PURE Bioscience Reports Fiscal First Quarter 2025 Financial Results

Rhea-AI Summary

PURE Bioscience (OTCQB: PURE) reported financial results for fiscal Q1 2025 ended October 31, 2024. Net product sales decreased to $555,000 from $718,000 in the same quarter last year, primarily due to budgetary constraints of a major customer. The company's net loss improved slightly to $689,000 compared to $735,000 in Q1 2024. Net loss per share remained stable at ($0.01).

CEO Robert Bartlett noted that while the company continues to develop its business strategy with key distributors, the process is taking longer than expected. PURE is investing resources in onboarding new distributors, training, and marketing initiatives to expand their product offerings across the food and beverage industry.

Positive

• Net loss improved by $46,000 year-over-year
• Strategic expansion of distributor network in progress
• Diversification efforts across food and beverage industry

Negative

• Net product sales declined 22.7% year-over-year ($163,000 decrease)
• Loss of significant revenue from major customer due to budget constraints
• Distribution expansion taking longer than expected
• Continued net losses ($689,000 in Q1)

EL CAJON, Calif.--(BUSINESS WIRE)-- 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 first quarter ended October 31, 2024.

Summary of Results – Fiscal First Quarter Operations

• Net product sales were $555,000 and $718,000 for the fiscal first quarters ended October 31, 2024 and 2023, respectively. The decrease of $163,000 was attributable to budgetary constraints of a large end-use customer.
• Net loss for the fiscal first quarter ended October 31, 2024, was $689,000, compared to $735,000 for the fiscal first quarter ended October 31, 2023.
• Net loss, excluding share-based compensation, for the fiscal first quarter ended October 31, 2024, was $632,000, compared to $655,000 for the fiscal first quarter ended October 31, 2023.
• Net loss per share was ($0.01) for the fiscal first quarter ended October 31, 2024 and 2023, respectively.

Robert Bartlett, Chief Executive Officer, stated, “To expand on my recent comment from October 29th, we are continuing to diligently grow our business strategy with key distributors. Although this process is taking longer than expected, it allows us to broaden our product offerings across a larger customer base in the food and beverage industry. Significant resources are being dedicated to onboarding new distributors, providing the necessary training, and ensuring the proper marketing of our products, which will continue into 2025. This year’s first-quarter revenue was anticipated to be lower than the previous year due to an unexpected interruption in the flow of products to one of our major customers in 2024 and the lack of replacement revenue thus far,” concluded Bartlett.

About PURE Bioscience, Inc.

PURE is committed to redefining chemical safety through its innovative technology. With a focus on efficacy and effectiveness, PURE develops advanced solutions that meet the highest safety standards and produce best-in-class results for its consumers and distributors. PURE continues to focus on developing and commercializing our proprietary antimicrobial products, primarily in the food and beverage industry. 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 broad-spectrum, non-toxic antimicrobial agent 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), serving 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; 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, 2024 and Form 10-Q for the fiscal first quarter ended October 31, 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
		October 31, 2024				July 31, 2024
		(Unaudited)
Assets
Current assets
Cash and cash equivalents		$	346,000			$	349,000
Accounts receivable			371,000				298,000
Inventories, net			72,000				56,000
Restricted cash			75,000				75,000
Prepaid expenses			47,000				27,000
Total current assets			911,000				805,000
Property, plant and equipment, net			13,000				13,000
Total assets		$	924,000			$	818,000
Liabilities and stockholders’ deficiency
Current liabilities
Accounts payable		$	718,000			$	601,000
Accrued liabilities			193,000				132,000
Total current liabilities			911,000				733,000
Long-term liabilities
Convertible notes payable to related parties			3,509,000				2,949,000
Total long-term liabilities			3,509,000				2,949,000
Total liabilities			4,420,000				3,682,000
Commitments and contingencies
Stockholders’ deficiency
Preferred stock, $0.01 par value: 5,000,000 shares authorized, no shares issued and outstanding			—				—
Common stock, $0.01 par value: 200,000,000 shares authorized, 111,856,473 shares issued and outstanding at October 31, 2024, and July 31, 2024			1,119,000				1,119,000
Additional paid-in capital			132,669,000				132,612,000
Accumulated deficit			(137,284,000	)			(136,595,000	)
Total stockholders’ deficiency			(3,496,000	)			(2,864,000	)
Total liabilities and stockholders’ deficiency		$	924,000			$	818,000

