PURE Bioscience Reports Fiscal 2023 Second Quarter And Six-Month Financial Results

Rhea-AI Summary

PURE Bioscience, Inc. (OTCQB: PURE) reported its Q2 and six-month results ended January 31, 2023. Net product sales decreased to $396,000 in Q2 from $415,000 in 2022, with a net loss of $1,060,000 compared to $702,000 in the same quarter last year. For the six months, sales totaled $863,000, down from $912,000, with losses rising to $2,053,000 versus $1,498,000 year-over-year. The company appointed Robert Bartlett as the new CEO on March 15, 2023, aiming to enhance revenue and redirect sales strategies.

Positive

• Appointment of Robert Bartlett as CEO, aimed at improving sales strategies and company performance.

Negative

• Declining net product sales in both Q2 and six-month periods.
• Increased net loss in both Q2 and six-month periods compared to the previous year.

RANCHO CUCAMONGA, Calif.--(BUSINESS WIRE)-- PURE Bioscience, Inc. (OTCQB: PURE), creator of the patented non-toxic silver dihydrogen citrate (SDC) antimicrobial, today reported financial results for the fiscal second quarter and six-month period ended January 31, 2023.

Q2: Summary of Results of Operations

• Net product sales were $396,000 and $415,000 for the fiscal second quarter ended January 31, 2023 and 2022, respectively. The decrease of $19,000 was attributable to decreased sales across our distribution network.
• Net loss for the fiscal second quarter ended January 31, 2023 was $1,060,000, compared to $702,000 for the fiscal second quarter ended January 31, 2022.
• Net loss, excluding share-based compensation, for the fiscal second quarter ended January 31, 2023 was $933,000, compared to $522,000 for the fiscal second quarter ended January 31, 2022.
• Net loss per share was ($0.01) for the fiscal second quarters ended January 31, 2023 and 2022, respectively.

Six Months: Summary of Results of Operations

• Net product sales were $863,000 and $912,000 for the six months ended January 31, 2023 and 2022, respectively. The decrease of $49,000 was attributable to decreased sales across our transportation and distribution network.
• Net loss for the six months ended January 31, 2023 was $2,053,000, compared to $1,498,000 for the six months ended January 31, 2022.
• Net loss, excluding share-based compensation, for the six months ended January 31, 2023 was $1,842,000, compared to $1,128,000 for the six months ended January 31, 2022.
• Net loss per share was ($0.02) for the six months ended January 31, 2023 and 2022, respectively.

Business Update

New Chief Executive Officer and President

On March 15, 2023 (the “Effective Date”), Tom Y. Lee, the President, Chief Executive Officer and member of the Board of Directors (the “Board”) of Pure Bioscience, Inc. (the “Company”), resigned as the Company’s President and Chief Executive Officer, effective as of the Effective Date. Mr. Lee will continue to serve as a member of the Board.

Additionally, the Board appointed Robert Bartlett, a member of the Board, as the Company’s President and Chief Executive Officer, effective as of the Effective Date.

Mr. Lee said, “I’m happy to announce the appointment of Robert F. Bartlett as Chief Executive Officer of PURE Bioscience. Robert is a proven leader with decades of experience in both large and small corporations. Robert has the skill set required to help the company increase revenue in new and existing market segments. With Robert on board, Tom Myers will transition from the Chief Operating Officer role to Executive Vice President of Technology and Development. This will give Mr. Myers the ability to focus on technical sales, business relationships, and research and development.”

Mr. Bartlett, said, “PURE’s sales over the last year have shown that our sales approach delivered lackluster results. My immediate focus will be to enhance our current customer base along with redirecting our sales efforts into new and existing channels that are showing growth. It’s my belief that we must have the right people in place to manage and grow our sales. Focus and accountability will be paramount as the company builds a new sales strategy.”

About PURE Bioscience, Inc.

