioscience, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) |
||||||||
|
|
|
|
|
|
|
||
|
|
Nine Months Ended |
|
|||||
|
|
April 30, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Operating activities |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(2,594,000 |
) |
|
$ |
(2,929,000 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
176,000 |
|
|
|
275,000 |
|
Depreciation and amortization |
|
|
110,000 |
|
|
|
102,000 |
|
Impairment of computer software |
|
|
60,000 |
|
|
|
— |
|
Reserve for inventory obsolescence |
|
|
— |
|
|
|
40,000 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
51,000 |
|
|
|
13,000 |
|
Inventories |
|
|
14,000 |
|
|
|
(10,000 |
) |
Prepaid expenses |
|
|
17,000 |
|
|
|
(19,000 |
) |
Interest on note payable |
|
|
94,000 |
|
|
|
— |
|
Accounts payable and accrued liabilities |
|
|
134,000 |
|
|
|
(6,000 |
) |
Net cash used in operating activities |
|
|
(1,938,000 |
) |
|
|
(2,534,000 |
) |
Investing activities |
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
|
— |
|
|
|
(76,000 |
) |
Net cash used in investing activities |
|
|
— |
|
|
|
(76,000 |
) |
Financing activities |
|
|
|
|
|
|
|
|
Net proceeds from note payable to related parties |
|
|
1,285,000 |
|
|
|
— |
|
Net cash provided by financing activities |
|
|
1,285,000 |
|
|
|
— |
|
Net decrease in cash, cash equivalents, and restricted cash |
|
|
(653,000 |
) |
|
|
(2,610,000 |
) |
Cash, cash equivalents, and restricted cash at beginning of period |
|
|
1,170,000 |
|
|
|
3,466,000 |
|
Cash, cash equivalents, and restricted cash at end of period |
|
$ |
517,000 |
|
|
$ |
856,000 |
|
|
|
|
|
|
|
|
|
|
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
442,000 |
|
|
$ |
781,000 |
|
Restricted cash |
|
$ |
75,000 |
|
|
$ |
75,000 |
|
Total cash, cash equivalents and restricted cash |
|
$ |
517,000 |
|
|
$ |
856,000 |
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow information |
|
|
|
|
|
|
|
|
Cash paid for taxes |
|
$ |
— |
|
|
|
5,000 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240614177923/en/
Contacts
Mark Elliott, VP Finance
PURE Bioscience, Inc.
Phone: 619-596-8600 ext.: 116