 

PURE Bioscience, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
		Three months ended
		October 31,
		2024				2023
Net product sales		$	555,000			$	718,000
Royalty revenue			1,000				4,000
Total revenue			556,000				722,000
Cost of goods sold			231,000				280,000
Gross Profit			325,000				442,000
Operating costs and expenses
Selling, general and administrative			881,000				1,073,000
Research and development			71,000				80,000
Total operating costs and expenses			952,000				1,153,000
Loss from operations			(627,000	)			(711,000	)
Other income (expense)
Interest expense to related parties, net			(62,000	)			(24,000	)
Total other income (expense)			(62,000	)			(24,000	)
Net loss		$	(689,000	)		$	(735,000	)
Basic and diluted net loss per share		$	(0.01	)		$	(0.01	)
Shares used in computing basic and diluted net loss per share			111,856,473				111,856,473

 

PURE Bioscience, Inc.
Condensed Consolidated Statement of Stockholders’ Deficiency
(Unaudited)
		Common Stock								Additional Paid-In				Accumulated				Total Stockholders’
		Shares				Amount				Capital				Deficit				Deficiency
Balance July 31, 2024			111,856,473			$	1,119,000			$	132,612,000			$	(136,595,000	)		$	(2,864,000	)
Share-based compensation expense - stock options			—				—				57,000				—				57,000
Net loss			—				—				—				(689,000	)			(689,000	)
Balance October 31, 2024 (Unaudited)			111,856,473			$	1,119,000			$	132,669,000			$	(137,284,000	)		$	(3,496,000	)

		Common Stock								Additional Paid-In				Accumulated				Total Stockholders’
		Shares				Amount				Capital				Deficit				Deficiency
Balance July 31, 2023			111,856,473			$	1,119,000			$	132,398,000			$	(133,245,000	)		$	272,000
Share-based compensation expense - stock options			—				—				80,000				—				80,000
Net loss			—				—				—				(735,000	)			(735,000	)
Balance October 31, 2023 (Unaudited)			111,856,473			$	1,119,000			$	132,478,000			$	(133,980,000	)		$	(383,000	)

 

PURE Bioscience, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
		Three Months Ended
		October 31,
		2024				2023
Operating activities
Net loss		$	(689,000	)		$	(735,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation			57,000				80,000
Depreciation			—				37,000
Changes in operating assets and liabilities:
Accounts receivable			(73,000	)			(62,000	)
Inventories			(16,000	)			(16,000	)
Prepaid expenses			(20,000	)			(39,000	)
Accounts payable and accrued liabilities			178,000				274,000
Interest on note payable			60,000				21,000
Net cash used in operating activities			(503,000	)			(440,000	)
Financing activities
Net proceeds from note payable to related parties			500,000				785,000
Net cash provided by financing activities			500,000				785,000
Net increase (decrease) in cash and cash equivalents, and restricted cash			(3,000	)			345,000
Cash and cash equivalents, and restricted cash at beginning of period			424,000				1,170,000
Cash and cash equivalents, and restricted cash at end of period		$	421,000			$	1,515,000
Reconciliation of cash and cash equivalents, and restricted cash to the condensed consolidated balance sheets
Cash and cash equivalents		$	346,000			$	1,440,000
Restricted cash			75,000				75,000
Total cash and cash equivalents and restricted cash		$	421,000			$	1,515,000

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241216457087/en/

Mark Elliott, VP Finance

PURE Bioscience, Inc.

Phone: 619-596-8600 ext.: 116

Source: PURE Bioscience, Inc.

FAQ

What were PURE Bioscience's Q1 2025 net product sales?

PURE Bioscience reported net product sales of $555,000 for Q1 2025, ended October 31, 2024.

How much did PURE's net loss improve in Q1 2025 compared to Q1 2024?

PURE's net loss improved by $46,000, decreasing from $735,000 in Q1 2024 to $689,000 in Q1 2025.

What caused the decrease in PURE's Q1 2025 revenue?

The revenue decrease was attributed to budgetary constraints of a large end-use customer, resulting in an unexpected interruption in product flow.

What is PURE Bioscience's current business strategy focus?

PURE is focusing on expanding its business through key distributors, onboarding new partners, providing training, and marketing products across the food and beverage industry.