PURE is focused on developing and commercializing our proprietary antimicrobial products primarily in the food safety arena. We provide solutions to combat the health and environmental challenges of pathogen 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 is headquartered in Rancho Cucamonga, California (San Bernardino metropolitan area). 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; economic and other disruptions resulting from COVID-19; 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, 2022, Form 10-Q for the fiscal first quarter ended October 31, 2022, and Form 10-Q for the fiscal second quarter ended January 31, 2023. 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
		January 31, 2023				July 31, 2022
		(Unaudited)
Assets
Current assets
Cash and cash equivalents		$	1,485,000			$	3,391,000
Accounts receivable			156,000				201,000
Inventories, net			200,000				179,000
Restricted cash			75,000				75,000
Prepaid expenses			24,000				18,000
Total current assets			1,940,000				3,864,000
Property, plant and equipment, net			590,000				620,000
Total assets		$	2,530,000			$	4,484,000
Liabilities and stockholders’ equity
Current liabilities
Accounts payable		$	347,000			$	488,000
Accrued liabilities			116,000				87,000
Total current liabilities			463,000				575,000
Commitments and contingencies
Stockholders’ equity
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, 111,356,473 shares issued and outstanding at January 31, 2023 and at July 31, 2022			1,114,000				1,114,000
Additional paid-in capital			132,290,000				132,079,000
Accumulated deficit			(131,337,000	)			(129,284,000	)
Total stockholders’ equity			2,067,000				3,909,000
Total liabilities and stockholders’ equity		$	2,530,000			$	4,484,000

PURE Bioscience, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
		Six Months Ended January 31,								Three Months Ended January 31,
		2023				2022				2023				2022
Net product sales		$	863,000			$	912,000			$	396,000			$	415,000
Royalty revenue			5,000				5,000				1,000				1,000
Total revenue			868,000				917,000				397,000				416,000
Cost of goods sold			414,000				354,000				200,000				182,000
Gross profit			454,000				563,000				197,000				234,000
Operating costs and expenses
Selling, general and administrative			2,345,000				2,150,000				1,180,000				1,093,000
Research and development			153,000				148,000				75,000				81,000
Total operating costs and expenses			2,498,000				2,298,000				1,255,000				1,174,000
Loss from operations			(2,044,000	)			(1,735,000	)			(1,058,000	)			(940,000	)
Other income (expense)
Gain on extinguishment of indebtedness, net			—				239,000				—				239,000
Other income (expense), net			(5,000	)			—				—				—
Interest expense, net			(4,000	)			(2,000	)			(2,000	)			(1,000	)
Total other income (expense)			(9,000	)			237,000				(2,000	)			238,000
Net loss		$	(2,053,000	)		$	(1,498,000	)		$	(1,060,000	)		$	(702,000	)
Basic and diluted net loss per share		$	(0.02	)		$	(0.02	)		$	(0.01	)		$	(0.01	)
Shares used in computing basic and diluted net loss per share			111,356,473				87,652,761				111,356,473				87,873,141

PURE Bioscience, Inc.
Condensed Consolidated Statement of Stockholders’ Equity
(Unaudited)
		Six Months Ended January 31, 2023																Six Months Ended January 31, 2022
		Common Stock					Additional Paid-In			Accumulated				Total Stockholders’				Common Stock					Additional Paid-In				Accumulated				Total Stockholders’
		Shares		Amount			Capital			Deficit				Equity				Shares		Amount			Capital				Deficit				Equity
Balances at beginning of period		111,356,473		$	1,114,000		$	132,079,000		$	(129,284,000	)		$	3,909,000			87,223,141		$	873,000		$	128,253,000			$	(125,793,000	)		$	3,333,000
Share-based compensation expense - stock options		—			—			169,000			—				169,000			—			—			328,000				—				328,000
Share-based compensation expense - restricted stock units		—			—			42,000			—				42,000			—			—			42,000				—				42,000
Issuance of common stock for vested restricted stock units											—				—			650,000			6,000			(6,000	)			—				—
Net loss		—			—			—			(2,053,000	)			(2,053,000	)		—			—			—				(1,498,000	)			(1,498,000	)
Balances at end of period (Unaudited)		111,356,473		$	1,114,000		$	132,290,000		$	(131,337,000	)		$	2,067,000			87,873,141		$	879,000		$	128,617,000			$	(127,291,000	)		$	2,205,000

		Three Months Ended January 31, 2023																Three Months Ended January 31, 2022
		Common Stock					Additional Paid-In			Accumulated				Total Stockholders’				Common Stock					Additional Paid-In			Accumulated				Total Stockholders’
		Shares		Amount			Capital			Deficit				Equity				Shares		Amount			Capital			Deficit				Equity
Balances at beginning of period (Unaudited)		111,356,473		$	1,114,000		$	132,163,000		$	(130,277,000	)		$	3,000,000			87,873,141		$	879,000		$	128,437,000		$	(126,589,000	)		$	2,727,000
Share-based compensation expense - stock options		—			—			106,000			—				106,000			—			—			159,000			—				159,000
Share-based compensation expense - restricted stock units		—			—			21,000			—				21,000			—			—			21,000			—				21,000
Net loss		—			—			—			(1,060,000	)			(1,060,000	)		—			—			—			(702,000	)			(702,000	)
Balances at end of period (Unaudited)		111,356,473		$	1,114,000		$	132,290,000		$	(131,337,000	)		$	2,067,000			87,873,141		$	879,000		$	128,617,000		$	(127,291,000	)		$	2,205,000

PURE Bioscience, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
		Six Months Ended January 31,
		2023				2022
Operating activities
Net loss		$	(2,053,000	)		$	(1,498,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation			211,000				370,000
Depreciation and amortization			67,000				110,000
Gain on extinguishment of indebtedness			—				(239,000	)
Changes in operating assets and liabilities:
Accounts receivable			45,000				162,000
Inventories			(21,000	)			33,000
Prepaid expenses			(6,000	)			3,000
Accounts payable and accrued liabilities			(112,000	)			(147,000	)
Net cash used in operating activities			(1,869,000	)			(1,206,000	)
Investing activities
Purchases of property, plant and equipment			(37,000	)			(53,000	)
Net cash used in investing activities			(37,000	)			(53,000	)
Net decrease in cash, cash equivalents, and restricted cash			(1,906,000	)			(1,259,000	)
Cash, cash equivalents, and restricted cash at beginning of period			3,466,000				2,465,000
Cash, cash equivalents, and restricted cash at end of period		$	1,560,000			$	1,206,000
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets
Cash and cash equivalents		$	1,485,000			$	1,131,000
Restricted cash		$	75,000			$	75,000
Total cash, cash equivalents and restricted cash		$	1,560,000			$	1,206,000
Supplemental disclosure of cash flow information
Cash paid for taxes		$	5,000				—

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230317005083/en/

Mark Elliott, VP Finance

PURE Bioscience, Inc.

Phone: 619-596-8600 ext.: 116

Source: PURE Bioscience, Inc.

FAQ

What were PURE's Q2 2023 sales figures?

PURE's net product sales for Q2 2023 were $396,000, a decrease from $415,000 in Q2 2022.

Who is the new CEO of PURE Bioscience?

Robert Bartlett was appointed as the new CEO of PURE Bioscience, effective March 15, 2023.

What was the net loss reported by PURE for Q2 2023?

The net loss for Q2 2023 was $1,060,000, compared to $702,000 for the same period in 2022.

How did PURE's six-month sales perform compared to last year?

For the six months ended January 31, 2023, PURE reported sales of $863,000, down from $912,000 in the same period the previous year.

What changes are being made to PURE's sales strategy?

The new CEO, Robert Bartlett, aims to enhance the current customer base and redirect sales efforts into growth-oriented channels.